1. Mr Price Group Ltd Labour Relations Amendment Bill 2012 Basic Conditions of Employment Amendment Bill 2012 Presentation to the Parliamentary Portfolio Committee on Labour 25 July 2012

2. Overview 1.Mr Price Group profile and context 2.Labour Relations Amendment Bill 2012 2.1 Section 198C - Part time employees 2.1. Impact assessment and alternatives 3. Basic Conditions of Employment Amendment Bill 2012 3.1 Sections 68 &69 - Compliance 3.2 Case study and alternatives Mr Price Group Limited

3. Section 198C LRA Bill Section 198C of LRA Bill: Equal treatment after 6 months. Equal access to training and skills. Equal opportunities to apply for vacancies. Intended to regulate the work of vulnerable part time employees. Mr Price Group Limited

4. Part time Employees Are not vulnerable employees. Employed indefinitely. Enjoy full legislative protection. Sectoral Determination 9 - paid 25% premium on basic wage. First time job seekers, matriculants, students. Key to flexibility due to long hours and peaks in trade. Mr Price Group Limited

5. Impact Assessment Meaning of treatment that is “on the whole no less favourable”. Force equalisation of benefit packages. Drastic cost increase and administrative complexity. Reduce non-statutory benefits, restructure employment. Limit access to employment for youth, students, first time job seekers. Part time provisions not included in 2010 Bill and RIA. Mr Price Group Limited

6. Alternatives Payment of premium. Less onerous ways to achieve policy objective. Promotes certainty. Avoids litigation. Compensation for fewer hours. Mr Price Group Limited

7. Section 68 & 69 of BCEA Bill Undertakings will become discretionary. Inspector may proceed directly to issue Compliance order. Employer may make representations in Labour Court. Intended to remedy non compliance. Remove bottle-necks and delays in enforcement process. Prevent habitually non-compliant employers resisting compliance. Mr Price Group Limited

8. Case Study: Compliance Mr Price Group Limited Compliance under current LRACompliance under LRA Bill Alternative dispute resolution Mutual problem solving Win-win situation Strengthen relationship with DoL Role clarity of employees Speedy outcome Punitive legal process Less buy in from parties Better understanding of our business Costly litigation Delayed resolution

9. Alternatives Focus on building capacity of inspectorate. Focus on mutual problem solving. Keep undertakings compulsory. Keep pre-court processes. Mr Price Group Limited