Civil rights organisation Solidarity indicated on Thursday that it is preparing for a huge legal battle over the new Employment Equity Act, saying the Bill grants draconian powers on racial representativity to the Minister of Employment and Labour.

On Wednesday President Cyril Ramaphosa signed into law the Amendment Bill which seeks to advance transformation of South Africa’s workforce by setting equity targets for economic sectors and geographical regions, and requiring enterprises to develop transformation plans.

However, Solidarity is of the opinion that this Act is unconstitutional and that it is directly contrary to an earlier finding of the South African Human Rights Commission which indicated that even in its current format South Africa’s racial legislation is unconstitutional and not in accordance with international norms and values.

Solidarity contends that it had already written to Ramaphosa in August last year to point out that the amendments were unconstitutional.

Solidarity also obtained legal opinion which confirms this, and it has made submissions to Parliament. 

“The President is, therefore, aware of the fact that Solidarity would go to court should he sign this Act into law. This is precisely what he has now done, and we are now preparing for court,” says Solidarity CE Dr Dirk Hermann.

Hermann explains that the Act, which imposes race targets on all sectors, will have dire consequences for South Africa’s economy.

He says new definitions of “designated employers” will force small businesses to remain small and will cost thousands of jobs.

“Any promotion opportunities for those fortunate enough to keep their jobs will be completely stopped. This will mean that the skills exodus will merely be accelerated and South Africa’s economy – like its public service – will become increasingly trapped in a spiral of inefficiency, contraction and imminent collapse. The State’s obsession with race must be opposed at all costs. We simply cannot afford it not to do so,” he adds.

Hermann concludes that without intervention government will pursue its policy of ineffective centralisation, apparent now in its going so far as to take over the human resource function of an organisation.