Employment equity forum

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01June 2011 © 2011, BEE Institute, All Rights Reserved

EMPLOYMENT EQUITY FOR

BLACK ECONOMIC EMPOWERMENT

1

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UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

Trends in Overall Management

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Trends in Top Management

12.7%

22.2%

2.4%

9.5%

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Trends in Senior Management

18.5%

26.9%

4.3%

8%

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Trends in Middle Management

44.1%

36.5%

24.9%

13.8%

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Trends in Skilled Employee Levels

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To adopt and implement EE Strategies that will significantly increase Black representation at

all levels and at the same time lead

to Sustainable BEE TM

Employment Equity Challenge

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High visibility BEE initiative

Skills (intellectual and technical) in

short supply

Initiatives in terns of the EE Act and

the BEE Act, must be the same

Employment Equity Challenge

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Employment Equity and Skills Development

=

22% of Scorecard

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Allocation of Points

2pts -

5 pts -

15 pts -

Executive Directors (Management Control)

Top Management (Management Control)

Employment Equity

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BEE Employment Equity

Takes into account management levels only (for generic companies)– Top, Senior, middle and junior management as per the EE Act– Excludes semi-skilled and unskilled occupational levels– Takes into account black people with disabilities– Application of the ARG– 5 and 10 year target

EAP (Economically Active Population) targets met = 3 bonus points

If 40% of each target is not met, companies score NO points for each line of the scorecard– Senior Management target = 43%– 40% of 43% is 17.2%– Must achieve > 17.2% using the ARG

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ARG

Adjusted Recognition for Gender:

Black % Black Women

%2+

Where the Black Women % is limited to half of the target

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ARG

Adjusted Recognition for Gender– Say 2 out of 10 people in Other Top Management

are black men:

– Say 2 out of 10 people in Other Top Management are black women:

20% (black) 0% (black

women)2+ 10%=

20% (black) 20% (black

women)2+ 30%=

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Management Control

Generic Scorecard

Indicator Weight(Points)

Target

Black board member voting rights*

3 50%

Black Executive Directors* 2 50%

Black senior top management* 3 40%

Black other top management* 2 40%

TOTAL 10

Bonus point: Black independent non-executive board members

1 40%

* Using adjusted recognition for gender

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Employment Equity

Generic ScorecardIndicator Weight

(Points)

Sub-min

Target

% Yr 0-5

Yr 6-10

Black people with disabilities*

2 0.8 2% 3%

Black Senior Management*

5 17.2 43% 60%

Black Middle Management*

4 25.2 63% 75%

Black Junior Management*

4 27.2 68% 80%

TOTAL 15

Bonus points for meeting or exceeding the EAP targets in each category above.

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Employment Equity

QSE ScorecardIndicator Weight

(Points)Target

Yr 0-5 Yr 6-10

Black representation in all Management*

15 40% 60%

Black employees as a percentage of all employees*

10 60% 70%

TOTAL 25

Bonus points for meeting or exceeding the EAP targets in each category above.


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Classification of Staff

Semantic Scale Paterson Peromnes Hay

Top Management F F 1++1+

Senior Management E E UPPERE LOWER

123

12

Professionally qualified, experienced specialists and mid-management

D D UPPERD LOWER

456

34

Skilled technical and academically qualified workers, junior management, supervisors, foremen, superintendents

C C UPPERC LOWER

789101112

56

6A78

Semi-skilled and discretionary decision-making

B B UPPERB LOWER

13141516

91011

Unskilled and defined decision-making A A 171819

1213

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Classification of Disability

People with disabilities are persons who have a long-term or recurring physical or mental impairment which substantially limits their employability or advancement in the workplace. Mental impairment is defined as a clinically recognised condition or illness that affects a person’s thought process.

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Physical Impairment means total or partial loss of a bodily function or part of the body. It includes sensory impairments

Mental Impairment means a clinically

recognised condition that affects a persons thought process, judgement or emotions.

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Long-term means the impairment must be for greater than 12 months

Recurring impairment is one that is likely to happen again and to be substantially limiting

Substantially limiting occurs when the impairment substantially limits the person’s ability to perform the essential functions of the job. An assessment to determine whether the impairment is substantially limiting , must consider if medical treatment or devices would control or correct the impairment.

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Labour Brokers Staff

Temp staff that are assigned for more than 3 months = employees = Measured for Employment Equity

(EE Act)

Temp staff less than 3 months are employees of the Labour Broker = Procurement

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Employment EquityProving race

As it is not possible to confirm a person’s racial classification, it is recommended that organisations get their staff to complete the EEA1 report, wherein the staff member would declare which race group they fall into.

The same would apply for disability, as the relevant staff member would need to declare their disability and then submit sufficient proof thereof.

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EE - Key Measurement Principles

EEA2 data filed with Department of Labour to be used No points for a particular sub-element unless sub-minimum of 40%

of target achieved If structure does not distinguish between Middle and Junior

Management Can use Junior Management Senior Management changes to 8pts Junior Management changes to 6pts

Bonus points are available to those organisations that meet or exceed the targets for the Economically Active Population (EAP) in their region. The bonus points are allocated 1 for each of the management levels on attaining the EAP target. The target is not subject to applying the adjusted recognition for gender.

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Employment EquityEvidence Requirements

Document Required What does it prove?

Employment Equity Report Breakdown of occupational levels by gender and population

group

Certificate of Disability That a person is certified as disabled in terms of Section 54 of

the Employment Equity Act

Payslips The remuneration of an employee

Letters of appointment /

employment contracts/ Job

descriptions

The role and responsibility of the employee within the

organisation

Reporting organogram The reporting lines and responsibilities of employees

Copies of ID books and personal

details

South African citizenship

The population group and gender of an employee

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