South Africa’s main opposition party, the Democratic Alliance (DA), launched a legal challenge on Tuesday against the Employment Equity Amendment Act, marking the latest flashpoint in the increasingly strained government of national unity. The DA is targeting Section 15(A) of the Act, which empowers the Labour Minister to set binding numerical targets for employment equity across specific economic sectors. Under the amended law, companies with more than 50 employees must align their workforce composition with national demographics, giving preference to historically disadvantaged groups, including Black South Africans, women, and persons with disabilities.
The DA, which has long positioned itself as a pro-business, non-racial party, argues the provision violates the Constitution, particularly the rights to equality, freedom of trade, and fair labor practices. It contends that the policy undermines merit-based hiring and could trigger job losses, especially in already strained sectors like manufacturing and mining. The ruling African National Congress (ANC), which crafted the law as part of its broader transformation agenda, has dismissed the DA’s action as a deliberate attempt to stall racial and economic redress. Labour Minister Thulas Nxesi accused the DA of trying to “preserve historical inequalities under the guise of constitutionalism.”
The court case adds to growing tensions between the DA and ANC, the two largest parties in the unity government formed after the 2024 general elections failed to produce a majority winner. Disagreements over fiscal policy, economic transformation, and governance priorities have repeatedly tested the coalition’s cohesion. A similar showdown occurred recently over the ANC’s proposal to raise the Value Added Tax (VAT) by 1%, which the DA opposed and successfully challenged in court, with backing from the Economic Freedom Fighters (EFF). That legal victory forced the government to shelve the VAT hike, but also exposed fault lines in the coalition.
As the DA presses forward with its legal battle, analysts warn that the dispute over the Employment Equity Amendment Act could jeopardize the stability of the coalition and delay the rollout of key economic reforms. Meanwhile, business leaders are watching closely, concerned about potential compliance burdens and legal uncertainty.
