Master Builders Association North has urged its member companies, and businesses in general, to immediately take steps to ensure that they comply with the requirements of the proposed amendments to the Employment Equity Act.

Dr Deon Landmann, MBA North Education, Training & Transformation Manager, says the draft Employment Equity Amendment Act regulations were published for comment this year and will form the essence of the proposed Employment Equity Act.

“The regulations were introduced as a result of the Department of Labour’s concern that too many companies were still not complying with the requirements of the Act which was introduced 16 years ago.  The Department believes many black people, women, and people with disabilities, are still relegated to lower  level jobs in the name of a ‘lack of skills’ and that it is now time to deal with the inequalities left behind by the apartheid legacy to achieve socio-economic freedom,” Landmann explains.

Among the proposals contained in the Amended Employment Equity Act is the concept of equal pay for equal work, and discrimination on arbitrary grounds has also been added in terms of unfair discrimination. The amended regulations also include penalties for “breach of confidentiality, undue influence, obstruction and fraud”.

“But, most importantly for South African businesses, failure to consult, conduct an analysis, assign a senior manager, publish reports, keep records, and comply with the Director General of Labour’s rulings to this effect within 90 days can face a stiff fine of up to R2,7 million. MBA North strongly urges its members to immediately establish an Employment Equity Forum and train such a Forum’s members to deal with the new requirements of the Act,” he states.

Landmann says employers affected by the EE Act and its amendments must submit annual reports by the first working day of October every year. “Designated employers are required to consult with employees, and conduct an analysis of the workforce and work environment including policies, procedures and practices. MBA North can assist companies in the implementation of an EE plan and provide guidance on the submission of annual reports as prescribed.”

He adds: “There is a distinct need for employers to come up with some real, innovative and meaningful ways to change discrimination in the workplace by training and raising the skills of previously disadvantaged employees. Real and determined action is needed – we need to stop shying away from our responsibilities as employers.

“Now is the time to establish structures for consultation with all employees to ensure that they are trained and fully understand the EE Act. Companies should immediately elect their EE forum members and have them trained.”

Contact Sarah Mnyandu or Deon Landmann on 011 805 6611 for further discussions on how MBA North can assist companies affected by the new legislation.