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A B-BBEE Verification is based on a sampling of evidence and an element of risk. In other words, the process of analysing less than 100% of the evidence supplied. The procedure provides a Verification Analyst with a reasonable basis on which to conclude that all evidence provided is true and accurate. However, posing a challenge is a Learnership claim where the Learner is no longer employed. If that particular Learner is chosen as part of the sample, the B-BBEE Rating Agency will need to interview them for an organisation to claim its points. As per Clause 18.3.1.3 (e), the SANAS R47-03 document states the following: " (e) As part of the Verification process, the Verification personnel shall interview a sufficient number of black persons at all levels of the Measured Entity to provide assurance that the information gathered is sound. For the avoidance of doubt, interviews shall be conducted for the Skills Development element. This does not exclude the sampling of white persons or others who do not meet the definition of 'Black'." Therefore, an organisation must ensure that it has up-to-date contact details of Learners no longer employed or other pieces of corroborating evidence. B-BBEE Verification Support Services are available to assist Members to prepare for B-BBEE a Verification.

The liquidity of an Enterprise Development Beneficiary matters. A long-term Enterprise & Supplier Development Strategy more often than not incorporates future Bonus Points for elevating a Beneficiary from Enterprise Development status to that of Supplier Development. However, core to successfully claiming these points is that the Enterprise Development Beneficiary remains in business. In other words, claims only qualify if an Enterprise Development Beneficiary’s business is liquid and actively trading. Therefore, organisations must put measures in place to track the performance of their Beneficiaries. Enterprise & Supplier Development Services are available to assist Members with Enterprise & Supplier Development strategies.

Those driving Preferential Procurement Strategies must bear the following in mind when an EME, QSE with more than 51% ‘Black’ Ownership or a Start-up Entity opts to tender outside their financial threshold. EMEs tendering for contracts of R10m and above must be verified using the QSE Scorecard; QSEs tendering for contracts of R50m and above must be verified using the Large Enterprise Scorecard; and Start-ups that qualify as EMEs that want to tender for contracts of R10m and above must be verified using the QSE Scorecard. Certificate Collection Services are available to clarify the validity of any B-BBEE Credentials.

Sandile July & Nonkosazana Nkosi | 5 June 2023 Dismissal for the purpose of meeting the regulations’ numerical goals would violate the Labour Relations Act. The publication of the employment equity (EE) regulations last month has caused much controversy. While a vibrant contestation of ideas is the lifeblood of a healthy constitutional democracy, public discourse must always adhere to the factual and legal reality that informs it. As the Constitutional Court so eloquently put it in SA Police Service v Solidarity obo Barnard, the objects of EE are to “redress the effects of past discrimination to achieve a diverse workforce, representative” of the SA populace. These objectives are enveloped in and should promote the equally important ideal that “beneficiaries of affirmative action must be equal to the task at hand” and “efficacy and competence” should not be sacrificed at the altar of “remedial employment”. These ideals are the cornerstone of our EE regime and serve as a guiding light as we navigate the seas of economic and social transformation in the workplace. Alarm has been sounded that employers may be compelled to dismiss employees or reduce their workforce by targeting non-designated people to meet the numerical targets. Considerable unease exists regarding the potential enforcement and implementation of numerical targets in an exclusionary manner that unjustly marginalises individuals outside the designated groups. This raises the question of whether numerical targets are a threat to our labour and employment regime. The answer is no. Regardless of the perspective from which you approach the interpretation of the EE regulations, it is highly unlikely to reach the conclusion that the regulations permit dismissals. Dismissal for the purposes of meeting the numerical targets would be in violation of the Labour Relations Act. Lawful dismissals still have to meet the traditional misconduct, incapacity and operational requirement parameters. As the labour court intimated in Robinson & others v PWC, “affirmative action is not and never has been legitimate ground for retrenchment”. Rigid enforcement Applying and enforcing the targets as a threshold rather than a benchmark, leading to the systematic exclusion of individuals outside the designated groups, would also be unlawful. Our intentional and strategic approach should aim to work towards these targets as goals, rather than rigid thresholds that result in exclusion. These concerns may reasonably materialise through the rigid enforcement and implementation of the numerical targets, which disregards the rights of individuals outside the designated groups to dignity, fair labour practices and freedom of trade, occupation and profession. However, as things stand the numerical targets are in the form of percentages categorised in terms of population groups and gender, applicable over a five-year period for 18 identified economic sectors. They are divided between national and provincial targets for the economically active populations. Mainly, the intention is to roll out the targets at top management, senior management, professionally qualified and skilled occupational levels, including reforms for employees with disabilities. Employers are also required to apply their chosen economically active population (either national or provincial) to semi-skilled and unskilled occupational levels. Again, the devil is in the detail of how these percentages are applied by employers and enforced by the department of employment & labour. As the Constitutional Court noted in Barnard, the distinction between numerical targets and quotas “lies in the flexibility of the standard”. It is presumptuous to label the introduction of percentages as quotas or to assume that they will be rigidly applied and enforced. Make submissions There is an intention to promote and uphold flexibility. For instance, designated employers have the option to comply either with national or provincial targets. They therefore have to think strategically given the areas in which they operate and consider which targets will give them the most flexibility. It may also be crucial to make submissions on whether the proposed percentages offer adequate flexibility, whether at national or provincial level. The department should provide a comprehensive explanation for the methodology used to determine the percentages. This is particularly significant given that certain categories of population and gender groups have been consistently allocated a 0% representation across multiple sectors. Employers may present reasonable grounds for noncompliance with the targets. We believe the justifications for noncompliance present employers with an opportunity to craft EE plans that progressively implement the targets over the five-year period based on availability of qualifications, skills and expertise or financial feasibility. It may be essential to incorporate a provision that expressly permits progressive implementation. Public comments must be submitted within 30 days of the date of publication of the EE regulations. When engaging with the numerical targets one must consider whether the targets strike the critical balance between promoting representativeness and retaining meaningful flexibility. • July is director and head of employment, and Nkosi senior associate, at Werksmans Attorneys. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-06-05-sandile-july-and-nonkosazana-nkosi-jobs-unlikely-to-be-lost-when-applying-employment-equity-targets/

Ravi Naidoo | 7 June 2023 OPINION: Maybe we all need to focus less on lamenting about unemployment and instead on what we can do to create employment. We need to spend less time complaining and more time taking decisive action. Youth Day 2023 needs to be a day of introspection and not a celebration. We should use the day to take stock of how much more we need to do to create a better future for our youth. Truth be told, the achievements over almost three decades of democracy have been severely underwhelming. Yet, paradoxically, we remain on the cusp of many breakthroughs that can dramatically boost employment. We all know by now that South Africa’s unemployment rate for those under 35 years old (how we define youth in this country) is a staggering 57%. In actual numbers, 4.8 million young people are looking for jobs, and a further 2.4 million have lost hope (the so-called ‘discouraged work seekers’ that perversely then get dropped out of the StatsSA official unemployment figures). We also know what is causing unemployment. Unemployment is primarily caused by the lack of economic growth – and South Africa has had little of that for the last 10 years. With no expanding local markets, businesses do less hiring. But even if companies want to hire, there is a skills deficit, stemming from four out of every five children in primary school being unable to read for meaning. The failure of our education system to educate and our economic policies to grow the economy has caused dangerous levels of joblessness that now threaten social stability. Fortunately, neither of these are terribly difficult problems to solve if we had the will to do so. The South African economy is large and remains surprisingly resilient, despite global challenges and self-inflicted injuries. It was interesting to see that even under very adverse conditions, it created 258 000 jobs in the three months to March 2023. With the right policy choices, we can quickly accelerate economic growth and employment. Sure, load shedding has no quick fix (minimum two years), though, even there, we can collectively rise from the ashes and emerge as a leading global exporter in renewable technologies and ‘green jobs’. More than that, South Africans are resilient. I notice people are going about their business with a grim determination and wartime humour. At the Youth Employment Service (YES), we find thousands of youth in our programmes, most from the country’s poorest households, remain positive and determined to make the most of their chances. In fact, maybe we all need to focus less on lamenting about unemployment and instead on what we can do to create employment. We need to spend less time complaining and more time taking decisive action. Funded 100% through the private sector, YES last year provided stipend salaries to 32 500 youth. Since 2019, as one contribution to youth employment, YES has created 112 334 youth jobs (paying R6 billion in salaries), and 75% of these youth went to work in more than 1 400 private sector companies. This is the largest jobs programme in the country that is fully private sector funded. Unlike public works, our focus is to enable talented youth from disadvantaged households to, on and themselves, become the game-changers and job creators that South Africa needs. For example, former YES Youth, Mawanda Faniso, took part in the first YES Drones Academy programme at the Genesis Hub in Saldanha in 2021. He left the academy with a remote pilot’s licence accredited by the Civil Aviation Authority, which allows him to fly drones, as well as a repair and maintenance technician licence, which allows him to fix and work on drones. Today, he works full-time as a drone pilot. In the YES drones programme, the largest in the country, almost a thousand youth pilots have qualified or are in the pipeline to become pilots or even drone company entrepreneurs. They will play a catalytic role in many sectors. Thousands of YES Youth are being placed in positions like data capturers, business process outsourcing roles, cyber security agents, digital artisans, drone pilots, content creators and software developers. Many of these youth will become professionals in these future-facing sectors and help South Africa emerge as a leading nation in an age of technology. Critical is the need to support and expand the informal economy and small businesses. While township economies are largely informal, they’re also far bigger than we realise. Starting a micro-business can be the first step you need to get into the mainstream economy. At YES, we have found that 15% of youth in our work programmes have small businesses or “side hustles” to supplement their income and pursue future careers. This is great news and shows that many youth are entrepreneurial. If we cut red tape and offer more support, there could be an explosion of jobs in small businesses. Together, South Africa is more powerful than it thinks it is and can achieve much more than it has until now. * Ravi Naidoo is the CEO of the Youth Employment Service (YES). ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/opinion/right-policy-choices-will-accelerate-growth-employment-31cd2ed8-c16b-4719-8f72-44eb1f6da96d

Ronnie Siphika | 4 June 2023 There is no single large scale body that represents both industry and clients across all types. We are going nowhere fast. The government is disorganised, and the SA construction industry and the clients that rely on it are at a critical juncture. Perhaps right now could be the time to review the seriousness of the outlook. The same deep-seated problems have existed for many years and are well known and rehearsed by most industry associations, yet despite that there appears to be a collective reluctance or inability to address these issues and set a course for improvement. One of the mandates of the department of public works and infrastructure is to provide competent leadership to the SA construction and property industries while ensuring their transformation and regulation. While distinct but related to the role of the government in general, the highly fragmented nature of leadership and decision-making in the industry has become a serious problem that requires attention. There is no single large scale body that represents both industry and clients — public and private — across all types. While there have been attempts to form such organisations, such as the SA Property Owners Association (Sapoa), Construction Alliance SA (Casa) or Black Business Council in the Built Environment (BBCBE), their focus almost always becomes narrow and more focused on the commercial interests of their constituency, be it employers, contractors, consultants, suppliers or commercial property owners. While Casa might be an exception as attempts have been made to align divergent interests, there has essentially been a lack of joined-up strategic thinking that brings together government, clients, major contractors, specialist contractors (across both building and engineering) and relevant professional bodies, including regulars such as the Construction Industry Development Board. A more recent development has been how the small and emerging businesses with the industry have organised themselves as business forums in local communities. Even the phenomenon of the “construction mafia” has emerged in SA to describe groups of people, ostensibly business forums comprised of emerging contractors from local communities, who demand a share of construction contracts by employing illegal and disruptive methods. This issue has become quite serious in recent years and has had a significant effect on the construction industry. The focus to date has been on leveraging the government’s role as a client through adoption of best practice and attempting to influence wider and priority policy adoption such as BBBEE, preferential procurement, local content requirements and professionalisation. However, the government’s role as a client is itself fragmented, with different implementing agents at national, provincial and local municipal level across a range of economic and social infrastructure, including transport, hospitals, schools and housing. Despite a large infrastructure led pipeline through the new created Infrastructure SA (ISA), which was led by the current electricity minister Kgosientsho Ramokgopa, about 75% of all output is not in government’s direct control and there is not enough co-ordinated engagement with private clients of the industry, including real-estate developers, investors, developing occupiers and to a large extent housebuilders. This is a structural issue that limits the ability for overall strategic change to be achieved other than in pockets, often in isolation from other parts of the construction sector. Unless the whole spectrum of private and public clients are involved in effecting change, it is suggested that the industry will not be able to transform itself in response to client demand changing. Directly linked with the issues of leadership and fragmentation discussed above is the nature of the commercial returns model seen across industry. The high level of insolvencies and financial failures of major JSE listed firms in the industry over the past 15 years since the 2010 World Cup continue to indicate that blended margins, especially when viewed on a long-term trended basis across economic cycles, are thin relative to many other industries, such as financial services, agriculture and automotive. Low profitability is a long-standing problem for the industry and is not unique to SA. The industry as a whole is underachieving and invests too little in capital, research and development and training. In the coming years the financial position of major firms remains uncertain despite the industry emerging from recession. During periods of growth such as the build programme towards the 2010 World Cup, some parts of the industry’s supply chain — such as materials, plant and equipment suppliers — saw a substantial increase in profit margins. This is typically because there's a high demand for their specific goods or specialised type of services that required the expertise of major contractors and not enough supply to meet it. However, this temporary profit boost doesn't change the longer-term profit structure, especially when you consider times when capacity isn't fully used and the risk of financial loss. Such losses can occur due to fluctuating market prices for their input materials or due to failures in delivering their products or services after setting a price. The use of competitive tendering is widespread throughout the industry and there appears to be low usage of more collaborative and integrated design, procurement and construction delivery models promoted elsewhere. Clients tend to fixate on lowest initial tendered price, and this is often perpetuated by consulting firms, which in a traditional procurement model are implicitly employed (at least partly) to manage a fixed and adversarial transactional interface between clients and industry. The least cost-based procurement model often hinders the ability to focus on value, outcomes or performance if appropriate weightings are not made. Adoption of more collaborative or incentivised commercial engagement models appears could be more suited to clients such as Transnet, Eskom and Sanral that have either large-scale infrastructure projects or a delivery programme where longer-term outcomes and benefits are driven by harnessing process improvement and distributing the benefits of large-scale demand that can be committed to with a reasonable degree of certainty. The reality is that many clients, especially with government departments, municipalities and smaller state-owned entities that are simply conditioned to operating in an adversarial and hostile way with industry, do not see a case to move to more collaborative and integrated approaches for fear that a lack of commercial tension will affect their own financial outcomes. • Siphika is CEO of the Construction Management Foundation. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-06-04-ronnie-siphika-sas-construction-industry-faces-leadership-and-profitability-crisis/

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Adrienne Bredeveldt | 3 June 2023 Sun International has opened applications for its 2023 Enterprise and Supplier Development Programme (E&SD). The initiative seeks to support and uplift local start-up businesses by providing them with opportunities to elevate their ventures. Through the programme, selected small, medium and micro enterprises (SMMEs) will not only receive valuable mentorship and knowledge but also gain access to financial assistance in the form of loans and grants. These financial resources can be repaid by the applicants over a mutually agreed-upon period, further enabling their growth and development. Sun International’s E&SD Programme contributes by: Supporting the introduction and development of black-owned Small Medium Micro Enterprise (SMME) businesses Offering business opportunities to qualifying E&SD beneficiaries where possible Focusing on the sustainability of the beneficiaries within the programme Supporting the objective of the National Development Plan (NDP) 2030 Supporting strategic category management plans Using E&SD funds to achieve meaningful value within the communities With a track record dating back to 2014, the programme has extended its support to more than 30 community businesses, many of whom have subsequently become registered suppliers. Successful candidates commit to a comprehensive three-year programme that provides mentorship and training on essential topics such as financial management, business governance, human resources skills, accounting and specialised instruction tailored to meet the unique needs of each individual business. To be eligible for consideration, applicants must meet specific criteria, which include having a registered business that is 51% empowered, demonstrating relevant business acumen within their respective field and maintaining a minimum operational tenure of at least two years. The applications for the 2023 Enterprise and Supplier Development programme close on 8 June. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.capetownetc.com/sustainability/sun-international-supports-local-start-ups-with-development-programme/

Alison | 1 June 2023 While exhibiting at EmpowaYouth Week at Orange Farm in May, CTU Training Solutions also participated in a roundtable on scarce skills and opportunities for youth in the banking and finance sector. CTU Training Solutions Head of Programme, Business and Project Management, Thomas Chimutunga, participated in the panel discussion that aimed to shed light on the skills most in demand in the banking and financial sector. All of the other panellists represented the banking and financial sectors. Skills sought in youth job applicants Chimutunga kicked off proceedings by announcing a R50 000 bursary at CTU Training Solutions for attendees at EmpowaYouth Week. He went on to say that some of the reasons for unemployment is a lack of synergy between the skills in demand by industry and those being studied by young people. “We need to look into what skills are in demand so that we can offer those skills to the youth. We’re constantly redesigning our curriculum to keep pace with industry demand, particularly around the fourth industrial revolution.” Brenda Kobola, Head of Talent Acquisition for the Consumer and High Net Worth Group at the Standard Bank Group, agreed: “The 4IR is definitely upon us, which means we’re looking for skills that we didn’t prioritise before. Young people have to bear this in mind when deciding what to study. “We need to balance core banking skills with the digital skills we need to deliver services to our clients. We still need bankers, people who can talk to clients, and skills like financial literacy, etc, but the emerging skills are digital skills such as engineering, software development, data analytics, robotics and automation.” Zanele Jafta, National Head of Digital Wealth Advisory Services at Nedbank Wealth Management SA, adds: “If we consider the skills we require now, it’s all about digital. The introduction of digital has brought with it some negatives that necessitate the need for cyber security. In order to protect the bank and its clients against cyber crime, we require skills in that space.” Ayn Brown, Chief People Officer at Tymebank, agrees: “Digital and 4IR are here to stay. Our phones and computers rule our lives, making things quicker and faster, which obviously impacts the ability to create jobs. With the advent of AI and digital and the way they’ve taken over our lives, it does tend to exclude the human element – yet the human element has never been more important. It’s not going to be AI that takes your job, it’s going to be people who know how to use AI and computers. “In such a fast-moving environment, I’d encourage youth to do short courses to keep pace. Curiosity and a love of learning are key qualities in a potential hire.” Aluwani Chokoe, Deputy Director at the Gauteng Department of Infrastructure Development and Human Settlements, contributes: “We live in the world’s most economically unequal society in the world. We have people who don’t have access to phones or the internet, who can’t use a computer. For this reason, we need to prioritise basic computer skills delivered via home language computer training courses.” Delivering skills to the youth Chokoe says there are several provincial and e-government initiatives that the youth can use to upskill themselves. “It’s important to note that we need to break down the language of computer skills. We can’t talk about AI when people can’t switch on a computer. The youth can also approach the SITAs, which provide a stipend when they train people.” Tyme Bank has plans to start an academy, according to Brown. “We enable youth employment by employing local people to man our kiosks in retail outlets. They acquire sales skills, soft skills and have the ability to earn while going through their learnerships.” Jafta refers to the YES programme that is run by all banks. “The youth employment services programme is available to all employers. They take in graduates between the ages of 18 and 29 for a 12-month period, place them in different roles and do job rotation over the course of the year. This gives the individual an opportunity to find out what he or she is good at. After the year is up, they can apply to be permanently employed by the business. “We also do graduate programmes that run for 24 months that also include job rotation. Youth who are offered these opportunities should grab them with both hands, be diligent, work hard and have a positive attitude so they can be absorbed into a permanent position.” Kobola says there are plenty of opportunities for the youth to gain the prerequisite skills. “We all offer similar programmes for employed and unemployed youth. In a year, we hire about 800 graduates across three different programmes. Our graduate programme graduates with university degrees or national diplomas and offers a rotational approach to work experience, with the possibility of being hired permanently. We also offer internships aimed at filling skill gaps in the bank, which can also turn into full-time employment. Then we offer learnerships, where the individual gets work experience and an NQF-aligned qualification.” She encourages the youth to apply for all of these programmes and steers them towards the bank’s PluggedIn tool, which helps individuals to assess their strengths and interests while creating a CV. Navigating entry barriers and gaining practical experience Chimutunga says as a training solutions provider, it’s important to make sure that it offers a final product that’s adaptable to the current business environment. “We need to look at the curriculum, the demands of the 4IR and ensure students have practical components and can actually do the work required by their course.” Kobola points out that at the beginning of any recruitment process, all candidates are equal. However, as the process progresses, it funnels candidates as it starts differentiating on experience, skills and how the candidate shows up at different stages in the process. She advises the youth: “Don’t give up, keep applying and trying.” Jafta agrees that candidates need to differentiate themselves. “Take the time to draft a proper CV, prepare for interviews – there are standard questions that you can practise ahead of time.” Brown says the youth need to consider how they can stand apart from the crowd. “Never stop volunteering, get involved in community initiatives, don’t stop being curious and when the opportunity comes, show up and differentiate yourself because of your interests. Look at what the role you applied for entails, what the organisation is about, think about what you can bring to the business before you go into that interview.” Chokoe finishes off the discussion by saying that young people starting out on their education need to consider what this country needs, what they can do to leave this world better than they found it. She’s a strong advocate of volunteer work as a gateway to finding employment. “Find a CV app on your phone and download it and use it. There are opportunities out there to gain skills, you need to seek them out and make the most of opportunities that arise.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/PmxVEMKEQe4vQY85

Khanyisa Phika | 3 June 2023 (John McCann/M&G) The outrage of some South Africans after President Ramaphosa’s endorsement of passing the Employment Equity Amendment Bill of 2020 into law on 12 April 2023 is misguided. The new measures aim to further promote diversity and equality in the workplace, particularly for designated groups such as Africans, coloureds, Indians, white females and people living with disabilities. As employment inequality and discrimination persist in South Africa, the bill seeks to advance transformation and promote equal opportunities for all genders by setting equity targets for economic sectors and geographical regions. South Africa has the highest level of unemployment among its peers, with almost four out of five people without work, even though they are actively looking for employment and are available to work, according to Statistics South Africa. These higher levels of unemployment mostly affect women, in particular black and people with lower levels of education. In South Africa, women remain vulnerable in the labour market, relative to their male counterparts, with almost half of working-age women finding it tougher to obtain work than men. In fact, women are more likely to remain unemployed for longer periods which further distorts their ability to be employed in the future. This means that the productive potential of women in the labour market remains underutilised. Of course, the effects of long-term unemployment are the byproduct of historical structural deficiencies in the labour market driven by the mismatch between supply and demand. The mismatch is further complicated by the skills required for specific jobs in different sectors, levels of education and the willingness of companies to train and develop the available labour force with the necessary skills. While transformation in the labour market through self-regulation by employers in the private sector has been positive, it has moved at a snail’s pace. Women remain marginalised in the workplace. The Employment Equity Commission identified that small businesses face a burden when it comes to meeting employment equity goals and targets as set by the department of labour. Although this is a positive gain for small business owners with less than 50 employees, the challenge on inclusion and diversity still remains. The sector-specific and regional employment equity numerical targets should encourage businesses to realise their economic active population targets more comprehensively. Furthermore, the issuing of annual employment equity compliance certificates should act as an incentive for employers to pay workers equitably and increase their chance to do business with the state, as per Section 53 of the Employment Equity Act. To ensure successful implementation of what the Bill requires over a five-year period, the department of labour is now compelled to assign labour inspectors to regularly police workplaces and to issue employers with compliance orders, if necessary. Whether this will yield the desired results remains to be seen. More than 60% of companies in South Africa are owned by white males, despite the fact that they account for a small percentage of the overall economically active population. There needs to be a drive to give designated people more access to opportunities. The recent changes to the Employment Equity Amendment Bill in the sectoral codes promise to improve the participation and representation of women in male-dominated industries and areas that typically have gender bias, such as construction and finance. The adoption of these stringent regulations has the potential to increase much-needed representation of women in decision-making positions across all sectors, bridge the wage parity gap and provide females with more opportunities to advance their careers. Overall, the benefits of promoting women in the workplace far outweigh the potential challenges that employers might face in ensuring compliance with the Employment Equity Amendment Bill. Khanyisa Phika is a macro-economist. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/thoughtleader/opinion/2023-06-03-transforming-the-labour-market-fast-is-vital-for-sas-economic-growth/

Herman Mashaba | 2 June 2023 ActionSA helps former security guards investigate alleged B-BBEE fronting practices at G4S. ActionSA has assisted over 200 former security guards to get the South African Police Service (SAPS) to investigate alleged B-BBEE fronting practices at G4S after their previous attempts have failed. As a party committed to social justice, ActionSA believes that the legitimate concerns of former security guards that G4S possibly falsified its B-BBEE status by making use of a staff share trust should urgently be investigated and officials should be held accountable. G4S has been making headlines for being the security company in charge of the prison where Thabo Bester recently escaped. No company should get away with breaking the law in South Africa for corporate gain. Alongside some of the security guards and ActionSA activists, I visited the SAPS Headquarters in Tshwane on this morning to request that the police investigate the matter and give the support to the former security guards they deserve. The security guards alleged that after they raised concerns about possibly B-BBEE fronting by G4S, they were threatened and dismissed by the company. ActionSA stands by the rule of law and will therefore continue to support the former security guards to ensure that the truth is revealed and that those guilty of breaking the law are held to account. ActionSA is deeply disappointed by the B-BEEE Commission’s failure to provide assistance to these employees when it is their legal mandate to do so. We are hopeful that the truth will eventually come out when this matter is ventilated in our courts. We are speaking to our legal team to determine what other steps can be taken to assist the former security guards in this regard. No country can create jobs and improve the lives of its people when lawlessness is allowed to flourish, and that is why ActionSA believes private companies should also be forced to operate within the confines of the law. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/alleged-bbbee-fronting-practices-at-g4s-investigat

Staff Writer | 2 June 2023 Some businesses in South Africa are coming together to discuss and workshop a way to navigate the country’s new black economic empowerment laws and proposed racial targets for various sectors. Trade union Solidarity – vehemently opposed to the new laws and is exploring legal avenues to challenge them – is spearheading an initiative to draw as many South African businesses together as possible to challenge the laws on the ground. The union this week sent out a letter to over 2,000 businesses in the country, calling for “positive protest”. Some businesses have already heeded the call and are joining a workshop where they will discuss their opposition to the laws and try to coordinate actions against them. “We expect that this workshop will be the start of a massive protest across a wide front against the government’s race law and its regulations. It will have a significant influence on the South African race discourse,” the union said. Business groups and opposition parties are pushing back hard against the new Employment Equity Amendment Act, which was recently assented to by President Cyril Ramaphosa. While not yet in effect – the laws are expected to be promulgated in September – the Department of Employment and Labour has already gazetted draft sectoral employment equity targets for designated businesses in South Africa for public comment. Under the new Act, the employment minister is empowered to set sector-specific numerical targets for the racial and gender makeup of designated businesses, which must be achieved over five years. The targets are expressed as a percentage of the population, either nationally or provincially, and it is up to designated businesses to choose one or the other in executing their transformation plans, the department said. Failure to comply with the laws can result in penalties, such as fines. Designated businesses are all businesses in South Africa that employ more than 50 people. The laws apply to all designated businesses – even those that have no intention of doing business with the state. Companies seeking to do business with the government will also need a Certificate of Compliance from the department. Furthermore, the EE Act requires employers to submit employment equity plans and annual reports on their progress in meeting the targets. The backlash to the new laws was immediate, with legal experts poking holes in the gazetted targets, while also warning that, if implemented in a rigid manner, businesses could end up enforcing quotas, which are unconstitutional and unlawful. The government has repeatedly stressed that the sectoral targets are flexible and need to be reached over a long period of time (five years), so they do not amount to quotas. However, Solidarity has argued that the stark reality of jobs and work in South Africa means they cannot be implemented in any other way. According to the Solidarity Research Institute (SRI), there are only two ways that the sectoral targets can be reached – either the economy has to grow so more jobs can be created to absorb the requisite people to hit the targets, or – more likely – the current composition of workers needs to be replaced to represent the targeted spread. “Using the minister’s published targets as well as the Commission for Employment Equity’s annual report as source data, (the SRI) indicates that South Africa’s economy must grow at a national GDP of approximately 12.3% per year, sustained over the next five years to meet the minister’s targets,” the union said. “Given the current economic conditions in South Africa, these levels of growth are impossible and unattainable.” This leaves only the second option, it said – people would have to vacate their positions in whatever way. “Calculations made by the SRI, again using the minister’s published targets as well as the Commission for Employment Equity’s annual report as source data, indicate that a reduction of approximately 66% of white and Indian employees, as well as a reduction of approximately 25% of coloured employees at the top four job levels will be required to meet the minister’s targets. “Basically, two out of three white and Indian employees, and one out of four coloured employees may no longer be represented at the top four job levels to meet the minister’s targets,” it said. The Democratic Alliance – another big critic of the laws – said that over 600,000 white, coloured and Indian South Africans stand to lose their jobs if the targets are pushed onto businesses. The party has also characterised the targets as racial quotas. In rallying businesses to protest the new laws and proposed targets, Solidarity echoed this sentiment. “Providing more job opportunities for black people is a legitimate goal – which is true for all people – but this Act is going about it in the wrong way. It does not create jobs; it simply redistributes it and will lead to poorer service delivery and fewer job opportunities,” it said. “It gives draconian powers to the Minister of Employment and Labour to dictate to businesses who they may employ. Now South African society can be planned and manipulated from a central point according to race. It deprives employers of the right to do business, and it deprives employees of the right to be employed.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/693457/businesses-readying-for-a-big-fight-over-new-bee-laws-in-south-africa/