1. PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON LABOUR
CEE 11th ANNUAL REPORT
PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON LABOUR
20 SEPTEMBER 2011

2. CONTENTS Context of the Report Employment Equity Value Chain
Workforce Distribution
Reporting Requirements
EE Reporting and Analysis (All Employers)
Concluding observations & remarks

3. CONTEXT OF THE REPORT
Section (9(2) of the Constitution states that “Equality includes the full and equal enjoyment of all rights and freedom. To promote the achievement of equality, legislative and other measures designed to protect or advance persons, or categories of persons disadvantaged by unfair discrimination may be taken”
Purpose of the Act is to achieve equity in the workplace by promoting equal opportunity and fair treatment in employment through elimination of unfair discrimination; and implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups to ensure their equitable representation in the workplace.
Section 33 of the Act requires the CEE to submit an annual report to the Minister

4. Employment equity value chain
Desired state
Equitable & diverse workforce free
from unfair discrimination
Current state
Diverse workforce profile in line
with EAP with regards to
Race, gender, disability
Elimination of unfair
discrimination
Affirmative action
Equal opportunity
Recruitment
Skills development, Promotions 4

5. Desired workforce distribution
A representative workforce profile is aligned to the Economically Active Population
Employers should therefore take into account EAP to determine resource allocation and interventions needed to achieve an equitable and representative workforce.
The Economically Active Population (EAP) is based on Quarterly Labour Force Survey published by Statistics South Africa.
The EAP includes people from 15 to 64 years of age who are either employed or unemployed and seeking employment.

6. WORKFORCE DISTRIBUTION - EAP
MALE
FEMALE A C I W FN
National EAP
40.5%
6.0%
1.9%
6.7%
33.1%
5.0%
1.3%
5.4% 0%
Provincial EAP
Western cape
15.4%
30.0%
0.2%
8.6%
12.9%
25.6%
7.2%
Eastern Cape
39.3%
5.9%
0.8%
5.6%
37.8%
4.8%
0.6%
5.1%
Northern Cape
23.0%
22.7%
0.0%
7.8%
23.5%
17.6%
5.3%
Free State
46.1%
1.2%
8.0%
38.1%
1.0%
KwaZulu-Natal
41.7%
7.4%
3.8%
37.1%
0.5%
3.3%
North West
51.7%
1.5%
5.5%
35.1%
1.1%
4.4%
Gauteng
44.6%
2.1%
1.4%
8.9%
33.3%
1.7%
7.3%
Mpumalanga
47.3%
6.6%
39.9%
0.3%
Limpopo
53.2%
43.1%

7. REPORTING REQUIREMENTS
Small DESIGNATED employers (i.e. Employers with fewer than 150 employees) report every two years
Large DESIGNATED employers (i.e. Employers with 150 or more employees) report every year
Therefore in 2010 all employers, both large and small, were expected to report

8. EE REPORTING AND ANALYSIS (ALL EMPLOYERS)
Year
Reports received
Reports analyzed
% reports analyzed
2006
6 876
4 394
63.9%
2008
10580
7229
68.3%
2010
18534
16698
90.1%
The 2009 amended regulations has had a significant positive impact on the
accuracy, simplicity and the number of reports received by the Department.
Nearly 90% of all reports received were done via Online reporting, which
cut out the paperwork and improved on the accuracy of reports submitted
by employers.
Small employers are excluded because only large employers were expected to report in 2009.
Reports that were not fully and accurately completed were excluded.

9. PRESENTATION FOCUS – 1ST FOUR OCCUPATIONAL LEVELS
Presentation focuses on trends involving the first four upper occupational levels, i.e. Top Management, Senior Management, Professionally Qualified and Skilled levels.
This is where designated groups are most under-represented.

10. RACE AT TOP MANAGEMENT – 2006 TO 2010
% Diff
Trend
EAP %
African
11.3%
12.7%
1.4%
73.6%
Coloured
4.7%
4.6%
-0.1%
11.0%
Indian
6.2%
6.8%
0.6%
3.2%
White
74.9%
73.1%
-1.8%
12.1%
Foreign national
2.9%
0.0%

11. Gender at Top management
Male
Female
2006
2010
%diff
African
8.4%
9.2%
0.8%
2.9%
3.5%
0.6%
Coloured
2.7%
3.2%
0.5% 2%
1.4%
-0.6%
Indian
4.5%
5.4%
0.9%
1.7%
-0.3%
White
60.2%
60.8%
14.7%
12.3%
-2.4%
Foreign National
2.6%
2.5%
-0.1%
0.3%
0.4%
0.1%

12. TOP MANAGEMENT - 2010 MALE FEMALE A C I W FN Workforce profile
EAP
40.5%
6.0%
1.9%
6.7%
33.1%
5.0%
1.3%
5.4% 0%
Workforce profile
9.2%
3.2%
60.8%
3.5%
1.4%
12.3%
2.9%
Recruitment
14.7%
3.9%
4.9%
47.3%
7.1%
2.0%
12.5%
6.2%
Promotion
10.7%
6.3%
46.2%
4.2%
3.1%
2.1%
19.1%
2.3%
Termination
12.1%
4.0%
52.9%
5.3%
1.6%
13.5%
5.2%
Skills development
16.0%
4.3%
5.8%
48.7%
7.3%
1.8%
13.7%
0.0%

13. EE SECTOR PERFORMANCE TOP MANAGEMENT 2010
Best performing sectors at this level
Community, Social and Personal Services (government)
Electricity, Gas and Water
Mining and Quarrying
Worst performing sectors at this level
Retail and Motor Trade/Repair Service
Wholesale Trade/ Commercial Agents/Allied Services
Manufacturing

14. SENIOR MANAGEMENT – TREND FROM 2006
2010
% Diff
Trend
EAP %
African
13.4%
17.6%
4.2%
73.6%
Coloured
5.8%
7.0%
1.2%
11.0%
Indian
7.7%
9.1%
1.4%
3.2%
White
70.9%
64.1%
-6.8%
12.1%
Foreign national
2.0%
2.3%
0.3%
0.0% 14

15. Gender at Senior management
Male
Female
2006
2010
%diff
African
9.8%
12.0%
2.2%
3.6%
5.6% 2%
Coloured
3.7%
4.5%
0.8%
2.1%
2.4%
0.3%
Indian
5.4%
6.5%
1.1%
2.3%
2.6%
White
51.9%
45.9% 6%
19.0%
18.2%
-0.8%
Foreign National
1.6%
1.8%
0.2%
0.4%
0.5%
0.1%

16. SENIOR MANAGEMENT - 2010 MALE FEMALE A C I W FN Workforce profile
EAP
40.5%
6.0%
1.9%
6.7%
33.1%
5.0%
1.3%
5.4% 0%
Workforce profile
12.0%
4.5%
6.5%
45.9%
5.6%
2.4%
2.6%
18.2%
2.3%
Recruitment
12.8%
4.1%
44.3%
6.8%
2.0%
2.9%
17.8%
3.8%
Promotion
14.6%
5.5%
33.4%
8.6%
3.6%
20.9%
2.2%
Termination
11.3%
4.3%
46.2%
6.4%
18.4%
3.1%
Skills development
16.4%
6.6%
37.7%
9.7%
3.3% 16

17. EE SECTOR PERFORMANCE SENIOR MANAGEMENT 2010
Best performing sectors at this level
Community, Social and Personal Services (government)
Electricity, Gas and Water
Catering, Accommodation and other trade
Worst performing sectors at this level
Manufacturing
Retail and Motor Trade and Repair Service
Wholesale Trade, Commercial Agents and Allied Services

18. PROFESSIONALLY QUALIFIED – TREND FROM 2006
2010
% Diff
Trend
EAP %
African
20.2%
31.0%
10.8%
73.6%
Coloured
8.0%
10.4%
2.4%
11.0%
Indian
8.3%
8.8%
0.5%
3.2%
White
62.2%
47.7%
-14.5%
12.1%
Foreign national
1.4%
2.0%
0.6%
0.0%

19. Gender at Professionally Qualified
Male
Female
2006
2010
%diff
African
13.0%
17.7%
4.7%
7.2%
13.3%
6.1%
Coloured
4.6%
5.6% 1%
3.4%
1.3%
Indian
5.1%
5.3%
0.2%
3.2%
3.5%
0.3%
White
40.1%
29.9%
10.2%
22.1%
17.8%
4.3%
Foreign National
1.0%
1.5%
0.5%
0.4%
0.1%

20. PROFESSIONALLY QUALIFIED - 2010
MALE
FEMALE A C I W FN
EAP
40.5%
6.0%
1.9%
6.7%
33.1%
5.0%
1.3%
5.4% 0%
Workforce profile
17.7%
5.6%
5.3%
29.9%
13.3%
4.7%
3.5%
17.8%
2.0%
Recruitment
16.8%
30.9%
12.2%
3.7%
3.9%
18.9%
3.3%
Promotion
19.2%
9.6%
20.9%
15.3%
7.3%
4.1%
16.9%
1.7%
Termination
15.7%
5.1%
34.1%
10.7%
19.6%
2.6%
Skills development
20.1%
6.9%
5.5%
21.3%
16.5%
8.0%
4.4%
17.2%
0.0%

21. EE SECTOR PERFORMANCE PROFESSIONALLY QUALIFIED 2010
Best performing sectors at this level
Community, Social and Personal Services (government)
Electricity, Gas and Water
Catering, Accommodation and other trade
Worst performing sectors at this level
Wholesale Trade, Commercial Agents and Allied Services
Finance and Business Services
Manufacturing

22. SKILLED TECHNICAL– TREND FROM 2006
2010
% Diff
Trend
EAP %
African
39.2%
51.0%
11.8%
73.6%
Coloured
12.6%
13.0%
0.4%
11.0%
Indian
6.6%
6.2%
- 0.4%
3.2%
White
40.4%
28.5%
-11.9%
12.1%
Foreign national
1.2%
1.3%
0.1%
0.0% 22

23. Gender at Skilled level
Male
Female
2006
2010
%diff
African
29.2% 0%
10.0%
21.8%
11.8%
Coloured
6.8%
5.8%
6.2%
0.4%
Indian
3.8%
3.5%
-0.3%
2.8%
2.7%
-0.1%
White
23.2%
15.8%
-8.6%
17.2%
12.7%
-4.5%
Foreign National
1.0%
0.2%
0.3%
0.1%

24. SKILLED TECHNICAL - 2010 MALE FEMALE A C I W FN EAP Workforce profile
40.5%
6.0%
1.9%
6.7%
33.1%
5.0%
1.3%
5.4% 0%
Workforce profile
29.2%
6.8%
3.5%
15.8%
21.8%
6.2%
2.7%
12.7%
Recruitment
25.7%
7.9%
3.4%
19.0%
18.1%
7.1%
2.8%
13.8%
2.2%
Promotion
19.2%
9.6%
20.9%
15.3%
7.3%
4.1%
16.9%
1.7%
Termination
15.7%
5.1%
34.1%
10.7%
3.7%
3.3%
19.6%
2.6%
Skills development
20.1%
6.9%
5.5%
21.3%
16.5%
8.0%
4.4%
17.2%
0.0% 24

25. EE SECTOR PERFORMANCE SKILLED TECHNICAL 2010
Best performing sectors at this level
Community, Social and Personal Services (government)
Catering, Accommodation and other trade
Electricity, Gas and Water
Worst performing sectors at this level
Manufacturing
Wholesale Trade, Commercial Agents and Allied Services
Agriculture

26. PEOPLE WITH DISABILITIES– TREND FROM 2006
2010
% Diff
Trend
EAP %
All employers
0.7%
0.8%
0.1%
+/- 5.5%
Government made a commitment to have 2% of people with disabilities in the Civil service by Government did not reach this target so the committed to reach the 2% target by end of March Government has shifted that goal post even further, now government says that it will reach this target by the end of March 2010.

27. Summary
1.9% increase of Black employees at top management level since 2006
22.2% to 24.1% against an EAP of 87.9%
White employees reduced by 1.8%
This level will be representative in 127 years
6.8% increase of Black employees at senior management levels since 2006
26.9% to 33.7% against an EAP of 87.9%
White employees reduced by 6.8%
This level will be representative in 32 years
13.7% increase of Black employees at the professional level since 2006
36.5% to 50.2% against an EAP of 87.9%
White employees reduced by 14.5%
This level will be representative in 12 years
11.8% increase of Black employees at the skilled/technical level since 2006
58.4% to 70.2% against an EAP of 87.9%
White employees reduced by 11.9%
This level will be representative in 5 years
Notwithstanding that people with disabilities were represented across all occupational levels, most of their representation was concentrated in the lower levels, i.e. the skilled level downwards. Only about 17.5% of employed people with disabilities occupy middle-to-upper level positions. Their distribution in terms of race and gender highly mirrors the population distribution of all employees. The most under-represented groups are Blacks and females, particularly Africans and Coloureds. Whites dominate levels higher than the Skilled level. 27

28. Summary
Top and senior management levels changing at a slow pace, despite the termination rate at these levels
Women remain under-represented, more so at higher levels of management
Disability representation has remains below 1%
Can South Africa wait for more than 100 years to change the profile of top management? Or 30 years for senior management to do the same?
Notwithstanding that people with disabilities were represented across all occupational levels, most of their representation was concentrated in the lower levels, i.e. the skilled level downwards. Only about 17.5% of employed people with disabilities occupy middle-to-upper level positions. Their distribution in terms of race and gender highly mirrors the population distribution of all employees. The most under-represented groups are Blacks and females, particularly Africans and Coloureds. Whites dominate levels higher than the Skilled level. 28

29. Summary of report
To increase the pace of change, strategy has to change
Increased liaison with the Dept of Trade & Industry and influence the following changes:
Use employment equity targets in the BBBEE Codes to enhance compliance to the EEA
Make EE and SD compulsory for small companies in the Codes
Increase the EE threshold in the codes
Employment Equity Act amendments
Introducing fines
Simplified enforcement
Notwithstanding that people with disabilities were represented across all occupational levels, most of their representation was concentrated in the lower levels, i.e. the skilled level downwards. Only about 17.5% of employed people with disabilities occupy middle-to-upper level positions. Their distribution in terms of race and gender highly mirrors the population distribution of all employees. The most under-represented groups are Blacks and females, particularly Africans and Coloureds. Whites dominate levels higher than the Skilled level. 29

30. Thank You 30