The draft employment equity bill released by the labour minister proposes that companies with more than 150 employees must hire their senior management and professional staff on the basis of national demographics of population groups.
In the province of KwaZulu-Natal, where the majority of South Africa's 1.4 million Indian-origin citizens reside, business and community leaders decried the proposal, which would effectively reduce the number of jobs available to Indians as the national demographic population figure would be overwhelmingly black.
Even Indian members of the ruling African National Congress objected to the proposal.
Ravi Pillay, provincial minister for Human Settlements and Public Works in the KwaZulu-Natal provincial government, said in a submission to the Minister of Labour that regional and not national demographic figures had to be used to ensure equity because while Indians were 2.5 per cent of the population nationally, in KwaZulu-Natal they made up seven per cent.
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"Our concentration in KwaZulu-Natal is due to the vagaries of history," Pillay wrote in a reference to the fact that most Indians first arrived in that province from 1860 onwards as indentured labourers for the sugar cane plantations before moving to other areas of the country.
An Indian businessman based in KwaZulu-Natal, Vivian Reddy said Indians were unfairly and unjustly being prejudiced by the proposed law.
Reddy said he would take the matter up with the Minister of Labour and even President Jacob Zuma if necessary.
While the provincial business sector generally reacted angrily to the proposal, South African Chamber of Commerce and Industry chief executive Neren Rau was more cautious in condemning the bill, indicating that more clarity was needed on whether the bill was unintended to be compulsory for implementation by the sector or just a recommendation.