National labour enforcement data shows that nearly 30 % of workplaces inspected across the country are non‑compliant with labour law, and recent sector‑specific inspections found significant non‑compliance within construction sites, of which the building industry forms a large part, reinforcing why sustained joint action is critical in addressing the exploitation of workers (Department of Employment and Labour).

In response to these challenges, the Building Industry Bargaining Council (BIBC) has welcomed the positive outcomes emerging from its strengthened collaboration with government enforcement agencies, describing recent High Impact Inspections as a decisive step in protecting vulnerable workers and promoting fair competition in the building industry.

As part of the High Impact Inspections Forum, the BIBC joined forces with the Department of Employment and Labour (DoEL), the Department of Home Affairs (Immigrations unit), the SA Border Management Authority, SAPS, City of Cape Town Metro Police and Law Enforcement, amongst others, to conduct coordinated site inspections in the Western Cape towards the end of last year. The High Impact Inspection was co-ordinated by 

Mr Vincent Domingo at the Department of Employment and Labour.

The joint operation focused on the employment of undocumented foreign nationals and broader labour compliance with the Occupation Health and Safety Act (OHSA), Compensation for Injuries and Diseases Act (COIDA) and Unemployment Insurance Act (UIA) within the construction sector; an area long identified as high risk for non-compliant labour practices.

"The real success here is partnership," says Danie Hattingh, spokesperson for business at the BIBC. "For some time, we have been raising concerns about widespread non-compliance, underpayment of wages and the employment of undocumented foreign nationals. Receiving an official invitation to participate in joint operations shows that the government acknowledges how important bargaining councils are in tackling exploitation and bringing integrity back to the sector.

Two major construction sites were targeted during the operation: the Suikerbos Residential Development undertaken by Balwin Properties and the Thorpe Garage project in Sandown Road, Parklands, undertaken by Tailormade Construction (TMC).

At the Balwin Properties site, approximately 240 employees were present, with around 160 suspected to be undocumented foreign nationals. Due to the sheer scale of the non-compliance on this site, the site was flagged for follow-up inspection, and biometric data was collected for off-site verification by enforcement authorities.

At the Thorpe Garage site, approximately 120 employees were present. On the day, 28 undocumented Foreign Nationals were arrested and charged for not producing legal documents. Those individuals have since been released on bail and are due to appear in court again.

Importantly, enforcement action is not limited to workers alone. Various processes involving DHA Immigration, DoEL and the BIBC are underway to investigate and pursue accountability of the main contractors, Balwin and TMC, and their subcontractors, in relation to the employment of undocumented foreign nationals as well as the under- or non-payment of prescribed wages and benefits.

"This marks a significant shift in focus," Hattingh explains. "The emphasis is now firmly on employer accountability. Exploited workers, whether local or foreign, are often the most vulnerable link in the chain. The responsibility to verify and record employment-related information lies with those who employ them."

The inspections also highlighted serious compliance concerns among subcontractors operating on site. On the Suikerbos development alone, a significant majority of subcontractors were found to be non-compliant with BIBC requirements, with only a small minority fully compliant.

Non-compliance ranged from failure to register with the BIBC to non-payment of prescribed wages and benefits. In several instances, companies were also not registered with the Companies and Intellectual Property Commission (CIPC), and some lacked valid registration with the Workers' Compensation Act (WCA).

"These findings reinforce why active enforcement is so important," says Hattingh. "Non-compliant operators undermine law-abiding businesses, distort competition and, most importantly, expose workers to labour abuse and unsafe working conditions."

Following the joint operations, the BIBC will initiate its own compliance processes, in line with its statutory mandate, against contractors and subcontractors found to be in breach of the negotiated industry agreements.

The DoEL has invited the BIBC to participate in future joint operations, particularly where health and safety risks or suspected employment of undocumented foreign nationals is identified by BIBC designated agents during routine inspections.

There is also a clear and coordinated shift among enforcement authorities toward greater scrutiny of employers. In relation to the recent operation, the BIBC was requested to provide contact details of company directors listed on its systems, publicly available information, to assist with ongoing investigations and coordinated enforcement.

Employer organisations are encouraged to communicate proactively with their members. Contractors working with main contractors flagged during joint inspections can expect more frequent oversight. Those found to be non-compliant or unregistered with the BIBC may face investigation not only by the Council but also by the DoEL and DHA for broader legislative breaches.

"Our message to the industry is simple," Hattingh concludes. "Compliance is not optional. Strong partnerships between regulators and industry bodies are creating an environment where exploitation will be identified and addressed. Ethical employers have nothing to fear, but those who continue to disregard the law should be under no illusion. Joint inspections will continue, and non-compliance will be met with decisive action."

Through collaboration, transparency and sustained enforcement, the BIBC and its partners are reinforcing a clear standard for the industry, ensuring that the building sector remains one where lawful business practices, fair competition and decent work are not only expected, but actively upheld.