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The South African Hospitality Sector and Exploitative Labour Practices

Introduction

The South African hospitality sector is once again under scrutiny for exploitative labor practices. This comes after a former employee of a popular restaurant in South Africa’s administrative capital city of Pretoria took to social media to air her grievances. In the now viral TikTok video, the former employee alleged that workers at the establishment work without contractual agreements, and must purchase their uniforms and equipment, without being paid a salary.

 

Sting Operation at Establishments leads to Arrests

This revelation led to a coordinated sting operation by various South African government policing departments on 15 September 2024. Independent Online reported that at least three people were arrested during the sting operation. The three people include the owner of the restaurant and two “undocumented staffers”. The swiftness of the South African government in attending to these allegations is not unexpected, as exploitative labor practices in the South African hospitality sector have been the subject of discourse for years. The spokesperson for the Ministry of Labour and Employment, Thobeka Mangcai reported that another popular South African establishment owes its workers more than R800 000 in unpaid wages – another revelation from the operation. Similar reports about other establishments are now coming to the fore. 

Why is the Hospitality Sector Notorious for Exploitative Practices

The main question asked by many South Africans is why anyone would subject themselves to such deplorable working conditions. The real question, however, is why is it that the hospitality sector is notorious for exploitative labor practices. The unemployment rate in South Africa sits at 33.5%.  Business Tech reported that 40% of South African adults are resorting to borrowing to buy food and that 85.3% of the average South African salary is spent on living expenses. According to a report by Deloitte, approximately 54% of workers in the South African hospitality sector are unskilled – lacking basic numeracy and literacy skills. The exploitation however also extends to the ‘skilled’ of the sector – predominantly chefs. The hope of a better position after gaining experience is one of the reasons young South Africans find themselves in these conditions. High prestige, high pressure, and poor compensation appear to be the model that keeps the sector running. The model facilitates high recruitment rates despite the high employee turnover rates. 

Exploitation of Foreign Migrants

Immigrants in South Africa face a similar desperation-driven vulnerability. In her paper on migrant labor in South Africa, Professor Stella Vettori notes that migrant workers are generally unaware of their legal entitlements. Some migrant workers are undocumented and as such, even though aware of legal entitlements, are unlikely to report unfair or exploitative labor practices.

What the Law Says

The Constitution, National Minimum Wage Act, Basic Conditions of Employment Act, and the Labour Relations Act are laws that contain hard-worn protections for workers in South Africa. In the face of desperation and vulnerability, however, legal recourse is hardly top of mind. In a country with South Africa’s history of systemic economic oppression, exploitative labor practices in the present day betray a deteriorating moral fabric. 

 

Siphosethu Siwaphiwe Zazela

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