Section 217 of the Constitution sets the parameters within which organs of state must procure goods and services. The Preferential Procurement Policy Framework Act (“PPPFA”) and the Preferential Procurement Regulations give practical effect to these parameters. The legal framework seeks to balance fairness and competitiveness with the state’s obligation to procure goods and services efficiently and responsibly. The Supreme Court of Appeal’s recent decision in Urban Icon (Pty) Ltd v South African National Roads Agency SOC Ltd highlights the complexities of this task.
Unfair discrimination claim upheld despite differences in job titles
The Labour Court, in Southern African Clothing and Textile Workers’ Union v Alpha Pharm (Pty) Ltd, considered whether black employees who perform similar work to their white counterparts, but earn significantly less, were unfairly discriminated against on the basis of race. The case focused on whether differences in job titles and historical employment arrangements justify pay disparities. CTH acted for the trade union and its members.