What does DA's legal challenge to Employment Equity Amendment Act mean?
Experts say there are not enough inspectors to ensure businesses implement the legislation. Clement Manyathela interviews Tertius Wessels of Strata-g Labour Solutions.
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702's Clement Manyathela speaks to Tertius Wessels of Strata-g Labour Solutions about the Employment Equity Amendment Act. Judgment has been reserved in the Democratic Alliance's legal challenge against it.
Listen below:
Some hail the amendments as a bold step towards transformation necessary to achieve true diversity of the workforce, while others slam them as unworkable.
Wessels outlines several changes and explains that the new sector-specific numerical targets are controversial.
"The big controversy behind these sectoral targets is, I think, the fact that it states: 'Employers must achieve them by the end of their five-year period'. So, where historically employers had a 12-month plan that they did every year, the new amendments effectively make provision for a five-year plan, and that will run from the 1st of September 2025 until 31 August 2030. So this word 'must' then tells us that if we do not achieve these targets, what are the consequences?"
- Tertius Wessels, Managing Director - Strata-g Labour Solutions
Wessels says effectively, and what has always been the case, where there is non-compliance, a fine could be imposed ranging anywhere from R1.5-million or 2% of a company's annual turnover up to R2.7-million or 10% of turnover if it's a repeat offender.
So, this is a substantial amount of money that businesses are going to risk paying if they do not comply, he says.
"... in 30 years of democracy, when we've had employment equity legislation with us, since 1996, if my memory serves me correctly, we gave employers an opportunity to transform the workplace. And yes, to a large extent, we have seen a lot of success stories from a transformation perspective... But I think there's still a sense that transformation or equity in the workplace is not happening fast enough, and hence now these targets have been set."
- Tertius Wessels, Managing Director - Strata-g Labour Solutions
Wessels also voiced concern about the low number of labour inspectors. He feels more of them are needed to enforce compliance.
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