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Michael Bagraim | 15 April 2023 Michael Bagraim writes that rules and regulations have been part of our society for thousands of years. Without adherence to these rules and regulations, the entire system will collapse, and the structure will not hold. Pictured- Members of Ulemasa protest outside the Chinese embassy, claiming that they are not following South Africa's labour laws. Photographer: Jacques Naude/African News Agency(ANA) The system of laws, including the regulations and structured environment, is needed to ensure that society runs smoothly and that proper governance prevents anarchy and a breakdown of the system. Rules and regulations have been part of our society for thousands of years. Without adherence to these rules and regulations, the entire system will collapse, and the structure will not hold. For these rules and regulations to be effective, we cannot only rely on the policing and enforcement of these rules. The law requires legitimacy, understanding and buy-in from the people who are going to be subjected to those laws. Notoriously, laws that are not respected and held in low esteem will find very little following. In our labour legal system, we are seeing less and less adherence to the various pieces of labour legislation. Legislation such as the Labour Relations Act and the Basic Conditions of Employment Act is the cornerstone of our labour legal system. We have other laws, such as Employment Equity, BEE and the National Minimum Wage. These laws are becoming less and less effective, specifically because those entities that are meant to adhere to these laws hold them in very low esteem and have no respect for them. For a law to be properly implemented, it needs to be legitimate, understandable and plausible. Furthermore, it is common knowledge that the Department of Employment and Labour have very few inspectors, who also happen to be ill-resourced. The entire enforcement environment is inundated and simply cannot cope with the amount of non-adherence. We have thousands of businesses that are daily breaking the law but have never seen an inspector. Clearly, this is not the way to ensure that the law is respected. The only way is to have laws that make sense and that are easily understood. Over and above this, the laws must be useful to both employer and employee. It is cheaper and more effective to ensure that we have labour legislation that is meaningful and fully understood. Once we have laws that are more acceptable, we then need to embark upon a campaign to educate the employment sector as to why the legislation is needed. On the other hand, laws such as the minimum wage are extremely difficult to explain to employers. The minimum wage legislation has led to mass unemployment in the sense that it is a handbrake to job creation. In other words, the minimum wage legislation has created a situation where employers have gone out of their way to rather look to mechanise, computerise and outsource. Over and above this, employers throughout the country appear to be in breach of the minimum wage legislation in many, many thousands of instances. In many of these instances, the trade union movement has turned a blind eye to the breach. The unemployment situation in South Africa is so dire that many of the trade unions have had pressure from their members to turn a blind eye to the minimum wage breaches. Likewise, it is compulsory to give employees contracts of employment and payslips. There is an extremely good reason why an employer would have to give a payslip and a contract of employment. Most employers don’t think this through and just ignore the law. In reality, if the Department of Employment and Labour chose to go out on an education campaign explaining why this paperwork is useful for both employer and employee, it would make an enormous difference. It is explained to employers that the contract of employment is a very effective tool in structuring discipline and adherence to the rules of the workplace. Former President Nelson Mandela said at the time of the implementation of the Labour Relations Act that the legislation should be simple yet comprehensive and easily understood by the workers – and everyone should understand the benefits. The current government, under the ANC, has made the legislation more and more complex and less and less understood. The current government appears to be punishing the employers of South Africa which, in turn, is to the detriment of future employment. * 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-anc-has-made-the-legislation-more-complex-and-less-understood-when-they-only-needed-to-keep-things-simple-43376ff1-b36a-4fd6-9cf9-1a928f882a3a

Duncan Masiwa | 15 April 2023 The cannabis industry in Mzansi is growing, however, it is essential that young people are included in its development. Photo: Supplied/CCC These are exciting times for cannabis in South Africa. And according to the chairperson of the Cannabis Community Council (CCC), it's essential that young people are given a chance to participate in the development of the industry. The future of cannabis production in the Western Cape looks bright. And according to Quanita Booley, chairperson of the Cannabis Community Council (CCC), youth inclusion ensures innovation and creativity. The Western Cape has been buzzing with conversations around cannabis production in the province and the rest of South Africa. On the back of the Western Cape department of agriculture recently unveiling its cannabis strategy for the province, Food For Mzansi caught up with Booley. Duncan Masiwa: Tell us a bit about the Cannabis Community Council. Quanita Booley: The Cannabis Community Council (CCC) is a non-profit organisation committed to promoting the interests of the cannabis industry in South Africa, with a focus on the inclusion of women, youth development, and marginalised communities. The CCC is a pioneering, dynamic and fresh platform where we focus on socio-economic development within the cannabis industry. We encourage transformation and inclusion for all. CCC believes that society should have free and equal access to trade and a participatory approach should be adopted in legislation change. Has South Africa nailed youth inclusion in the cannabis space? As the industry continues to grow, it is essential that young people are given the opportunity to participate in and contribute to its development. This will not only benefit the industry itself but also the wider society. The inclusion of youth in the cannabis industry will help to promote innovation and creativity. Young people often bring fresh perspectives and new ideas to the table, which can help to drive the industry forward and keep it relevant. This can lead to the development of new products, technologies, and business models, which can benefit both the industry and its customers. The inclusion of youth in the cannabis industry can help to ensure the industry’s long-term sustainability. Young people are the future of the industry, and it is essential that they are given the tools, skills, and opportunities they need to succeed. This will help to ensure that the industry continues to grow and thrive for years to come. When we make sure the beneficiaries of the developing cannabis industry are included at this early stage, we are able to alter the currently stigmatised perception of what this plant is to our society. Are we finally moving in the right direction with Western Cape’s new cannabis strategy? I was lucky enough to have been a stakeholder in the CanPlan, CCC representing civil society in the group of stakeholders who took part in the sessions. The process felt inclusive and our opinions were taken into consideration. The group was diverse and well-informed, most were industry experts and professionals. I do believe that we are moving in the right direction, it outlines the industry’s strengths and challenges clearly. We now have an unbiased suggestion for the way forward in Western Cape and we hope that the implementation of this plan is not delayed. Do the strategies contained in the CanPlan excite you? The CCC has been mentioned in the plan as the recommended industry stakeholder coordinator. There are many opinions and proposed plans for implementation, but our government has not yet been able to arrange all the stakeholders which make up civil society, the private sector and government bodies. When we are able to manage stakeholders and match their strengths to ensure an outcome that is beneficial for all of South Africa’s cannabis interests, we have a better chance of speeding up the policy-making process. What does the future of the industry in the Western Cape look like? Western Cape has a great advantage with tourism being so strong in the region, opportunities are great for cannabis tourism and all industries that branch from tourism, in general, can find ways to include themselves in these newfound opportunities. We have beautiful landscapes that are ideal for growing cannabis. Western Cape will have plans in place that include the development of its people, we will have skilled professionals who understand the plant. WC will be the “Mother of Cannabis Industry” nurturing a healthy relationship with this previously demonised plant in aid of remedying the socio-economic issues the province currently faces. Recreational cannabis will be accessible to locals and tourists through creative exchanges until we see the liberation of cannabis through full legalisation. A legal industry could also provide a new source of revenue for the Western Cape government. With this new source of income, we will be able to focus on the implementation of the solutions in and around the WC, both in the farming sector and outside of it, we are not limited. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.foodformzansi.co.za/cannabis-youth-vital-for-industrys-bright-future/

Phumla Mkize | 16th Apr 2023 NSFAS will be establishing regional NSFAS offices nationally. Pupil and student representative bodies have lauded the announcement that the National Student Financial Aid Scheme (NSFAS) will be opening regional offices in all nine provinces as of next year to better serve them. The South African Union of Students (Saus), which represents student representative councils of South Africa’s 26 universities, and the Congress of South Africa Students (Cosas), which represents pupils, have welcomed the news this week by Minister of Higher Education Science and Technology Blade Nzimande that NSFAS will have a regional footprint to improve service delivery. Nzimande told Sunday World: “We will start as of next year. If we can, this year.” Saus national spokesperson Asive Dlanjwa said the announcement was in line with calls by students. “It falls squarely on the proposals made by students. The office in Cape Town is inaccessible,” he said, adding that the most students interacted with NSFAS through its online services. “Another shortfall is that the majority of the services require technology and electricity,” he said, “though they are zero-rated, not everyone has access to them”. Dlanjwa said the regional offices would ensure students had access to services, especially those that come from rural areas and townships. Cosas head of media and publicity Kamogelo Maluleka said it also welcomed the move. He said many pupils had no access to information about NSFAS because they lived far from access to technology. “We have been waiting for NSFAS to expand its offices because some learners travel long distances just to access information on NSFAS,” he said. “Before we are students, we are members of the community. The offices will also provide employment and opportunities for those communities,” he said. Slumezi Skosana, NSFAS spokesperson, said the scheme was busy with due diligence on how to implement the expansion. He could not confirm where the first three offices would be situated, only saying that they would be operational next year. He said NSFAS was looking at various factors, some of which included the distribution of NSFAS applications, the centrality of locations to service multiple provinces and the students the scheme is targeting. Skosana said NSFAS also relied on student aid officers, who are employed at funding offices of institutions of higher learning, to assist with queries. “We have trained them on frequently asked questions about NSFAS, but students are still referred to us for assistance,” said Skosana. He said because some applicants relied on internet cafés, they were also exposed to the dangers of identity theft. “We are exploring different ways in which we can establish regional offices, including negotiating with institutions,” he said. Nzimande said NSFAS disbursed R47-billion in one year. “It is a huge responsibility. We still need to build more systems,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/education/nsfas-plan-to-roll-out-regional-offices-welcomed-by-student-bodies/

Andile Sokani - 13 April 2023 International organisations such as the World Bank have also emphasised the importance of skills audits in promoting good governance and effective service delivery in the public sector. Photo: Supplied In South Africa, the public sector plays a significant role in delivering essential services to citizens. As such, it is vital to ensure that the workforce within the public sector is skilled, competent and capable of delivering services efficiently and effectively. One way to achieve this is by conducting skills audits in the public sector. Skills audits in the public sector are crucial for South Africa’s development and other countries have already benefited from this process. In South Africa, there have been numerous calls for skills audits in the public sector to improve service delivery and address issues of corruption. Similar calls have been made in other African countries, including Zimbabwe and Kenya, where skills audits have been seen as a means of improving accountability and transparency in the public sector. International organisations such as the World Bank have also emphasised the importance of skills audits in promoting good governance and effective service delivery in the public sector. They have provided support to countries such as Cambodia, where a skills audit was conducted to identify skills gaps and develop a training and development plan for the public sector workforce. In the UK, the government’s skills audit was part of a broader initiative to modernise the civil service and improve service delivery. The Australian government’s skills audit helped to identify areas where training and development were required to improve service delivery and public trust in the government. Overall, the evidence suggests that skills audits are a valuable tool for improving service delivery, promoting transparency and accountability, and developing a skilled and competent public sector workforce. These benefits can help to address unique challenges facing South Africa’s public sector, including historical disadvantages, corruption and challenges in service delivery. By prioritising skills audits and developing workforce development plans based on the findings, South Africa can ensure that its public sector workforce is equipped with the skills and competencies needed to deliver services efficiently and effectively. Skills audits in the government are essential because they provide valuable information about the abilities and competencies of the workforce. They help to identify skills gaps or redundancies, and areas where training and development are required. By doing this, the government can allocate resources effectively and make informed decisions about workforce planning and development. Skills audits can also help to improve service delivery in the public sector. For instance, by identifying skills gaps, the government can prioritise training in these areas and ensure that the workforce has the necessary skills to provide quality services. This can lead to increased efficiency, improved service delivery and enhanced public trust in the government. Benefits of Skills Audits The benefits of conducting skills audits in the public sector extend beyond just improving service delivery and resource allocation. They can also promote diversity and inclusion in the workforce. Skills audits can help identify areas where there is a lack of diversity and provide insights into how to increase representation from under-represented groups. In addition, skills audits can help to identify opportunities for upskilling and reskilling of the workforce. With the rapid pace of technological advancement and changes in the economy, the public sector must have a workforce that is adaptable and equipped with the necessary skills to respond to changing circumstances. Furthermore, skills audits can promote accountability and transparency in the public sector. By conducting skills audits, the government can demonstrate its commitment to ensuring that public resources are being used effectively and efficiently. This can help to increase public trust in the government and promote good governance. South Africa faces unique challenges in its public sector, including historical disadvantages, high levels of corruption and challenges in service delivery. Conducting skills audits can help to address some of these challenges by promoting transparency, accountability, and efficiency. In addition, skills audits can provide opportunities to identify potential leaders and future talent within the public sector. This can help to develop a pipeline of skilled and capable individuals who can help to drive South Africa’s development and address its challenges. To ensure the success of skills audits in South Africa, it is crucial to involve all stakeholders, including government officials, employees and civil society organisations. This can help to ensure that the skills audit process is transparent, inclusive and reflects the needs and priorities of all stakeholders. Skills audits are crucial for the development of the public sector in South Africa. The government should prioritise conducting skills audits in all government departments to identify skills gaps and redundancies. Based on the findings, the government can develop a workforce development plan that prioritises training and development in critical areas. This will ensure that the public sector workforce is skilled, competent and capable of delivering services efficiently and effectively. Skills audits provide valuable information about the skills and competencies of the workforce, promote diversity and inclusion, and can help to address unique challenges facing the country. https://mg.co.za/thoughtleader/opinion/2023-04-13-how-the-government-can-use-skills-audit-to-strengthen-public-services/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Karl Gernetzky - 13 April 2023 Getty Images President Cyril Ramaphosa on Wednesday signed the Employment Equity Amendment Bill of 2020 into law, which will, among other things, empower the Department of Labour to set new transformation targets for industries, including regional ones, while also sparing many smaller businesses from the need to report annually. The bill amends the Employment Equity Act of 1998, which was implemented with an aim of preventing discrimination in the workplace and to address SA's history of structural exclusion on the basis of race. The new measures will promote diversity and equality in the workplace and require enterprises to develop transformation plans, while compelling labour inspectors to inspect workplaces and to issue employers with compliance orders, the Presidency said in a statement. Trade union Solidarity said on Thursday it was gearing up for a "huge legal battle" over the bill, which it said was unconstitutional, will keep businesses small, and cost thousands of jobs. "If there is no intervention, this government will carry on with its policy of ineffective centralisation and it will even go so far as to take over the human resources function in organisations," Solidarity CEO Dirk Hermann said in a statement. The DA said on Thursday it would join Solidarity's legal action, maintaining that the act wouldn't bring about transformation, but would rather enrich a number of politically connected individuals, while it would also reinforce the racial categorisation of the past. Business Unity SA (BUSA), meanwhile, welcomed the step, given that it ended a period of uncertainty but also formed part of the transformation agenda, and would help affirm social dialogue through meaningful dialogue on sector targets. BUSA, however, said it would continue to engage with the Department of Labour, given that some areas of the bill are still "problematic". This includes "concerns around the fragmentation of policy objectives and enforcement mechanisms within government, with some companies, because of their sectors, expected to comply with different transformation targets administered by different government departments or entities". The amended act allows the minister of employment and labour to set regional targets given that racial diversity in SA often has regional differences, the Presidency said. The law also requires employers with more than 50 employees to submit employment equity plans for their companies, spelling out how they will achieve these targets. Employers are then required to submit annual reports to the Department of Employment and Labour. According to law firm Cliffe Dekker Hofmeyr, the amendment significantly relieves the administrative burden on these smaller employers, which can still seek compliance certificates if they are looking to do business with the state. The firm said the new changes in terms of allowing for setting numerical targets was, importantly, a discretionary power which requires consultation with the relevant sectors and advice of the Employment Equity Commission. "The outcome of this exercise should ideally result in the minister setting numerical targets based on the reality of the sector, the composition of the workforces within the sector, and the shifting needs for certain skills or proficiencies. This means that the target should neither be arbitrary nor rigid," it said. https://www.news24.com/fin24/economy/ramaphosa-signs-new-employment-equity-act-into-law-which-solidarity-gears-up-to-fight-20230413 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

LUYOLO MKENTANE - 13 April 2023 Employment & labour minister Thulas Nxesi. Picture: FREDDY MAVUNDA Business and labour have welcomed President Cyril Ramaphosa’s signing into law on Wednesday of the Employment Equity Amendment Act, allowing employment & labour minister Thulas Nxesi to set workplace transformation targets. The legislation is aimed at accelerating transformation in the workplace by putting clear targets in place, and empowers Nxesi, in consultation with sector stakeholders, to introduce sector-specific employment equity targets. The government previously had no real targets as the Employment Equity Act required only “reasonable progress” in terms of workplace transformation. According to data from the latest Labour Market Dynamics, compiled by Stats SA, black African men and women had the highest unemployment rate compared with those of other groups while the white population group had the lowest unemployment rate in 2016 and 2021. The study found that men are more likely to be employed regardless of race. Business Unity SA CEO Cas Coovadia said the amendment act ends a “long period of uncertainty on the proposed changes and impact of our transformation laws”. He said Busa was pleased that the minister will set employment equity targets for sectors “only after consultation with the relevant business and employer bodies”. “In our view, meaningful consultation on sector targets affirms social dialogue and will ensure the relevance of the set targets,” said Coovadia. “Busa is, however, aware that some aspects of the law remain problematic, as the organisation had raised in parliament during the public hearings process in 2021 and 2022. For example, measuring compliance and issuing compliance certificates as a licence to do business with the state will depend on whether a company has met its targets and does not have a case of unfair discrimination raised against it at the CCMA [Commission for Conciliation, Mediation and Arbitration] or labour court in the previous 12 months.” Coovadia said Busa is concerned about “treating targets as quotas, which would be against the spirit and letter of the law anyway”. “Companies should not be subjected to double punishment by the CCMA or labour court and the department of employment and labour for the same issue, which could lead to unnecessary litigation and derail our objective of transformed workplaces,” he said. Cosatu parliamentary co-ordinator Matthew Parks said the labour federation, a key ally of the ANC, welcomed the signing of the act into law. He said the law provides “badly needed interventions to strengthen government’s ability to hold employers accountable for their role and failures to adhere to the Employment Equity Act”. “Cosatu urges the department of employment and labour to move with speed to ensure the promulgation and implementation of these long overdue provisions,” Parks said. “Organised business must do its bit to ensure employers are aware of these new requirements. Cosatu will be working with its affiliates, endeavouring to empower shop stewards and workers on this progressive amendment act.” Meanwhile, Solidarity said it will challenge the “unconstitutional” law which granted “draconian” racial powers to Nxesi. Solidarity’s legal team will serve court papers soon. The presidency says the law is intended to advance transformation of the country’s workforce by setting employment equity targets for economic sectors and geographical regions, and requires enterprises to develop transformation plans. Employers with more than 50 staff must submit employment equity plans, specifying how they will achieve the targets. Employers must also submit annual reports to the department. Solidarity said it informed Ramaphosa of its views on August 23, obtained legal opinion confirming its stance and had made submissions to parliament. “The president is ... aware that Solidarity would go to court should he sign this act into law. This is precisely what he has now done. We are now preparing for court,” said Solidarity CEO Dirk Hermann. The union said the amended act empowered the minister to undertake centralised racial planning at his or her discretion. “This would be the most drastic race-manipulating legislation in the world.” Solidarity expects the private sector will have to follow the state’s example. “Private enterprises will become state-run racial enterprises,” Hermann said. The law will also have dire consequences for the economy, he said. “New definitions of ‘designated employers’ will force small businesses to remain small and will cost thousands of jobs. “Any promotion opportunities for those fortunate enough to keep their jobs will be completely stopped. This will mean that the skills exodus will merely be accelerated. SA’s economy, like its public service, will become increasingly trapped in a spiral of inefficiency, contraction and imminent collapse.” Hermann said the state’s obsession with race must be opposed. https://www.businesslive.co.za/bd/national/2023-04-13-business-and-labour-welcome-employment-equity-amendment-act/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

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The most significant risk to an organisation meeting its Preferential Procurement targets is fraudulent B-BBEE Certificates and Affidavits. They not only go against the spirit of B-BBEE, but they put an organisation at risk, as fraudulent B-BBEE Credentials only reveal themselves at the time of an organisation’s B-BBEE Verification. If any members have suspicions about B-BBEE Credentials currently on any Entity, Certificate Collection Services are on hand to assist with verification of their authenticity.

Critical points are lost on the Preferential Procurement Scorecard of many organisations, as they are unfamiliar with the requirements of the Sector Codes of Good Practice. For example, if a supplier operates in the tourism sector and then presents a B-BBEE Certificate or Affidavit based on the Generic Codes of Good Practice (Generic Codes) instead of the Tourism Sector Code, it is invalid. Unfortunately, the extent to which this happens only reveals itself at the time of an organisation’s B-BBEE Verification. A supplier may not choose the Code against which they are measured. The rule is that an organisation qualifies to be measured on the Code of the sector from which most of its income is derived. However, confusion often reigns when suppliers present B-BBEE Credentials across sectors. For example, ABC Construction is an organisation measured on the Amended Construction Sector Code. They book accommodation at the XYZ Hotel. The B-BBEE Credentials presented for the accommodation must reflect the Amended Tourism Sector Code against those criteria. The procurement person at ABC Construction should know that XYZ Hotel’s B-BBEE Credentials must align with the Tourism Sector Code. In addition, it is imperative that those in procurement are aware of the turnover thresholds, targets, and the Weighting Points of all sector codes, as they, in some cases, differ from the Generic Codes. Enterprise & Supplier Development Services are available to guide organisations in addressing challenges in procuring across sectors.

As per Paragraph 3.1 statement 300 , the Generic Codes of Good Practice, Skills Development only award points if an organisation directly implements Priority Skills for 'Black' People. Although it does not require that all training aligns with Priority Skills, they must form part of a Skills Development intervention. Therefore, Bursaries within a Measurement Period must align with the needs of an organisation's core services and Priority Skills identified by the sector in which they operate. Consequently, during a B-BBEE Verification, when measuring Bursaries, indicators are assessed per line on the scorecard to ascertain whether Priority Skills form part of the criteria. Therefore, category B, C and D Skills programmes and Bursaries must align with sector-specific Priority Skills requirements. Skills Development Services are available to guide members in identifying Priority Skills relevant to the sector in which they operate.

Nokukhanya Mntambo - 13 April 2023 Picture: Eyewitness News JOHANNESBURG - President Cyril Ramaphosa will have the tough job of bringing investors on board as the country's Investment Conference rolls around for a fifth and final time in Sandton on Thursday morning. Ramaphosa is expected to parade South Africa's business potential in a bid to achieve its optimistic target of R1.2 trillion in five years. While the target was initially thought to be overzealous, the country now looks set to exceed it. The investment drive in 2022 pulled an impressive R1.1 trillion in pledges. Some of these pledges are yet to materialise, with about 40% of the commitments having been finalised. In the final leg of 2023, the country needs a small push to meet the five-year target. Team South Africa is expected to rely on its strategic importance in the African region and promise economic recovery and reconstruction to draw in investors. While the country remains a favourable tourist destination, Ramaphosa might still have to convince some investors believed to be spooked by the country's woes. This includes power cuts that continue to cripple the economy, low economic growth, poor consumer sentiment, and some policy uncertainty. Crime and corruption also threaten the country's profile, with the elaborate prison escape of rapist and murderer Thabo Bester further smearing the country's image. Considering this, team South Africa remains adamant it can clean up its image. https://ewn.co.za/0001/01/01/sa-investment-conference-ramaphosa-facing-tough-job-to-bring-investors-on-board ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Staff Writer - 12 April 2023 Trade union Solidarity says that it is preparing for a huge legal battle over the new Employment Equity Act. This comes after president Cyril Ramaphosa signed the Act into law on Wednesday (12 April). Solidarity has maintained that the amendments are unconstitutional and wrote to the president in August 2022, objecting to the laws. “Solidarity also obtained legal opinion which confirms this, and it has made submissions to this effect to Parliament,” it said. “The president is therefore aware of the fact that Solidarity would go to court should he sign this Act into law. This is precisely what he has now done, and we are now preparing for court,” said Solidarity chief executive, Dirk Hermann. According to Solidarity, the legislation “grants draconian racial powers to the minister (of employment and labour)”. Under the country’s new laws, the minister is empowered to set specific employment equity targets across various sectors and regions, and businesses who qualify as ‘designated employers’ will be required to establish employment equity plans to meet these targets. Designated employers are defined in the new Act as businesses who employ more than 50 people. These businesses will also have to do annual reporting on these measures. Further, to do business with the state, these employers will have to receive a certificate that indicated they are compliant with the laws. However, designated employers will be required to comply with the laws whether they intend to do business with the state or not. “The minister can now do central racial planning at his own discretion. This would be the most drastic race-manipulating legislation in the world. It is anticipated that the private sector would have to follow the state’s example. Private enterprises will become state-run racial enterprises,” Hermann said. Solidarity said it is of the opinion that this Act is unconstitutional and that it is, moreover, directly contrary to an earlier finding of the South African Human Rights Commission (SAHRC) which indicated that, even in its current format, South Africa’s racial legislation is unconstitutional and not in accordance with international norms and values. “This Act which imposes race targets on all sectors will have dire consequences for our economy. New definitions of ‘designated employers’ will force small businesses to remain small and will cost thousands of jobs,” Hermann said. “Any promotion opportunities for those fortunate enough to keep their jobs will be completely stopped. This will mean that the skills exodus would merely be accelerated and South Africa’s economy – like its public service – will become increasingly trapped in a spiral of inefficiency, contraction and imminent collapse. “The state’s obsession with race must be opposed at all costs. We simply cannot afford it not to do so. Without intervention, this government would pursue its policy of ineffective centralisation, even going so far as to take over the human resource function in organisations,” Hermann said. Solidarity said its legal team has started to prepare for litigation and has indicated that it will serve its court papers soon. https://businesstech.co.za/news/government/679709/south-africas-new-transformation-laws-already-facing-legal-challenge/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.