New-look Equity Bill ruffles some feathers

PARLIAMENT has disregarded objections from business and adopted in principle several key labour law amendments.

The in-principle approval of the Employment Equity Amendment Bill‚ with only a few changes by the committee on Tuesday‚ follows in the wake of the passage of the controversial Labour Relations Amendment Bill.

“Government seems to be blind to the needs of business when it comes to the labour market,” Levy said.

Phala believed the bill’s removal of the right of companies to appeal against the compliance orders issued by the Department of Labour was a violation of the principles of administrative justice and was probably unconstitutional.

Busa members would have to decide what action to take on the amendments once they were adopted‚ she said.

Busa also argued that the too rapid recourse to the Labour Court to deal with cases of non-compliance would be costly and time-consuming.

It believed there should be scope for conciliation and for companies to have the opportunity to make undertakings on their equity plans.

Phala said this was in line with a convention of the International Labour Organisation.

However‚ department chief director Thembinkosi Mkalipi justified the measure on the grounds that it would “fast-track enforcement”.

“The committee has respected the Nedlac process. There have been public hearings and the committee has to evaluate what is in front of it,” he said.

Business strongly opposed the imposition of heavy fines linked to turnover for non-compliance‚ but Mkalipi justified this on the grounds that stiff penalties would be more effective. “Those employers who comply have nothing to fear‚” he told MPs recently.

For more substantial offences – such as the failure to draw up an equity plan‚ report on the progress of its implementation‚ or implement the labour director-general’s recommendations – the bill proposes a fine that is more than prescribed amounts‚ and anything from 2% to 10% of a business’s turnover.

Committee chairman Elleck Nchabeleng rebuffed business’s concerns‚ saying that the law had to protect vulnerable workers. Breaches of the law could not be condoned‚ Nchabeleng said.

Formal voting on the proposals is scheduled to take place on October 15.

The labour committee also has to finalise its deliberations on the Employment Services Bill. — BDLive

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