Today's Labour News

Moneyweb reports that the Companies Amendment Bill is expected to make some progress during 2021 after stalling somewhere along the legislative process during 2019 and 2020.  

Unless watered down before enactment, some of the proposed amendments might prompt a level of restraint so far missing in respect of executive remuneration in SA.  One of the most significant sections of the bill, and likely to be one of the most contentious, are the proposed changes to Section 30 of the Companies Act relating to ‘Duties to prepare directors’ remuneration report’.  If enacted, the changes will require public companies and state-owned entities (SOEs) to disclose the details of the highest and lowest paid employees in the company.  The proposed amendment, which reflects the efforts of the labour movement and some academics, will provide the first-ever detailed insight into the extent of the wage gap at individual company level in SA.  In addition “the average and the median remuneration of all employees and the remuneration gap reflecting the ratio between the lowest paid and the chief executive officer or the highest remunerated employee in the company” must be disclosed in the directors’ remuneration report.  Mike Martin of Active Shareholder, a not-for-profit company that helps responsible shareholders to exercise their company rights, has welcomed plans for the improved disclosure.  But there are concerns that the new disclosure requirements might encourage companies to move low-paid employees off their books, through the increased use of precarious outsourcing arrangements, to avoid the spotlight.

• Read the full original of the informative report in the above regard by Ann Crotty at Moneyweb

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