BL Premium reports that proposed amendments to the Employment Equity Act (EEA), which seek to give the labour minister the authority to set employment equity targets for employers across the economy, will trigger a flight of scarce skills and capital.

This was told to MPs by the Institute of Race Relations (IRR) on Tuesday. Parliament is holding public hearings on the contentious Employment Equity Amendment Bill. In its submission, the IRR said the bill, if passed, was likely to trigger excessive costs in the form of disinvestment and emigration. It would also deter investment, limit growth, reduce employment, add to inequality, and make recovery from the Covid-19 lockdown, which has caused unprecedented damage to an already ailing economy, even harder to achieve. The IRR pointed out that a comprehensive socioeconomic impact assessment had not yet been undertaken. The changes proposed in the bill would enable the labour minister, in consultation with the stakeholders of a particular sector, to set employment equity sector-specific numerical targets. The bill also seeks to strengthen compliance mechanisms. Cosatu backed the bill saying it was long overdue. The union federation’s Matthew Parks said: “It is fair, rational and empowers the state to deal with obstinate employers; equally, it allows for regional diversity, which is a matter requiring sensitivity; and it links state tender requirement to compliance with labour laws and good labour practices.” He added that the provisions requiring employers to consult unions were welcomed and would help strengthen collective bargaining and encourage labour market stability.

• Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only)

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