EE Amendment Bill

More about the new EE amendment bill

Then new Employment Equity Amendment bill

The Amendment to this bill, signed by the President in April, sets five-year sector targets for each province, (and national targets for employees operating nationally), that prescribes demographic and gender targets for companies that employ more than 50 employees.

The Employment Equity Act aims to redress the imbalances of South Africa’s past. The idea is to move towards reflecting the country’s demographics in the workplace. The Amendment to this bill, signed by the President in April, sets five-year sector targets for each province, (and national targets for employees operating nationally), that prescribes demographic and gender targets for companies that employ more than 50 employees.

These targets involve top management, senior management, professionally qualified and skilled levels. They also include employees with disabilities. Compliance certificates (issued by the Minister of Employment and Labour) for employers in good standing, will be required for any company applying for government contracts.

The economic sectors affected in this amendment are:Provincial targets

  • agriculture
  • forestry and fishing
  • manufacturing
  • mining and quarrying
  • construction
  • financial and insurance activities
  • transportation and storage
  • information and communication
  • water supply
  • sewerage
  • waste management and remedial activities
  • electricity
  • gas steam and air conditioning supply
  • human health and social work activities
  • arts
  • entertainment and recreation
  • real estate activities
  • professional
  • scientific and technical activities
  • wholesale and retail trade
  • repair of motor vehicles and motorcycles
  • accommodation and food service activities
  • public administration and defence
  • compulsory social security
  • education and administrative and support activities

TO SEE THE TABLES OF THE PROVINCIAL TARGETSCLICK HERE.

While the largest trade union federations support this amendment bill, many commentators and role players have questions and concerns, (including court challenges and possible constitutional breaches), especially around the methodology used to arrive at these targets. UnemploymentThere are also fears that this move will hamper economic development, thereby increasing poverty, unemployment, and inequality. Statistics show that Black unemployment has grown since the implementation of race-based policies. ( Stats SA’s 2022 fourth quarter (Q4) Labour Force Survey ). Instead of helping the poor, it could instead hurt them by discouraging investment, growth, and jobs. Experience has shown that these “quotas” make the rich, richer, and leave the poor sinking further into poverty.

Poverty

And the Constitutional principle of non-racialism is also at risk here. How do employers assess the race of their employees, other than these employees self-identifying? Should the private sector adopt the public sector racialism seen when SAPS Commissioner Jackie Selebi kept a police post open rather than promote the “wrong” race?

Most fair-minded South Africans acknowledge the urgency needed to correct the unfair labour practices of our past. But this new amendment has resulted in more questions than answers. At the moment it seems to be a blunt instrument being used to deal with a sensitive issue that affects every working person in South Africa.

Most South Africans agree that the unfair labour practices of the past have to be corrected.

 – Written by Leslie Hurst –

Employment equity

Understanding the Employment Equity Act

Understanding the Employment Equity Act and Recent Amendments

Explore the Employment Equity Act and recent amendments…

The Employment Equity Act (EEA) is designed to promote equity in the workplace.

To redress the historic legacy of workplace disadvantages, thereby ensuring that all employees receive equal opportunities, and that employees are treated fairly by their employers. The law protects the employee in all occupational categories and levels from unfair treatment and any form of discrimination.

What are some business actions that can be regarded as discriminatory by the EEA?

  • Refusing to employ a person because he/she has strong religious beliefs/has a disability
  • Doing HIV testing unless justified by the Labour Court.
  • Denying people access to the workforce, and treating them unfairly, based on their:
  • gender
  • pregnancy
  • marital status
  • family responsibility
  • ethnic or social origin
  • race
  • sexual orientation
  • age
  • disability
  • religion
  • HIV status
  • conscience
  • belief
  • political opinion
  • culture
  • language and
  • birth
Diversity Ethnicity World Global Community Concept

Disadvantages of the EE act:

  • Increased administration burden, as businesses must compile/submit employment equity reports every two years.
  • Expensive to train/employ someone who knows about the Act.
  • Other groups may not respect the knowledge/skills/experience of an E appointment which may lead to conflict.

Proposed Act Amendments

Proposed Sector EE targets

In April this year, President Cyril Ramaphosa signed into law the Employment Equity Amendment Act 4 of 2022. The Act amends the Employment Equity Act of 1998 (Act 55 of 1998) , the effective date is still to be announced.

One of the changes is the definition of a “designated employer”, which has been amended to exclude companies with fewer than 50 employees (irrespective of their annual company turnover). This means smaller businesses are not required to comply with the obligations of a designated employer regarding affirmative action (including the development and implementation of EE plans, and reporting and submitting EE reports to the Department of Employment and Labour). This lifts a huge administrative burden from small businesses.

These smaller businesses will still be entitled to obtain a Certificate of Compliance (under Section 53 of the EE Act), which is necessary to apply for government tenders.

But there have been some controversial changes as well. The new Section 15A introduces sectoral numerical targets. This is designed to ensure the equitable representation of people from historically disadvantaged groups (based on gender, race and disability etc, ) at all levels in the workplace.

The Minister of Employment and Labour (in consultation with the Employment Equity Commission) will identify, and set sector-specific EE numerical TARGETS (not quotas) for each national economic sector, for the administration of the EEA. (He will also be able to regulate compliance criteria, and issue a certificate of compliance.) This is a big shift, as the government has always stressed that there are no targets in this space. It will be interesting to see which demographics will be used in setting these targets. What role will REGIONAL demographics versus NATIONAL demographics play?

A new online assessment system to monitor employers’ implementation of these sector targets will be launched by the Minister, to track whether employers are achieving their targets.

These sector-specific targets have caused great consternation. The trade union Solidarity has sent the President a letter, asking him not to sign the Bill into law, but to refer it back to Parliament. They contend that this law is unconstitutional and immoral. This amendment will definitely be challenged in court.

So what can you do?

WHAT DOES THIS MEAN FOR YOUR BEE AND EE STRATEGY?

If you wish to comment on this amendment, as a company, then join forces with others in your economic sector or industry, and send comments to the minister (department of labour). Consolidated comments will hold more sway, and force the government to take notice. You have until 12 June to do this.

Find details on where to send your comments in the Proposed Sector EE targets document. Proposed Sector EE targets