Solidarity fears BEE could cause job losses

Andiswa Mkosi
13 July 2012

Trade union Solidarity says proposed amendments to laws governing Black Economic Empowerment could lead to job losses.

According to the Solidarity Research Institute’s Johan Kruger the amendments to the BEE Act could see companies that misrepresent their company’s status being fined with up to 10-percent of their yearly turnover or a ten-year prison sentence.

According to Kruger, the amendments are too strict and will make people think twice about starting businesses.

He added that he cost of running a business and the compliance burden when these amendments go through.