Tenants are predominantly female who use their skills like sewing to eke out a living

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1 OCR NEWS BULLETIN TENANT FARMING : SWEATSHOPS WORK-HOUSES Are landlords disma ntling nation-building efforts in South Africa? Tenants are predominantly female who use their skills like sewing to eke out a living Compiled by Sayed-Iqbal Mohamed (Chairperson); Thembelani Adam Mncanywa (Deputy Chairperson) & Krubashen Moodley (Legal Team Co-ordinator) of the Organisation of Civic Rights (OCR) Recent developments in Durban have shown that there is a growing sweatshop industry. The OCR has so far identified about 28 buildings (in 2002). Sweatshops are buildings in which tenants are allowed to overcrowd, sometimes people occupying a small room. These occupants are co-tenants or coowners, sharing the exorbitant rentals. Other common features include absence of basic facilities such as bathrooms and kitchens, inadequate toilets, taps and electrical systems. In short, deplorable conditions with serious health and fire hazards. WHAT ARE THEY? Different groups and role-players have ascribed different names to buildings occupied by tenants for both residential and commercial (self-employment) purposes. Essentially, in Durban, these were buildings designed for commercial use, e.g. offices, warehouses and supermarkets, but in recent years have become vacant due to businesses closing down or relocating to suburbs. Durban local government authorities prefer the word workhouses to distinguish these from sweatshops in other provinces. WHO ARE SWEATSHOP TENANTS? In Durban, tenants are self-employed and work and live in their respective small cubicles. A tenant of a sweatshop is often referred to as an owner of the cubicle / room because the other tenants living with him or her pay their pro rata share of the rental through the main (principal) tenant. The income from their micro businesses (such as sewing, repairing sewing machines, providing indigenous herbal remedies, therapy and other skills) belongs to them. In Gauteng, sweatshop tenants work and live on the premises as well, but in some instances they work for a landlord who controls all income. 1

2 In any event, the work environment and living conditions in Durban s sweatshops are similar to those of sweatshops in other provinces. People work and live in overcrowded conditions, literally sweating because of the claustrophobic conditions and labouring as slaves to pay exorbitant rentals (indirect income) to the landlord or in the case of Gauteng province, in some instances tenants sweat through hard labour to generate direct income to the landlord who is also their employer. HOW DID SWEATSHOPS COME ABOUT 1. Survival: Small informal business entrepreneurs locating to the city to survive the economic hardships. They require a place to store, manufacture and sell their goods. A place that would also provide accommodation and reduce the high travelling costs and other overheads. 2. Overall shortage of housing and facilities for creative, innovative survivors whose skills allow them to eke out a living to feed their families. 3. Greed: Unscrupulous, greedy landlords and owners have seized the opportunity of letting out the vacant commercial properties for residential accommodation or a combination of business and residential use. These properties have become vacant due to businesses closing down or relocating to suburbs. Their target: the poor and the poorest of the poor. WHAT ARE THE PROBLEMS ASSOCIATED WITH THEM? 4. Size:The floor area is converted into a large number of small cubicles ( rooms ) usually by means of masonite or wooden partitioning. In some cases, existing flats are also converted into single rooms. Above two pictures by Khaya Ngwenya (independent newspapers) 2

3 Rental: In this way, an enormous amount of revenue is generated or yielded every month. In most instances, the rental income from sweatshop tenants far exceeds the original income from the property that was strictly commercial in nature. Rental structure: Approximately R50 per m 2. This rate per m 2 exceeds A grade commercial or up market residential accommodation in prime areas. It also excludes excellent basic facilities linked or integral to A grade commercial / residential properties. Overcrowding: Fire Hazard: This is a common problem because landlords allow overcrowding to yield huge returns by way of rentals. Tenants are able to share the exorbitant rentals for a cubicle / room and to reduce individual overheads. Materials used in the creation of the cubicles / rooms are not fire resistant. This, coupled with the fact that the electrical system in the building is not designed to service residential usage and in any event are in a poor state, poses a major fire hazard. Electrical System:The partitioned rooms are used as the bedroom, kitchen, lounge and work area. Electricity is therefore inadequate because the original electrical system cannot meet residential demands. In addition, electricity is required for the use of small machines and other electrical apparatus. Some tenants are forced to use paraffin and gas cookers, further endangering their lives. Lack of Basic Facilities: Maintenance: There are usually no bathing and ablution facilities. Inadequate toilets, with men and women forced to use the same toilets. Tenants are also forced to bathe within the toilet area. On average, there are two toilets per 80 people. In some buildings there is just one tap per 200 people with no bathrooms. The landlords of sweatshops, whom we refer to as slumlords, do not carry out any maintenance, repair or renovation. In most cases the buildings were in a state of disrepair prior to converting them into sweatshops. Maximising profits is the raison d'être for slumlords. There is no care for basic facilities that are needed, the conditions of the building or the plight of the tenants. 3

4 OCR S INVOLVEMENT AND PRELIMINARY INVESTIGATIONS: OVERVIEW OF THE DURBAN SITUATION Sex-Shop A landlord of several buildings has given a new meaning to sweatshops. Some sweatshop landlords either charge a penalty of about R150 for a day s late payment of rental or illegally lockout tenants. Women in Umgeni Road contacted the OCR about their plight where their landlord has provided tenants with an option sex for late payment. Cat Food In a shelter in central Durban, people are charged R25.00 per night. People have to sleep on the floor on cardboards. More drastic was the discovery that the tenants were given cat food as a meal. One building in Albert Park was also identified as a sweatshop. Investigations are continuing. Specific Intervention: Reaction from Sweatshop Slumlords Landlords of some sweatshops are desperate to avoid the authorities and public exposure of their gross exploitation of the poor. They have resorted to "dirty" tactics and self-help remedies like disconnecting electricity and engaging the services of warlords. By resorting to strong-arm tactics and indirect punitive measures, slumlords are hoping that the problems they have created would disappear. Negotiations : The OCR has intervened in nine buildings. In one building through a co-ordinated effort between the landlord, tenants committee and municipal departments, upgrading and renovations have begun in earnest. Bathrooms / shower cubicles and additional toilets were introduced. On two floors, masonite partitions were replaced with brick walls. The electrical system is also being renewed. Rentals have been re-negotiated and are substantially lower. In most instances, tenants are paying half the rentals. Legal Action : Dash Building: Urgent Order granted An urgent order was granted on November 5, 2002 to have the electricity restored. The landlord, however, had the electricity deposit with the municipality withdrawn. The municipality was instructed to disconnect the electricity because it posed a danger to the tenants. The urgent application was brought by Krubashen Moodley of T S Pillay & Co. The order granted by the Magistrate s court under Case No / 02 in respect of the following five applicants: Henrique Ezequlel Banze, Mildred Gabela, Thandazile Mshololo, Regina Gumede, Nokulunga Nuba against Ahmed Sadik Sadik, the respondent. The tenants were granted a Rule Nisi calling upon the respondent to show cause on the day of 2nd of December 2002 why the final order should not be granted: - Directing the Respondent to restore the supply of electricity to the First floor of Dash Building, 25 Leopold Street, Durban. (b) Should the Respondent fail to do so, the Sheriff of the Magistrate s Court, Durban was authorised and empowered to do all things necessary to restore the supply of electricity to the First floor of Dash 4

5 Building, 25 Leopold Street, Durban. (c) Ordering the Respondent to pay the cost of the tenants application on a scale as between attorney and client. Tenants Flee From Warlord: Umgeni Road tenants - about 100, had to leave their premises on Friday, November 01, 2002 after a warlord warned them that their landlord hired him to kill them. The warlord is known as "peace keeper" in the area. On Thursday, October 31, 2002, the landlord informed OCR members that there would be bloodshed if the tenants did not vacate the premises. He also said that OCR members would be shot dead if they were to enter an adjoining sweatshop operated by his friend. Tenants lodged complaints with the OCR regarding their living conditions. Building owned by Electricity Meter Removed : West Street tenants - about 200 found themselves without electricity on Saturday November 23, The landlord instructed the local authority to have the electricity meter removed because the electrical system posed a danger to the tenants. About four months earlier, tenants lodged complaints with the OCR regarding their living conditions, some were living under atrocious conditions for several years. Tenants had accessed to one tap. Building owned by GENERAL OBSERVATION The number of sweatshops / workhouses is increasing in Durban. OCR now has a list of about 28 buildings that houses approximately people, mainly Africans. Except for a few buildings, Indians of which 80% are Muslims, own most. Religious and ethnic distinctions are necessary when one considers efforts at reconstructing our fragile democracy, the great divide between rich and poor and when certain Muslims are preoccupied with global issues but neglect South Africans. WAY FOREWARD? There is an obvious need for this type of accommodation cum business premises for the poor and poorest of the poor who have the skills and the market to become self-reliant. Together with representatives of the sweatshop tenants, the OCR intends to establish a working group with local municipality to: - Formulate a policy to improve the living conditions of the destitute tenants. Assist tenants through local authority s (SMME) small micro and medium enterprise initiative in their self-employment skills. Intervene legally and through other forms of actions to highlight the plight of these tenants and to provide them with necessary relief. Conduct a socio-economic and rental survey. This will enable the OCR to ascertain the extent of the tenancy related problems, socio-economic conditions and levels of exploitation. The results of the survey would be useful in engaging the government to intervene. It will also assist the OCR in enforcing the rights of tenants legally. 5

6 R E S O L V E D amicably between the landlord and tenants Big Den, West Street, Durban Landlord: AQ Holdings (Pty) Limited (main person / director: Mr Mangera of Stanger) Agent: Mr. Makada No. of Tenants: 400 Tenants approached the Organisation of Civic Rights in March 2002 to investigate the living and working conditions and exorbitant rentals. The OCR s intervention resulted in: - 1. Rentals reduced 2. Improvement and upgrading of the entire building as well as essential services. 3. Following was done: shower cubicles were made private, new wash basins installed, masonite partitioning were replaced with brick walls, women were provided with separate toilet and ablution facilities. 4. Recognition of tenants committee. 5. Rental negotiation and defaulting tenants are dealt with between the tenants committee and landlord. 6. fire fighting equipment installed and fire escape sorted out. PRINCE WALK, 133A Prince Edward Street, Durban Landlord:Dr A.H.I Solwa No. of Tenants: 9 Tenants approached the Organisation of Civic Rights in September 2002 to investigate the living and working conditions and exorbitant rentals. The OCR s intervention resulted in: % reduction in rentals. 2. Improvement and upgrading of essential services. 3. On-going negotiations with the landlord and tenants resulting in the tenants agreeing to move out of the dwelling. 4. All tenants have now vacated the dwelling. 5. Landlord has undertaken to further upgrade the building. 6. The landlord has undertaken to give the tenants the first option to re-occupy the premises after renovations are carried out. However, such occupation will be for business purposes only. Crown Building, 86 Alice Street, Durban Landlord: Mr Manjra represented the owner(s) with attorney Suleman Lockat No. of Tenants: 150 6

7 Tenants approached the Organisation of Civic Rights in October 2002 to investigate the living and working conditions and exorbitant rentals. The OCR s intervention resulted in: - 1. Rentals reduced 2. Improvement and upgrading of the entire building as well as essential services. 3. Following is being done: masonite partitioning replaced with brick walls 4. Recognition of tenants committee. 5. Rental negotiation and defaulting tenants are dealt with between the tenants committee and landlord. Note: in 2007 one of the two floors burnt thereby displacing tenants. Tenants also received notice to vacate and approached the OCR to negotiate an extension. 7

8 PUBLIC MEETING FOR TENANTS Are you fed up of high rentals and poor living conditions? Want to stop landlord s abuse? Reduce your rent? This Meeting Is For You!! DATE:Saturday, 28 September 2002 TIME:2.30pm PLACE:Natal Tamil Vedic Hall cnr. Carlisle and Albert Streets (across Central Funeral Services in Umgeni Road) Share your problems with tenants from Big Den & others whom the Organisation of Civic Rights (OCR) has helped!! Issued by the OCR, a community organisation formed in 1984 to fight for tenants rights! Our Office is: Room 608 Tower C, Salisbury Centre, 349 West Street, Durban, 4001 Tel: (031) NPO No DCRA Trust No. 4656/92 UMHLANGANO OVULELEKILE WABAHLALI (TENANTS) Ingaba ukhathele yirent ephezulu nesimo esingaphucuzekile ohlala phansi kwaso? Ufuna umphathi wendawo (landlord) ayeke ukukuhlukumeza? Ufuna kwehliswe imali oyikhohayo ngenyanga (rental)? LO MHLANGANO NGOWAKHO!! UMHLA:Umgqibelo, 28 ku September 2002 ISIKHATHI:2.30pm (Ntambama) INDAWO:Natal Tamil Vedic Hall Ekhoneni lika Carlisle no Albert Streets (Phesheya kuka Central Funeral Services emgeni) Ningaxoxisana ngezinkinga zenu nabahlali base Big Den kanye nabanye asebesizwe yiyona le nhlangano ye Organisation of Civic Rights (OCR)!! Konke kuphuma kwi OCR, inhlangano yabantu eyasungulwa ngo 1984 ukulwela amalungelo abahlali (tenants)! Nali i-office lethu: Room 608 Tower C, Salisbury Centre, 349 West Street, Durban, 4001 Tel: (031) NPO No DCRA Trust No. 4656/92 ORGANISATION OF CIVIC RIGHTS (OCR) NPO PBO 18/11/13/4867 Sweatshops Project Sweat Shops / Tenants 2004/ Updated : 31 / 03 /