Government enforces EE compliance

‘Companies do not take law seriously’

The government has started using the stick to force companies to comply with legislation seeking to give black people opportunities generally enjoyed by their white counterparts in the workplace.

The punitive measures have thus far resulted in the government raking in almost R20million from the fines that emanated from successful prosecution of companies failing to adhere to the Employment Equity Act.

The Department of Labour revealed this yesterday during the launch of the 17th annual report of the commission for employment equity.

Labour deputy director-general for inspection and enforcement services, Aggy Moiloa, said almost 200 employers had been referred for prosecution for noncompliance.

“We have referred in this financial year 192 employers for prosecution and the amount in question is around R255-million.

“Of the 192, 19 have already paid R18.5-million and 79 employers have not opposed their cases. The amount involved is R118.5-million.

“The rest, around 90 employers, have decided to oppose their matters and the amount involved is R135-million.

“In instances where designated employers have not submitted their [transformation] plans as required in terms of section 20 of the Employment Equity Act, we refer them for prosecution,” she said.

Moiloa said in cases where companies had workplace transformation plans which they were not implementing, they were issued with compliance orders.

The report showed that blacks made up 78%, coloureds 9.8%, Indians 2.8% and whites 9.5% of the economically active population while 26 255 employers who employ 7 071 449 people filed their submissions.

Empowerment analyst Duma Gqubule said the penalties were a little because they meant on average each company was fined R1-million.

“The department should consider quotas because for the past 18 years there has not been any movement in employment equity as companies do not take the law seriously.

“Between 2009 and 2016 there was no change in EE at top, senior and middle management,” Gqubule said.

“This shows there is institutional racism in many companies listed on the JSE,”