NUM disappointed with DTI's clarification notice 

8 May 2015

The National Union of Mineworkers(NUM) is shocked and disdained by recent Gazetted clarification notice by the Department of Trade and Industry on the 5th May 2015, this termed Notice of Clarification in terms of Sections 9 (1) and 14 (2) of the Broad-Based Black Economic Empowerment Act, 2013. The Minister (Albeit Acting) in 1 (d) of the notice states, "Black participants in Broad-Based Ownership Schemes and Employee Share Ownership Programmes (ESOPS)holding rights of Ownership in a measured entity must only score points under paragraph 2.2.3 under the Ownership scorecard". The paragraph 2.2.3 in the Ownership Scorecard states the following: Economic interest of any of the following Black natural people in the measured entity:

2.2.3.1 Black Designated groups;

2.2.3.2 Black participants in Employee Share Ownership Programme;

2.2.3.3 Black people in Broad-Based Ownership;

2.2.3.4 Black participants in Co-operatives.

The scoring attributed to all the above broad-based entities on ownership to a lousy maximum of 3 points or 3% from the 25 points. Which neither encourages or compel industries to advance and promote broad-based economic empowerment (with workers and communities in mind).

This begs the question on how are we going to win the fight against the triple threats facing South Africans of inequality, poverty and unemployment, when a government department mandated to spearhead economic transformation issues such regressive and backward notices. The broad-based element was introduced upon the realization that black economic empowerment benefited a select few individuals, thus also contributed to vast inequalities in our society.

Ownership of the economy cannot be focused on individual wealth, but societal wealth through co-operatives and employees. What is also ironic is the same DTI is mandated to promote and support these cooperatives, as the NUM we are not going to allow workers to continue enriching monopoly capital and DTI sanctioned few black elites.

We will continue to push for 10% Employee Share Ownership across all sectors for workers (the real creators of wealth in the economy), thus ensuring the sector code alignment process provides meaningful economic participation for both employees and communities.

We thus call on the African National Congress to quickly reign in its deployees, who are diverting the strategic direction towards economic transformation. The second phase of transition can only be achieved with strong government and legislative implementation, that is unapologetic towards redressing the imbalances of the past and attaining economic emancipation for the majority as per the freedom charter.

We shall at all times defend and protect the workers right to economic transformation, Section 77 of the Labour Relations Act empowers us with that ability to embark on mass action against these atrocities from monopoly capital and recently creeping in government departments. Any enemy to transformation and the empowerment of the workers and communities is a direct threat to various NEDLAC Accords, which we are not going to take lightly.

Statement issued by Luthando Brukwe, NUM Head Transformation Unit, May 8 2015