Tag Archive | Employment Equity Act

Labour committee ignores strikes

Strikes not given as labour problems….

dol logoActing DG of the department of  labour (DoL), Sam Morotua, when asked before the recent short recess for “the major challenges” faced by his department in the labour market, noticeably failed to mention any of the issues surrounding the current spate of strikes both in the mining and metalworkers section.

This was despite later stating that one of his departmental tasks was to run programmes evaluating the effects of labour issues upon the economy.

New chairperson of the labour portfolio committee, Lumka Yengeni, had broken with normal procedure and asked Morotua to enumerate the most important issues currently being dealt by DOL before commencing the department’s strategy briefing Parliament together with the department’s justification of the current labour budget appropriation for 2014/5.

Chair Yengeni had already put her energetic stamp on the committee’s work programme with a more interactive and vigorous approach during the first weeks of the new Parliament.

Seven problem areas

In response to the question by the chair, DG  Morotua listed DoL’s main “challenges” as unemployment and under employment; the changing nature of work in the country; inequalities and unfair discrimination in the workplace; domestic and cross border labour migration; inadequate instruments for constant performance; monitoring and evaluation of labour market and completing programmes to determine impact of such on the economy.

During the DoL briefing, Bheki Maduna, in charge of finance at DOL, re-confirmed to parliamentarians that for 2013/14 the department received a total of R2.4bn whilst the current appropriation before them for 2014/15 had been increased to R2.5bn.

He said that in the last year, 95% of the budget for administration was spent and also 97% of the inspection and enforcement services budget. Funding “challenges” ahead would be the implementation of the new Employment Services Act; the funding of the new office of chief information officer; new ministerial offices and positions; and the general rising costs of inspection and enforcement generally.

Minimum wages question

In a subsequent meeting of the same committee, when approving the passage of the budget vote to National Assembly (NA), the EFF took the opportunity to make a proposal calling for the introduction of minimum wages in all workplaces, including a wage of R12 500 for mine workers.  A second proposal was made by EFF calling for new labour laws to be amended so that labour broking was scrapped in entirety.

There was overwhelming agreement by members not to debate such changes.

However, in the same meeting, the committee called upon DoL to immediately expedite the process of building the DoL communications technology capacity and investigate the possibility of using the reserves of the unemployment insurance fund (UIF) to improve on benefits payable to UIF beneficiaries and to increase the period over which payments were made, particularly maternity benefits.

Subsequently when the DOL budget vote came before the NA, labour minister, Mildred Oliphant brought the House up to date on the DoL legislative programme.

Labour law amendments

She stated that amendments to the Compensation for Occupational Injuries and Diseases Act were in final draft stage but the questions of rehabilitation, re-integration and return to work were awaiting consultation with stakeholders.

She announced that the Basic Conditions of Employment Act would be amended regarding the issue of inspection and enforcement, confirming DOL’s earlier statement to the portfolio committee that additional budget would be required in this area.

All new regulations to the Employment Equity Act had been finalised, she said, publication being awaited; the Unemployment Insurance Act was to be amended and that these changes related to improvements of benefits and the submission of information by employers to the unemployment fund; and amendments to the Occupational Health and Safety Act were necessary because of the shortcomings in the way that health and safety was being regulated in the country.

Other articles in this category or as background
http://parlyreportsa.co.za//labour/labour-relations-act-changes-passed/
http://parlyreportsa.co.za//cabinetpresidential/parliament-delays-process-on-labour-relations-bill/
http://parlyreportsa.co.za//bee/rumblings-in-labour-circles-on-bee/
http://parlyreportsa.co.za//bee/dates-for-new-labour-law-amendments-outlined/

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Employment Equity regulations unexpected

Employment Equity Act surprises on race issues….

The reality of the Employment Equity Amendment Bill passed in Parliament last October is now beginning to kick in with the enforcement of the Bill by the regulatory process.   The Bill has now become an Act but the regulations are not what were expected on the race issue insofar as equity returns are concerned.

Oddly enough there were few objections or queries on the Bill when the draft Bill was presented for public comment by the department of labour (DoL) over eighteen months ago.  The legislation looked destined for an easy passage through Parliament but opposition party DA members appeared to be divided on a number of issues.

In an unusual turn of events, the Bill, when introduced into Parliament, allowed for foreigners whose applications for citizenship were turned down before 1994 on the basis of their skin colour and such persons can be included in employment equity (EE) returns in future.    This occupied much of the discussion in Parliament and MPs appeared to be relaxed that employment in terms of BEE would be regulated by DoL according to the demographics in the related areas.

Fines based on turnover

Fines were proposed in relation to turnover of the entity in question which could fall into eleven categories varying from agriculture to manufacturing, quarrying and mining to catering and transport and from wholesale, trade and commercial agencies to finance and business services.   Electricity, gas and water entities were mentioned, as were construction and community and personal services – all with total annual turnover thresholds given.

Most public comment in the parliamentary public hearings warned of criminalising business and strong objections were voiced on this issue.

Furthermore, the provisions of the Bill allowed for all white, Indian and coloured women who had been gender disadvantaged in terms of statutory law at any stage will also qualify for inclusion in terms of equity reporting.     The Employment Equity Bill was the third in a raft of four new labour bills presented to Parliament last year.

Business lagging in action

In its briefing to Parliament before the parliamentary public hearings, DoL suggested to parliamentarians that “business and industry has been riding roughshod over the law which had been unrevised for nearly 15 years and it was time now that provision was made in their budgets for considerably more than the negligible fines of the past.”

At the time of the Bill, it was assumed by most in the public hearings that the reference to “equity in terms of national or regional demographics” would mean that employers could set equity targets or make plans as called for in what could be interpreted as reasonable and according to the geographic area each company or entity was located.

The Bill said that “guidance would be given” on this provision by the DoL. The Bill was passed and became an Act with, as always happens, the regulations awaited – a matter then purely between DoL and the employer.

Race proportional representation

It appears from press reports that the regulations “giving guidance” on the issue of race demographics are a far more contentious item than the issue of the fines objected in the public hearings in Parliament.

The employment equity plan that each company must draw up, it is reported, now call in terms of the regulations issued for the targets to represent national demographics, not regional demographics as was expected, but still wherever the entity is of 150 employees or more wherever that entity is located.

It is unlikely that this matter will be debated in Parliament again unless a legal challenge results over the particular portion of the regulations concerned or the whole Bill is overturned constitutionally, which seems unlikely. Pressure on government to relax in general terms the consequences of new labour laws is coming from a number of directions.

Previous articles in this subject
http://parlyreportsa.co.za//bee/employment-equity-amendment-bill-looks-set-easy-passage/
http://parlyreportsa.co.za//labour/employment-equity-bill-criminalises-offenders/
http://parlyreportsa.co.za//bee/turnover-fines-employment-equity-breaches/
http://parlyreportsa.co.za//bee/court-ruling-equity-quotas-affects-bee/

Posted in Facebook and Twitter, Labour, LinkedIn, Special Recent Posts0 Comments

New Employment Equity Act gives shock

Employment Equity regulations published…

menfolk  The reality of the Employment Equity Amendment Bill passed in Parliament last October, now an Act, is beginning   to kick in with the enforcement of  regulations which, of course, are extra-parliamentary. The recently published regulations are not what were expected on the race issue, insofar as equity returns are concerned.

Oddly enough there were few objections or queries on the Employment Equity Bill when the draft Bill was presented for public comment by the department of labour (DoL) over eighteen months ago and the legislation looked destined for an easy passage through Parliament.

1994 critical date

In an unusual turn of events, the Employment Equity Bill, when introduced into Parliament, allowed for foreigners whose applications for citizenship were turned down before 1994 on the basis of their skin colour and such persons can be included in employment equity (EE) returns in future. This occupied much of the discussion in Parliament.

Fines were proposed as related to turnover of the entity in question, which could fall into eleven categories varying from agriculture to manufacturing, quarrying and mining to catering and transport and from wholesale, trade and commercial agencies to finance and business services.  Electricity, gas and water were mentioned, as was construction and community and personal services – all with total annual turnover thresholds given.

Worry was criminalisation

Most public comment in the parliamentary public hearings warned of the Employment Equity Bill criminalising business and strong objections were voiced on this issue.

Furthermore, the provisions of the Bill allowed for all white, Indian and coloured women who had been gender disadvantaged in terms of statutory law at any stage will also qualify for inclusion in terms of equity reporting. The Employment Equity Bill was the third in a raft of four new labour bills presented to Parliament last year.

In its briefing to Parliament before the parliamentary public hearings, DoL suggested to parliamentarians that “business and industry has been riding roughshod over the law which had been unrevised for nearly 15 years and it was time now that provision was made in their budgets for considerably more than the negligible fines of the past.”

National demographics the decider

At the time of the Bill, it was assumed by most in the public hearings that the reference to “equity in terms of national or regional demographics” would mean that employers could set equity targets or make plans as called for in what could be interpreted as reasonable and according to the geographic area each company or entity was located.

The Bill said that “guidance would be given” on this provision by the DoL. The Bill was passed and became an Act with, as always happens, the regulations awaited – a matter then purely between DoL and the employer.

It appears from press reports that the regulations “giving guidance” on the issue of race demographics are a far more contentious item than the issue of the fines objected in the public hearings in Parliament.

Still applies to min of 150 employed

The employment equity plan that each company must draw up, it is reported, now call in terms of the regulations issued for the targets to represent national demographics, not regional demographics as was expected, but still wherever the entity is of 150 employees or more wherever that entity is located.
It is unlikely that this matter will be debated in Parliament again, since a legal challenge might only result in that particular regulation being revised – unless of course the whole Bill is overturned constitutionally, which would seem most unlikely.
Previous articles in this subject
http://parlyreportsa.co.za//bee/employment-equity-amendment-bill-looks-set-easy-passage/
http://parlyreportsa.co.za//labour/employment-equity-bill-criminalises-offenders/
http://parlyreportsa.co.za//bee/turnover-fines-employment-equity-breaches/
http://parlyreportsa.co.za//bee/court-ruling-equity-quotas-affects-bee/

Posted in BEE, Labour, Trade & Industry0 Comments

Equity quotas court ruling affects BEE legislation

Employment equity quotas as numbers only struck down….

On equity quotas, the Employment Equity Act, as anchor legislation, and thus the recently approved Employment Equity Amendment Bill, has come under query as a result of a recent case heard in the Supreme Court which has found the Act is in default where numerical formulas only are applied to racial quotas in order to comply with regulations.

In fact numerical quotas are illegal, said the Court. In dealing with case before it, the Court found that this had been applied, the appellant failing to achieve an appointment based the fact that racial quota targets had been applied in terms of black empowerment legislation.  The defendant was the minister of police.

The court further found the Act in contradiction of itself by being unfair if it regulated itself to achieve employment equity with just numbers, as distinct from “preferential treatment and numerical goals” being applied, as has been applied in government circles elsewhere.

A whole host of applications applied by many government departments would therefore seem to be in contravention of the Act, since many departments rigidly use number quotas to achieve equity targets across a wide range of the public service.

Posted in BEE, Cabinet,Presidential, Facebook and Twitter, Justice, constitutional, Labour, LinkedIn, Public utilities, Security,police,defence, Special Recent Posts, Trade & Industry0 Comments


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