Demographic Representivity – A Mortal Threat to Private Companies
19 October 2022
The fracas caused by DisChem's ill-advised moratorium on the hiring and promotion of white employees has focused attention on the government's potentially fatal intention to impose demographic representivity (DR) on the private sector in the same manner that it has already done - with such catastrophic consequences - in the public sector.
In his letter of 19 September, DisChem CEO Ivan Saltzman informed employees that "Following a review of the employment equity profile and the recent BBEEE verification process, it is evident that our organisation's efforts to effect transformation in terms of our employee profile remain inadequate."
The letter went on to state that "a moratorium is placed on the appointment of white individuals. This includes external appointments and internal promotions."
Mr Saltzman's letter was triggered, no doubt, by the Employment Equity Amendment Bill that is awaiting signature by President Ramaphosa and that is expected to come into effect in September 2023. The Bill will affect designated employers with more than 50 employees and will empower the Minister of Labour "to determine sectoral numerical targets for the purpose of ensuring the equitable representation of suitably qualified people from designated groups (blacks, women and persons with disabilities) at all occupational levels in the workforce". In other words, the Minister will be able to dictate to companies the racial composition of their staff at all levels of employment.