BEE Partner, South Africa Economy Watch

Split compliance targets

The employment equity scorecard splits the compliance targets between 0 to 5 years and 6 to 10 years. The Codes acknowledge that transformation is not going to be an overnight phenomenon and that businesses will take a while to establish Black people in relevant employment positions. They have provided moderate targets for the first five years in consideration of this. Overnight transformation strategies are unlikely to result in sustainable development.

The management indicator

The majority of points, 15, are allocated to this indicator. The management indicator is subject to the gender adjustor and full points will only be scored where 50% of the management targets for Black people are held by Black women. The targets are split. The target for 0 to 5 years is 40% of total management and the target for 6 to 10 years is 60% of total management positions that should be held by Black people. Read the rest of this entry »

The skills development levy was designed to force entities to invest in skills development by paying money to a SETA. This money is recoverable from that SETA when the company invests in skills development. A large majority interpreted the skills development levy as a pure tax, paid the money to the SETA and never reclaimed it. This approach results in zero return and becomes, as mentioned, a straight tax.

The objective of BEE is to stimulate growth, not to invoke taxes. If the skills development initiative is not going to result in a return for the business then it is likely to result in unsubstantial skills training. If it is unsubstantial, then the trainee is not going to be any closer to participating in the mainstream economy and the exercise lacks substance. Strictly speaking, BEE contributions that lack substance are not measurable.

An investment implies that the employee will return from training with the ability to make more money for the company than prior to the training. Whether that training entails operating a computer programme more efficiently or part-time study for a university degree is particular to each business. But it must result in a return for the company greater than the initial investment. Read the rest of this entry »

South African local Chinese are in the “black people” which is designed to benefit previous apartheid disadvantaged groups. Are they are fully black now? Do they really benefit all the advantages of BEE Act? According to the report this morning, Chinese are not fully black.
Johannesburg - The National African Federated Chamber of Commerce and Industry (Nafcoc) has slammed a high court ruling that defines Chinese South Africans as black and gives them the full benefits of affirmative action legislation, claiming the black economic empowerment (BEE) “cake” was too small to share. Read the rest of this entry »

Employee Ownership Master Course

Employee Ownership and ESOP’s (Employee Share Ownership Plans) are becoming a mainstay of BEE deals. We find that many different consistencies within an organisation are tasked with the design and implementation of an ESOP.

Course Outline

The Employee Ownership Master Course understands that all players need a basic understanding of the design and implications of the various design aspects of an ESOP.
This two-part employee ownership master course deals with the practical factors to consider in designing and implementing an employee ownership scheme. This course is essential for all individuals involved in the process, as it provides a best case understanding of the various disciplines. Read the rest of this entry »