MINISTER OF LABOUR ADMITS: Employment Equity Stifles Business Growth.

MINISTER OF LABOUR ADMITS:

Employment Equity Stifles Business Growth

by Gerhard Papenfus

The Minister of Employment and Labour, in a recent media statement, praised the exemption of small employers (49 or less employees) from expensive and time-consuming employment equity compliance.

In this same statement, the Minister blatantly admitted that employment equity is detrimental to employment creation and business growth. If this is the case for so-called “small employers”, with 49 and less employees, then surely the same applies to employers employing 50 employees, or 60, or 100, or more. The cost, time and effort of compliance naturally multiplies as the employee count increases.

South Africa simply cannot afford this intensified attempt by Government to force employers to employ on a racially-orientated spreadsheet model. Employers will never be able to do that. To even attempt that, will amount to business suicide.

Any sensible business will continue, as has always been the case, to employ purely on the basis of merit. Period.

Gerhard Papenfus is the Chief Executive of the National Employers' Association of South Africa (NEASA).

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