Labour Minister Thulas Nxesi said yesterday, “ As we celebrate the signing of this Settlement Agreement, what matters most is that it should lead to real change; more responsible behaviour from companies; and more thoughtful EE planning and implementation.” Photo file: ANA
Trade union Solidarity has scored a major victory against the government’s implementation of the proposed race-based employment equity legislation.
The government and the Solidarity yesterday signed an “amicable” Settlement Agreement on the Employment Equity (EE) and Affirmative Action (AA), ending a nine-month mediation process.
Tension about Employment Equity came to a head last year when Dis-Chem pharmacies issued a moratorium on external appointments and internal promotions of white workers in a bid to achieve employment equity targets.
Solidarity had referred a dispute to the International Labour Organization (ILO) regarding the government’s proposed amendments to the Employment Equity Act after President Cyril Ramaphosa earlier this year signed the Amendment Bill.
The union felt that the amended law granted too much power to the Minister of Employment and Labour, saying it undermined the nuanced approach to affirmative action as required by the Constitution; and that the law was inconsistent in respect of the Republic’s responsibilities under international law.
The ILO recommended that the Commission for Conciliation, Mediation and Arbitration (CCMA) ought to facilitate the dispute between Solidarity and the government.
The agreement signed by Solidarity chairperson Flip Buys and Labour Minister Thulas Nxesi yesterday will now be gazetted as part of the 2023 Employment Equity regulations.
Both the parties have also agreed that it will be made a court order while companies will therefore be obliged to implement it.
Further points in the agreement stipulate that no absolute barriers may be set for the employment or promotion of any group, and the inherent requirements of a position may be taken into account in making appointments or promotions.
According to Solidarity, no one’s employment may be terminated in any way as a result of companies’ racial programmes, and race may not be used as the sole criterion.
Solidarity said skills must be taken into account, and affirmative action must be temporary in nature.
“This agreement means the end of using race as sole criterion for employment and promotion,” it said.
“It also removes the sword of retrenchment that has been hanging over the head of minorities and it means that companies would no longer be forced to make appointments that do not meet their specific skills needs.”
Nxesi said the Settlement Agreement with Solidarity was a pinnacle in the history of social dialogue and employment equity not only in this country, but also globally, where the government and the workers’ organisation/trade union with opposing policy views were able to reach an amicable settlement.
He said the agreement was critical to demystify and discredit the negative perceptions created maliciously in the media on the current EE Amendments, affirmative action, including the sector EE target regulations published for public comment.
The minister also emphasised that the EEA and other labour laws did not require employers to dismiss or terminate employment of any employees irrespective of their race, to make space for the implementation of EE Amendments and sector EE targets, including affirmative action in their workplace.
“As we celebrate the signing of this Settlement Agreement, what matters most is that it should lead to real change; more responsible behaviour from companies; and more thoughtful EE planning and implementation. EE and affirmative action seeks to ensure the maximum participation of every citizen in the economy of the country, which is inclusive of the African, coloured, Indian and white population groups,” Nxesi said.
“Above all, I urge all employers to embrace EE and commit to ensure that all the people of our country in their diverse races and cultures, have equal access to employment opportunities and are treated fairly without any form of unfair discrimination in the various workplaces of this country.”
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