Non-compliant listed companies targeted

16 May 2008

The South African government is to embark on a drive within the next few weeks to ensure that companies listed on the JSE comply fully with employment equity legislation, with the offenders being taken to the Labour Court.

Section 43 of the Employment Equity Act empowers the Director-General to assess compliance of an employer against the requirements of the legislation.

“We will be conducting follow-ups with these companies in July and August to determine if they have complied with all the recommendations,” Labour Minister Membathisi Mdladlana told journalists in Cape Town this week.

Mdladlana’s comments came against the backdrop of the department having reviewed six large employers in 2006 in terms of the review process. These firms were Kumba Resources, which is now called Exxaro, Comair, Omnia Group, Verimak, Medi-Clinic and Prism Holding.

He pointed out that a further 60 listed companies would now be reviewed over the course of the 2008/09 financial year.

Turning to skills development, he said more than 75 000 learners had benefited from the departmental skills programmes in the 2006/7 financial year, while a total of 54 900 learners were placed in different social development programmes over the same period.

The department has also engaged in critical youth employment creation programmes through the Umsobomvu Youth Fund.

Last year, the department took Comair Limited to court for breaching provisions of the Employment Equity Act.

The department’s Director-General Vanguard Mkosana filed the application with the Johannesburg Labour Court after several warnings against the airline company.

According to the application at that time, Comair has been found to be in breach of the following provisions of the Employment Equity Act under various sections.

At that time, Comair was ordered to pay a fine of R900 000 as prescribed by schedule 1 of the Employment Equity Act 55 of 1998 and to pay the costs of the application.

Source: BuaNews