New law to force South African companies to report pay differences between executives and workers

[BusinessTech]

New law to force South African companies to report pay differences between executives and workers

President Cyril Ramaphosa's cabinet has approved the publication of the Companies Amendment Bill of 2021 for public comment, with the draft bill set to be officially gazetted in the coming weeks.

 

[grok]

Except of course for cadre ex-presidents..

For them the whole of cabinet thought, hmm our sapotas are poor, reportedly earning less that 1 Randela a day, but R240mil of taxpayer money will be the fairest amount to spend on the corrupt butternuts compound. Then gaps don't count né..

 

[ToxicBunny]

Yes because knowing this information is going to solve everything... Its probably just going to cause more issues in the labour market come wage negotiation time.

 

[Pegasus]

I am sure this will inspire the lower paid workers to up-skill themselves and perhaps even start their own companies.

 

[mister]

I am sure this will inspire the lower paid workers to up-skill themselves and perhaps even start their own companies.

burn things.

 

[Gaz{M}]

Well this is dumb. Obviously the lowest paid worker will be a janitor or something. So who cares if the Ceo earns R30m while a normal janitor earns R5000. It doesn't help with proving anything.

 

[Thor]

& people wanted to tell me Cyril is the good guy, lol. He's worse than Zuma.

 

[rvZA]

This is why owning a company in South Africa is so dangerous. But, hey, at least the big companies are used to things like this. Good luck with future laws and regulation that may arise from this.

 

[DreamKing]

& people wanted to tell me Cyril is the good guy, lol. He's worse than Zuma.

I said that before.

 

[DreamKing]

sars will thank CR that SA will lose the entire highest earning tax payers.

 

[LCBXX]

The ANC are awesome at deflection. They're trying to blame companies for enriching executives whist the ANC keeps fscking the poor by stealing the taxes executives pay.

 

[Gatecrasher]

It is not going to reduce the salaries of executives.
Its going to encourage companies to only hire executives and to use labour brokers/temporary staff instead of employing lower paid workers.
More unintended consequences for ANC policy.

 

[ToxicBunny]

It is not going to reduce the salaries of executives.
Its going to encourage companies to only hire executives and to use labour brokers/temporary staff instead of employing lower paid workers.
More unintended consequences for ANC policy.

Ahhh but see labour brokers are evil, so the ANC have thought of that already..... you must insource everything and pay people more.

 

[Kosmik]

Don't see why a private company is required to disclose this? Listed or parastatals sure.

 

[ToxicBunny]

Don't see why a private company is required to disclose this? Listed or parastatals sure.

To give the unions more "ammo" when they demand 15% increases for low level unskilled/semi-skilled workers...

This is nothing more than a bollocks requirement so people can get outraged at the pay gap between the receptionist/kitchen staff and the CEO.

 

[Kosmik]

To give the unions more "ammo" when they demand 15% increases for low level unskilled/semi-skilled workers...

This is nothing more than a bollocks requirement so people can get outraged at the pay gap between the receptionist/kitchen staff and the CEO.

Pretty sure it breaches privacy with private companies, will wind up in court.

 

[Jet-Fighter7700]

Pretty sure it breaches privacy with private companies, will wind up in court.

only to be ignored by the ANC because they can.
for reference see etolls.

 

[MrGray]

Reported to who? Government already has this data, they can simply pull the PAYE information from SARS. If they are talking about requiring this on annual financial reports then that will only make much impact on publicly listed companies as private companies are not required to publicise their financial reports.

 

[JohnStarr]

Hahahahahaha...what a crock. Don't they know they already earn more than their workers? Don't they see the irony and hypocrisy around this law?
Don't they realise a CEO earns more than a mid-level manager, much less a normal worker? Talk about a waste of paper. Rather do this than work on providing housing and jobs for people!

 

[ToxicBunny]

Pretty sure it breaches privacy with private companies, will wind up in court.

Largely it will depend on how the reporting requirements are structured and how much anonymity is involved.

Most listed companies already post the remuneration for the executives by role at least.