The Building Industry Bargaining Council (BIBC) has reaffirmed its support for the Expanded Public Works Programme (EPWP) and its goal of promoting temporary job opportunities and skills development. However, based on ongoing engagement with contractors and workers in the building industry, the BIBC believes there are opportunities to strengthen the programme’s impact through clearer guidelines, improved awareness, and a more consistent approach to compliance.
“We fully support the intent of the EPWP and recognise the positive role it plays in addressing unemployment,” says Danie Hattingh, spokesperson for business at the BIBC. “Our experience in the sector shows that with a few practical enhancements—particularly around wage classification and exemption processes—the programme can work even more effectively for everyone involved.”
While the EPWP plays a crucial role in expanding access to economic opportunities, the BIBC has observed that misunderstandings or inconsistent applications of the programme’s criteria can sometimes have unintended consequences. There have been instances where skilled workers are classified under the EPWP wage structure rather than receiving industry-standard compensation.
“The inclusion of a ‘Local Content’ clause in public sector procurement, and proposed set-asides under the new Public Procurement Act of 2024, are intended to prioritise community participation,” explains Hattingh. “However, when skilled roles are remunerated at EPWP rates—currently R15.83 per hour, well below the National Minimum Wage of R28.79—it can create challenges for workers and risk non-compliance for contractors.”
In some cases, workers performing skilled tasks on construction or building projects may not receive any employment benefits, such as contributions to pension or holiday funds, due to this misclassification. As a result, the intended benefits of upskilling and development can be diluted, and communities may become reliant on successive EPWP projects instead of progressing into longer-term, secure employment.
The BIBC notes that uncertainty around which projects formally qualify as EPWP initiatives further complicates efforts to ensure fair pay and proper worker protections. “Clearer criteria and improved communication can go a long way in ensuring the programme delivers on its promise of secure, decent work,” says Hattingh.
One of the mechanisms available to contractors working on legitimate EPWP projects is the exemption process, which allows for temporary variations from collective agreement provisions by the Labour Relations Act 66 of 1996. This process ensures EPWP conditions do not unintentionally conflict with broader industry standards.
“Unfortunately, many contractors are either unaware of this exemption process or unsure how to navigate it,” Hattingh says. “Without a formal exemption, they may inadvertently breach compliance requirements – something we’re eager to help prevent.”
To address this, the BIBC regularly engages with government departments, municipalities, and industry stakeholders to promote awareness and encourage proper use of the exemption framework. These collaborative efforts aim to support fair labour practices while safeguarding the integrity of the industry.
“By working together to strengthen the implementation of the EPWP, we can ensure that it remains a powerful tool for poverty alleviation and the creation of temporary job opportunities – without compromising on fairness or legal compliance,” Hattingh concludes. “Structured guidelines, transparent processes, and open dialogue are essential to this shared success.”
About the Building Industry Bargaining Council (BIBC)
Established by employer organisations and trade unions in the Western Cape’s building industry, the Building Industry Bargaining Council (BIBC) serves as a collaborative platform where both parties negotiate terms and conditions of employment through collective bargaining. Current members include the Master Builders Association Western Cape (MBA WC); MBA Boland; Consolidated Employers Organisation (CEO); Building, Wood and Allied Workers Union of South Africa (BWAWUSA); Building Workers’ Union (BWU); and the National Union of Mineworkers (NUM).
The Council promotes stable labour relations and contributes to a fair, just, and prosperous building industry by ensuring that workers receive agreed wages and benefits such as pensions and leave and that industry standards are maintained.
