2 March 2011

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Amendments to Employment Equity Act (EEA)

The Select Committee on Labour and Public Enterprises’ meeting

2 March 2011

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Objectives of the EEA Amendments

1. To ensure compliance South Africa’s obligations in terms of International Labour Standards (Conventions 100 & 111);

2. To give effect to fundamental Constitutional rights, e.g. right to equality, fair labour practices and protection against unfair discrimination; and

3. To strengthen the implementation and enforcement mechanisms of the Act, e.g. increased fines for non-compliance.

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EEA Amendments

1. Equal pay for work of equal value

- A new clause is proposed to deal with unfair discrimination by employers in respect of terms and conditions of employment of employees doing the same work, similar work or work of equal value; and

- Differences in pay and conditions of work between employees performing the same or substantially the same work or work of equal value will amount to unfair discrimination unless the employer can show that differences are fair in relation to experience, skill, responsibility and qualifications.

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EEA Amendments cont.

2. Disputes concerning discrimination

- An amendment is proposed to provide for lower paid employees to refer a dispute concerning discrimination (including equal pay claims) to the CCMA for arbitration.

3. Reporting

- It is proposed that all designated employers be required to report on progress in implementing their Employment Equity Plan on an annual basis. Reports will be due on 1st October and can be submitted online.

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EEA Amendments cont.

4. Enforcement & Fines

- Amendments to a number of sections aim to promote more effective compliance and enforcement. For example, the issuing of a compliance order by an inspector may be done if a number of requirements have not been met by an employer.

- The assessment of compliance by the Department is also made less onerous and, where relevant, assessment of equitable representation will be in relation to occupational levels and not categories.

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EEA Amendments cont.

5. Section 42 (a) (i) of EEA

In determining whether a designated employer is implementing employment equity in compliance with this Act, the Director-General or any person or body applying this Act must, in addition to the factors stated in section 15, take into account all of the following:

- Current provision: “demographic profile of the national and regional economically active population;”

- Proposed change: “demographic profile of the economically active population;”

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EEA Amendments cont.

4. Enforcement & Fines cont.

- The current Schedule setting out fines for contraventions is replaced with a Schedule that introduces a percentage of turnover as the basis for fines.

- Fines will be calculated as a percentage of annual turnover, at 2% for first contraventions, escalating to a maximum of 10% for repeated contraventions.

- It is proposed that the failure to submit a statement of income differentials, as required by section 27, also become a contravention that may result in a fine.

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CEE 10th ANNUAL REPORT2009 -2010

NATIONAL EE STATUS

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Importance of the 10th CEE annual report

More than 10 years since the enactment of the EEA

20 years after the release of our former President – Mr Mandela

Time to pause and evaluate the country’s progress in transforming the workplace

This report is a credible source of EE information to inform us of the country’s transformation status

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National demographics of Economically Active Population (EAP)

Population group

Male Female Total

African 39.2% 34.2% 73.4%

Coloured 6.1% 5.2% 11.3%

Indian 1.9% 1.1% 3.0%

White 6.7% 5.5% 12.2%

Total 54.0% 46.0% 100.0%

StatsSA (Quarterly Labour Force Survey, Sept 2009)

Provincial demographics of EAP

PROVINCEMale Female

Total

A C I W A C I W

Western cape 18.0% 27.8% 0.3% 8.5% 14.1% 24.0% 0.2% 7.1% 100.0%

Eastern Cape 39.5% 6.1% 0.5% 5.4% 38.9% 4.8% 0.3% 4.4% 100.0%

Northern Cape 21.4% 24.2% 0.1% 6.6% 22.5% 20.0% 0.0% 5.2% 100.0%

Free State 42.2% 1.4% 0.1% 9.1% 38.6% 1.6% 0.0% 7.1% 100.0%

KwaZulu-Natal 40.8% 0.7% 6.8% 4.4% 39.3% 0.7% 3.9% 3.5% 100.0%

North West 52.4% 1.1% 0.6% 5.8% 34.8% 0.7% 0.1% 4.6% 100.0%

Gauteng 42.2% 2.2% 1.9% 9.1% 33.9% 2.0% 1.1% 7.8% 100.0%

Mpumalanga 47.0% 1.1% 0.4% 4.7% 43.0% 0.8% 0.0% 3.0% 100.0%

Limpopo 48.4% 0.3% 0.4% 2.1% 46.9% 0.4% 0.3% 1.2% 100.0%

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Western Cape demographics of EAP

Population group

Male Female Total

African 18.0% 14.1% 32.1%

Coloured 27.8% 24.0% 51.8%

Indian 0.3% 0.2% 0.5%

White 8.5% 7.1% 15.6%

Total 54.6% 45.4% 100.0%

StatsSA (Quarterly Labour Force Survey, Sept 2009)

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KZN demographics of EAP

Population group

Male Female Total

African 40.8% 39.3% 80.1%

Coloured 0.7% 0.7% 1.4%

Indian 6.8% 3.9% 10.7%

White 4.4% 3.5% 7.9%

Total 52.7% 47.4% 100.0%

StatsSA (Quarterly Labour Force Survey, Sept 2009)

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EE reporting and analysis

Year Reports received Reports analyzed % reports analyzed

2001 2369 1782 75%

2003 3252 3252 100%

2005 2762 2085 75%

2007 2858 1493 52%

2009 3695 3369 91%

The 2009 analysis is based on large employers only

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Top and Senior management - 2009

MALE FEMALE

A C I W A C I W FN

EAP 39.2% 6.1% 1.9% 6.7% 34.2% 5.2% 1.1% 5.5% 0%

Workforce profile 13.6% 4.2% 6.4% 48.1% 6.4% 1.9% 2.2% 14.2% 2.9%

Recruitment 16.6% 4.3% 5.8% 42.1% 8.9% 2.1% 2.6% 13.2% 4.4%

Promotions 18.1% 5.6% 7.0% 36.5% 8.9% 2.9% 3.5% 15.5% 1.9%

Skills development 16.9% 7.0% 6.3% 36.5% 10.0% 4.2% 3.0% 16.0% 0%

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Top and Senior management – 10 year trend

2001 2009 % Diff Trend EAP %

African 13.0% 20.0% 7% 73.5%

Coloured 11.6% 6.1% -5.5% 11.3%

Indian 4.0% 8.6% 4.6% 3.0%

White 71.4% 62.3% -9.1% 12.2%

Foreign national

0.0% 2.9% 2.9% 0%

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Professionally Qualified - 2009MALE FEMALE

A C I W A C I W FN

EAP 39.2% 6.1% 1.9% 6.7% 34.2% 5.2% 1.1% 5.5% 0%

Workforce profile 16.8% 6.3% 5.0% 27.4% 16.0% 7.2% 3.1% 16.3% 1.8%

Recruitment 15.8% 7.7% 4.4% 24.0% 15.9% 10.8% 3.1% 15.4% 3%

Promotions 23.1% 6.4% 5.5% 21.9% 16.5% 6.1% 4.1% 15.2% 1..2%

Skills development 19.5% 6.9% 5.5% 21.8% 17.7% 7.2% 4.4% 16.9% 0%

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Professionally Qualified - 10 year trend

2001 2009 % Diff Trend EAP %

African 39.7% 32.8% -6.9% 73.5%

Coloured 6.1% 13.6% 7.5% 11.3%

Indian 4.4% 8.1% 3.7% 3.0%

White 49.9% 43.7% -6.2% 12.2%

Foreign national

0.0% 1.8% 1.8% 0%

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People with disabilities–10 year trend

2001 2009 % Diff Trend EAP %

ALL 0.9% 0.9% 0% +/- 5.5%

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Sector Comparison

Government’s performance is generally far better than that of the private sector in terms of employment equity

The retail /motor or repair services and wholesale trade/commercial agents/allied services are the worst performing when compared to all other sectors who are already performing poorly

Educational Institutions are also among the worst performing employers in terms of employment equity.

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Summary of findings

White dominance at management levels still prevails Worsened by recruitment, promotion and training patterns

Male perpetuation Replacing White males mainly with Black males White women remain dominant when compared to women of other

races

Disability representation has mainly remained flat over the years

Remuneration discrimination on the bases of race and gender persists

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WESTERN CAPE

EMPLOYMENT EQUITY STATUS (OCTOBER 2009 EE REPORTS)

Number of EE Reports analysed from WC

523 EE Reports covering 572 525 employees were analysed from EE Reports submitted in October 2009 reporting period.

3369 EE Reports covering 4 426 972 employees nationally were analysed for the 10th CEE Annual Report.

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Top Management - 2009MALE FEMALE

A C I W A C I W FN

Western Cape - EAP

18.0% 27.8% 0.3% 8.5% 14.1% 24.0% 0.2% 7.1% 0%

Workforce profile 4.3% 10.4% 2.5% 62.4% 1.2% 3.9% 0.9% 10.3% 3.9%

Recruitment 5.4% 11.8% 1.0% 56.2% 2.5% 7.4% 1.0% 11.8% 3.0%

Promotions 4.5% 18.4% 3.4% 46.4% 0.6% 8.4% 1.1% 14.5% 2.8%

Skills development 7.8% 14.5% 4.3% 49.7% 1.9% 6.2% 0.7% 14.9% 0%

Senior Management - 2009MALE FEMALE

A C I W A C I W FN

Province - EAP 18.0% 27.8% 0.3% 8.5% 14.1% 24.0% 0.2% 7.1% 0%

Workforce profile

5.6% 10.7% 3.7% 49.8% 2.4% 5.3% 1.4% 18.6% 2.3%

Recruitment 9.4% 12.3% 3.7% 45.3% 2.6% 4.5% 1.9% 17.0% 3.5%

Promotions 7.1% 16.9% 3.7% 42.8% 2.2% 7.0% 2.0% 16.8% 1.6%

Skills development

11.9% 19.3% 3.7% 27.3% 8.8% 11.6% 1.7% 15.6% 0%

Professionally Qualified - 2009MALE FEMALE

A C I W A C I W FN

PROVINCE - EAP 18.0% 27.8% 0.3% 8.5% 14.1% 24.0% 0.2% 7.1% 0%

Workforce profile

6.6% 16.6% 1.8% 17.4% 10.8% 25.8% 1.2% 18.8% 0.9%

Recruitment 6.2% 16.2% 1.3% 11.3% 17.4% 27.8% 1.0% 16.9% 1.9%

Promotions 9.7% 18.5% 3.3% 17.2% 9.4% 22.0% 1.5% 17.7% 0.7%

Skills development

9.2% 16.9% 2.1% 15.7% 9.7% 25.9% 2.2% 18.4% 0%

Skilled - 2009MALE FEMALE

A C I W A C I W FN

EAP 18.0% 27.8% 0.3% 8.5% 14.1% 24.0% 0.2% 7.1% 0%

Workforce profile

15.3% 18.7% 2.0% 13.1% 12.4% 19.0% 1.9% 16.7% 0.8%

Recruitment 24.2% 15.2% 2.0% 11.8% 17.6% 12.8% 1.8% 13.3% 1.4%

Promotions 17.6% 19.9% 2.1% 8.6% 14.8% 21.8% 1.9% 13.0% 0.3%

Skills development

16.0% 16.7% 2.5% 10.4% 15.2% 19.0% 2.5% 17.6% 0%

General Observations

Coloureds in the Western Cape represent the majority of EAP at 51.8% but they are underrepresented at nearly all the levels.

Whites are overrepresented at nearly all the levels even though they represent only 15.6% of the Province’s EAP.

Africans are also underrepresented at nearly every level, particularly when they are the second majority population group in this province.

Summary of findings continued…

Black Women (i.e. A,C,I) are grossly underrepresented at Top and Senior Management levels.

Whites and Indians are generally over-represented at every occupational level.

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Thank you