Redefining Employment Equity Targets

In a landmark move, South Africa's Department of Employment and Labour has redefined the employment equity targets. At the heart of these changes lies a pivotal decision to overhaul the existing framework.

This transformative initiative comes on the heels of the Employment Equity Amendment Act, signed into law by President Cyril Ramaphosa in April 2023, amending the longstanding Employment Equity Act of 1998. Empowering the Minister of Labour, Thulas Nxesi, the amendments grant authority to identify and establish employment equity numerical targets tailored to each national economic sector.

One of the most striking changes in the republished targets is the adoption of a single target for each economic sector, differentiated solely on the basis of gender. This marks a departure from previous practices, where targets were fragmented between sub-racial groups and separate provincial and national benchmarks.

Equally noteworthy is the removal of distinctions based on designated racial groups, such as African, Coloured, and Indian. Instead, the revised targets now centre around the concept of "designated groups" as defined in the Employment Equity Act.

To put it in perspective, a manufacturing company is urged to have at least 40% of its top management composed of designated group members (Black people (African, Indian and Coloured), Women and people with disabilities who are citizens of South Africa by birth or descent.), with a minimum of 15% being women. This is compared to the previous targets, which outlined that the top management of a national manufacturing company had to be 35% African (22% male, 13% female), 4% coloured (2.5% male, 1.5% female), 1% Indian (0.7% male, 0.4% female) and 8% white (4.5% male, 3.5% female).

Essentially, the target of 40% is now based on a holistic inclusion of designated groups, divided by gender, rather than specific breakdown targets per racial sub-group.

Furthermore, there are no targets that have been set out for the semi-skilled and unskilled levels. Therefore, designated employers are required to take into account the economically active population demographics in respect of these levels.

The rationale behind these revisions, according to the DOL, is clear: to address the sluggish and complex progress in achieving equitable representation of economically disadvantaged groups in the workplace. By boosting targets and implementing affirmative action measures, the Department aims to redress the historical disadvantages experienced by all Africans, Coloureds, Indians, and white women in employment.

The draft regulations on the proposed sectoral numerical targets is open for public comment until May 2, 2024.