The Solidarity Research Institute (SRI) recently raised an alarm regarding the potential job losses of 111,000 women and 70,000 white men in South Africa. This comes as a result of the newly enacted Employment Equity (EE) Amendment Act that came into effect on January 1, 2025. The legislation mandates companies to mirror the demographic makeup of the country within their workforce.
Deputy Director Masilo Lefika from the Department of Employment and Labour (DEL) emphasized that companies with more than 50 employees must develop and execute an EE plan spanning from September 2025 to August 2030. This initiative aligns with the five-year sector EE targets aimed at promoting diversity and inclusivity in workplaces across South Africa.
However, this move has sparked controversy and resistance. The Democratic Alliance (DA) has taken legal action against Section 15A of the Employment Equity Amendment Act. The DA argues that these national race quotas embedded in the legislation will have adverse effects on employment opportunities for various communities.
In response to criticisms, Employment and Labour Minister Nomakhosazana Meth defended the legislation by stating that it aims to set numerical targets for equitable representation in all job levels based on consultation and advice from relevant sectors.
Connie Mulder, head of SRI, expressed concerns over the repercussions of these policies on specific demographics within the workforce. According to SRI’s analysis, there is a looming threat of massive job displacements among women and white men particularly within fields such as healthcare and education.
Employers are now faced with stringent regulations where failure to comply could result in significant financial penalties amounting to as much as 10% of their turnover. These measures are part of efforts to enforce employment equity through race and gender scorecards.
Furthermore, SRI’s report highlights some staggering figures: approximately 76,000 female healthcare workers are projected to be replaced by men over five years; around 65,000 female teachers may be substituted by male counterparts during this period; additionally, about 70,000 white men working across various sectors might face displacement by individuals from other racial groups.
The looming deadline for employers to start submitting their race plans by September 2025 underscores the urgency and gravity of these changes within South Africa’s labor landscape. Failure to adhere to these requirements could have severe implications for businesses operating in the country.
Connie Mulder pointed out that there is a glaring oversight in only considering the economically active population when formulating these policies. He highlighted how certain career paths traditionally pursued by men or women are being disregarded under this framework which could exacerbate inequalities in specific industries.
These developments underscore a pivotal moment for South Africa’s workforce dynamics as stakeholders navigate through balancing inclusivity while addressing concerns surrounding potential job losses among specific demographic groups amidst calls for greater diversity in workplaces nationwide.
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