Disastrous Employment Equity Amendment Bill needs comprehensive socio-economic impact assessment
8 July 2021
Yesterday, the Portfolio Committee on Employment and Labour met to finalise the Employment Equity (EE) Amendment Bill. The Bill, in its current form, will deal a hammer blow to the South African economy, which has already been knocked badly out of shape by ruinous ANC policies, Covid-19, and the associated lockdowns.
For this reason, the DA is calling for a comprehensive socio-economic impact assessment to be done on the Bill before it goes any further in the legislative process.
The Bill empowers the Minster of Employment and Labour to set numerical EE targets for any national economic sector after consultation with the Employment Equity Commission and “relevant stakeholders”. In future, state contracts may only be issued to employers that have been certified – by the Minister – as being in compliance with their obligations under the Act. These obligations include compliance with ministerially-determined sectoral targets.
These new powers confer upon the Minister a degree of coercive control that is completely incompatible with the principles of a market-based economy.