Old Mutual challenges equity order
February 10, 2004
By Mokgadi Pela
Johannesburg - Insurance heavyweight Old Mutual has challenged the employment equity compliance order issued to its Johannesburg branch by the department of labour.
This follows yesterday's Business Report article which stated that an Old Mutual branch in Johannesburg would be hauled before the labour court for not complying with employment equity legislation.
Among the charges was that Old Mutual failed to submit an equity report by October last year, as required by the legislation.
Yesterday, however, a department of labour official, who did not want to be named, was adamant the Old Mutual branch in Johannesburg had failed to comply with the legislation: "There is no change. We are going forward with the action. It is a process. They have to comply," the official said.
The official would not elaborate on when the papers would be served on Old Mutual. This action would result in the company appearing before the labour court.
Nicky Bicket, Old Mutual's general manager for human resources, said: "We are well advanced in our efforts to meet employment equity targets, and react decisively to any complaints about deficiencies in the implementation of our plans.
"For instance, after a local inspection from the department of labour in July, a notice of undertaking was issued by the government requiring compliance in terms of section 36 of the legislation.
"Our employment equity manager visited the branch and addressed the issues, which were communicated to the department.
"Nevertheless, we received a compliance order on December 19. We have queried this and are awaiting a response."
Bicket said Old Mutual submitted the full employment equity report in October. The company also contested the claim that it did not consult with a representative union or employees about the equity plan.
"There is an annual consultation process, and structures are in place for each business unit in the organisation. During 2003, this process took place from May to July," Bicket said.
The company said it had increased the percentage of black top managers from 4.9 percent to 16.9 percent, and for women from zero to 15.6 percent. Overall, 46 percent of the top three occupational categories were black.
"We have comprehensive strategies to accelerate employment equity in professional skills categories, such as actuaries and chartered accountants. Our policy is to identify, train and develop talented black staff rather than to poach from our competitors," the company said.
Bicket added that 20 percent of each manager's bonus was dependent on achieving employment equity targets.
The department of labour said it would stop at nothing to ensure employer compliance with the legislation, whether in private or public institutions.
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