Labour Department rejects claims that Bill will cost jobs

25 Feb 2011

The Department of Labour has dismissed media reports that jobs of 1.3
million coloureds and Indians could be at risk due to the proposed
labour law amendments.

This follows a statement by trade union Solidarity that about 80 percent
of all economically active coloured people will have to look for work in
other parts of the country. It went on to say in KwaZulu-Natal, the
looming amendments to the Basic Conditions of Employment Act, which
makes national rather than provincial demographics the determining
factor in affirmative action, will result in about 300 000 people of
Indian extraction losing their jobs.

Labour Minister, Mildred Oliphant said: "We do not know the basis upon
which they arrived at these figures. If that is their view, employment
equity as it stands says when implemented, regional and national
demographics must be taken into account, has not caused job losses among
whites. In fact, whites have been over-represented for over 12 years.''

"It doesn't matter for Africans or Coloured workers, their
representation is below their economically active population. The only
reason we have put the proposal on the table is because employers wanted
clarity on how to implement both regional and national demographics
simultaneously.

"It is important that we once again clarify the current status of the
law which states that employers must take into consideration
"demographic profile of the national and regional economically active
population" while the proposed amendment takes away regional and
national to provide the flexibility.

She said: "The consequence of the new proposed amendments is that
employers will have flexibility to decide whether to use regional or
national demographics.''

Oliphant said unions should remember that "this is only a proposal and
if there are unintended consequences, these should be raised at National
Economic Development and Labour Council (Nedlac).''

She said the statistics the department based its decision on come from
Statistics South Africa.

The Minister reiterated that the claims by Solidarity are unfounded,
misleading and mischievous because the proposed changes won't in anyway
result into job losses by either Coloureds nor Indians.

Enquiries:
Mzobanzi Jikazana
Ministerial Spokesperson
Cell: 083 641 2355

Issued by: Department of Labour
25 Feb 2011