Govt tightens grip on monitoring foreign company workforce quotas

The department of employment and labour has vowed to start checking more foreign-owned companies operating in South Africa for violations of the employment equity policy and having workforces comprising more than 40% foreigners.

This follows the department’s court application against Huawei Technologies SA.

The department is seeking a fine of R1.5 million or 2% of the local firm’s annual 2020 turnover for alleged breaches of the rule.

The firm’s staff complement comprises 90% foreigners.

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According to advocate Fix Bede, the chief director statutory and advocacy services at the department, Huawei was currently the only company on their books that employed more foreigners than locals.

“The most important thing regarding the application is that our problem is that in their projections they are intending to bring in more foreigners, even though they already have 90%,” Bede said.

“Our application to the court is asking the judge to impose a fine of over R1.5 million, or 2% of their annual turnover, whichever is greater. “And also to instruct them to correct the contraventions.”

She said an audit of the Chinese telecommunications giant had revealed that the company had exceeded the maximum quota of 40%.

The company then requested a meeting immediately after they were issued with recommendations, following their failure to comply.

“They wanted a roundtable discussion in 2020, but until today they have not moved.

“I think they thought the case would just disappear,” she said.

However, labour analyst Tony Healy said some companies preferred to hire foreign nationals, even the undocumented, due to the skills shortage in certain industries.

Healy also said there were many companies that were hiring more foreign nationals, and it was not necessarily unlawful from an employment equity point of view.

“You will find as well that it’s the view of more than one employer that foreign nationals have a better work ethic,” he said.

“And some would even say they are less likely to become union members and are more flexible when it comes to working hours.”

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The Economic Freedom Fighters accused Huawei SA of further entrenching tension between South Africans and Africans from other countries by directly violating South Africa’s immigration laws and employment equity regulations.

“The proposed fine to Huawei of 2% of their annual turnover must be utilised to stimulate job creation and assist small businesses that have been harshly affected by Covid and related lockdowns,” the party said.

The department’s spokesperson, Petunia Lessing, said Huawei’s legal team had said the department of home affairs had given the company permission to employ as many foreigners as it has.

“In investigating this matter, we worked with department of home affairs to determine whether it had granted Huawei a permit to employ more than 40% foreign nationals, as required by the immigration regulations,” Lessing said.

“The department would like to send a strong message to other employers who do not comply with employment equity policies that the department is on their tail and consequences will be incurred if non-compliance is discovered.”

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– reitumetsem@citizen.co.za