Today's Labour News

BL Premium reports that in a far-reaching ruling that will have significant implications for the government’s Covid-19 economic relief programmes, the High Court in Pretoria has ruled that “race, gender, youth and disability” must be taken into account in the awarding of state relief to businesses stricken by the pandemic.  

However, the judges found on Friday that the state’s criteria for evaluating these factors were “vague” and therefore unlawful and invalid.  The full bench referred the criteria used in the distribution of relief funds to businesses back to small business development minister Khumbudzo Ntshavheni for “reformulation” — with a specific order that she “must take into account race, gender, youth and disability”.  The decision will have no effect on funds previously awarded to distressed businesses, but will prevent future relief from being awarded until such time as the invalidated criteria are reformulated.  It is not known if the government will appeal the ruling.  The relief scheme was set up by the government to assist small and medium enterprises hit hardest by the Covid-19 pandemic  After it emerged that empowerment criteria would be used in determining how relief would be allocated, the DA sought an interdict blocking Ntshavheni from considering such criteria.  While the judges dismissed that application, they raised concern over the “vague” way the broad-based BEE (BBBEE) criteria had been formulated by the state.

• Read the full original of the report in the above regard by Karyn Maughan at BusinessLive (paywall access only)
• Read too, DA loses court bid to stop government using race, BBBEE status as criteria for Covid-19 aid, at News24

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