The Building Industry Bargaining Council (BIBC) has reaffirmed its commitment to the goals of South Africa’s Expanded Public Works Programme (EPWP), emphasizing its value in creating temporary job opportunities and advancing skills development. However, through ongoing engagement with contractors and workers, the BIBC has identified key areas where the programme’s impact could be improved.
Supporting the EPWP’s Intent
“We fully support the intent of the EPWP and recognise the positive role it plays in addressing unemployment,” says Danie Hattingh, spokesperson for business at the BIBC. “Our experience in the sector shows that with a few practical enhancements—particularly around wage classification and exemption processes—the programme can work even more effectively for everyone involved.”
Challenges in Wage Classification and Compliance
While the EPWP is crucial in broadening access to employment, the BIBC has expressed concern about how the programme is sometimes applied in the building industry. One major issue is the misclassification of skilled workers under the EPWP wage structure, which currently stands at R15.83 per hour—significantly below the National Minimum Wage of R28.79.
“The inclusion of a ‘Local Content’ clause in public sector procurement, and proposed set-asides under the new Public Procurement Act of 2024, are intended to prioritise community participation,” explains Hattingh. “However, when skilled roles are remunerated at EPWP rates, it can create challenges for workers and risk non-compliance for contractors.”
Impact on Worker Benefits and Career Progression
In many cases, workers performing skilled tasks under EPWP conditions do not receive employment benefits such as pension or holiday fund contributions. This can dilute the intended benefits of skills development and hinder the transition to secure, long-term employment.
Instead of progressing within the industry, some communities become dependent on recurring EPWP projects without achieving sustainable job security. The BIBC warns that this undermines the programme’s developmental goals.
Need for Clearer Guidelines and Consistent Application
The BIBC notes that confusion over which projects formally qualify as EPWP initiatives contributes to uneven implementation. “Clearer criteria and improved communication can go a long way in ensuring the programme delivers on its promise of secure, decent work,” says Hattingh.
Uncertainty in this area also complicates efforts to ensure that workers are fairly paid and protected under the correct labour standards.
The Role of the Exemption Process
One key tool available to contractors involved in legitimate EPWP projects is the exemption process under the Labour Relations Act 66 of 1996. This mechanism allows temporary deviations from certain provisions in the collective agreement, helping align EPWP-specific conditions with industry norms.
“Unfortunately, many contractors are either unaware of this exemption process or unsure how to navigate it,” Hattingh says. “Without a formal exemption, they may inadvertently breach compliance requirements – something we’re eager to help prevent.”
Collaboration with Stakeholders
To address these challenges, the BIBC is actively engaging with government departments, municipalities, and industry partners to raise awareness and promote the appropriate use of the exemption framework. These efforts aim to uphold fair labour practices and protect workers, while ensuring that the programme’s original goals are met.
Strengthening EPWP for Shared Success
“By working together to strengthen the implementation of the EPWP, we can ensure that it remains a powerful tool for poverty alleviation and the creation of temporary job opportunities – without compromising on fairness or legal compliance,” Hattingh concludes. “Structured guidelines, transparent processes, and open dialogue are essential to this shared success.”
