Industry body Business Unity South Africa (Busa) has initiated legal proceedings over the recently published Employment Equity (EE) Sector Targets, which came into effect on September 1.

Busa stresses that it is not opposing the EE Amendment Act or the principle of sectoral numerical targets under Section 15A of the Act.

The organisation has, however, cautioned that transformation must be implemented correctly. In Busa’s view, the current sector targets are “fatally flawed” both substantively and procedurally.

If allowed to stand, they risk undermining the very goal of an inclusive, transformed economy, the organisation states. 

Busa says its decision to initiate litigation was not taken lightly and follows numerous attempts to resolve the matter constructively.

The organisation says it has consistently engaged with the Department of Employment and Labour (DEL) in good faith. These engagements included formal meetings, data submissions and a detailed presentation to the Minister, raising urgent concerns with the consultation and methodology process.

Busa CEO Khulekani Mathe states that what took place was not meaningful consultation, but rather a presentation. “As social partners, we cannot allow performative engagement to substitute for genuine collaboration,” he says. 

The organisation’s main gripes with the EE Sector Targets include limited consultation time, with employers having had less than a week and, in some instances, only a few hours to respond.

Busa adds that insufficient information was provided on the methodology used in reaching the targets, including an insufficient explanation for how the DEL calculated the targets or the demographic assumptions used.

For example, the EE disability target was raised to 3% without the DEL providing sufficient supporting data or adequately explaining how this figure was reached, despite acknowledging the lack of disability statistics.

Busa also believes the EE Sector Targets have insufficient sectoral analysis, with government having undertaken limited assessments to determine where targets were achievable given industry-specific realities.

Moreover, Busa says the targets are not aligned with broad-based black economic empowerment sector codes, which creates regulatory confusion.

Mathe states that “one-size-fits-all targets” and the DEL’s refusal to differentiate among subsectors ignores operational, geographic and structural diversity.

“The need for transformation is urgent, but urgency must not become recklessness. We’re acting now to protect the credibility of equity policy. Unworkable targets do not advance transformation. They deepen frustration and erode trust in public policy.”

Mathe continues that poorly developed targets risk damaging vital sectors of the economy.

“If targets are unrealistic or not based on the skills available in each sector, companies may find themselves unable to comply. This creates uncertainty and weakens the integrity of the regulatory process, ultimately undermining the transformation and inclusion that the Employment Equity Act is meant to achieve,” he adds.

Busa emphasises that this legal action is not aimed at opposing transformation or undermining the EE Amendment Act.

On the contrary, the business community has consistently worked to champion measures that foster diversity, inclusivity and redress. 

The concern lies with the manner in which these targets have been developed and imposed.

According to Busa, rushed, opaque and procedurally irregular processes not only fail the test of legality but also set back the national imperative of transformation by making compliance impractical and unenforceable.

Busa says it remains committed to working with government, labour and other partners towards a framework for transformation that is lawful, transparent and evidence-based; grounded in robust data and sector-specific realities; and achievable in practice, ensuring sustainability of transformation over time.