Strict race-based quotas may harm South Africa’s economy by restricting business growth and worsening the existing skills shortage.
If bad political timing were an entity, then the department of employment and labour would be it, following its release yesterday of a set of new race-based employment rules which have harsh consequences for a failure to comply.
No doubt, these new regulations will already be sitting on the desk of people in the Donald Trump administration – if not before the US President himself – as “proof” that white people are being discriminated against unfairly in our country.
And, let’s face it: to an outsider – and to many whites in this country – those regulations are obviously social engineering by skin colour.
It is stipulated that companies implement a structure where there is a “designated group” – women and non-whites – composition of over 90% in 15 of the 18 sectors. Of the 18 sectors, 11 have a designated group target of over 95% for the skilled technical bracket.
The National Employers’ Association of South Africa and Sakeliga have said they will take the government to court because the rules are “unconstitutional, unlawful and harmful”.
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Of particular concern to those two employer organisations is that the state aims to enforce compliance on pain of fines of 10% of turnover.
This is, they argue, a restriction on the right of businesses to trade freely.
That these quotas are necessary is an indication that the racial transformation of the workplace has not been fast enough for the ANC – which drew up the new rules – or for its constituency.
There should be no argument that transformation – and redress of the unfairness of the apartheid era – is necessary if this country is not to explode.
However, at a time when there is a skills shortage and when businesses are battling to survive, this is going to hurt the economy.
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And give even more ammunition to our critics.
