Over 1 000 firms headed to court for EE non-compliance

More than 1 000 companies will be taken to court because of non-compliance with the legal requirements of employment equity.

The Commission for Employment Equity (CEE) released its 2014 report on employment equity (EE) on Thursday.

Thembinkosi Mkalipi, chief director of labour relations at the Department of Labour, said it would be the first time since the Employment Equity Act came into effect that the Department of Labour will sue companies that failed to report on their EE targets.

The companies could be fined about R1.5m or 2% of their annual turnover – whichever is the larger amount.

Mkalipi made it clear that they are especially going to take on larger companies that have the money to oppose the government in court.

Thobile Lamati, director general of the Department of Labour, said the cases of the first 77 employers who had failed to submit reports, are already on their way to the Labour Court and a further 1 400 will follow in provinces like the Western Cape, Gauteng and KwaZulu-Natal.

He said there is a lack of political will to drive transformation.

“We do not get any pleasure from taking companies to court.”

He said employers are being made aware of their responsibilities, inspections are done at work premises and chances are given to set things straight. Enforcing the law in such a way in court is a last option, he emphasised.

“The 2014 report paints a sombre picture about transformation in the workplace and in the country as a whole. Transformation is not just about ticking the right boxes.”

Lamati also said transformation must create real changes.

“One looks at the top management in the workplace and it looks like an old male choir still singing the same tune. If we want to change the tune, we have to change the choir by involving more women and people with disabilities.”

The report shows, among others, that more than 70% of top management positions are held by whites, 13.6% by blacks, 4.7% by coloureds and 8.4% by Indians.

According to Lamati workplaces will become more diverse.

“Now is the time to tackle the remnants of apartheid where whites held the top positions and blacks were at the bottom.

“It is sad that numerous employers in the private sector have the advantage of large government contracts, but in the workplace they discriminate against the majority of the population.”

Alicestine October, Media24 Parliamentary bureau