Companies in the Top 10 employment equity list of the 2007 TEC survey bear interesting similarities. Either they are majority black-controlled (Telkom, The Don), or operate in sectors that require a high number of black employees on the ground (Edcon, BHP Billiton). Or perhaps they genuinely believe in transformation.
For example, Edcon (ranked 8th on employment equity) is one of SA's biggest clothing retailers and its biggest customer-segment is black, as is the majority of its shopfloor staff and junior managers. This makes sense if Edcon is to understand its customers' needs. Its middle management is 55,3% black and senior management 17,7% black.
Another element of employment equity is that a company may operate in a sector where BEE has to be visible to secure operating licences or certain rights from government. This is most common among resources and media companies.
But, overall, companies are starting to realise that employment equity is a business imperative.
The Public Investment Corporation (PIC) recently said lack of transformation through equity and employment is a business risk in SA. The PIC - one of the biggest investors on the JSE - has been on a transformation crusade, which has led to the appointment of more senior black executives.
But not enough. The Empowerdex figures show senior management positions are still mostly white-held, while progress is starting to show at junior and middle management levels.
The figures also show companies such as The Don Group, Telkom and Sekunjalo Investments (majority black-controlled) are reporting a high number of black senior managers, compared with historically white companies such as Pick 'n Pay, Edcon or BHP Billiton.
Frustration at the slow pace of workplace transformation was highlighted by the Employment Equity Commission, led by Jimmy Manyi, who said last year the Employment Equity Act had been poorly implemented by most employers. The number of employment equity reports submitted to the commission in 2006 fell by 18%. It reported an increase of only 2,1% in the number of blacks in top management in private companies between 2001 and 2005, based on 2 762 reports. Government views the low submission rate as a way of hiding the slow pace of transformation.
This was underscored by the fact that of about 30 CEOs that vacated their posts during 2006, only two were replaced by black candidates.
There are big movements in the overall 2006-2007 employment equity rankings. Six of the companies that featured in the top 10 in 2006 did not make the cut this year. But the Don Group retains top spot with a score of 13 out of 15. The company is black-owned and managed and its controlling shareholder is Thabiso Tlelai, who took over in 1999. Overall, the company came third this year (from second in 2006).
Overall winner, Enaleni Pharmaceuticals, is ranked third in this category, with 11,17 points.
