The labour department on Friday launched court action against Huawei Technologies South Africa because the company employs more foreign nationals than locals.
“Due to non-compliance with employment equity policy, the Department of Employment and Labour filed papers in court today, February 11, 2022, against Huawei Technologies South Africa,” said a statement from the department attributed to Petunia Lessing, the acting chief director, communication.
The department said Huawei Technologies South Africa was audited in 2020 and found to be non-compliant in that they employ about 90% foreign nationals, which violates the Employment Equity Policy (EAP).
“Huawei’s legal department contacted the department in an attempt to reach an amicable resolution,” said the statement.
“When asked about the 90 percent foreign national employment, the legal person stated that Huawei was granted permission by the Department of Home Affairs to employ the number of foreign nationals they do.”
The department said it checked with home affairs if it “had granted Huawei a permit to employ more than 40% foreign nationals.”
It was, however, established that Huawei was granted a permit in accordance with the provisions of the Immigration Regulations that required them to employ 60% South Africans and only 40% foreign nationals.
A subsequent meeting was held between the departments of employment and labour, home affairs, and trade and industry to determine whether Huawei had committed any other violations of national laws.
“As a result, the department has determined that its cause of action is clear and that all transgressions have been committed, and it has decided to refer this case to court without further delay,” said the statement from the labour department.
Breakdown of numbers of foreign nationals employed at Huawei South Africa
Founded in 1999 Huawei Technologies South Africa’s business includes providing communication services.
The assessment report indicates that at Top Management, Huawei has five employees, and all five (100 percent) are foreign nationals, and Huawei intends to keep this number for the next two years without employing any of the designated groups.
At Senior Management, out of a total of 71 employees, 27 (38 percent) are Foreign nationals, and Huawei is projecting to increase this number.
Professionally Qualified level, out of a total of 435 employees, 378 (87 percent) are foreign nationals, and still Huawei projects to increase the number to 405 in the next two years without any projections for increase for the designated groups.
At the Skilled-Technical level, 138 (76 percent) of the 181 employees are foreign nationals, with Huawei projecting an increase to 168 in the next two years; and at the Semi-Skilled level, there is currently only one employee at this level, who is a foreign national, with Huawei projecting an increase to 11 in the next two years without any designated group being employed.
The department said the court action against Huawei South Africa would send a strong message to other employers who do not comply with employment equity policies.
