7 TH CEE ANNUAL REPORT 2006/2007 Presentation to the Portfolio Committee on Labour

1. 7TH CEE ANNUAL REPORT 2006/2007 Presentation to the Portfolio Committee on Labour

2. CONSTITUTION of RSA Chapter 2 Bill of Rights Section 9(2) “Equality includes the full and equal enjoyment of all rights and freedom. To promote the achievement of equality, legislative and other measures designed to protect or advance persons, or categories of persons disadvantaged by unfair discrimination may be taken”

3. PURPOSE OF EE ACT To achieve equity in the workplace by- • Promoting equal opportunity and fair treatment in employment through elimination of unfair discrimination; and • implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups to ensure their equitable representation in the workplace

4. AMENDED EE REGULATIONS EE Regulations amended to, amongst others, • improve data collection; • To clarify that only designated groups who became citizens prior to 27 April 1994, and their descendents, are beneficiaries; • To monitor whether designated groups are not only employed in support functions; and • To ensure that employers fully and accurately complete their EE reporting forms.

5. EE AWARDS • The Inaugural EE Awards function which to take place in August of 2007 has been cancelled due to poor levels of compliance. • The Top 100 JSE listed companies did not make even the 1st pass

6. ECONOMICALLY ACTIVE POPULATION DISTRIBUTION IN TERMS OF RACE & GENDER

7. EAP IN TERMS OF RACE & GENDER (LFS SEPTEMBER 2006) • 87.2 % Blacks (46.9% male & 40.3% women) • 12.8% Whites (7.3% male & 5.5% women); and • 54.2% male & 45.8% women.

8. EE TRENDS FROM 2000 TO 2006

9. REPORTING REQUIREMENTS • Small employers (i.e. Employers with fewer than 150 employees) report every two years; • Large employers (i.e. Employers with 150 or more employees) report every year; • Specific focus for this analysis on trends is only placed on reports received in 2000, 2002,2004 and 2006 because this is when both large and small employers reported.

10. DISTRIBUTION OF REPORTS RECEIVED AND ANALYZED FROM 2000 TO 2006 • 12980 reports were received and 8250 reports were analyzed in 2000; • 6990 reports were received and 6990 reports were analyzed in 2002; • 9389 reports were received and 5554 reports were analyzed in 2004; and • 6879 reports were received and 4394 reports were analyzed in 2006.

11. KEY REASONS FOR EXCLUDING REPORTS FROM THE ANALYSES • Data in vital tables were not tallying; • Reports not signed by the CEO; • Missing pages and inaccurate completion of certain sections; and • Reports containing in-house categories and levels that do not correlate with the regulations.

12. DG REVIEW –Sec 43 • No consultation with Employees. • Arbitrary reports not based on any plan. • Consultants employed to help tic the box that report has been submitted. • No EE forums, just management. • Inability to find suitable blacks

13. PRESENTATION FOCUS – 1ST THREE OCCUPATIONAL LEVELS • Presentation focuses on trends involving the first three upper occupational levels. • The three occupational levels are Top Management, Senior Management and Professionally Qualified & Middle Management. • This is where designated groups are most under-represented.

14. TOP MANAGEMENT – TOTAL % CHANGE FOR RACE FROM 2000 TO 2006 • Blacks increased by 9.5% • Africans increased by 5.1% to 11.3= need 6.5* • Coloureds increased by 2.0% to 4.7= need 2.2* • Indians increased by 2.4% to 6.2 = 2*EAP • White women incrsd by 4.5% to 14,7 = ~3*EAP

15. TOP MANAGEMENT – TOTAL % CHANGE FOR WOMEN FROM 2000 TO 2006 • Women increased by 9.2% • African women representation increased by 1.7% • Coloured women representation increased by 1.3% • Indian women representation increased by 1.2% • White women increased by 4.5%

16. SENIOR MANAGEMENT – TOTAL % CHANGE FOR RACE FROM 2000 TO 2006 • Blacks increased by 8.4% • Africans increased by 4.7% to 13.4 % • Coloureds increased by 0.9% to 5.8% • Indians increased by 2.8% to 7.0% • White women increased by 2.3% to 19% and are more three times their EAP

17. SENIOR MANAGEMENT – TOTAL % CHANGE FOR WOMEN FROM 2000 TO 2006 • Women increased by 6.4% • African women increased by 1.6% to 3.6% • Coloured women increased by 0.7% to 2.1% • Indian women increased by 1.4% to 2.3% • White women increased by 2.3% to 19%

18. PROFESSIONALLY QUALIFIED – TOTAL % CHANGE FOR RACE FROM 2000 TO 2006 • Blacks decreased by 7.6% to 36.5% • Africans decreased by 12.6% to 20.2% • Coloureds increased by 2.5% to 8% • Indians increased by 2.5% to 8.3% • Whites increased by 6.1%, to 62.2% White males increased by 26.2% and are almost twelve times their EAP

19. PROFESSIONALLY QUALIFIED – TOTAL % CHANGE FOR WOMEN FROM 2000 TO 2006 • Women decreased by 6.9% to 36,3% • African women decreased by 13.3% to 7.2% • Coloured women decreased by 1.2% to 3.4% • Indian women increased by 1.0% to 3.2% • White women increased by 3.8% to 22.1%

20. WORKFORCE PROFILE OF PEOPLE WITH DISABILITIES (PWD’S) (EE REPORTS 2006 – OCCUPATIONAL LEVELS)

21. % CHANGE FOR PWD’S IN EMPLOYMENT FROM 2000 TO 2006 • PWD’s workforce representation was 0.9% in 2000. • PWD’s workforce representation was 1% in 2002. • PWD’s workforce representation was 1% in 2004. • PWD’s workforce representation was 0.7% in 2006.

22. RECRUITMENT

23. TOP MANAGEMENT (EE REPORTS 2006 – RECRUITMENTS) Of all recruitments at this level : • 38.9% were Black & 53.5% were White: and • 72.2% were male & 22.2% were women • 7.6% were foreign nationals

24. SENIOR MANAGEMENT (EE REPORTS 2006 – RECRUITMENTS) Of all recruitments at this level: • 32.8% were Black & 63.4% were White • 68.5% were male & 27.7% were women • 3.4% foreign national

25. PROFESSIONALLY QUALIFIED MANAGEMENT (EE REPORTS 2006 – RECRUITMENTS) • 40.8% were Black & 57.0% were White • 59.9% were male & 37.1% were women • 2.3% foreign national

26. RECRUITMENT (PWD’S) (EE REPORTS 2006 – OCCUPATIONAL LEVELS) Approximately 1% of all recruits were people with disabilities (PWD’S)

27. PROMOTIONS

28. TOP MANAGEMENT (EE REPORTS 2006 – PROMOTION) Of all promotions at this level: 31.3% were Black & 65.7% were White 71.7% were male & 25.3% were women 3.0% were foreign national

29. SENIOR MANAGEMENT (EE REPORTS 2006 – PROMOTIONS) Of all promotions at this level: • 39.7% were Black & 58.8% were White • 66.8% were male & 31.7% were women • 1.7% foreign national

30. PROFESSIONALLY QUALIFIED (EE REPORTS 2006 – PROMOTIONS) Of all promotions at this level: • 60.8% were Black & 38.8% were White • 65.1% were male & 34.5% were women • 0.4% foreign national

31. PROMOTIONS (PWD’S) (EE REPORTS 2006) Approximately 0.2% of all promotions were people with disabilities (PWD’s).

32. CONCLUDING OBSERVATIONS & REMARKS

33. Black involvement in the economy • Management of the Economy predominantly in White hands • Both line and support functions dominated by Whites • Black people are largely in support functions • Even in those support functions, Black people remain largely without authority • Pace of transformation painfully slow

34. TRAINING • Whites dominate in the middle to upper levels when it comes to receiving training • Generally no purposeful training • Those Blacks who receive training appear to be on perpetual training with no graduation into meaningful career paths .

35. ENFORCEMENT MECHANISMS • Quantum of fines is meaningless and need to be revised upwards • Remedial action to kick in sooner • Specific proposals in the 2nd half of 2007 • Inspectorate has been advised to particularly focus on the Top 100 JSE

36. SHOULD WHITE WOMEN continue to BE DESIGNATED ? Whereas EAP of White women is 5.5%: • 14.7% of all Top Management positions • 19% of all Senior Management positions • 22.1% of all Professionally Qualified & Middle Management positions

37. THANK YOU