top of page

Search Results

Search this site

1935 results found with an empty search

  • BIG CHANGE FOR EMPLOYEES IN SOUTH AFRICA NEXT MONTH

    Staff Writer | 11 March 2025 Legal experts say the pool of “protected” employees in South Africa could expand next month, with the national earnings threshold being lifted to R261,748 per annum. The earnings threshold represents the point at which employees are protected by the Basic Conditions of Employment Act (BCEA), as well as provisions in the Labour Relations Act (LRA) and Employment Equity Act (EEA). Employees earning above the threshold—which equates to around R21,800 per month—are not entitled to certain protections afforded to those earning below it. According to legal experts at Webber Wentzle, the purpose of the threshold is to ensure greater protection for more vulnerable employees earning below a specified income. “The increase in the threshold is a noteworthy development, as it may expand the number of employees entitled to stricter protections under labour legislation, such as overtime pay,” the firm said. The threshold increase amounts to just under R7,400 for the year, or a 2.9% increase from 2024, in line with inflation. While most businesses tend to give inflation-linked increases to salaries each year, Webber Wentzel warned that any employer that has not hiked wages in line with inflation may now have more employees who qualify for BCEA protections. “Employers may face financial implications, as they may now be required to comply with additional BCEA protections for employees who now fall below the new threshold,” it said. “Employers should take heed of the new threshold, as understanding which employees fall below it is essential to minimising the risk of non-compliance with the BCEA.” The protections under the BCEA relate to regulating ordinary hours of work, overtime, meal intervals, daily and weekly rest periods, Sunday pay, night work pay, and public holiday pay. Employees earning above the threshold are not automatically protected under these provisions and typically have to negotiate these with their employers. Employees earning above the threshold are also precluded from referring unfair discrimination disputes under the EEA to the Commission for Conciliation, Mediation, and Arbitration (CCMA) unless the dispute relates to sexual harassment or all parties agree to arbitration. Webber Wentzel said that such disputes must instead be referred directly to the Labour Court for adjudication. What counts as earnings? The definition of ‘earnings’ to calculate whether an employee falls above or below the threshold, refers to an employee’s gross annual remuneration before deductions, including tax, UIF, medical aid, and pension contributions. Notably, ‘earnings’ in this context differs from the definition of ‘remuneration’ under the Ministerial Determination on the Calculation of Employee’s Remuneration in terms of section 35(5) of the BCEA, the legal experts noted. Further, employers who use “atypical” employment arrangements—such as commission-based earning, gig earning or piece/causual work—should also review these arrangements to ensure ongoing compliance with the BCEA and avoid consequences. This is in addition to the new National Minimum Wage requirements, which also pose risks to employers of atypical workers. Legal firm Cliffe Dekker Hofmeyr highlighted a recent court case involving a company that tried to shirk its duties in paying casual workers. The ultimate message in the case was that employers cannot implement ‘creative’ ways to get around paying the National Minimum Wage to workers. The NMW and BCEA apply to all workers, with few exceptions. In terms of these two laws, even where a worker works for less than four hours on any day, they must be paid for four hours’ work on that day if they earn below the new earnings threshold. From March 2025, this equates to a minimum of R115. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/816191/big-change-for-employees-in-south-africa-next-month/

  • BROKERS MUST TAKE CHARGE OF THE SUBJECTIVITY DEBATE

    Gareth Stokes | 10 March 2025 Policy subjectivities remain a major bugbear for South Africa’s short-term insurance intermediaries. The term refers to inconsistencies across the insurer-set conditions or requirements that must be met for cover to apply, with different interpretations contributing to uncertainty for brokers and their clients. A condition and exclusion free-for-all Inconsistent policy wordings, varying exclusions, and underwriting discretion are making it difficult for intermediaries to provide clear, reliable guidance to insureds, let alone compare quotes across primary insurers. And the problem does not end there. In the past, multi-insurer placements, typical for large commercial projects, were more predictable because the secondary insurers typically followed the lead underwriter’s terms. Nowadays, each insurer may choose to apply its own exclusions and conditions.  Sam Williams, Head of Legal and Regulatory Affairs at the Financial Intermediaries Association of Southern Africa (FIA), highlighted policy subjectivities as a top challenge for the association’s non-life insurance broker members. “We have been working with the Financial Sector Conduct Authority (FSCA) for over two years to try and find a solution to this problem; it goes beyond grid exclusions to include challenges around cyber, climate, and a growing list of policy exclusions,” she said during a regulatory update to the Natsure Annual Partner Conference, held in Pretoria recently.  Some commentators felt the South African Insurance Association (SAIA) was best placed to address the policy subjectivities issue; but the association has declined to get involved, relying on the often used ‘such discussions would contravene the country’s competition legislation’ defence. The FIA decided to take a slightly different approach, engaging the FSCA on the possibility of South Africa developing a standard policy wording framework similar to that used by insurers in the United Kingdom (UK). The FSCA has, in turn, met with the Competition Commission to test the waters on the FIA’s proposal.  Intermediaries to lead the discussion? “For our members to give the best possible advice to their clients, it is paramount that we address the lack of clarity that emanates from recent policy wording changes,” Williams said. Aside from policy subjectivities, the non-life insurance sector is also struggling with the protection gaps created by the blanket withdrawal of insurance covers for pandemic and other uninsurable risks. After discussing the matter with government and SAIA, the FIA feels intermediaries should take the lead by documenting an approach and then seeking industry comment.  The complex environment described in the preceding paragraphs explains recent evolutions in risk advice; brokers have had to graduate from advising on insurance solutions to advising on risk posture. “We cannot just be advice givers anymore; we really have to focus on the risk management element,” Williams said. The association is leading efforts in this space, with plans to introduce four CPD-accredited risk management training modules for its members. These modules will cover risk management from both the brokerage and client side and give brokers an edge in identifying, analysing, and mitigating risks.  The regulatory update reflected on a number of general legislative changes that apply across the advice disciplines that FIA members engage in. First and foremost, the FIA is lobbying the Department of Employment and Labor (DEL) on the financial sector employment equity targets communicated by the DEL on 11 February 2025. “These targets, which impact entities employing 50 or more employees, showed a substantial increase from what was presented in February last year,” Williams said. Firms will have five years to comply.  An impossible five-year target The FIA is concerned that intermediary businesses are being subject to the same targets as banks and insurers. It has since completed a benchmarking exercise comparing some of its larger members against the economically active population, and submitted this research to the DEL. “Transformation is a fundamental imperative for the FIA and for South Africa as a whole; but we cannot be expected to reach the targets that the DEL are proposing from where we are today,” Williams said. The DEL has agreed to a bilateral engagement with the FIA on the issue.  You cannot discuss financial sector regulation without the Conduct of Financial Intermediaries (COFI) Bill receiving some airtime. According to Williams, National Treasury has been distracted by other priorities, not least of which tackling the Financial Action Task Force (FATF) grey-listing sticking points. “COFI is going to be a more solid change for the industry once it comes; it is going to move us towards a more outcomes based approach to legislation, and a less prescriptive regulatory focus,” she said.  The delay in tabling COFI in Parliament is a setback; but the FSCA does have wide powers under the Financial Sector Regulation (FSR) Act to push ahead with Conduct Standards. The regulator has established a COFI Transition Working which is progressing various matters, including Fit and Proper Requirements through a dedicated sub-committee. These committees are considering the next steps to progress from the current Financial Advisory and Intermediary Services (FAIS) Act to a new COFI dispensation.  Welcome respite from the Omni CBR It seems the regulator needs clarity on the compliance and Fit and Proper requirements under COFI before they can finalise the COFI licensing framework. The FIA is confident that 80% of the issues will be addressed before everything comes back to the intermediary industry for comment.  Another pending regulatory intervention is the so-called Omni Conduct of Business Reports (Omni CBR). The FSCA has since distanced itself from the quarterly reporting requirement and will revisit the scope of the returns in their entirety. The fact the regulator is considering a more risk-based approach will not significantly reduce the eventual compliance workload, which will have to be shared across the business.  Williams encouraged intermediaries to pay close attention to the Guidance Note on Direct Marketing recently published by the Information Regulator. This note offers guidance to responsible parties on how personal information should be processed in compliance with a number of conditions for its lawful processing, as well as the overall interpretation of the Protection of Personal Information Act (POPIA) in relation to direct marketing.  Compliance or bust “As brokers, you should familiarise yourselves with the contents of this notice because you do not want to [err in an environment where] regulators are looking for quick wins,” she concluded. For those feeling overburdened or overwhelmed, the closing advice: “Rather have some awareness of emerging regulations, and familiarise yourselves with them, than being caught completely unaware and falling foul of the regulator; the cost of failing to comply is far greater than the cost of compliance.”  Writer’s thoughts: Policy subjectivities and the growing list of cover exclusions are making it nearly impossible for South Africa’s short-term brokers to operate effectively. Should intermediaries take the lead in demanding standardised policy wordings? ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.fanews.co.za/article/intermediary-bodies/27/fia-financial-intermediaries-association/1156/brokers-must-take-charge-of-the-subjectivity-debate/41189

  • BMF DENOUNCES WORLD BANK STATEMENT TO ROLL BACK B-BBEE

    The Office of the Presidency | 6 March 2025 The Black Management Forum (BMF) denounces the World Bank’s recent statement that South Africa should roll back its broad-based black economic empowerment (B-BBEE) labor policies in order to make South Africa more attractive to foreign investors. The World Bank claims that black economic empowerment is an ‘excessive regulatory burden’ and that the policies need to be overhauled in order for South Africa’s economy to grow. This narrative suggests that B-BBEE is the stumbling block to economic growth and is oblivious of South Africa’s history of colonialism and apartheid which disenfranchised the black population and led to vast discrepancies in income, employment and general welfare, and which has made South Africa one of the most unequal countries in the world. The World Bank’s remarks, as well as remarks by global business leaders such as Elon Musk, and recent withdrawal of US AID from South Africa all points to the critical shortage of public education around what B-BBEE is and its necessity in the South African context. The BMF recommends that the Presidential B-BBEE commission utilise its role to fill this educational vacuum, so it does not further hamper the painstaking strides that have been taken to bring social transformation to our country. Black South Africans are an overwhelmingly majority population and constitute 81.4%. However, black South Africans are also overwhelming marginalised from economic participation. The unemployment rate is around 32% and disproportionately impacts black individuals. Furthermore, around 28 million are dependent on welfare because they lack access to the means to access economic opportunities. B-BBEE policies provide direct support, grants, tax rebates, employment and training to black individuals and businesses to help mitigate the structures and systems that are exclusionary, and which hinder economic participation. Importantly, the World Bank neglects to realise that black economic empowerment is not about racial preference: it is about economics. If the economy is not inclusive of 81.4% of its population, the economy will not grow, and it is exactly because South Africa has been obediently following neoliberal policies that this majority has been marginalised. The rise of the kasi economy, stokvels and ahost of other informal economic activities have arisen from the discrimination of customary economic activities for global free trade. Today, those activities are valued at billions of rand. The formal economy, that has been dictated by international financial institutions such as the World Bank, have failed the black majority and through their own ingenuity they have created parallel structures of economic prosperity. Informality has provided affordable goods and services, jobs, allowed black businesses to flourish and grown black communities. In order to grow the stagnant South African economy, South Africa must leverage its unique strengths, such as its kasi economy and its burgeoning black middle-class and not abandon it by rolling back on B-BBEE. It is only by embracing an inclusive and transformative economy that is proudly South African that we will get out of the economic disarray that we are in. BMF, therefore, strongly encourages the government to continue its black economic agenda. Little value has come from South Africa’s flexibility to attract foreign investment. Instead, the country has been left to question the role of foreign investment. Globalisation has bypassed the state and, internationalism has given rise to global civil society, global governance and global justice. Our state functions as part of a global community comprising of extra governmental and transnational actors in a multi-layered, global political stage of supranational governance. The concept of good governance as determined by international organisations is often in conflict with national laws, as well as traditions and customs, and serve foreign rather than domestic interests. The World Bank has extended its reach to the economic, social and political realms of states serving as a ‘governor to governments. Economically, the World Bank claims to have a comparative advantage in providing analysis, evaluation, advice and finances to governments to reform their economies. It dictates macro economic policy choices such as the use of resources, budget, policy formulation, poverty reduction strategies and participatory strategies. It monitors economy-wide reform, public expenditure and sector reform in over 100 countries and changes rules, regulations and investment strategies. By continuing to allow the World Bank free reign to reform our rules, regulations and access our public information, we allow the Bank to use South Africa to serve the agenda of foreign capital at the cost of domestic prosperity. Until we make significant strides to distance ourselves from foreign demands, our domestic economy will continue to be exploited and our national agenda to end poverty, unemployment, and inequality will never be achieved. We need to skillfully navigate global trade in away that keeps our priorities as the main focus. While market triumphalism ended with the financial crisis of 2008, the neo-liberal agenda continues to be expanded into social spheres of life and has eclipsed public spaces. South Africa is deeply involved in a world economic system that dictates national responses leaving little room for it to pursue alternatives. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://bmfonline.co.za/media-release/bmf-denounces-world-bank-statement-to-roll-back-b-bbee/

  • MENTAL HEALTH CHALLENGES IN THE WORKPLACE CONTINUE – BALANCING EFFICIENCY WITH EMPATHY

    Sian Gaffney | 6 March 2025 As mental health cases in the modern workplace continue to rise, many South African employers face a growing challenge: striking the delicate balance between remaining sensitive to mental health concerns raised by employees and taking reasonable steps to address them, and maintaining operational efficiency . The challenges South African employers may face several challenges when dealing with mental health in the workplace. Examples of these challenges include: Stigma and delayed disclosure: Applicants and employees may be hesitant to disclose their mental health struggles prior to or upon commencement of employment due to fear of stigma, discrimination, non-appointment or job loss. This can lead to a delayed disclosure of the mental health concerns by employees, which we frequently see raised by employees when they are failing to meet performance standards and are placed under performance management. In turn, this can place additional obligations on the employer that it may not be operationally prepared for. For instance, significant time and resources may have already been spent by the employer on coaching, training and other forms of support in the context of a performance management plan, when in reality, what the employee needed was mental health support and accommodation. This means additional resources. Lack of resources: The reality is that many South African businesses, particularly small and medium-sized enterprises (SMEs), may not have adequate resources to provide extensive mental health support and workplace accommodations due to, for example, the size and nature of the workplace. Therefore, employers in these circumstances are often placed in a stressful position when employees raise mental health concerns as the viable accommodation measures available to them are limited. Productivity and performance: Employers, particularly smaller businesses, may struggle to balance maintaining operational efficiency and complying with their legal obligations to reasonably accommodate employees who are unable to perform optimally due to mental health concerns. For instance, where an employee is frequently absent due to mental health issues, or where their responsibilities have been reduced to accommodate the concerns, this may result in key resource gaps which impact business operations and workplace morale as it may place additional pressure on other staff members. Employees on probation: Mental health concerns raised by an employee as a reason for underperformance during the probation period can be particularly difficult to navigate. In such a case, an employer cannot simply performance manage the employee in the ordinary course and will need to consider ill health accommodations, but to what extent? This can become complex as there are various factors that an employer may need to consider, such as extending the probation period, reducing workload, permitting additional time off and the overall impact of this on its operations and other staff members. Fear of litigation and reputational damage: Some employers tend to panic when mental health concerns come to the fore as there seems to be a common misconception that an employer needs to accommodate an employee’s ill health in all respects, regardless of its operational needs, failing which it will be sued and/ or be labelled as insensitive to the mental wellbeing of its staff. Without detracting from the seriousness of mental ill-health (or any form of ill health) in the workplace, this misconception can lend itself to abuse by employees who falsely claim mental health problems in the face of misconduct or poor performance allegations, making the employer apprehensive to take further action. It is therefore important that a proper investigation be done to ascertain the true cause of the employee’s poor conduct in the workplace and that each case be dealt with on its own merits. Legislative compliance: South African labour law offers various protections to employees facing ill health concerns, including the Employment Equity Act, the Labour Relations Act and the Occupational Health and Safety Act. Employers must ensure compliance these laws when dealing with mental health cases and at the same time, ensure commercial fairness and efficiency. Striking a balance To address these challenges, employers should aim to strike a balance between maintaining efficient business operations and reasonably accommodating employees who are mentally unwell (with dismissal as a last resort). In this regard, it is important to note that the law does not require an employer to do everything in its power to accommodate the employee’s mental health issues in the workplace, only accommodations that are reasonably and operationally practicable are required. Some strategies to achieve the desired balance may include the following: Create a supportive work environment: Foster an open and inclusive culture that encourages employees to disclose their mental health struggles without fear of stigma or reprisal. Provide reasonable accommodations: Depending on the nature and extent of the mental health concerns and the employer’s business, reasonable accommodation to support employees with mental health conditions may include flexible work arrangements, modified duties, or temporary leave. However, such accommodations need to be reasonable and possible in relation to what is operationally viable for the business in question. Establish clear policies and procedures: Establish a policy that outlines procedures for addressing mental health issues, providing support, and ensuring compliance with relevant laws and regulations. Document and record keeping: Keep records of all documents, meetings, and correspondence in relation to each case raised, including medical certificates, sick leave records, and any workplace accommodations that have been implemented. Medical certification and validation: Require medical certificates from a qualified healthcare professional for frequent absences, or absences longer than two days to establish whether the employee is fit to work and validate such certificates where appropriate. This will also provide some guidance on what accommodations, if any, can be made. Train managers and employees: Provide training on mental health awareness, recognition, and response to ensure that managers and employees are equipped to investigate and assess cases of mental ill health and support colleagues with mental health conditions. Addressing mental health in the modern workplace requires a nuanced and multifaceted approach. By implementing the above strategies and being adequately prepared, employers can strike the balance of creating both a fair and supportive work environment that benefits both the employee and the organisation. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/mental-health-challenges-in-the-workplace-continue-balancing-efficiency-with-empathy-2025-03-06

  • WE WANT MORE INVESTMENT BUT WE WILL NOT RELAX BBBEE, CONSTRUCTION SECTOR CHARTER COUNCIL SAYS

    Darren Parker | 4 March 2025 In response to the World Bank’s recent recommendation that South Africa relax its increasingly stringent and highly prescriptive broad-based black economic empowerment (BBBEE) laws to attract greater private-sector investment in the country, Construction Sector Charter Council (CSCC) executive member Gregory Mofokeng has simply said, “No”. Speaking at the Built Environment Indaba, in Sandton, on March 4, he told investors that, if they want to invest in South Africa, they will have to embrace BBBEE or take their money somewhere else. However, at the same event, BBBEE proponents decried the lack of investment in the built environment sector, among other sectors of the economy, insisting that no amount of moral grandstanding would create jobs – only increased investment could achieve this. “There will be no infrastructure development in any country if we don't have investment. It’s that simple. We can talk as much as we want. We can meet government Ministers on a daily basis, have good discussions and leave the meeting impressed with each other, saying we’re definitely going somewhere. But if there is no support for capital, nothing is going to happen,” Black Business Council in the Built Environment (BBCBE) deputy president Bafana Dube said. For context, it should be noted that numerous foreign would-be private sector investors have complained that South Africa’s BBBEE policies are anathema to a favourable foreign investment environment – the World Bank being only the latest example. In 2018, the EU expressed reservations about South Africa's BBBEE ownership rules, deeming them "unfairly onerous". As a condition for increasing investment, the EU requested a relaxation of these rules, indicating that the stringent requirements could deter potential investors. There have also been instances where foreign investors resorted to international arbitration, alleging that South Africa's BBBEE policies violated bilateral investment treaties. For example, Italian investors filed a case in 2007 citing breaches related to these empowerment initiatives. Famously, in February, billionaire businessperson, Tesla and Starlink owner and CEO Elon Musk – who was born and grew up in South Africa – expressed interest in launching Starlink in the country, stating that he was "still waiting for regulatory approval" after carrying out successful launches in neighbouring countries. The Starlink project would have brought low-cost high-speed Internet access to all South Africans, which would have been particularly beneficial for rural and underserved regions lacking reliable terrestrial infrastructure. However, he did not agree with the local ownership requirements that would have to be met. In many other African countries, Starlink has positioned itself as a cost-effective alternative to existing Internet providers. For instance, in Ghana, its services are reportedly half the price of leading local internet service providers, making high-speed Internet more accessible to a broader population. Further, on February 6, Musk’s SpaceX officially withdrew from regulatory hearings led by the Independent Communications Authority of South Africa for similar reasons. There are numerous other examples of investors pulling back from doing business with South Africa owing to the country’s stringent race-based economic policies, which seek to redress historic economic injustices committed more than 30 years ago. “30 years into democracy, when you look at the state of transformation, we're not yet there. The question is then, where are we failing? Because we do have a government that is pro black. We do have officials that are black. We don't have any excuse,” BBCBE president Danny Masimene said. Mofokeng insisted that further transformation of the built environment industry was needed, but admitted that he actually had no idea of whether this was being achieved or not, since his organisation had not delivered a report on the industry’s transformation progress since 2021. “The last industry report that we produced was in 2021. We are supposed to be producing these reports on an annual basis so that we can all measure our efforts as far as transformation is concerned. As we sit here today, the last report we can refer to is the report that was produced in 2021. We definitely do need to get our latest reports so that we can measure ourselves,” he admitted. He blamed the lack of proper reporting on a lack of funding from government. “The biggest challenge that the CSCC is facing at the moment is lack of funding from government. We have proposed our own self-funding model – an industry funding model – and we have made our submissions to both the Department of Public Works and Infrastructure (DPWI), as well as the Department of Trade, Industry and Competition (dtic). The dtic has approved. We are now awaiting the approval of DPWI,” Mofokeng said. Construction Education and Training Authority board chairperson Thabo Masombuka agreed at the event that there was insufficient tracking of transformation progress in the built environment. He acknowledged that it was likely that more progress had been made than those in power would likely want to admit, particularly with regard to the advancement of young people in the economy. As it stands, the youth unemployment rate, for job-seekers between 15 and 24 years old across all races, was at 59.6% in the fourth quarter of last year, according to Statistic South Africa. “We've approved the track and tracer study, which is very comprehensive and detailed, to give stock of how much we've spent on young people over the past ten years. Where are these young people now? “In order for us to know where we are going, we have to know where we are coming from, and then we are able to fix that. Sometimes we become too hard on ourselves. We probably are making progress, but we're not tracking this problem,” Masombuka said. However, he admitted that the apparent failure to effect true economic transformation after more than 20 years of BBBEE laws being in place could not be fairly attributed to racial discrimination any longer. “It's no longer about white people. After 32 years in democracy, it's no longer about white people. If we are not moving in this country, if we are not moving forward, it's not about white people. It's about black people, who are occupying the position [of power], although it’s a different institution. But they make it so difficult. We have achieved nothing,” Masombuka said. However, Mofokeng alleged that anyone who criticised BBBEE and its failures to effect meaningful transformation was engaging in misinformation and lies. “The opponents of transformation are grouping and they are reinforcing. The antagonists of transformation are fighting. They push back. Not only are they influencing the International Monetary Fund [and the World Bank], they are lobbying the US and they are lobbying super powers to isolate South Africa in what they called antagonistic policies that seem to be discriminating certain groups. They are using distortions, misinformation, lies and mischaracterisations,” Mofokeng said.  ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/we-want-more-investment-but-we-will-not-relax-bbbee-construction-sector-charter-council-says-2025-03-04

  • YOUTH SERVICE IS ONE OF THE KEYS TO CRACKING SOUTH AFRICA’S UNEMPLOYMENT CRISIS

    Guy Redman | 5 March 2025 Prioritising investment into those under 25 facing the highest rates of unemployment, and at the same time close to labour markets, is a low-hanging fruit and prevents them from becoming long-term NEETs (not in employment, education or training). Much has been written about our youth unemployment crisis, and the lobby for leveraging public funds to provide a bridge into the economy is broadening. Having worked with young people through various programmes over the past 10 years, I add my voice to the call for increased investment in pathways for those who are not in employment, education or training (NEET). What not a lot of people have commented on is the importance of rebuilding civil society and cultivating the leadership potential of our next generation. The value of youth service, one of the pathways being funded by the Presidential Youth Employment Initiative, is hugely underestimated. This year, YearBeyond, one of the National Youth Service (NYS) programmes, received more than 43,000 applications for just 3,000 youth service opportunities. Asked why they are applying, most young people say it is to make a difference in their community. This aligns with broader NYS data which indicates that 79% of participants each year join the programme to contribute positively to their communities. Participants also note that through service they feel seen and heard as adults in the community and as members of their families. This boosts their mental health and confidence. Other programmes under the Presidential Youth Employment Initiative have collected similar data on the importance of work in the lives of people and its role in restoring dignity and confidence. Internationally, youth service has demonstrated similar benefits. In India, the National Service Scheme engages millions of young people in community service, improving their leadership and job-readiness skills. Closer to home, the African Union Youth Volunteer Corps promotes volunteering to deepen the status of young people in Africa. Similarly, in the US, AmeriCorps engages hundreds of thousands of participants annually in service programmes, with studies showing that alumni feel their service experience expanded their career paths. In the European Union, the Solidarity Corps has provided young people with volunteer and work experiences that enhance employability and social cohesion. We know that the chances of young people being productive decrease with each year they are NEET. As such, prioritising investment into those under 25, facing the highest rates of unemployment and at the same time close to labour markets, is a low-hanging fruit and prevents them from becoming long-term NEETs.   Therefore, I would argue that the priority focus should be on 18- to 25-year-olds, supporting them before they lose all hope. Given that more than two-thirds of these young people come from households with no working adults in them, it is important for them to work full-time, build work fitness, gain experience, understand the world of work and develop their skills. Young people can serve in many different roles, such as education champions, reading champions, ICT champions, environmental champions, food security advocates and wellbeing champions. Rooted in community, this service is strengthening the social fabric of communities. It is also unlocking the civic agency of our young people, increasing their ongoing engagement and volunteer spirit – making them 45% more likely to be active, engaged citizens ( YearBeyond, The Power of 10 Impact Study, 2025 ). Globally, youth civic engagement has been linked to higher employment outcomes and social mobility. A study by the International Labour Organization found that structured volunteer programmes improve soft skills, adaptability and networking – key factors in securing long-term employment. Recent data from Stats SA indicated that young people with work experience are four times more likely to secure employment. The Public Employment basket provides a continuum of support. For those closest to the labour market, programmes such as Youth Service can perform an active labour market role, with a focus on work readiness and economic connections. This will provide a pathway for up to 70% of participants. However, for those further away, for those without a matric or in stagnant economic areas, additional support is needed to prevent them from returning to being NEET. In these cases, programmes such as the Social Employment Fund can offer further support and scaffolding while they continue to explore their options. Let’s turn the tide and enable our young people to unlock their energy and agency. Let’s join the service movement and recognise youth service as a vital component of economic recovery, social cohesion and leadership development. We call on young people to serve. We call on businesses and NGOs to create service opportunities. We call on all spheres of government to grow their investment in youth service. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/opinionista/2025-03-05-youth-service-one-of-the-keys-to-cracking-sas-unemployment-crisis/?dm_source=dm_block_grid&dm_medium=card_link&dm_campaign=main

  • DEPUTY MINISTER KENNY MOROLONG MEETS WITH PRINT AND DIGITAL MEDIA TRANSFORMATION AND REVITALIZATION STEERING COMMITTEE AND MARKETING, ADVERTISING, AND COMMUNICATIONS (MAC) B-BBEE SECTOR

    South African Government | 4 March 2025 Deputy Minister in The Presidency, Hon. Kenny Morolong, met with members of the Print and Digital Media Transformation and Revitalization Steering Committee and the Marketing, Advertising, and Communications (MAC) B-BBEE Sector Charter Council to discuss collaborative efforts towards a transformed media that is inclusive in a digital and multiplatform environment to sustain and grow the sectors’ contribution to the Growth Domestic Product (GDP). These meetings were held in separate virtual sessions on Monday, 3 March 2025.  The engagements underscored government's commitment to promoting diversity, equity, and fair representation and revitalisation of the media and advertising industries.  Deputy Minister Morolong emphasized the importance of ongoing government support, which is dedicated towards the sector’s growth and sustainability.  “Media and advertising are powerful tools in shaping public discourse and national identity. Transformation in these sectors must not only be policy-driven but also reflect in ownership, content, and opportunities for historically disadvantaged individuals,” said Deputy Minister Morolong.  During the meeting, stakeholders discussed:  Progress on media transformation initiatives within the print and digital landscape in line with the provisional report of the Print and Digital Media Market Inquiry. Strategies for greater industry accountability the MAC Council in implementing the Revised Sector Code. The successful implementation of B-BBEE led transformation that requires strategic collaboration and partnership between GCIS and the print and digital media industry, with all partners playing a key role in sector’s revitalization and sustainability process.  Strengthening policies that support inclusive participation in the media economy and ongoing support for resourcing the work of the MAC Sector Charter Council. Deputy Minister Morolong reaffirmed that, “government remains committed to working alongside industry stakeholders to dismantle systemic barriers and ensure that South Africa's media landscape is inclusive, competitive, and representative of the country's diversity”.  The meetings concluded with a shared commitment to developing action plans that will accelerate transformation efforts and establish measurable outcomes for industry progress.  Notes to the editor: Marketing, Advertising, Charter (MAC) Sector Charter Council which comprises of representatives from the MAC Sector organised bodies, organised labour and it is guided by legislation to: •    Oversee the implementation and monitoring of the Sector Code. •    Provide guidance on matters relating to black economic empowerment in the MAC sector; •    Compile reports on the status of black economic empowerment in the MAC sector; •    Share information with approved accreditation agencies conducting black economic empowerment ratings in the MAC sector; •    Engage and advise the line function Minister and other relevant regulatory entities regarding implementation of the MAC Sector Code; •    Develop mechanisms and strategies to monitor compliance with the MAC Sector Code; •    Develop strategies for consultation with provincial and local stakeholders regarding the MAC Sector Code; •    Formulate guidelines and models for Broad-Based Empowerment of Black-owned companies at local, provincial and national level; •    Develop and implement an interactive portal to communicate the basic methods of applying the B-BBEE scorecard for all the different elements of B-BBEE; •    Develop baseline indicators, conducting or commissioning research for the purposes of ensuring the effective implementation of the MAC Sector Code; •    Report to the line function Minister through the GCIS, the DTIC, BEE Commission, the B-BBEE Advisory Council and Parliament on the implementation of the MAC Sector Code •    Advise on the amendments of the MAC Sector Code and other pieces of legislation that hamper effective and efficient implementation of the transformation agenda. Print and Digital Media Transformation and Revitalization Steering Committee which comprises of various media executives of print and digital media companies, industry bodies such as the Association of Independent Publishers, Media Development and Diversity Agency and the Press Council is responsible for: •    Developing a roadmap towards the establishment of the Print Media Charter that will promote B-BBEE in the sector  •    The availability of print and digital media in languages all South Africans speak;  •    Specifics of the industry, including setting deadlines and targets to meet transformation objectives, set as commitment by the industry into a diverse and transformed print media in the entire value chain (newsroom, publishing, news sources, printing, distribution and advertising); •    Areas of ownership and control, language, race, gender, employment equity, conditions of employment, skills development, contributions to promoting media diversity (through MDDA), accord on access to printing & distribution. For media inquiries: Mosimanegape Moleme on 081 048 8971, Head of Office and Spokesperson, Office of the Deputy Minister or Sathasivan (Terry) Vandayar on 082 444 9092 ; Acting Director General of GCIS. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.gov.za/news/media-statements/deputy-minister-kenny-morolong-meets-print-and-digital-media-transformation

  • WORLD BANK CALL TO RELAX BEE PREMIUMS WELCOMED – IRR

    Gabriel Crouse | 04 March 2025 Institute says according to report, policies that once had good intentions, like BEE, have backfired The World Bank report titled “Driving inclusive growth in South Africa” is a welcome addition to the body of expert advice in favour of reducing BEE premiums in public procurement, says the Institute of Race Relations (IRR). Policies that once had good intentions, like BEE, have backfired, according to the report. “Today, these interventions have become so cumbersome that they smother the implementation capacity of the public administration, especially local officials, and open spaces for corruption.” Directly thereafter the report links these harms to “state capture”. This is no surprise, as the IRR has repeatedly pointed out that the systemic analysis of the State Capture report found a problem in the “legislative design” that facilitated state capture. That problem is confusion created by the tension between BEE premiums and “value-for-money” procurement in a non-transparent system. The Zondo report offered the following advice: “Ultimately in the view of the [State Capture] Commission the primary national interest is best served when the government derives the maximum value-for-money in the procurement process and procurement officials should be so advised.” The World Bank effectively repeats that advice, with its first concrete proposal being to “Improve the efficiency of public spending”. When inefficient BEE premiums are spent, this benefits connected elites (of all races), but reduces value for money. The City of Cape Town, for example, found that it was spending 7% on BEE premiums on traffic light controller parts, meaning less money was left over to make other things work. In order to address this problem both the State Capture report and the World Bank emphasize the importance of introducing transparency to procurement. The World Bank states that procuring entities should have to “share data with the National Treasury”. That is an important call, as Treasury has never reported on the cost of BEE premiums, a violation of its constitutional duty. Following the World Bank’s advice would begin to allow Treasury to remedy that fault. The IRR previously requested that Treasury be transparent about BEE premiums by putting in place new mechanisms in preparation for the 12 March budget presentation. The World Bank’s advice to relax BEE is in line not only with the State Capture report, but also with a report from Harvard University and the IMF. Perhaps most importantly, the majority of South Africans want to end BEE premiums too. A poll commissioned by the IRR in 2024 asked survey respondents whether BEE premiums should be eliminated or not. 64% of black respondents and 70% of all respondents preferred reducing BEE premiums to R0. Put another way, as South Africa has not grown in real terms since 2007, a singular failure among open democracies around the world, most people would like to shift from race preferences to a bet on economic growth. The World Bank advises “a development bargain, whereby the country’s elites shifted from protecting their own positions to gambling on a growth-based future.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/world-bank-call-to-relax-bee-premiums-welcomed--ir

  • VISION FOR INCLUSION: OVERCOMING EMPLOYMENT CHALLENGES FOR THE VISUALLY IMPAIRED

    Devan Moonsamy | 4 March 2025 Despite South Africa’s progressive labour laws, the country continues to fail its largest disability group — people with visual impairments. It is estimated that over one million South Africans live with some form of visual impairment, and statistics indicate that more than 70% of visually impaired individuals who are of working age are unemployed. Corporations love to talk about diversity, equity, and inclusion, but when it comes to actual employment opportunities for people with disabilities, particularly those with low vision or blindness, there is a glaring gap. The biggest question we should be asking is: Why is this still happening in 2025, when solutions exist? Why are South African businesses still reluctant to employ visually impaired professionals? One of the biggest misconceptions is that hiring people with visual impairments requires expensive workplace modifications. This is simply not true. Assistive technology is affordable and widely available – Screen readers, magnification software, and text-to-speech applications are already integrated into most modern computers and can be downloaded for free or purchased at a low cost. Minor adjustments make a major impact – Simple modifications like clear signage, tactile markings, contrast colors, and good lighting significantly improve accessibility for visually impaired employees without requiring massive investment. Remote work has changed the game – Many visually impaired employees can work just as efficiently from home, eliminating mobility challenges and the need for extensive workplace modifications. Yet, despite these easily available tools, most South African companies have done nothing to create an accessible work environment for visually impaired employees. There’s another major misconception: that visually impaired individuals are only suited for switchboard operating, massage therapy, or basic administrative roles. The reality? Visually impaired professionals can thrive in a wide range of industries, from customer service to law, IT, and finance. Here are just a few areas where they can excel: Call centres and customer support – With screen-reading software, visually impaired individuals can handle customer queries, provide IT support, and process orders. Content writing and marketing – Many visually impaired professionals work in copywriting, SEO, social media management, and PR. Data capturing and administration – With the right tools, visually impaired employees can manage databases, update spreadsheets, and process reports. Legal and HR roles – With accessible digital documents and Braille-supported materials, there is no reason why visually impaired employees cannot work in law firms, HR departments, or compliance teams. Public speaking and training – Many visually impaired professionals thrive as motivational speakers, facilitators, and trainers. There is no reason why corporate South Africa cannot hire, train, and support visually impaired employees. The problem is not a lack of capability — it is a lack of effort from businesses. South Africa’s labour laws require businesses to implement employment equity and disability inclusion. Yet, most companies are still not actively hiring visually impaired candidates. Some businesses claim it is too complicated. Others say they don’t know how. But here’s the reality: The technology already exists. The training programs already exist. The law already mandates it. So why are we still seeing such high unemployment among visually impaired South Africans? One reason is corporate apathy. It is easy for businesses to claim they are inclusive. It is much harder to actually be inclusive. Businesses must go beyond just “talking about diversity” and start actively hiring and training visually impaired employees. At ICHAF Training Institute, we have spent years developing specialised disability-inclusive training programmes to help companies integrate visually impaired employees into the workforce. Call Centre Training for Visually Impaired Candidates – Teaching them how to work in customer service, tech support, and telesales. Microsoft Office and IT training – Covering Excel, Word, and Outlook using screen-reading technology. Soft skills and workplace readiness – Interview training, CV preparation, and workplace etiquette coaching. Custom corporate training – Helping companies implement accessible hiring and workplace policies. Companies that fail to act now are ignoring an entire workforce of capable, skilled individuals. The reality is simple: If your company is not actively working to employ visually impaired individuals, you are part of the problem. This is not just a moral issue — it is a business issue. Companies that invest in inclusive hiring benefit from: Increased innovation and problem-solving – Diverse teams perform better and bring new perspectives. Higher employee retention – People with disabilities stay longer in jobs when they are properly supported. Improved corporate reputation – Disability inclusion shows leadership and responsibility. If you are a business in South Africa and you are not actively hiring, training, or integrating visually impaired employees, you cannot call yourself an inclusive workplace. South African companies must stop treating disability inclusion as a compliance checklist. Businesses must: Create accessible recruitment pipelines for visually impaired candidates. Train existing staff on how to work with and support visually impaired colleagues. Invest in affordable workplace modifications and assistive technology. Enroll in disability-inclusive training programs. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/vision-for-inclusion-overcoming-employment-challenges-for-the-visually-impaired-365558a

  • TECHNICAL, VOCATIONAL TRAINING IMPORTANT FOR ENTREPRENEURSHIP: RAMAPHOSA

    Simon Nare | 3 March 2025 President Cyril Ramaphosa has welcomed efforts by the Basic Education Department to strengthen technical and vocational pathways to high school pupils. Writing in his weekly newsletter, Ramaphosa acknowledged that the technical and vocational pathways were a solid path to employment and entrepreneurship. The president said much needed to be done in improving the education system and for the past 30 years since the dawn of democracy, the government has been grappling with this matter. He said one of the damaging effects of Bantu education during the apartheid regime was the deliberate neglect of black children and this was revealed in a study published in 1992 that found that only 6% of black children had access to early child development compared to one third of all white children. “We have spent the last 30 years trying to correct this. This effort has now received greater impetus with the passage of the Basic Education Laws Amendment Act. This Act makes Grade R, the reception year before Grade 1, compulsory. ”Children who attend quality pre-primary programmes tend to have larger vocabularies, better number awareness, stronger perceptual skills, improved social skills and greater curiosity,” he said. The president said quality early childhood development (ECD) promoted social equality and children from poor families benefited the most from access to ECD. “As the learning journey progresses, quality ECD is also linked to better transitions into high school, lower repetition and dropout rates, and better academic performance overall,” he wrote. The president said these were some of the issues that were discussed during the Basic Education Sector Lekgotla. which also touched on how best to realign the existing education curriculum to strengthen foundational learning. Ramaphosa said it was widely recognised that investing in science, technology, engineering and mathematics education was key to economic growth, job creation, productivity and economic competitiveness. “Such education prepares young people for a diverse range of occupations that are most needed by a growing economy,” he said. He pointed out that last year, the Class of 2024 recorded an 87% pass rate, which was a welcome sign that efforts to transform the education system were bearing fruit. However, he wrote that too many learners dropped out of school before writing matric and others struggled to get good marks, in part because they did not get the foundation they needed in early learning years. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://insideeducation.co.za/technical-vocational-training-important-for-entrepreneurship-ramaphosa/

  • AECI BOOSTS MINING DIVISION'S BLACK OWNERSHIP IN R522M TRANSACTION

    Business Report | 3 March 2025 AECI, the JSE-listed chemicals manufacturer, on Friday announced a new R522 million Broad-Based Black Economic Empowerment (B-BBEE) transaction to strengthen the ownership credentials of its mining subsidiary, AECI Mining Limited. AECI shares rose 1.69% to close at R95 on the JSE that day.  The B-BBEE transaction, a broad-based ownership scheme, involves the AECI Foundation subscribing for 73 586 835 B ordinary shares in AECI Mining at R7.10 each, totaling R522m. This gives the Foundation a 15.5% effective interest in AECI Mining, boosting its B-BBEE status to 51% black ownership per the Codes and 51% Historically Disadvantaged Persons ownership under the Mining Charter. The Foundation, a Public Benefit Organisation focused on community development, will finance the deal with R182.7m in cash (35%) and R339.3m in notional vendor financing (65%) from AECI Mining, AECI said. The B ordinary shares have voting rights equal to ordinary shares and economic rights linked to 15.5% of AECI Mining’s South African earnings. Valued at R522m, the transaction awaits B-BBEE verification and regulatory approvals, with an expected effective date of March 20,  2025. PricewaterhouseCoopers Corporate Finance provided a fairness opinion confirming the deal’s fairness to shareholders, AECI said. The announcement comes two days after the firm reported its results for the year ended December 31, 2024, showing a decline in earnings and as it undergoes a restructuring exercise positioning it for growth. AECI has embarked on a comprehensive restructuring and divestment program to sharpen its focus on core business areas, particularly mining and chemicals. Last year, the company advanced this strategy by signing sale agreements for non-core assets, such as AECI Much Asphalt and AECI Animal Health, with closures expected in the first half of 2025. These divestments aim to streamline operations, reduce debt, and generate cash flow to fuel growth in its primary segments. Headline earnings per share declined 37% to 716 cents, with a basic loss per share of 268c, including a 531c loss from discontinued operations like the pending sale of AECI Much Asphalt. AECI reported a 3.8% revenue drop from continuing operations to R33.6 billion in 2024, primarily due to weak market conditions and low ammonia prices impacting AECI Mining, the main revenue contributor via explosives and chemicals. Earnings before interest, taxation, depreciation, and amortisation from continuing operations fell 12.7% to R3.03bn, hit by R873m in one-off costs tied to transformation and divestitures. AECI’s CEO Holger Riemensperger said: "2024 has been a transformative year for the Group, with significant progress made against our strategy execution programme. While we made concessions that affected the Group's financial performance for the year, our progress and achievements to date in executing the strategy reinforce our confidence in our ability to meet our long-term strategic ambitions."  In its outlook, AECI said, "2024 has set a strong platform from which the Group can build and grow towards meeting its 2026 strategic ambitions. In 2025, our attention moves from the transition phase of our strategy to execution phase with an emphasis on driving hard cost savings, preparing for growth and focusing on free cashflow generation," it said.  It said it was continuing to position AECI Mining for growth and improved operational performance by maintaining the good performance momentum recorded in the fourth quarter of 2024,  investing in growth capital as guided by the capital allocation framework, and  internationalisation of the business with AECI Mining Chemicals at the forefront. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/companies/aeci-boosts-mining-divisions-black-ownership-in-r522m-transaction-10442fc1-de87-4790-8282-0bd73d4ffd9d

  • SOUTH AFRICA'S NEW EMPLOYMENT EQUITY TARGETS: WHAT EMPLOYERS NEED TO KNOW

    Melissa Cogger | 1 March 2025 Earlier this month, the Department of Employment and Labour held virtual consultation meetings on the new draft numerical sector targets with stakeholders in 18 sectors. In terms of section 15A(2) of the amended Employment Equity Act, 1998 (EEA), read together with section 15A(4) of the EEA, the Minister must consult the relevant sectors prior to the publication of draft sector targets in the Government Gazette for public comment. The purpose of the meetings was to discuss the proposed sector numerical targets for the relevant sector before publishing the final sector targets for implementation. When invitations were received by stakeholders during December 2024, it was not clear whether the DoEL intended to engage with the sectors on the previous draft targets published in 2023 and 2024 ( the 2023 and 2024 Draft Sector Targets ) or whether new targets would be presented. This is because very little information accompanied the invitation. During the virtual meetings, it became clear that the DoEL was purportedly consulting on the new 2025 Draft Sector Targets ( 2025 Draft Sector Targets ). As with the 2024 Draft Sector Targets, the 2025 Draft Sector Targets are set for “designated groups”, broken down by gender, but there are no specific targets per racial group. The figures are, however, markedly different from the 2023 and 2024 Draft Sector Targets and in many instances are significantly increased. The DoEL explained during the virtual meetings that the rationale for the change in draft targets was due to various sectors comparing well and exceeding the 2024 Draft Sector Targets in the last reporting period. It appears that the DoEL set new draft sector targets based on the latest workforce profile statistics of various sectors, as reflected in the 2024 EEA reports, and apparently took into account increases in representivity of a particular sector between the 2023 and 2024 reporting periods. With this information, the DoEL adjusted the latest workforce profile statistics upward by up to 8% in certain sectors. When considered over the five-year period, the result, depending on the sector and occupational level, is an increased representativity of designated groups per level of between 1% and 1.6% year-on-year. Further, the DoEL has proposed to decrease the workforce profile of certain designated groups (such as women) if the workforce profile as it currently stands is in excess of the economically active population (EAP) for such sector. Additionally, disability targets have been raised to 3%, with this increase expected to apply across all sectors. The DoEL stated during the virtual meetings that there is no statistical information on the disabled economically active population and urged stakeholders to conduct their own internal assessments on areas where persons with disabilities could be reasonably accommodated in the workplace and to work with universities on the pool of suitably qualified disabled persons in a particular industry. It explained that the reasoning for the proposed increased representivity of disabled persons in the workplace was due to a lack of progress by designated employers in ensuring increased representivity. It was, however, not clear to stakeholders why the DoEL’s previous proposals of 2% representivity of disabled persons in the workplace increased to a proposed 3%. The 2025 Draft Sector Targets do not appear on the DoEL website, nor have they been published in the Government Gazette for public comment. During the meeting, the DoEL shared the following proposed timeline: February 28, 2025: Sector stakeholder ’consultations’ on the final sector targets will be conducted and finalised. March 31, 2025: Two sets of regulations, which will include the General Administrative Regulations (dealing with the various employment equity reporting forms, employment equity plan templates, enforcement tools, and certificate of compliance template) and the regulations on the five-year sector targets, will be published. April 2025: Internal training and capacity building of employment equity labour inspectors will take place on the EEA amendments and regulations, including the online system. May – June 2025: National employment equity workshops and roadshows with stakeholders will be conducted to raise awareness and to train stakeholders on the implementation of the EEA amendments, how to utilise the online system to capture employment equity reports and the process to request a certificate of compliance. April – August 2025: Designated employers should embark on the process of conducting their workplace analyses and developing new employment equity plans to align with the published five-year sector targets. September 1, 2025: The employment equity reporting system will be opened until 15 January 2026, during which designated employers will submit their ‘base’ employment equity reports (EEA2 and EEA4 forms) and employers may be issued with their first certificates of compliance for purposes of section 53 of the EEA. September 1, 2026 to January 15,2027: The first assessment of annual sector targets towards the achievement of the five-year sector targets will be considered against the 2026 employment equity reporting period. It is not clear whether the regulations that are proposed to be published at the end of March 2025 will be in draft form, inviting the public to comment. During the virtual consultations and when asked whether the draft targets would be published for comment, as contemplated in section 15A(2) and (4) of the EEA, the DoEL indicated that it ’would comply with its interpretation of the law.’ If the DoEL complies with the multi-stage process contemplated in section 15A of the EEA, what ought to take place following the ’consultation’ process is the publication of draft sectoral targets in the Government Gazette, allowing for public comment for a period of at least 30 days. The DoEL also indicated during the virtual sessions that designated employers would be expected to prepare new employment equity plans effective from 1 September 2025 so that the annual targets set by designated employers align across the sector for purposes of considering compliance. The sequence of events contemplated in section 15A of the EEA is as follows: Identification of the proposed national economic sectors, and publication in the Government Gazette for public comment, allowing interested parties at least 30 days to comment; Consultation with the relevant sectors; Publication of draft targets in the Government Gazette for public comment, allowing interested parties at least 30 days to comment; and After taking the advice of the Commission for Employment Equity, publication of the final sector targets. Now that the amendments have come into effect and the Minister of Employment and Labour is empowered to act in terms of section 15A, the DoEL should arguably first identify the proposed national economic sectors for public comment. This is particularly relevant given that certain sectors have been combined, despite significant differences in workforce profiles. Moreover, setting targets for the top four occupational levels based on a single identified sector will fail to capture the distinct nuances and complexities of each individual sector within the broader classification. During stakeholder engagement sessions, the DoEL indicated that the 18 sectors identified had already been agreed at Nedlac. The DoEL provided stakeholders with an opportunity to make written representations on the 2025 Draft Sector Targets after the virtual meeting but only provided up to five working days in some sectors to submit such representations, and in other sectors provided up to nine working days. The deadline provided by the DoEL for sectors to submit written representations was Friday, February 21, 2025. Various industry bodies have requested the DoEL to provide stakeholders with a reasonable opportunity to consider and respond to the 2025 Draft Sector Targets, particularly given that in many cases, the proposed targets were not shared before the meetings. Such engagements should take place within the multi-stage process contemplated in section 15A of the EEA. It goes without saying that meaningful consultation only takes place when representations are genuinely and seriously considered and feedback regarding those representations is provided. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/companies/south-africas-new-employment-equity-targets-what-employers-need-to-know-4ebe9206-9c0b-4de1-bf53-b25fead19152

bottom of page