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Business chamber warns of gender quotas

Cape Town - The Cape Chamber of Commerce and Industry on Wednesday has voiced concern over the quotas in the women empowerment and gender equality bill.

The bill, which was adopted by the National Assembly on Tuesday,  requires public bodies and companies to ensure that 50% of all decision-making jobs are filled by women.

"We want to see more women in responsible decision-making roles, but we don’t believe this can be done with legislation to enforce quotas,” president of the chamber Janine Myburgh said.

If the representation is not achieved immediately, companies will have to make regular reports to the Minister of Women, Children and People with Disabilities on how they are planning to promote women to achieve the 50% quota.

Failure to comply can lead to a fine equal to 10% of annual turnover or a five-year jail term for the CEO.

Most of the bill’s critics have described it as unrealistic and said that it duplicated existing legislation.

“A wide range of organisations including Business Unity South Africa rejected the legislation and explained to parliament why it would not work, but no one listened," said Myburgh.

The chamber also questioned the purpose of the public participation processes because it said the bill was passed despite extensive opposition from business, civic organisations and the public.

"What is the point of public consultation if valid arguments are simply ignored?”

She said the chamber wants to work with the government to ensure legislation that is good, practical and effective.

"We want to see more women in responsible decision-making roles, but we don’t believe this can be done with legislation to enforce quotas.”

A major concern for business was that a whole series of regular reports to the minister was required and this meant more unproductive work and red tape.

“We are supposed to be getting rid of red tape not adding to it,” said Myburgh.

On Wednesday, Minister for Women Lulu Xingwana welcomed the decision to adopt the bill.

"The women of South Africa have said to us that they cannot wait any longer to share in the fruits of our democracy," she said.

The bill will now be passed to the National Council of Provinces for further consultations and public hearings.


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