New Employment Equity Act comes down to industrial sabotage

6 June 2022

The Employment Equity Amendment Bill, which gives the Minister of Trade, Industry and Competition, Ebrahim Patel, extensive powers to decide for himself where, in his opinion, economic transformation ought to take place, comes down to industrial sabotage.

This will impose further restrictive requirements on particularly large enterprises in addition to the existing pressure on economic growth.

The FF Plus is calling on President Cyril Ramaphosa to not promulgate the Bill, because it will have a negative impact on investor confidence and economic recovery, which will surely not facilitate Black Economic Empowerment (BEE) and transformation.

If the President promulgates the law, it will pose a serious threat to the free-market system and a market-driven economy.

In terms of Section 15(a) of the Bill, the law could grant the Minister absolute power over who is appointed in a company.

This law will further escalate unemployment in South Africa and result in an even higher outflow of expertise and business enterprises from the country.

The FF Plus is, therefore, calling on the business sector to join the party and other role-players in putting pressure on the President not to sign the Bill.

Issued by Jaco Mulder, FF Plus MP and chief spokesperson: Trade, Industry and Competition, 6 June 2022