An amendment to the Employment Equality Act to penalise companies not abiding by racial diversification in the workplace was recommended to the Labour Department on Monday.

The government's approach of persuasion was not having the desired effect and black and coloured people were bearing the brunt of it, Commission for Employment Equity chair Jimmy Manyi told journalists in Pretoria, at the release of the body's 2008/09 report.

While progress was taking place, it was at a slow pace. Out of the over 100 Johannesburg Stock Exchange listed companies randomly selected for evaluation, there were "no shining examples".

There was a "shortage of recognition of black people as competent".

This was also the case for people with disabilities.

The government's response to non-compliance to the act was one of persuasion and they were given time to correct disproportional representation.

"There are going to be a lot more prosecutions now going on. Those who are not playing ball we will name and shame."

Fines for non-compliance also needed to be reconsidered as they currently amounted to "petty cash".

Manyi said the amounts needed to be escalated to 10% of a company's turnover, which was similar to penalties handed down by the Competition Commission.

Labour Minister Membathisi Mdladlana said the figures showed a "disturbing trend" and agreed that prosecution in the Labour Court should be enforced immediately.

"Unfortunately there are people you have to drag to heaven because they are heading for danger."

Mdladlana said the longer it took to implement employment equity in the workplace, the more negative the impact on growth and stability of democracy.

Calls to remove legislation that dealt with the lack of racial diversity - a legacy of apartheid - was tantamount to "throwing away the Constitution".

He said previously disadvantaged people would soon get frustrated with extending an olive branch.

"Comply with the law instead of manufacturing a revolution that is not going to take us anywhere," he said referring to apartheid uprisings.

"You better touch our hand whilst we are still giving it," he said.

"I want to warn them that the revolution will be a revolution of all black people.

"I am as angry as I was. I have not calmed down a bit. If we want to unite the people of this country this is the route to go," he said.

The report showed that white men represented 61% of top management level, enjoyed 48% of all recruitment and made up 44,7% of all employees promoted to this level.

At the top management level black men represented 9,8%, enjoyed 12,6% of all recruitment and made up 12,7% of all employees promoted to this level.

Representation of people with disabilities at all levels and in both private and public sectors dropped from one percent over the previous years to 0,7%.