briefing to the select committee on labour

Briefing to the Select Committee on Labour

2013.05.08

Strategic Plan , Annual Performance Plan and Budget,

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PRESENTATION OUTLINE

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1. INTRODUCTION

2. DOL ACHIEVEMENTS AS AT END OF DECEMBER 2012 (Q3)

3. CHALLENGES CONTRIBUTING TO NON ACHIEVEMENT OF SOME INDICATORS

4. SUMMARY OF EXPENDITURE AND ALLOCATIONS

5. KEY ASPECTS OF THE DOL STRATEGIC PLAN AND APP FOR 2013/14

6. EXPECTATIONS FROM THE PORTFOLIO COMMITTEE

1.1 1.1 INTRODUCTION :

THE DEPARTMENT ‘S CONSTITUTIONAL MANDATE

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The Department of Labour derives its mandate from the Constitution of the Republic; Chapter 2, Bill of Rights:•Section 9, to ensure equal access to opportunities; •Section 10, promotion of labour standards and fundamental rights at work; •Section 18, Freedom of association; Section 23, To ensure sound Labour relations; •Section 24, To ensure an environment that is not harmful to the health and wellbeing of those in the workplace; •Section 27, To provide adequate social security nets to protect vulnerable workers; •Section 28, To ensure that children are protected from exploitative labour practices and not required or permitted to perform work or services that are inappropriate for a person of that child’s age or their well-being, education, physical or mental health or spiritual, moral or social development is placed at risk; and •Section 34, Access to courts and access to fair and speedy labour justice .


THE LEGISLATIVE MANDATE

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LEGISLATION PURPOSELabour Relations Act 66 of 1995 (LRA);

The Labour Relations Act (LRA), Act 66 of 1995 aims to promote economic development, social justice, labour peace and democracy in the workplace.

The Basic Conditions of Employment Act 75 of 1997 (BCEA);

The purpose of this Act is to advance economic development and social justice by fulfilling the primary objects of this Act which are—(a) to give effect to and regulate the right to fair labour practices conferred by section 23(1) of the Constitution—(i) by establishing and enforcing basic conditions of employment; and(ii) by regulating the variation of basic conditions of employment;(b) to give effect to obligations incurred by the Republic as a member state of the International Labour Organisation.

The Employment Equity Act 55 of 1998 (EEA);

The purpose of the Act is to achieve equity in the workplace, bya. promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and b. implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce.

The Unemployment Insurance Act 30 of 1996 (UIA);

The Act empowers the UIF to register all employers and employees in South Africa for unemployment insurance benefits


THE LEGISLATIVE MANDATE- Continues

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LEGISLATION PURPOSE

The Occupational Health and Safety Act 85 of 1993 (OHSA);

The Occupational Health and Safety Act aims to provide for the health and safety of persons at work and for the health and safety of persons in connection with the activities of persons at work and to establish an advisory council for occupational health and safety.

The Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA)

To provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases; and to provide for matters connected therewith.

National Economic Development and Labour Council Act, 35 of 1994 (NEDLAC)

To provide for the establishment of a national economic, development and labour council; to repeal certain provisions of the Labour Relations Act, 1956; and to provide for matters connected therewith.

Skills Development Act (Act no 97 of 1998 [SDA] as amended) Employment Services Provisions

The sections of the SDA that remained with the Department of Labour when the President transferred skills functions to the Department of Higher Education and Training (DHETT) provides for the regulation of Employment Services and for workplace productivity and competitiveness in the workplace.

1.4. Strategic Plan and Annual Performance Plan1.4. Strategic Plan and Annual Performance Plan

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• The DOL Strategic Plan (SP) 2012-2017 and Annual Performance Plan (APP) 2012/13 were published and tabled in Parliament during March 2012.

• Subsequent to the tabling, short comings were identified in relation to:- Proposed corrections not having been effected- Mis-alignment between the SP and APP- Some Indicators and Strategic Objectives not fulfilling the SMART principles.- Some Indicators being too operational and not strategic.

• National Treasury Technical Advisory Unit (TAU) was approached to further critique the SAP and APP and to provide guidance in the reformulation of Indicators and Strategic Objectives.

1.5. Strategic Plan and Annual Performance Plan1.5. Strategic Plan and Annual Performance Plan continues

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• Branches subsequently made adjustments to the SP and APP and ensured that:

- Indicators and strategic objectives adhere to the SMART principles,

- Alignment between the SP and APP, - Less strategic indicators were removed from the SP and APP and

were incorporated in Branch Work Plans.- Targets were retained as far as possible except for those adjusted

after consultation with Treasury.- All adjustments were highlighted in Red for easy reading and

referencing.• The Erratum approved by the Minister and formally tabled in Parliament

on 15 February 2013, supplements the published SP and APP,• Branch Quarterly Reports are in accordance with the tabled APP Erratum

and the Annual Report will be aligned.• The Erratum was used as a basis for developing the DOL Strategic Plan

2013- 2018 and Annual Performance Plan 2013/14 tabled at Parliament on the 13th March 2013.

2. ACHIEVEMENTS ON SELECTED INDICATORS AND STRATEGIC OBJECTIVES

AS AT THE END OF DECEMBER 2012

NB. The report covers Quarter 1,2 and 3; Quarter 4 Reports are being verified and consolidated.

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2.1. 1Program 1: Corporate Services (CS) Achievements

OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIP

Strategic Objective 8: Strengthening the institutional capacity of the Department

KEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS

ANNUAL ANNUAL TARGETSTARGETS

PROGRESSPROGRESS

1. Strategic risks monitored in line with risk appetite framework

Provide quarterly strategic risk monitoring reports to the accounting officer

The Strategic risk assessment (risk profile) of the DoL was reviewed and reports prepared, approved by the National Risk Management Committee and the Audit Committee, submitted to the Accounting Officer for approval. The Risk Appetite Framework finalised. The first report (quarterly strategic risk monitoring report) was provided to the Accounting Officer.

2. Percentage of finalisation of the fraud cases received and detected

87% of cases received or detected finalised by the year end

57% (7 cases received and 4 finalised) of cases were finalisedOffice Receive

dFinalized

Outstanding

HO 1 1 0Mpumal 2 1 1N. Cape 0 0 0Limpopo 0 0 0N. West 0 0 0E Cape 0 0 0Gauteng 3 2 1F. State 1 0 1KZN 0 0 0W Cape 0 0 0

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2.1.2. CS ACHIEVEMENTS

OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIP

Strategic Objective 8: Strengthening the institutional capacity of the Department


ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS

3. Pre-employment screening conducted

70% pre-employment screening finalised as per the annual plan

A total of 80.92% of PSC requests were finalized.

Requests received Requests finalized Requests outstanding

Requests received

131 106 (80.92%) 25 (19.08%) 131DetailsName Received Finalized OutstandingHO 24 24 0UIF 06 05 01CC 06 06 0Mpumalanga 10 03 07N. Cape 04 04 0Limpopo 13 13 0N. West 07 06 01E Cape 11 04 07Gauteng 23 20 03F. State 09 07 02KZN 06 04 02W Cape 12 10 02TOTAL 131 106 25

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OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIPStrategic Objective 8: Strengthening the institutional capacity of the DepartmentKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


4. Percentage of Senior Management Service (SMS) staff members vetted in the Department increased

80% of SMS staff in the department vetted

• 11 Z204 forms forwarded to SSA.

• 5 Clearance certificate received from SSA.

• 23 Requests outstanding

5. Percentage of women, youth and people with disability (PwD) employed in line with the EE Plan

40% women employed in Senior Management Service (SMS),

43% youth and

3% people with disability employed in DoL by 31 March 2013

39% of Women employed at SMS level; 35% of Youth employed and 2.7% of PwD’s employed

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OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIPStrategic Objective 8: Strengthening the institutional capacity of the DepartmentKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


6. Fill all vacancies within a specific period of time

Vacancy rate reduced to below 7% by 31 March 2013

7% vacancy rate as at the end of Quarter 2

7. Percentage of staff trained in line with Workplace Skills Plan (WSP)

82% of Department’s staff trained in accordance with approved WSP by 31 March 2013

35% (2 280/6 550) trained

8. Percentage of misconduct cases finalised within a prescribed period of time

75% of misconduct cases finalised in line with applicable prescripts by 31 March 2013

71% (92 of 130) received misconduct cases were finalised against a target of 75%

9. Implementation of the new ICT strategy

50% of strategic plan components implemented

• ICT Strategy developed and approved

• 50% of the ICT Transition completed

10. Exit and services transfer plan developed and implemented

Completion of handover by PPP service provider and close-out of PPP

Exit and Services Transfer milestones achieved and project underway. Target is end November 2012

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2.2. Program 2: Inspection and Enforcement Services (IES) Achievements

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 2: Promote Equity in the Labour MarketKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


1. Percentage of employers complying with their EE Plans to reflect demographics of the country in all occupational categories

80% of 240 employers reviewed comply Public Companies (100)Private Companies (200)

181 (60 public and 121 private) employers were reviewed

Table 5: Employers inspected

Prov.

Annual Target (Public companies)

Actual inspected(Public companies)

Annual Target (Private )

Actual inspected(Private companies)

EC 16 0 9 0FS 17 18 17 12GP 25 8 30 37KZN 17 1 35 13LP 16 9 6 8MP 6 4 11 13NC 3 1 7 7NW 10 12 6 6WC 6 7 20 25NATIONAL 116 60 138 121

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2.2.1. IES ACHIEVEMENTS

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable WorkersKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


1. 80% of workplaces inspected and audited (targeting problematic sectors1 complying with labour legislation within 90 days of inspection or audit

80% of 87 795 workplaces inspected / audited comply

32 838 workplaces against a target of 33 917 (as at end of September 2012) were inspected/audited; and 59% (19 501) complied

Table 6: Number of workplaces inspected (targeting problematic sectors) in Wholesale and Retail Sector

Prov. Target Actual inspected No. compliedCompliance level

EC 865 1278 767 60%FS 309 475 429 90%GP 1947 1379 1039 75%KZN 1207 2141 1063 50%LP 1568 1102 642 58%MP 701 730 587 80%NC 0 153 116 76%NW 223 376 300 80%WC 672 1151 0 0%NATIONAL 7492 8785 5243 60%

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Table 7: Number of workplaces inspected (targeting problematic sectors) in Hospitality Sector

Prov.) Target Actual No. compliedCompliance Level

EC 683 589 426 72%FS 412 293 252 86%GP 300 333 230 69%KZN 804 738 426 58%LP 271 389 207 53%MP 291 277 184 66%NC 173 305 236 77%NW 329 354 204 58%WC 462 940 277 29%NATIONAL 3 725 4 218 2 442 58%Table 8: Number of workplaces inspected (targeting problematic sectors) in Agriculture and Forestry Sector


EC 1094 959 696 73%FS 1182 1078 893 83%GP 80 79 70 89%KZN 1208 418 332 79%LP 252 345 243 70%MP 332 309 194 63%NC 0 324 296 91%NW 306 389 325 84%WC 441 964 247 26%NATIONAL 4 895 4 865 3 296 68%

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Table 9: Number of workplaces inspected (targeting problematic sectors) in Iron and Steel Sector


EC 50 0 0 0%FS 31 25 22 88%GP 1517 159 80 50%KZN 1882 379 246 65%LP 41 46 23 50%MP 160 209 169 81%NC 78 44 21 48%NW 274 0 0 0%WC 488 41 0 0%NATIONAL 4 521 903 388 43%Table 10: Number of workplaces inspected (targeting problematic sectors) in Private Security Sector


EC 130 791 506 64%FS 20 183 161 88%GP 800 1323 1013 77%KZN 603 189 127 67%LP 79 180 0 0%MP 58 113 78 69%NC 32 139 122 88%NW 103 172 150 87%WC 230 916 19 2%NATIONAL 2055 4006 2182 54%

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Table 11: Number of workplaces inspected (targeting problematic sectors) in Domestic Sector


EC 327 491 330 67%FS 284 460 440 96%GP 1200 1110 620 56%KZN 201 1741 1398 80%LP 489 1333 957 72%MP 506 601 548 91%NC 471 556 537 97%NW 348 550 421 77%WC 210 1000 150 15%NATIONAL 4054 6732 4592 68%Table 12: Number of workplaces inspected (targeting problematic sectors) in Chemical Sector


EC 5 0 0 0%FS 31 22 9 41%GP 720 119 60 50%KZN 82 1181 862 73%LP 6 2 1 50%MP 15 20 19 95%NC 434 95 0 0%NW 127 0 0 0%WC 418 0 0 0%NATIONAL 1 838 1 439 489 34%

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Table 13: Number of workplaces inspected (targeting problematic sectors) in Construction Sector


EC 205 0 0 0%FS 91 75 59 79%GP 958 834 142 17%KZN 1057 63 50 80%LP 113 196 33 17%MP 255 294 259 88%NC 0 63 51 81%NW 462 98 53 54%WC 607 267 0 0%NATIONAL 3 748 1 890 869 46%

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH

Strategic Objective 3: Protecting Vulnerable Workers

KEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL ANNUAL TARGETSTARGETS

PROGRESSPROGRESS

2. Percentage of labour complaints resolved within a specified number of days of receipt at Registration Services

Settle 70% of received complaints within14 days

Of the 55 484 complaints received, 65% (35 884), against the target of 70%, settlement level was realised within 14 days

Table 14: Complaints management

Prov. TargetNumber received Number settled

Settlement rate (%)

EC 70% 4081 2381 58%FS 70% 2876 2086 73%GP 70% 22649 15258 67%KZN 70% 5746 4370 76%LP 70% 4366 2233 51%MP 70% 6416 4919 77%NC 70% 1397 941 67%NW 70% 2684 1464 55%WC 70% 4332 2232 52%NATIONAL 70% 55 484 35 884 65%

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 5: Strengthening Social ProtectionKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


PROGRESSPROGRESS

1. 200 workplaces inspected in WC (100) and KZN (100) to reduce exposure, to silica dust, by 2%

200 workplaces inspected

63 (all in the Western Cape)

workplaces were inspected

2. Percentage reduction in noise induced hearing loss (NIHL) in the Iron and Steel industry

Conduct base line study on the extent of noise induced hearing loss in the Iron and Steel Industry

Research in progress

3. OHS Act repealed and its regulations amended

Complete the consultation process OHS Bill finalised and promulgatedSubmit the Bill to Cabinet and Nedlac

Currently the OHS Act has been referred to state legal advisors

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2.3. Program 3: Public Employment Services (PES) Achievements

OUTCOME 4: Improve the quality and accessibility of labour market services to contribute to decent employment through inclusive economic growthDoL Strategic Objective 1: Contribution to decent employment creation



1. Employment Services Legislation, regulations and guidelines in place

Employment Services Act, regulations and guidelines in place (Private Employment Agencies and Career Guidance)

ES Bill currently in Parliament

2. Increase Number of work seeker registered in different categories

450 000 reporting work-seekers registered on the system

A total of 427 349 work-seekers was registered on the system.

Table 1: Job-seekers Registered on the system

Prov.Target as at 31 Dec 2012

Actual Number Registered as at 31 Dec 2012 Variance

EC 44250 50248 5998FS 27375 30176 2801GP 61250 108645 47395KZN 71250 83086 11836LP 24000 43639 19639MP 27375 36463 9088NC 13875 12608 -1267NW 24000 14548 -9452WC 44250 47936 3686NATIONAL 337625 427349 89724

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2.3.1. PES ACHIEVEMENTS

OUTCOME 4: Improve the quality and accessibility of labour market services to contribute to decent employment through inclusive economic growthDoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


3. Percentage of work-seekers registered on the system provided with career counselling and employability enhancement

60% of work-seekers registering on the system are profiled within 60 days of registration

94% (196 438 of 207 950 ) of work-seekers against a target of 60% of 450000 was profiled within 60 days of registration.

Table 2: Job-seekers Registered on the system assessed and profiled

Prov.Actual Registered

Target to have been Profiled by 31 Dec 2012

Actual Number Profiled % Profiled

EC 50248 22050 22508 102%FS 30176 20025 17994 90%GP 108645 51800 56584 109%KZN 83086 20025 27494 137%LP 43639 22050 19323 88%MP 36463 22050 18813 85%NC 12608 15975 5307 33%NW 14548 20025 9376 47%WC 47936 13950 19039 136%NATIONAL 427 349 207 950 196 438 94%

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4. Increase number of work-seekers placed/referred to opportunities and other services

18 000 work-seekers placed; 72 000 work-seekers referred

A total of 10 429 (79% of the target) work-seekers was placed; and a total of 278 998 (517% of the target) was referred.

Table 3: Job-seekers placed/referred to opportunities

Prov.

Target to have been placed by 31 Dec 2012 Actual placed

Target to have been referred by 31 Dec 2012

Actual referred

EC 2145 1258 8580 25061FS 1065 512 4260 20700GP 2200 3227 10115 90547KZN 2010 1158 8040 74013LP 1470 597 5880 41543MP 1335 2021 5340 7742NC 660 561 3720 2378NW 930 595 2640 5865WC 1335 500 5340 11149NATIONAL 13 150 10 429 53 915 278 998

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5. Increase number of employers registering vacancies on ESSA per annum

Increase from 2000 to 3000 companies register vacancies on ESSA by end of March 2013

1 924 companies registered vacancies on ESSA

Table 4: Employers registering vacancies on ESSA

Prov.

Expected target to register as at 31 Dec 2012 Actual Registered Variance

EC 67 112 45FS 60 138 78GP 143 551 408KZN 120 170 50LP 82 251 169MP 75 196 121NC 38 117 79NW 53 130 77WC 113 259 146NATIONAL 751 1 924 1173

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2.4. Program 4: Labour Policy and Industrial Relations (LP&IR) Achievements

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 2: Promote Equity in the Labour MarketKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


1. BCEA amended NEDLAC engagement finalized on the EEA Amendments by November 2012

NEDLAC engagements on EE Amendment Bill finalized in July 2012. Bill approved by Cabinet in September 2012 for tabling in Parliament.

2. Code of Good Practice and Technical Assistanceguidelines on HIV and AIDS reviewed and Amended andamended

HIV and AIDS Code and technical assistance guidelines amended by June 2012

• HIV & Code gazetted on 15 June 2012• HIV TAG amendments signed off on 27

June 2012 by CEE.

14 EE awareness workshops conducted in all provinces to publicise the HIV & AIDS Code & TAGs and promote 2012 EE Online reporting.

3. Income Differentials assessed to determine race and gender disparities in Salaries

30 Income Differentials assessed to determine race and gender disparities in salaries by March 2013

30 Income differentials assessed and DG Recommendations issued and EE Plans incorporating AA measures to address Income Differentials approved by DG for implementation.

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2.4.1. LP & IR ACHIEVEMENTS



1. Review existing sectoral determinations

Publish an amended SD with minimum wages for one sector by June 2012.

• An amended Hospitality SD published in GG No 35460 on the 22/06/12.

• An amended Private Security SD published in GG No 35646 on the 31/08/12.

• An amended Taxi Sector SD published in GG No 35462 on the 22/6/12 and currently conducting information sessions on the research report.

• An amended Civil Engineering SD published in GG No 35658 on the 4/9/12.

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2.4.2. LP&IR ACHIEVEMENTS



2. Investigate new areas for setting sectoral determinations

Investigate possibility of sectoral determinations for 2 new sectors

Report on the investigation into the Private Security Medical Aid has been finalised and submitted to the ECC for its deliberations.

3. Civil society strengthened

10 civil society organisations involved in the world of work funded

FEDUSA, NACTU, South African Labour Bulletin, DITSELA were visited.

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2.4.3. LP&IR ACHIEVEMENTS

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 6: Promoting Sound Labour RelationsKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


PROGRESSPROGRESS

1. Extend collective agreements within 60 days

Extend collective agreements within 60 days

Extensions of 9 Bargaining Council agreements to non-parties promulgated. Average turnaround time was 62 days

2. Register new labour organisations within 90 days

Decision to register new labour organizations taken within 90 days of receipt of competent applications

29 applications dealt with: • 5 approved • 24 refusedAverage turnaround time was 83 days

3 . CHALLENGES CONTRIBUTING TO NONE ACHIEVEMENT OF SOME INDICATORS AND CORRECTIVE

ACTION

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KEY STRATEGIC OBJECTIVE

AREA OF CONCERN REASON FOR MAJOR VARIANCE

CORRECTIVE ACTION

Contribute to employment creation

Work-seekers placed Low skills level of registered work-seekers and insufficient opportunities

Explore alternative schemes and aggressive marketing

Existing PEAs registered No legislative enforcement mechanisms

ES Bill has enforcement provision and penalties

Learners with disabilities recruited for training to the SEF Centre of Excellence pilot project

Insufficient funding and institution not accredited

Review the programme

Jobs saved Delays in UIF funding transfer

Conclude an agreement with UIF Board

Promote equity in the Labour Market

NEDLAC engagement finalized on the EEA Amendments by November 2012

Delays in finalisation of Nedlac engagements on the EE Amendment Bill

3 .1. CHALLENGES FOR NONE ACHIEVEMENT OF SOME INDICATORS

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AREA OF CONCERN

REASON FOR MAJOR VARIANCE CORRECTIVE ACTION

Protecting vulnerable workers

Number of workplaces inspected to determine their compliance levels in terms of the relevant labour legislation

Major variances: Problematic sectors:- Agriculture and Forestry (WC and KZNReasons1. Current developments in the farming sector impacted on inspections2. Capacity and resource constraints in KZN

Revitalizing the sectoral discussion forums in order to address sectoral issues

BCEA amended Delays in Parliamentary processes which result in the delay in implementation of the Act

Requested Parliament to prioritise

Strengthening Social Protection

Number of workplaces audited to determine their compliance levels in terms of Occupational Health and Safety legislation

Workplaces audited to determine their compliance levels in terms of Occupational Health and Safety legislation (Chemical and Agriculture and Forestry sectors)Reasons1. Current developments in the farming sector impacted on inspections2. Capacity and resource constraints in KZN

Develop a structured training programme to build capacity in the inspectorate to deal with high risk sectors

3 .2 CHALLENGES FOR NONE ACHIEVEMENT OF SOME INDICATORS

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AREA OF CONCERN

REASON FOR MAJOR VARIANCE

CORRECTIVE ACTION

Promoting Sound Labour Relations

Labour Relations Act Amended

Delays in Parliamentary processes which result in the delay in implementation of the Act

Requested Parliament to prioritise

Strengthening the institutional capacity of the Department

Revised DoL Strategic Plan 2012-2017 and Annual Performance Plan 2013-2014 tabled to Parliament by February 2013

Inputs received from Branches are usually late and contain lots of errors

The DoL to conduct the strategic planning session as early as May, involving all Branches

4. DOL FINANCES

Expenditure as at 31st January 2013 Allocations for the MTEF period

2013/14 to 2015/16

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4. 1.1 THE DEPARTMENT’S EXPENDITURE

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• As at 31 January 2013, the Department had defrayed expenditure to the value of R1, 772 billion against its adjusted budget of R2, 139 billion.

• This represents an expenditure level of 82.8 % against a time expiration of 83%.

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VOTE 17: LABOUR

PROGRAMME ADJUSTED ACTUALBUDGET EXPENDITURE REMAINING

2012/2013 31-Jan-13 BUDGETR'000 R'000

Administration 764 585 556 273 208 312 73% 27%Inspection & Enforcement Services 400 376 328 341 72 035 82% 18%Public Employment Services 334 331 286 973 47 358 86% 14%Labour Policy & Industrial Relations 640 274 600 004 40 270 94% 6%

TOTAL 2 139 566 1 771 591 367 975 83% 17%

EXPENDITURE AS A %

REMAINING BUDGET AS

%

-

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

ADJUSTED

ACTUALEXPENDITURE

4.1.2 EXPENDITURE PER MAIN DIVISION OF THE VOTE

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VOTE 17: LABOUR

ADJUSTED ACTUALECONOMIC CLASSIFICATION BUDGET EXPENDITURE REMAINING

2012/2013 31-Jan-13 BUDGETR'000 R'000

Current Payments 1 446 710 1 035 080 411 630 72% 28% Compensation of Employees 847 541 685 864 161 677 81% 19% Goods and Services 599 143 349 196 249 947 58% 42% Interest and rent on land 26 20 6 77% 23% Financial transactions in assets and liabilities - - - 0% 0% Unauthorised Expenditure - - - 0% 0%Transfers and subsidies to: 656 369 650 313 6 056 99% 1% Provinces and municipalities 88 163 (75) 185% -85% Departmental agencies and accounts 554 053 549 162 4 891 99% 1% Universities and Technikons - - - 0% 0% Foreign governments & international organisations 12 722 13 692 (970) 0% 0% Public corporations & private enterprises - - - 0% 0% Non-profit institutions 88 711 85 313 3 398 0% 0% Households 795 1 983 (1 188) 249% -149%Payments for capital assets 36 487 86 198 (49 711) 236% -136% Buildings & other fixed structures 3 416 6 470 (3 054) 189% -89% Machinery and equipment 33 071 79 728 (46 657) 241% -141% Cultivated assets - - - 0% 0% Software and other intangible assets - - - 0% 0% land and subsoil assets - - - 0% 0%

TOTAL 2 139 566 1 771 591 367 975 83% 17%

EXPENDITURE AS A %

REMAINING BUDGET AS

%

4.1. 3. EXPENDITURE PER ECONOMIC CLASSIFICATION

4.2 MTEF Allocations

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SubProgramme

Reprioritised Baseline



Administration 785 450 833 449 877 511Inspection & Enforcement Services 465 190 494 417 522 539Public Employment Services 400 117 438 165 461 832Labour Policy and Industrial Relations 764 491 867 511 923 709TOTAL 2 415 248 2 633 542 2 785 591

ECONOMIC CLASIFICATION




Current Payments 1 562 195 1 666 685 1 758 602Compensation of Employees 982 906 1 074 427 1 140 178Goods & Services 579 289 592 258 618 424Interest & Rent on Land 0 0 0Financial Transactions in A&L 0 0 0Unauthorised Expenditure 0 0 0Transfers and Subsidies to: 818 733 937 879 996 653Provincial and Local Governments 0 0 0Departmental Agencies & Accounts 676 171 774 940 826 394Universities & Technikons 0 0 0Foreign Gov & International Organ 11 312 11 991 12 543Public Corporations & Priv Ent 0 0 0Non Profit Institutions 130 970 150 652 157 406Households 280 296 310Payments for Capital Assets 34 320 28 978 30 336Buildings & Other Fix Structures 5 486 17 0Machinery & Equipment 28 834 28 961 30 336Cultivate Assets 0 0 0Software & Other Intangible Ass 0 0 0Land & Subsoil Assets 0 0 0TOTAL 2 415 248 2 633 542 2 785 591

2013/14 2014/15 2015/16

2013/14 2014/15 2015/16

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4.2.1 MTEF Allocations

5. DOL 2013/14 ANNUAL PERFORMANCE PLAN AND STRATEGIC PLAN 2013 -

2018Branch Selected Indicators and Strategic Objectives

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5.1.1 SOME OF THE KEY CHALLENGES FACING THE DOL AND INTERVENTIONS

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• The first challenge facing us is unemployment and under‐employment.

Interventions- Through the DoL’s contribution to Employment Creation

Initiatives.- Amendment to current legislation.- Introduction of new legislation; e.g. ES Bill• Establishing strategic partnerships for collaboration in creating

and delivering value to citizens.

• The second challenge relates to the changing nature of work.Interventions- Amendment to current legislation; e.g. BCEA


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• The third challenge still facing us relates to inequalities and unfair discrimination in the workplace.

Interventions- Amendments to current legislation; e.g. Employment Equity

Act.- Through Sectoral Determinations.- Through the Employment Services System, the Inspection and

Enforcement System and Integrated Client Database systems

• The fourth challenge relates to domestic as well as cross‐border labour migration.

Interventions- Sectoral Determinations.- UIF for Domestic Sectors.- Labour Migration with Department of Home Affairs.


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• The fifth challenge relates to inadequate instruments for constant performance monitoring and evaluation of labour market policies and programmes to determine their impact on the economy.

Interventions- Transforming and repositioning the Department at Head Office,

provincial office and labour centre level for improved and effective service delivery and monitoring the impact of our interventions.

- Ensuring that service delivery access point’s staff is empowered to deliver on the entire suite of the Department’s services.

- Reconfiguring and repositioning our service delivery points and processes to improve service quality and responsiveness to citizens’ needs and expectations.

- Developing a service delivery model and establishing a network of integrated service delivery points as close as possible to the people.

5.2 . KEY ASPECTS OF THE DOL ANNUAL PERFORMANCE PLAN FOR 2013/14 : Program 1: Administration

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Strategic Objective Objective Statement

Baseline Performance Indicator

1 Organisational Strategic plan and Annual Performance Plan approved

To manage and facilitate the development of organisational Strategic plan and Annual Performance Plan as per prescripts and guidelines

1 Strategic plan and 1 Annual Performance Plan

1.1 Strategic Plan and Annual Performance Plan approved and tabled as per prescribed timeframes

2 Organisational performance monitored and evaluated against the approved Strategic Plan and Annual Performance Plan

To manage and facilitate the development of organisational performance information reports

1 Annual report and 4 organisational performance information reports

2.1 Number of performance information reports approved within 60 days after quarter end/year end

5.2.1. Program 1: Administration

43



3 Service Delivery Improvement Plan approved as per prescribed timeframes

To manage and facilitate the development of Service Delivery Improvement Plan

1 Service Delivery Improvement Plan

3.1 Submit reviewed and approved Service Delivery Improvement Plan to Department of Public Service and Administration (DPSA) as per prescribed timeframes

4 Annual audit plan, including ad hoc investigations executed

Conduct a risk-based internal audit and timely reporting

88% (33 planned vs. 29 actuals) of final reports were issued as per timeframes indicated in the approved annual audit plan

4.1 Percentage of final reports issued as per timeframes indicated in the approved annual audit plan

5.3 Program 2: Inspections and Enforcement Services

44

Strategic Objective

Objective Statement


1.

Ensure promotion of Employment Equity in the labour market

Ensure transformation of the labour market by inspecting workplaces (JSE listed and designated employers) in order to achieve compliance with Employment Equity legislation

65 JSE workplaces inspected

218 Designated workplaces inspected

9 940 Procedural inspections conducted

1.1 Number of (a) Public Companies and (b) Private Companies reviewed for compliance with employment equity legislation per annum

New Indicator Percentage of non-compliant workplaces of those inspected dealt with in terms of the enforcement regime link to the EEA

5.3. 1 Program 2: Inspections and Enforcement Services

45

Strategic Objective

Objective Statement Baseline Performance Indicator

2.

Reduction in worker vulnerability through improved compliance and enforcement

Ensure Decent Work principles are adhered to by reducing worker vulnerability through improved compliance and enforcement

172 300 workplaces inspected

2.1 Number of workplaces inspected per year to determine compliance levels

123 81 non-complying workplaces of those inspected were dealt with

2.2 Percentage of non-complying workplaces inspected dealt with in terms of the relevant labour legislation per year

4 seminars 2.3 Number of

advocacy and educational seminars conducted in identified sectors to enhance compliance with labour legislation per year

5.4. Programme 3: Public Employment Services

46

Strategic Objective

Objective Statement


1.

Employment Services legislation, related regulations and guidelines in place

Develop and implement Employment Services Legislation, regulations & guidelines

New indicator 1.1. Percentage of work completed on the Employment Services Bill and its regulations and guidelines

2. PES initiatives and interventions communicated through various media channels

Communicate PES initiatives and interventions through various channels

4 National exhibitions on PES and 99 Provincial Advocacy campaigns were held

2.1. Number of PES Advocacy campaigns conducted

3. Work-seekers registered on the system

Register work seekers on ESSA for opportunities

553 883 work seekers registered on ESSA

3.1. Number of work-seekers registered on ESSA system per year

5.4.1. Programme 3: Public Employment Services

47

Strategic Objective

Objective Statement


4.

Registered Work-seekers provided with employment counselling , placement or referral, to registered opportunities & other services

Provide career counselling and employability enhancement to work seekers

222 956 work seekers were provided with career information and counselling

4.1 Percentage of work-seekers registered provided with employment counselling

Place and refer work seekers to opportunities

96 505 placed and referred

4.2 Number of work-seekers placed in registered employment opportunities4.3 Number of work-seekers referred to registered opportunities4.4 Number of work-seekers referred to other services

5.5. Program 4: Labour Policy and Industrial Relations

48



1.

Employment Equity in the labour market ensured

Establish legislative framework to promote employment equity

Employment

Equity Act,

1998

1.1 Employment Equity Act (EEA) regulations amended in line with the amended Act.

New Indicator 1.2 Annual Employment Equity Report published and launched

58 of Income

Differentials

assessed

1.3 Number of Income Differentials assessed to determine race and gender disparities in salaries per year.

5.5.1. Program 4: Labour Policy and Industrial Relations

49

Strategic Objective

Objective Statement


2.

Basic Conditions of Employment in the labour market ensured

Establish the legislative framework to establish basic conditions of employment

Bill consulted and submitted to Parliament

2.1 BCEA regulations finalised in line with the amended Act by end of September.

1 Child labour programme every 5 years

2.2 One Child Labour Program of Action implemented

3

Sectoral determinations published for residual and emerging vulnerable workers

Review existing sectoral determinations

6 Sectoral determinations

3.1 Number of existing Sectoral Determinations reviewed

Investigate possibility of setting a Welfare sectoral determination

3.2 Number of new areas for setting sectoral determinations investigated

4 Civil society organisations that protect vulnerable workers funded

Monitor Civil Society Organisations functions

10 civil society organisations funded

4.1 Number of Civil society organizations involved in the world of work funded and monitored per year

6 . EXPECTATIONS FROM THE LABOUR PORTFOLIO COMMITTEE

50

• Support the department’s Budget Vote• Continue to monitor the performance

of the Department and its entities• Support the proposed Amendments to

existing legislation and the new Bill tabled in Parliament

• Provide advice and guidance on any aspects relating to the Department as you deem it fit.

Thank You…

51

briefing to the select committee on labour

Documents

safety act

uiathe act

diseases act

employment equity act

work section

workplace section

unemployment insurance

department of labour