Companies must comply with equity requirements for government’s business

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Another measure contemplated to quicken the equity transformation in the workplace is to set employment equity targets

Frustrated by the slow pace of transformation in the workplace, the government says it will invoke a section in labour legislation that will make it compulsory for companies to have a compliance certificate to do business with it.

for each economic sector, with the risk of prosecution for the failure to meet the targets for no justifiable reason. These targets will replace the system of self-regulation Nxesi says has not worked. He said there is a need to increase the risk of non-compliance so companies are aware there would be consequences.the just-released Commission for Employment Equity report for 2018, which showed that the pace of transformation in the workplace is very slow.

Nxesi said on the handover of the employment equity report that there had been little transformation in the workplace — especially in the middle and upper ranks — since the adoption of the Employment Equity Act about 20 years ago. African and Coloured employees continued to be under-represented at these levels. “This cannot continue,” the minister stressed, noting that the slow pace of transformation raised questions of whether liberation has, in fact, been achieved.

The commission draws its information from reports from companies, which numbers have risen from 27,163 in 2017 to 27,485 in 2018.

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