Employment equity amendment act sparks controversy between DA, ANC

THE Employment Equity Amendment Act (EEAA) is the latest contentious issue that has divided the two major parties in the Government of National Unity (GNU).

The DA is taking legal action over a section of the amended Employment Equity Act, claiming it creates race-based employment quotas that will exclude and harm certain segments of the population.

On April 15, the Department of Employment and Labour published two sets of Employment Equity (EE) Regulations following the commencement of the EEAA on January 1, 2025.

These regulations include:

• General administrative regulations: These provide standardised forms and templates for equity analysis and planning, enforcement tools, and processes for obtaining or withdrawing an EE Certificate of Compliance.
• Regulations on sector numerical EE targets: These introduce five-year numerical targets for designated groups across 18 economic sectors and four upper occupational levels, including top and senior management, as well as persons with disabilities.

The department described these regulations as a pivotal step toward advancing transformation and inclusivity in the South African labour market. Employers with 50 or more employees are required to align their Employment Equity Plans with the sector targets. Smaller employers are exempt from the reporting requirements but may still request compliance certification.

The DA’s court action has further strained relations between the DA and the ANC, which has accused the DA of being anti-transformation. The DA has countered these claims, stating that it supports redress in the economy.

The party is challenging section 15A, which it claims imposes binding quotas and grants unchecked powers to the government. This section sets numerical targets that must be met by different employers in various industries.

“Under the scheme, the Minister of Employment and Labour would acquire the power to set numerical targets for the demographic composition of any designated employer, which includes every private and public sector employer with 50 or more employees,” the party stated in its court papers.

The DA argues that the intention behind this legislation is not merely to establish numerical targets but to enforce quotas that must be achieved under the threat of severe penalties, including the inability to conduct business with the state.

In its court papers, the DA said in the past, each designated employer’s Employment Equity plan would contain numerical goals appropriate for that employer’s situation. Under the proposed scheme, every employer’s Employment Equity plan must adopt a one-size-fits-all approach prescribed for that employer’s sector.

Another concern is the power given to the minister to set these quotas.The DA stated that the power to determine compliance falls to the director-general (DG) or any other body applying the Act.

DA Labour spokesperson Michael Bagraim expressed concerns that the plan to set hard and fast targets is anti-transformational and will lead to businesses suffering.“Social engineering of any nature is incredibly anti-business growth. We are not resisting redress in any way; what we want to do as the DA is to protect rights under the Constitution. We want inclusive growth, we need racial inclusion and not exclusion, and we want economic growth,” Bagraim said.

It was reported in the media that ANC secretary-general Fikile Mbalula said the DA’s opposition to transformation is evident through this court action. “Through this act, they are drifting from the spirit of the Government of National Unity and positioning themselves outside the project of nation-building and shared prosperity. Transformation, equity, and diversity are not up for negotiation.”

Political analyst Syabonga Ntombela said the GNU is unlikely to collapse as a result of this battle.

“I’ve come to believe that no policy difference would lead to the GNU’s dissolution. The two major parties, the ANC and DA, forged this alliance knowing very well they have differing ideologies, which essentially means differing policies.

"The Employment Equity Act is another contentious piece of legislation that will test the bonds of the GNU. It’s unfortunate these parties have to take the court route to resolve their differences; how can we expect them to co-govern the country and deal with matters internally without seeking interventions from outside?” questioned Ntombela.

The DA is not the only party challenging the regulations. Two of South Africa’s major employer organisations, the National Employers’ Association of South Africa (Neasa) and Sakeliga, have launched a joint legal challenge.

Sakeliga CEO Piet le Roux said the latest regulations go further than earlier drafts, effectively limiting the number of white men in senior roles.

“Earlier drafts contained quotas for coloureds, Indians, blacks, and white women, as well as different sexes. Now the latest regulations have scrapped all of those and made their target just white men,” Le Roux said. “White men should, in the next five years, be limited to as little as 4% of some employment categories.”

While white men are not explicitly mentioned, Le Roux noted that they are excluded from the definition of designated groups: “You only get the white male percentage if you subtract the rest from 100 and then you are left with 4%. That basically puts white people on par with foreigners.”

He argued that companies should be free to hire on merit without seeking permission.

Spokesperson for the Department of Employment and Labour Teboho Thebejane said: “Every citizen has a constitutional right to challenge anything at court. The department followed a clear consultation process before finalising processes such as this.”

Cape Times