A steel and tube manufacturing company in Ekurhuleni, African Steel and Tube, has come under scrutiny over its employment and financial practices following a tip-off from Deputy Minister of Employment and Labour Jomo Sibiya. The company allegedly employed dozens of undocumented foreigners, prompting an inspection by government officials. Sibiya raised concerns about the company's financial and employment practices, including an alleged R1.3m debt owed to the City of Ekurhuleni.
The inspection, which was part of efforts to strengthen enforcement of labour and immigration laws, as well as municipal bylaws, found that some employees were paid in cash over weekends, with those payments not reflected on their monthly payslips. Sibiya stated that inspectors discovered the company's payment practices during the inspection. The officials also checked whether workers were at least paid the minimum wage, were registered with the Unemployment Insurance Fund and the Compensation Fund, and protected under the Basic Conditions of Employment Act.
The inspection was conducted alongside Deputy Minister of Home Affairs Njabulo Nzuza and Ekurhuleni Mayor Nkosindiphile Xhakaza. The officials were accompanied by immigration officer Dipuo Maronetha, who inspected the workers' identity documents. Maronetha confirmed that 52 employees were present during the inspection, including one Zimbabwean national who holds a Zimbabwean Exemption Permit (ZEP).
According to Maronetha, no illegal immigrants were found during the inspection. The officials also checked the company's compliance with municipal regulations, including business and trading licences, building safety, zoning and land-use requirements, as well as payment for services such as water and electricity. Ekurhuleni Mayor Nkosindiphile Xhakaza emphasized the importance of the operation in protecting employment opportunities for local residents.
The operation involved law enforcement officers working with immigration officials to strengthen compliance and ensure that businesses meet the requirements to operate in the city. After the inspection at African Steel and Tube, the officials moved to toilet paper manufacturer Twinsaver. The company was inspected to assess its compliance with labour and municipal regulations.
Twinsaver was found to be compliant with the relevant requirements, including those relating to personal protective equipment, electricity and water. Ekurhuleni Mayor Nkosindiphile Xhakaza expressed satisfaction with the company's compliance, describing it as a "rare find". The mayor emphasized the need to protect compliant businesses.
The inspections form part of the government's efforts to enforce labour and immigration laws, as well as municipal bylaws. The authorities will continue to monitor businesses to ensure compliance with regulations.
Key points
- Deputy Minister of Employment and Labour Jomo Sibiya received a tip-off about African Steel and Tube's employment practices.
- Inspectors found that some employees of African Steel and Tube were paid in cash, with payments not reflected on their monthly payslips.
- Toilet paper manufacturer Twinsaver was found to be compliant with labour and municipal regulations.
