IN KWAZULU-Natal, allegations of worker exploitation and poor labour practices have sparked confrontations between Labour and Community Organisations (LACO)and local businesses.
LACO’s confrontation with businesses began early this year, primarily in Pietermaritzburg and other parts of KwaZulu-Natal, where the organisation alleged unfair labour practices, unsafe working conditions, unpaid overtime, and the employment of undocumented foreign nationals.
It conducted visits and protests at businesses including Daymed Private Hospital, SuperSave, Save Hyper, a furniture factory in Edendale, YCH, Checksave, Phoenix Cash and Carry, Shoprite and Kara Nichha’s.
The campaign drew criticism from business organisations, which argued that LACO’s methods amounted to intimidation and that labour disputes should be resolved through established legal channels.
By June, LACO claimed its campaign had helped approximately 4,500 South Africans secure employment, a figure which has not independently verified.
Image: Theo Jeptha African News Agency (ANA)
Melanie Veness, chief executive officer of the Pietermaritzburg and Midlands Chamber of Business, has issued a stern warning to employers, defending lawful labour processes while sharply criticising the activities of a group known as LACO.
She stressed the chamber’s position on fair employment practices.
“Firstly, we are and always have been 100% pro South African’s first, when it comes to employment. Secondly, we would never condone or cover up any unfair labour practices or unethical behaviour by any business. If a member was found to be acting unethically, the board would undoubtedly terminate their membership.”
Veness further outlined the formal legal framework available to employees who believe their rights have been violated, emphasising that South Africa already has structured dispute-resolution systems in place.
“Thirdly, we have an excellent system that ensures the protection of employee’s rights. Employees should follow internal grievance procedures first. If they have exhausted internal processes, then they can approach the CCMA or the Bargaining Council (unionized environment).
“Post that, if there is no resolution, a Certificate of Non-Resolution will be issued, and then there is an option to attend arbitration or to strike (disputes of interest) or to take the matter to the Labour Court (for disputes of right),” she said.
At the centre of her remarks was the role of LACO, which she described in stark terms, questioning both its legitimacy and methods.
“Who is LACO? Put simply, they are vigilantes, members of a self-appointed group of citizens who undertake law enforcement in their community without legal authority.”
She added that the organisation has attempted to position itself as a defender of workers’ rights, but suggested there are broader concerns about its motives.
“They have positioned themselves as champions of employee rights. There is a common belief that they are politically motivated and are driving a populist agenda ahead of the elections.”
Veness also raised allegations that some businesses have been subjected to pressure tactics.
“There are also several reports of LACO representatives attempting to extort large sums of money from businesses under threat of creating negative publicity and keeping them closed indefinitely.”
While acknowledging that labour violations can occur in some workplaces, she cautioned against blanket assumptions and unauthorised intervention.
“Do their claims have any merit? I cannot say unequivocally that every business that has been targeted is 100% compliant, but I can say with confidence that the vast majority are wonderful employers. Many of LACO’s claims against member businesses are without merit.”
She emphasised that labour disputes must be handled only through legally recognised institutions, arguing that external groups have no statutory authority to intervene.
“They have no right to involve themselves in labour-related issues or worker grievances, and consequently may not demand labour information or accountability from any business.”
Referencing South African labour law, Veness pointed to Chapter VII of the Labour Relations Act 66 of 1995, stating that dispute resolution and collective bargaining are restricted to formally recognised parties such as employees, employers, trade unions, and employer organisations.
In light of this, she advised employers to avoid engagement with LACO entirely.
“In view of this, it is recommended that employers don’t engage with LACO.”
She also warned that sharing sensitive company information with unauthorised parties could expose businesses to legal risk under data protection laws.
“In fact, complying businesses may fall foul of the POPI act if they provide confidential information to people with no legal standing to receive it.”
Veness further urged that any intimidation or threats against businesses should be escalated to law enforcement.
“Any intimidation or threats to shut businesses down is unlawful and should therefore be reported to the SAPS and a case needs to be opened.”
At the same time, she encouraged legitimate reporting channels for suspected wrongdoing.
“If there are suspected unfair labour practices or suspicion that undocumented foreigners are being employed, by all means, concerned citizens should report the companies to the relevant authorities – the Department of Labour and the Department of Home Affairs – and let them investigate and deal with the issues in a fair and lawful manner.”
According to Veness, reports of such interventions have already affected multiple areas across the region.
“This has been happening all over the city and into the Midlands, in Greytown as well. Some local stores were forced to shut for as long as 2-3 days. It’s disruptive and damaging to the affected businesses as well as to the economy.”
She concluded with a warning about broader economic consequences if investor confidence is undermined.
“These politically-affiliated organisations claim to be creating jobs for South Africans, but what they’re really doing is damaging the province’s reputation, denting business confidence and making us extremely investor unfriendly, which will prevent much-needed growth and cost jobs in the medium to long term, as current investors look to disinvest,” Veness said.
