M Mdladlana on Employment Equity Act violation

Court to decide on fate of equity flouting accused
employers

18 September 2006

The Durban Labour Court will on Wednesday, 20 September 2006, hand down two
separate judgements against Newcastle-based textile firms charged with
violating provisions of the Employment Equity Act.

In what could mark the first ever successful prosecution of its kind under
South Africa's equity legislation, the two companies, Jinghua Garments and
Wincool Industrial are facing fines of up to R500 000 if found guilty. The
companies face charges of failing to comply with Sections 20 and 21 of the
equity law, which require employers to display the law on their notice boards
and oblige them to send their equity plans to the department respectively.

The court postponed the two cases on 19 April 2006, after they had been
referred to it last year following a bust during a series of blitz inspections
by Labour Department officials in the Newcastle area. The Labour Department has
reiterated its confidence that judgement against the two would send a strong
warning to others about government's intolerance of employers who deliberately
flout the law.

Labour Minister Membathisi Mdladlana has said the prosecutions will go a
long way towards demonstrating to both private and public sector employers the
government's seriousness about transforming the workplace "Employment equity is
not about to be scrapped and it is time we live with that fact," the Minister
said.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168

Issued by: Department of Labour
18 September 2006

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