South Africa’s Democratic Alliance (DA), the country’s main opposition party, is challenging a new law that sets racial and gender targets for hiring in big companies. The law, called the Employment Equity Amendment Act, took effect in January and aims to reduce the deep economic inequalities left by apartheid — a time when a white minority ruled and non-white South Africans were heavily disadvantaged.
Reports point out that the government under the new rules, can decide how many non-white people and women should be in top jobs within different industries. The law applies only to companies with more than 50 workers.
The DA, which is the second-biggest party in South Africa after the ruling African National Congress (ANC), believes the law is unfair and possibly unconstitutional. They’re taking the matter to court, saying it will hurt the economy by scaring away investors and limiting business growth.
DA leader, Helen Zille said that companies might avoid hiring more people just to stay under the 50-employee limit and escape the rules. She also argued that the law could increase unemployment and slow down economic growth.
This legal fight is creating tension between the DA and the ANC, especially as both are involved in coalition talks.
