department of labour presentation to the portfolio committee march 2005 director-general: dr. van...

DEPARTMENT OF LABOUR

PRESENTATION TO THE PORTFOLIO COMMITTEE

MARCH 2005

DIRECTOR-GENERAL: DR. VAN MKOSANA

STRUCTUREMinister MMS Mdladlana, MP

Minister of Labour

Dr. Van Mkosana

Director-General: Labour

Mr. Les Kettledas Ms. A Bird Ms. M Xaba Mr P Mothiba

DDG: LP&LMP DDG: E&SDS/HRD DDG: Corp. Serv. Act DDG: Serv. Del.

CONTENTS1. Ministerial Programme of Action

2. Main Divisions of the Vote

3. 2004/2005 Expenditure Information

4. 2005/2006 MTEF Allocations

5. Projects per Main Division

1. Ministerial Programme of Action


• Challenges facing the Department of Labour:

– Addressing the high levels of income poverty, limited access to knowledge, technology and markets, as well as poor labour standards and informal work relations which characterise the second economy.


– Addressing the challenges of the legacy of structural unemployment. There are two notable features of the country’s unemployment crisis:

• the unskilled are simultaneously most likely to be first to lose their jobs in periods of employment contraction, and least likely to be hired in periods of employment expansion.

• the youth, which currently constitute 70% of the unemployed, are the dominant, identifiable cohort within this group of long-term unemployed individuals


– Addressing the challenges related to inequalities and discrepancies in terms of ownership, shareholding and management, which remains dominated by White males. Black people, women and people with disabilities remain marginalised in relation to meaningful and influential participation in the economy.


– Addressing the challenges relating to the changing nature of work. This is evident in the increased propensity amongst employers to switch away from permanent and full-time employment towards atypical forms of employment such as casual labour, part-time employment, temporary and seasonal work. Externalisations in the form of outsourcing and subcontracting is also on the rise.


– Addressing the challenges relating to domestic as well as cross-border migration.

• domestic describes a phenomenon whereby people from rural areas, most (though not all) of whom are unskilled migrate to urban areas in search of employment.

• cross-border migration refers to economic refugees who have left their country and settled in the urban areas of South Africa, hoping to find employment.

Both phenomena bear the risk of increasing the numbers of unemployed people in large urban centres, with the concomitant greater pressure on public services and utilities.


– Addressing the challenge relating to the shortage of very specific skills required by domestic firms in order to both expand production and increase their global competitiveness.

• This challenge does not only require that we train less qualified people to acquire these skills, but also that re-orientation and retraining of those who have qualifications is undertaken.


– Addressing the challenges of strengthening labour market institutions and increasing their capacity to carry out their mandates.


– Addressing the challenges relating to the management of HIV and AIDS in the workplace in such a way that workers who are infected and affected are not unfairly discriminated against, on the basis of their HIV status.

• Allied to this is the challenge of preventing AIDS from adversely affecting workplace productivity. In addition, the pandemics deleterious impact in terms of a potential reduction of supply of skilled workers is noted.


– Addressing the challenges relating to ensuring that the labour market has an efficient and effective system of occupational health and safety fully integrated with a system of compensation for occupational injuries and diseases across government.

• The growth of the informal economy introduces a particular challenge in this regard.


– Addressing the challenges relating to ensuring the development and implementation of effective instruments for constant review of the impact of labour market policies in the economy.


– Addressing the challenges relating to ensuring that key economic policies of government are in harmony with one another and are mutually re-enforcing in promoting growth, reducing unemployment and eradicating poverty.


– Interventions that will be undertaken to address the numerous, inter-related challenges which have been identified above, are captured in the following ten strategic objectives:


Strategic Objective 1: Contribution to employment creation.

The Department of Labour will contribute towards employment creation in the following ways:


1.1 Actively striving to ensure that its labour policies and strategies compliment national growth and development objectives.

1.2 New labour market regulations in relation to new job creation strategies, such as cooperatives, will be developed, implemented, monitored and evaluated.

1.3 Social dialogue will be strengthened to support growth and development.


1.4 There will be ongoing monitoring of the achievements and targets of government departments GDS commitments.

1.5 The Department will ensure that it meets its own GDS commitments.

1.6 Sectoral skills plans will be aligned to sectoral growth paths.


1.7 Provincial skills plans will be aligned to provincial economic growth and development strategies.

1.8 Expanded Public Works Programmes (EPWP) participants will be trained.

1.9 Learnership targets will be achieved as per the GDS targets.

1.10 Exit strategies for people on EPWP and learnerships will be developed and implemented


Strategic Objective 2: Enhancing skills development.

The Department of Labour will implement the adjusted national skills development strategy from 2005 to 2010 and will seek to address existing weaknesses and bottlenecks. This will be achieved by:


2.1 NSDS 2001-2005: Targets achieved, reported and evaluated .

2.2 NSA to provide advice to the Minister of Labour on the implementation of the NSDS and related matters .

2.3 Critical Skills list prioritised and communicated

2.4 Quality training in all workplaces promoted and accelerated


2.5 Employability and sustainable livelihoods promoted through skills development .

2.6 Designated groups including new entrants assisted to participate in accredited learning and work-based programmes to acquire critical skills to enter the labour market and self-employment .

2.7 Quality and relevance of provision improved


Strategic Objective 3: Promote equity in the labour market.

The Department of Labour will seek to eradicate discrimination by vigorously implementing the employment equity legislation. To this end, the following interventions will be undertaken:


3.1 The Department will conduct a study on the impact of the Employment Equity Act since its inception and its policy implications.

3.2 The Department will strengthen enforcement mechanisms whilst promoting the culture of self-regulation. In monitoring compliance, targeted audits will be embarked upon.


3.3 The employment Equity Strategy and NSDS 2005-2009 will be aligned.

3.4 Technical Assistance Guidelines (TAGs) and codes of good practice will be implemented.


3.5 incremental Black Economic Empowerment (BEE) targets – for procurement of goods and services will be incorporated into public entities associated with the Department.

3.6 Employment Equity and BB BEE

legislation will be aligned.


Strategic Objective 4: Protecting vulnerable workers.

The Department of Labour will protect vulnerable workers by undertaking the following interventions:


4.1 Workers in vulnerable sectors and segments will be identified and protection extended. Sectoral determinations published for residual and emerging vulnerable workers (Children in the Performing Arts, Forestry, Taxi and Sheltered Employment).

4.2 Current sectoral determinations will be evaluated.


4.3 Compliance with legislation will be increased.

4.4 Bargaining councils will be established in vulnerable sectors (security, Civil Engineering, Contract Cleaning and the Building Industry)


4.5 The Child labour Action Programme will be finalised and implemented.

4.6 Sheltered employment factories will be restructured.


Strategic Objective 5: Strengthening multilateral and bilateral relations.

The Department of Labour will, over the next five years, promote a collective multilateral approach to global challenges and work for democratisation of global institutions that operate within its spheres of influence. The Department’s interventions will include:


5.1 Ensuring effective participation in the ILO, SADC and the AU Labour and Social Affairs Commission.

5.2 Effectively discharging South Africa’s obligations to the ILO.


5.3 Ensuring that the objectives of signed bilateral agreements are implemented and monitored and achieved.

5.4 Mobilising, coordinating and managing technical cooperation.


Strategic Objective 6: Strengthening social protection.

The Department of Labour will, over the next five years, seek to strengthen social support systems. The support will include:


6.1 Ensuring an improved client satisfaction on Unemployment Insurance Fund and Compensation Fund services.

6.2 Achieving financial viability and sustainability of the Unemployment Insurance Fund and Compensation Fund.


6.3 Improvement in revenue collection by at least 10% during the first year.

6.4 Extending the coverage of unemployment insurance to other vulnerable workers.

6.5 The national integration of compensation and occupational health and safety competencies across government departments.


6.6 The reduction of occupational health and safety incidents in targeted industries.

6.7 The reduction of workplace fatalities especially in high risk sectors.


Strategic Objective 7: Promoting sound labour relations.

The Department of Labour will continue to promote sound labour relations through:


7.1 Ensuring a continuing decline of workdays lost due to industrial action.

7.2 Ensuring an effective and efficient dispute resolution system.

7.3 ensuring that the proportion of workers covered by collective agreements is increased.


7.4 Ensuring improved representation of small business interests in collective agreements.

7.5 Inclusion of broader economic and employment growth issues into collective bargaining agreements.


7.6 Active engagement and participation by the Department in tripartite statutory bodies.

7.7 Enhancing and extending social dialogue.


Strategic Objective 8: Strengthening the capacity of labour market institutions.

The Department of Labour will evaluate these institutions, asses their strengths and weaknesses and effect whatever interventions are required to increase their efficiency and enhance their effectiveness. In this regard, the Department will:


8.1 Improve service delivery provided by statutory bodies and public entities associated with the Department, through clear performance standards for relevant agencies.

8.2 the views of the public will be sought to assess the services received from statutory bodies and public entities.


8.3 The capacity of social partners to deliver on GDS commitments and other areas of cooperation will also be enhanced by the Department’s support.


Strategic Objective 9: Monitoring the impact of legislation.

The Department of Labour will, during the third cycle of democratic governance carry out research, monitoring and evaluation aimed at determining the extent to which labour market policies are harmonised with other economic policies, the Department will:


9.1 Publish bi-annual labour market reviews and labour statistics reports.

9.2 The impact of aggregate and disaggregate departmental policies and programmes on stated goals and objectives will be researched and reported.

1. Ministerial Programme of Action9.3 Annual client satisfaction surveys will be

conducted on levels of service delivery and made public.

9.4 the harmonisation of labour market policies and other government policies will be promoted.

9.5 Strategic partnerships and cooperation with established research institutions will be embarked upon.

1. Ministerial Programme of ActionStrategic Objective 10: Strengthening the institutional capacity of the Department.

The Department of Labour will, during the period 2004 – 2009, undertake an evaluation of lessons learned in the last five years and identify areas of work that need to be strengthened in order to further increase the effectiveness of the institution in delivering its services. The Department will:

1. Ministerial Programme of Action10.1 Improve service delivery to the

external clients of the Department by enhancing decentralisation of services.

10.2 Improved service delivery provided by agencies associated with the Minister of Labour

10.3 Improved service delivery to the internal clients of the Department.

1. Ministerial Programme of Action10.4 Improved management practices

within the Department.

10.5 Full PFMA compliance achieved by the Department and public entities.

10.6 Internal compliance with labour laws.

10.7 internal and external communication are strengthened.

2. MAIN DIVISIONS OF THE VOTE


1. Administration2. Service Delivery3. Employment and Skills Development

Services / Human Resource Development

4. Labour Policy and Labour Market Programmes

5. Social Insurance

2. Main Divisions of the Vote1. Administration

DDG: Corporate Services:

Ms. Masodi Xaba


1. Administration

Purpose:

Conduct the overall management of the Department and provide support and advisory services.

2. Main Divisions of the Vote2. Service Delivery

Acting DDG: Service Delivery:

Mr. Phineas Mothiba


2. Service Delivery

Purpose:

Protect the health and safety of workers, and implement and enforce Department of Labour policies.

2. Main Divisions of the Vote3. Employment and Skills Development

Services / Human Resources Development

DDG: E&SDS/HRD:

Ms. Adrienne Bird


3. E&SDS/HRD

Purpose:

Achieve the strategic objectives and equity targets of the national skills development strategy and contribute to the achievement of the strategic objectives of the National Human Resources Development Strategy.

2. Main Divisions of the Vote4. Labour Policy and Labour Market

Programmes

DDG: LP&LMP:

Mr. Les Kettledas

2. Main Divisions of the Vote4. LP&LMP

Purpose:

Establish an equitable and sound labour relations environment and promote South Africa’s interests in international labour matters through research, analysing and evaluating labour policy and providing data and statistics on the labour market, including providing support to the institutions that promote social dialogue.

2. Main Divisions of the Vote5. Social Insurance

DDG: LP&LMP:Mr. Les KettledasUnemployment Insurance Fund

DDG: Service Delivery:Mr. Phineas MothibaCompensation Fund

3. 2004/2005 EXPENDITURE INFORMATION


BRANCH ADJ. VOTE EXP.TO DATE AVAILABLE2004/2005 2004/2005 2004/2005

R'000 R'000 R'000ADMINISTRATION 268,037 198,827 69,210 SERVICE DELIVERY 487,797 383,214 104,583 EMPLOYMENT & SKILLS DEVELOPMENT SERVICES 135,972 103,460 32,512 LABOUR POLICY & LABOUR MARKET PROGRAMMES 315,351 276,878 38,473 SOCIAL INSURANCE 21,540 7,889 13,651

SUB-TOTAL 1,228,697 970,268 258,429

SECTORAL EDUCATION AND TRAINING AUTHORITIES 3,440,000 3,493,282 -53,282 NATIONAL SKILLS FUND 860,000 873,322 -13,322

SUB-TOTAL 4,300,000 4,366,604 -66,604

TOTAL 5,528,697 5,336,872 191,825

DEPARTMENT OF LABOUR: VOTE 17 2005/2006


050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

Admin. Serv. Del. E&SDS LP&LMP Soc. Ins.


GFS CLASSIFICATION ADJ. VOTE EXP.TO DATE AVAILABLE2004/2005 2004/2005 2004/2005

R'000 R'000 R'000COMPENSATION OF EMPLOYEES 411,617 346,788 64,829 GOODS AND SERVICES 377,220 291,733 85,487 TRANSFERS AND SUBSIDIES 337,636 298,101 39,535 PAYMENTS FOR CAPITAL ASSETS 102,224 33,646 68,578 SUB-TOTAL 1,228,697 970,268 258,429

STATUTORY AMOUNTS 4,300,000 4,366,604 -66,604

TOTAL 5,528,697 5,336,872 191,825


050,000

100,000150,000200,000250,000300,000350,000400,000450,000

Comp. ofEmpl.

Goods &Services

Trans. &Subs

Cap. Assets


GFS CLASSIFICATION VOTE EXPENDITURE TRANSFERS2004/2005 AS AT YET TO BE

28/02/2005 EXECUTEDR'000 R'000 R'000

TRANSFERS AND SUBSIDIESProvinces and municipalities 1,301 1,025 276 Departmental Agencies and accounts 318,357 286,363 31,994 National Skills Fund 37,973 28,480 9,493 National Productivity Insitute 23,247 23,247 - National Qualifications Framework - - - CCMA 172,651 172,651 - DITSELA 8,408 6,346 2,062 Subsidised Work-Centres for the Disabled 45,392 40,892 4,500 NEDLAC 9,146 6,860 2,287 UIF 7,000 - 7,000 CC 14,540 7,888 6,652

Foreign governments and international organisations 11,023 5,737 5,286 ILO 8,500 5,365 3,135 ARLAC 2,523 372 2,151

Non-profit insitutions 6,466 3,768 2,698 Subsidised Workshop for the Blind 5,970 3,389 2,581 SA National Council for the Blind 202 174 28 DEAFSA 132 69 63 National Council for the Physically Disabled 162 136 26 Households 489 1,208 (719) TOTAL 337,636 298,101 39,535

4. 2005/2006 MTEF ALLOCATIONS


BRANCH VOTE VOTE2004/2005 2005/2006 2006/2007 2007/2008

R'000 R'000 R'000 R'000ADMINISTRATION 268,037 274,282 292,487 310,112 SERVICE DELIVERY 487,797 539,275 589,566 622,143 E&SDS 135,972 147,179 174,728 182,565 LP&LMP 315,351 330,814 351,365 368,934 SOCIAL INSURANCE 21,540 22,427 23,353 24,171

SUB-TOTAL 1,228,697 1,313,977 1,431,499 1,507,925

SETAs 3,440,000 4,000,000 4,480,000 4,800,000 NATIONAL SKILLS FUND 860,000 1,000,000 1,120,000 1,200,000

SUB-TOTAL 4,300,000 5,000,000 5,600,000 6,000,000

TOTAL 5,528,697 6,313,977 7,031,499 7,507,925

BASELINE



274,282

539,275

147,179

330,814

22,427

0

100,000

200,000

300,000

400,000

500,000

600,000

Admin. Serv. Del. E&SDS LP&LMP Soc. Ins.


GFS CLASSIFICATION VOTE VOTE2004/2005 2005/2006 2006/2007 2007/2008

R'000 R'000 R'000 R'000COMPENSATION OF EMPLOYEES 411,617 512,400 555,503 584,528 GOODS AND SERVICES 377,220 378,639 411,105 436,510 TRANSFERS AND SUBSIDIES 337,636 350,368 387,888 406,033 PAYMENTS FOR CAPITAL ASSETS 102,224 72,570 77,003 80,854 SUB-TOTAL 1,228,697 1,313,977 1,431,499 1,507,925

STATUTORY AMOUNTS 4,300,000 5,000,000 5,600,000 6,000,000

TOTAL 5,528,697 6,313,977 7,031,499 7,507,925


BASELINE


512,400

378,639350,368

72,570

0

100,000

200,000

300,000

400,000

500,000

600,000

Comp. ofEmpl.

Goods &Services

Trans. &Subs

Cap. Assets

4. 2005/2006 MTEF AllocationsGFS CLASSIFICATION VOTE

2005/2006 2006/2007 2007/2008R'000 R'000 R'000

TRANSFERS AND SUBSIDIESDepartmental Agencies and accounts 336,214 372,520 389,896 National Skills Fund 40,251 42,666 44,799 National Productivity Insitute 23,934 25,369 26,637 National Qualifications Framework - 18,000 18,000 CCMA 187,945 197,306 207,172 DITSELA 8,912 9,447 9,919 Subsidised Work-Centres for the Disabled 34,866 36,960 38,808 NEDLAC 11,551 12,712 13,348 Subsidised Workshop for the Blind 6,328 6,707 7,042 UIF 7,000 7,000 7,000 CC 15,427 16,353 17,171

Foreign governments and international organisations 12,152 13,214 13,875 ILO 9,500 10,500 11,025 ARLAC 2,652 2,714 2,850

Non-profit insitutions 526 556 583 SA National Councilfor the Blind 214 226 237 DEAFSA 140 148 155 National Council for the Physically Disabled 172 182 191 SUB-TOTAL 348,892 386,290 404,354

BASELINE

5. PROJECTS PER MAIN DIVISION

5. Projects per Main Division• Administration

• Mobile Office Units:

An order has been placed for the delivery of 20 mobile office units. It is anticipated that these will be delivered to the Department by end April 2005.

5. Projects per Main Division• HRM:

Implementation of three Learnerships in DoL namely:

– ESDS 220 (18.2) and 18 (18.1) learners– Contact Centre Management 32 (18.2) learners– IES 221 (18.2) and 6 (18.1) learners

Implementation of the Internship Program

– 154 Interns participated in the program nationally.

5. Projects per Main Division• IT PPP:

A joint partnership between DoL and SBS

– SBS has been contracted to add business value to the DoL through the provisioning of technology according to a pre-agreed schedule of delivery against pre-agreed service lines.

– Costs are, inter alia, calculated based on the unitary fee attached to the number of PC’s in the DoL.

– Joint risk sharing with penalties for late delivery.

3.Employment and Skills Development Services / Human Resources Development

• Project 1 - NSDS 2005 – 2010• Aims to guide Skills development

implementation 01 April 2005 – 31 March 2010• Unveiled by the Minister at National Skills

Conference on 03 March 2005• Projected R21.9 billion to be spent during the

next 5 years• SETAs to receive R16.8 billion and NSF R5.2

billion


Project 2 - NSDS Implementation Report for 2004 - 2005

• Aims to consolidate and report on achievements of NSDS 2004/5 implementation and impact.

• To be published at the next National Skills Conference in the latter half of 2005.

• Include achievement and exhibitions from all SETAs, NSF and DoL Provincial Offices and Umsombomvu Youth Fund.


Project 3 – SETA Establishment

• Aims to establish SETAs for a second five year term period from 2005 - 2010

• 20 Certificates of Establishment handed out by Minister at National Skills Conference on 03 March 2005

• 5 SETAs in process of being amalgamated into 3 SETAs – Target Date 30 June 05

• Revision in progress of SETA Scope of Coverage and Levy Collection System


Project 4 – SETA Grant and Service Level Agreement Regulations

• Aims to establish a legal basis for funding of skills development through SETAs and the performance management of SETAs

• Regulations in process of being finalised by NSA and State Law Advisors for implementation by 1 April 2005.

• Regulations will control SETA spending of R16.8 billion over next five years

• Revisions in progress of quarterly and annual reporting processes from SETAs


Project 5 – SETA Support

• Aims to build capacity in SETA Governance and SETA Management Structures

• R 4 million from NSF to be spent on Board Performance Evaluation and Capacity Building Project

• Includes Implementation of Quality Learning Forum to support for example FET/HET Providers as well as SETA Financial and Risk Management processes


• Aims to re-position INDLELA as Institute of Excellence for• Apprentice and Learnership Assessments• Development of Master Artisans • Development of Technology Centre with Dept

of Science & Technology for Toolmakers• Projected R30 million programme budget to be

spent per year.

Project 6 – INDLELA


• Social Development Funding Window• Strategic Projects Funding Window• Skills support programme• Learnership funding window• Bursaries• Innovation and research• Capacity building of stakeholders• NSDS promotion

Project 7 – National Skills Fund


5. Projects per Main Division4. Labour Policy and Labour Market

Programmes

– Labour market research studies and publications approved.

• National Skills Survey.• Baseline evaluation of Learnerships.• Changing nature of work and atypical forms of

employment in South Africa.• Worker cooperatives and employment creation in

South Africa.• 2003 Industrial Action Report.

5. Projects per Main Division– International Relations.

On technical co-operation:

• China:

The Department hosted a delegation from China in September 2004, led by Vice-Minister BU Zengfa. Minister Mdladlana will lead a departmental delegation to China in May 2005 to further share and explore ideas on job/employment creation initiatives.


On technical co-operation:

• Cuba:

The Department hosted a delegation from Cuba in March 2004, led by Minister Morales. Both Ministers signed an agreement in the field of Labour. The Department is currently exploring the idea of sending officials to Cuba to learn from their experiences in Occupational Health and Safety and Employment Services.


International Labour Organisation:

• South Africa continues to be an active member of the ILO governing body, participating successfully in the ILO Conference in June 2004, and contributing to the broader global goals of poverty alleviation and the decent work agenda of the ILO.

Africa

• South Africa will be hosting the AU Labour and Social Affairs Commission from 18 – 23 April 2005

5. Projects per Main Division– Labour Relations.

Strengthening Civil Society:

• Trade Union capacity development programme: Supporting Ditsela, Workers College trade union federations and their affiliated unions in labour relations training.

• Sexual harassment education project – training people in the workplace about sexual harassment

• Funding for South African Labour Bulletin.• Funding for NOSA publications.

5. Projects per Main Division– Service Delivery.

Integration of OHS & Compensation competencies across government.

– Management reforms & restructuring of compensation fund

– LESEDI case management system P2– Career information and guidance system– Inspection and Enforcement Services

Mobility Project.

THANK YOU

department of labour presentation to the portfolio committee march 2005 director-general: dr. van...

Documents