eBusiness Weekly
fin24
Huawei Technologies South Africa would like to reach an out-of-court settlement with the Department of Labour over claims that the company violated SA’s employment equity regulations.
The Chinese-owned firm this week approached the department with the offer after it was served with a legal notice regarding its failure to comply with local Employment Equity regulations. It faced a possible fine of R1.5 million or 2 percent of the unit’s revenue.
The Department of Labour’s chief director: statutory and advocacy services, Fikiswa Mncanca-Bede, said they were on Monday approached by the company with a possible out-of-court settlement offer. She could not reveal the contents of the proposal, as no agreement had been reached between the parties.
“We are currently in talks with the company, and await the details of their final offer,” said Mncanca-Bede.
Earlier this month, the department announced that it had taken Huawei to the Labour Court for noncompliance with the Employment Equity Act, based on the overwhelming number of foreign workers it employs.
An audit conducted by the department in 2020 had shown that Huawei, which is a key technology supplier to a number of local telecommunication companies – is 90 percent staffed by foreign nationals, in what is in violation of equity laws.
The department had said that the low representation of local personnel in Huawei was the worst case the department had encountered – and the company had not provided any reasons for its breach.
Bede mentioned that the issue of a possible fine against the company was not off the table.
Huawei spokesperson, Vanashree Govender, confirmed that the company had “entered into talks to reach a settlement agreement, and have agreed to stay court proceedings instituted by the department against Huawei on 11 February 2022, pending the outcome of the negotiations”.
Govender added that the company was positive that the matter would be concluded shortly.
According to the Department of Labour, Huawei was legally required to employ 60 percent South Africans and 40% foreign nationals; however, its ranks from top-level to semi-skilled workers are filled by people from outside the country.
Mncanca-Bede stated that the department welcomed Huawei’s settlement proposal, as it would eliminate the need for lengthy litigation.
“Cases normally take a long time to conclude. This latest development also shows that the work of our inspectors is taken seriously.”
The department had earlier said that taking the company to court was meant to send a strong message to other companies over compliance with labour laws and indicated that it intends to conduct more employment audits among foreign-owned companies to assess compliance.
