In the Durban Labour Court, two Newcastle textile companies, each facing a fine of R500 000 for failing to fulfill with the Employment Equity Act, attempted last ditch efforts to resist the matters.
Judge M Ngcamu although permitted them time to file differing papers, ordered the companies that they pay the costs, incurred by the Department of Labour for hiring a senior advocate for the day.
After nationwide raids on companies last year to ensure whether they comply with the Employment Equity Act, a suit against Lingual Garments and Wincool Industrial was filed, the first of its kind.
The department was of the opinion that a "carrot and stick" move would be adequate to persuade compliance to the legislation, intended for rectification in the place of work.
The two companies disregarded the compliance orders, alleged the department.
They have been charged for failing to exhibit the Act on the notice boards, and to tender impartiality reports and plans to the department.
If the department succeeds in its legal action against the defaulters, this will be the solitary case in South Africa's history.
The judge felt, that the matter was important to all parties concerned, and since the companies are facing hefty fines, he considered giving them another chance to file differing papers.
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