SACCI COMMENT ON EMPLOYMENT EQUITY AMENDMENT BILL

The South African Chamber of Commerce and Industry (SACCI) is concerned by the proposed amendment to the Employment Equity Act to penalize firms based on company turnover. This entrenches a dangerous regulatory precedent as it will ultimately hamper job creation. The amendment will in fact set transformation back and undermine job creation.

Skills development is a pipeline issue. The extent to which business can play a role in transforming the economy depends crucially on the quantity and quality of public education. The administrative problems associated with the SETAs are also discouraging business from taking in new employees and training them for the workplace, even though the 1% workplace levy is effected every month. Government must also take responsibility for the slow pace of transformation which is impacted by weaknesses in the skills development system. Unfortunately, business is being treated as the only scapegoat for the slow pace of transformation.

It is grossly unfair to suggest that business is resisting transformation, as was reported in the media. SACCI takes exception to this statement particularly given that the South African business community is fully committed to transforming the economy. SACCI admits that the pace of transformation has not been satisfactory, but skills shortages due to poor public education continue to hamper its efforts. Business concerns also reside with the cost of compliance and the substantial costs associated with regulations that are being frequently amended, not with the principle of transformation.

Statement issued by Neren Rau, SACCI CEO, August 7 2013

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