Labour Court recommends union accept Kemek Limited's contractors proposal with safeguards

The Labour Court recommended that the Services Industrial Professional Technical Union agree in principle to Kemek Limited’s proposal to use outside contractors during peak periods. It said the sides should negotiate limits on contractor use, assurances on the number of directly employed drivers and appropriate employment standards. The recommendation was signed on 16 September 2008. Kemek said contractors could meet peak demand more efficiently and cover absences. The union argued that contracting out could reduce drivers’ earnings and eventually lead to job losses. The Court also recommended that the parties negotiate compensation for relief drivers’ financial losses.