South Africa’s Department of Labour is negotiating a possible out-of-court settlement with a subsidiary of China’s Huawei Technologies, which it accuses of failing to comply with local hiring quotas, Huawei and a government official have said.
Authorities took Huawei Technologies South Africa to court this month, stating it had not met a requirement that 60% of workers must be South African.
Fikiswa Mncanca-Bede, a lawyer at the Labour Department, said its officials met with Huawei Technologies South Africa’s representatives on Monday.
“We are still negotiating a settlement out of court with some conditions,” she said. “(The) case has been stayed until we reach an agreement or not,” Mncanca-Bede said, adding that the department was aiming to conclude negotiations by Friday.
Labour is a sensitive issue in South Africa, which is facing its highest unemployment levels since the end of white minority rule in 1994.
Huawei Technologies South Africa confirmed it had “entered into talks to reach a settlement agreement” and that the court case had been stayed pending an outcome.
“Discussions are ongoing, Huawei is committed to being fully cooperative with the Department and we are positive that this matter will be concluded shortly,” it said via email in response to questions.
Huawei said it had demonstrated its “extensive [information and communications technology (ICT)] skills transfer and training programmes that are aimed at reducing the ICT skills gap and fostering a strong digital talent ecosystem for South Africa.”
This was acknowledged by the Labour Department, which advised Huawei to expand this further in its employment equity plan, it added.
- Reuters, with additional editing by George Russell
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