House Chairperson, the Labour Relations Amendment Bill represents, on the whole, a step forward in the drive to create better working conditions and better relations between employers and employees. The recent strikes in the mining sector have shown us the need to step up efforts to create a much more flexible labour environment that should not only address issues of employees who are represented by unions, but also ensure that the employers are still capable of employing more people and keeping the business afloat.
The main sticking point in the Bill is the issue of labour brokers, where the imprint of Cosatu on the issue is very clear. The IFP's stand on this issue is that labour brokers should not be removed but should in fact be regulated. The removal of labour brokers will ensure that the number of unemployed people increases and puts even more pressure on government to produce jobs. Regulation of labour brokers can be done along strict guidelines with requirements such as companies obtaining proper registration and having established premises where they work. Instead of removing a section of the economy that ensures that people get job opportunities, we should aid it and streamline its purposes.
Another issue on the table, which would be welcomed by the IFP, is the steps that are proposed to provide protection for employees who work for three months or less. We welcome the idea that the termination of temporary employees should constitute a dismissal, which thereby opens the door for the employees to challenge their dismissal in court, if they believe it to be unfair in any way. This will prevent any abuse by employers, some of whom terminate temporary employees' contracts before the cut-off time so as to avoid having to accommodate these employees in their organisations. The IFP cannot tolerate this exploitation by employers, and we will not support any measures that seek to exploit our people.
The instability in the labour market, as shown by strikes of workers from different sectors, has pushed our economy into turmoil. The rand continues to weaken in the face of the strengthening dollar, which is not helped by the cost to the economy of strike action. The immediate impact has been the withdrawal or reduction of foreign direct investment, which also increases the number of unemployed workers in the country as companies have less money to employ people. We need to create a legislative framework that will encourage, not hinder, foreign direct investment. We cannot continue to implement policies that undermine the rights of workers and weaken our economy. Whether we like it or not, our economy is affected by foreign markets and, if we are to grow, we will need to enact policies that will not undermine our economy in an attempt to satisfy the desires of trade unions.
I just want to congratulate my hon brother there, hon Manamela, for the progressive reading that he is doing. I think it will serve him well and maybe give him the courage to contest elections with his party. I thank you. [Laughter.] [Interjections.] [Applause.]