Employment Equity derek hendrikz
Jul 21, 2015
Copyright © 2015
Derek Hendrikz Consulting
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understandingthe effects of workplaceprejudice & discrimination
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The evil of
discrimination is not
located in
discrimination itself,
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but in the purpose of
discrimination
We are
Creatures
of
Judgement
We Project
and we
Split
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Category boundaries are the
categorisations that we place
people in and the assumptions that
we attach to such categories.
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• Place all assumptions regarding a specific
category on ‘ice’.
• Find similarities.
• First seek to understand before making
judgment.
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Sexism:Discrimination based on gender.
Racism:Discrimination based on race. The belief that
people of different races have different qualities
and abilities, and that some races are inherently
superior or inferior.
Nepotism:Favouritism shown by somebody in power to
relatives or friends, often by appointing or
promoting them to good positions.
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Chauvinism:An excessive or prejudiced loyalty to a particular gender,
group, status, professional class or cause.
Heterosexism:
Discrimination against homosexual men or woman.
Ethnocentrism:A belief in or assumption of the superiority of own social or
cultural group.
Ageism:Discrimination against people of particular age groups,
often in employment or promotions.
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The antidote to discriminatory
practice is a strong anti-
prejudice value system.
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Understanding the
Employment Equity Act
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Designated Groups:
Designated groups are…
Non-white (Africans, Coloureds and Indians),
women and
people with disabilities.
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Purpose of the Act:
To achieve equity in the workplace by:
Promoting equal opportunity
Fair treatment in employment
By eliminating unfair discrimination
Implementing affirmative action measures
To redress disadvantages in employment
To ensure equitable representation
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Designated Employer:
Those who employ 50 or more staff members or
whose annual turnover is more than that set
down in Schedule 4 of the Act (the figures vary
according to the type of industry).
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Prohibition of Unfair Discrimination:
No person may unfairly discriminate, directly or
indirectly…
Against an employee
In any employment policy or practice
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Prohibition of Unfair Discrimination:
Includes:
Race, gender, sex
Pregnancy, marital status, family responsibility
Ethnic or social origin, colour
Sexual orientation, age, disability, religion
HIV status, conscience, belief, political opinion
Culture, language and birth.
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Prohibition of Unfair Discrimination:
Not unfair discrimination to:
Take affirmative action measures consistent with the
purpose of the act
Distinguish, exclude or prefer any person on the
basis of an inherent requirement of a job.
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Duties of designated employers:
Implement affirmative action measures
Consult with employees
Conduct analysis
Prepare an employment equity plan
Report to the director general
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Difference between Employment Equity,
Affirmative Action and Black Empowerment
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Affirmative Action Measures:
Measures designed to ensure that
Suitably qualified people from designated groups
Have equal employment opportunities
Are equally represented in all occupational categories
and levels
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Affirmative Action Measures:
Must include:
Measures to identify employment barriers
Measured designed for further diversity
Making reasonable accommodation for people
to ensure equal opportunities
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Codes of Good Practice:
Further interpretation and definition of BBBEE
and the interpretation and definition of different
categories of black empowerment entities
Qualification criteria for preferential purposes
for procurement and other economic activities
Indicators to measure BBBEE
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Codes of Good Practice:
Weighting to be attached to BBBEE indicators
Guidelines for stakeholders in the relevant
sectors of the economy to draw up
transformation charters for their sector
Any other matter necessary to achieve the
objectives
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Codes of Good Practice:
The overall purpose of the codes of good practice is:
To provide certainty with respect to BBBEE recognition and
measurement
To ensure that BBBEE initiatives may be implemented in such a
way that economic substance takes precedence over form
That there exists just comparability between the BBBEE statuses of
different entities
That competition with respect to BBBEE contribution levels takes
place
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Achieving Employment Equity:
Employers must draw up an employment equity
plan,
setting out the steps they intend taking to
achieve employment equity, over the next one
to five years.
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Achieving Employment Equity:
they need to analyse their workforce profile as
well as their employment practices and policies.
they must consult with unions and employees to
get consensus around it.
Employers need to report their equity plans
regularly to the Department of Labour, which
then monitors implementation.
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Employment Equity Plan:
Objectives to be achieved for each year of
the plan
Affirmative action measures
Numerical goals to achieve equitable
representation
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Employment Equity Plan:
Timetable for each year of the plan
Duration of the plan
Procedures to be used to monitor
implementation of the plan
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Employment Equity Plan:
Internal procedures to resolve disputes
Persons in the workforce, including senior
managers, responsible for implementing
and monitoring the plan
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Monitoring:
Employees or trade union representative may bring and alleged contravention to the attention of:
Another employee
An employer
A trade union
A workplace forum
Labor inspector
The director general
The commission
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Powers of the labor inspector:
Has the authority to enter
Question
Inspect
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Undertaking to comply:
Must be a written undertaking from the designated employer
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Compliance Order:
Is issued when the employer has:
Refused to give a written undertaking
Failed to comply with a written undertaking
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Powers of the Labor Court:
May make appropriate orders including:
To make a compliance order an order of the labor court
Condone the late filing of any document
Direct the CCMA to conduct investigations
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Powers of the Labor Court:
Award compensation
Award damages
Order compliance
Impose a fine
Review performance
Confirm, appeal or vary orders made by director general
Deal with any matter
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Protection of employee rights:
No person may discriminate
No person may favour or promise to favour
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Liability of employers:
Must immediately bring problems under the attention
of the employee
Must consult with employees
If employer fails to take steps, he/she is deemed to
contravening the provision
Is not liable for the conduct of an employee
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Affirmative Action
Affirmative action is a temporary intervention
aimed at rectifying the historical injustices
in terms of occupational advancement and social,
political and economic upliftment
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Affirmative Action
A business strategy
aimed at transforming the social and economic
environment
short-term, occupational advancement strategies
based on preferences in hiring and promoting
people from
previously disadvantaged groups
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Affirmative Action
The objective is for people from
previously disadvantaged groups to obtain access
to job opportunities
based on their potential to be able to do the job.
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Affirmative Action
Enforced through legislation
Affirmative action is not seen as a permanent
tool, but as a
Remedial, short-term strategy to encourage the
upward occupational
Mobility of people from previously
disadvantaged groups.
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Black Empowerment:
Refers to interventions and strategies
based on the belief that there is nothing more
unequal than the equal treatment of unequal's
assumption is that black people do not have the
resources to succeed in business
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Black Empowerment:
Could include programmes such as
literacy training
quality education
accelerated on-the-job training
mentorship and other related programmes
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Black Empowerment:
Black advancement includes an improved quality of
life, that is,
a good salary, decent housing, educational
assistance
community development and direct intervention
by companies regarding political issues that
affect their employees' lives
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BBBEE:
A form of Economic Empowerment
initiated by the South African government
in response to criticism against Narrow Based
Empowerment instituted in the country during
2003/2004
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BBBEE:
Narrow Based Black Economic Empowerment
led to the enrichment of a few black individuals
the goal of Broad Based Empowerment is to
distribute wealth across as broad a spectrum of
South African society as possible
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Employment Equity and Diversity:
The aim of the Employment Equity Act is to
achieve
equity in the workplace through the elimination
of unfair discrimination, as
well as through the implementation of
affirmative action strategies
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Employment Equity and Diversity:
employment equity also refers to the
transformation of the workplace to the point
where disparities between
diverse employees are eliminated and all
employees have been brought to a level where
they can compete for job opportunities on an
equal basis
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Employment Equity and Diversity:
Employment Equity Act distinguishes between
unfair discrimination and fair discrimination
Fair discrimination allows for targeted
affirmative action strategies and actions to
redress the disadvantages
that designated groups in the workforce
experienced in the past
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Employment Equity and Diversity:
To achieve this, the organisational environment
should be receptive to all new entrants at all
levels in the organisation
Unfair discrimination is regarded as
discrimination in employment
practices on the basis of a person's affiliation to a
variety of groupings,
including those relating to race, age and gender
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Employment Equity and Diversity:
Every employer in South Africa is required to
draw up and maintain an employment equity
plan which includes
an analysis of current employment practices to
eliminate possible discriminatory practices
setting objectives and establishing a timetable
with realistic human resource targets to ensure a
representative workforce
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Direct vs. Indirect Empowerment
Direct empowerment focuses only on
ownership and management.
Indirect empowerment is broader and aimed at
distributing wealth across a broad spectrum of
South African society .
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BBBEE Point System:
Direct Empowerment:
1. Equity ownership: 20%
2. Management: 10%
HR Empowerment:
3. Employment Equity: 15%
4. Skills Development: 15%
Indirect Empowerment:
3. Preferential Procurement: 20%
4. Enterprise Development: 15%
5. Corporate Social Investment: 5%
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BEE
CONTRIBUTION
LEVEL
SCORECARD
POINTS
PROCUREMENT
RECOGNITION
1 100 or above 135%
2 85 to 99.99 125%
3 75 to 84.99 110%
4 65 to 74.99 100%
5 55 to 64.99 80%
6 45 to 54.99 60%
7 40 to 44.99 50%
8 30 to 39.99 10%
Non Compliant < 30 0%
Thresholds
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• EME increased from R5 million to R10 million
• QSE: R5 million -R35 million to R10 million - R50
million
• Large entities: R50 million and above
BEE vs. BBBEE
Narrow Based Black Economic Empowerment (BEE) led to the enrichment of a few black (Black African, Coloured or Indian) individuals, the goal of Broad Based Empowerment (BBBEE) is to distribute wealth across as broad a spectrum of South African society as possible.
Broad Based Black Economic Empowerment (BBBEE) is a form of Black Economic Empowerment initiated by the South African government in response to criticism against Narrow Based Empowerment instituted in the country during 2003/2004.
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BBBEE Codes of Good Practice
Supplements the BBBEE strategy by providing
clear guidelines on the measurement and
application of BBBEE
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BBBEE Verification Agencies
The Association of BEE Verification Agencies
(ABVA) is an independent national Membership
Organisation established to lead the black
economic empowerment (B-BBEE) verification
industry as it takes up a vital role in the
transformation of the South African economy.
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EE Committees can be formed by…
Nominating members;
Democratic elections (per occupational level);
and
Voluntary nominations.
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As far as possible, committees must
represent all occupational levels…
Top management;
Senior management;
Middle management;
Professionally qualified and experienced specialists;
Skilled technical and academically qualified workers,
junior management, supervisors, foremen and
superintendents;
Semi-skilled and discretionary decision-making; and
Unskilled and defined decision-making.
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COMPOSITION AND
STRUCTURE OF THE EEC
The Chairperson (Senior Manager)
Employer representatives
The trade union representatives or, employeenominated representatives
Representatives from designated groups
Representatives from undesignated groups
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Size of EE Committee…
Depends on size and structure of your
organisation;
Rule of thumb – between 5 and 12 members
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Critical Success factors for a EEC
Role Clarity
Customised Constitution
Effective Chairperson
Involvement of senior executive
Committee members who can drive the cause
Effective communication methodology
EE Committee development programme
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CONSTITUTION OF THE EEC
Establishment (Right of Existence)
Vision
Objectives
Composition and Structure (Governance)
Roles and Responsibilities
Ground Rules and Conduct at EEC meetings
Information closure
Dispute Resolution
Amendments to the EEC Constitution
General Provisions
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Primary duties of a EEC
Analysis as dictated by the EE Act
Enable processes which ensures that employees can
compete equally for opportunities in the workplace
Ensure skills development
Ensure participation and acceptance of AA measures
Implement a mentorship process for disadvantaged
employees
Monitor implementation of EE initiatives
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THE FUNCTIONS OF EEC
To develop and ensure implementation of an Employment Equity andAffirmative Action Policy
Undertake a statistical profile analysis of the organization
Review/audit all Employment Policies, Practices and Procedures
Develop an Employment Equity Plan
To review and monitor departmental targets established for EmploymentEquity purposes
Monitor the applicability of the Employment Equity Policy
Monitor recruitment and placement decisions
Monitor the training of the Committee
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Identifying Organizational
Non Compliance to EE
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Codes of Good Practice
Minister may, on advice of the commission:
Issue any code of good practice
Change or replace any code of good practice
Any code of good practice, or change or
replacement must be published in the Gazette
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Job Analysis and Descriptions -
A designated Employer must:
Collect information and conduct analysis of employment
policies, practices, procedures and work environment
This will identify employment barriers which adversely affect
people
Analysis must include a profile of the workforce within each
occupational category and level
This will determine the degree of underrepresentation of people
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Recruitment and Selection:
An employer may not require an employee or a
person seeking employment-
not to be a member of a trade union or
workplace forum;
not to become a member of a trade union or
workplace, forum; or
to give up membership of a trade union or
workplace forum;
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Psychological Assessments:
This is prohibited unless the test or assessment
being used:
Has been scientifically shown to be valid and
reliable
Can be applied fairly to employees
Is not biased against any employee or group
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Remuneration:
Every designated employer must submit a
statement on remuneration and benefits received
in each occupational category and level
Disproportionate income differentials
Take measures to reduce differentials
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Termination of Employment:
A contract of employment may be terminated on notice
of not less than
one week, if the employee has been employed for six
months or less
two weeks, if the employee has been employed for
more than six months but not more than one year
four weeks, if the employee has been employed for one
year or more, or if a farm worker or domestic worker
has been employed for more than six months
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Termination of Employment (cont):
A collective agreement may shorten the four weeks
notice period to not less than two weeks.
Notice must be given in writing except when it is given
by an illiterate employee
The notice on termination of employment by an
employer in terms of the Act does not prevent the
employee challenging the fairness or lawfulness of the
dismissal in terms of the Labour Relations Act, 1995 or
any other law
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Developing the EE Plan
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EE Plan – Legal Requirements:
Objectives to be achieved
Affirmative action measures to be implemented
Timetable for each year of the plan
Duration of the plan
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EE Plan – Legal Requirements (2):
Procedures to be used to monitor
implementation of the plan
Internal procedures to resolve disputes
Persons in the workforce, including senior
managers, responsible for implementing and
monitoring the plan
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Questions before starting with the
implementation Plan: What would you like to achieve regarding employment
equity?
How will implementing this benefit you?
What are the obstacles to achieving your goal?
Do you and your team have the authority to implement this learning? Is it within your power?
What stops you in your personal capacity, from achieving your goal?
What resources do you have in achieving this goal?
Is there a price to pay if you succeed in achieving this? If yes, define.
If there is a price to pay are you prepared to apply it?
How will you know if you were successful?
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SMART Objectives:
Specific,
Measurable,
Achievable,
Relevant, and
Time measured.
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PHASES OF THE PLAN
Step 1
Assign responsibility
Step 2
Communication, awareness
and training
Step 3
Consultation
Step 4
Analysis
Preparation
Step 5
Affirmative Action
measures and objectives
Step 6
Time frames established
Step 7
Allocation of resources
Step 8
Plan communication
Implementation
Step 9
Monitor, evaluate, and
review
Step 10
Report
Monitoring
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STEP 1: Assigning responsibility
• EE Managers should:– Be permanent employees
– Report directly to the CEO
– Have key employment equity outcomes
• EE Managers need:
– The necessary authority or mandate
– An appropriate budget
– Time off from other duties and commitments
– Access to required resources
Phase 1: Preparation
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STEP 2: Communication,
awareness and training
Positive outcomes such as:
– Diversity = Creativity
– Representing the customers who we serve
– Better utilisation of human resources
– A more diverse and productive workforce
– A workforce that reflects the relevant labour
market
Phase 1: Preparation
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STEP 2: Communication,
awareness and training
Delivery methods could include:
– pamphlets
– newsletters
– workshops
– videos
– training sessions
Phase 1: Preparation
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STEP 2: Communication,
awareness and training
Managers should:
– be informed of their obligations in terms of the
Act
– be offered training in diversity management and
related skills
– understand that discrimination can be direct,
indirect, or as a result of inaction or
victimisation
Phase 1: Preparation
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STEP 3: Consultation
• Start process as early as possible
– A consultative forum should be established or
an existing forum used if this is appropriate
• Who should be included?
– All stakeholders such as:
– Representative trade unions
– Management
– Shareholders
– Employees
Phase 1: Preparation
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STEP 3: Consultation
• Proper consultation includes:
– the opportunity to meet and report back to
employees and management
– reasonable opportunity for employee
representatives to meet with the employer
– the request, receipt and consideration of
relevant information
– adequate time allowed for each of the above
steps.
Phase 1: Preparation
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STEP 3: Consultation
• Relevant information include:– the particular business environment and circumstances
of the employer
– the relevant economic sector or industry
– relevant local, regional, and national demographic
information about the economically active population
– the anticipated growth or reduction of the employer's
workforce
– the turnover of employees in the employer's workforce
Phase 1: Preparation
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STEP 3: Consultation
• Relevant information include:– the internal and external availability for appointment or
promotion of suitably qualified people from the
designated groups
– the degree of representation of designated employees in
each occupational category and level in the employer's
workforce
– employment policies and practices of the employer.
Phase 1: Preparation
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STEP 4: Analysis
Firstly, to assess all employment policies,
practices, procedures, and the working
environment in order to identify barriers that
may– contribute to the under-representation or under-
utilisation of employees from the designated groups
– contribute to the lack of affirmation of diversity in the
workplace
– adversely affect designated groups
– to identify practices or factors that positively promote
employment equity and diversity in the workplace.
Phase 1: Preparation
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STEP 4: Analysis
What should be reviewed?– all employment practices such as recruitment, selection,
pre-employment testing, and induction
– practices related to succession and experience planning,
and related promotions and transfers
– utilisation and job assignments
– current training and development methodologies and
strategies, and access to training
– remuneration structures and practices
Phase 1: Preparation
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STEP 4: Analysis
What should be reviewed?– employee benefits arrangements
– disciplinary practices
– the number and nature of dismissals, voluntary
terminations and retrenchments
– corporate culture
– practices relating to the management of HIV/AIDS in
the workplace which could be discriminatory
– any other practices or conditions that are tabled by the
consultative forum.
Phase 1: Preparation
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STEP 4: Analysis
What to look for?
– Factors that adversely affect employees from
designated groups
– Subtle or indirect forms of discrimination and
stereotyping
– All practices should be checked to see if they
are fair and do not result in unfair
discrimination.
Phase 1: Preparation
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STEP 4: Analysis
Secondly, to determine the extent of under-
representation of employees from the
designated groups in the different
occupational categories and levels of the
employer's workforce.
Phase 1: Preparation
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STEP 4: Analysis
How do you establish a workforce profile?
– By comparing the number of employees from
designated groups with relevant demographics.
– Sources of demographics information:
• Form EEA 8 of the Regulations
• Statistics South Africa
• HSRC
• Breakwater Monitor
Phase 1: Preparation
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STEP 4: Analysis
An employer can compare his workforce
profile:
– with those of organisations of a similar size
– with those of organisations within the same
sector or industry
– with those of organisations which are
structurally similar and whose activities are
spread over a similar geographic area
Phase 1: Preparation
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STEP 5: Affirmative Action
measures and objectives
How to go about setting goals and objectives?
– a snapshot of their organisation profile and
valuable information on their organisation's
profile in respect of race, gender and disability
– an understanding of which practices or working
conditions adversely affect members of
designated groups
– which practices and working conditions are
conducive to diversity
Phase 2: Implementation
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STEP 5: Affirmative Action
measures and objectives
How to go about setting goals and objectives?– internal statistics regarding the rate of labour turnover
at the various levels
– internal statistics regarding movements such as
promotions and transfers at the various levels
– information regarding the profile of the economically
active population in their region
– comparisons between the organisation's workforce
profile and those of similar organisations.
Phase 2: Implementation
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STEP 5: Affirmative Action
measures and objectives
– AA measures are those measures that need to
be taken to address the employment policies,
practices, and working conditions that were
identified in Step 4 as having an adverse effect
on the employment and advancement of
members of designated groups.
– For each specific practice identified, an
affirmative action measure or measures need to
be formulated and developed.
Phase 2: Implementation
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STEP 6: Time frames
• The duration of a plan should be between one and
five years. Employers should decide on the
duration of their plans given their particular
circumstances and the timeframe in which they
can make meaningful progress.
• The time frame should set out more than the
duration of the plan. It should specify milestones
and the target dates set for reaching these.
Phase 2: Implementation
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STEP 7: Resources
• Budgets should be appropriately allocated in order
to implement the agreed components of the plan.
• People such as the manager(s) assigned with
responsibility.
• Time off for stakeholders involved in the process.
• Infrastructure such as a project office or meeting
room.
• Training and information sharing
• Any other resources that may be appropriate in
the circumstances.
Phase 2: Implementation
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STEP 8: Communicate the plan
Communication should inform stakeholders:
– Who is responsible for the implementation of
the plan
– Where information regarding the plan can be
obtained
– Objectives and duration of the plan
– Dispute resolution procedures
– Roles and responsibilities
Phase 2: Implementation
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