Employment and Labour on 20th Commission for Employment Equity (CEE) Annual report 2019/20

It’s business as usual as South African workplaces grapples over slow pace towards achieving equity

​​Despite efforts to transform the labour market, an analysis of the workforce movement in South Africa indicate an apparent pervasive and persistent preference in the appointment, promotion and development of the White and Indian population groups, particularly at the top two occupational levels, this is according to the 20th Commission for Employment Equity (CEE) Annual report 2019–20.

Under the tag - “Transformation makes business sense" - a three-year trend analysis from 2017 to 2019 showed that the White and Indian Population groups generally remain over-represented against their national economically active population (EAP) whereas the African and Coloured Population Groups remained well below their respective EAPs at the top management level.

The three-year workforce profile trends starting from 2017 to 2019 shows that Africans account for 78,9 percent of the national economically active population (EAP), Coloureds account for 9,7 percent of EAP, Indians account for 2,7 percent and Whites account for 8,7 percent.

The EAP includes people between the ages 15 to 64 years, who are either employed or unemployed, but seeking employment.

The CEE report says in 2019 the White group occupied 65,6 percent of top management positions compared with (2018: 66,5 percent), (2017: 67,7 percent). The Indian group in 2019 occupied 10,3 percent compared with (2018: 9,7 percent), (2017: 9,4 percent) in to management positions. While the Coloured group in 2019 notched 5,6 percent against (2018: 5,3 percent), (2017: 5,1 percent) and the African group were laggards with 2019 representation at 15,2 percent compared to (2018: 15,1 percent), (2017: 14,3 percent) at top management.

In the gender stakes males in 2019 occupied 75,6 percent of top management positions compared with female at 26,4 percent. In 2018 Males accounted for 76,5 percent while females for 23,5 percent, whereas in 2017 males accounted for 77,1 percent and females for 22,9 percent.

The foreign nationals at top management in 2019 accounted for 3,3 percent, compared to 2018: 3,4 percent and 2017: 3,4 percent. The report says the foreign national group representation remained constant, which suggests that there may not be skills transfer at this level.

People with disability at top management level the report showed an insignificant increase with numbers showing in 2019 a representation of 1,5 percent, against (2018: 1,3 percent) and (2017: 1,3 percent).

Meanwhile, the senior management profile, workforce movement and skills development trends showed that White group in 2019 had 53,7 percent, (2018: 54,4 percent) and in (2017: 56,1 percent) representation. The Indian group in senior management in 2019 accounted for 11,4 percent, compared to (2018: 11,1 percent) and in (2017: 10,9 percent). The Coloured group in 2019 had 8,0 percent and in (2018: 8,0 percent) and in (2017: 7,7 percent). Whilst the African group in 2019 had a 23,5 percent representation compared to (2018: 23,2 percent) and (2017: 22,1 percent). The foreign group in the same period of review was constant at just over three percent.

Commission for Employment Equity Chairperson, Tabea Kabinde said that the report shows that the workplace remains on the same trajectory at the Top Management level. Kabinde said there was nothing significant or change especially at top two occupational levels (top and senior management).

“This does worry me, because it suggests that the pace of transformation and representation is very slow and that it will take long for representation to reflect the country's EAP.

“The Bottom line is that there is no will to effect transformation," she said.

On the gender front males on average in the three-year trend analysis their representation hovered at around mid-sixty percent, whereas that of females averaged at 34 percent.

Regarding gender movements, Kabinde said transformation was very slow.

“This being women's month – it is almost as if employers do not hear the plight of women - that we are here. We want our place at the table, we are capable. We are not asking of you to give us to give us something that we should not have access to. We say recognise us, recognise our skill(s), and recognise what we bring to the party, said Kabinde.

The area where the populous African group has been relatively stable has been the professionally qualified – wherein over the past three years the group has been hovering between 41 and 43 percent. In the skilled level the African group have been highly represented at an average of 63 percent in the past three years. An army of African group is found in the unskilled category with their representation at over 80 percent.

The CEE report says that whilst South Africa has stringent legislation governing the appointment of Foreign Nationals, however there has been an increase in the appointment of Foreign Nationals at entry occupational levels, i.e. Semi-skilled and Unskilled Levels.

The Commission for Employment Equity (CEE), is a statutory body established in terms of section 28 of the Employment Equity Act (EEA). The report covers the period from 1 April 2019 to 31 March 2020. The purpose of the EEA has not yet been achieved in that significant transformation in managerial decision-making and representation has not been achieved.

Over the 20 years of employment equity reporting, the representation of Persons with Disabilities, as a designated group has remained extremely low. The analysis over three years, i.e. 2017 to 2019 indicates that the representation of Persons with Disabilities in each occupational level remained constant no higher than 1%.

Meanwhile, the CEE says the proposed Employment Equity Amendment Bill of 2019 was approved in February 2020 by Cabinet for tabling to Parliament.

The Primary objectives of the amendments are: to empower the Minister to regulate employment equity sector targets for the designated groups to ensure their equitable representation of suitably qualified people from these groups at all occupational levels in the workforce; to reduce the regulatory burden on small employers, i.e. those employers who employ less than fifty employees. Such employers will be exempted from the obligations of Chapter Three i.e. the implementation of affirmative action. All employers are, however, obligated to comply with Chapter 2 of the Employment Equity Act (EEA) i.e. the prohibition of unfair discrimination in the workplace; and to promulgate Section 53 of the EEA to allow for the issuing of an Employment Equity Certificate of Compliance as a prerequisite to accessing state contracts. This amendment seeks to facilitate a higher degree of compliance.

In preparation for the implementation of amendments, the CEE and Department of Employment and Labour will continue to engage several sectors to deliberate on the setting of sector targets and these it is hoped will be finalised next year.

In the 2019 period, a total of 27 127 reports were received, a drop of -1,3 percent. The reports represent 7 332 072 employees. the majority of reports submitted were from the Manufacturing, Wholesale and Agriculture Sectors.

While the current report does not reflect the effects of Covid-19, Kabinde expects worst to come out the next year's report due to companies shutting down and scaling down operations.

The CEE Commission is expected to host a joint webinar with the B-BBEE Commission on the 31 August 2020, to discuss the 20th CEE report.

Details on the webinar will be shared closer to the date.  

For more media enquiries contact:
Mapula Tloubatla
Media Liaison Officer  
060 989 7509

OR

Teboho Thejane
Departmental Spokesperson
082 697 0694

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