Employment Equity by Derek Hendrikz

Employment

Equity

derek

hendrikz

http://www.derekhendrikz.com/


Copyright © 2015

Derek Hendrikz Consulting

www.derekhendrikz.com






understandingthe effects of workplaceprejudice & discrimination





excluding





The evil of

discrimination is not

located in

discrimination itself,


but in the purpose of

discrimination




We are

Creatures

of

Judgement

We Project

and we

Split





Category boundaries are the

categorisations that we place

people in and the assumptions that

we attach to such categories.





• Place all assumptions regarding a specific

category on ‘ice’.

• Find similarities.

• First seek to understand before making

judgment.



Fear

Anxiety

Power

Discrimination





Sexism:Discrimination based on gender.

Racism:Discrimination based on race. The belief that

people of different races have different qualities

and abilities, and that some races are inherently

superior or inferior.

Nepotism:Favouritism shown by somebody in power to

relatives or friends, often by appointing or

promoting them to good positions.



Chauvinism:An excessive or prejudiced loyalty to a particular gender,

group, status, professional class or cause.

Heterosexism:

Discrimination against homosexual men or woman.

Ethnocentrism:A belief in or assumption of the superiority of own social or

cultural group.

Ageism:Discrimination against people of particular age groups,

often in employment or promotions.



The antidote to discriminatory

practice is a strong anti-

prejudice value system.



Understanding the

Employment Equity Act




Designated Groups:

Designated groups are…

Non-white (Africans, Coloureds and Indians),

women and

people with disabilities.


Purpose of the Act:

To achieve equity in the workplace by:

Promoting equal opportunity

Fair treatment in employment

By eliminating unfair discrimination

Implementing affirmative action measures

To redress disadvantages in employment

To ensure equitable representation


Designated Employer:

Those who employ 50 or more staff members or

whose annual turnover is more than that set

down in Schedule 4 of the Act (the figures vary

according to the type of industry).


Prohibition of Unfair Discrimination:

No person may unfairly discriminate, directly or

indirectly…

Against an employee

In any employment policy or practice



Includes:

Race, gender, sex

Pregnancy, marital status, family responsibility

Ethnic or social origin, colour

Sexual orientation, age, disability, religion

HIV status, conscience, belief, political opinion

Culture, language and birth.



Not unfair discrimination to:

Take affirmative action measures consistent with the

purpose of the act

Distinguish, exclude or prefer any person on the

basis of an inherent requirement of a job.


Duties of designated employers:

Implement affirmative action measures

Consult with employees

Conduct analysis

Prepare an employment equity plan

Report to the director general


Difference between Employment Equity,

Affirmative Action and Black Empowerment





Affirmative Action Measures:

Measures designed to ensure that

Suitably qualified people from designated groups

Have equal employment opportunities

Are equally represented in all occupational categories

and levels



Affirmative Action Measures:

Must include:

Measures to identify employment barriers

Measured designed for further diversity

Making reasonable accommodation for people

to ensure equal opportunities



Codes of Good Practice:

Further interpretation and definition of BBBEE

and the interpretation and definition of different

categories of black empowerment entities

Qualification criteria for preferential purposes

for procurement and other economic activities

Indicators to measure BBBEE




Weighting to be attached to BBBEE indicators

Guidelines for stakeholders in the relevant

sectors of the economy to draw up

transformation charters for their sector

Any other matter necessary to achieve the

objectives




The overall purpose of the codes of good practice is:

To provide certainty with respect to BBBEE recognition and

measurement

To ensure that BBBEE initiatives may be implemented in such a

way that economic substance takes precedence over form

That there exists just comparability between the BBBEE statuses of

different entities

That competition with respect to BBBEE contribution levels takes

place



Achieving Employment Equity:

Employers must draw up an employment equity

plan,

setting out the steps they intend taking to

achieve employment equity, over the next one

to five years.



Achieving Employment Equity:

they need to analyse their workforce profile as

well as their employment practices and policies.

they must consult with unions and employees to

get consensus around it.

Employers need to report their equity plans

regularly to the Department of Labour, which

then monitors implementation.



Employment Equity Plan:

Objectives to be achieved for each year of

the plan

Affirmative action measures

Numerical goals to achieve equitable

representation




Timetable for each year of the plan

Duration of the plan

Procedures to be used to monitor

implementation of the plan




Internal procedures to resolve disputes

Persons in the workforce, including senior

managers, responsible for implementing

and monitoring the plan



Monitoring:

Employees or trade union representative may bring and alleged contravention to the attention of:

Another employee

An employer

A trade union

A workplace forum

Labor inspector

The director general

The commission



Powers of the labor inspector:

Has the authority to enter

Question

Inspect



Undertaking to comply:

Must be a written undertaking from the designated employer



Compliance Order:

Is issued when the employer has:

Refused to give a written undertaking

Failed to comply with a written undertaking



Powers of the Labor Court:

May make appropriate orders including:

To make a compliance order an order of the labor court

Condone the late filing of any document

Direct the CCMA to conduct investigations



Powers of the Labor Court:

Award compensation

Award damages

Order compliance

Impose a fine

Review performance

Confirm, appeal or vary orders made by director general

Deal with any matter



Protection of employee rights:

No person may discriminate

No person may favour or promise to favour



Liability of employers:

Must immediately bring problems under the attention

of the employee

Must consult with employees

If employer fails to take steps, he/she is deemed to

contravening the provision

Is not liable for the conduct of an employee



Affirmative Action

Affirmative action is a temporary intervention

aimed at rectifying the historical injustices

in terms of occupational advancement and social,

political and economic upliftment



Affirmative Action

A business strategy

aimed at transforming the social and economic

environment

short-term, occupational advancement strategies

based on preferences in hiring and promoting

people from

previously disadvantaged groups



Affirmative Action

The objective is for people from

previously disadvantaged groups to obtain access

to job opportunities

based on their potential to be able to do the job.



Affirmative Action

Enforced through legislation

Affirmative action is not seen as a permanent

tool, but as a

Remedial, short-term strategy to encourage the

upward occupational

Mobility of people from previously

disadvantaged groups.



Black Empowerment:

Refers to interventions and strategies

based on the belief that there is nothing more

unequal than the equal treatment of unequal's

assumption is that black people do not have the

resources to succeed in business



Black Empowerment:

Could include programmes such as

literacy training

quality education

accelerated on-the-job training

mentorship and other related programmes



Black Empowerment:

Black advancement includes an improved quality of

life, that is,

a good salary, decent housing, educational

assistance

community development and direct intervention

by companies regarding political issues that

affect their employees' lives



BBBEE:

A form of Economic Empowerment

initiated by the South African government

in response to criticism against Narrow Based

Empowerment instituted in the country during

2003/2004



BBBEE:

Narrow Based Black Economic Empowerment

led to the enrichment of a few black individuals

the goal of Broad Based Empowerment is to

distribute wealth across as broad a spectrum of

South African society as possible



Employment Equity and Diversity:

The aim of the Employment Equity Act is to

achieve

equity in the workplace through the elimination

of unfair discrimination, as

well as through the implementation of

affirmative action strategies




employment equity also refers to the

transformation of the workplace to the point

where disparities between

diverse employees are eliminated and all

employees have been brought to a level where

they can compete for job opportunities on an

equal basis




Employment Equity Act distinguishes between

unfair discrimination and fair discrimination

Fair discrimination allows for targeted

affirmative action strategies and actions to

redress the disadvantages

that designated groups in the workforce

experienced in the past




To achieve this, the organisational environment

should be receptive to all new entrants at all

levels in the organisation

Unfair discrimination is regarded as

discrimination in employment

practices on the basis of a person's affiliation to a

variety of groupings,

including those relating to race, age and gender




Every employer in South Africa is required to

draw up and maintain an employment equity

plan which includes

an analysis of current employment practices to

eliminate possible discriminatory practices

setting objectives and establishing a timetable

with realistic human resource targets to ensure a

representative workforce



Direct vs. Indirect Empowerment

Direct empowerment focuses only on

ownership and management.

Indirect empowerment is broader and aimed at

distributing wealth across a broad spectrum of

South African society .



BBBEE Point System:

Direct Empowerment:

1. Equity ownership: 20%

2. Management: 10%

HR Empowerment:

3. Employment Equity: 15%

4. Skills Development: 15%

Indirect Empowerment:

3. Preferential Procurement: 20%

4. Enterprise Development: 15%

5. Corporate Social Investment: 5%




BEE

CONTRIBUTION

LEVEL

SCORECARD

POINTS

PROCUREMENT

RECOGNITION

1 100 or above 135%

2 85 to 99.99 125%

3 75 to 84.99 110%

4 65 to 74.99 100%

5 55 to 64.99 80%

6 45 to 54.99 60%

7 40 to 44.99 50%

8 30 to 39.99 10%

Non Compliant < 30 0%


Thresholds


• EME increased from R5 million to R10 million

• QSE: R5 million -R35 million to R10 million - R50

million

• Large entities: R50 million and above


BEE vs. BBBEE

Narrow Based Black Economic Empowerment (BEE) led to the enrichment of a few black (Black African, Coloured or Indian) individuals, the goal of Broad Based Empowerment (BBBEE) is to distribute wealth across as broad a spectrum of South African society as possible.

Broad Based Black Economic Empowerment (BBBEE) is a form of Black Economic Empowerment initiated by the South African government in response to criticism against Narrow Based Empowerment instituted in the country during 2003/2004.



BBBEE Codes of Good Practice

Supplements the BBBEE strategy by providing

clear guidelines on the measurement and

application of BBBEE



BBBEE Verification Agencies

The Association of BEE Verification Agencies

(ABVA) is an independent national Membership

Organisation established to lead the black

economic empowerment (B-BBEE) verification

industry as it takes up a vital role in the

transformation of the South African economy.







EE Committees can be formed by…

Nominating members;

Democratic elections (per occupational level);

and

Voluntary nominations.



As far as possible, committees must

represent all occupational levels…

Top management;

Senior management;

Middle management;

Professionally qualified and experienced specialists;

Skilled technical and academically qualified workers,

junior management, supervisors, foremen and

superintendents;

Semi-skilled and discretionary decision-making; and

Unskilled and defined decision-making.



COMPOSITION AND

STRUCTURE OF THE EEC

The Chairperson (Senior Manager)

Employer representatives

The trade union representatives or, employeenominated representatives

Representatives from designated groups

Representatives from undesignated groups



Size of EE Committee…

Depends on size and structure of your

organisation;

Rule of thumb – between 5 and 12 members



Critical Success factors for a EEC

Role Clarity

Customised Constitution

Effective Chairperson

Involvement of senior executive

Committee members who can drive the cause

Effective communication methodology

EE Committee development programme



CONSTITUTION OF THE EEC

Establishment (Right of Existence)

Vision

Objectives

Composition and Structure (Governance)

Roles and Responsibilities

Ground Rules and Conduct at EEC meetings

Information closure

Dispute Resolution

Amendments to the EEC Constitution

General Provisions



Primary duties of a EEC

Analysis as dictated by the EE Act

Enable processes which ensures that employees can

compete equally for opportunities in the workplace

Ensure skills development

Ensure participation and acceptance of AA measures

Implement a mentorship process for disadvantaged

employees

Monitor implementation of EE initiatives



THE FUNCTIONS OF EEC

To develop and ensure implementation of an Employment Equity andAffirmative Action Policy

Undertake a statistical profile analysis of the organization

Review/audit all Employment Policies, Practices and Procedures

Develop an Employment Equity Plan

To review and monitor departmental targets established for EmploymentEquity purposes

Monitor the applicability of the Employment Equity Policy

Monitor recruitment and placement decisions

Monitor the training of the Committee



Identifying Organizational

Non Compliance to EE





Codes of Good Practice

Minister may, on advice of the commission:

Issue any code of good practice

Change or replace any code of good practice

Any code of good practice, or change or

replacement must be published in the Gazette



Job Analysis and Descriptions -

A designated Employer must:

Collect information and conduct analysis of employment

policies, practices, procedures and work environment

This will identify employment barriers which adversely affect

people

Analysis must include a profile of the workforce within each

occupational category and level

This will determine the degree of underrepresentation of people



Recruitment and Selection:

An employer may not require an employee or a

person seeking employment-

not to be a member of a trade union or

workplace forum;

not to become a member of a trade union or

workplace, forum; or

to give up membership of a trade union or

workplace forum;



Psychological Assessments:

This is prohibited unless the test or assessment

being used:

Has been scientifically shown to be valid and

reliable

Can be applied fairly to employees

Is not biased against any employee or group



Remuneration:

Every designated employer must submit a

statement on remuneration and benefits received

in each occupational category and level

Disproportionate income differentials

Take measures to reduce differentials



Termination of Employment:

A contract of employment may be terminated on notice

of not less than

one week, if the employee has been employed for six

months or less

two weeks, if the employee has been employed for

more than six months but not more than one year

four weeks, if the employee has been employed for one

year or more, or if a farm worker or domestic worker

has been employed for more than six months



Termination of Employment (cont):

A collective agreement may shorten the four weeks

notice period to not less than two weeks.

Notice must be given in writing except when it is given

by an illiterate employee

The notice on termination of employment by an

employer in terms of the Act does not prevent the

employee challenging the fairness or lawfulness of the

dismissal in terms of the Labour Relations Act, 1995 or

any other law



Developing the EE Plan





EE Plan – Legal Requirements:

Objectives to be achieved

Affirmative action measures to be implemented

Timetable for each year of the plan

Duration of the plan



EE Plan – Legal Requirements (2):

Procedures to be used to monitor

implementation of the plan

Internal procedures to resolve disputes

Persons in the workforce, including senior

managers, responsible for implementing and

monitoring the plan



Questions before starting with the

implementation Plan: What would you like to achieve regarding employment

equity?

How will implementing this benefit you?

What are the obstacles to achieving your goal?

Do you and your team have the authority to implement this learning? Is it within your power?

What stops you in your personal capacity, from achieving your goal?

What resources do you have in achieving this goal?

Is there a price to pay if you succeed in achieving this? If yes, define.

If there is a price to pay are you prepared to apply it?

How will you know if you were successful?



SMART Objectives:

Specific,

Measurable,

Achievable,

Relevant, and

Time measured.



PHASES OF THE PLAN

Step 1

Assign responsibility

Step 2

Communication, awareness

and training

Step 3

Consultation

Step 4

Analysis

Preparation

Step 5

Affirmative Action

measures and objectives

Step 6

Time frames established

Step 7

Allocation of resources

Step 8

Plan communication

Implementation

Step 9

Monitor, evaluate, and

review

Step 10

Report

Monitoring



Phase 1:

Preparation



STEP 1: Assigning responsibility

• EE Managers should:– Be permanent employees

– Report directly to the CEO

– Have key employment equity outcomes

• EE Managers need:

– The necessary authority or mandate

– An appropriate budget

– Time off from other duties and commitments

– Access to required resources

Phase 1: Preparation



STEP 2: Communication,

awareness and training

Positive outcomes such as:

– Diversity = Creativity

– Representing the customers who we serve

– Better utilisation of human resources

– A more diverse and productive workforce

– A workforce that reflects the relevant labour

market






Delivery methods could include:

– pamphlets

– newsletters

– workshops

– videos

– training sessions






Managers should:

– be informed of their obligations in terms of the

Act

– be offered training in diversity management and

related skills

– understand that discrimination can be direct,

indirect, or as a result of inaction or

victimisation




STEP 3: Consultation

• Start process as early as possible

– A consultative forum should be established or

an existing forum used if this is appropriate

• Who should be included?

– All stakeholders such as:

– Representative trade unions

– Management

– Shareholders

– Employees





• Proper consultation includes:

– the opportunity to meet and report back to

employees and management

– reasonable opportunity for employee

representatives to meet with the employer

– the request, receipt and consideration of

relevant information

– adequate time allowed for each of the above

steps.





• Relevant information include:– the particular business environment and circumstances

of the employer

– the relevant economic sector or industry

– relevant local, regional, and national demographic

information about the economically active population

– the anticipated growth or reduction of the employer's

workforce

– the turnover of employees in the employer's workforce





• Relevant information include:– the internal and external availability for appointment or

promotion of suitably qualified people from the

designated groups

– the degree of representation of designated employees in

each occupational category and level in the employer's

workforce

– employment policies and practices of the employer.




STEP 4: Analysis

Firstly, to assess all employment policies,

practices, procedures, and the working

environment in order to identify barriers that

may– contribute to the under-representation or under-

utilisation of employees from the designated groups

– contribute to the lack of affirmation of diversity in the

workplace

– adversely affect designated groups

– to identify practices or factors that positively promote

employment equity and diversity in the workplace.




STEP 4: Analysis

What should be reviewed?– all employment practices such as recruitment, selection,

pre-employment testing, and induction

– practices related to succession and experience planning,

and related promotions and transfers

– utilisation and job assignments

– current training and development methodologies and

strategies, and access to training

– remuneration structures and practices




STEP 4: Analysis

What should be reviewed?– employee benefits arrangements

– disciplinary practices

– the number and nature of dismissals, voluntary

terminations and retrenchments

– corporate culture

– practices relating to the management of HIV/AIDS in

the workplace which could be discriminatory

– any other practices or conditions that are tabled by the

consultative forum.




STEP 4: Analysis

What to look for?

– Factors that adversely affect employees from

designated groups

– Subtle or indirect forms of discrimination and

stereotyping

– All practices should be checked to see if they

are fair and do not result in unfair

discrimination.




STEP 4: Analysis

Secondly, to determine the extent of under-

representation of employees from the

designated groups in the different

occupational categories and levels of the

employer's workforce.




101

STEP 4: Analysis

How do you establish a workforce profile?

– By comparing the number of employees from

designated groups with relevant demographics.

– Sources of demographics information:

• Form EEA 8 of the Regulations

• Statistics South Africa

• HSRC

• Breakwater Monitor




STEP 4: Analysis

An employer can compare his workforce

profile:

– with those of organisations of a similar size

– with those of organisations within the same

sector or industry

– with those of organisations which are

structurally similar and whose activities are

spread over a similar geographic area




Phase 2: Implementation



STEP 5: Affirmative Action


How to go about setting goals and objectives?

– a snapshot of their organisation profile and

valuable information on their organisation's

profile in respect of race, gender and disability

– an understanding of which practices or working

conditions adversely affect members of

designated groups

– which practices and working conditions are

conducive to diversity






How to go about setting goals and objectives?– internal statistics regarding the rate of labour turnover

at the various levels

– internal statistics regarding movements such as

promotions and transfers at the various levels

– information regarding the profile of the economically

active population in their region

– comparisons between the organisation's workforce

profile and those of similar organisations.






– AA measures are those measures that need to

be taken to address the employment policies,

practices, and working conditions that were

identified in Step 4 as having an adverse effect

on the employment and advancement of

members of designated groups.

– For each specific practice identified, an

affirmative action measure or measures need to

be formulated and developed.




STEP 6: Time frames

• The duration of a plan should be between one and

five years. Employers should decide on the

duration of their plans given their particular

circumstances and the timeframe in which they

can make meaningful progress.

• The time frame should set out more than the

duration of the plan. It should specify milestones

and the target dates set for reaching these.




STEP 7: Resources

• Budgets should be appropriately allocated in order

to implement the agreed components of the plan.

• People such as the manager(s) assigned with

responsibility.

• Time off for stakeholders involved in the process.

• Infrastructure such as a project office or meeting

room.

• Training and information sharing

• Any other resources that may be appropriate in

the circumstances.




STEP 8: Communicate the plan

Communication should inform stakeholders:

– Who is responsible for the implementation of

the plan

– Where information regarding the plan can be

obtained

– Objectives and duration of the plan

– Dispute resolution procedures

– Roles and responsibilities






Date post:	21-Jul-2015
Category:	Recruiting & HR
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Employment Equity by Derek Hendrikz

Recruiting & HR