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Report says business is not complying with Act

Publish date: 16 May 2007
Issue Number: 1825
Diary: Legalbrief Today
Category: Corruption

Labour Minister Membathisi Mdladlana yesterday expressed disappointment at a report by the Commission for Employment Equity which indicated that corporate compliance with the Employment Equity Act was at an all-time low, according to Business Day.

Management of the economy remained predominantly in white hands, with black people largely consigned to support functions such as human resources, corporate affairs and government liaison, and denied access to line-function authority, according to the report handed to the Minister by the commission’s chair, Jimmy Manyi. ‘The pace of transformation has been painfully slow,’ Manyi said. To have a greater impact, the Labour Department and the Commission also intend targeting the top 100 companies listed on the JSE to get ‘serious progress’ in compliance. Those found to be not complying would be subjected to an intense review by Labour Director-General Vanguard Mkosana. The Commission has also recommended that fines for non-compliance be increased because they were at present ‘too low and meaningless’. Manyi reported in the Commission’s findings that in 2000- 06, the number of blacks in top management rose by 9.5%, of which the number of Africans increased 5.1% to 11.3%, coloureds 2% to 4.7% and Indians 2.4% to 6.2%. White women, however, increased 4.5% to 14.7%, or three times their representation in the economically active population. Full Business Day report

Manyi blamed the over-representation of white women on an ‘inherent and ingrained’ racism among bosses that favoured the promotion of white women above black individuals, notes a FIN24 report. However, he pointed out the government was not anti-white. ‘We want this country to be non-racial and it will be non-racial.’ If every company properly implemented the Employment Equity Act, or even moved further than what the law stipulated, the Act would eventually become redundant, he said. Full FIN24 report

The Commission’s investigation was criticised as being too narrow by trade union Solidarity. It said too much of the focus was on management positions that represent only 0.5% of the SA labour force. ‘It is clear that the focus only falls on empowerment of a tiny elite. Manyi, and the affirmative action programme shows little interest in 95% of our country\'s workers,’ said Dirk Hermann, deputy general secretary of Solidarity, in a report on the IoL site. Full report on the IoL site

Six companies which Mdladlana last year singled out for failing to comply with legislation, still continue to defy the law. Nkosana described as ‘horrifying’ the extent to which the companies were disobeying the Act. ‘Preliminary observations of these six companies were not only shocking; all six companies did not comply with the full requirements of the Act. They have failed to consult with employees, conduct an analysis of their workplace, prepare and implement an employment equity plan and submit progress report to the Department of Labour using prescribed forms,’ he said, according to The Citizen. The six companies that include Kumba Resources, Comair Limited, Verimark Holdings (PTY) Ltd, Medi-Clinic Group, Prism Holdings and Omnia Group Limited, were last year subjected to a name and shame campaign spearheaded by Mdladlana. Nkosana said the department has now given the six companies until August to demonstrate progress in implementing the department’s recommendations. Failing that they would be taken to the Labour Court. Full report in The Citizen

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