Old Mutual in the hot seat over equity laws
February 9, 2004
By Wiseman Khuzwayo and Mokgadi Pela
Johannesburg - The Johannesburg branch of insurance giant Old Mutual is likely to be the first company to be hauled before the labour court for not complying with employment equity legislation.
One of the many charges against the company is that it did not submit an employment equity report by October last year, as required by legislation.
The law says that an employer with a staff of more than 150 must submit this report to the director-general at the department of labour by October 30 every year.
A reliable source, who did not want to be identified, said the Gauteng south division of the department was preparing papers to serve on Old Mutual.
According to the source, Old Mutual would also be charged with failing to consult with a representative union or with employees about an employment equity plan; failing to conduct an analysis of its employment policies; and failing to assign a senior manager to oversee the implementation of the plan.
If found guilty of any or all of these charges, Old Mutual could be fined up to R500 000.
Last July Old Mutual made a written undertaking to comply with the legislation, following findings by a labour inspector. A further compliance order was issued by the department of labour on December 19 2003.
Snuki Zikalala, the department's spokesperson, said: "Companies must realise that employment equity is part of government's transformation agenda. This step against Old Mutual should serve as a lesson to all and sundry that there are no holy cows.
"We still urge employers to make use of sector education and training authorities to skill South African workers. They should take advantage of the R3 billion they [employers] have contributed towards skills development. Such training should be agreed on with unions.''
Anneline Rhonda, an employment equity manager at Old Mutual's headquarters in Cape Town, said the matter of non-compliance was no longer an issue because the company had resolved it with the department.
Old Mutual stock gained 39c to R12 on the JSE Securities Exchange on Friday.
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