Only 34% of companies inspected in 2024 met South Africa's Employment Equity requirements, according to the Department of Employment and Labour.
The Employment Equity Act, introduced in 1998, seeks to eliminate unfair discrimination in the workplace and promote employment equity to address the lingering effects of apartheid.
Despite various government efforts to redress historical imbalances, South Africa remains one of the most unequal countries in the world, according to the World Bank.
Recently, the country’s affirmative action laws have also attracted criticism from right-wing groups such as AfriForum and Solidarity, who argue that these laws unfairly target white South Africans.
Political parties such as the Democratic Alliance (DA) and Freedom Front Plus (FF Plus), which form part of the Government of National Unity (GNU), have also called for their scrapping, arguing that they stand in the way of job creation and economic growth.
Minister of Employment and Labour, Nomakhosazana Meth, has revealed in a parliamentary reply that many companies are failing to comply with the Act, according to Eyewitness News. During the 2023/24 financial year, out of 3,152 workplaces inspected, only 1,082 met the compliance standards.
Meth added that the non-compliant companies were issued notices to comply, resulting in 210 workplaces being referred for prosecution for failing to meet the requirements.
"All the non-compliant workplaces were issued with notices. Two hundred and ten workplaces that failed to comply after notices had expired were referred for prosecution," Meth said.
Companies are said to have failed to meet the requirements of the Employment Equity Act, including non-compliance with workplace transformation, UIF, and Compensation for Occupational Injuries and Diseases Act regulations (COID), as well as not addressing the need for fair representation and accountability in the workforce
Last year, Meth raised concerns about the country’s high unemployment rate and introduced a comprehensive strategy to address labour violations and promote fairness in employment practices. The plan included hiring an additional 20,000 labour inspectors to ensure companies adhere to labour laws.
“Since assuming office in July, we have intensified our efforts to ensure adherence to labour laws across all nine provinces of the country through high-impact blitz inspections and site visits, alongside on-the-spot fines for violators,” she said at the time.
Manelisi Luxande Acting Chief Director of the Department of Labour, when delivering the Inspection and Enforcement Services (IES) branch Status of Compliance Report last year, pointed out that the transformation of workplaces was stagnant.
"The inspectorate was seized with the transformation of workplaces and yet transformation was stubbornly stagnant," he said at the time.
“The inspectorate is focused on transforming workplaces, yet progress remains stubbornly slow,” Luxande said