The proposed amendment to the Employment Equity Act, which would penalise firms based on company turnover, would set a “dangerous regulatory precedent” that would hamper job creation and set transformation back, the South African Chamber of Commerce and Industry (Sacci) said on Wednesday.

The proposals introduced in the Bill included dealing with unfair discrimination by employers in respect of terms and conditions of employment for employees doing the same work, similar work or work of equal value.

Further, the proposed amendments would allow an employee, including lower paid employees, to refer unfair discrimination claims to the Commission for Conciliation, Mediation and Arbitration for arbitration in certain circumstances.

Designated employers who fail to prepare and implement their employment equity plan could also be referred directly to the Labour Court by the labour department director-general for a fine, without first securing an undertaking or issuing a compliance order.

CEO Neren Rau stated that business was being treated as the only scapegoat for the slow pace of transformation, but argued that government should also take responsibility for the lagging progress.

“The extent to which business can play a role in transforming the economy depends crucially on the quantity and quality of public education,” he said, citing weaknesses in the skills development system.

The administrative problems associated with the sector education training authorities were also discouraging business from taking on new employees and training them for the workplace, even though the 1% workplace levy is effected every month.

Rau added that the South African business community was fully committed to transforming the economy and, while transformation was admittedly not satisfactory, it was grossly unfair to suggest that business was resisting it.

“Business concerns also reside with the cost of compliance and the substantial costs associated with regulations that are being frequently amended - not with the principle of transformation,” he concluded.