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What happens to the white workforce eradicated from the workplace due to BBBEE?

Updated: Nov 29, 2022



This is a question seldom considered by any corporate South African company listed on the JSE. They have to achieve certain black/white employee quotas or face penalties as high as 10% of their turnover.

Therefore, if they need to employ certain rare expertise and find a suitable white junior manager candidate, they need to employ 6 black workers and call them “Junior managers” to justify the appointment of the white junior manager to maintain the 88% required by the level one BBBEE scorecard.

Furthermore, to minimize expenses it is far cheaper to employ as many as three or four black “Junior managers” to do the job of one white employee with the required qualification. However, three or four poorly qualified workers remain unqualified, with the results of overstaffing and high prices experienced in most South African corporate companies today, one only has to look at the poor service received from most financial and other corporate institutions.

The white experts, even those born after 1994, who had the same opportunities and challenges as their black counterparts, now have a choice to either leave the country or become self-employed. Should they choose the latter they become employers themselves and BBBEE proved to be purposeful. When they leave the country, South Africa experiences an “Expertise or brain drain” Everyone knows the result of this phenomenon by just saying “ESCOM”

One only has to look at any state-owned enterprise, and there are none excluded from the fact, they are not even a shadow of what they used to be due to the above facts. In reality, the shadow was stolen, and now there is just nothing.

Enough of all the doom and gloom, what can be done about it?

A wise man once said that any man can eat a cow if given enough time.

The East Rand Chamber and their more affluent members have all agreed to donate their unused Chamber services, such as Internet marketing, to SMEs who need to improve their internet presence, in so doing for the SME to become more profitable and be in a position to employ more staff. Did I say you can eat a cow if given enough time? This cross-donation of services will be a trivial effort if measured against the enormity of the problem, but yes, the Chamber is doing it one bite at a time. Hopefully, more corporate companies will come aboard and then ERCOC will have to increase staff, mission accomplished!!

ERCOC Invite all SMEs to become members of ERCOC and apply for these services ranging from R 20,000 to R 240,000 per annum in value.

FAQ

Q. What is the cost to the Sponsoring corporate company?

A. As little as R 1,650 pm to a maximum of R 8,500 pm per sponsorship.


Q. What does an ERCOC chamber membership cost the recipient?

A. As little as R 450 per month and included in the package is the hosting of your website and e-mails which will most likely save you 50% of the membership fees already. Should your application indicate this cost to be too high, there are even sponsorships to cover or reduce that cost.


Q. May only start-ups apply for these sponsored services?

A No, we are currently assisting applications from 20-year-old companies, who barely survived the lockdown but do not qualify for financial assistance from normal institutions.


Q. Does one have to sign any long-term contracts?

A. No, it is a month-to-month services level agreement between parties with a thirty-day notice period.


Q. Do I get to know the sponsor company?

A. Yes, unless they want to remain anonymous. Normally the donor would request periodic progress reports.


Q Is this a “Whites Only” initiative?

A. No, if a black entrepreneur can show that he was affected by BBBEE, or that he will be able to create job opportunities with the assistance of sponsorship, he will be treated exactly as a white applicant. However, there will be no preference due to skin colour or the lack thereof. This initiative is to counteract racism not to support the wrongdoing.




Q Is this offer available throughout South Africa?

A. Yes, with the internet and virtual meetings there are no boundaries to our membership.


Q. How does one apply for these E-Marketing services?

A. Email your business portfolio to sales@ercoc.co.za or Phone for assistance at 010-980-0984 / 083-269-2492 / 011-814-7111/0. Or courier your portfolio to, the Chamber reception, 2 Station Road Nigel.

Q. How does the Chamber fit into the Organogram of the DTI

A.


Q. Is the East Rand Chamber of commerce and Industry an NPO?

A. Yes, but all the services providers, who operate from the same premises and that provide expert services to the chamber members are not just chamber departments but fully fledged” for-profit business entities”, ensuring membership fees of the current 250 members are applied to their benefit and not used for normal Chamber expenses, such as rent and salaries, which is taken care of by the services providers.


Ercoc is affiliated with Afriforum and Sakeliga, who are separate entities and allies of Ercoc both fulfilling their mandate as civil rights societies.


Keywords

· BBBBBBEE scorecard, black entrepreneur, E-Marketing services, BBBEE, SMEs

· state-owned enterprise, East Rand Chamber, Chamber services, Internet marketing-·

· ERCOC, ERCOC chamber membership, Hosting, DTI Services level agreement,

· NPO, Afriforum, Sakeliga.

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