Dailymaverick logo

Maverick News

AFFIRMATIVE ACTION

Quotas vs transformation — DA’s legal attack on employment equity law splits the GNU

After Helen Zille called the law ‘totalitarian’ and damaging to minorities in provinces like KZN and the Western Cape, the ANC hit back, reigniting a fundamental dispute over how transformation should occur in South Africa.
Quotas vs transformation — DA’s legal attack on employment equity law splits the GNU Illustrative image | DA supporters march to Parliament to protest against the Employment Equity Act draft regulations. (Photo: Brenton Geach / Gallo Images) | DA chairperson Helen Zille. (Photo: Fani Mahuntsi / Gallo Images) | Labour Minister Nomakhosazana Meth. (Photo: Lulama Zenzile / Gallo Images / Die Burger)

The DA takes Labour Minister Nomakhosazana Meth to the Gauteng Division of the High Court on Tuesday, 6 May to challenge an amendment to the Employment Equity Amendment Act (affirmative action) which it says borders on the “totalitarian”.

DA Federal Executive chairperson Helen Zille said the amendment introduces race quotas rather than targets, and runs foul of the fairness prescripts of the redress laws and the Constitution. This was said on the eve of the party’s clash with the ANC minister, a fellow member of the Government of National Unity (GNU).

“[The amendment] sets absolute barriers [to work, for people] for the circumstances of their birth,” said Zille in a briefing on the court action. “It’s the very opposite of redress and transformation.”

The DA will argue that the draft law should have “tagged” or alerted parliamentarians to its impact on provinces by invoking section 76 of the Constitution. Section 76 governs how Bills affecting provinces must be passed, and its focus is to ensure that provincial interests are considered.

“It’s unconstitutional because it is manifestly unfair to, for example, Indians in KwaZulu-Natal or coloured people in the Western Cape,” said Zille. Labour Court judgments have found that the incorrect application of employment equity laws has excluded people from so-called minority groups.

“You can’t have national targets applied provincially,” said Zille. “These are totalitarian powers without a place in a democracy.”

DA supporters in Cape Town gather in protest against the Employment Equity Amendment Act and the government’s newly drafted race-based water licensing rights regulations on 26 July,2023. (Photo: Ziyanda Duba)
DA supporters in Cape Town gather in protest against the Employment Equity Amendment Act and the government’s newly drafted race-based water licensing rights regulations on 26 July 2023. (Photo: Ziyanda Duba)
 More than 1,000 DA supporters march to Parliament to  protest against the Employment Equity Act Draft Regulations on 26 July 2023. (Photo: Brenton Geach / Gallo Images)
More than 1,000 DA supporters march to Parliament to protest against the Employment Equity Act Draft Regulations on 26 July 2023. (Photo: Brenton Geach / Gallo Images)

Toughening up employment equity laws

The amendment law aims to toughen up affirmative action measures by allowing Meth to determine “sectoral numerical targets” — specific racial percentages for specified economic sectors.

Here’s what it says: “The Minister may, after consulting the relevant sectors and with the advice of the [Employment Equity] Commission, for the purpose of ensuring the equitable representation of suitably qualified people from designated groups at all occupational levels in the workforce, by notice in the Gazette set numerical targets for any national economic sector identified.”

Annual Employment Equity Commission reports show that executive and senior levels of staff at companies across the economy don’t represent South Africa’s population and remain dominated by white people, especially men.

Under the cosh, businesses have baulked at the amendment because it introduces yet another layer of bureaucratic compliance work for companies already creaking under the weight of the regulatory state. The Labour Department excluded companies employing fewer than 50 people after it faced a wall of opposition from small business owners who said they couldn’t cope with the cost of complying with all of South Africa’s red tape.

However, DA labour spokesperson Michael Bagraim said this wasn’t sufficient to stop the amended law’s deleterious impacts on the economy, which is forecast to grow at just over 1% this year and continues to experience job shedding.

Bagraim, an experienced labour lawyer, said small business owners would keep their employee numbers below 50 to avoid the new laws, which also give Meth the power to impose a fine of 10% of turnover for not meeting the target. The draft law allows 30 days for comment before the labour minister can gazette and implement a numerical sectoral target.

The final nail in the GNU coffin?

In four policy-related cases in a season of high lawfare, the DA is in court against the ANC, its senior partner in the GNU. President Cyril Ramaphosa, the ANC chief whip, Mdumiseni Ntuli, and the party’s caucus are incensed at the DA over this latest case against the Employment Equity Amendment Law.

It was reported at the weekend that a caucus majority wants the ANC to divorce the DA. “We are not in the GNU to please the ANC or anyone else,” said Zille. She said the party would be where it could make the most significant impact (meaning either in government or opposition).

On the VAT victory, the Expropriation Act (against which the DA is also in court against the government) and Bela (the education law, which almost caused a political war between the parties), she said it was better to be inside than outside.

“The only people we are trying to please are our current and future voters,” said Zille, adding that DA structures and procedures could, in time, decide the party would be better served outside the GNU.

Writer's Comment: A different perspective

Employment equity has been the most successful part of the network of South Africa’s black economic empowerment (BEE) laws.

Without this law, which has its roots in the Constitution’s redress and transformational clauses, South Africa would not have its now sizeable black middle class. This class has fuelled growth, shifted the country’s culture and ensured remittances to the black communities left behind by derisory statecraft.

Depending on which definitions you use or surveys you consult, SA now has a broad black middle class of around 8.9 million people. It’s insufficient and should be more prominent to provide further hope for the future, but without the laws, the economy would not have changed in this essential and positive way.

This social shift has fuelled growth and employment as those of us who were newly middle class bought homes, kitted them out, made different lives than our forebears and cared for those left behind by the policies of the apartheid state, which linger well into the years of freedom. The net positive is clear to see.

Then came State Capture and its lost decade, and South Africa tracked backwards, ending the growth years and taking a hammer to employment.

The reasons workplaces would not have changed without the leverage of employment equity law and regulation span from unconscious bias to inherited network privilege to the lingering nature of racial bias and racism that are still prevalent, let’s be frank.

The DA case will come across as an attack on employment equity in general, but it is being fought on a clever tactical basis. It considers the provincial impacts and fights the employment equity amendments on the grounds that they violate section 76 of the Constitution.

The case will be an interesting ventilation of questions of transformation, provincial power versus national, progress, and how far (or not) we have walked on the long road to freedom.

It may also sound the death knell for the GNU, as it will expose diametrically opposed differences in the how of transformation between the ANC and DA.

Zille disputes any notion of the success of employment equity — though she was an adherent in earlier days when working at UCT and as a younger politician. Now more critical, she said, “What’s created a black middle class is state transformation (through black employment by the state). What we’ve built is a middle class through state preference, but it has not led to a [more] capable state. Don’t for one minute think State Capture is different.”

Zille said cadre deployment, the ANC system of placing supporters in key positions in the state, was legitimised using employment equity laws. DM

This article was updated at 07:52 on 6 May 2025 to reflect the size of the black middle class as 8.9 million, rather than 20 million as initially reported, a figure based on lower household income. 

ChatGPT was used in research for parts of this article and checked against sources.

Comments

Daniel Cohen May 6, 2025, 06:02 AM

Haffajee claims that the Black middle class is the result of EE. It is just as likely to be the result of inflating the Civil Service, encouraging apartheid era government employees to take early retirement. Ad economic growth pte state capture.Anyway, how does she define Middle Class and where does the up to 20 million statistic come from?

Andrew Blaine May 6, 2025, 07:21 AM

I agree, but cannot understand how BBBEE encouraged growth at anytime. During early years until Zuma, the black middle class was a result of selective government employment combined with an inflated pay packet. However the nature of delivery and quality of service has been steadily negative.

William Harmsen May 6, 2025, 07:59 AM

ANC's war against economic growth and job creation in pursuit of jobs for pal's.

Hidden Name May 6, 2025, 07:30 AM

Her imagination, would be my guess. As always, Ferial is ferocious in trying to malign and misrepresent the actions of the DA. It's really quite tiresome.

kanu sukha May 6, 2025, 06:27 PM

What is "quite tiresome" is the DM policy of allowing people to use 'pseudonyms' to vent their spleen.

megapode May 6, 2025, 10:02 AM

I have worked in the corporate sector for a few decades now. Not for Government nor for anybody seeking that business. And I work alongside young black people who might be called middle class. They would not have those chances when I started working in the 70s. So I think BEE has worked, but not for enough people.

D'Esprit Dan May 6, 2025, 01:53 PM

BEE is simply one element of ANC policy, that collectively has been an abject failure: I honestly believe in the need for redress, but think it would have better achieved putting the BEE shares into ringfenced funds for workers in corporate SA, not making the ANC elite instant billionaires (hello, Cyril!). If our economy had grown at 5% a year (easy with good policy and reasonable governance) we wouldn't have 40% unemployment and the ANC determined that R370 is better than an entry-level job.

megapode May 6, 2025, 05:08 PM

My point is that the idea itself is not wrong and it CAN work. I've seen it. So we do we throw it out together or do we tweak it?

D'Esprit Dan May 7, 2025, 08:25 AM

Major overhaul - not tweak. I agree, that correctly applied, it can make a difference. However, BEE in the context of an economy that is, at best, in neutral, if not reverse gear, is just another form of rearranging the deckchairs on the Titanic. We need a national conversation about how to overhaul our economic policies in totality to unlock growth and job creation, not just more and more onerous box-ticking and social engineering.

Hari Seldon May 6, 2025, 10:48 AM

I find Ferial's opinions biased and not supported by facts - largely assertions and opinions biased away from the DA. The reality is BEE still relies on classifying people according to their skin colour. This was arguably necessary for redress for the first 20 odd years following apartheid as that's what the NP did to discriminate. But I argue we should move to socioeconomic classification - postal code, education etc and NOT skin colour.

kanu sukha May 6, 2025, 06:35 PM

If you suggest that there is something like 'neutrality' and no 'bias' .. you may be in for a surprise ... it does not exist ! All human activity stems from some form of 'bias' towards or away from 'values'.

Hari Seldon May 6, 2025, 10:52 AM

If the ANC gov had spent just 25% of the money stolen over the last 30 years on quality education, free skills training and industrial development, I predict it would have had a far more beneficial impact on creating jobs and a black middle class than BEE.

Louise Wilkins May 6, 2025, 06:19 AM

The headline is rather ambiguous. It makes it sound like the GNU has split. It comes across as if the author wants it to happen.

Martin Neethling May 6, 2025, 07:46 AM

Is is possible to draw this conclusion..

Fred Lightly Said May 6, 2025, 07:54 AM

Spot on. The author's bias is very evident - anti GNU, anti DA.

Dhasagan Pillay May 6, 2025, 09:58 AM

I disagree completely. There is no bias, but a different viewpoint. The need for transformation is a non-negotiable. The idea that White folks must be treated as a class above, because their grandfathers and their grandmothers were bloodthirsty, rapacious and malicious is not on. Draconian laws don't help. execs and officials just and up not hiring or hiring badly and rampant nepotism to cover quotas - both of which have gotten us into our current economic malaise.

Karl Sittlinger May 6, 2025, 10:27 AM

Bias can be communicated in many ways, the favorite way DM uses is to omit information completely, or heavily downplay it if it doesn't fit into the narrative the author is trying to push. We all do it to an extent, but I do expect journalists to give a full view of topic, and that would have had to include a much more balanced analysis of how BEE has failed us, the money wasted, 25% BEE tenderpreneurs skim merely for knowing the right people and having the right skin color.

Kel Varnsen May 6, 2025, 11:02 AM

Do you seriously think that all white people's grandparents were 'bloodthirsty, rapacious and malicious'? Please show me how white people are treated as a class above. My children have to do far better than their colleagues of colour to get into tertiary education, get a job, etc. We don't all belong to a secret white people's club that automatically gives us privileges.

Hidden Name May 6, 2025, 01:29 PM

The irony of course is that many "previously disadvantged" kids get preferential treatment compared to their white classmates (you read that right - same school, same education). These laws are ridiculous. Redress comes from helping the people who are struggling, not some damned skin colour based demographic. Whole idea is idiocy on the foot and massively damaging to everyone.

D'Esprit Dan May 6, 2025, 01:59 PM

Our economic malaise is 100% a result of ANC policy, cadre deployment (political BEE), corruption, maladministration and the use of state resources to keep feeding the ANC Ponzi scheme. The need for redress is non-negotiable; BEE and AA were noble in their intention - but they have proven to be apocalyptic in execution, enriching an elite at the expense of the majority of South Africans. Time to move on from a failed experiment. If anything, use a needs-based system, not a skin based one.

Martin Neethling May 6, 2025, 02:23 PM

Not ‘a class above’, but the same. As for ‘transformation is a non-negotiable’, I’d suggest that the whole idea needs a rethink because the version that has been sold to SA has done little to take us forward and in the process done the world of harm.

megapode May 6, 2025, 10:09 AM

I think she does a good job of dealing with what the DA (or Zille) is saying rather than what she thinks of the DA. The piece is more reportage than opinion.

Martin Neethling May 6, 2025, 06:44 AM

The Writer is wrong in attributing the emergence of SA’s black middle class to Employment Equity. It’s an extraordinary leap, unsupported by evidence. The underlying falsehood is that businesses and organisations would not have employed people covered by the various forms of EE, without EE. The writer is also wrong that this new law is just a continuation of past EE laws. It’s not. It imposes hard national representivity quotas under threat of fine, and an absolute to work for some.

Maria Janse van Rensburg May 6, 2025, 06:50 AM

Challenging proposed legislation that violates provisions of the Constitution can be very nuanced. That is what the ANC should focus on, review it critically and if found wanting, amend it timeously and move on. A blanket condemnation by any party to any attempt to ensure that the provisions of the Constitution are upheld, is disservice to the people of South Africa. All political parties and office bearers must sharpen their pens. The GNU is not supposed to be a place for "Yes" men.

D'Esprit Dan May 6, 2025, 02:00 PM

100%

Paul T May 6, 2025, 07:45 AM

I don't believe racial quotas are the solution. Even though BEE has played a role in redistribution, there is still huge inequality in this country and BEE has also contributed to skewed labour markets that increase costs and worsen capacity. However the DA is still not able to clearly articulate the alternative to BEE that will solve the problem of inequality. Until someone can clearly articulate a vision that will decisively deal with inequality we are going to be stuck with BEE.

R S May 6, 2025, 08:18 AM

The DA has made it clear. They will use UN guidelines that are based on access to resources, not about the colour of your skin.

Fanie Rajesh Ngabiso May 6, 2025, 07:53 AM

I have never been against responsible BEE as an interim concept to help level the playing field, and it is likely that it has contributed to a new middle class. However the goal and best for all must always be an open, growing economy as this improves the lives of all South Africans and is necessary to compete in the modern world. Well done DA.

Hari Seldon May 6, 2025, 10:39 AM

agreed

Hidden Name May 6, 2025, 01:36 PM

What flipping "middle class" are you all blethering about? You realise there are ONLY about 7.5 million people actually paying income tax, yes? From a total population of more than SIXTY MILLION, with roughly FORTY FIVE MILLION of them working aged adults (estimates vary, of course). Think about that. If you cant see its a disaster then you are making a deliberate choice to ignore reality. And Ferial claims 20 million middle class black people as a result of BEE? Seriously? Obvious rot.

Mike Cooper May 6, 2025, 08:02 AM

Transformation is a must - but surely many members of our society have benefited from transformation , and to all intents are on an equal footing, economically, skills wise, and network wise. Similarly, many people cannot access BEE benefits - and it would be more beneficial to develop a test to ensure - people who require BEE benefits receive it and those who are empowered don't. We should remember that discrimination whether fair or not breeds resentment.

R S May 6, 2025, 08:17 AM

Daily Maverick, can you make it possible to filter certain authors out? Ferial's bias against the DA and towards the ANC is a borderline joke. She ignores the fact that the black middle class is the result of an overly large and overly paid civil service. Part of the reason we are facing a fiscal cliff is because of BEE.

Get off my lawn May 6, 2025, 01:51 PM

Just don't read articles by journalists that rub you the wrong way :) That said, reading the opposing viewpoints is healthy, especially if you disagree. We need to hear both sides to understand where the other side is coming from to form proper opinions rather than creating echo chambers.

D'Esprit Dan May 6, 2025, 02:58 PM

Agreed!

William Kelly May 6, 2025, 08:46 AM

Chat GPT? Really? Sigh.

Johan Buys May 6, 2025, 09:09 AM

Will we ever get past our race obsession :( It is as stupid to employ X because he is white + male as to employ Y because she is not white and female. Bad, bad, terrible business choices either way. employ the best! How must an employer with low staff turnover rate get to the quotas? Fire the non-quota staff? That would open up a Labor Law problem. Government can and does do as it pleases with its staff, but should stay out of private sector.

May 6, 2025, 09:35 AM

Ferial Haffagee misses a critical point. If BBEEE, cadre deployment, and jobs for comrades is the way forward, why has our country descended into such a shocking state of escalating joblessness and poverty over the past 15 years? Implementing this Act will simply ensure that the ANC's hopeless policies and its cadre deployment programs carry on uninterrupted. DM should find a more balanced and neutral journalist to air severe developments like the BELA, NHI, and Employment Equity Acts

keith.ciorovich May 6, 2025, 01:50 PM

I agree, there is almost always a hint of bias towards the Da by the author. Very little investment to kick start economic growth will take place due to the unfriendly environment business has to contend with. Even China has seen that Marxist policies are no way to grow the country and corrupt officials and politicians are quickly and harshly dealt with. Unfortunately the young people will be impoverished due to the continuation of racial laws and quota's.

D'Esprit Dan May 6, 2025, 02:04 PM

Agreed with your ocmments on the ANC, but Ferial is allowed her opinions - if they abuse facts or misrepresent them, make that point, but she, like anyone else, is entitled to an opinion.

Paul Heering May 6, 2025, 09:49 AM

The bias in this article makes me question why I subscribe to DM.

Bruce Stephenson May 6, 2025, 10:08 AM

The writer's bias one way or another doesn't matter here. What the article tells me is that the DA actually has principles that it is prepared to stick to, making it unique amongst South African political parties.

Jill Davies May 6, 2025, 10:38 AM

Well said. And surely 31 years of BEE is more than long enough to right matters.

Steuart Pennington May 6, 2025, 10:47 AM

There are two issues here, the first is the understanding of risk. Nowhere in any of our Equity/labour legislation is the issue of risk taken into account. Those entrepreneurs who are prepared to 'risk' personal sacrifice and investment should not be burdened by legislation which completely disincentivises them from taking the risk of starting a new business. The second is where to start with equity, not at the top of the pyramid with regulation, but rather at the bottom with education reform.

D'Esprit Dan May 6, 2025, 02:06 PM

We're 30 years late on the education front, largely thanks to Angie 'Verwoerd' Motshekga.

May 6, 2025, 10:59 AM

I am getting really tired of media headlines fear mongering on the GNU. There seems to be a misunderstanding in most media titles on the difference between the DA serving as a member of the GNU and the DA as an opposition party - which by the way it still is. And the ANC - while a partner in the GNU - is still in opposition to the DA. Governance is very different from party politic. A legal and binding agreement underpins the GNU - it can't just dissolve.

Big Bronco May 6, 2025, 11:36 AM

When are they going too talk about how skilled the people are and their abilities. Your colour does not always reflect skill, ability or attitude. If SA was governed by the right skilled politicians, irrespective of colour, transformation would look after itself.

Michele Rivarola May 6, 2025, 11:48 AM

Not sure why everyone gets hot under the collar. The courts will decide if legislation is constitutionally acceptable or not. This idea that of you are not with me you are against me must stop if SA is to remain a democracy. People and political parties have differing opinions and agendas. I really do not udnerstand why it is so difficult for politicans to accept it.

D'Esprit Dan May 6, 2025, 01:47 PM

"Without this....SA would not have its sizeable BMC. This has fuelled growth and ensured remittances to black communities left behind." What growth? In 2005, SA's economy was the 27th largest globally - it has regressed since to 40th in 2020 and will drop to 43rd by 2030. Philippines, Bangladesh, UAE, Ireland, Israel, Singapore, Vietnam, Thailand, Malaysia, Egypt, Colombia and Romania have overtaken us. Inflexible rules (incl. BEE) have crushed growth. 40% unemployment doesn't lie.

Get off my lawn May 6, 2025, 02:06 PM

The idea behind BEE is well-intentioned, but the implementation is very flawed. You aren't helping someone by placing them in a role they cannot fulfill, you are simply creating more animosity when those with the lower salary shoulder the burden of a useless manager added for the sake of ticking a box. The answer isn't simply "remove the white managers, make them black." The person in that role should be there because they are the best person for the job, not to be a well-paid figurehead government can yell "yay transformation" at.

Get off my lawn May 6, 2025, 02:08 PM

Note to the writer - "inherited network privilege" and "cadre deployment" aren't all that different. What is cadre deployment other than getting the job because you have the right friends?

Jubilee 1516 May 6, 2025, 03:14 PM

Ferial, the middle class created by EE refers; dow succesful is this middle class at fulfilling the functions of a middle class? In terms of running SOE's, education, nursing, running municipalities, creating new businesses, entrepreneurship etc?

Fernando Moreira May 6, 2025, 03:26 PM

Why would this be the end of the GNU ? Why is there a narrative that any misalignment is seen as an insurmountable problem . Long surviving marriages are a road full of bumps and bruises, if the will is there, it will be for the better and makes it stronger . The ANC should listen more

David_C May 6, 2025, 03:57 PM

Again, the author displaying significant bias against the DA and a hopeless understanding of economics. The math is simple, the white population is not growing and economic growth necessitates more skilled workers which will be paid a middle class income. Therefore every additional skilled person required when there is economic growth must come from other races. Racial quotas and other BEE legislation severely hurt economic growth by increasing the hurdle to make an investment work.

megapode May 6, 2025, 05:14 PM

If skilled persons already have to be filled by non-white persons then how is BEE problematic? Or am I missing something?

John Strydom May 6, 2025, 05:11 PM

Whoopee for a larger black middle class, but at what cost?: Eskom, Transnet, the Post Office and crumbling municipalities - fiascos. Time to end this self-desctructive farce.

Gerrie Pretorius May 6, 2025, 06:35 PM

Only once the anc specifies the physical characteristics of each selected race group can such race laws begin to be lawful.