SA restaurants outed for unfair & exploitative hiring practices

South African restaurants Babel and Ocean Basket have come under scrutiny for a series of labour law violations, including non-compliance with the national minimum wage act, the basic conditions of employment, and the unemployment insurance act. These violations have led to the accumulation of over R1.3 million in unpaid wages for their workers. Following allegations of misconduct raised by a former employee on social media, authorities conducted inspections at the restaurants and found them to be in clear violation of labour laws. To shed more light on this issue, Wendy Alberts, Chief Executive Officer of the Restaurant Association of South Africa, joined CNBC Africa for a discussion. Alberts expressed her concerns about the situation, emphasizing the need for corrective actions to be taken promptly. She highlighted the importance of addressing such misconduct to uphold the integrity of the industry and ensure compliance with regulations. Alberts also mentioned that while some updates regarding the allegations against Ocean Basket have surfaced, it is crucial not to generalize the issues but rather address them individually. The restaurant industry in South Africa has been facing ongoing challenges related to non-compliance, exploitation, and the treatment of foreign nationals. Alberts called for a collaborative effort involving various stakeholders, including the Department of Labour, Home Affairs, and the Bargaining Council, to address these issues effectively. She stressed the significance of operating within legal boundaries to protect employees, businesses, and the economy at large. The Restaurant Association of South Africa plays a pivotal role in facilitating discussions among restaurant owners to ensure compliance with labour laws and address any misunderstandings or misinformation. Alberts highlighted the need for continuous dialogue with relevant authorities to enhance awareness and understanding of regulations within the hospitality sector. She urged workers to be aware of their rights and available recourse options, such as the CCMA, Bargaining Council, or the Department of Labour, to address any violations or grievances. Alberts emphasized the importance of collective agreements in the industry to regulate practices like tip sharing and breakage fees. In conclusion, Alberts stressed the need for increased monitoring of compliance within the restaurant industry and broader awareness of the implications of non-compliance with labour laws. The focus remains on upholding ethical practices, protecting workers' rights, and fostering a transparent working environment for all stakeholders.