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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Amended Codes of Good Practice (2017)

Amended Code Series CSC300: Measurement of the Management Control Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC300: The General Principles for Measuring Skills Development

Annexe CSC300 (D) : Example for Determining Compliance Target

 

1.        EXAMPLE FOR DETERMINING COMPLIANCE TARGET FOR PARAGRAPH 2.1.2.1 OF THE SKILLS DEVELOPMENT SCORECARDPARAGRAPH 2.1.2.1 OF THE SKILLS DEVELOPMENT SCORECARD

 

1.1 The example below illustrates how the compliance Target is determined with respect to the African people indicator of the Skills Development Scorecard (par. 2.1.2.1):

 

Step 1: Determine the profile of the overall national EAP distribution* per race and gender as per the CEE Report

CEE Report

 

 

African

Male

Coloured

Male

Indian

Male

White

Male

African

Female

Coloured

Female

Indian

Female

White

Female

 

Total

National EAP distribution by race

and gender as per CEE Report

40.70%

5.80%

1.90%

6.40%

34.20%

5.00%

1.10%

4.90%

100%

*In this example the overall national EAP statistics are used. It could just as well have been the overall provincial EAP statistics if the Measured entity selected so in terms of paragraph 1.3 below.

 

Step 2: Calculate the total African people component of the EAP as per the CEE Report in step 1

 

 

African

Male

African

Female

African

People

Component

African People component of national EAP

40.70%

34.20%

74.9%

 

1.2 Using the above EAP statitistics the compliance Target for paragraph 2.1.2.1 of the Skills Development Scorecard would therefore have been 74.9%.

 

1.3 Measured Entities will not all have a national footprint and may, for example, conduct the majority of their business operations within a province where the racial and gender composition of the EAP are significantly different to that of the overall national EAP. To make provision for these provincial distortions from the overall national EAP, Measured Entities will have an election to make use of either the overall national or overall provincial EAP statistics of a particular province when they calculate the proportion that African people contribute to the EAP.

 

1.4 A Measured Entity electing to use the overall provincial EAP of a particular province must use the overall provincial EAP of the province the majority of its Employees are from.

 

1.5 The word ‘overall’ as used above in relation to ‘national’ or ‘provincial’ EAP statistics refers to the EAP of the labour force as a whole, whether nationally or for a particular province, whichever the case may be. Therefore, even though the Commissioner for Employment Equity Report also reports on the EAP breakdown nationally and provincially per Senior, Middle and Junior management the term ‘overall’ is used to indicate that this further breakdown per employment category, should not be used.