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Thank you for attending the session we hope to see you again soon. for upcoming events follow this link https://www.bee.co.za/training

Thank you for attending the session we hope to see you again soon. for upcoming events follow this link https://www.bee.co.za/training

VAT is payable on all invoices, including those that support Socio-Economic Development initiatives. However, the VAT payment on an invoice must not form part of an organisation's Socio-Economic Development claim. The exclusion of VAT for SED claims reflects in point 5.1.7 of the 2008 Verification Manual published as Gazette # 31256. It states: “The Verification Agency should confirm that VAT is not included in amounts claimed where Socio-Economic Development Contributions may include VAT”. Socio-Economic Development Services are available to assist Members with insight Socio-Economic Development Contributions.

Paragraph 3.2.1 of statement 500 warrants that a Socio-Economic Development contribution must provide income-generating opportunities. Paragraph 3.2.3 mandates that 75% of the total contribution must benefit 'Black' People; otherwise, the claim will be pro-rated accordingly. For example: ABC Traders donates R100,000 to an NPO, of which 60% are ‘Black’ Beneficiaries. The Benefit Matrix allows 100% of a Grant Contribution. However, 100% of the Value of ABC Traders contribution only reaches 60% 'Black' Beneficiaries. The result is that ABC Traders can only claim R60,000 Socio-Economic Development Services are available to assist Members with insight Socio-Economic Development Contributions.

At the time of a B-BBEE Verification, many organisations fail to produce updated Sworn Affidavits from their suppliers that are EMEs and QSEs with Enhanced Recognition. During a B-BBEE Verification, a B-BBEE Rating Agency will generally consider: Any B-BBEE status that is valid within the Measurement Period or thereafter; Most recent valid B-BBEE Status; and A B-BBEE status that is valid for at least one day in the Measurement Period due to differing Financial Year Ends as well a customer and supplier not being measured at the same time. B-BBEE Credentials that have expired before the start of an organisation’s Financial Year End will not be accepted. Certificate Collection Services are available to clarify the validity of any B-BBEE Credentials on file.

Bizcommunity | 30 May 2023 Eight small and growing businesses (SGBs) in Waterfall City, Gauteng, have graduated from an enterprise development programme designed to equip them with the skills, training and personal development support they need to develop their enterprises into fully independent companies. The initiative is created and managed by Property Point and is a significant enterprise and supplier development programme within the property and construction industries. The latest SME cohort to undertake the programme were introduced to it by property group and developers of Waterfall City, Attacq Limited. Over the course of the two-year Property Point programme, which started in 2020, the eight participating SMEs from Waterfall City generated a combined revenue of over R29m, with an average growth rate of 11.24%, accessing over R960,000 worth of contracts and creating 14 full-time jobs. At a graduation ceremony held in Midrand on 18 May 2023, paint coatings service provider Dimba Construction and Projects was declared the top-performing business in the programme, having consistently performed at a high level over a significant period, with a track record of excellence in financial performance, customer satisfaction, innovation, and employee engagement. Dimba Construction and Projects received a prize of R70,000, while Keone Productions received the runner-up award, taking home R50,000. This prize money is seen as a cash injection into the business to be used to purchase a product or service that advances the company’s capacity. The remaining six businesses making up the SME cohort were Kanzima COE, CRM Enterprise, Mad Cleaning, Blue Rain Trading, Nande Engineering Development Consultants and KNTE. Bolstering local economic development Shawn Theunissen, founder of Property Point, congratulated all participants of the programme and commended them for their resilience and hard work. “We are making significant strides in bolstering local economic development, and it’s worth noting that the SMEs, who embarked on their programme amidst the challenging backdrop of the Covid-19 pandemic, have emerged as the epitome of resilience. These remarkable programmes will demonstrate the undeniable impact of SMEs on our nation's economy. They embody the unwavering commitment to success and sustainability, defying all odds,” said Theunissen. “With a spirit of optimism and innovative thinking, the graduation ceremony served as a testament to the invincible spirit and unwavering dedication of these incredibly resilient SMEs. It showcased the profound influence that their hard work and determination, even in the face of adversity, can have in fostering sustainable employment and generating revenue streams through entrepreneurship,” he added. Programmes such as this help inspire aspiring entrepreneurs and showcase the impact of enterprise development programmes in transforming the South African business landscape. Janine Palm, social executive at Attacq congratulated the class of 2020 on the great tenacity they displayed, especially given that the cohort began during a particularly difficult economic period. “Since the inception of the partnership in 2016, we have been able to promote the growth of SMEs in the property sector and increase their competitive ability. Through the implementation of the Local Economic Development (LED) programme, the eight graduating businesses in this cohort now have the business tools to create meaningful jobs by providing value and tapping into numerous market opportunities whilst advancing local communities,” she said. Snazo Asive Matiwane, managing director of Dimba Construction, said she was grateful for the support, mentorship and opportunities provided by the programme. “I am incredibly proud to have been selected to be part of such an exceptional enterprise development programme and even more thrilled to emerge as the ultimate winner. This journey has been a testament to the power of hard work, determination and resilience in the construction industry,” she said. “Through this programme, we have transformed from a small business into a true force to be reckoned with. We have honed our skills, expanded our network and embraced innovation to deliver outstanding results. Our success is the fruit of our commitment to excellence and our ability to thrive in the face of challenges,” said Matiwane. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/844/238849.html

Dr Sibongile Vilakazi | 29 May 2023 Members of the Gift of the Givers foundation load supplies on pallets. Today the Foundation provides relief and hope to many in distress, teaching us what impact society can have when individuals and sectors come together to adopt an attitude of collective responsibility for our wellbeing and safety rather than individualism, says the author. When I moved into my neighbourhood, two neighbours came one after another to welcome me into the neighbourhood and tell me what a great choice I had made of moving into the area because of its safety and many other virtues that they had appreciated after many years of living in the area. Soon after the two neighbours left, a street committee member knocked on my door to invite me to join the neighbourhood WhatsApp group and show me how I could contribute an amount of money towards the boom gate patrol guards and neighbourhood security. I must say, I found myself taken aback by these gestures. I was immediately made to feel that I was a member of a community and as community dwellers we were jointly responsible for protecting each other and our valuables. Unfortunately, its rare nowadays to feel jointly responsible for each other as South Africans. Far too often the demon of individualism engulfs us. Individualism is a value system that favours human independence, personal identity, and freedom over collective good or altruism. There are a lot of good traits of individualism, especially in driving competition and top performance in business. The unique skills of individuals and their creativity can be harvested to the benefit of the organisation. It can push people to innovate, be their ultimate best and boost engagement with the task at hand. Unfortunately, though, what we see in our society are the extreme sides of individualism where every man/woman is for him/herself. Individuals want to be seen to be doing well financially, living in expensive estates, and driving luxury cars at all costs. To get simple assistance from someone on the streets, they ask you for “cold drink” or thank you fee. Businesses are holding on to toxic methods of maximising profits and often find ways to short-change efforts aimed at mobilising collective responsibility for solving societal problems, such as Broad Based Black Economic Empowerment. We’ve become a people that asks; what’s in it for me rather than what’s in it for us. How do I contribute to your success while on my way to my success? From the most downtrodden to the most privileged of people, the attitude is the same. ‘Omunye ukhomba omunye esweni, omunye uvikela iso lakhe’, in Zulu we say. Then a cholera outbreak hits Hamanskraal township, after water challenges in the area have for years been used by politicians on the campaign trail to garner votes. The toxic water conditions in the township were well documented and known by those who have the power to intervene, but they didn’t intervene, instead they used it as a campaign tool. This even though it is the responsibility of the state to provide clean and safe water to all South Africans. It’s difficult to fathom that in the well-resourced modern day South Africa, in a township situated in the economic hub of the country, we have a cholera outbreak. As the Department of Health tries to curtail the situation - at a snail’s pace - and the death toll keeps rising, in comes the Gift of the Givers Foundation to donate water bottles and hygiene packs to the community. Gift of the Givers Foundation is a disaster response non-governmental South African organisation. The organisation is the largest in Africa, and it is interesting to note that the organisation received its first substantial funding from corporate South Africa in 2017, after the deadly storm in Cape Town and its surrounds. Today, the Foundation provides relief and hope to many in distress, teaching us what impact society can have when individuals and sectors come together to adopt an attitude of collective responsibility for our wellbeing and safety rather than individualism. When we adopt an attitude of collective responsibility, we force ourselves to all search for what we have that we can offer, however small or large, to the betterment of all of us. Policies such as Employment Equity and Black Economic Empowerment attempt to foster a collective national psyche that keeps us conscious of the fact that we are joined together by our past and we therefore have a collective responsibility to free ourselves from the chains of our past by contributing to the socio-economic development of our fellow compatriots while on the journey to developing ourselves. Unfortunately, the demon of individualism is robbing us of seeing the intended impact of such policies as individuals and organisations scramble for opportunities to benefit themselves first at the expense of the collective. We must resist this demon before it sees the end of our socio-economic development and transformation efforts. We still have a long way to go. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/the-demon-of-individualism-will-be-the-end-of-socio-economic-development-efforts-114be8da-14af-4507-a109-21187de5355e

Bongani Mdakane | 29 May 2023 The department of small business development, tourism and environmental affairs (Destea) has invested R12-million to grow the economy and create employment in the Free State. The funds were used to procure a 20MVA transformer as part of the upgrade of the area’s electricity capacity. This will ensure that the Rui Star Iron-Steel Plant, situated in the Thaba Nchu industrial area, functions efficiently and effectively and remains sustainable. The department has spearheaded the project’s monitoring process. Rui Star Iron-Steel Plant is owned by Chinese steel giant Hangda Steel, and it has invested another R288-million in the business as the company sources scrap metal across South Africa and processes it into steel and iron. The business already employs 120 people and aims to create another 500 jobs when the project’s phase one is fully commissioned. Destea MEC Thabo Meeko said: “This is one of the key results emanating from continuous engagements with different stakeholders, investors, and potential funders. “We are on a mission to attract investors so that we bring new money into our economy and create jobs to reduce the high rate of unemployment.” Meeko said the company was initially set up in a factory situated in Botshabelo and later found that the electricity capacity in the area was far less than what it required for the project. Consequently the project was later moved to Thaba ’Nchu. “The project is in the final stage and [is] envisaged to kick off in the first week of next month. “Once power capacity has increased, 500 jobs will be created. We will continue with the road shows to other local municipalities to identify economic opportunities. “The economic trajectory of the province must be informed by collective effort, to mobilise social partners around economic growth and development in the context of the mixed economic approach. “It is through changing the structure of the South African economy that inclusive growth will become possible. Inclusive growth cannot occur if those who are excluded are not given fair access to economic opportunities,” he said. Over a period of 10 years, between 2011 and 2021, the Free State economy grew at an average rate of a mere 0.46%, and in the same period the province contributed 4.9% to South Africa’s gross domestic product (GDP). Meeko said with investments such as the Rui Star Iron-Steel Plant, it was expected that the economy in the province would grow at an annual average rate of 1.45% to 2026 and will still contribute 4.9% to the country’s GDP. He said provisions were being made for small, micro and medium enterprises (SMMEs) to be provided with operational spaces towards formalisation of small businesses. “To this end, the Free State Development Corporation has spent over R2.7-million in rental incentives at its industrial parks, and over 25 SMMEs benefited from this incentive. Meeko added that his department would also continue to support township enterprises through promoting supplier diversity programmes. This will assist local enterprises to capitalise on existing procurement opportunities and to pro-actively build partnerships to collaborate on supplier development initiatives. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/destea-drives-industrialisation-in-the-free-state/

Frik Boonzaaier | 30 May 2023 SINCE President Ramaphosa signed the Employment Equity Amendment Bill into law on April 12, 2023, there has been significant commentary – from positive to strongly negative – on the impact the amendments may have. Much of it has referred to BEE changes when there have in fact not been any amendments in terms of BEE. The BEE Chamber explains that treating Employment Equity (EE) and Black Economic Empowerment (BEE) as one and the same thing, has caused significant confusion. Likewise, with the gazetting of the Draft Sectors and Draft Sectoral Targets by the Minister of Labour on May 12, 2023, which set some of the new provisions in motion, there has been strong reaction from different corners of the market with a variety of interpretations of how the Draft Sectoral Targets should be interpreted. Kicking off with the burning platform of Sectoral Targets, it’s time to dispel the myths in terms of how these targets should be treated. Senior human capital transformation consultant at The BEE Chamber, Frik Boonzaaier, explains: “One of the first questions which arose very shortly after gazetting, is that the Sector Target percentages do not add to 100%. As an example, the Draft National Senior Management Targets for the ‘Human Health and Social Work Activities’ Sector add to 68% between Africans, Coloureds, Indians and Whites. The question is then what we should do with the residual 32%? One of the interpretations is that the Sectoral Targets should be viewed as the maximum allowable representation of particular groups. In this scenario, in certain provinces at certain levels, the targets seem to indicate that there should be no representation of Coloureds and Indians. This is incorrect.” In a media statement on May 16, 2023, the Department of Employment and Labour indicated the following to correct the misconception: “…those employers that have surpassed the regulated minimum targets proposed per sector, are encouraged to still be proactive in setting EE targets towards achieving the demographics of the EAP”. This is in line with the fact that the Amendments have simply added Sectoral Targets as objectives towards which companies need to work, but that the EAP Objectives remain intact as the ultimate benchmark. Section 42(1)(a) still reads (as it has since the Act’s inception in 1998): “In determining whether a designated employer is implementing employment equity in compliance with this Act, the Director-General or any person or body applying this Act may … take the following into account: The extent to which suitably qualified people from and amongst the different designated groups are equitably represented within each occupational level in that employer’s workforce in relation to the demographic profile of the National and Regional Economically Active Population…” Therefore, once the final Sectoral Targets have been gazetted, employers will need to develop Employment Equity Plans with targets which will meet those targets over five years. The Sectoral Targets should be treated as the minimum interim objectives on the road to ultimately meeting the EAP Targets – the EE Plan Targets should aim for somewhere between the Sectoral Targets and the EAP Targets. Boonzaaier advises: “Continue to aim for the EAP demographics and you will meet the Sectoral Targets.” On to the second issue: Where does that leave us regarding the BEE Management Control Targets? These remain intact. “So for example, based on the latest EAP Targets (from the 22nd Commission for Employment Equity Report), to score full points for Senior Management, a Measured Entity needs to have a 60% alignment with EAP. The final result, after having calculated the Adjusted National EAP (which excludes the White portion of EAP) would be a BEE target of 28,68% to score full points on the Senior Management line item. This methodology has been in place since the amendment of the BEE Codes in 2013. The gazetting of the Employment Equity Sectoral Targets has no bearing on this, considering that the 60% alignment target is still based on the full EAP Targets, and not on any Sectoral Target.” The BEE Chamber advises that it is important to understand a particular distinction between Employment Equity and BEE legislation. The Employment Equity Act has had and will continue to have, a punitive measure in the form of fines should a company fail to comply, including complying with the Sectoral Targets. BEE, on the other hand, is not a compliance issue. Points are awarded for meeting certain targets and the overall BEE level attained for ownership, management control, skills development, enterprise and supplier development and Socio-economic development has an impact on a company’s ability to attract and retain clients. This pressure comes from clients, not from government. Boonzaaier concludes: “Once we have Final Sectoral Targets, these will be interim targets to move companies closer to EAP alignment, which is the ultimate benchmark. Therefore, should a company aim for alignment with EAP, it will also meet the lower Sectoral and BEE Management Control Targets. EAP is still, and will continue to be, victorious.” The BEE Chamber was established in 2016 by BEESA as the next evolution of a B-BBEE consulting partner – not a traditional consultancy, seeking to implement Broad-Based Black Economic Empowerment (B-BBEE) best practices and enable businesses in promoting South Africa’s diversity and equity policies, rather than leaving them reliant on isolated sets of complex information. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://kznindustrialnews.co.za/new-ee-regulations-should-not-be-confused-with-bee/

Western Cape Government | 29 May 2023 On Thursday, the Reserve Bank unanimously agreed to a 50 basis points increment in the Repo Rate to 8.25%. This translates to a new prime lending rate of 11.75% for our citizens. Faced with this tough economic climate, coupled with unemployment challenges citizens and youth are left with significantly reduced resources to fend for themselves. It is only natural that many will look to the government for solutions. While this is an issue affecting all South Africans, public and private sectors, as a government it also rests on us to step forward and provide mitigating solutions where we are able to. It is against this background that the Western Cape Department of Infrastructure, through our various branches, seeks to provide work opportunities and income support to indigent households. Through the delivery of public community assets and services. The interest rate hike is a painful, but necessary move by the central bank to slow down the alarmingly high inflation rate. With this in mind, as the Western Cape Government, we are continuously looking at innovative ways to assist our citizens to cushion the severity of the economic hardships that they are facing. Below are just a few ways we aim to support our citizens during this time of significant economic stress: 1. Affordable housing interventions We are currently lobbying the national government to increase the maximum on the qualifying combined household earnings to R27 000. Currently, the affordable housing qualifying criteria is only reserved for those citizens that earn a combined monthly income of R 3501 up to R22 000. By lobbying for this increase in the salary bandwidth, we will achieve better inclusivity for citizen-focused professionals which include, but are not limited to healthcare workers, educators and retail workers. 2. Youth Training and employment interventions In our Apprenticeship programme, we have 18 Boiler-maker learners who are in their 2nd year of a 3-year training programme. The 25 Electrical and 25 Plumbing learners are in their first year of the 3-year training programme. In this programme the apprentices receive an overall stipend of R5000 per month. Applications for the National Youth Service(NYS) programme will open on 1 June 2023. In addition to the R2000 stipend, there is an allowance of R2000 for accommodation and/or transport. The Youth in Built Environment Programme we will look to improve upon the 274 young persons already trained in the 2022/23 fiscal year. 3. Masakh’iSizwe Bursary Programme (MiS) In partnership with Higher Education Institutions (HEIs), namely, Stellenbosch University (SU), the University of Cape Town (UCT), and the Cape Peninsula University of Technology (CPUT), the programme offers bursaries for full-time studies towards a degree or diploma in the transport, engineering, and infrastructure environment disciplines. 4. Contractor Development Programme Our Construction Information Sessions which are open-day interventions equip emerging contractors with knowledge on the compliance requirements for tendering for government construction and maintenance opportunities. The Structured Training is an accredited classroom training programme targeting CIDB grade 2CE/GB registered contractors (an exception for CIDB 1CE/GB contractors who have been in business for longer than 2 years). The training is for 8 weeks. In addition, our Mentoring programme which is an intervention targeting Grade 3 to 5 CIDB registered contractors. This includes a four-week accredited classroom training and 16-month mentoring programme. As a forward-thinking government, our efforts are geared towards creating an enabling environment for the infrastructure sectors in order to create jobs and stimulate economic growth. Provincial Minister of Infrastructure, Minister Tertuis Simmers ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.westerncape.gov.za/news/mitigating-against-tough-fiscal-environment-wake-interest-rate-hike

Roy Cokayne | 29 May 2023 Compliance inspectors will have power to issue non-compliance certificates rendering a company ineligible to tender for state work. But divisions exist whether government’s proposed targets are acceptable. A battle is brewing between the construction industry and the Department of Employment and Labour (DEL) over recently published regulations under the Employment Equity Amendment Act. The regulations, published earlier this month despite a lack of consensus between construction industry associations, contain some controversial provisions. These include: The imposition of employment equity targets on various sectors of the economy; Preventing a company that is issued with a non-compliance certificate (by employment equity inspectors) from bidding for public sector work; and The alleged “double jeopardy” that will result if a company is excluded from bidding for public sector work if, during the previous 12 months, the Commission for Conciliation, Mediation and Arbitration (CCMA), or the Labour Court has found it guilty of unfair discrimination. Formal objection filed Stefanutti Stocks CEO Russell Crawford said last week that the construction industry is preparing a submission to be sent to Minister of Employment and Labour Thulas Nxesi, objecting to the Employment Equity Amendment Act “and the fact the targets set for the construction sector were set without any meaningful consultation or supported by scientific data”. The amended act forces employers who employ more than 50 people to adopt more aggressive employment equity targets in their employment equity plan. Prior to the amendment, employers were able to choose their own targets based on race, gender and disability provided the plan would result in reasonable progress to correct the effects of past and ongoing discrimination in the work place. The draft regulations identify various economic sectors and proposes percentage equity targets for each, as envisaged by Section 15A of the act, with the progress of designated employees assessed on these set targets. Challenges outlined Consulting Engineers South Africa (Cesa) CEO Chris Campbell, who is also a board member of Construction Alliance South Africa (Casa), an umbrella body of more than 36 industry associations, highlighted several challenges regarding the regulations. Campbell, who led the Casa team in its engagements with the DEL on the act when it was still a bill, said they tried to have meaningful engagements with the DEL on the bill but believe the department largely had “absolutely no intention of listening to what we thought was going to be a more sustainable way of embarking on this process”. He said Casa tirelessly tried to convince the department to work together with the alliance, which is not arguing against the motive behind the setting of targets for the industry, but rather what targets can realistically, reasonably, and rationally be enforced on companies. “We outlined to them, some of the constitutional flaws that exist in that legislation as it stands, and the need for a more detailed exercise and research to look at what the numbers look like if the targets they are considering are implemented,” Campbell said. “They [DEL] went through the motions of the consultation with very little appetite to absorb, or take in [suggestions], or even collaborate.” Divided on targets Campbell said Casa members are divided regarding their views on the regulations, as some entities are quite happy with the proposed targets while others believe they are not achievable, even within the next five years. He said the proposed targets are out for public comment but are “laughable because some of the targets that have been set don’t add up to 100%”. “They [DEL] can say it’s just an error but for me it’s just symptomatic of people who just don’t care about the impact of what they are hoping to achieve,” he said. An ‘incoherent mess’ This led to constitutional expert Professor Pierre de Vos recently describing the targets in the draft regulations as “an incoherent mess”. Campbell said the figures used by the department to set the targets are drawn from exactly the same figures that were used in the broad-based black economic empowerment (BBBEE) codes – but that the Employment Equity Amendment Act and the BBBEE codes are not aligned. Campbell said the problem with this is that there was negotiation on the sector codes to look at the ratios, and points were not allocated equally because in some instances it would have been difficult to fulfil the conditions. In addition, the codes had four dimensions, and if an employer did not score high enough in terms of the sector scorecard in respect of ownership and management, for instance, there were other elements they could focus on to achieve a decent score. Campbell said the DEL also claimed it looked at the economically active population in setting the targets but this presupposes that every profession or industry is almost the same in respect of its ratio and breakdown in the economically active population. Compliance inspectors He further questioned what controls there would be over compliance inspectors. He said they would have enormous powers because they could issue a non-compliance certificate that renders a company ineligible to tender for state work. “There must be a stringent governance process around these inspectors. What controls are there for these inspectors … [and] who do they answer to, or is this just not another avenue for corruption?” he said. Roy Mnisi, executive director of Master Builders South Africa (MBSA), a member of Casa, confirmed that consensus could not be reached among Casa member organisations about the approach to the employment equity targets. Mnisi said it was agreed each member organisation should make their own submission to the DEL, which MBSA did. He said MBSA is still consulting with its members about the published targets and cannot comment on whether it will be supporting or opposing them at this stage. No need for further data However, Mnisi said MBSA does not believe there was any need for further research or scientific data to support the targets – the Employment Equity Amendment Act is not a new act and companies are expected to be reporting on their employment equity plans, which means the necessary information is available. But he said there may be some misalignment between the act and the BBBEE codes, which “is something that needs to be looked at”. Mnisi is unsure if the construction industry targets will be achievable but believes the government will be reasonable in engagements with the industry “and we should be able to meet each other half way”. Genuine concerns South African Forum of Civil Engineering Contractors (Safcec) CEO Webster Mfebe said the Employment Equity Act is a historic act and amendments should be a joyous occasion rather than one to be protested against. However, Mfebe said some genuine issues have been raised about the implementation of the act that seem to be causing ructions. One of these issues is the “double jeopardy” that employers might experience if in the past 12 months either the CCMA or the Labour Court has found them guilty of unfair discrimination in the workplace. This ruling will result in employers receiving a non-compliance certificate that prevents them from having access to public procurement contracts, he said. Mfebe said the administrative burden on the resources of the state also must be addressed because many inspectors will be required to police the targets to ensure compliance, “otherwise it will not even be worth the paper it is written on”. The DEL had not responded to request for comment at the time of publication. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/industry/construction-sector-employment-equity-battle-brews/

The Citizen | 26 May 2023 BUSINESS NEWS - The Democratic Alliance (DA) estimates that if the new race quotas in the Employment Equity Amendment Act (EEA) are implemented, about 600 000 South Africans will lose their jobs over the next five years. The calculations are based on the EEA draft regulations, pertaining to the new targets, which have been published for public comment on 12 May. Opposition Mounting Against New Race Targets The gazetted regulations stipulate race and gender targets, determined by the Employment and Labour Minister Thulas Nxesi, in various economic sectors per industry per province. Since President Cyril Ramaphosa signed the Employment Equity Amendment Bill of 2020 into law on 12 April this year, opposition from trade unions and business stakeholders has been mounting. The race targets have been slammed for being difficult to decipher and riddled with numerical errors. According to BusinessTech, law firm Bowmans has also weighed in, saying the draft regulations could face challenges in court due to administrative, procedural and other issues involved. DA breaks down job 600k loss estimate The opposition party provided the following breakdown of its alarming total estimate of job losses: 71 518 coloured people; 116 934 Indians; 404 608 white individuals. “The incoherence of the Act’s quotas betrays the hasty and clumsy manner in which they were formulated,” the DA said, adding that it has submitted questions to Parliament. The questions are aimed at establishing the basis on which the race targets were determined and what modelling was done by the department. Race targets a ‘social and economic catastrophe’ – DA The targets are expressed as a percentage of either the national or provincial population. The DA argues that this amounts to setting up quotas, as the laws require businesses to effectively terminate jobs based on race over the next five years. “The targets proposed by government are not faceless numbers. They represent an impending social and economic catastrophe which will slam the brakes on an already slowing machine and risk grinding our economic gears to a complete halt,” the DA said. Draft EEA regulations: New race, gender targets The proposed targets would apply to companies employing more than 50 people with the gazetted notice proposing a percentage split across: 18 industries/sectors; Four skill levels per industry (top management; senior management; professional; skilled); Four racial groups per skill level (plus a total for “black”, which includes Indian, coloured and African) Two genders (male and female) 10 regional breakdowns for all of the above (nine provinces and national). ‘Incoherent and incomprehensible’ The department has come under fire for not publishing an explanatory note on how the targets were determined. In its comment, business interest group Sakeliga pointed out that the targets are “incoherent and incomprehensible”, adding that the proposed numbers don’t add up. DA, Solidarity heading to court According to the party’s leader John Steenhuisen, the DA will challenge the act in the Constitutional Court and encouraged people to raise their objections to the targets with the department. Trade union Solidarity also announced recently that it has served a court summons on Ramaphosa, the Department of Employment and Labour, as well as Nxesi, disputing the constitutionality of the country’s new BEE and transformation laws. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.oudtshoorncourant.com/News/Article/Business/social-economic-catastrophe-half-a-million-job-losses-under-new-race-quota-laws-da-202305250329