Not the Target, But the Target Practice: Busa Takes Govt to Court Over Equity Rules

Not the Target, But the Target Practice: Busa Takes Govt to Court Over Equity Rules

The fight over how to accelerate workplace transformation in South Africa is heading for a dramatic courtroom showdown. Business Unity South Africa (Busa), the country’s largest business organisation, has filed papers in the Johannesburg Labour Court to challenge the government’s newly gazetted employment equity targets, arguing that the process was rushed, flawed, and ultimately, “performative.”

This legal move isn’t a rebellion against transformation itself. Instead, Busa insists it’s a fight for a seat at the tablea demand that the complex mechanics of building an inclusive economy be crafted through genuine collaboration, not just handed down as a decree.

The Heart of the Dispute: A Flawed Process?

At the centre of the controversy are regulations published in April 2025 that set specific race, gender, and disability representation targets for companies with more than 50 employees across 18 economic sectors. The goal, as stated by the Department of Employment and Labour, is to ensure workforces better reflect the country’s demographics.

Busa CEO Khulekani Mathe, in his court affidavit, makes a critical distinction: the organisation is not challenging the Employment Equity Amendment Act itself, nor the principle of having sector-specific targets. The objection lies in how these specific numbers were determined.

Busa claims the government skipped crucial steps mandated by the law. The Act requires a multi-stage process involving proper identification of sectors and prescribed criteria before the minister can set targets. According to Busa, what occurred was a shortcut. They allege the targets appear to be lifted directly from Broad-Based Black Economic Empowerment (B-BBEE) codes, which are designed for a different purpose, rather than being thoughtfully crafted for each sector’s unique realities.

“What took place was not meaningful consultation; it was a presentation,” Mathe stated, capturing the core frustration. “As social partners, we cannot allow performative engagement to substitute for genuine collaboration.”

A History of Engagement, A Breakdown in Talks

This isn’t a case of a business group acting on a whim. Busa’s court application comes after what it describes as years of engagement with the government and other social partners. The organisation points to formal meetings, detailed data submissions, and a direct presentation to the minister where they raised “urgent concerns” about the consultation methodology.

The feeling within business circles is that their input was effectively ignored. Affidavits from sector-specific bodies like the Consumer Goods Council of SA and the Agricultural Chamber of Business are cited to show that the targets feel arbitrary and not tailored to specific industries.

A Crowded Legal Battlefield

Busa is not the first business group to launch a legal challenge. The National Employers’ Association of SA (Neasa) and Sakeliga have already taken similar action. However, their attempt to get an immediate interdict against the targets was dismissed by the Pretoria High Court last month. Judge Graham Moshoana ruled that the court could not pre-emptively decide on the lawfulness of the targets at an interim stage.

Busa’s approach is different. Instead of seeking an urgent interdict, they are applying for a full judicial review, asking the court to thoroughly examine the process and ultimately set the targets aside as “irrational and arbitrary.”

This legal battle is more than a technical dispute over procedure. It’s a high-stakes debate about how South Africa navigates its transformation journey. For the government, the targets are a necessary tool to drive change. For much of the business community, a flawed process risks undermining the very goal of building a sustainable and truly inclusive economy. The Labour Court’s decision will have profound implications for every medium and large employer in the country.

{Source: MoneyWeb}

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