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IOL News
a day ago
- Business
- IOL News
Preparing for new employment equity targets in South Africa's financial sector
Explore the recent amendments to South Africa's Employment Equity Act and discover how financial institutions must adapt to new sector-specific targets to ensure compliance and drive transformation. Image: Freepik The transformation imperative in South Africa's financial services sector has reached a critical juncture with the recent amendments to the Employment Equity Act 55 of 1998 (EEA), which came into effect on 15 April 2025. These legislative changes signal a transition from a discretionary compliance model to a more prescriptive and measurable approach. Employers in the financial services sector are now required to actively drive change through clearly defined numerical targets and strategic employment equity planning. This is particularly important given the slow pace of transformation across all sectors, including the financial services sector. The sector faces challenges such as the underrepresentation of historically disadvantaged individuals in executive roles, skill shortages, and complex corporate structures. As a result, the financial services sector is under increased pressure to demonstrate concrete transformation outcomes. Sector-specific targets: What employers in the financial services sector must achieve The key driver behind these heightened obligations is the introduction of section 15A into the EEA. This provision grants the Minister of Employment and Labour the authority to determine sector-specific numerical targets applicable to designated employers. The amendments introduce five-year sectoral targets tailored to, amongst other sectors, the financial and insurance sector. Designated employers operating within this sector are required to incorporate these into their Employment Equity Plans (EEPs). For the financial and insurance sector specifically, the sectoral targets require that 63.1% of top management positions be held by members of designated groups. Of these, 27.8% should be occupied by males from designated groups, and 35.3% by females from those groups. At senior management level, the target increases to 77.0%, with 31.7% allocated to males and 45.3% to females within designated groups. For the professionally qualified and middle management category, the target is set at 86.8%, broken down into 40.7% male and 46.1% female representation among designated groups. For skilled technical positions, 95.6% of these are expected to be held by designated groups, comprising 49.5% male and 46.1% female representation. In addition to these occupational level targets, there is a universal requirement across all levels that at least 3% of positions be filled by persons with disabilities. These targets are not merely aspirational, they are enforceable. Employers are expected to report progress annually, and a failure to meet these thresholds may result in scrutiny, penalties, or loss of access to state contracts. While the legislation allows employers to justify non-compliance with sectoral targets, these justifications will be rigorously assessed. Acceptable grounds may include a lack of suitably qualified candidates from designated groups, limited promotion or recruitment opportunities, the impact of business transfers, mergers, CCMA awards, court orders, or adverse economic conditions. Importantly, these reasons must be thoroughly documented. The onus is on the employer to prove their validity, and unsupported or vague justifications are unlikely to be accepted. Therefore, employers must maintain detailed records and internal analyses to substantiate any departure from their EEP commitments. For effective implementation, organisations must strengthen their internal employment equity structures. This includes training line managers and employment equity forum representatives, particularly those involved in recruitment and promotion decisions. These forums must be empowered to act as transformation champions within the business. Additionally, employers should upgrade administrative processes to support accurate data collection, timely reporting, and robust monitoring. Record-keeping is particularly critical where employers rely on justifications for not meeting targets.
IOL News
4 days ago
- Business
- IOL News
Collapsing buildings: lapses in safety and security in the construction sector
The Tongaat Mall Image: File ACCORDING to Jomo Sibiya, Deputy of Employment and Labour, the South African construction sector has one of the highest accident rates in the country, with 1.5 to two fatalities per week, and is classified as one of the top four high-risk industries in the country. Building collapses occur when a structure fails and partially or fully collapses, endangering human lives and health. This can result from various factors, including structural failures, poor construction practices, and external forces like fires or earthquakes. The effects of a building collapse can be devastating, leading to loss of life, injuries, property damage, and significant economic and social disruption. On May 6, 2024, the Neo Victoria project, a residential building under construction, collapsed in George, Western Cape, killing 34 workers and injuring 28. The George Building Collapse was a tragic disaster and one of the worse in the South African construction industry. President Ramaphosa extended his condolences: 'We know that many of you are in grief. There's no worse grief than people who have lost their loved ones… We are here to give comfort, and there will be a need for… psychosocial support. And when that is the case, we will have people who will give that support … There will be assistance for those who are in hospital to be well treated, there will be assistance for those who have to be buried. There will also be compensation that will have to go through the channels of our various institutions.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Most of the deceased were foreign undocumented labourers from Mozambique, Malawi and Zimbabwe. To date, there is no record of their names. After all, in South Africa, undocumented migrant labourers are expendable. The Minister of Human Settlements, Thembi Simelane presented a report by the National Home Builders Registration Council (NHBRC) to the Portfolio Committee on Human Settlements on 4 April 2025: 'It's a report which indicates the failure of our systems at the NHBRC … There was a lapse of enrolment requirements which were overlooked by our internal staff at the council …There was a lapse …with regard to the structural engineering and drawings and the details which were not fully disclosed as they should have been… We also had missing detailed material information about the construction… The contractor cut corners. Our system enabled him to cut corners by not following our standard operating procedures and even approving without the fulfilment of all the necessary attachments that needed to be done.' There were also design flaws, poor quality concrete, and safety alerts were overlooked. Four construction workers lost their lives and one survived following the collapse of an embankment at a construction site in Zen Drive, Ballito, on 18 May 2024. On 29 March 2025, two workers employed by a construction firm were digging a trench on Canehaven Drive, Phoenix, when a retaining wall and sand and metal reinforcement fell on them. It was established that the deceased were Mozambican nationals. On November 19, 2013, a section of the second floor of the partly completed Tongaat Mall collapsed, killing two and injuring 29 construction workers. Construction of the Tongaat Mall had commenced without the building plans being approved. Gralio Precast, the company developing the mall, was a beneficiary of many tenders from the eThekwini Metro. A commission of inquiry was appointed by the Department of Labour and chaired by Inspector Phumudzo Maphaha to investigate this collapse. The investigation found that the collapse was due to substandard construction work and several contraventions of the Occupational Health and Safety Act and Construction Regulations which included the following: poor plan design; the contractor's failure to comply with regulations; contraventions of the Safety and Health regulation; missing steels and columns; lack of supervision on site; an important site diary was missing; lack of health and safety audits; and inappropriate building materials (cement imported from Pakistan did not meet South African Bureau of Standards requirements). These reasons can be attributed to a reckless, calculated strategy by the developer to save construction costs and compromise the safety of onsite workers. For example, a beam with insufficient steel bars may have led to the collapse. According to an engineer, the beam should have had 19 steel bars. Also, some of the concrete utilised was less than a third of the required strength. In May 2016, the then Minister of Labour Mildred Oliphant acknowledged that while there was clear evidence of impropriety, she was not in a position to give the names of people and companies implicated. Instead, she handed over the inquiry results to the National Prosecuting Authority (NPA) in KwaZulu-Natal for further investigation and action. However, as reported by News 24, eight years on in May 2024, Natasha Ramkissoon-Kara, spokesperson for the NPA, said that 'Investigations are ongoing, and we are therefore not in a position yet to make any decision in respect of the matter.' However, it is a common cause that the NPA has a poor history of initiating prosecutions and achieving convictions in high-profile cases involving malfeasance. This delay by the NPA in investigating and prosecuting those implicated in deliberately compromising safety in the construction sector has national implications. An analysis conducted for the South African Institute of Occupational Health (SAIOSH) in May 2024 by Professor of Construction Management at Nelson Mandela University, John Smallwood, emphasised the ongoing safety issues and the need for extensive measures to enhance the industry's health and safety practices. According to Professor of Smallwood: 'There is no such thing as an accident … noting that what are traditionally termed accidents are often the result of management failures …Workers exposed to hazards and risks are people with a body, mind, and soul, who invariably have a partner, a family, and are derived from a community.' He emphasised that unforeseen accidents are often 'planned by default' through actions or inactions, highlighting the necessity for a change in the industry's safety approach. Lennie Samuel, a senior inspector and forensic investigator at the Department of Labour, similarly contended that the absence of oversight and management failures is the main reason for collapsing buildings. The causes of most of the incidents examined could be traced to senior management, who only fix the immediate causes or symptoms rather than the underlying issues. Regrettably, the outcomes frequently result in injuries, disabilities, deaths and collapses. A comprehensive strategy is essential to decrease accidents in the South African construction sector, including training, recognising hazards, appropriate tools and processes, and implementing robust site management practices and a robust safety culture. This involves complying with applicable regulations, fostering effective communication, and promoting employee safety, health and welfare. Professor Brij Maharaj Image: File Professor Brij Maharaj is a geography professor at UKZN. He writes in his personal capacity. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. THE POST
Eyewitness News
5 days ago
- Business
- Eyewitness News
Cabinet approves bill aimed at regulating movement and employment of foreign nationals
CAPE TOWN - Cabinet has approved the introduction of a new bill that seeks to limit the number of foreign nationals that can be employed in the country. At the same time, it also approved the National Labour Migration Policy White Paper, which introduces quotas on the total number of documented foreign nationals that can be employed in major sectors such as agriculture, hospitality, tourism, and construction. Providing an update on Cabinet decisions at parliament on Thursday, Minister in the Presidency Khumbudzo Ntshaveni said the policy is aimed at achieving balance across the sectors, including addressing South Africans' expectations for job prospects amid rising unemployment. "The policy complements other interventions such as the enforcement of a list of sectors where foreign nationals cannot be allocated business visas and amendments to the National Small Enterprise Act, 1996, which limits foreign nationals establishing Small, Medium and Micro Enterprises, and trading in some sectors of the economy." ALSO READ:- DA argues that employment targets set by labour minister could lead to employers firing employees who don't meet quotas Cabinet has also given the thumbs up to the tabling of the Employment Services Amendment Bill in Parliament, which provides a policy framework and the legal basis to regulate the employment of foreign nationals in business. It will also tighten the screws on labour brokers to prevent exploitation through the employment of undocumented foreign nationals. According to the bill, the employment minister will have the power to set quotas for the employment of foreign nationals. "Cabinet directed the Minister of Employment and Labour to speedily finalise the mapping, through consultations, of what constitutes scarce and critical skills in order to develop a domestic skills base to improve absorption of more unemployed South Africans."
Daily Maverick
6 days ago
- Politics
- Daily Maverick
Collapsing buildings and lapses in safety bedevil the SA construction sector
The construction sector has one of the highest accident rates of any industry in South Africa, with 1.5 to two fatalities per week. It is classified as one of the top four high-risk industries in the country, according to Deputy Minister of Employment and Labour Jomo Sibiya. Building collapses occur when a structure fails and partially or fully collapses, endangering human lives and health. This can result from various factors, including structural failures, poor construction practices and external forces such as fires or earthquakes. The effects of a building collapse can be devastating, leading to loss of life, injuries, property damage and significant economic and social disruption. George disaster On 6 May 2024, the Neo Victoria project, a residential building under construction, collapsed in George, Western Cape, killing 34 workers and injuring 28 – a tragic disaster and among the worst in the South African construction industry. President Cyril Ramaphosa said, in extending his condolences, that 'we know that many of you are in grief. There's no worse grief than people who have lost their loved ones… We are here to give comfort, and there will be a need for… psychosocial support. And when that is the case, we will have people who will give that support… There will be assistance for those who are in hospital to be well treated, there will be assistance for those who have to be buried. There will also be compensation that will have to go through the channels of our various institutions.' Most of the dead were foreign undocumented labourers from Mozambique, Malawi and Zimbabwe. To date, there is no record of their names. After all, in South Africa, undocumented migrant labourers are expendable. The Minister of Human Settlements, Thembi Simelane, presented a report by the National Home Builders Registration Council (NHBRC) to the parliamentary committee on human settlements on 4 April 2025. She said 'it's a report which indicates the failure of our systems at the NHBRC… There was a lapse of enrolment requirements which were overlooked by our internal staff at the council… There was a lapse… with regard to the structural engineering and drawings and the details which were not fully disclosed as they should have been… 'We also had missing detailed material information about the construction… The contractor cut corners. Our system enabled him to cut corners by not following our standard operating procedures and even approving without the fulfilment of all the necessary attachments that needed to be done.' There were also design flaws, poor quality concrete, and safety alerts were overlooked. Deadly KZN collapses On 18 May 2024, four construction workers died and one survived following the collapse of an embankment at a construction site in Zen Drive, Ballito. On 29 March 2025, two workers employed by a construction firm were digging a trench on Canehaven Drive, Phoenix, when a retaining wall and sand and metal reinforcement fell on them. It was established that the deceased were Mozambican nationals. On 19 November 2013, a section of the second floor of the partly completed Tongaat Mall collapsed, killing two and injuring 29 construction workers. Construction of the Tongaat Mall had commenced without the building plans being approved. Gralio Precast, the company developing the mall, was a beneficiary of many tenders from the eThekwini Metro. A commission of inquiry was appointed by the Department of Labour and chaired by Inspector Phumudzo Maphaha to investigate this collapse. The investigation found that the collapse was due to substandard construction work and several contraventions of the Occupational Health and Safety Act and construction regulations which included the following: poor plan design; the contractor's failure to comply with regulations; contraventions of the safety and health regulations; missing steels and columns; lack of supervision on site; an important site diary was missing; lack of health and safety audits; inappropriate building materials (cement imported from Pakistan did not meet South African Bureau of Standards requirements). These reasons can be attributed to a reckless, calculated strategy by the developer to save construction costs and compromise the safety of onsite workers. For example, a beam with insufficient steel bars may have led to the collapse. According to an engineer, the beam should have had 19 steel bars. Also, some of the concrete used was less than a third of the required strength. In May 2016, the then minister of labour Mildred Oliphant acknowledged that while there was clear evidence of impropriety, she was not in a position to give the names of people and companies implicated. NPA failures Instead, she handed over the inquiry results to the National Prosecuting Authority (NPA) in KwaZulu-Natal for further investigation and action. However, as reported by News 24, eight years on in May 2024, Natasha Ramkissoon-Kara, spokesperson for the NPA, said that 'investigations are ongoing, and we are therefore not in a position yet to make any decision in respect of the matter'. However, it is common cause that the NPA has a poor history of initiating prosecutions and achieving convictions in high-profile cases involving malfeasance. This delay by the NPA in investigating and prosecuting those implicated in deliberately compromising safety in the construction sector has national implications. 'No such thing as an accident' An analysis conducted for the South African Institute of Occupational Health in May 2024 by Professor of Construction Management at Nelson Mandela University, John Smallwood, emphasised the ongoing safety issues and the need for extensive measures to enhance the industry's health and safety practices. According to Prof Smallwood: 'There is no such thing as an accident… noting that what are traditionally termed accidents are often the result of management failures…Workers exposed to hazards and risks are people with a body, mind, and soul, who invariably have a partner, a family, and are derived from a community.' He emphasised that unforeseen accidents are often 'planned by default' through actions or inactions, highlighting the necessity for a change in the industry's safety approach. Lennie Samuel, a senior inspector and forensic investigator at the Department of Labour, similarly contended that the absence of oversight and management failures was the main reason for the collapse of buildings. The causes of most of the incidents examined could be traced to senior management, who fix only the immediate causes or symptoms rather than the underlying issues. Regrettably, the outcomes frequently result in injuries, disabilities, deaths and collapses. A comprehensive strategy is essential to decrease accidents in the South African construction sector, including training, recognising hazards, appropriate tools and processes, and implementing robust site management practices and a robust safety culture.
The Star
26-05-2025
- Business
- The Star
ActionSA writes to President Ramaphosa demanding dismissal of employment minister
ActionSA has written to President Ramaphosa, requesting that he dismiss the Minister of Employment and Labour, Nomakhosazana Meth, for her clear failure to arrest the deepening unemployment crisis that continues to erode hope, dignity and opportunity for millions of South Africans. The latest Quarterly Labour Force Survey (QLFS), Q1:2025, paints a dire picture: The official unemployment rate rose to 32.9%, up from 31.9% the previous quarter. A staggering 8.2 million South Africans are now unemployed, with an additional 3.5 million discouraged work-seekers. 291 000 jobs were lost in the first quarter alone – the first such Q1 contraction since 2021. This equates to more than 24,000 jobs lost each week, and almost 5 000 each workday. The proportion of young South Africans aged 15–34 who are not in employment, education, or training (NEET) rose to 45.1% in Q1:2025 — a devastating indicator that nearly half of our youth have been left without opportunity, support or a path to a better future. There is a glaring absence of any meaningful strategy, either in planning or implementation and despite full awareness of South Africa's worsening unemployment crisis, Minister Meth has failed to present a coherent plan to stem job losses, support the informal economy or tackle the systemic barriers that keep young people out of the workforce. In November 2024, ActionSA asked Minister Meth whether she would resign should the country's distressing unemployment figures continue to rise. Her response was blunt and unapologetic: 'Unfortunately, I won't resign.' This laid bare a disturbing indifference to the suffering of millions of South Africans. It is an attitude that reflects the posture of an uncaring government that has grown comfortable with failure while ordinary citizens pay the price. Nearly a year into her tenure, Minister Meth has not demonstrated the urgency, capacity or leadership required to respond to this economic and social emergency. South Africa's working-age population cannot afford further stagnation under ineffective stewardship. The absence of meaningful performance management for GNU Ministers has created a culture where failure carries zero consequence. In any functional democracy, such dismal figures amid worsening socio-economic conditions would compel a Minister to take responsibility and step down. Sadly, this standard of accountability is sorely lacking in South Africa and glaringly absent in the Ramaphosa-led administrations. ActionSA believes that something has to give. Sitting on our hands while millions suffer is simply not an option. We are committed to using every available lever to ensure that South Africa's unemployment crisis is addressed with the urgency it demands. Alan Beesley MP, ActionSA Member of Parliament
