Thesis, PlanB (M.S.)--University of Wisconsin--Stout, 1999. / Includes bibliographical references.

The core of the research focuses on the Temporary Employment Services (TES) Industry and its ability to provide labour flexibility for a number of client firms. The underlying notion that work is changing and becoming more flexible creates an exploratory realm for the concept of non-standard employment. The thesis draws on the conceptual model of the „flexible firm‟ and argues that the rise in non-standard forms of employment, particularly temporary employment within the TES industry, is primarily a result of the demand for labour flexibility. The TES industry that offers „labour on demand‟ is found to be an extremely secretive industry that is diverse in both its structure and services. The thesis reveals that the clients within the triangular employment relationship (TER) are reaping the most benefits especially with regard to escaping their obligations as the employer. The thesis explores human resource practices, unfair labour practices and the extensive loopholes exploited by the TES industry because of poor regulation. Consequently, the industry creates an „underclass‟ that is unprotected, insecure and easily exploitable. Qualitative research techniques were used in the form of semi-structured interviews. The thesis provides insights into the demand and supply of temporary workers in Port Elizabeth and addresses the problems associated with a TER and the TES industry as a whole.

This treatise specifically explores section 198 of the Labour Relations Act, 66 of 1995, which regulate temporary employment service. However, before one can assess this section in particular, other legislation has to be considered dealing with temporary employment services, read in conjunction with the Constitution of the Republic of South Africa Act 108 of 1996 (hereinafter the “Constitution”), as all legislation is subject thereto. As summarised by Navsa AJ in the judgment of Sidumo& Another v Rustenburg Platinum Mines Ltd & Others: “The starting point is the Constitution. Section 23(1) of the Constitution of the Republic of South Africa, 1996 provides that everyone has the right to fair labour practices”. The Labour Relations Act, 66 of 1995 (hereinafter the “LRA”) is also subject to the Constitution, and section 198 has to be evaluated and assessed against the Constitution as is set out in section 1 of the LRA, which provides that: “The purpose of this Act is to advance economic development, social justice, labour peace and the democratisation of the workplace by fulfilling the primary objects of this Act, which are (a) to give effect to and regulate the fundamental rights conferred by section 27 of the Constitution...” The LRA was drafted while the Interim Constitution was in effect, this being the reason why section 1(a) refers to section 27 of the Constitution, the Interim Constitution, and not the final Constitution, which was enacted in 1996. The Honourable Justice Conradie held in NAPTOSA & others v Minister of Education, Western Cape & others [2001] 22 ILJ 889 (C): “that the effect of section 1(a) is to ensure that the LRA “[marries] the enforcement of fundamental rights with the effective resolution of labour dispute temporary employment service . . . If an employer adopts a labour practice which is thought to be unfair, an aggrieved employee would in the first instance be obliged to seek a remedy under the LRA. If he or she finds no remedy under that Act, the LRA might come under constitutional scrutiny for not giving adequate protection to a constitutional right. If a labour practice permitted by the LRA is not fair, a court might be persuaded to strike down the impugned provision. But it would, I think, need a good deal of persuasion”. The Constitution and the LRA lay the basis for temporary employment services in the South African law context, and are the primary laws dealing with this topic. Although the main focus of the treatise is section 198 of the LRA in dealing with temporary employment services, it is evident that secondary labour legislation also regulates temporary employment services. It is noteworthy that each piece of legislation has different requirements and/or essentials regulating temporary employment services, even though some of the legislation have very similar provisions. Secondly, each of the pieces of legislation also determines and attaches different meanings to who the real employer is. This is important so as to establish who, as between the temporary employment service and its client, may be held liable for obligations arising out of the employment relationship. A tripartite relationship is created by temporary employment service arrangements, in that there is the temporary employment services –client relationship, the temporary employment service’s employer - employee relationship and the client –employee relationship, each with its own rights, obligations, and requirements for termination. A further focus of the treatise is the problems experienced in the employment relationship between the temporary employment service and its employees and the termination of the relationship. The difficulties and potential unfairness arising from termination of the relationship between the temporary employment service and its employees have resulted in legislative developments and proposed amendments, most notably the repeal of section 198. These proposals are discussed herein, including the question of whether section 198 should be repealed, or whether temporary employment services should be more strenuously regulated in order to resolve the problems being experienced with the application of section 198 in its present form. It is proposed in conclusion that temporary employment services be more strenuously regulated, as the repeal of section 198 will not be socially and economically beneficial to the workforce of South Africa, nor the Labour Market. Further, it would be contrary to the Constitution and purpose of the Labour Relations Act.

Diese Dissertation besteht aus vier Aufsätzen, die einen Beitrag zur Literatur über die empirische Analyse von lokalen Arbeitsmärkten leisten. Der erste Aufsatz nutzt den Abzug eines Großteils der US-Stationierungsstreitkräfte in Deutschland seit 1990 als ein natürliches Experiment, das die Identifikation von kausalen Effekten von Nachfrageschocks in lokalen Arbeitsmärkten ermöglicht. Als Datengrundlage dient ein neu aufbereiteter Datensatz zu den regionalen Veränderungen der Personalstärke der U.S. Stützpunkte. Die empirischen Ergebnisse belegen, dass der Abzug zu einem signifikanten Rückgang der Beschäftigung in der lokalen Privatwirtschaft und einem nachfolgenden Anstieg in der lokalen Arbeitslosenrate führte. Im Gegensatz dazu weisen die Ergebnisse keine Evidenz für signifikante Anpassungen in den lokalen Löhnen oder Wanderungssalden auf. Der zweite Aufsatz vertieft die Frage der lokalen Lohnrigiditäten angesichts des Nachfrageschocks. Der Einfluss von zwei Institutionen wird als mögliche Quelle von heterogenen Lohnanpassungen in lokalen Arbeitsmärkten identifiziert. Die empirischen Ergebnisse zeigen, dass der Einfluss der beiden Institutionen isoliert mit keinen heterogenen Lohnanpassungen verbunden ist, aber das Zusammenwirken beider Dimensionen verbunden ist mit differenziellen Lohnreduktionen. Der dritte Aufsatz erweitert die Analyse der Folgen des amerikanischen Truppenabzugs um die Frage nach der Entwicklung der lokalen Kriminalitätsrate. Die Ergebnisse zeigen, dass der Truppenabzug mit einem Rückgang der Kriminalität insbesondere von Drogen- und Sexualstraftaten verbunden ist. Der vierte Aufsatz untersucht die langfristige Entwicklung der Zeitarbeit in den regionalen Arbeitsmärkten in Deutschland seit 1979. Dabei zeigt sich, dass die anfängliche Verteilung der Beschäftigungsanteile für manuelle Nicht-Routine- und Routine-Tätigkeiten eine starke Vorhersagekraft für das unterschiedliche regionale Beschäftigungswachstum von Zeitarbeit in Deutschland besitzt. / This thesis consists of four essays that contribute to the empirical analysis of local labor markets. The first essay exploits the massive withdrawal of U.S. Armed Forces in the aftermath of the German Reunification as a natural experiment that enables the identification of the causal impact of local labor demand shocks. It introduces a novel dataset that details the evolution of the U.S. manpower levels at the disaggregated regional level and thereby enables the measurement how U.S. base closures affected the demand for local non-tradable goods and services. The results from the empirical analyses suggest that the drop in local labor demand caused a significant loss of private sector employment and generated a subsequent rise in local unemployment rates. In contrast, wages and migration patterns do not exhibit any significant responses. The second essay further explores the rigidity of wages in local labor markets in response to the U.S. base closures. The presence of two types of institutions (i.e. works councils and the German Trade and Crafts Code) and their interplay are characterized as potential sources of wage heterogeneities. While in isolation these two institutions do not seem to alter the pattern of insignificant wage adjustments, their interaction is found to introduce a channel for small downward wage adjustments. The third essay is concerned with the change in local crime rates in response to the U.S. presence and withdrawal. The empirical findings suggest that the drawdown of the U.S. military presence can be related to large and significant drops in the local rate of drug and sex offenses. The fourth essay provides an empirical analysis of the diverging patterns of employment in temporary help services across labor markets in Germany over the last 30 years. The differential growth pattern both at the level of occupations and across regional labor markets are found to be related to the initial intensity of routine and non-routine manual tasks.