Today's Labour News

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PSCBCThe Star reports that more than three years after resolving to consider insourcing several key functions, the government has finally appointed a service provider to conduct an independent impact study into outsourcing and also the effects of using outside companies to provide services.  

The Regen Group will conduct research into the number of outsourcing contracts that each national and provincial government department has entered into between 2014 and last year.  According to the Department of Public Service and Administration (DPSA), cleaning, catering, security, gardening and laundry services are among the job categories that will be the focus of the review.  The resolution to review outsourcing was taken at the Public Service Co-ordinating Bargaining Council (PSCBC) in February 2015.  Government departments now have until next Friday to submit the information required for the independent impact study.  In terms of the resolution, the PSCBC also wanted to find out the extent of wastage and corruption related to the awarding of tenders and payments made to private companies for their services compared to when these functions and services were performed by the government.  The review will find out the number of private companies that benefited as a result of outsourcing.  It will seek details of the pitfalls and successes of outsourcing, including costs savings recorded as a result of outsourcing, the number of jobs lost and created in each department and the value of the contracts.


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