Solidarity to fight law giving minister power to set equity targets

Solidarity is preparing to launch a legal challenge to the “unconstitutional” Employment Equity Amendment Bill, which was signed into law by President Cyril Ramaphosa on Wednesday.

The labour union said the law granted draconian racial powers to the minister of labour and employment, and that its legal team would serve its court papers soon.

The presidency said the new law sought to advance transformation of the country’s workforce by setting equity targets for economic sectors and geographical regions and requiring enterprises to develop transformation plans.

It empowers the minister to set employment equity targets for economic sectors as well as regions where transformation is lagging.

The amended Act also allows the minister to set regional targets given that racial diversity in SA 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.

Employers are then required to submit annual reports to the department.

In reaction to the signing of the bill into law, Solidarity said it wrote to Ramaphosa on August 23 last year, pointing out its view that the amendments were unconstitutional.

The union said it obtained legal opinion which confirmed this and made submissions to parliament.

“The president is therefore aware that Solidarity would go to court should he sign this Act into law. This is precisely what he has now done and we are now preparing for court,” Solidarity chief executive Dr Dirk Hermann said.

The union said the draconian law now granted the minister powers to do central racial planning at his discretion.

“This would be the most drastic race-manipulating legislation in the world.

“It is anticipated that the private sector would have to follow the state’s example.

“Private enterprises will become state-run racial enterprises,” Hermann said.

He said the law would have consequences for the economy.

“New definitions of ‘designated employers’ will force small businesses to remain small and will cost thousands of jobs.

“Any promotion opportunities for those fortunate enough to keep their jobs will be completely stopped.

“This will mean the skills exodus would merely be accelerated and SA’s economy — like its public service — will become increasingly trapped in a spiral of inefficiency, contraction and imminent collapse.”