BUSA challenges Employment Equity Sector Targets in court
BUSA's stance on Employment Equity: A call for transparency and collaboration
Image: Leon Lestrade/ Independent Newspapers
Business Unity South Africa (BUSA) has launched legal proceedings challenging the recently published Employment Equity (EE) Sector Targets that came into effect on September 1, 2025.
The organisation said on Monday that the targets, developed under the Employment Equity Amendment Act, are fundamentally flawed in substance and procedure, threatening the goal of workplace transformation and an inclusive economy.
“The decision follows years of engagement with government, labour, and other social partners to advance the critical national goal of workplace equity and transformation.
“BUSA is not opposing the Employment Equity Amendment Act or the principle of sectoral numerical targets under Section 15A of the Act.”
However, BUSA CEO Khulekani Mathe highlighted the need for proper implementation processes.
“The need for transformation is urgent, but urgency must not become recklessness. We’re acting now to protect the credibility of equity policy. Unworkable targets do not advance transformation. They deepen frustration and erode trust in public policy.”
Mathe further described the consultation process with the Department of Employment and Labour (DEL) as lacking transparency and genuine engagement.
“What took place was not meaningful consultation; it was a presentation. As social partners, we cannot allow performative engagement to substitute for genuine collaboration.”
Key concerns outlined by BUSA include Limited consultation time, the organisation said employers had less than a week to respond, often receiving draft targets the night before one-hour meetings.
“Inadequate methodological transparency, DEL failed to sufficiently explain how targets, such as the disability target raised to 3%, were calculated, despite admitting a lack of reliable data.
On insufficient sector-specific analysis, BUSA argues that the targets do not adequately consider the operational differences and realities across industries.
“The EE targets are not aligned with Broad-Based Black Economic Empowerment (B-BBEE) sector codes, which is confusing.”
BUSA DEL refused to differentiate targets among sub-sectors, ignoring geographic and structural diversity.
Mathe warned of the consequences of poorly conceived targets.
“Poorly developed targets risk damaging vital sectors of the economy. If targets are unrealistic or not based on the skills available in each , companies may find themselves unable to comply.
“This creates uncertainty and weakens the integrity of the regulatory process, ultimately undermining the transformation and inclusion that the Employment Equity Act is meant to achieve.”
BUSA insists its legal action does not represent resistance to transformation itself. Instead, it said it calls for the process to be lawful, transparent, data-driven, and practically achievable.
“Rushed, opaque, and procedurally irregular processes not only fail the test of legality but also set back the national imperative of transformation by making compliance impractical and unenforceable,” said the organisation.
The business body reaffirmed its commitment to collaborate with government, labour, and other stakeholders to develop a sustainable framework for transformation that reflects sector realities and safeguards future progress.
Despite initiating court action, BUSA underscored its continued partnership with the government through platforms like NEDLAC and the Government Business Partnership, working on challenges beyond employment equity, including energy, transport, crime, and youth employment.
“Transformation is a national imperative, and to succeed, it must be implemented in a way that builds confidence, promotes dialogue, and delivers results that are both meaningful and sustainable,” the organisation stated.
thabo.makwakwa@inl.co.za
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