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This study examined perceptions of small-medium companies on the proposed dual labour market system in South Africa. The alternative system and its implications is passionately debated by market role players both inside and outside the country. The growing unemployment rate and reported dwindling number of investors; due to perceived inflexible labour laws; has attracted divergence of intellectual response. Data was collected from five companies in Kwazulu-Natal; in the Durban area in sectors such as manufacturing, business services and tourism using both personal interviews and questionnaires which were distributed to 550 employees, of which 360 questionnaires were completed (return rate 65.4%). The results of this paper indicate that in general SME’s role players have diverse views on the proposed “Dual Labour Market System” and its possible effects.

Perception of small-medium companies on the proposed dual labour market system in South Africa