Thembi Chagonda | Employment Equity Expert | Joint-CEO | Global Business Solutions | mail me |
The Department of Employment and Labour has officially launched the 23rd Annual Commission for Employment Equity (CEE) Report and the Public Register.
This year’s report, released on June 23, reveals a continued pattern of slow progress in achieving employment equity goals over the past two decades.
The representation of certain racial groups, particularly in top and senior management positions, remains disproportionate, highlighting the need for targeted interventions.
Key findings
Key findings from the report indicate that top management positions are still predominantly held by the white population at 62.9%, while Africans account for only 16.9% representation. Indians make up 11.2% of top management positions, followed by the coloured population at 6.2%.
Senior management reflects 50,1% whites, 26,1% Africans, 12,3% Indians and 8,2 coloured population. The gender breakdown shows a 62.8% representation of males compared to 37.2% of females.
In terms of professionally qualified roles, progress is somewhat better for both black individuals and females. Africans account for 48.4%, whites 30%, coloureds 9.9%, Indians 9.3%, and the remaining percentage is shared by foreign nationals. The gender breakdown in professionally qualified positions is 48.2% females and 50.8% males.
Skilled technical or junior Management has been the slowest transformation for Africans since 2001, when compared with current representation. African representation shares 65,3%, Whites 16,2, coloureds have 11,6% followed by Indians with 5,3% and foreign nationals at 1,7%. Overall representation for persons with disabilities is 1,2%.
Establishing national and regional sectoral targets
The release of this year’s report coincides with the announcement of the Employment Equity Act amendment bill, signed by President Cyril Ramaphosa on April 18, 2023.
The amendment bill grants the Minister of Employment and Labour the authority to establish national and regional sectoral targets in collaboration with the Commission for Employment Equity. These sectoral targets aim to expedite the diversification of employees across different races, gender, and disabled groups.
The main objectives of the Employment Equity (EE) amendments are as follows:
- Reducing the regulatory burden on small businesses (employing 1-49 employees) by exempting them from being classified as designated employers.
- Empowering the Minister to regulate sector-specific EE numerical targets to ensure equitable representation of suitably qualified individuals from designated groups.
- Enacting Section 53 of the EEA to make the EE Compliance Certificate a prerequisite for accessing state contracts and engaging in business with any organ of the state.
The criteria for obtaining an EE Compliance Certificate (Section 53) are as follows:
- Non-designated employers (1-49 employees) must comply with the National Minimum Wage (NMW) or have received an exemption from paying NMW within the previous 12 months. They must also have no CCMA Unfair Discrimination Award against them during the same period.
- Designated employers (50 or more employees) must submit Annual EE Reports (EEA2 & EEA4 forms), comply with their own Annual EE Targets towards the 5-year Sector EE Target, comply with the NMW or have received an exemption from paying NMW within the previous 12 months, and have no CCMA Unfair Discrimination Award against them during the same period.
Concerns
Concerns have been raised about the sectoral targets being perceived as quotas and the potential exclusion of certain racial groups from employment and promotions.
It is important to note that employers will have flexibility in setting targets in consultation with their EE Committees. Designated employers facing challenges in meeting sector targets per occupational level can provide justifiable reasons for non-compliance, of which there are seven acceptable grounds.
Sector EE targets serve as benchmarks, enabling designated employers to engage employees and self-regulate their annual EE targets towards achieving the 5-year sector EE target regulated by the Minister.
The justifiable reasons for failure to comply with the Annual EE targets include insufficient recruitment and promotion opportunities, a lack of qualified individuals from designated groups, CCMA or court orders, business transfers, mergers or acquisitions, and the impact of economic circumstances such as the COVID-19 pandemic and load shedding.
In conclusion
Employers are encouraged to establish an up-to-date workforce profile at the workplace level, select the appropriate Employment Equity Plan (EAP) that aligns with their organisation’s operations, choose the relevant sector with corresponding sector targets, and utilise the EAP and Sector Targets as benchmarks to identify under-representation and set annual numerical targets accordingly.
Employers whose current workforce profiles exceed the 5-Year Sector Targets should set annual targets to align with their respective EAPs.
It is important to note that the sectoral targets are not yet aligned with the demographic representation of the Economically Active Population for most sectors. It is likely that achieving the desired outcomes will take more than the initial five years of sector targets.
