The Democratic Alliance who are the main opposition party in South Africa are taking the ANC to court over the new amendments to the Employment Act. Having race quotas in the private business sector is never going to work and is totally unfair and racist.
You have one side who is in favor of this as they will benefit short term, but lose out long term when businesses collapse and they do not understand. When you consider all government departments and State Owned Enterprises already work on a racial quota system and how that has worked out. There is not one SOE at would survive in the private sector if it was not for monetary bail outs.
Telling a private business to employ a certain race or gender will never happen as it has to be on the best person for that particular role only as nothing else matters. What the government is trying to push rough as law would tank the economy.
Businesses cannot fire staff because they are of a certain race or gender because that would be inappropriate and unethical on all levels. The same applies to the hiring process. The government is in a bind due to the high unemployment in the country and are worried and rightly so about the next general elections. They lost a lot of support the last time out and had to partner with other political parties to stay in power.
The solution is rather easy and that is to grow the economy because a growing economy creates more jobs which will reduce the numbers of unemployed. The more people employed boosts the tax coffers allowing for more investment initiatives that creates even more employment. This is how things are supposed to work and always has been the case.
The problem lies in the fact most of the tax revenue is being stolen so it never helps grow the economy like it should and never will until this practice changes. You cannot rely on the private sector to grow the economy if you are taxing them more and more and why businesses are either closing down or employing less people. I have said this before businesses have been in survival mode since the covid lock downs and this is not going to suddenly improve until the economy grows again.
Unfortunately this is very true as e cot of investing in SA has some extra added costs like the 33% black ownership rights that tend to be the same government officials involved. Starlink would be in SA right now if the SA President was a share holder and how I see his meeting played out with Musk and why Musk walked away.
If these employment act amendments get pushed through as law the economy is going to shrink even more as many more businesses will be forced to down size or shut for good. This is the reality of the real world that these idiots in charge do not want to see or hear about.
Posted Using INLEO
