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Michael Bagraim | 28 May 2023 Michael Bagraim writes that the minister of employment and labour has sent out suggested regulations to be attached to the amendment to the employment equity legislation. The Employment Equity Amendment Act 4 of 2022 was signed by President Cyril Ramaphosa a few months back. Employment and Labour Minister Thulas Nxesi. File picture: GCIS The minister of employment and labour has sent out suggested regulations to be attached to the amendment to the employment equity legislation. The Employment Equity Amendment Act 4 of 2022 was signed by President Cyril Ramaphosa a few months back. To strictly and viciously enforce the amendments, the minister has populated the legislation with suggested vitriolic regulations. Employment equity legislation is another means of social engineering similar to that employed by the Nationalist Party during apartheid. It is well known that the era of apartheid was destructive to society as a whole but particularly to the rights of certain individuals. The historically disadvantaged individuals in South Africa, made up of blacks, coloureds and Indians, were so badly treated during apartheid that those affected are still suffering from the discrimination. The education system was designed to subjugate those not benefiting from the apartheid social engineering. The educational system put people into the marketplace at the lowest level. The whole structure of society was designed to subjugate the people and create a sub-class of individuals. The Nationalist government carefully structured and designed apartheid so that it would permeate throughout society and throughout the ages. The pernicious system has had an enormous effect on the business community, thereby ensuring that many of the senior and managerial positions in the large corporations would be white and male. A lot of the remnants of the system exist today. In answer to this pernicious system, our forward-thinking magnificent Constitution called for the equality of the races and for equal rights for all. Our Constitution is revered throughout the world and is seen as a template for a system of good governance. Unfortunately, over more than 20 years, our ANC-led government has taken some of the revered clauses in that Constitution and misinterpreted them to try to re-engineer the apartheid social engineering to reflect benefits for one group of people only. The idea was to move away from the definition of racial discrimination to equality among people, regardless of background and/or pigmentation. It is ancient thinking to believe that people of different pigmentation would belong to different races. It is with a deep sense of sadness that the employment equity legislation was brought into being many years ago. The legislation was designed primarily to benefit people in accordance with their skin pigmentation. It is a truism to say that the legislation has not worked, other than to benefit a small group of individuals who are either politically connected or are politicians themselves. The average worker has suffered greatly. We are experiencing 40% unemployment and horrific low productivity rates. Coupling the discriminatory legislation with low productivity rates means that many who were subjugated under apartheid are being subjugated today. The government’s answer to the failure of the legislation was to try to pen amendments to it, which made it more stringent and more difficult to implement. The amendment allowed the minister to pen his own targets and quotas for each province and refer to many, many industries. The quotas have been printed for public comment. Unfortunately, the minister is neither obliged to negotiate with the industries nor take into account the commentary from the public. My experience has shown me that commentary is there as window dressing. In the past, the ministry has proposed regulations and gone ahead and implemented whatever it felt like doing. The regulations are so pernicious that in certain provinces and industries you won’t be able to employ coloured or Indian workers. The tables of targets have been published and are sickening. This is reminiscent of the worst excesses of apartheid. Thankfully, there are those who are intending to take the ministry to the Constitutional Court if the minister persists with the hidebound quotas which appear to be set in stone. * Michael Bagraim. ** The views expressed here are not necessarily those of Independent Media. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capeargus/opinion/the-labour-minister-has-populated-the-legislation-with-suggested-vitriolic-regulations-22df2109-99e1-4c34-9e31-02b277e63543

The Media Online | 29 May 2023 Proudly South African has released its latest campaign, a call to South Africans to “rethink our loyalty to South African products and services as well as collectively push forward for a win in economic restoration for South Africa and its people”. “The current state of youth unemployment is alarming, and we have to act urgently to counteract the impact of job losses on the local economy,” said Eustace Mashimbye, CEO of Proudly South African. “If we do not change the course of our country’s future through localisation, the consequences are likely to be dire. This is why it is crucial to restrategise and revise our own approaches to combatting this situation that affects us all. We must stop the culture of dependency and strive to be the protagonists in cultivating the change we want to see in our own lives,” he added. “This is done, first and foremost, by having pride in our own goods and services, and stopping at nothing to see our country advance from the economic darkness that our current purchasing habits are leading us to.” Youth unemployment South Africa has one of the highest unemployment rates in the world, recorded at 32.9 % in the first quarter (Q1) of 2023 according to the Quarterly Labour Force Survey (QLFS). The statistics are even worse if one focuses on young people: The youth unemployment rate, measuring job-seekers aged between 15 and 24 years old, rose to 62.1% in the same period. The new campaign is an analogy of a sports match and is titled Second Half. Through this analogy, Proudly SA views the years leading up to the Covid-19 pandemic as the first half of the ‘game’ of job creation and poverty alleviation, showcased in their previous consumer campaign known as the First Half narrated by South Africa’s legendary internationally acclaimed actor, Dr John Kani. As the title suggests, Second Half represents the time where the country needed to regroup, recover, revisit the game plan, rethink our loyalty to South African products and services as well as collectively push forward for a win in economic restoration for South Africa and its people. “Every South African has the power to change lives, create jobs, improve the country’s struggling economy, and make a dramatic impact simply by buying local. This, in turn, helps secure the jobs value chain,” said Mashimbye. “Our goal is to encourage buying local as this directly creates jobs and this in turn benefits our children who have big dreams to make their own impact one day. We cannot emphasise the power of buying local enough. We can only address youth unemployment by thinking about our buying decisions. “If we support locally manufactured goods, we are building our nation and the economy. A strong economy lies in the hands of our children – the youth – and it is incumbent on us to pave the way for them through localisation,” Mashimbye said. Rebuild economy Every Rand spent on local products helps to rebuild the South African economy and contributes to retaining and creating jobs. Many countries, such as China, are thriving because of the strength in localisation and export powers. This compels us as South Africans to be more intentional and robust about localising the goods that we consume or use. “We are stepping into a future that we can collectively be proud of because we individually would have contributed to,” added Mashimbye. “Through the Second Half, our goal is to emotively connect with consumers in a way that’s close to home – our children’s fate lies in our hands, and we must do something about it. Most importantly, we must do right by them! “These sectors are everywhere around us, so we strongly encourage consumers to make the right purchasing decisions when they buy anything from consumables, furniture, and white goods, to using services providers that are vocal about using local supplies.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://themediaonline.co.za/2023/05/new-proudly-sa-campaign-urges-south-africans-to-buy-local-to-create-employment/

Creamer Media | 24 May 2023 'Township economy' refers to enterprises and markets based in the townships. These are enterprises operated by township entrepreneurs to meet primarily the needs of township communities and therefore can be understood a 'township enterprises' as distinguished from those operated by entrepreneurs outside the townships. How big is the township economy? An estimated 17% of South Africa's total employment is through the informal economy or so called ‘township economy.’ In a country with a high unemployment rate, the informal sector is a lifeline to countless families who lack formal employment. The township economy plays a critical role through: Employment opportunities: The township economy has the potential to generate employment and reduce unemployment rates. By supporting local businesses and entrepreneurial activities, it creates job opportunities for residents who may face barriers to employment in mainstream sectors. This helps alleviate poverty and contributes to the overall economic development of the country. Local economic development: A vibrant township economy contributes to the overall economic development of a region or country. It stimulates economic activity, promotes investment, and attracts resources to previously marginalized areas. Entrepreneurship and innovation: Townships are often hubs of creativity, innovation, and entrepreneurial talent. By supporting and nurturing local entrepreneurs, the township economy encourages innovation and the development of new businesses. This fosters a culture of self-reliance and resilience within the community and creates role models who inspire others to pursue their entrepreneurial aspirations. Social cohesion and community empowerment: A strong township economy can help foster social cohesion and empower communities. By providing economic opportunities and access to resources, it promotes a sense of belonging, pride, and collective identity among township residents. This can lead to stronger community networks, increased social capital, and improved social well-being. Reducing inequality: Townships are often characterized by significant income and wealth disparities. A thriving township economy can help reduce inequality by providing opportunities for upward mobility and wealth creation among marginalized communities. This, in turn, contributes to a more equitable society and reduces the gap between different socioeconomic groups. Diversification and resilience: A diverse township economy, with a variety of industries and sectors, helps create a more resilient local economy. Relying solely on a few industries or sectors can make a community vulnerable to economic shocks. By promoting a diverse range of businesses and economic activities, the township economy can better withstand external pressures and fluctuations in the broader economy. In summary, the township economy is important because it has the potential to address unemployment, stimulate economic growth, foster entrepreneurship, empower communities, reduce inequality, and contribute to the overall well-being and development of historically disadvantaged areas. While informal businesses typically do not contribute directly to the fiscus through taxes, they provide livelihoods, employment and income for approximately 2.5 million workers (excluding agriculture), according to Stats SA. The upcoming Township Economies Conference & Expo will be gathering township enterprises to explore new growth opportunities by: Access to new markets and the mainstream economy Learning about corporate supplier development programmes Finding out about the latest financial services available to them to grow their businesses Exploring business solutions that they can implement to support their business growth Meeting with key stakeholders who can help them develop their businesses The event will be taking place from the 20 – 21 June 2023 at the Emperors Palace. This article has not been written or solicited by Creamer Media and has been supplied as a media statement. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://m.engineeringnews.co.za/article/why-are-township-economies-important-2023-05-24

SA News | 25 May 2023 Cabinet has approved the 2023 Youth Month Programme under the theme: “Accelerating youth economic emancipation for a sustainable future” which will be launched on 1 June 2023. The launch will be led by the Minister in The Presidency for Women, Youth and Persons with Disabilities, Dr Nkosazana Dlamini Zuma, at the Hector Pieterson Memorial and Museum in Soweto. This year’s National Youth Day will be celebrated over a two day period from 16 to 17 June 2023 at the Mangaung Outdoor Sport Centre, Bloemfontein, in the Free State. Deputy President Paul Mashatile will address the National Day commemorations. “Over the two days, there will be the opportunity for youth to participate in dialogues with Ministers, Deputy Ministers and other stakeholders on various training, entrepreneurial and developmental opportunities available within government and social partners,” Cabinet said in a statement. “Cabinet urged society to intensify efforts to ensure young people access opportunities which allow them to enter active participation in the economy,” Cabinet said in a statement. The Executive highlighted that Government, as the largest employer, has responded to the need for skills development and youth employment by enabling unemployed graduates to gain experience through the Public Service Graduate Internship and Learnership Programme. Furthermore, Government is also implementing the Social Employment Fund (SEF) and revitalised National Youth Service (NYS) job-creation initiatives that draw thousands of young people into the economy. “The Presidential Youth Employment Intervention has already successfully supported access to 1.5 million temporary earning opportunities, one million work-based placements, 250 000 work-integrated learning opportunities 250 000 paid-service opportunities and 500 000 young people engaged in sustainable earning opportunities. “As we enter Youth Month, government reminds young people to register on the SAYouth.mobi platform as four million of their compatriots already have, where work opportunities can be accessed,” Cabinet said. Child Protection Week Meanwhile, South Africa will mark Child Protection Week from 28 May to 4 June 2023 under the theme: “Let us Protect Children during COVID-19 and Beyond”. The campaign mobilises all sectors and communities towards development, care, and protection of children. This year the campaign will focus on RISIHA, a community-based prevention and early intervention programme, aimed at moving children from vulnerability to resilience. – SAnews.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/cabinet-approves-2023-youth-month-programme

SA Government | 24 May 2023 Use the Employment Centre as a base to develop entrepreneurial skills - Employment and Labour Deputy Minister, Moloi appeals to De Aar community. Employment and Labour Deputy Minister, Boitumelo Moloi has asked the community of De Aar to use the newly-opened Employment Centre in their search for jobs and also develop entrepreneurial skills. “Let us begin to disrupt the status quo. Let us now learn and be trained to be employers,” Moloi said when delivering her speech ahead of the opening of the new Employment Centre in De Aar, Northern Cape today. The establishment of the De Aar is part of the Department’s Public Employment Services (PES) branch to assist work seekers to have a leg into the job market. To take services to the people, the Department has embarked on a national programme to build fully connected Employment Centres, offering, registration of work seekers, job search, CV compilation, accessing counselling services, access to career advice portal, career interest self-evaluation … and many other useful tools that can help the work seekers, especially the youth along their pathway to securing a job opportunity. Moloi said to the De Aar community to desist from the practice of vandalism and destruction of property when feeling aggrieved, she appealed: "Protect the Employment Centre dearly. I do not want when I come back here and find things broken". A typical Employment Centre is equipped with stations and self-help kiosks (online self-help) that provides access to the entire Department of Employment and Labour online applications and service and supporting partners platforms. A flat screen TV is mounted at an Employment Centre to display all available services of the Department and available opportunities on Employment Services of South Africa (ESSA), a job matchmaking platform. The Centre also acts as an assessment area for use by Career Counsellors. To date employment centres have been launched in Cape Town, Durban, Johannesburg, Mdantsane and Newcastle. These are located at Department’s Labour Centres. A Employment Centre acts as a one-stop shop for clients where all Departmental services are integrated and beneficial towards placement in job/learning opportunities or self-employment. The centre will provide services to surrounding towns and other areas. It also forms parts of a District Development Model which seeks to integrate service provision. Various organisations, SETAs and the National Youth Development Agency (NYDA) in their messages of support have committed to work close with the Department. NYDA representative Buhle Ntsenge whose organisation he said did not have an office in the Town was ready to take space at the Employment Centre and complement the Department’s work. Department’s PES Deputy Director-General, Sam Morotoba said the programme was geared to open more Employment Centres, especially in the country targeting areas with high unemployment rates. Morotoba encouraged young people to explore opportunities in faraway places and not only restrict themselves to their locality. The Northern Cape has a population of over 1,3 million. De Aar is part of the Emthanjeni Local Municipality with a population estimated at 47 000 and has about 23 760 people. The province has one of the highest youth unemployment rates in the country. According to Stats SA Quarterly Labour Force Survey for the first quarter of 2023, the youth unemployment rate (15-34 years) in De Aar stood at 54,5 percent. The causes of unemployment in the Province are said to be a lack of skills and training, limited access to resources and opportunities, and a shortage of jobs. The De Aar Labour Centre is one of 12 visiting points in the province. In the 2022/23 the Department’s (ESSA) online job matching platform had 34 000 work seekers registered in De Aar, with some 6 411 employment opportunities registered. The labour centre in the same period provided employment counselling to 13 440 registered work seekers. The centre also placed 3 358 work seekers. De Aar also known as Maraisfontein in a town in Northern Cape with the most important railway junction in the country. The town is a major production centre for wool production and livestock farming. It is the third largest town in the province. The opening of the De Aar Employment Centre is part of the Department of Employment and Labour in collaboration with other government departments, Sector Education & Training Authorities (SETAs), and the local municipalities in the province to host National Careers Week and Fairs. On the 25-26 May 2023 the focus shift to Kuruman, Northern Cape Province. The remainder of the programme of the Careers Fairs/National Careers Week is scheduled as follows: Kuruman (Employer session) Date: 25 May 2023 Venue: Kuruman Lodge Time: 08:00-11:00 Kuruman: Career Fair and Launch of the Public Employment Services mobile busses Date: 25-26 May 2023 Venue: Thabo Moorosi Multipurpose Centre Time: 08:00-15:00 The media is invited and for queries, please contact: Teboho Thejane Departmental Spokesperson Cell: 082 697 0694 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/deputy-minister-boitumelo-moloi-opens-employment-centre-de-aar-24-may-2023-0000

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Nozizwa Vundla | 25 May 2023 Changing the country's course requires much attention to the cognitive development of children. A staggering 57% of SA children in early childhood development (ECD) are not on track for cognitive and/or physical development, according to the Thrive by Five Index. To address this and provide a tangible impact that’ll help change the country’s course, Sanlam is targeting ECD through the new Sanlam Foundation Education Programme. These efforts are rooted in the belief that every child has the right to the highest standard of education, no matter their socioeconomic background. The programme will reach 1,403 pupils and 40 teachers across 20 ECD centres and 14 primary schools in KwaZulu-Natal, Western Cape, Eastern Cape and Gauteng. The programme will be scaled up and refined once Sanlam starts receiving monitoring and evaluation (M&E) data. It’s a commitment for the long term through a pipeline approach, from ECD to primary and secondary school. In SA we have the three horsemen of the apocalypse — unemployment, inequality and poverty. It’s not just joblessness, it’s unemployability that plagues us. Young people don’t have the basics of numeracy and literacy needed to be employable or to run their own businesses. About two-million children start grade R each year and only one-million matriculate. ECD interventions are instrumental in addressing this sustainably. The Sanlam Foundation Education Programme The programme partners with world-class implementation experts to foster strong foundational skills. This work is anchored by a theory of change and measurable outcomes that are regularly reported on so the programme is data-driven. Nutrition: The Thrive by Five report found one in 18 children in South Africa has signs of long-term malnutrition. The first 1,000 days of a child’s life are crucial, so we provide a nutritious and age-appropriate daily meal at all schools we work with. Science, technology, engineering and maths: In a class of 20 children starting grade R, just eight are on track to start their formal education with the right foundation. We are focusing on teacher and principal training to ensure robust numeracy and literacy skills are embedded early. Home language: Imagine learning foundational maths concepts in a language you don’t speak. The Sanlam programme focuses on home languages because children learn better in the language they know best. Psycho-social support: Sanlam provides support to identify issues that may affect a child’s learning early — such as ADHD and dyslexia — and nurture the child with targeted interventions and additional care. Robotics: We must ensure none of our children are left behind as we enter a new era. We hope to share our knowledge and what we've learnt as the programme unfolds and to continue learning from others who run similar projects. Corporate social responsibility is an area that doesn't need competition. The Sanlam Foundation Education Programme is eager to work with corporates to tackle systemic issues in our education system. The Sanlam Gauge showed corporates consistently over-index on spend in the socioeconomic development element of the B-BBEE scorecards. Sadly, there’s usually no real M&E on this spend, which makes it difficult to derive the impact of the initiatives. Imagine what we could achieve if we all adopt a targeted approach and work together as corporates to help resolve the ECD crisis in this country, with M&E at the centre of our efforts. Having recently partnered with Business Day to launch the Sanlam ESG Barometer, the institution has placed greater focus on the “S” of the three pillars of sustainability: environment, social, governance. We want to empower all Africans to be financially confident and prosperous, and that begins with a strong educational start. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-05-25-native-sanlam-launches-education-programme-to-boost-ecd-centres/

Special Reports | 24 May 2023 Hlubi Shivanda, Director of Business Operations and Innovation and Corporate Affairs at Samsung South Africa Samsung has proudly announced that its continued investment in South Africa, coupled with its dedication to remain an active contributor to the future of the local economy and strong supporter of economic transformation, has contributed to the company’s Level-1 B-BBEE status for five consecutive years. The company has achieved this incredible recognition by embarking on many empowerment, entrepreneurial and skills-based projects in the ICT sector in which it operates. Samsung is augmenting its national transformation policies through Employment Equity, Enterprise Development and investment in education. In particular, the company is building on its landmark multi-millionaire Equity Equivalent Investment Programme (EEIP), which is already celebrating over three years of sustained success. Launched in May 2019, Samsung’s EEIP programme is expected to have a measurable impact on job creation with a projected contribution of over a billion rands to the South African economy at large. Samsung’s 10-year plan aims to address key developmental aspects linked to the National Development Plan and the overall transformation of the local economy. The company’s EEIP programme has seen an investment in black, female-owned entities which now operate in the full value chain of e-Waste. Samsung also has a strong focus on enterprise development and capacity building in ICT through scarce skills development. When Samsung entered South Africa at the dawn of democracy; it placed a great focus on harnessing the power of technology and innovation to effect great positive change in the country. Since then, Samsung has made incredible strides forward in its long-term vision for the country. Samsung is also developing 4IR skills in partnership with a number of institutions of higher learning in South Africa. The company has launched many skills development initiatives, which are not only created for developing internal employees, but also supporting university students studying in fields within Samsung’s ecosystem and value chain. With wide-ranging support of the country’s youth through bursaries, learnerships and the Samsung Engineering Academy programme, South African youth are gaining artisanal and electronics skills. Samsung is looking forward to a future defined by equality and empowerment for all through these initiatives that have and continue to make an impact across the country, and are aimed at developing the youth’s skills-for-employability. The Solve For Tomorrow competition is a Science, Technology, Engineering and Maths (STEM) aligned educational programme that provides learners in grades 10 and 11 from underserved communities an opportunity to gain invaluable skills while solving some of the challenges within their communities. Recently launched, this competition is being piloted in 51 schools across the country. Learners are encouraged to use STEM in finding solutions to some of the most pressing societal challenges that are faced by their communities. Additionally, the Samsung Innovation Campus programme partners with universities of technology to develop and teach coding, software development, internet of things (IOT) and artificial intelligence (AI) skills to youth from under-serviced communities. Hlubi Shivanda, Director of Business Operations and Innovation and Corporate Affairs at Samsung South Africa, said: “This incredible achievement of the Level 1–B-BBEE Rating for five consecutive years is a reaffirmation of Samsung’s commitment to prioritising B-BBEE as a non-negotiable practice within our businesses. The overarching goal of the country’s B-BBEE programme is the upliftment of the South African economy. As Samsung, we have over the years focused on policies that are designed to empower South Africans in meaningful ways. Our vision for the country is therefore closely aligned with the Government’s B-BBEE policy.” Samsung’s transformation efforts are a clear indication of the company’s tremendous contribution to the achievement of the country’s overall B-BBEE goals and objectives. The key focus areas of Samsung’s overall B-BBEE philosophy and strategy (excluding the Ownership element, which is subject to EEIP) are centred on the following: The annual progression of race and gender representation at each occupational level, with specific emphasis on African male and African female representation. Increased focus on both employed learners and unemployed learners, supported by an emphasis on creating work experiences post the learnership/internship period — this is over and above Samsung’s EEIP commitments; Provision of education support through bursaries, both internally and externally. Continued focus on development of black talent in the Samsung South Africa business. Redirecting existing spend to qualifying Black-Owned and Black-Women Owned (BWO) Qualifying Small Enterprises (“QSEs”) and Exempt Micro Enterprises (“EMEs”) to include them in the existing procurement value chain of Samsung South Africa, with a focus on the following areas that have been approved: Marketing, Services, Sales, Logistics and Recruitment. Provision of grant and preferential loan funding to qualifying Enterprise Development beneficiaries, with the possibility of graduating them to become suppliers to Samsung South Africa. In addition to increasing spend with identified Supplier Development beneficiaries, the qualifying entities may be provided with grant and preferential loan funding; and Education-focused Socio-Economic Development initiatives through the Samsung Innovation Campus and Solve For Tomorrow competition umbrella as furtherance of the Samsung South Africa’s commitment to the upliftment of underserved communities. “Samsung knows that it is no small responsibility to realise the country’s long-term goals as this requires collective effort from citizens, corporate organisations and government. At Samsung, we believe that transformation is a business imperative and a requirement for the sustainability of our business. However, we are also convinced that concerted transformation efforts can have incredible socio-economic impact and lasting change in the country’s economy,” added Shivanda. About Samsung Electronics Co., Ltd. Samsung inspires the world and shapes the future with transformative ideas and technologies. The company is redefining the worlds of TVs, smartphones, wearable devices, tablets, digital appliances, network systems, and memory, system LSI, foundry and LED solutions. For the latest news, please visit the Samsung Newsroom at https://news.samsung.com/za/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/partner-content/2023-05-24-samsungs-continued-investment-in-south-africa-contributes-to-level-1-b-bbee-status-for-5th-consecutive-year/

According to the Employment Equity Act No. 55 of 1998, as Amended (EEA), if an organisation fits the definition of a ‘Designated Employer’, it is obligated to perform the duties outlined in sections 16 through to 26 of the Act. Failure to do this puts a Designated Employer at risk of having a fine imposed according to Schedule 1 of the EEA. Fines can range between R1.5m and 10% of an organisation’s turnover, depending on the type and number of contraventions. The EEA defines a Designated Employer as an organisation with 50 or more employees. Otherwise, it is a business with less than 50 employees but a turnover that exceeds the industry threshold as indicated in Schedule 4 of the Act, as follows: The gazetting of the Draft Amendments to the EEA is imminent. Following the gazette, the only criterion for being a Designated Employer will be 50 or more employees as the turnover thresholds will be removed. Until the gazette, those that are currently designated due to turnover must still comply. Before the 2013 EEA amendments (Act 47 of 2013), if a Labour Inspector found that a Designated Employer was non-compliant in performing its duties, the Department of Employment and Labour (DoEL) was obligated to follow a process which necessitated: Obtaining a Written Undertaking (EEA5); Issuing a Compliance Order (EEA6); and Applying to the Labour Court to impose a fine. In essence, Designated Employers had two opportunities to rectify any non-compliances before the DoEL imposed a fine. One of the most significant amendments to the EEA that came into effect on 1st August 2014 is that the DoEL no longer had to follow steps 1 and 2 as outlined on page 41. Thus, since then, the DoEL has had the immediate power to apply to the Labour Court to impose a fine. In most instances, the DoEL will still follow the process. However, there is a significant risk that a Designated Employer may not have the opportunity to rectify any non-compliance issues. Therefore, advice to Designated Employers is that they remain compliant at all times. During an inspection, the DoEL will assess whether a Designated Employer complies with the following duties in line with the EEA requirements: Sections 16, 17 and 18 outline the duty to consult with employees. For this purpose, a Forum must be established with a membership that includes representatives of recognised trade unions and nominated staff representatives from all EE levels, incorporating all race and gender groups as well as persons with disabilities. Amongst others, the role of the Forum is to assist in the analysis of a Designated Employer’s current situation – as per section 19 that follows. The Forum provides a platform for consultation on the Designated Employer’s EE Plan – as per section 20 that follows and the EE Report - as per section 21 that follows. The Designated Employer must disclose all relevant information to enable the Forum to perform its duties. During an inspection, a Designated Employer must provide proof of the consultation. The evidence must incorporate the nomination process, including how members were nominated and the minutes of meetings, which should occur at least quarterly. Section 19 obligates a Designated Employer to: Through analysis, identify any barriers in policies, procedures or practices which may adversely impact Designated Groups, namely African, Coloured and Indian People, as well as women and persons with disabilities, both of which include White People; Identify Affirmative Action measures to overcome any barriers identified; Ascertain the degree of alignment of its employee profile across each EE level with the most recently published Economically Active Population (EAP) statistics. A Designated Employer must record the results of the analysis on the EEA12 template. The complete EEA12 does not accompany the submission to the DoEL, but must be available if requested during an inspection. Section 20 stipulates that a Designated Employer must develop an EE Plan to address any barriers and under-representation of specific groups identified during the analysis required in section 19. An EE Plan guides transformation and must, at a minimum, follow the format of the EEA13 template, as follows: The duration of the EE Plan must be between one and five years and include the barrier analysis and Affirmative Action measures. It must indicate the time frames and the positions of the employees responsible for implementing the Affirmative Action measures. A Designated Employer must set numerical goals and targets to include the aspirational racial, gender and disability profile per EE level for each year of the plan. It must indicate strategies to achieve these goals and targets, such as recruitment and retention strategies. An EE Plan must include the process to monitor achievements against the objectives as outlined in the plan. Furthermore, a transparent process is required to resolve disputes arising from the interpretation and implementation of the EE Plan. It must further highlight the senior manager appointed in terms of Section 24 that follows. As with the EEA12, the EEA13 does not accompany the submission to the DoEL. However, it must be available during an inspection upon request. Section 21 requires a Designated Employer to report its EE progress to the DoEL annually. The core aim of this is to assess the implementation of a Designated Employer’s EE Plan. The deadline is 1st October if submitting the report manually; otherwise, online submissions must reach the DoEL by 15th January of the following year. For reporting purposes, a Designated Employer must complete and submit an EEA2 and an EEA4 form. The information necessary for the EEA2 form is as follows: A snapshot of the workforce profile on the last day of the Designated Employer’s chosen EE reporting period, categorised by EE level, race, gender and disability status. Workforce movement for the reporting period, including recruitments, promotions and terminations, again per EE level, race and gender. A breakdown of the Beneficiaries of Skills Development interventions. These must only include Beneficiaries who had training interventions with the core aim of achieving numerical goals, again categorised by EE level, race and gender. A summary of identified barriers, including an estimate of the dates when Affirmative Action measures are earmarked for implementation. > The EE Plan must include the persons responsible for implementing such Affirmative Action measures. An Income Differential Statement - EEA4. The aim is to identify unfair discrimination in employment terms and conditions between different groups performing work of equal value and must accompany the EEA2 submission. Sections 22 through to 26 stipulate that a Designated Employer must: Publish a summary of its EE Report - in the EEA10 format - in its Annual Financial Report as section 22 indicates. Develop a successive EE Plan before the current plan expires, as per section 23. Officially assign and provide a formal mandate to at least one Senior EE Manager overseeing the implementation of the EE Plan as per section 24. Inform employees about the provisions in the EEA, as well as the content of the EE Plan and EE Report. Such communication must include any legislative actions against the Designated Employer concerning the provisions of the EEA as per section 25. Keep accurate records of all EE related documents and data as per section 26. The following table outlines the various fines applicable for different contraventions of the above sections. It is important to note that fines imposed are per contravention. For example, ABC Traders, a Designated Employer with an annual turnover below its industry threshold, was found to be non-compliant with both the duties to develop an EE Plan and the constitution of an EE Forum. They continued across multiple inspections not to address these contraventions. The fines that the DoEL will impose on ABC Traders are outlined in the table below. If ABC Traders’ turnover was more than the industry threshold, the applicable fines would be heftier. In summary, a Designated Employer must consider all requirements and time frames so that it does not falter and expose itself to the risk of hefty fines. The following 12 steps guide Designated Employers in remaining compliant. Appoint an EE Manager; Establish an EE Forum; Perform an analysis; Develop an EE Plan; Consult on the EE Plan with the EE Forum; Finalise the EE Plan; Prepare the EE Report; Consult on the EE Report with the Forum; Report the progress in implementing the EE Plan to the DoEL; Publish a summary of the EE Report in the Annual Financial Statements. However, this only applies to publicly listed Designated Employers; Communicate Employment Equity-related information to employees throughout the process; and Keep accurate records relating to every aspect of the implementation processes. Following these steps will provide peace of mind that a DoEL inspection will go smoothly, with limited findings and recommendations; therefore, a Designated Employer will lessen the risk of penalties. A parting note: this article indicates the minimum requirements to protect a Designated Employer by ensuring compliance with the EEA. However, the focus should always be to move beyond mere compliance to transformation, which requires implementing measures over and above those outlined here. Moving above and beyond will nurture a changing environment with capacitated relevant stakeholders.

Pierre de Vos | 23 May 2023 Employment equity legislation helps to ensure that black applicants are treated fairly and to limit the appointment of less talented white applicants over more talented black applicants. Utilised well, it is a powerful tool in the fight against intellectual mediocrity and stagnation. The recent publication of draft regulations setting out compulsory employment equity targets at senior occupational levels for employers with more than 50 employees in targeted sectors of the economy attracted harsh criticism from, among others, DA leader John Steenhuisen and leaders of the Solidarity trade union (read here and here). While the draft regulations are, quite frankly, an incoherent mess, much of the above criticism is based on misleading or demonstrably false claims about the legislation. Let me start by showing my hand. While employment equity legislation can be exploited to justify nepotism and unlawful instances of “cadre deployment”, it is part and parcel of the pursuit for equality and a requirement for its achievement. As the Constitutional Court held in Minister of Finance v Van Heerden, it is wrong to depict redress measures as a form of “reverse discrimination”. Without taking positive action (including in the workplace) to “eradicate socially constructed barriers to equality and to root out systematic or institutionalised under-privilege”, we cannot eradicate discrimination. To this, I would add a personal insight, based on stints as the chair of the faculty transformation committee and as head of an academic department at a South African university, about the pivotal role employment equity legislation can play in levelling the playing field when appointments are made, and in enhancing the quality of teaching and scholarship in a university. In my experience, employment equity legislation plays a pivotal role in limiting the impact of racial bias in appointment decisions. It helps to ensure that black applicants are treated fairly and to limit the appointment of less talented white applicants over more talented black applicants. Utilised well, it is a powerful tool in the fight against intellectual mediocrity and stagnation. It is from this perspective that I view the draft regulations recently issued by the minister of labour in accordance with newly inserted provisions of the Employment Equity Act (not yet brought into force). Currently, the act requires all employers who employ more than 50 people to prepare an employment equity plan for periods of up to five years to “achieve reasonable progress towards employment equity in that employer’s workforce”. The plan must set out, among others, the employment equity targets adopted by an employer to be achieved for each year of the plan, as well as the affirmative action measures to be implemented as required by section 15 of the act. Slow progress Before the adoption of the amendments, an employer was free to choose its targets (based on race, gender and disability), as long as its plan would make reasonable progress to correct the effects of past and ongoing discrimination in the employment sphere. Because many private sector employers made very slow progress in addressing the effects of past (racial) injustice, Parliament amended the act last year to force employers to adopt more aggressive employment equity targets. The new section 15A of the act allows the minister of labour to identify specific economic sectors (such as agriculture, mining, manufacturing, education and construction) and to set numerical employment equity targets for these sectors at all occupational levels in the workforce. Designated employers in these sectors are required to use the sectoral targets set by the minister in their employment equity plans, and their progress will (partly) be assessed based on these “imposed” targets. These targets are to be set nationally as well as for each province, and employers have to follow either the national targets or the targets set for their province. The minister has now issued draft regulations identifying the relevant economic sectors and proposing the equity targets for each sector as envisaged by section 15A of the act. In response, DA leader John Steenhuisen complained that this would impose “forced quotas” in “every workplace, in every economic sector, in every province”; would “restrict” the employment of “Indians” and “coloureds” in a severe manner; claimed that “if companies don’t comply, they are severely punished”, and called on “companies, big and small, to defy a law that prevents them from hiring skilled people”. Solidarity claimed that the adoption of the regulation would result in 71,518 “coloured” people, 116,934 “Indian” people and 404,608 “white” people losing their jobs nationally. It also provided numbers for each sector, claiming, for example, that 50,363 “white” people (69.5%), 25,275 “Indian” people (79.4%) and 18,450 “coloured” people (45.4%) working in financial services would have to vacate their jobs in the next five years. None of this is true. First, the new targets do not impose “forced quotas” as claimed. Section 15(3) of the Employment Equity Act makes clear that in seeking to achieve its equity targets, employers are permitted to give preferential treatment to underrepresented groups and to set numerical targets to be achieved, but “may not impose quotas”. South Africa’s Constitutional Court highlighted this in its judgment in South African Police Service v Solidarity obo Barnard, and noted the act requires employment equity plans to be flexible and inclusive and that a “designated employer may not adopt an employment equity policy or practice that would establish an absolute barrier to the future or continued employment or promotion of people who are not from designated groups”. It is true that section 42 of the act empowers the director-general of the Department of Labour to assess whether a designated employer is implementing employment equity in compliance with the act by considering a wide range of factors which now includes (in terms of section 42(aA) “whether the employer has complied with a sectoral target as set out in terms of section 15A” of the act. But it would be unlawful for the DG to order the employer to meet its sectoral target if this was not reasonable in the circumstances. In any event, if the DG determines that an employer had failed to implement an employment equity plan because it had not met the sectoral targets, he or she would not be empowered to impose a fine or to order the employer to implement the targets. In terms of section 45 of the act, the DG will have to approach the Labour Court for an order directing the employer to comply with the request or recommendation; or to impose a fine. The DG bears the onus of proof that the employer had not complied with the provisions of the act. This is an important safeguard against possible abuse or misapplication of the law by politically aligned functionaries. This is well illustrated by the 2009 Labour Court judgment in Director General of the Department of Labour v Comair (one of the few reported cases in which the DG had concluded that the employment equity plan of an employer did not comply with the provisions of the act), where the court concluded that the DG had failed to take into consideration all the factors set out in section 42 of the Act, and dismissed the application. Non-compliance In the only reported case I could find where the Labour Court had fined an employer for non-compliance (the 2007 judgment in Director General, Department of Labour v Win-Cool Industrial Enterprise (Pty) Ltd), the court imposed a penalty of R300,000 on the employer, of which R200,000 was suspended on condition that the employer complied with its obligations within a specified period. As far as I can tell, the vast majority of cases of non-compliance brought to the Labour Court involve cases where an employer had failed to comply with the formal requirements set out in the act, and not where there was a failure to achieve targets set out in an existing employment equity plan. Not only does the evidence not back up Mr Steenhuisen’s claims of draconian enforcement, it suggests that since 2009, the department of labour has been extremely lax in holding companies to account for their failure to achieve even modest employment equity targets. It is also not clear what the legal basis is for the claim by Solidarity that many hundreds of thousands of people would lose their jobs if the new provisions of the act were implemented. The law currently does not provide for this, as the Labour Court held in Robinson & Others v PricewaterhouseCoopers that “affirmative action is not, and never has been legitimate ground for retrenchment”. While codes of good practice allow employers to consider their employment equity targets when offering voluntary retrenchment packages to employees — and also suggest that an employer could moderate the impact of mass retrenchments on its employment equity plan by using it as one of several considerations when identifying who should be retrenched — this does not allow an employer to dismiss an employee on the sole ground that this was required for the employer to meet sectoral targets set by the minister, as Solidarity suggests. That said, the draft regulations issued by the minister are a shoddy piece of work, and largely incomprehensible. There is no explanation provided to help us understand what the various targets for each sector and each occupational level might mean and how they would have to be applied. The targets are given in percentage format, but they do not add up to 100% or even close to 100%, and we do not know why this is so. Do the compilers of these tables know how percentages work, or is there a secret explanation for this oddity? It is also worrying that some of the targets are clearly impossible to meet, no matter how aggressively employers pursue these targets. For example, in the table for “top management” in the agriculture, forestry and fisheries sector, the proposed national targets are set as follows: “African” (30.4%), “coloured” (3.5%), “Indian” (1%), and “white” (8%) – thus a combined 43%. What happened to the other 57% of the workforce? Impossible to say. Given that the current workforce profile for this sector is given as “African (9.1%), “coloured” (5.8%), “Indian” (1.2%) and “white” (83.1%) – the latter is not a typo; 29 years after the advent of democracy, a full 83% of top managers in the field remain white – it is not clear that the compilers of this document took any notice of reality and considered what could optimistically be achieved. Unfortunately, this tardiness provides much ammunition for individuals and groups who oppose any measures aimed at correcting the effects of past and ongoing injustice or deny the impact of race on systemic and entrenched inequality in the workplace and in the broader society. But, fortunately, much of this criticism has been so over the top and so misleading, and even false, that the critics have just as much egg on their faces as the drafters of the regulations. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-05-23-draft-employment-equity-regulations-an-incoherent-mess-but-criticism-largely-based-on-false-claims/

Additional enhancements are available for organisations that procure from EMEs and QSEs with more than 51% ‘Black’ Ownership that are Supplier Development Beneficiaries. Paragraph 3.5 of Statement 400 states: “If a Measured Entity procures goods and services from a supplier that is: 3.5.1 A recipient of supplier development contributions from a Measured Entity under Code series 400 which has a minimum 3-year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; 3.5.2 A Black-owned QSE or EME which is not a Supplier Development beneficiary but that has a minimum 3-year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; and 3.5.3 A supplier to the Measured Entity that is at least 51% Black-owned or at least 51% Black Woman-owned utilising the Flow Through Principle, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2”. A reminder, a Supplier Development Beneficiary that elevates from an Enterprise Development Beneficiary allows an organisation to claim the 1 Bonus Point on offer. Enterprise & Supplier Development Services are available to guide Members on enhancements under Enterprise & Supplier Development.

A Needs Analysis is a formal, systematic process to identify and evaluate an organisation's business needs. It is specific to an individual or group of employees, customers, or B-BBEE Beneficiaries. Deficiencies identified in the outcome of such an analysis are often referred to as ‘gaps’. In other words, the difference between what is currently done and what should be done. A Needs Analysis is vital for rolling out a successful Enterprise Development or Supplier Development programme. The BEE Chamber has created a generic template that members can easily adapt to suit their circumstances. Enterprise & Supplier Development Services are available to assist members in creating a customised Needs Analysis template according to their gaps or needs.