For many organizations, finding the right person to hire is a real challenge and time taking. It is obvious that companies require the right employee to apply for the posts they made public, but sometimes they may not have enough time to go and find these employees themselves. To simplify their work, employers use employment agencies, so that the employers can spend more of their effort interviewing applicants. In this regard, employment agencies play an important role in filling the gap. As we all know that Ethiopia is the second most-populous country in Africa and the twelfth in the World with an estimated population of over 110 million.
According to a study done by Ministry of Labour and Social Affairs (MoLSA) in collaboration with the International Labour Organization (ILO), Ethiopia’s population is predominantly young with about 41 per cent of the population being below 15 years of age and the proportion of working age population (15-64) being 54 per cent. The Ministry of Labour and Social Affairs (MoLSA) of the Federal Democratic Republic of Ethiopia in collaboration with the International Labour Organization (ILO) undertook an “Assessment of Private Employment Service Provision in Ethiopia” to inform evidence-based policy making processes.
Referring United Nations Department of Economic and Social Affairs (UNDESA) World Population Prospect report of 2017, the aforesaid study briefly stated that up to 3 million young Ethiopians are estimated to join the labour market every year. To respond to this labour market supply, the Public Employment Services (PES) and the Private Employment Agencies (PrEAs) should play key intermediary role in the provision of labor market services throughout the country.
Globally, over the past three decades private employment agencies have been playing an important role in the functioning of contemporary labour markets and the industry has expanded at an incredible rate due to the ever-increasing need to provide services to a growing and flexible labour market, the study said, adding that, similarly, PrEAs involvement in the labour market in Ethiopia has shown rapid growth.
However, due to the nature of employment relationships (temporary employment or triangular employment relationship), unfair practices as well as violation of labour rights are witnessed, the study also indicated. Employment intermediation services can be provided by either private or public employment service providers. Various researches indicate that private employment agencies have flourished across the globe with varied numerical and normative effects.
The aforesaid study also revealed that, in the Ethiopian context, the formal labour market had been solely monopolized by public employment services, and very minimally served by the PrEAs, that have only truly emerged over the last two decades. Even so, the number of PrEAs entering into the market and their sectoral coverage has been steadily growing. Accordingly, there are at least 700 PrEAs that operate in Ethiopia at national level at present.
Citizens who are employed through public and private employment agencies have repeatedly stated that they are being subjected to various violations of human rights. From public employment agencies where complaints are raised mainly is Commercial Nominees (CN) PLC which was established in 1965 by the then Commercial Bank of Ethiopia (CBE). It was reported that the company is delivering services by using its 33 existing branches throughout the country and using more than 25,000 outsourced employees.
CN is a service rendering company engaged in the business of local private employment and management service, national distribution of Ethiopian products, property administration, Western Union money transfer service, and salary payment service. The company is also involving in the business of share dealing activities, buying and selling flat and story building, CBE Birr agent banking service, among others.
Women, Youth and Social Affairs Standing Committee, as well as Revenue, Budget and Finance Affairs Standing Committee of House of Peoples’ Representatives of the Federal Democratic Republic of Ethiopia (FDRE) paid a field visit to look at the labor sector under the Ministry of Labor and Social Affairs, particularly members of the two standing committees of the House scrutinized the activities of Commercial Nominees in connection with employee handling.
After the field inspection, the standing committees held a half-day discussion with the concerning bodies – Ministry of Labour and Social Affairs, officials of CN and CBE, representatives of private employment agencies, right advocators, representatives of employees, and others – on report of field inspection. The stakeholders also discussed on how to solve problems in the labour sector.
Presenting the report, Alemu Gebre, Member of the Parliament and one of the field observation team, stated that Private Employment Agency Proclamation stipulates that the private employment agencies must provide citizens with a fair, transparent and accountable employment service in the country by getting license from concerning body and following the rules and regulations. The proclamation also briefly stipulates that joint and individual responsibilities for the protection of the rights and safety of the employees those are hired in various companies through private employment agencies, he noted.
As to him, although there are private employment agencies that comply with the law and order, there are also agencies engaged in illegal activities under legal cover. He further reported that about 1034 unlicensed businesses have been closed; 117 agencies those have licenses but engaged in illegal activities have also been banned, and also licenses of 33 agencies have been cancelled.
Officials and members of the two standing committees of the House urged the government to expedite the implementation of a study to ensure the fairness of wages paid to employees of various agencies, governmental and non-governmental organizations. During the discussion, Chairperson of Women, Youth and Social Affairs Standing Committee Abeba Yosef said as the members of the delegation team witnessed from their field visit that some private agencies have been harassing employees especially abuse the rights and interests of security guards and janitors.
To address this problem, she said a study should be conducted for important labor protection laws in collaboration with the Ministry of Labour and Social Affairs, representatives of employees, Confederation of the Ethiopian Trade Unions, as well as various agencies and other stakeholders to protect employees’ rights. Government Assistance Whip State Minister in the House of Peoples’ Representatives Chanie Shimeka, on his part insisted that all parties should sit down and talk about their challenges and be part of the solution to the problems between the private sector, the Ministry of Labour and Social Affairs, and the unions. He also stressed the need for agencies to comply with laws enacted to protect workers’ rights.
Officials of Commercial Nominees and Commercial Bank of Ethiopia acknowledged that there are some shortcomings in their company, though not as described above, and promised to address them as soon as possible in collaboration with pertinent bodies.
BY ABDUREZAK MOHAMMED
The Ethiopian Herald May 16/2021
