Business Unity SA goes to court over equity targets

Business Unity South Africa (Busa) is launching a legal case against the department of employment and labour over the employment equity sector targets which came into effect on 1 September.

- Aarti Bhana

Busa said it was not opposing the Employment Equity Amendment Act or the principle of sectoral numerical targets under Section 15A of the law, but cautioned that “transformation must be implemented correctly”.

“In Busa’s view, the current sector targets are fatally flawed both substantively and procedurally. If allowed to stand, they risk undermining the very goal of an inclusive, transformed economy,” the organisation said in a statement.

The Act, which became law in January, sets hiring quotas for 18 economic sectors from mining and transport to construction and agriculture, in a bid to increase employment opportunities for “designated groups” including blacks, women and people living with disabilities.

Furthermore, companies with 50 or more employees must align their employment equity plans with the new sector-specific targets which have to be implemented from 1 September to 31 August 2030.