2020-08-24

Minister can set compulsory Employment Equity Targets

Until the Employment Equity Amendment Bill comes into force, Employer have been able to set their own targets based on their own Plan and operational requirements.  Its not working, and the Minister of Employment and Labour, is taking an uncompromising approach to workforce transformation: changes will happen, and he will set the target for changes that will be met.

The Bill allows the minister to set targets in sectors, or subsectors, specifically to ensure equitable representation of suitably qualified people from designated groups at all occupational levels in the workforce.

The Bill calls them targets, but they are compulsory quotas, and must be met.

He can make the targets extremely specific in sectors and subsectors, as well as specific occupational levels.  The Commission for Employment Equity (CEE) showed that top management, senior management and professional employee groups continue to be under-represented.  Logically, that would be where the Minister would start.  He could specify targets, for instance, for senior managers in the construction sector, or skilled professionals in the Eastern Cape’s Wholesale and Retail Sector. Effectively the Minister of Labour will decide the speed of transformation and the repercussions for not achieving it.

The CEE showed that white men represent just 5.1% of the EAP and white women 3.9%, but they are:
-              66.5% of top managers,
-              54.4% of senior managers and
-              37.4% of professionals.

Only 15.1% of top managers in 2018 were African, even though they accounted for 78.8% of the EAP.  African males represent 42.8% of the economically active population and yet they only represent 10% in top management.

Repercussions of not meeting the Minster’s targets.

The main repercussions will be the disqualification from dealing with the state, until the targets are met.  Any dealings with the State will require the issuing of an Employment Equity Certificate which cannot be issued without achieving the Minister’s targets.  A Level 1 BBBEE Certificate will still exclude you if there is no Employment Equity Certificate issued too.

Justification for not meeting the Minster’s targets.

An Employment Equity Certificate can be issued of there are justifications for noncompliance. There is no indication of what justifiable non-compliance will be: logically it would refer to retrenchments, downscaling, restructuring, etc.

Exemption

There is no exemption procedure: the targets will be set and achieved, unless there are justifiable reasons for noncompliance.

On the subject of compliance:

The Employment Equity Submissions deadline is 01 October 2020.  Those clients with onsite Human Resources or BBBEE Services, already have their consultants busy with the reports.  If anybody needs assistance with Employment Equity and Skills Development please let me know.

Mark - 13:28 | Add a comment

 
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