Business and Technology

Government takes Huawei South Africa to court over employment equity violations

The Department of Employment and Labour filed court papers against Huawei Technologies South Africa today for non-compliance with South Africa’s employment equity policy. Huawei Technologies South Africa was audited in 2020 and found to be non-compliant in that they employ approximately 90% foreign nationals, which violates the Employment Equity Policy,” the department stated.

“Huawei’s legal department contacted the [labour department] in an attempt to reach an amicable resolution,” it said. When asked about the 90% foreign national employment, the legal person stated that Huawei was granted permission by the Department of Home Affairs (DHA) to employ the number of foreign nationals they do.”

After investigating these claims, the department said Huawei’s story did not check out.

The labour department found that DHA granted Huawei a permit in accordance with the provisions of South Africa’s immigration regulations that required it to employ 60% South Africans and 40% foreign nationals.

It held a follow-up meeting with Home Affairs and the Department of Trade and Industry to determine whether Huawei had committed any other violations of national laws.

“As a result, the Department has determined that its course of action is clear and that all transgressions have been committed, and it has decided to refer this case to court without further delay on the grounds stated,” the Department of Employment and Labour stated.

The department’s inspection and enforcement services reviewed Huawei, and found the following:

Top management — Huawei has five employees. All five (100%) are foreign nationals, and Huawei intends to keep this number for the next two years without employing any of the designated groups
Senior management — out of a total of 71 employees, 27 (38%) are foreign nationals, and Huawei is projecting to increase this number.
Professionally qualified — out of a total of 435 employees, 378 (87%) are foreign nationals and still Huawei projects to increase the number to 405 in the next two years without any projections for increase for the designated groups.
Skilled-Technical — 138 (76%) of the 181 employees are foreign nationals, with Huawei projecting an increase to 168 in the next two years
Semi-Skilled — there is currently only one employee at this level, who is a foreign national, with Huawei projecting an increase to 11 in the next two years without any designated group being employed.
“The Department would like to exercise caution and send a strong message to other employers who do not comply with employment equity policies that the Department is on their tail and consequences will be incurred if non-compliance is discovered.”

According to the labour department, its Inspection and Enforcement Services will continue to protect vulnerable workers by inspecting and enforcing labour legislation.

It vowed to ensure that decent work principles are followed by conducting compliance inspections as per the set annual target and serving 95% of non-compliant employers, workplaces, and users inspected with a notice in accordance with relevant employment law within 14 calendar days of inspection.

“Additionally, ensuring that a predetermined percentage of non-compliant employers/workplaces/users received by Statutory Services are referred for prosecution within 30 working days,” it stated

Source: mybroadband

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