The South African labour department seeks to fine Huawei South Africa for its non-compliance with local labour laws.
A statement from the Department of Labour alleges that the local branch of the Chinese tech firm hires an estimated 90% foreign workforce. This is well above the 40% limit imposed by employment equity regulations.
The labour department has filed a court order in which it seeks a R1.5 million fine, or 2% of Huawei SA’s turnover from 2020, whichever is higher.
Huawei South Africa’s response
In response to this news, the official Huawei statement is that the company is “committed to continuing engaging further with the department on our equity plan. Huawei is committed to complying with local laws and regulations.” What that looks like exactly is unknown at this point.
The labour department said Huawei was granted a permit, as per immigration regulations, that required the company to employ 60% South Africans and up to 40% foreigners. That seems to have been quietly ignored and it is alleged that Huawei plans to expand its foreign workforce.
Huawei should be well-versed in dealing with the pesky foreign policies of the other countries it operates in by now. Although, that hasn’t always worked out well for it… *cough* no Google services *cough*.
The quoted figures are from Huawei South Africa. The company has not yet publicly stated how many people it employs or how many of them are foreign nationals. It should be interesting to see how the company plans to comply with these regulations.
Considering how Huawei has positioned itself in this country and the market-share it enjoys here, we doubt it’ll be looking to leave any time soon.
Source: Business Day
*UPDATED on 15 February 2022.