Job-Killing Employment Equity Code

Statement by Michael Bagraim MP – DA Spokesperson on Employment and Labour:

The DA will oppose the job-killing draft Employment Equity Code gazetted by Employment and Labour Minister Nomakhosazana Meth on 24 July during the 60-day public comment process, because it will force businesses to shape their employment plans around government-set racial and gender targets.

The draft Code puts prescribed sectoral targets in terms of section 15A of the Employment Equity Act into practice in workplaces. The DA is already challenging section 15A and the Minister’s power to prescribe these targets.

These targets give government greater influence over the demographic composition of workplaces across 18 sectors, with designated employers expected to work towards prescribed targets over five years.

The draft Code now sets out how businesses must implement this system in the workplace. Employers with more than 50 employees must develop employment equity plans, analyse under-representation, set measurable targets, allocate resources, monitor progress and keep records.

The DA opposes this approach because hiring decisions should be driven by skills, merit and the needs of businesses, not increasingly prescriptive government targets.

It also adds more red tape and compliance pressure when South Africa desperately needs businesses to grow, invest and create jobs.

The DA has already challenged section 15A of the Employment Equity Amendment Act in court. We are currently awaiting judgment in the matter. We will now make a formal submission opposing this Code during the 60-day public comment process.

South Africa needs policies that expand opportunity and employment, not policies that make it harder for businesses to hire and grow.