South African companies which are “too white” nailed

The Department of Labour has started to fine companies which are “too white” according to the Employment Equity Act (EEA).

Affirmative Action, which falls under the EEA, aims to ensure that qualified designated groups – black people, women, and people with disabilities – are equally represented in the workplace.

This law forces employers to makes sure it has the right proportion of designated people – black, coloured, Indian, female, and disabled people – at all levels of an organisation.

In August 2017, the Department of Labour announced a crackdown on companies to ensure that they comply with the act.

At the time the department said six JSE-listed companies had been found to be non-compliant and were referred for prosecution.

Rapport has now reported that the Department of Labour is prosecuting 44 companies for breaking Affirmative Action laws.

According to the report, five of these companies have paid fines, while the rest of the companies are facing fines of R1.5 million each.

Some of the companies listed as not complying with the law include Sibanye Gold, Denel, and the Tshwane Metro.

Now read: Discovery Bank’s “no whites” share plan under fire

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South African companies which are “too white” nailed