M Mdladlana on companies not complying with equity laws

11 September 2006

Labour Minister Membathisi Mdladlana has, for the first time, named six top
large companies that have failed to implement the Employment Equity Act.

The Minister was speaking at the launch of the sixth annual report of the
Commission for Employment Equity for the period 2005/06, in Pretoria today
(Monday).

“The fact that we have mentioned certain companies is a major step to
achieve compliance. We have taken a deliberate step to name and shame those
that drag their feet. Currently, for the first time, the Director-General (DG)
is conducting reviews on six employers whose representation levels fell in the
unacceptable category. These companies include Kumba Resources, Comair Limited,
Verimark Holdings (PTY) Ltd, Medi-Clinic Group, Prism Holdings and Omnia Group
Limited,” announced the Minister.

He told journalists that there was generally resistance from large employers
in implementing employment equity

Out of the 2 762 reports received by the Commission for Employment Equity in
2005, 2 085 reports, including 55 large companies listed at the Johannesburg
Securities Exchange (JSE), were analysed and ranked because they were complete
and accurate. The level of representation of the designated groups across all
occupational levels were then determined from these reports.

Minister Mdladlana said based on these analyses he was gravely concerned by
the employment equity trends.

“If we continue at this pace we would most probably reach equitable
workplaces only in 40 to 50 years from now. For example, an increase at top
management level of Blacks by 2.1% and an increase of women by 4.6% may appear
to be relatively good, but this increase averaged over a five year period is
actually dismal,” he added.

The Minister said companies should desist from using the old and tired
excuse of lack of skills among blacks as a barrier and instead use their own
resources to develop skills.

He concluded by revealing that the Department would embark on a rigorous
campaign to enforce the law.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168
E-mail: mokgadi.pela@labour.gov.za

Issued by: Department of Labour
11 September 2006