Employment equity targets a missed opportunity

Ofall the policy areas that we work with, transformation remains the most controversial and delicate.

- Theo Boshoff

If done correctly, transformation can be a real asset to the agriculture sector as it unlocks the latent capabilities of those who may not otherwise get a chance in the mainstream economy. If done wrong, transformation can pose a serious challenge for companies and even those whom it seeks to advance.

Employment equity is a specific subset of transformation that seeks to advance previously disadvantaged individuals in the formal employment sector so that they can compete on an equal basis with previously advantaged individuals. The concept is noble and deserves to be supported.

AMENDED LEGISLATION

Until recently, companies with a turnover that exceeded a certain threshold was required to formulate employment equity plans containing targets that each entity seeks to achieve over a five-year period. However, the pace of transformation at senior and top management levels in particular has been slower than expected. As a result, Parliament amended legislation to allow the Minister of Employment and Labour to identify sectors and set targets that companies must reach over a five-year period.

In essence, the amendments allow the Minister to intervene and substitute a company’s targets with a sector-wide target. It also changed the threshold for these companies from a turnover-based figure to any company that employs more than 50 people.