{"id":705229,"date":"2023-07-19T14:40:58","date_gmt":"2023-07-19T12:40:58","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=705229"},"modified":"2023-07-19T14:42:00","modified_gmt":"2023-07-19T12:42:00","slug":"businesses-face-crisis-due-to-governments-disturbing-new-policies-pnp-chair","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/705229\/businesses-face-crisis-due-to-governments-disturbing-new-policies-pnp-chair\/","title":{"rendered":"Businesses face crisis over government’s ‘disturbing’ new policies: PnP chair"},"content":{"rendered":"\n

Pick n Pay chairperson Gareth Ackerman says that it has been difficult to feel positive about South Africa “for a long time now”, and recent policy moves from the government have not helped at all.<\/p>\n\n\n\n

Speaking in the opening address of the retailer’s Annual General Meeting, Ackerman said that two new policy shifts from the government have heavily leaned into racial politicking that will have far-reaching and damaging consequences for businesses in the country.<\/p>\n\n\n\n

This, on top of all the other issues companies have had to contend with.<\/p>\n\n\n\n

“Rolling blackouts, surging crime and criminal cartels, the breakdown of the country\u2019s logistics capacity, the burning of trucks, and a diplomatic stand-off with our biggest trading partners have quelled any thoughts of an early economic revival. <\/p>\n\n\n\n

“To add to this, there have been recent government policy and legislative changes, which are particularly concerning. I am clearly not alone in finding these developments disturbing,” he said.<\/p>\n\n\n\n

The first policy shift is the Employment Equity Amendment Act, which Ackerman said threatens private employers if they fail to employ a workforce mirroring racial demographics<\/a>.<\/p>\n\n\n\n

This would have the effect of making large numbers of qualified people unemployed and substituting them with unqualified people, he said.<\/p>\n\n\n

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Pick n Pay chairperson, Gareth Ackerman<\/figcaption><\/figure><\/div>\n\n\n

“It is very probably unconstitutional<\/strong>, and could ruin many productive companies and foreign investments on which the economy depends,” he said.<\/p>\n\n\n\n

Ackerman’s comments mirror the backlash these new laws have received – despite assurances from the government that jobs are not on the line, and that the new BEE laws are not quotas.<\/p>\n\n\n\n

The government and one of the most vocal critics of the new laws – trade union Solidarity – even signed a “settlement agreement<\/a>” on the matter, where the Department of Employment and Labour seemingly agreed to ensure that race was not the only factor at play in the new laws. Legal experts called the agreement a waste of time<\/a>.<\/p>\n\n\n\n

According to Ackerman, the EEA amendments are ‘behind the times’ and try to force business – by decree – to do what they are already trying to accomplish.<\/p>\n\n\n\n

“Not because they\u2019ve been instructed to do so, but because of the growing recognition that a diverse workforce and leadership is a strategic asset. This is the very foundation of ESG principles that most companies are following with vigour and energy,” he said.<\/p>\n\n\n\n

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South Africa’s new BEE targets – the massive dilemma for businesses<\/a><\/blockquote>