BEE AND EMPLOYMENT EQUITY

Transcription

1 BEE AND EMPLOYMENT EQUITY Nola Matinise Thembakazi Rala Mandisi Tele Nangamso Ndima Pumla Mzayiya Noluthando Tshetu Zoleka Msizi Mthetho Hoza 1

2 COURSE OUTCOMES Define and describe the BEE process Define and describe Employment Equity Understand the legislative framework behind these concepts. Link BEE to Employment Equity 2

3 1. Background 2. What is BEE? 3. BEE Legislation 4. BEE Scorecard 5. Critics about BEE 6. Benefits of BEE 7. Purpose of EE CONTENTS 8. Objectives of EE 9. Who does EE apply to? 10. EE Plan 11. Why implement EE now 12. Barriers to EE 3

4 1. BACKGROUND In the decades before South Africa achieved democracy in 1994, the apartheid government systematically excluded African, Indian and Coloured people from meaningful participation in the country's economy. This inevitably caused much poverty and suffering - and a profoundly sick economy. The distortions in the economy eventually led to a crisis, started in the 1970s, when gross domestic product (GDP) growth fell to zero, and then hovered at about 3.4% in the 1980s. At a time when other developing economies with similar resources were growing, South Africa was stagnating. 4

5 2. WHAT IS BEE? Black Economic Empowerment (BEE) is a program launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups who are SA citizens, economic opportunities previously not available to them. It includes measures such as Employment Equity, skills development, ownership, management, socio-economic development and preferential procurement. 5

6 BEE DESCRIBED There are two options to consider when implementing BEE. Direct Empowerment entails changing the ownership, executive management and management scenarios to include previously disadvantaged individuals. Indirect Empowerment calls for the implementation of Human Resource related programmes or processes that empower current employees, small businesses and the community. 6

7 3. LEGISLATION On 9 February, 2007, the first BEE Codes of Good Practice was gazetted by the South-African Government. The BEE legislation is supported and functions in conjunction with various other forms of Legislation, including the Employment Equity Act, Skills Development Act, Preferential Procurement Framework and others. This newest release of the Codes is also known as Broad Based Black Economic Empowerment or BBBEE. 7

8 4. BEE SCORECARD Element Weighting Compliance Targets Ownership 20 points 25%+1 Management Control 10 points (40% to 50%) Employment Equity 15 points (43% to 80%) Skills Development 15 points 3% of payroll Preferential Procurement 20 points 70% Enterprise Development 15 points 3% Socio- Economic Development 5 points 1% 8

9 .Reverse racism. 5. CRITICS ABOUT BEE.Rather use a policy of qualification equality....creates a brain drain....leads to skills shortage..only serves an elite few 9

10 6. WHY EMBRACE BEE? The Benefits Safeguard existing business Growth in current business Transforming and vibrant economy Lower tax rates for all Greater efficiency and competitiveness Increased productivity and improved customer relationships Increased investment in South Africa by foreign investors Reduction of unemployment, poverty and crime 10

11 PURPOSE OF EE Promoting equal opportunities and fair treatment on employment through eliminating of unfair discrimination Implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups in order to ensure their equitable representation in all occupational categories and levels in the workplace 11

12 Designated employers WHO DOES EE APPLY TO? Employers who employ more than 50+ employees Whose annual turnover is more than those stipulated in Schedule 4 of EEA. Designated groups Black people Women People with disabilities 12

13 EE PLAN The following need to be covered in the EE plan: The objectives to be achieved for each year of the plan; The affirmative action measures to be taken. The numerical goals to achieve the equitable representation of underrepresented groups. Time table for each year of the plan 13

14 EE PLAN continued Persons responsible for monitoring the plan Duration of the plan (1-5 years) Company procedures and policies should be used to evaluate the plan. Eradication of unfair discrimination of any kind in hiring, promotion, training, pay and benefits 14

15 WHY IMPLEMENT EE NOW? Disparities in the Labour market in: Employment Occupation Income Pronounced disadvantages for certain categories of people Compliance to legislation 15

16 BARRIERS TO EE Sexism, racism or prejudices which manifest in the workplace Physical barriers Lack of access to education or training chilly climate : environment which has the effect of excluding or undermining a person or a group of people in a working environment Lack of awareness of cross-cultural issues 16

17 CONCLUSION The need to address the inequalities of the Apartheid era are well documented and BEE represents a commendable method to bring about transformation. Like any new regulation, the implementation of BEE is certainly a challenge for business and those that do it better than their competitors will gain significant advantages in the market place. The HR Profession has an important role to play to meet those challenges, particularly in relation to the employment equity and skills development elements of BEE. 17

18 REFERENCES Janish, P Keep in Step Broad-based BEE for small business: Be a Winner Series for South African Entrepreneurs. South Africa: Frontrunner Publishing (Pty)Ltd. Gqubule, D Making Mistakes Righting Wrongs: Insights into BEE. Jeppestown: Jonathan Ball Publishers (Pty)Ltd. Anon Equity Act: a practical guide. Daily Dispatch: 18, October 21. Wu, C BEE vital to enhance access, but must have flexible targets. Star: 2, February 24. Matyu, J Get-rich-quick mentality taking over BEE to detriment of the poor. The Herald: 6, October 28. Khumalo, S. & Mope, N.M Beyond contract work, and trust relation. Business Report. Mail & Guardian. Buthelezi slams affirmative action [23 August 2007] BBC. Tutu warns of poverty: powder keg. [12 November 2009] South Africa Employment Equity Act, No. 55 of Pretoria: Government Printer. South Africa Broad Based Black Economic Empowerment Act, No. 53 of Pretoria: Government Printer. South Africa Constitution of the Republic of South Africa, No. 108 of Pretoria: Government Printer. Meyer, M Managing Human Resource Management Development: An outcome based approach. South Africa: LexisNexis. Rose, R. & Mtshali, L Vodacom faces BEE deal probe. Business Times. 1, February 28. Williams, M A shot in the arm: The DTI has a fund that can help black businesses when they need it most. Sunday Times: 12, February 7. 18

19 Source: Source: Source: so-are-chinese-are-fully-black/ Source: Source: Source: REFERENCES Source: Source: Source: Source: 19

20 Questions?? Comments?? 20

21 We Thank You! Ons bedank U! Siyabulela! Re a leboha! 21