The institute made reference to the Gini coefficient index, which revealed that income inequality had risen from 0.59 in 1994 to 0.63 in 2020. It blamed employment equity for this.
“EE helps a relatively small black elite, while 9.1 million black people are now jobless,” said Jeffrey.
The bill will also stall SA's economy, which was hard hit by the Covid-19 global pandemic, according to the institute.
“The bill unfortunately will increase the harm that's already been done. It will prompt a further flight of scarce skills and capital, leave more people unemployed, add to poverty, increase inequality between the small black elite that may benefit and the great majority of black people, who will be further be harmed,” she said.
However, Cosatu in its presentation gave its full support to the possible amendment. The move was prompted by the country's colonial past, argued Matthew Parks. “We support this bill. It is correct, rational, in line with the constitution, progressive and is overdue.
“This is SA; we have a really painful legacy of apartheid and colonialism of almost four centuries, we are still known today as one of the most unequal nations in the world,” he said.
Parks said the country had made significant strides towards meeting employment equites in the public sector.
“But if we are to be honest, in the private sector, most employers are found wanting in so many levels. Hence I think we need to have this employment equity to further strengthen the act but also to put pressure on employers who are the real ones who must deliver this change,” he argued.