BL Premium reports that the Banking Association SA (Basa), which represents all registered banks in the country, has thrown its weight behind legislation to compel businesses to meet employment equity goals.

But, it has called for industries to be directly involved in the setting of targets. Parliament is holding public hearings on a contentious bill which, if passed, will give the labour minister the authority to set employment equity targets for employers across the economy. The Employment Equity Act (EEA) introduced more than two decades ago provides for a system of self-imposed targets that companies set on the basis of the national, economically active population. However, this system has not been effective in transforming the economy by ensuring that more blacks and more women are employed in the top echelons of companies. This prompted the government to push for changes to the law. The bill is also intended to strengthen compliance mechanisms. “Basa supports the tenor of the bill which is aimed at addressing the slow pace of transformation within many SA workplaces,” said Ayanda Baepi of Basa. She said, however, industry had to be directly involved in setting specific targets to take into account the different sector challenges. Basa has thus proposed that the minister should revert to the initial agreement at Nedlac by business and social partners to consult with relevant sector bodies when setting sector targets.

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

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