Calls for action over failure to transform

More than 50% of the 192 companies that have been referred for prosecution for not complying with employment equity law are listed on the JSE.

The Department of Labour said it planned to promulgate section 53 of the Employment Equity Act to block the offenders from doing business with the state as a countermeasure. The amendment bill could be before Parliament as early as August if the Commission for Employment Equity has its way.

A 2016 commission report released by the department on Tuesday reveals that whites and males, in particular, are overrepresented at the top management level in all sectors of the economy. It also reveals that white women represent more than the rest of the designated female groups in that category.

Whites hold 68% of all top management positions, down 1.5 percentage points compared to 2014, while Africans’ representation increased slightly to 14.4% from 13.6% in 2014.

Business Unity SA (Busa) has condemned the state of affairs and the Black Management Forum (BMF) wants noncompliant companies delisted.

The ANC said the report provided an instructive case of the need for radical economic transformation. “It [inequality] will be a source of instability if not addressed,” said ANC spokesman Zizi Kodwa.

Self-regulation has not worked, according to commission chairwoman Tabea Kabinde. “The practice of gatekeeping in companies maintains the status quo … racism and sexism still persist, perpetuating the lack of transformation.”

Busa CEO Tanya Cohen said the trend over the past two decades suggested something “very different” needed to happen if transformation was to be realised. Although it would be ideal if business complied voluntarily, the mooted measures would conscientise businesses.

BMF president Mncane Mthunzi said that there was a need for serious consequences as the existing regulatory framework had failed. “We expect

nothing less than the delisting of noncompliant employers .... Government should also set up a tribunal which will function like the Competition Tribunal,” he said.

Labour Minister Mildred Oliphant said the report pointed to a painfully slow pace of transformation in the labour market and the implementation of harsh penalties was the only way forward. She said it was time to “up the ante”.

“It [the report] mirrors the glaring lack of appetite for transformation, especially by big corporates…

“It is very concerning that there are just too many JSE-listed companies that are completely ignoring the law,” the minister said.

Department of Labour deputy director-general Aggy Moiloa said they had been forced to refer intransigent employers for prosecution, and had recovered R18.5m in fines during the period under review.

“Of the 192 sent for prosecution, 19 companies have already paid to the value of R18.5m; 79 employers have not opposed their cases and the amount involved is R118.5m. The rest, around 90 employers, have decided to oppose the matter and the amount involved there is R135m so, all in all, it is 152 cases referred for prosecution.”