Recent data from a parliamentary Q&A raises serious questions about whether multinational corporations operating in South Africa are truly committed to employing local citizens. Are they invested in the country’s transformation and tackling its unemployment crisis, or are foreign nationals dominating key roles? Here are five critical points from the latest update on Huawei South Africa’s employment practices:

1. Huawei’s Employment Stats:

As of 31 March 2024, 57% of Huawei’s South African workforce is composed of local employees, showing improvement from 2022 when over 90% of their staff were foreign nationals. While this shift seems like progress, it still leaves nearly half of their workforce—43%—filled by foreign nationals. Are we celebrating too early?

2. Foreign Nationals in Leadership:

The real concern lies in management positions. In Huawei, 60% of top management, 53% of senior management, and 64% of middle management roles are occupied by foreign nationals. These numbers are startling, especially when you consider the influence these positions have on the company’s direction and South Africa’s broader transformation agenda. In contrast, at the semi-skilled level, no foreign nationals are employed, and at the skilled technical level, foreign nationals fill 35% of positions. This raises the question: why are locals being sidelined in critical decision-making roles?

3. Government Monitoring:

The Department of Employment and Labour continues to monitor Huawei’s compliance, focusing on high-level management positions. These are strategic roles where decisions impact not only the company but the country’s long-term economic and social transformation. Will monitoring alone suffice in ensuring that locals are given a fair shot at leadership?

4. Law Enforcement Efforts:Joint inspections by the Department of Labour, Home Affairs, and the South African Police Service (SAPS) aim to ensure compliance with employment regulations. However, the presence of undocumented foreign nationals in workplaces during these inspections suggests that some multinationals are still bypassing the law. Are the current enforcement measures robust enough to prevent this?

5. New Migration Policies:

In response, the government has developed the Draft National Labour Migration Policy (NLMP) and the Employment Services Amendment Bill, now awaiting final approval. These policies aim to prioritize the employment of local citizens, addressing the staggering 32.9% unemployment rate. But will these new regulations be enough to shift the balance in favor of locals, especially at the management level?

A Provocative Question for South Africa

While Huawei has made some strides in employing local staff, is it acceptable that foreign nationals dominate key leadership positions? With such high unemployment, South Africa cannot afford to have its top jobs monopolized by non-citizens. What more should be done to ensure that multinational corporations truly invest in local talent, not just in numbers but in leadership roles that shape the country’s future?

With the unemployment rate still hovering at 32.9%, it’s time for a bold rethinking of how we hold these companies accountable. Should penalties for non-compliance be stricter? What role should the government and civil society play in ensuring multinationals act in the country’s best interest?

#SouthAfrica #Employment #Transformation #Multinationals #Unemployment #EconomicJustice