Ramaphosa admits SA is falling short in fixing economic inequality

Not enough has been done to change the racial composition of the ownership, control and management of the economy despite Africans constituting the majority of the economically active population, President Cyril Ramaphosa admits.

Writing in his weekly newsletter on Monday, he said South Africa needs to protect the rights of workers to build an inclusive economy.

Workers’ plight

His letter focused on the plight of workers after the country observed Workers’ Day, which is commemorated across the world in honour of the struggles of workers for fair labour standards and conditions of work.

Ramaphosa said since the advent of democracy in 1994, the country has observed Workers’ Day also to acknowledge the “historical role of workers and the labour movement in our broader struggle for freedom”.

“Over the past 31 years, we have made considerable progress in improving our labour laws and protecting the rights of workers.

“We emerged from a past where black workers were deliberately denied their rights. For many years, black workers could not be organised into unions, through job reservation they were denied access to certain occupations and they often worked in unsafe and unhealthy conditions,” Ramaphosa said.

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Employment equity

However, Ramaphosa stressed that employment equity was not the only area where challenges remain.

He said South Africa’s labour laws are part of the country’s effort to overcome the structural inequality of apartheid.

“The latest report of the Employment Equity Commission shows how far we still have to go in ending the race-based disparities that exist in our economy.

“Despite Africans constituting the majority of the economically active population, the majority of top management positions in the private sector are still held by white males.

“This trend is observed at senior management level in nearly every economic category. Black South Africans are predominantly in the semi-skilled and unskilled categories,” Ramaphosa said.

Labour laws

Ramaphosa said the International Labour Organisation has highlighted problems of compliance with labour laws in South Africa, as well as inadequate safeguards for workers in the burgeoning informal sector.

“That is why part of our G20 Presidency involves engagements with labour over the consolidation of worker rights. We have held fruitful discussions in this regard with the International Trade Union Confederation and others.”

‘Imbalances’

Ramaphosa added that despite these challenges, the country will continue to use its progressive labour laws to correct the “imbalances of the past”  and to ensure that these protections translate into tangible benefits for workers.

“We call on business in particular to take the necessary measures to ensure that their workplaces reflect both the letter and spirit of laws such as the Labour Relations Act, Basic Conditions of Employment Act, Employment Equity Act and Occupational Health and Safety Act.”

Ramaphosa said companies should go beyond compliance to address the historical inequalities and create opportunities for underrepresented groups among their workers.

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