MPs raise concern over slow transformation in top management across sectors
The Portfolio Committee on Employment and Labour has raised alarm over the slow pace of transformation in top management across all sectors, saying the latest Employment Equity (EE) report confirms that voluntary compliance with transformation laws has failed.
The committee was recently briefed on the Department of Employment and Labour’s 2024 progress report, which analysed 29 269 quality EE reports, covering a total workforce of 7.7 million employees.
According to the committee, the report reveals stark disparities in transformation at the top. Nationally, whites continue to dominate top management positions, making up 61.1%. Africans follow at 18%, Indians at 11.9%, Coloureds at 6.2%, and foreign nationals at 2.8%.
“Voluntary compliance with employment equity provisions has not worked,” said committee chairperson Boyce Maneli. “The report vindicates the committee’s long-held view. However, we are comforted that section 15A of the Employment Equity Amendment Act 4 of 2022 seeks to enforce compliance in line with the Constitution and international conventions.”
The figures are particularly stark in the Western Cape, Eastern Cape, and Free State, where the proportion of whites in top management positions is 56%, 54%, and 54% respectively.
Maneli also emphasised the need to review the employment of foreign nationals. “With the highest number of unemployment, jobs at semi-skilled and unskilled levels must be given to South Africans, especially those who are registered on the unemployment database of the department,” he said. “Where foreign nationals are employed in terms of scarce skills, a skills transfer plan must be demonstrated.”
He said the committee would engage the Portfolio Committees on Home Affairs and Trade, Industry and Competition in a joint meeting to further address this issue.
The reaffirmation of the need for enforcement comes amid growing opposition to the Employment Equity Amendment Act. Last month, the National Employers’ Association of South Africa (NEASA) and Sakeliga filed a legal challenge against the Act and its regulations. They argued that the numerical sector targets amount to unconstitutional racial quotas and pose a threat to business autonomy.
The Department of Employment and Labour has since defended its processes, saying it has followed all necessary consultations and that every citizen has the right to challenge the law in court.