SUBMISSION OF THE BLACK MANAGEMENT FORUM (BMF) TO THE PORTFOLIO COMMITTEE ON LABOUR, 13-14 MAY 2003
1. INTRODUCTION
The BMF has been invited to participate in parliamentary hearings conducted by the Portfolio Committee on Labour on the 13th and 14th of May 2003. The areas of focus will include discrimination at the workplace, gender, disability and HIV/AIDS, amongst others. The review will outline the main features of the BMF Affirmative Action Blueprint (the targets) and key components of the Employment Equity (EE) Act, trends in EE over the last two years and a brief statement on the Commission for Employment Equity (CEE). Finally, the review will outline challenges faced by EE in South Africa as perceived by the BMF.
2. MAIN FEATURES OF THE AA BLUEPRINT
In the early 1990’s South Africa was at the beginning phase of the political negotiations that would lay the basis for creating a peaceful, non-racial and non-sexist democratic society. One of the key questions that South Africans grappled with and successfully resolved was the creation of a legal dispensation that was underpinned by a Bill of Rights and a Constitution.
The principle of having Affirmative Action was one of the most fundamental questions that had been resolved. What was not clear was how to implemented any such programmes within a vision of a non-racial and non-sexist society. The Black Management Forum Blueprint on Affirmative Action was a guideline on how South Africa in general and business in specific should define and implement affirmative action programmes in the economy.
The Black Management Forum issued these guidelines for South African businesses to implement within seven years (1993-2000). The Affirmative Blueprint gave one of the clearest signals yet on how BMF intended to deal with contentious issues relating the future of business policies and practices in South Africa.
AA targets as per the ‘Basotho-hat’ model entailed:
Eighty percent (80%) of all trainees on any training should be Black.
Seventy (70%) of all supervisors (Paterson C band) should be Black
Fifty (50%) of junior mangers (this figure includes management trainees at this level, at Paterson D band) should be Black.
Forty (40%) of middle managers (Paterson Upper D band) should be Black.
Thirty (30%) of senior managers (Paterson E band) should be Black.
Twenty (20%) of executive directors (Paterson F band) should be Black.
Thirty (30%) of non-executive directors should be Black.
3. IMPORTANT COMPONENTS OF THE EE ACT
3.1 Prohibition of unfair discrimination
The Act states that every employer must take steps to promote equal opportunities in the workplace by eliminating unfair discrimination in any employment policy or practice. The Act prohibits any form of discrimination on the grounds of, amongst others race, gender, disability, religion, HIV status, political opinion, culture and language. Taking affirmative action measures to exclude any person on the basis of an inherent requirement of a job is consistent with the purpose of the Act. The Act prohibits any form of medical testing of employees including the testing for HIV unless;
The testing is justifiable in the light of medical facts, employment conditions, social policy, the fair distribution of employee benefits or the inherent conditions of the job;
Legislation permits or requires the testing.
3.2 Equity Plans
Affirmative action should be designed to ensure that suitably qualified individuals from designated groups have equal employment opportunities and are equitably represented in all occupational categories and levels in the workforce of a designated employer. The designated group being black people, women and people with disability. A designated employer must prepare and implement an employment equity plan, which will achieve reasonable progress in employment equity. The plan must state among other issues, affirmative action measures to be implemented. The employer needs also to prepare a subsequent plan before the end of the term of its current employment equity plan. Employers need to submit reports to the Director-General at designated times that the Department has set for different employer groups.
3.3 Process of Monitoring and Compliance
The monitoring of the implementation of the Employment Equity Acts rests on the shoulders of all parties concerned. Any employee or trade union representative may bring an alleged contravention of the Act to the attention of all stakeholders including labour inspectors, the Director-General and the Commission.
A labour inspector acting in terms of this act has authority to enter, question and inspect as provided in the Basic Conditions of Employment Act. The labour inspector may request and obtain a written undertaking from a designated employer within a specified period if he/she has reasonable grounds to believe that the employer has failed to comply with the Act or sections of the Act. The labour inspector may issue a compliance order to a designated employer if the employer has failed to give a written undertaking or failed to comply with a written undertaking.
4. STATE OF EMPLOYMENT EQUITY IN 2001-2003
4.1 Trends in 2001/02
Men held 87% of all top management positions in South Africa
African representation in top management stood at 6%, that for Coloureds at 3% and 4% for Indians
Senior management positions for whites was 82%, Africans 9%, Coloureds and Indians at 5% for each racial category respectively
Women (all colours) held 38% of the management (top and senior) and professional category in the labour market.
In the top management level, women held 13% of jobs
Women held 40% of all skilled jobs compared to 60% by men
Representation of employees with disabilities was less than 1.5% in top, senior and middle management levels
4.2 Trends in 2002/03
Men hold 88% of all top management positions in South Africa, compared to 12% for women
African representation in top management stands at 8%, that for Coloureds at 13% and 4% for Indians
Senior management positions for whites is 80%, Africans 10%, Coloureds and Indians at 5% for each racial category respectively
Women (all colours) hold 38% of the management (top and senior) and professional category in the labour market.
In the top management level, women hold 12% of jobs
Women hold 38% of all skilled jobs compared to 62% by men
Representation of employees with disabilities is less than 1.5% in top, senior and middle management levels
Comparing the two years, there’s no significance change in the profile of employment by race, gender and persons with disabilities. One may conclude that the status has remained the same in the last two years with no improvement in top and senior management profiles in the country.
5. COMMISSION FOR EMPLOYMENT EQUITY
The Commission was established in May 1999. The Commission’s term of operation is five years (1999-2004). Although some of the objectives of the Commission have somewhat evolved over the years since its inception, the following still remain at the core of what the Commission is still trying to achieve.
Regulation of the Employment Equity Act
Code of good practice on the Preparation, Implementation and Monitoring of Employment Equity Plans
Technical assistance guidelines to accompany the Code of Good Practice on Key Aspects of HIV/AIDS and Employment
Consideration for technical assistance guidelines to accompany the Code of Good Practice on Key Aspects of Disability in the Workplace
Codes of good practice on human resources policies and practices
Establishing criteria for making awards recognizing achievements of employers in furthering employment equity
6. VIEW OF THE BMF ON CHALLENGES FOR THE FUTURE
Based on the above assessment, BMF leaders and members have raised grave concerns about the pattern and implementation of employment equity.
6.1 On Monitoring and Compliance
(i) The monitoring mechanism has failed to meet its objectives:
Labour inspectors are not visible enough
There’s a lack of external verification of the companies’ claims in the reports
The Department of Labour seems not to have or lacks the willingness to build a capacity of monitoring the processes.
The actual monitoring is about numbers not about the actual development of individuals within the designated groups
(ii) There is a perception that the private sector is not taking the issue of employment equity seriously. There’s a view that some companies set targets without consulting employees or their representatives.
(iii) Government is seen to be too accommodating to the private sector and as such is not doing enough to make companies comply with the provision of the Act.
6.2 On the Commission for Employment Equity
It is alarming that the Commission has not met most of its objectives as outlined in section 5, above. There is weakness in the implementation of the Act; a critical factor that has been overlooked by the Commission. To say the least, the Commission has failed to deliver on its mandate.
6.3 Recommended Action Steps
The Departments of Labour should establish an action plan to assess progress on employment equity in companies throughout the year.
Take concrete steps (in terms of punishment) if the conditions set in the Act are violated.
The department should come up with a mechanism for monitoring the actual empowerment of individuals within the designated groups. The services of an independent agency should be employed for the actual verification and monitoring of progress in various companies.
Transformation, through equity, should be included as part of managers’ key performance areas. Few companies regard employment equity as part of their strategic objectives.
Heavy fines for not complying should be imposed to highlight the significance of EE in the workplace and these fines should be indexed to inflation.
The Commission for Employment Equity should be dissolved as it has failed to live up to its mandate. With employment equity being a key indicator of the black economic empowerment (BEE) scorecard, the role of the Commission has become irrelevant. The proposed BEE Advisory Council would serve the role of watchdog over BEE, including employment equity.
********************
REFERENCES
BMF Affirmative Action Blueprint (1993)
Employment Equity Act (1998)
CEE Report 2001/02
CEE Report 2002/03
Interviews with selected BMF members and human resource practitioners
CONTACT: Mxolisi Lindie
Director: Business and Policy Desk
BMF