Oliphant wants bigger fines for equity evasion

The Labour Department is considering asking President Jacob Zuma to enact harsher punishment for companies failing to comply with employment equity laws.

Labour Minister Mildred Oliphant yesterday launched the Commission for Employment Equity's annual report. It showed that the majority of top posts were still held by white men.

The report showed that 68.5% of top management positions were held by whites last year, 14.4% by blacks, 8.9% by Indians, 4.9% by coloureds and 3.4% by foreign nationals.

"We challenge those who believe that the employment equity and affirmative action policies are past their sell-by date to read this commission's report carefully.

"Do they believe we have achieved what the Employment Equity Act set out to do?" she asked.

Oliphant said the government should seek harsher sanctions against firms that failed to comply.

"The report once again points to the painfully slow pace of transformation in the South African labour market.

"It also mirrors the glaring lack of appetite for transformation, especially by big corporates."

To date 21 companies, more than half of which are JSE-listed, have been fined for non-compliance.

"Commentators ridicule the maximum amount that an offending employer could be fined as too small to be a deterrent, as some employers simply budget for this in case they get caught.

"It is this state of affairs that leaves us with no option but to consider drafting in higher consequences for noncompliance."

The report said men held 78% of top management and 66.7% of senior management positions.

In the professionally qualified category, 41.5% of positions are occupied by blacks, 37.5% by whites, 9.7% by coloureds, 8.5% by Indians and 2.8% by foreign nationals.

Semi-skilled positions were mostly held by blacks at 76.1%.

Men were better represented across all categories than women.

The commission received 26255 reports last year, 4.8% more than it had in the previous year.

Oliphant said employers alone were not responsible for compliance with employment equity laws.

"There are instances where workers unwittingly add to this problem through complacency."