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Employment and Occupational Equity: Policy proposals

Foreword
Glossary of Abbreviations
Summary
Chapter 1. Introduction
Chapter 2. Employment equity in context (1): Inequalities in income and status
Chapter 3. Employment equity in context (2): Factors leading to inequality in employment
Chapter 4. Proposed measures for employment equity
Chapter 5. The institutional framework
Annexure (Acknowledgements)
Footnotes

GREEN PAPER: POLICY PROPOSALS FOR A NEW EMPLOYMENT AND OCCUPATIONAL EQUITY STATUTE

(PLEASE NOTE! FOOTNOTES APPEAR AT END OF DOCUMENT)

1. The Minister of Labour requested the Department of Labour: Directorate Equal Opportunities to draft a Green Paper identifying policy proposals for inclusion in a new Employment and Occupational Equity Statute.
2. These proposals are hereby published by the Minister of Labour in the Schedule hereto for general information, public comment and discussion at the National Economic, Development and Labour Council.
3. 1. All interested parties are invited to submit written comments on the draft policy proposals.
   2. Such comments should be addressed to the Director-General: Labour, Private Bag X117, Pretoria, 0001, for attention Mr J. T. Crouse at Fax number (012) 320-0799.
   3. Comments should reach the office of the Director-General by not later than 31 August 1996.
   4. The name, telephone number or fax number and address of a person who may be contacted in regard to the comments should also be stated clearly.

4. The comments will be considered by the Department of Labour and will also be submitted to the National Economic, Development and Labour Council for consideration.
5. An Employment and Occupational Equity Bill will then be drafted and placed before the aforementioned Council for deliberation.

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The Department of Labour is publishing a Green Paper entitled "Employment and Occupational Equity".

Eradicating all forms of discrimination in the labour market is one of the fundamental objectives of the Government. This is demanded by the constitution and is an integral part of processes that would help achieve social justice in South Africa.

The Department of Labour has been working on this issue for about a year now. The policy formulation process has now reached a point where an Employment Equity Bill could be drafted and submitted for consideration by Cabinet.

The proposed Employment Equity Bill will become part of the laws initiated by Government to eradicate discrimination. In itself the Bill will be the first intervention to do away with all forms of discrimination in occupation and employment. Since there is no previous statute of this nature and complexity, that the Department of Labour has drawn up or administered before, it was vital that we consult extensively as well as solicit expertise from persons outside the Department.

The Green Paper makes proposals of key policy considerations that have to go into the Employment Equity Bill. These proposals are made in the context of South Africa's social and economic development. The provisions of the ILO Convention Ill that could be integrated into policy formulation processes in order to ensure that South Africa meets her obligations in this branch of International Labour Standards, have also been considered in drafting this Green Paper.

The Department, having taken these matters into consideration, now publishes this Green Paper to allow members of the public to participate further in this debate. The comments received from the public will be analysed and then taken into account in the next stage of this process, namely, preparing a draft Bill. The Green Paper has already been tabled before Cabinet. It shall also be the subject of negotiations by the members of NEDLAC and will be scrutinised by other government agencies.

The proposals have been presented in a manner that we hope is easy to read. We take this opportunity to express our hope that the public will take advantage of participating in this important aspect of labour policy.

T T Mboweni (MP)
Minister of Labour

Glossary of Abbreviations

AAPDF Affirmative Action Policy Development Forum

CCMA Commission for Conciliation, Mediation and Arbitration

CSS Central Statistical Services

EEAC Employment Equity Advisory Council

HRD Human Resource Development

LIFO Last In, First Out

LRA Labour Relations Act No 66 of 1995

NEDLAC National Economic Development and Labour Council

SAQA South African Qualifications Authority

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SUMMARY

1. What is employment equity?

1.2 The work of the Comprehensive Labour Market Commission shall also inform the final proposals that will form part of the Bill. The terms of reference of the Commission include proposals for "mechanisms aimed at redressing discrimination in the labour market."

1.3 The need for policies on employment equity arises, in the first place, from recognition of continuing inequalities associated with past discrimination, associated primarily with race and gender.

1.4 Given these inequalities, measures to achieve employment equity necessarily reflect an analysis of the nature and extent of discrimination in the workplace, and its relationship to past discrimination outside the labour market.

1.5 Employment equity centres on: 1.5.1 eradication of unfair discrimination of any kind in hiring, promotion, training, pay, benefits and retrenchment, in line with Constitutional requirements. The government will give individuals easier access to remedies.

1.5.2 measures to encourage employers to undertake organisational transformation to remove unjustified barriers to employment for all South Africans, and to accelerate training and promotion for individuals from historically disadvantaged groups.

1.6 Employment equity does not provide a panacea for all the evils of past discriminatory policies. To succeed, it could form part of a broad complex of measures that enhance overall social and economic equality in ways that support productivity, democracy and diversity.

2. Employment equity in the context to fine qualities in income and status

2.1 Policies aimed at promoting employment equity gain their urgency from the deep inequalities that rend our society. Income distribution in South Africa is among the most unequal in the world.

2.1.1 An unusually small share of the national income goes to the majority of the population. Black people are clustered at the bottom while most whites appear at higher income levels.

2.1.2 The inequalities associated with race and gender, and some social and economic implications are examined though several illustrations in tables and statistics.

2.1.3 The data indicate deep-seated inequalities in income and occupational status that line up with race and gender. These inequalities have imposed heavy burdens on society, the economy, and individuals.

2.2 Measures for employment equity will contribute to alleviating inequalities only as part of a broader strategy of reconstruction and development.

2.3 Inequalities in race and gender do not arise solely or even primarily from discrimination in employment. The overall distribution of income is highly unequal.

2.4 For this reason, the measures discussed here aim to encourage equity in the workplace in ways that help improve the overall distribution of income while fostering a more productive economy.

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3. Employment equity in the context of factors leading to inequalities in employment

3.1 Measures to ensure that employment equity forms part of an overall strategy to overcome disadvantage are also explored. The proposals put forward examine factors that contribute to discrimination and disadvantage in employment and how the situation could be rectified.

3.2 The approach taken, combines anti-discrimination measures to protect individuals with measures to encourage institutional and cultural change by employing organisations.

3.3 Given this deeper transformation, accelerated training and promotion for individuals from historically disadvantaged groups can achieve success.

3.4 In short, policies aimed at fostering equity in employment could form part of a much broader effort to reduce inequalities while fostering greater productivity and economic growth. In that context, employment equity will centre on:

3.4.1 procedures to eliminate lingering discrimination in decision-making about employees' careers, pay and benefits,

3.4.2 restructuring of work organisation to promote diversity,

3.4.3 reducing the barriers to historically disadvantaged groups,

3.4.4 the transformation of workplace culture and procedures, through measures, in order to accelerate the training and promotion of people from historically disadvantaged groups.

4. Measures for effecting employment equity

4.1 Some of the proposals made on the scope and application of the measures are as follows;

4.1.1 prohibition of harassment on the job;

4.1.2 procedures for decision-making about employees;

4.1.3 ways to reorganise work and training to reduce barriers to entry and, in that context

4.1.4 to accelerate the hiring, training and promotion of people from historically disadvantaged groups,

4.1.5 A final section discusses employers' and employees' responsibilities in drawing up, monitoring and reporting on employment equity plans.

4.2 The extent of obligations on employing organisations will depend primarily on their size and current practices, of which details shall be spelt out by the policy guidelines emanating from the Department of Labour.

4.3 All employers will provide some key data on employment on a regular basis.

4.4 All employers will have to undertake procedures to prevent discriminatory decision-making about employees, ensure equal pay and benefits for equal work, and ban discriminatory harassment.

4.5 Larger employers will have to submit employment equity plans for approval by the Minister of Labour. Smaller employers may have to submit plans, if requested by employees or other stakeholders, or to gain certification to gain government subsidies or tendering rights.

4.6 Employers with plans should have a legal obligation to carry them out, and to report on their implementation.

4.7 Larger employers will have to establish appropriate systems for internal appeals and grievances against discriminatory behaviour or harassment,

4.8 Employers will have to consult on employment equity measures, including the audit and plan, with employers and possibly other important stakeholders.

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5. Institutional framework and enforcement mechanisms

5.1 The institutions charged with supporting efforts by employing organisations, monitoring progress, and resolving disputes are explored. Sanctions and incentives available for enforcement are then reviewed.

5.2 Employment equity measures will try to strike a positive balance between strict administrative processes and a concerted effort by the Department of Labour to build positive relations among the affected parties.

5.3 The government should;

5.3.1 create an enabling environment to protect individuals from discrimination;

5.3.2 provide advice and support to employers in transforming the work organisation and culture to promote equity;

5.3.3 monitor progress in improving equity in employment overall;

5.3.4 foster the resolution of disputes about institutional transformation; and

5.3.5 enforce planning requirements where desirable.

5.4 In the absence of established standards and programmes, the Department shall adopt an incremental approach in implementing the statute. The relevant enforcement mechanisms and institutional remedies will have to evolve over time towards established benchmarks for good practice and performance.

Chapter 1. INTRODUCTION

1.1. What is employment equity?

1.1.1 This Green Paper outlines proposals on employment equity as the basis for further discussion and refinement. Our proposals aim to help redress disadvantages emanating from past racial policies and, as far as possible, to ensure the accommodation of differences between people in the workplace.

1.1.2 We must change the structures and procedures that reproduce and reinforce old prejudices, and bring into being a new culture of diversity at work. The creation of this new culture will have to be a conscious process that pulls in all economic sectors and stakeholders.

1.1.3 The government is committed to positive measures to overcome the legacy of discrimination and disadvantage inherited from the previous order of state and society. Under the apartheid system, a series of laws built discrimination into the political and social order of the day, entrenching them in all spheres of life, including the workplace.

1.1.4 The repeal of these discriminatory laws will not, by itself, end the disadvantages which they generated. Social and economic forces have taken their place in perpetuating that order. In these circumstances, government must embark on programmes to foster equality, which include measures for employment equity.

1.1.5 Employment equity centres on:

1.1.5.1 A ban on unfair discrimination of any kind in hiring, promotion, training, pay, benefits and retrenchment, in line with Constitutional requirements. The government will give individuals easier access to remedies.

1.1.5.2 Measures to encourage employers to undertake organisational transformation to remove unjustified barriers to employment for all South Africans, and to accelerate training and promotion for individuals from historically disadvantaged groups.

1.1.6 To achieve these ends,

1.1.6.1 Employers must set up non-discriminatory procedures for hiring, promotion, remuneration, selection for training and retrenchment, primarily by communicating possibilities more evenly and by establishing clear, justified criteria for the relevant decisions;

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1.1.6.2 In consultation with employees and other stakeholders, employers should develop an Employment Equity Plan that;

a) lays out measures to reduce barriers to historically disadvantaged groups;

b) accelerates training and promotion for people from historically disadvantaged communities; and

c) provides key indicators of success in ensuring equity.

1.1.6.3 All employers will report on employment and training in terms of race and gender, so that society can monitor the success of these policies in transforming employment.

1.1.7 The proposals for employment equity centre

1.1.7.1 on anti-discrimination measures, which will apply without exception, and

1.1.7.2 on the development of plans by the organisations affected. The planning process lets employers, in consultation with major stakeholders, address their particular constraints.

1.1.8 Government will develop programmes to support and monitor progress, and will intervene to protect individuals from discrimination in the workplace. It will build on the provisions of the 1995 Labour Relations Act as well as new policy initiatives aimed at expanding human resource development.

1.1.9 Employment equity does not provide a panacea for all the evils of past discriminatory policies. To succeed, it must form part of a broad complex of measures that enhance overall social and economic equality in ways that support productivity, democracy and diversity.

These measures include the new framework for training, improvements in education, a dramatic upgrading of infrastructure in historically disadvantaged communities, reconstruction of the economy to support expanded employment and self-employment, and enhanced multilingualism.

1.2. The policy formulation process

1.2.1 The Green Paper has been prepared by the Directorate: Equal Opportunities within the Department of Labour. It was drafted by a team of experts on the basis of extensive consultation with stakeholders.

1.2.2 On March 3, 1995, the Minister of Labour established the Affirmative Action Policy Development Forum (AAPDF) as a non-statutory advisory forum. The AAPDF brought together organised business, organised labour, women, youth, representatives of disabled people, government officials and researchers to debate key aspects of employment equity in an informal environment. It concluded its work on February 22, 1996, after establishing the drafting team to prepare this document.

1.2.3 The work of the Comprehensive Labour Market Commission will also inform our proposals. The terms of reference of the Commission include the development of proposals for "mechanisms aimed at redressing discrimination in the labour market."

1.2.4 Following discussion of this Green Paper with stakeholders both outside and inside the government, the Department of Labour will provide more definitive proposals through a White Paper on Employment Equity.

1.3 Areas of focus

1.3.1 Policies on employment equity start from the recognition of inequalities arising out of past discrimination, mostly on the basis of race and gender. Chapter Two briefly reviews disparities in income and occupational status, drawing primarily on the CSS October Household Survey for 1994.

1.3.2 Given these inequalities, measures to achieve employment equity necessarily reflect an analysis of the nature and extent of discrimination in the workplace, and its relationship to disadvantages outside the labour market. Chapter Three locates labour-market discrimination in the context of broader inequalities, and analyses where discrimination occurs in labour-market processes, On this basis, it describes the major thrusts of our proposals.

1.3.3 Chapter Four outlines the requirements an employment equity policy places on employers and employees.

1.3.4 Chapter Five reviews the institutional framework required to enforce, monitor and evaluate outcomes of employment equity policies. It stresses the role of the Commission for Conciliation, Mediation and Arbitration (CCMA) in avoiding unnecessarily antagonistic solutions, and the importance of supporting change through a variety of sanctions and incentives. It also proposes an Employment Equity Advisory Council to advise the Minister on improvements in relevant policies.

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Chapter 2 EMPLOYMENT EQUITY IN CONTEXT (1): INEQUALITIES IN INCOME AND STATUS

2.1. Introduction

2.1.1 Policies aimed at employment equity gain their urgency from the deep inequalities that rend our society. Income distribution in South Africa ranks among the most unequal in the world. An unusually small share of the national income goes to the majority of the population.

In that context, Black' people, and especially Black women, are clustered at the bottom, while most Whites appear at higher income levels.

2.1.2 This chapter discusses the inequalities associated with race and gender, and some social and economic implications. Chapter Three then explores the place of employment equity in a larger strategy to address them.

2.2. Inequalities in income and status related to race and gender

2.2.1 In South Africa, differences in income and status in the economy go hand in hand with race and gender. Generally, the data show that substantial inequalities still exist between Blacks and Whites and men and women, even when they have similar occupational status and education.

2.2.2 The figures underscore the need to define inequalities, not in terms of race or gender, but in terms of how race and gender work together. Effective policies cannot simply apply sweeping measures to all Black people or all women. Rather, we must first define the nature of inequalities faced by different groups, and the extent to which these inequalities arise within the labour market. Only then can successful measures on employment equity emerge.

2.2.3 The Appendix to this chapter provides data from the 1994 October Household Survey on incomes and occupational status by race and gender. The discussion here only identifies the key trends that emerge from these tables.

2.2.4 Table 1 (page 17) outlines differences in access to employment by race and gender. It underlines the fact that Black people, and especially Black women, are much worse off than Whites. Close to half of Black women were unemployed, compared to a quarter of Black men - and under 5 per cent of Whites.' African women alone make up one in five employees, but one in two unemployed people. In contrast, White men make up one in seven employees, but less than one in a hundred of the unemployed.

2.2.5 Table 2 indicates incomes for employed and self-employed people by race and gender. Almost one in three African employees earned less than R500 a month, compared to less than one in twenty Whites. A third of Black people earned under R500 a month, compared to under 5 per cent of Whites. Disparities emerged even within occupational categories. Thus, in top management, only half of Black people earned more than R2000 a month, compared to three quarters of Whites. Among unskilled workers, about 2 per cent of Black people earned over R2000 a month, compared to over half of White men and a quarter of White women.

2.2.6 Differences in income proved even more extreme for self-employed people. Over a third of African women were self employed, and two thirds earned under R500 a month. In contrast, a fifth of White men were self employed, and 3 their incomes averaged over R15000 a month.

2.2.7 Table 3 (page 20) indicates the extent to which race and gender define occupation and status. A White man was 5000 times as likely to be in top management as an African woman. Generally, Whites were heavily over-represented in the professions and management, and virtually none were elementary workers. White women dominated in secretarial work. Black women were most heavily over-represented among self-employed elementary workers and the unemployed. Black men were over-represented only among shop floor workers.

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2.3. Disability and inequality

The data do not permit a comparable analysis of the relationship between disability, income and status. Estimates suggest that 5 per cent to 12 per cent of the population are moderately to severely disabled.

Only one in five disabled people is economically active, and only one in a hundred severely disabled people has a job on the open labour market. The vast majority of the disabled must depend on social pensions and family support, rather than earned income.

2.4. The impact of inequality

2.4.1 Massive inequalities in income and status affect social cohesion, undermine efficiency and economic growth, and have a devastating impact on families and individuals. This section briefly explores some of the implications.

2.4.2 Clearly, South Africa cannot sustain inequalities related to race and gender at the level it currently suffers. They contribute to high levels of social unrest and crime, which undermine growth and development.

2.4.3 Extreme inequalities also affect the economy directly. They are associated with inefficiencies in the labour market and consequently throughout the economy. In addition, they have prevented the growth of the middle class, which has stunted domestic demand and human resource development.

2.4.4 Apartheid policies led to allocative and technical inefficiency. They marginalised large sections of the labour force, preventing them from engaging in directly productive and sustainable economic activities either as employees or as self-employed individuals. This is a plain waste of resources.

2.4.5 Apartheid policies also artificially reduced the cost of the labour of the majority, and increased the cost of employing a favoured minority. As a result, employers faced higher costs for skilled and supervisory workers, while they had little incentive to improve the productivity of unskilled labour. Since employers could not easily substitute for high-cost, often poor quality protected labour, they endured substantial inefficiency at the microeconomic level.

2.4.6 Consistent inequalities in incomes by race and gender were associated with an unusually skew distribution of income, as the table below illustrates. As a result, poverty and inequality in South Africa prove worse than in most Third World countries at a similar level of productivity.

2.4.7 The middle 60 per cent of South Africans received substantially less than the norm for Third World countries, and far less than in the newly industrialising economies. This compression of the middle class limits the potential for balanced economic growth and social development.

Income shares in South Africa compared to selected newly industrialising countries 

Share of income going to:
	poorest 20%	second 20%	third 20%	fourth 20%	richest 20%
South Africa	3%	6%	10%	18%	63%
South Korea	7	12	16	22	42
Thailand	6	9	14	22	50
Singapore	5	10	15	22	49
Malaysia	5	8	13	20	53
Indonesia	9	12	16	21	42

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Source: World Bank, World Development Report 1995

2.4.8 In short, the apartheid legacy distorts resource allocation in the labour market, the way in which capital and labour are combined, the relative costs of inputs, the structure of production and consumption and the levels of savings and investment in the economy. The costs to society and to individuals remain uncountable.

2.5. The implications for employment equity

2.5.1 The data indicate that deep-seated inequalities in income and occupational status line up with race and gender. These inequalities have imposed heavy burdens on society, the economy, and individuals.

2.5.2 Measures for employment equity will contribute to alleviating inequalities only as part of a broader strategy of reconstruction and development. For one thing, inequalities in race and gender do not arise solely or even primarily because of discrimination in employment. For another, the overall distribution of income is highly unequal. For this reason, the measures discussed here aim to encourage equity in the workplace in ways that help improve the overall distribution of income while fostering a more productive economy.

2.5.3 Chapter three locates employment equity in the overall development strategy. It then discusses how the proposals here address factors that contribute to discrimination and disadvantage in employment.

INEQUALITIES IN INCOME AND STATUS, BY RACE AND GENDER

TABLE 1.

ACCESS TO EMPLOYMENT BY RACE AND GENDER, 1994

(Table 1 continue)

Source: Calculated from, CSS, October Household Survey 1994

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TABLE 2.

INCOMES BY RACE AND GENDER FOR SELECTED OCCUPATIONS, 1994

(Table 2 contitnue)

	of which: included in black
status in labour force	coloured men	african women	african men	white women	white men
% of employment of group: total employees	95%	65%	93%	90%	80%
- R0-R499	19%	30%	30%	4%	2%
- R500-R999	24%	27%	26%	2%	7%
- R1000-R1999	37%	32%	32%	38%	2%
- over R2000	15%	12%	12%	43%	47%
% of employment of group: top management	2%	0%	1%	4%	11%
- R0-R499	7%	17%	7%	0%	1%
- R500-R999	5%	9%	15%	9%	1%
- R1000-R1999	47%	30%	27%	23%	11%
- over R2000	41%	43%	50%	67%	89%
% of employment of group: professionals	3%	7%	4%	11%	8%
- R0-R499	1%	2%	3%	1%	1%
- R500-R999	6%	9%	5%	6%	4%
- R1000-R1999	29%	49%	32%	26%	13%
- over R2000	63%	41%	59%	67%	82%
% of employment of group: clerks	8%	8%	6%	44%	9%
- R0-R499	2%	11%	5%	3%	2%
- R500-R999	18%	29%	20%	18%	10%
- R1000-R1999	55%	49%	55%	45%	33%
- over R2000	25%	12%	21%	34%	56%
% of employment of group: artisans and related occupations	20%	3%	12%	1%	21%
- R0-R499	6%	33%	15%	13%	2%
- R500-R999	25%	34%	35%	15%	8%
- R1000-R1999	46%	27%	39%	16%	28%
- over R2000	23%	6%	11%	56%	63%
% of employment of group: operators and assemblers	14%	4%	20%	1%	6%
- R0-R499	9%	23%	18%	8%	3%
- R500-R999	27%	33%	27%	33%	9%
- R1000-R1999	53%	39%	43%	41%	36%
- over R2000	11%	5%	12%	17%	52%
% of employment of group: elementary workers	31%	22%	34%	1%	2%
- R0-R499	42%	57%	57%	5%	14%
- R500-R999	30%	31%	25%	16%	19%
- R1000-R1999	26%	11%	16%	23%	41%
- over R2000	2%	1%	2%	56%	27%
% of employment of group: employers and workers on own account	5%	35%	7%	10%	20%
- R0-R499	12%	69%	29%	17%	6%
- R500-R999	15%	21%	16%	15%	4%
- R1000-R1999	26%	6%	24%	16%	9%
- over R2000	47%	4%	31%	51%	82%
% of employment of group: top management	1%	2%	2%	2%	6%
- R0-R499	3%	25%	14%	9%	3%
- R500-R999	3%	18%	7%	5%	1%
- R1000-R1999	16%	20%	23%	9%	5%
- over R2000	78%	37%	56%	77%	91%
% of employment of group: elementary workers	1%	30%	2%	0%	0%
- R0-R499	32%	74%	20%	0%	6%
- R500-R999	28%	20%	17%	59%	0%
- R1000-R1999	20%	5%	24%	0%	16%
- over R2000	20%	1%	7%	41%	78%

Source: Calculated from, CSS, October Household Survey 1994.

a. Employment in occupation as a % of employment plus self-employment of group * under 0,5 %

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TABLE 3.

INDEX OF REPRESENTIVITY IN SELECTED OCCUPATIONS BY RACE AND GENDER, ROUNDED TO NEAREST 5 POINTS, 1994

Note: 100 = proportional to participation in labour force; over 100 means relative over representation, under 100 means relative under representation of which: included wider black population:

(Table 3 continue)

Source: Calculated from, CSS, October Household Survey 1994.

The index consists of the group's percentage share in each Occupation divided by the group's percentage share in the economically active population. These figures understate the poor representation of African women in higher-level positions, since African women were most Underrepresented in the economically active population.

* under 2,5

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Chapter 3 EMPLOYMENT EQUITY IN CONTEXT (2): FACTORS LEADING TO INEQUALITY IN EMPLOYMENT

3.1. Introduction

3.1.1 In discussing the obstacles to employment equity, we distinguish between factors that arise inside and outside the labour market.

3.1.1.1 Non-labour-market factors contributing to inequality include disparities in education, housing and household infrastructure, responsibility for housework and childcare, and how close living areas are to work.

3.1.1.2 Labour-market factors include discrimination in hiring, training, promotion and retrenchment, and unnecessary hindrances perpetuated by the way in which work and training are organised.

3.1.2 This chapter first reviews the major factors leading to inequality, and outlines government policies that address these issues. It then considers where discrimination can creep into the workplace, and reviews options for addressing the problem.

3.1.3 The analysis here indicates that measures to foster employment equity must address both discrimination in decision-making about persons' careers and remuneration, and the organisation of work and training.

In such a context, policies to accelerate training and promotion to accelerate the attainment of representivity seem more likely to succeed.

3.2. Inequality inside and outside the labour market

3.2.1 Diagram 1illustrates the position of the labour market in reinforcing inequality. Historically, discrimination occurred within the labour market itself. In addition, a panoply of laws, regulations and policies ensured the disadvantage of the majority of South Africans.

3.2.2 Outside the labour market, critical factors reinforcing inequality include the history of unequal education and training, disparities in the ownership of assets, the unequal division of household labour, especially in communities with poor infrastructure, and regional backlogs. Our strategy to secure social and economic equality must therefore reach far beyond employment equity.

3.2.3 The years of separate and unequal education mean that most Africans bring relatively weak formal qualifications to the labour market. On average, according to the October Household Survey for 1994, Africans had half the years of education of Whites, with slightly lower figures for African women. The average White person had completed secondary school; the average African had five years of education.

3.2.4 The education gap narrows substantially for younger cohorts of the population. Thus, for Africans aged 25 to 29, only a tenth had under five years of education, compared to half of those aged 60 to 64.

Still, with equalisation in spending per pupil expected to arrive only well after the turn of the century, a considerable racial gap in education will persist for the foreseeable future.

3.2.5 While more Africans have acquired some secondary education, the pool of highly qualified people remains disproportionately White. According to the 1994 October Household Survey, in the population as a whole White men made up over 30 per cent of all people with post-high school qualifications, and White women compromise almost 25 per cent. Men and women Africans together made up only 40 per cent.

3.2.6 A peculiarly South Africa problem emerges from the history of separate school systems. Employers cannot easily assess the value of education in the historically Black system, which combined rigorous selection methods with obsolete and under-resourced teaching conditions. The lack of reliable information on different,school systems forms a market failure.

3.2.7 Separate school systems also fostered the use of different languages according to ethnic group. In lower-level jobs, by insisting on European-based languages, employers may effectively exclude Africans.

3.2.8 The highly unequal distribution of assets contributes to differences in incomes along race and gender lines. Apartheid prevented Africans from owning land. It limited the access of Black people, and especially Black women, to loans, markets and infrastructure, making capital accumulation difficult.

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3.2.9 Unfortunately, no definitive evidence exists on the ownership of assets by race, gender or class. Estimates suggest that Whites own over nine tenths of all assets in South Africa. Moreover, according to the October Household Survey, interest payments formed the largest non-wage share of income for Whites; for Africans, the largest source of non-wage income was old-age pensions.

3.2.10 The figures on income from self employment (see Table 2 in the Appendix to Chapter Two) underline the consequences of unequal access to assets. Both African women and White men are disproportionately self-employed. But for African women, self-employment forms a poorly paid survival strategy. In contrast, self-employed White men are mostly managers and professionals, able to use their assets and formal qualifications to generate high incomes.

3.2.11 Women typically face the burden of unpaid household labour in addition to income-generating work. A rigid organisation of work may prevent them from performing well, since they must take time off for child care and other family responsibilities. For many women, household responsibilities leave no time for paid employment at all.

In most countries, remedying gender imbalances has meant restructuring work organisation to give greater flexibility in balancing paid work against caring responsibilities.

3.2.12 In historically African areas, very poor levels of household infrastructure multiply the time needed for household chores. In 1994, only 8 per cent of Africans had running water at home. Half of African families had to fetch water from over 200 metres away, and half cooked on wood or paraffin. Still, even if they have paid employment, most African women cannot afford paid domestic help,

3.2.13 Finally, spatial differences coincide with racial and gender disparities.

3.2.13.1 Apartheid pushed millions of Africans, and especially African women, into areas with little investment or infrastructure. Today, provinces that include the former homelands - especially the Eastern Cape and Northern Province - are by far the poorest. The provincial income per capita in these provinces lies at about a tenth that of Gauteng and the Western Cape. Their populations are under 5 per cent White and over 55 per cent women. In contrast, over a quarter of the population of Gauteng and the Western Cape is White, and the gender distribution is slightly skewed toward men.

3.2.13.2 Even in the former "White" territories, laws kept most Black communities on the fringes of the urban areas, As a result, they remain distant from many work opportunities, which imposes high costs for transport in terms of both money and time. For women in particular, commuting both adds to the burdens of household and family responsibilities, and may cause danger if they must travel in the dark.

3.2.14 In short, many conditions outside the labour market contribute to inequalities along race and gender lines. These factors interact with labour-market discrimination in a variety of ways. Disadvantage in the labour market makes it harder for workers and their families to overcome other disadvantages shaped by apartheid, such as poor schools and distance from work. And labour-market disadvantages often arise because employers do not make allowance for the circumstances of the majority of the population.

3.2.15 The breadth of factors that contribute to inequality underlines the need for measures that go beyond the labour market. To have a significant impact on inequalities, employment equity measures will be coordinated with

3.2.15.1 strategies to transform education and training;

3.2.15.2 restructure the economy to improve productivity and employment creation; and

3.2.15.3 greatly improve basic household infrastructure in historically disadvantaged communities.

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3.3. Inequalities in the labour market

3.3.1 While conditions outside the labour market remain highly unequal, we in income and status related to race and gender emerge even when people have the same jobs, occupations or education. Training remains particularly skewed, further perpetuating inequalities both inside and outside of employment.

3.3.2 Private surveys estimate that Whites earn between 5 and 10 per cent more than Africans in virtually identical jobs. Moreover, lingering discrimination in the selection of people for training and in promotions means that White men generally enjoy a far more rapid rise than other people.

3.3.3 The impact of discrimination also emerges from disparities in earnings by race and gender, even in groups with the same qualifications and occupations. As the table below shows, Black people, and especially Black women, earn considerably less than Whites with the same formal education.

3.3.4 Similarly, African men and women have only marginal differences in total educational achievement. But African women face higher unemployment rates and lower incomes than African men.

Education and income by race and gender, 1994 (mean earnings as a percentage of those of average African man at the same educational level)