Cape Town - Mixed reactions have been received over the Employment Equity Amendment Bill of 2020, which was signed into law last week, aiming to advance the transformation of South Africa’s workforce by setting equity targets for economic sectors and geographical regions and requiring enterprises to develop transformation plans.
President Cyril Ramaphosa explained, among its key provisions, the amendment bill empowered the Minister of Employment and Labour to set employment equity targets for economic sectors, as well as regions “where transformation is lagging”.
“The amendment bill also empowers the Minister of Employment and Labour to regulate compliance criteria to issue Compliance Certificates as per Section 53 of the Employment Equity Act.
“The amended act allows the Minister of Employment and Labour to set regional targets given that racial diversity in South Africa often has regional differences.
“The law requires employers with more than 50 employees to submit employment equity plans for their companies, spelling out how they will achieve these targets,” he said.
Trade federation Cosatu welcomed the changes.
“The Employment Equity Amendment Act (EEA) provides badly needed interventions to strengthen government’s ability to hold employers accountable for their role and failures to adhere to the Employment Equity Act.
“Cosatu urges the Department of Employment and Labour to move with speed to ensure the promulgation and implementation of these long overdue provisions.
“Organised business must do its bit to ensure employers are aware of these new requirements. Cosatu will, working with its affiliates, endeavour to empower shop stewards and workers on this progressive amendment act.”
Assembly of the Unemployed’s(AoU) Motsi Khokhoma said while they agreed with Cosatu, the unemployed should also have been consulted.
Business Unity South Africa (Busa) said they welcomed the transformation mandate, but they expressed concern about enforcement mechanisms within government and some companies.
“These complex arrangements increase the compliance burden, which in turn may derail transformation, especially at a time when South Africa desperately needs economic growth to generate much-needed employment”, said Busa chief executive, Cas Coovadia.
Labour lawyer Michael Bagraim said the legislation “in essence, is bad”.
“The minister now has the power to decide on employment equity numbers per sector. This makes it more and more difficult for employers to populate their business with people who they think are properly qualified.
“Employers are now being forced to take on individuals that they might not want as the first choice.
“This means that most employers are now considering rather outsourcing and computerised. Many employers are considering downsizing their workforce. They will rather have production done in another jurisdiction,” he said.
Cape Times