Dear Member Representative

The 2020 EE Act Amendment Bill is in the process of being passed into law, having already been passed by Parliament. Its aim is to speed up the pace of transformation within the private sector.

The Bill stipulates that any employer with more than 50 employees who want to do business with any arm of the State will need a Certificate of Compliance in order to do so. In order to obtain a Compliance Certificate, an employer in any Sector or Sub-Sector will need to comply with its Sector’s or Sub-Sector’s Sector Targets, or advance acceptable ‘reasonable grounds for its failure to do so.

The Bill also provides for compliance with a Sector’s Sector Targets to be used by the Director-General of Labour as a criterion in assessing whether a designated employer has complied with the EE Act or not. As you are aware, a fine of 2% of turnover can be levied in the event of the Labour Court finding that a designated employer has not done so.

SEIFSA, your umbrella body, has been mandated by the SEIFSA Council to formulate a response to the Sector Targets below proposed by the Department of Employment and Labour (‘DoE&L’) for the Manufacturing Sector, under which most of the SEIFSA affiliated member companies reside.

Please reference the Standard Industrial Classification Divisions attached i.e., Division 24; 25; 26; 27; 28; 30; 33 and for companies engaged in the plastics Division 22.

SEIFSA will be working with Adv Jan Munnik, the Managing Director of EES-SIYAKHA, a specialist Employment Equity consultancy, with a 22-year track record, who comes highly recommended and has practical and hands-on experience in assisting individual employers in our sector and employers and employer bodies in other sectors.

Level Male Female Total Black
Black A C I Black A C I
Top Management 25% 21.6% 2.7% 0.7% 25% 21.6% 2.7% 0.7% 50%
Senior Management 30% 25.9% 3.2% 0.9% 30% 25.9% 3.2% 0.9% 60%
Professionally Qualified/ Middle Management 38% 32% 3.9% 1.1% 38% 32% 3.9% 1.1% 75%
Skilled Technical/Junior Management 44% 38% 4.7% 1.3% 44% 38% 4.7% 1.3% 88%
Employees with disabilities 2%
Sector Targets proposed by the DoE&L for Sub-Sectors 6 and 7 of the Manufacturing Sector

The consensus view amongst SEIFSA affiliated member companies is that the above targets (largely informed by the BBBEE Generic Scorecard) are ambitious, not informed by employer input, and in all likelihood unattainable.

In order to formulate a SEIFSA response to the above proposed targets, reflective of the views of the broader membership, as represented by the affiliated Employer Associations, who in-turn represent their respective membership we need your assistance.

Please note that if we do nothing and we don’t work on a response, the above in all likelihood may well become our targets.

Accordingly, what we require from you is that you:
(a) Forward the last 3 EEA2s submitted by your organisation (at the end of 2021, 2020, and 2019) to the contact person and email address referred to below.

(b) Complete SIC codes (by completing rows 3 and 6 (if applicable) and below them ticking the description that best describes your business) and also return to the email addresses below together with your EEA 2 Forms for the last three (3) years

(c) Send all the documentation by email to / copying no later than Friday, 18 February 2021       
We will arrange for a feedback session once the analysis and response has been completed.

Should you require further clarification on this project please View webinar on 11 February 2022  of the Special SEIFSA Council meeting.