Agriculture, Economic Development and Tourism

1. The mandate of the Department of Employment and Labour in South Africa is to regulate the labour market to ensure sustainable economic development. This is achieved through the following key functions:

• • Legislation and Regulations
  • Inspections and Compliance
  • Human Rights Protection
  • Employment Services
  • Social and Income Protection
  • Labour Relations
  • Occupational Health and Safety
  • Social Dialogue

The mandate of the Western Cape Department of Economic Development and Tourism (DEDAT) is to drive economic growth and development in the Western Cape province. The key aspects of our mandate:

• • Economic Growth
  • Business Environment
  • Tourism Development
  • Innovation and Technology
  • Inclusive Growth
  • Sustainable Development

The mandate and programmes, therefore, support businesses and industries that require critical skills visas, as well as red tape issues with labour matters, which have been the case with industries such as the boat building industry, which require support ito the verification of work permits etc. 

Formal compliance monitoring and enforcement is, however, the responsibility of the Department of Employment and Labour. With regards to the tourist guide industry, there are strict protocols in place to ensure that foreign nationals have the correct permits in place before they can be registered as tourist guides. The Department is also in the process of updating its guides, toolkits and other resources concerning legislative requirements applicable to the tourism and hospitality industries and will be hosting a series of webinars and podcasts this year to raise awareness of these resources. Lastly, the Department advocates for responsible tourism practices through initiatives such as the Sustainable Tourism Enterprise Programme (STEP). Among others, the Programme emphasises the importance of adherence to labour legislation and regulations. 15 SMMEs participated in the pilot STEP  earlier this year. 

2. Where relevant, certain engagements with relevant industry bodies have included topics relating such as in the tourism and hospitality industries, and there are industry initiatives in place to raise awareness of the legal requirements for employing foreign nationals. In February this year, FEDHASA, for example, hosted a breakfast in Cape Town with the Minister of Employment and Labour, where the matter of foreign national employment was discussed.
3. There is currently no official dataset that systematically collects or reports data on job opportunities lost to illegal immigrants. While there are studies on the labour market effects of immigration, no comprehensive or nationally endorsed statistical source exists to quantify the extent to which illegal immigration directly affects employment opportunities for citizens.  This gap largely exists because undocumented workers are often hired through informal or undisclosed arrangements, making accurate reporting very difficult. As a result, creating an official dataset on undocumented labour is not realistically possible. The question also suggests that there is a displacement of labour by illegal immigrants. However, the impact of illegal foreigners on the labour market is complex and multifaceted.

According to one research finding, immigrants who have entered the country without proper/documentation, often fill labour gaps by taking on jobs considered "3D" (dirty, difficult, and dangerous) (IRR, 2019)[1]. In these sectors, many local South Africans may be unwilling to work under the challenging conditions and low wages that are characteristic of these roles. Such 3D work is exploitative, and stricter application and enforcement of regulations may result in better work conditions for all involved, and more participation by locals.  

In other cases, immigrants have entered the country legally (e.g. through a critical skills work VISA).  Such legal immigrants may become illegal due to VISA and work permit renewal and processing inefficiencies (e.g. due to backlogs, most of which have since been cleared). In this case, a study by the OECD Development Centre and the International Labour Organisation (2018)^[2] confirms that many such immigrants who have entered legally fill critical skills shortages, rather than displacing locals. Therefore, although addressing issues related to illegal immigration is essential, it cannot be presumed in all cases that such immigration results in the displacement of local labour, for example, where immigrants have entered the country legally (e.g. critical skills work VISA) but have not been able to renew their permits. A study by the OECD Development Centre and the International Labour Organisation (2018)[3] confirms that immigrants may fill critical skills shortages.

Ultimately, the impact of illegal foreigners on the labour market is complex and multifaceted. While challenges such as wage suppression and job competition do exist, they are hard to quantify due to the hidden nature of the problem. Conversely, illegal foreigners may also contribute positively through entrepreneurship, job creation, and filling of critical labour gaps (i.e., meaning that there are no lost job opportunities to citizens of the province). In these cases, a continued focus on permit processing efficiencies is important.