More black management is the new black

FOR years Government has maintained that its definition of ‘black people’ relating to the country’s Black Economic Empowerment (BEE) codes included all previously disadvantaged races.

But a new law has been passed that changes all this.

The revised BEE codes, gazetted in May, will impose demographic quotas for company management right across the ‘racial’ board.

Under the new Employment Equity Act, targets for black representation remains similar than before – 50%, 60% and 75% respectively for top, senior and middle management levels.

But these equations no longer include Indian and Coloured persons, who have been placed under race sub-groups.

East Coast BEE Consultant Kevin Rodgers on Thursday explained the change to Richards Bay business people at the Zululand Chamber of Business Foundation’s (ZCBF) Pelican Hall.

‘The Economically Active Population (EAP) is 74.1% Black, 11.1% Coloured, 2.9% Indian and 11.9% White.

‘Management roles are expected to be split in proportion to these EAP statistics.

‘Previously, Indian employees could exceed 3% representation, but if your company management is majority Indian, you will now be marked down on your BEE score sheet.’

A company stands to secure up to two points if 60% of its senior management is black, two points if 75% of its middle management is black and two points if 2% of its employees are Black disabled staff members.

But no points are given for semi-skilled workers or disabled staff members of other races.

Contradicts Constitution

According to the South African Institute of Race Relations’ (SAIRR) Head of Policy Research, Anthea Jeffery, the formulae requiring firms to put their employees down in race groups, such as IM (Indian Males) and CM (Coloured Males), contradicts the Constitution’s commitment to non-racialism.

‘In implicitly requiring racial classification and the differential treatment of race groups, they also contradict the Constitution’s prohibition of racial discrimination.

‘The BEE codes should drop any reference to ‘race groups’, while BEE should be replaced by a non-racial system of ‘economic empowerment for the disadvantaged’ or ‘EED’.

‘This would focus on helping the poor, rather than a relative elite.’

Jeffery added it would more likely achieve economic growth, excellent education, more employment, and the ‘fostering of genuine entrepreneurship in place of crony capitalism’.