Labour Dept flags WC construction industry’s track record of illegal practices

The Department of Employment and Labour has told Parliament that the Western Cape construction industry has a particularly poor track record of adhering to labour law.

Following the collapse of a partially constructed apartment building in George in 2024, the department carried out 311 construction site inspections, finding that most employers were non-compliant with the law.

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On Wednesday, the department informed Parliament’s portfolio committee that it has now submitted its George incident report to the National Prosecuting Authority (NPA) for a decision on criminal prosecution.

Of the 77 employees affected by the George building collapse, 68 submitted claims to the Compensation Fund.

Only 15 of these claims came from South African citizens.

The FederatedEmployers Mutual Assurance (FEM), which supports the construction industry, received five claims.

Chief labour inspector Milly Ruiters said the Compensation Fund has paid out more than R6 million to sub-contractors to cover the medical expenses of injured workers.

Although the main contractor, Liatel, is registered with FEM, Ruiters said it did not submit claims for any of the deceased and injured workers.

“In the areas where they have not received sufficient documentation, they cannot process the claims and ultimately make payments.”

With none of the 53 foreign nationals working on the collapsed George building in possession of a work permit, members of Parliament (MPs) have raised concerns about the high number of illegal migrants working on construction sites.

But Deputy Minister Jomo Sibiya said that they are still entitled to compensation if they are injured on duty.

“Being illegal does not mean you are not a human being. You remain a human being that is in South Africa and we have a responsibility as the State to make sure that we protect your rights.”

So far in 2025, the department said it’s conducted 487 blitz inspections on Western Cape building sites.