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Mail & Guardian
06-05-2025
- Business
- Mail & Guardian
New equity targets are constitutional, counsel for labour minister tells court
Minister of Labour and Employment Nomakhosazana Meth. (File photo) Fana Nalana SC on Tuesday told the Pretoria high court it was not unconstitutional for the minister of employment and labour to set numerical redress targets for companies. Appearing for Minister Nomakhosazana Ismail Jamie SC, for the DA, argued that the Act imposed rigid, one-size-fits-all sectoral targets, whereas affirmative action legislation should be carefully crafted to avoid an attack on the dignity of those who did not belong to the preferred demographic group. Jamie said whether an affirmative-action measure is constitutionally permissible depends on the context. 'If the amendment Act comes into effect, every designated employer would have to follow numerical targets set by the labour minister, regardless of the degree of underrepresentation it suffers from and its ability to remedy that underrepresentation,' he said. Enforcement of demographic targets unfairly discriminated against coloured and Indian people, particularly in provinces such as Gauteng, Jamie argued. It would be difficult for Indian professionals to find jobs in Gauteng because demographically they were a minority in that province, and anywhere else except KwaZulu-Natal. The DA's labour spokesperson, Michael Bagraim, on Monday told a media briefing ahead of the court hearing that the regulations gazetted by Meth could see companies let staff of a particular demographic go to comply with the prescripts of the new Act and to avoid steep fines. Therefore, he said, the Act risked worsening employment, which is just below 32%. Bagraim and DA federal council chairperson Helen Zille said the DA believed affirmative action policies had already caused extensive harm to the economy over decades, because laws aimed at racial redress were exploited by the corrupt. Speaking to the Mail & Guardian , Nalana said it was not true that the minister would impose inflexible quotes, because companies would be given leeway if they were able to provide reasons why they could not comply. 'For instance, [a reason could be that] I couldn't get the number of people that we are looking for in the top five positions but I tried. 'It doesn't mean if you don't comply then that's it and you are now going to be fined and lose your contracts, which is the narrative that is being pushed — that this is going to be draconian and the minister is going to go there and say: 'You do this or you are out'.' Under the Act, companies' level of compliance would be checked every five years, he added. The department would then determine whether their targets should be revised up or down. 'The minister can set sectoral targets to say, these are the targets you must aim for over five years. We say he can do that because that is part of his job. He must make sure that affirmative action thrives and that barriers are destroyed so that people can rise in the organisation.' Nalana added that the law has for some time made provision for companies that did not meet affirmative action targets to be fined. He told the court that there was no risk of current employees being fired because they belong to a certain group. 'You have to come up with ways to say, maybe if somebody is retiring, you replace them, you get a new candidate who is black and that is why it is left to you on how you do this. The minister will not say 'Hire this one, fire this one'.' He said the ministry was not going to venture into a scenario raised by the DA of members of a particular demographic struggling to find work in a particular sector in a province. 'We are not going to argue about the examples the applicant raised about an Indian lady who wants to apply for a job in Gauteng but because the quotas as they call it have been exhausted that lady must now move to KZN.' Judgment has been reserved.
Eyewitness News
06-05-2025
- Politics
- Eyewitness News
DA argues Parly erred in processing of Employment Equity Amendment Act
CAPE TOWN - The Democratic Alliance (DA) has argued that Parliament erred in its processing of the Employment Equity Amendment Act that allows the minister to set racial targets for party told the North Gauteng High Court on Tuesday that the bill was incorrectly classified and should have included provincial input through the National Council of Provinces (NCOP). ALSO READ:- DA argues that employment targets set by labour minister could lead to employers firing employees who don't meet quotas - Zille on DA's employment equity court challenge: 'Unconstitutional, unfair' - Employment Equity Amendment Act will worsen unemployment, says DA's Zille The DA is challenging a specific section of the act that gives the minister the power to set targets across all sectors, which the party argued was akin to setting racial quotas because employers could be punished if they were not DA said that at the heart of its case were the rigid targets that could be imposed by a labour minister on all employers who employed more than 50 people. Advocate Ismail Jamie argued that these targets, which incidentally were published two weeks ago in preparation for the act to come into force, were unreasonable when provincial demographics were considered.
IOL News
06-05-2025
- Business
- IOL News
High Court reserves judgment in DA's battle against Employment Equity Amendment Act
The Pretoria High Court has reserved judgment on the DA's case against the Employment Equity Act. The Pretoria High Court has reserved judgment in the Democratic Alliance's (DA) challenge to the Employment Equity Amendment Act. A ruling will be delivered at a later date. The matter was heard on Tuesday, with the DA arguing that the recent amendments are unconstitutional and violate the principle of equality before the law. The government is opposing the application. Advocate Ismail Jamie SC, representing the DA, told the court that the previous version of the Employment Equity Act achieved an appropriate balance between transformation and fairness. He noted that it prohibited quotas, allowed for flexibility, and enabled employers to set targets based on their specific operational needs. Jamie contended that the introduction of demographic targets amounts to unfair discrimination, particularly against coloured and Indian communities in provinces such as the Western Cape and KwaZulu-Natal, where these groups comprise a significant share of the population. The DA is challenging Section 15A of the amended Act, which mandates the equitable representation of suitably qualified individuals from designated groups across all occupational levels. This section empowers the Minister of Employment and Labour, Nomakhosazana Meth, to set binding numerical targets for designated employers within specific sectors. Minister Meth, the Commission for Employment Equity, the Speaker of the National Assembly, and the Chairperson of the National Council of Provinces are all opposing the application. Advocate Fana Nalane SC, representing the Minister and Parliament, assured the court that the amendments would not negatively affect employment or the economy. He rejected the DA's assertion that the law promotes racial bias over merit. 'We say no, that is not correct. In the first place, it doesn't refer to quotas,' said Nalane. 'We will also argue that there is no violation of the principle, as the Act introduces a significant role for the minister.' Nalane maintained that the Act grants the minister the authority to implement numerical equity targets tailored to the specific needs of different sectors to promote transformation. The African National Congress (ANC) has also criticised the DA for challenging the legislation in court. IOL Politics
Straits Times
06-05-2025
- Business
- Straits Times
South Africa's DA party challenges new racial equity law in court
The Hillbrow Tower, an iconic tower used to identify the Johannesburg skyline, is seen as the sun rises, in Johannesburg, South Africa, June 20, 2019. REUTERS/Siphiwe Sibeko/File Photo JOHANNESBURG - South Africa's Democratic Alliance party went to court on Tuesday to challenge new employment equity legislation which sets out numerical targets for the number of non-white people that companies should employ. The pro-business DA, the second-biggest party in government, says the new law violates anti-discrimination clauses in the constitution and gives the state too much regulatory power. Its larger coalition partner, the African National Congress, says the DA is trying to "preserve the apartheid-era economic status quo" and thwart its efforts to correct racial imbalances in the workplace that are apartheid's legacy. Statistics show that South Africa's companies are still dominated by white people at the top, with Black employees mainly occupying lower-level roles. Unemployment is much higher among Black citizens. Lawyers for the two sides made their opening arguments on Tuesday at the North Gauteng High Court in Pretoria. "This case is about flexibility," said DA lawyer Ismail Jamie in court, adding that it is fine to set aspirational targets but not ones "so rigid that they constitute a quota", which he claimed the new ones do. Race remains a highly charged topic in South Africa three decades after the end of white minority rule. The DA's national leader is white and the party has a reputation for defending the interests of the white minority, which it denies. The Employment Equity Amendment Act, which took effect this year, updates a 1998 act that required employers to set diversity targets and report on their progress in meeting them. It is separate from an existing Black economic empowerment law which many critics say hasn't worked. That policy also sets targets for the number of Black people at management level, but firms can avoid it by earning points in other categories such as ownership or skills development. There is no penalty for non-compliance. TARGETS Under the new law, companies with more than 50 employees must meet sectoral targets for the number of non-white people, women and disabled people in skilled and senior roles, or justify their failure to do so. Firms that do not comply could lose government contracts and be fined. "If we continue the way that we are, we're never going to see the transformation that is required because people... will never get to top management," said Muriel Mushariwa, a law lecturer at the University of the Witwatersrand and an employment equity consultant. She added, however, that it could be difficult for companies to comply with the new equity law and the Black empowerment programme, whose targets are broken down into different categories and not aligned. The DA says it supports redress but sees job creation as the primary solution. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
06-05-2025
- Business
- Reuters
South Africa's DA party challenges new racial equity law in court
JOHANNESBURG, May 6 (Reuters) - South Africa's Democratic Alliance party went to court on Tuesday to challenge new employment equity legislation which sets out numerical targets for the number of non-white people that companies should employ. The pro-business DA, the second-biggest party in government, says the new law violates anti-discrimination clauses in the constitution and gives the state too much regulatory power. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. Its larger coalition partner, the African National Congress, says the DA is trying to "preserve the apartheid-era economic status quo" and thwart its efforts to correct racial imbalances in the workplace that are apartheid's legacy. Statistics show that South Africa's companies are still dominated by white people at the top, with Black employees mainly occupying lower-level roles. Unemployment is much higher among Black citizens. Lawyers for the two sides made their opening arguments on Tuesday at the North Gauteng High Court in Pretoria. "This case is about flexibility," said DA lawyer Ismail Jamie in court, adding that it is fine to set aspirational targets but not ones "so rigid that they constitute a quota", which he claimed the new ones do. Race remains a highly charged topic in South Africa three decades after the end of white minority rule. The DA's national leader is white and the party has a reputation for defending the interests of the white minority, which it denies. The Employment Equity Amendment Act, which took effect this year, updates a 1998 act that required employers to set diversity targets and report on their progress in meeting them. It is separate from an existing Black economic empowerment law which many critics say hasn't worked. That policy also sets targets for the number of Black people at management level, but firms can avoid it by earning points in other categories such as ownership or skills development. There is no penalty for non-compliance. TARGETS Under the new law, companies with more than 50 employees must meet sectoral targets for the number of non-white people, women and disabled people in skilled and senior roles, or justify their failure to do so. Firms that do not comply could lose government contracts and be fined. "If we continue the way that we are, we're never going to see the transformation that is required because people... will never get to top management," said Muriel Mushariwa, a law lecturer at the University of the Witwatersrand and an employment equity consultant. She added, however, that it could be difficult for companies to comply with the new equity law and the Black empowerment programme, whose targets are broken down into different categories and not aligned. The DA says it supports redress but sees job creation as the primary solution.
