The Department of Employment and Labour is negotiating a possible out-of-court settlement with Huawei South Africa, which it says has failed to meet employment equity rules.
Fikiswa Mncanca-Bede, a lawyer at the labour department, told Reuters its officials met with Huawei Technologies South Africa’s representatives on Monday.
“We are still negotiating a settlement out of court with some conditions,” she said. “(The) case has been stayed until we reach an agreement or not.”
Mncanca-Bede said the department was aiming to conclude negotiations by Friday.
On 11 February, the department announced that it has filed court papers against Huawei Technologies South Africa due to non-compliance with employment equity policies.
Huawei Technologies South Africa was audited in 2020 and found to be non-compliant in that they employ approximately 90% foreign nationals, which violates the Employment Equity Policy (EAP), it said.
“Huawei’s legal department contacted the department in an attempt to reach an amicable resolution. When asked about the 90% foreign national employment, the legal person stated that Huawei was granted permission by the Department of Home Affairs (DHA) to employ the number of foreign nationals they do.
“In investigating this matter, we worked with DHA to determine whether DHA had granted Huawei a permit to employ more than 40% foreign nationals, as required by the immigration regulations. It was discovered that Huawei was granted a permit in accordance with the provisions of the immigration regulations that required them to employ 60% South Africans and 40% foreign nationals.”
Read: Business warns of stricter transformation laws planned for South Africa