department of labour presentation to the select committee on economic business development

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DEPARTMENT OF LABOUR

PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC BUSINESS

DEVELOPMENT WORKSHOP ON BUDGET REVIEW

22 JULY 2014

Table of contentsTable of contents1. Background on the Department of Labour

- Organizational structure- Vision & Mission- Legislative, Policy mandate and Amendments- Labour Market challenges- DOL capacity

2. Overview of DOL Programmes and Entities3. DOL Finances

- 2013/2014 Budget allocation and expenditure- 2014/15 budget allocation - challenges

4. DOL Strategic Plan 2014-2019 - Alignment with NDP and MTSF

5. DOL Programmes 2013 / 2014 Annual Performance Reports, 2014/15 Annual Performance Plans and Challenges

5.1 Programme 1 Administration 5.2 Programme 2 Inspection and Enforcement Services 5.3 Programme 3 Public Employment Services 5.4 Programme 4 Labour Policy and Industrial Relations

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1.1. DoL1.1. DoL’’s Top Organizational Structures Top Organizational Structure

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1.2. DoL1.2. DoL’’s Top Organizational s Top Organizational StructureStructure

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The Department of Labour will strive for a labour market which is conducive to

investment, economic growth, employment creation and

decent work

1.3. Our Vision 1.3. Our Vision

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1.4. Our mission1.4. Our mission

• Regulate the south African labour market for a Regulate the south African labour market for a sustainable economy through :sustainable economy through :– appropriate legislation and regulationsappropriate legislation and regulations– Inspections ,compliance monitoring and enforcement Inspections ,compliance monitoring and enforcement – Protection of human rightsProtection of human rights– Provision of employment servicesProvision of employment services– Promoting equityPromoting equity– Social and income protectionSocial and income protection– Social dialogueSocial dialogue

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1.5. Our Values

• We treat employees with care, dignity and respect • We respect and promote: - Client centred services - Accountability - Integrity and ethical behaviour - Learning and development • We live the Batho Pele Principles • We live the principles of the Department’s Service Charter • We inculcate these values through our performance

management system.

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1.6. Constitutional MandateThe DOL’s legislative framework is informed by the South African Constitution, Chapter 2 & Bill of Rights:

•Section 9, ensure equal access to opportunities•Section 10, promotion of labour standards & 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 & will being 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 & 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•Section 34, access to courts & access to fair and speedy labour jusctice

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1.7. Legislative and other Policy Mandates

The South African Constitution and related policies and prescripts, and learning from the various ILO Conventions and International Labour Standards, the Department of Labour administers the following labour legislation:

• Labour Relations Act 66 of 1995 (LRA);• The Basic Conditions of Employment Act 75 of 1997 (BCEA);• The Employment Equity Act 55 of 1998 (EEA);• The Unemployment Insurance Act 30 of 1996 (UIA);• The Occupational Health and Safety Act 85 of 1993 (OHSA); • The Compensation for Occupational Injuries and Diseases Act 130

of 1993 (COIDA); and • National Economic Development and Labour Council (NEDLAC)

Act, 35 of 1994.• Employment Services Act (Act No. 4 of 2014)

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1.8. Progress on legislative amendments

1. Basic Conditions of Employment Act, Act No.20 of 2013- Promulgation target date : July 2014

2. Employment Equity Act, Act No. 47 of 2013- Regulations that include method and criteria for equal pay for work of

equal value finalised at NEDLAC - Promulgation target date: July 2014

3. Labour Relations Amendment Bill, 2012- Currently with the State President for his assent- Draft Regulations are being finalised

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1.9. Progress on legislative amendments

4. Employment Services Act, Act No.4 of 2014-Promulgation of chapters 1, 2, 4, 5 and 6 target date: July 2014

5.Unemployment Insurance Fund Amendment Bill NEDLAC report and Cabinet approved Bill referred to Parliament

6. During 2014/2015 the Department will finalise proposed amendments to:- Occupational Health and Safety Act and - Compensation for Occupational Injuries and Diseases Act

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1.10. Challenges that DOL face in the Labour Market

• Unemployment and under employment• Changing nature of work• Inequalities and unfair discrimination• Domestic and cross border labour migration• Inadequate instruments for constant

performance, monitoring and evaluation of labour market and programmes to determine their impact on the economy

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Major economic hub: 18 178 sq kmPopulation 12 272 263; employed 4 794 000, unemployed 1 669 000 and 25.8% unemployment rate in March 2014)

GDP 34.7% contribution to SA economyHighest labour absorption

2nd largest - SA economy with 94 361 sq km, 10 267 300 people, 2 527 000 employed and 20.7% unemployment rate (659 000 unemployed) in March 2014 GDP 15.8%

Smallest GDP growth & economic contribution with 1 145 861 people, 372 889 sq km, 29% unemployment

rate (126 000 unemployed) and 308 000employed in March 2014. GDP 2.2 %

Land area: 125 754 sq km; Pop. 5 404 868; 1 136000 employed and 256 000 unemployed (18.4% unemployment rate) in March 2014. GDP 7.1%

Population: 4 039 939; land area 76 495 sq km; 30.4% unemployment rate (492 000 unemployed); and 1 127 000 employed in March 2014 GDP 7.1%

3rd largest - SA economy with 5 822 734 people living in 129 462 sq km, 2 237 000 employed, 20.9% unemployment rate (593 000 unemployed) in March 2014. GDP 14%

Population: 6 562 053land area 168 966 sq km; 29.4% unemployment rate ( 556 000 unemployed); and 1 332 000 employed in March 2014, GDP 7.5%

Population: 2 745 590 landarea 129 825 sq km

34.7%unemployment rate(384 000 unemployed); and

724 000 employed in March 2014. GDP 5.2%

Population: 3 509 953land area 104 882 sq km; 27.7% unemployment rate (333 000

unemployed); and 870 000 employed in March 2014GDP 6.4%

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GautengGauteng

LimpopoLimpopo

MpumalangaMpumalanga

North WestNorth West

Free StateFree State KwaZuluNatal

KwaZuluNatal

Northern CapeNorthern Cape

Western CapeWestern Cape

Eastern CapeEastern Cape

1.12. DOL Offices across the country- HQ and 2 Funds in Pretoria-9 DoL Provincial Offices - 126 Labour Centres-17 Mobile Units to access remote area visiting points-2 well equipped PES Busses -Provide services in 72 out of 139 Thusong Centres once a week12 SEF Factories in 7 Provinces -(Except in MP & L)

1.12. DOL Offices across the country- HQ and 2 Funds in Pretoria-9 DoL Provincial Offices - 126 Labour Centres-17 Mobile Units to access remote area visiting points-2 well equipped PES Busses -Provide services in 72 out of 139 Thusong Centres once a week12 SEF Factories in 7 Provinces -(Except in MP & L)

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4. DEPARTMENT OF LABOUR PROGRAMMES: 2010/11

DoL programmes are as follows:

1. Programme 1: Administration: Ministry; Deputy Minister, Director General’s Office; Corporate Services (CS), Chief Operations Officer (COO), Chief Financial Officer (CFO)

2. Programme 2: Inspection and Enforcement Services (IES)

3. Programme 3: Public Employment Services

4. Programme 4: Labour Market Policy & Industrial Relations

5. Protected Employment Enterprises (currently trading as Sheltered Employment Factories

6. Unemployment Insurance Fund (Schedule 3A Public Entity)

7. Compensation Fund (Schedule 3A Public Entity)

2. 2. Department of Labour Programmes Department of Labour Programmes 2014/20152014/2015

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2.1. Public Entities Associated with DOL

Entities established in terms of various legislations to assist DOL to meet its mandate:

•Unemployment Insurance Fund (UIF)•Compensation Fund (CF)•Protected Employment Enterprises (currently trading as Sheltered Employment Factories[SEF])•Commission for Conciliation, Mediation and Arbitration (CCMA)•National Economic Development and Labour Council (NEDLAC)•Productivity South Africa (Productivity SA)

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UNEMPLOYMENT INSURANCE FUND

JOB CREATION INITIATIVES

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Strategic Objective 1: Fund Poverty Strategic Objective 1: Fund Poverty Alleviation Schemes Alleviation Schemes

• The Minister of Labour approved and launched 9 training initiatives and committed R300 million for training of these unemployed beneficiaries.

• • The R 4 billion UIF/IDC partnership has resulted in 21,192 jobs

saved and 23,268 jobs created since the inception of the partnership in 2009.

• The proposal to create a Labour Activation Fund was submitted to the Minister on 31 March 2014 and approval to

proceed to the next step of feasibility approved.

Unemployment Insurance Fund

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The UIF operates under the following Strategic Objectives:

Fund Poverty Alleviation Schemes

Improve Governance

Strengthen the Institutional Capacity of the Fund

Encourage Compliance through Service Delivery

Improve Stakeholder Relations

Strategic Objective 1: Fund Poverty Alleviation Schemes

• The Minister of Labour approved and launched 9 training initiatives and committed R300 million for training of these unemployed beneficiaries.

• • The R 4 billion UIF/IDC partnership has resulted in 21,192 jobs

saved and 23,268 jobs created since the inception of the partnership in 2009.

• The proposal to create a Labour Activation Fund was submitted to the Minister on 31 March 2014 and approval to

proceed to the next step of feasibility approved.

Strategic Objective 2: Improve Strategic Objective 2: Improve GovernanceGovernance

• 90% of all fraudulent cases were investigated and finalized during the financial year

• Internal Audit were conducted in 28 offices with 90% of reports presented to and signed off by management. Implementation of improvement recommendations is in progress.

JOB CREATION INITIATIVES:CONTRIBUTION TO NDP

TRAINING OF THE UNEMPLOYED• In December 2013, the Minister of Labour approved and launched 9

training initiatives and committed R300 million for training of these unemployed beneficiaries. About 8000 unemployed beneficiaries are targeted.

• During the 2013/14 financial year training schemes, which had been approved in prior year were implemented.

• Proposal for the establishment of Labour Activation Fund approved. The next step in this current year is to undertake a feasibility study and submit the report to the Minister.

• The Fund has signed a three year funding agreement with Productivity South Africa to fund the Turnaround Solutions. R 41 million was paid in 2013/14 and R58 million will be paid in 2014/15.

TRAINING OF THE UNEMPLOYED

SOCIAL RESPONSIBLE INVESTMENTSOCIAL RESPONSIBLE INVESTMENT

UIF SRI FUND•10% of the Investment Portfolio invested in Socially Responsible Investments •A R3 billion SRI Fund was established with the PIC to invest in job creation projects.•Within the SRI Fund, an Agriculture Fund has been established to invest in agricultural infrastructure and infrastructural land where jobs will be created

UIF/IDC BOND•Since inception in 2009, there have been 218 approved deals (net of cancellations) with a total value of approx. R3.524 billion; •Total Jobs created = 23 268;•Jobs saved = 21 192; •Combined created and saved jobs of 44 460;

SOCIAL RESPONSIBLE INVESTMENTSOCIAL RESPONSIBLE INVESTMENT

COMPENSATION FUND

IMPLEMENT TURN AROUND AND

MORDENISATION STRATEGY

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SERVICE DELIVERY OUTCOMES

Government Service Delivery Outcomes

DOL Strategic Objectives

CF Strategic Outcomes CF Strategic Objectives

Outcome 4: Decent employment through inclusive economic growth

Strategic Objective 3: Protecting vulnerable workers

Participate in government initiatives of creating and sustaining decent employment

Promote policy advocacy

Integration of CF with the comprehensive social security reforms

Strategic Objective 5: Strengthening social protection

Improve payment of benefits to the beneficiaries of the Fund

Providing an efficient social safety net

Improve collection of revenue from employers

Improve financial viability

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

Effective administration of the Fund’s operations

Provide professional, efficient and client orientated human resources

Strengthening Corporate Governance

Improve corporate support and services

Enhance quality and access to COIDA services and information

CHALLENGES

• Inefficient IT Systems.

• Turnaround times in processing of compensation claims.

• Backlog in processing claims and payments.

• Delay and/or non-reporting of accidents.

• Human capacity constraints.

• Document management.

• Records management system.

• Centralised IT and post EOH contract.

• Non-compliance by stakeholders in relation to incomplete information by employers, delays in the submission of banking details by beneficiaries and employers that fail to submit their annual returns

• Fraudulent activities are still negatively affecting the finalisation of employer assessments and the debt book continues to increase.

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PRIORITIES FOR 2014/15

• Implement a Turnaround and Modernisation Strategy by:

• Conduct a scoping exercise on the ICT environment

• Establishing of the Programme Management Office

• Implementing business process re-engineering

• Finalising of the decentralisation process including the placement of staff and resettlement to provinces

• Implementing the Umehluko claims processing system

• Investing in Socially Responsible Investment as part of the implementation of the Government’s Medium Term Strategic Framework 2014-2019

• Exploring ways to strengthen the capacity of DoL to conduct payroll audits

• Implementing a comprehensive plan to address the disclaimer audit opinions

• Finalising the amendments to COIDA

• Improving human resource capacity through recruitment and capacity development

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NEDLAC

KEY ENGAGEMENTS IN CHAMBERS

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Objectives of Nedlac

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Strive to promote the goals of economic growth, participation in economic decision-making, social equity

Seek to reach consensus and conclude agreements on matters pertaining to social and economic policy

Consider all proposed labour legislation relating to labour market policy before it is implemented or introduced in Parliament

Consider all significant changes to social and economic policy before it is implemented or introduced in Parliament

Encourage and promote the formulation of coordinated policy on social and economic matters

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994

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Composite Summary

Matters on APP Arising matters

Category Number tabled

Number concluded

Number tabled

Number concluded

Legislation 3 3 100% 8 5 63%

Policy 17 15 88% 5 5 100%

Section 77 Notices - - - 10 7 70%

FRIDGE Research 2 3 150% - - -

Demarcations - - - 31 31 100%

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Key engagements in Chambers

Development Chamber

Labour Market Chamber

Public Finance and Monetary

Policy Chamber

Trade and Industry Chamber

Where are we Now?

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20 Years of Democracy Nedlac has made a significant impact on Policy, Legislative and Institutional Design -Improved performance and Output

Social Dialogue is under pressure – role and relevance of Nedlac questioned. Adversarialism , Trust and Consensus Deficit

Labour Market Key - Fragmentation , Conflict Skills and Social Protection Challenges

Limited socio-economic impact. - Triple Challenge Employment , Inequality and Poverty

CCMA

REVOLUTIONISING WORKPLACE RELATIONS

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MANDATORY STATUTORY FUNCTIONS

CCMA Revolutionizing Workplace Relations 38

DISCRETIONARY STATUTORY FUNCTIONS


ParliamentParliamentExecutive Authority Executive Authority Minister of LabourMinister of Labour

Organized LabourOrganized Labour

Organized Organized BusinessBusiness

DirectorDirector

Essential Services Essential Services CommitteeCommittee

Governance, Social and Governance, Social and Ethics Committee Ethics Committee

Governing Governing BodyBody Audit CommitteeAudit Committee

Accreditation & Subsidy Accreditation & Subsidy CommitteeCommittee

Human Resource and Human Resource and Remuneration CommitteeRemuneration Committee

Finance and Risk Finance and Risk CommitteeCommittee

Commissioners & Commissioners & StaffStaff


GovernmentGovernment

Governance Environment

GOALS AND STRATEGIC OBJECTIVES


CASELOAD


CASE DISTRIBUTION BY SECTOR 2013-2014


LABOUR LAWS AMENDMENTS

• In preparing for these amendments, the CCMA has undertaken a number of activities in order to make sure that the organization is ready to implement these proposed changes to employment laws. – A national task team led by the Director of the CCMA has been

established comprising of experienced commissioners, internal and external technical experts.

– Specialist working groups have been established that focus on the most complex sections of the bill such as organizational rights disputes, essential services, temporary employment services, equal pay for work of equal value(specialist commissioner panels)

– Training material has been developed– Training has been delivered nationally and is ongoing(also to

stakeholders)– Governing Body sub committee is working on Amendments and

updating of CCMA rules – Regulations and forms are also being updated with DOL– Communication plan and advocacy programme developed


PRODUCTIVITY SOUTH AFRICA

INSPIRING A COMPETITIVE SOUTH AFRICA

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STRATEGIC PROGRAMMES

1. Work Place Challenge

2. Productivity Organisational Solutions

3. Turnaround Solutions

4. Productivity Awareness

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Work Place Challenge targets 2014/15

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POS targets 2014/15

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Turnaround Solutions targets 2014/15

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Productivity Awareness targets 2014/15

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TRANSFERS RECEIVED

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INSTITUTION PROGRAMME R’000 %

DOL PRODUCTIVITY SA 43 119 35.4

DTI WORKPLACE CHALLENGE 9 170 7.5

UIF TURNAROUND STRATEGY 69 400 57.0

TOTAL TRANSFERS 121 689 100

HIGHLIGHTS

•Increase in self-generated (own) revenue.

•Strategic partnership with various institutions enabling Productivity SA to carry out its mandate.

•Raising the profile of Productivity SA brand by being in media discussions on productivity discourse, resulting in significant media coverage.

•Capacitation program in the Mining sector that ensures the setting up of the future forum as per the mining regulation aimed at bringing about amiable relations between labor and management .

•Implementation of the Green Productivity Toolkit through Workplace Challenge

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3. DEPARTMENT OF LABOUR

FINANCIAL REPORT 2013/14 and 2014/15

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3.1. BUDGET ALLOCATION 2013/14DEPARTMENT OF LABOUR

FinalAppropriation

ActualPayment

Payment as % of final

appropriation R'000 R'000 %

Current payments Compensation to employees 876 995 866 137 98.8% Goods and services 666 248 603 491 90.6% Interest and rent on land - - 0.0% Financial transactions in assets and libilities 18 137 18 137 100.0% Transfers & subsidies Provinces & municipalities 447 447 100.0% Departmental agencies & accounts 676 206 676 182 100.0% Universities & technikons - - 0.0% Foreign governments & international organisations 15 914 15 914 100.0% Public corporations & private enterprises - - 0.0% Non-profit institutions 127 702 127 702 100.0% Households 3 136 3 135 100.0% Gifts and donations - - 0.0% Payment on capital assets Buildings & other fixed structures 1 548 1 548 100.0% Machinery & equipment 58 914 58 751 99.7% Biological or cultivated assets - - 0.0% Software & other intangible assets - - 0.0% Land & subsoil assets - - 0.0% Total 2 445 247 2 371 444 97.0%

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3.2. UNAUDITED EXPENDITURE RESULTS 2013/14

APPROPRIATION '000

EXP. AS AT 31 MARCH 2014

'000

AVAILABLE BUDGET

'000 % SPENT1 ADMINISTRATION 840 449 795 870 44 579 95%2 INSPECTION AND ENFORCEMENT SERVICES 426 811 412 213 14 598 97%3 PUBLIC EMPLOYMENT SERVICES 413 496 413 495 1 100%4 LABOUR POLICY AND INDUSTRIAL RELATIONS 764 491 749 866 14 625 98%

2 445 247 2 371 444 73 803 97%

PROGRAMME

Total expenditure

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Original Budget

2014/15

R'000

Current Payments 1 553 963

Compensation of Employees 966 516 Goods and Services 587 447 Current transfers and subsidies 942 351

Provincial and Local Governments 2 Departmental Agencies and Accounts 774 940 Foreign Gov&International Organ 16 461 Non Profit Institutions (NPI) 150 652 Households (HH) 296 Payments for capital assets 30 978

Buildings & Other Fix Struct 17 Machinery and Equipment 30 961 Grand Total 2 527 292

Standard Item

3.3. BUDGET ALLOCATION 2014/15

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3.4. 2014/15 BUDGET PER PROGRAMME

Programme Original Budget

2014/15

R'000

Administration 787 694

Inspection & Enforcement Services 403 174

Public Employment Services 466 533

Labour Policy & Ind Relations 869 891

Grand Total 2 527 292

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The 2014 budget was decreased by R106 R106 million million of which R63 million was on of which R63 million was on Compensation of Employees.Compensation of Employees.

– (60%) of the reduction was meant for capacitation (60%) of the reduction was meant for capacitation of the Inspectorateof the Inspectorate

– the remaining (40%) was meant for the the remaining (40%) was meant for the capacitation of IT services staff that were to be capacitation of IT services staff that were to be absorbed from the IT Public Private Partner at the absorbed from the IT Public Private Partner at the end of the contract. end of the contract.

3.5. BUDGET REVIEW 2014/15

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3.6. MEDIUM TERM EXPENDITURE FRAMEWORK (MTEF)

Labour

Programme 2015/16 2016/17 2017/18

R thousand

1. Administration 829 888 956 764 1 010 551

2. Inspection and Enforcement Serv ices 433 093 600 179 636 761

3. Public Employ ment Serv ices 489 192 514 744 543 899

4. Labour Policy and Industrial Relations 926 218 976 363 1 026 339

Subtotal 2 678 391 3 048 050 3 217 550

Indicative Medium-term allocation (MTEF 2015)

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3.7. MTEFEconomic classification

Current payments 1 644 599 1 959 468 2 074 540

Compensation of employ ees 1 033 371 1 315 505 1 398 382

Goods and serv ices 611 228 643 963 676 158

Interest and rent on land – – –

Transfers and subsidies 1 001 456 1 054 533 1 107 259

Prov inces and municipalities 2 2 2

Departmental agencies and accounts 826 395 870 194 913 704

Foreign gov ernments and international organisations 17 344 18 264 19 177

Non-profit institutions 157 406 165 747 174 034

Households 309 326 342

Payments for capital assets 32 336 34 049 35 751

Buildings and other fix ed structures – – –

Machinery and equipment 32 336 34 049 35 751

Total 2 678 391 3 048 050 3 217 550

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3.8. FUNDING CHALLENGES

Spending pressures, strengthening of existing programmes and new priorities:

•Implementation of the new Employment Services Act No.4 of 2014 •Funding of the Office of the Chief Information Officer•Funding of Inspection and Enforcement Services•Funding of the new Deputy Minister’s office

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4. Department of Labour Strategic Plan

2014 – 2019

Alignment with Medium Term Strategic Framework (MTSF) and the

National Development Plan (NDP)

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4.1. MEDIUM TERM STRATEGIC FRAMEWORK (MTSF) 14 OUTCOMES

*DOL also contributes to outcomes highlighted in Red*

• Outcome 1: Quality basic education• Outcome 2: A long & healthy life for all South Africans• Outcome 3: All people in South Africa are & feel safe• Outcome 4: Decent employment through inclusive

growth• Outcome 5: Skilled & capable workforce to support an

inclusive growth path• Outcome 6: An efficient, competitive & responsive

economic infrastructure network• Outcome 7: Vibrant, equitable, sustainable rural

communities contributing towards food security for all

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4.2. MEDIUM TERM STRATEGIC FRAMEWORK (MTSF) 14 OUTCOMES 14 OUTCOMES

• Outcome 8: Sustainable human settlements & improved quality of household life

• Outcome 9: Responsive, accountable, effective & efficient local government

• Outcome 10: Protect & enhance our environmental assets & natural resources

• Outcome 11: Create a better South Africa, a better Africa & a better world

• Outcome 12: An efficient, effective & development oriented public service

• Outcome 13: Social protection• Outcome 14: Nation building & social cohesion

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4.3. Alignment of the DoL Strategic Plan to NDP and MTSF

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NDPNDP MTSFMTSF THE DEPARTMENT OF LABOUR STRATEGIC PLANTHE DEPARTMENT OF LABOUR STRATEGIC PLANSTRATEGIC OBJECTIVE INDICATOR ANNUAL

PERFORMANCE PLAN (APP) YEAR 1 TARGETS

Growing an inclusive economy

Outcome 2: Long and healthy life for all South Africans

1: Promote Occupational health services

Number of entities audited per year in terms of the OHSA

150


2: Contribute to decent employment creation

Number of work-seekers placed in registered employment opportunities

20 000

3: Protect vulnerable workers Establish basic standards and minimum wages

Number of existing and new sectoral determinations reviewed and investigated

Number of workplaces inspected per year to determine compliance with labour legislation

Review two Sectoral Determinations by March 2015. One new sector investigated for possible setting of minimum wages and conditions of employment by 30 Sept 2014

Start investigation for Domestic and Farm workers Provident Fund by 2015 149 154

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NDPNDP MTSFMTSF THE DEPARTMENT OF LABOUR STRATEGIC PLANTHE DEPARTMENT OF LABOUR STRATEGIC PLANSTRATEGIC OBJECTIVE

INDICATOR APP YR 1 TARGETS

Growing and inclusive economy


5: Strengthen occupational safety protection

Percentage of entities registered per year in terms of the OHSA

2000

6: Promote sound labour relations

Number of Collective agreements extended within 60 days of receipt

17

7: Monitor the impact of legislation

A number of labour market trends and research reports produced

8 (4 Annual Labour Market Trend reports and 4 Internal Statistical Trend reports compiled)

Outcome 13: Social protection

9. Development of the Occupational Health and Safety policies

Occupational Health and Safety Act and regulations amended

OHS Amendment Bill submitted to NEDLAC Amend 2 regulations

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4.5. Alignment of the DoL Strategic Plan to NDP and MTSFNDPNDP MTSFMTSF THE DEPARTMENT OF LABOUR STRATEGIC PLANTHE DEPARTMENT OF LABOUR STRATEGIC PLAN

STRATEGIC OBJECTIVE


Growing and inclusive economy

Outcome 14: Nation building and social cohesion

10. Promote Equity in the labour market

Employment Equity Amendment Act implemented and evaluated within set time frame

Number of designated employers reviewed per year to determine compliance with employment equity legislation

Amended EE Regulations published Draft Code on Equal Pay published for public comment Conduct 9 workshops on amended EEA and regulations

517

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Build capabilities Outcome 4: Decent employment through inclusive economic growth


Number of work-seekers registered on ESSA system per year Number of vacancies and opportunities registered on ESSA

550 000 55 000

Outcome 5: Skilled and capable workforce to support an inclusive growth path


Number of registered work-seekers provided with employment counselling

220 000

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Capable and developmental state

Outcome 11: Create a better South Africa, a better Africa and a better world

4 Strengthen multilateral and bilateral relations

A Number of reports submitted and Memoranda of Understanding signed

Monitor implementation of 4 signed MOUs and submit quarterly reports

Outcome 12: An efficient, effective and development oriented public service

8: Strengthen the institutional capacity of the Department of the Department

Percentage of staff trained in line with Workplace Skills Plan (WSP) by 31 March

87%

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5. Department of Labour Programmes

• 5.1 Programme 1 Administration

• 2013 / 2014 Annual Performance Report and challenges

• 2014/2015 Annual Performance Plan.

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5.1. Programme 1 :Administration5.1. Programme 1 :Administration

• Ministry and Deputy Ministry:Ministry and Deputy Ministry: provides oversight to ensure that provides oversight to ensure that the Department’s mandate is achieved.the Department’s mandate is achieved.

• Director-General:Director-General: provides administrative oversight for effective provides administrative oversight for effective implementation of the Department’s mandate & overall implementation of the Department’s mandate & overall accounting.accounting.

• Chief Operations Officer:Chief Operations Officer: Provides oversight on service delivery, Provides oversight on service delivery, coordination of performance planning, monitoring & evaluation, coordination of performance planning, monitoring & evaluation, reporting.reporting.

• Corporate Services:Corporate Services: provides support services that includes: provides support services that includes: Human Resources Management (HRM), Communication, Human Resources Management (HRM), Communication, Information Communication Technology (ICT), Legal Services, Information Communication Technology (ICT), Legal Services, Internal Audit, Risk Management and Security.Internal Audit, Risk Management and Security.

• Chief Financial OfficerChief Financial Officer provides financial management, provides financial management, transport & accommodation support services.transport & accommodation support services.

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5.1.1. Program 1: 2013/14 Annual Performance Report

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

KEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS

ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS ChallengesChallenges

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

90% final reports issued as per timeframes indicated in the approved annual audit plan

87% (27 planned and 31 finalised/issued) was achieved

High staff turnover in the Internal Audit Directorate resulted in 2 reports not finalised on time. The 1 outstanding report is in the final draft stage awaiting the final comment from management.

2. Percentage of fraud cases received and detected and finalised per year

90% 75% (40 cases received, and 30 finalised) finalised by end of the year.

The 10 cases that remained outstanding were due to lack of capacity and skill to investigate DoL cases.

3. Number of security awareness conducted within a specified time

Security awarenessconducted in 5 provinces

Security awareness was conducted at:

Western Cape; Free State; Limpopo; North West, and Mpumalanga province. 72

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5.1.2. 2013/14 Annual Performance Report

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

INDICATORSINDICATORSANNUAL ANNUAL TARGETSTARGETS

PROGRESSPROGRESS ChallengesChallenges

4. Percentage of (a) women in SMS, (b) youth and(c) people with disability (PwD) employed in line with the EE Plan by 31 March each year

(a) 45%

(b) 43%

(c) 3%

As on 31 March 2014 : a) 38.5% of women employed at SMS level at the end of March 2014. This was calculated based on a total count of 40 women against 104 SMS members on the DoL establishment.

b) 32.9% of youth employed in the Department at the time of reporting. This was calculated based on a total count of 2508 youth against 7621 employees on the DoL establishment).

c) 2.5% of PWD employed on DoL establishment at the time of reporting. (This was calculated based on a total count of 191 PWD against a total of 7621 employees on the DoL establishment).

a) The number of women at SMS level increased from 33 to 40 during the reporting period.

b) Changes in the organisational structure and the high attrition rate in this category.

c) The additional posts that were created during this performance cycle. However, the 2.5% is above the national target of 2% for the public service.

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5.1.3. 2013/14 Annual Performance Report

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 INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS ChallengesChallenges5. Reduction in percentage vacancy rates by 31 March

Vacancy rate reduced to 6%

The vacancy rate at the end of March 2014 was 12.9%.

The establishment grew from 8062 posts to 8755 posts during the financial year.

6. Percentage of staff trained in line with Workplace SkillsPlan (WSP) by 31 March

85% 88% (4 542 of the 5 152 planned ) staff was trained by end March 2014.

7. Percentage of misconduct cases finalised in line with applicable prescripts by 31 March

77% 67% There were numerous fraud cases that took longer than anticipated.

8. Percentage of Court Papers to resolve litigation filed with the Court within 10 days of receipt

80% Of the 67 cases received, 48 (72%) were resolved within 10 days.

IES Cases were mostly handled outside the 10 day. The reason being that documents were outstanding from the Provinces and the cases could not proceed without the file being complete.

74

5.1.4. Administration Annual Performance Plan 2014/15

Strategic Objectives Programme performance indicator Medium Term Targets

2014/15

1 Provide leadership and institutional management to the Department of Labour and Entities

1.1 Strategic leadership and guidance provided Quarterly, mid- term and annual performance reviews held

2 Provide integrated business and service delivery solutions

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

Strategic Plan and Annual Performance Plan approved by end of January for tabling in Parliament by 31 March

2.2 Percentage of organisational performance improves per year 65% improvement of the organisational performance

2.3 Improve the Department’s performance based on the

Management Performance Assessment Tool (M-PAT) assessment criteria Comply with 45% of the M-PAT standards

15% of total DoL M-PAT standards per KPI at level 4 and 30% standards at level 3

2.4 Service Delivery Improvement Plan (SDIP) coordinated for

approval by March SDIP submitted for approval by March 2015

3 Risk Management Strategy implemented 3.1 Number of Strategic risk reviews and monitoring compiled and submitted for the approval by the Accounting Officer within 30 days of each quarter

4

4 Fraud Prevention & Security Strategy implemented 4.1 Percentage of fraud cases received or detected finalized per year.

92%

4.2 Number of fraud prevention awareness campaigns conducted 4

4.3 Percentage reduction in security breaches/ incidents 65% 75

5.1.5.Administration Annual Performance Plan 2014/15


2014/155 Departmental interventions

and initiatives communicated5.1 Number of exhibitions held to profile the services of the Department per annum

10

5.2 Number of service delivery points branded and signage displayed per selected province

10 Labour Centres in 2 Provinces

5.3 Turnaround time to respond to media queries Media queries responded to within 24 hours

6 Integrated human resource strategy implemented

6.1 Percentage of (a) women in SMS, (b) youth and (c) people with disability (PwD) employed in line with the EE Plan by 31 March each year

(a) 45% (b) 36% (c) 3%

6.2 Percentage of vacancy rate reduced by 31 March 10%

6.3 Percentage of staff trained in line with Workplace Skills Plan (WSP) by 31 March

87%

6.4 Percentage of misconduct cases finalised in line with applicable prescripts by 31 March

80%

6.5 Percentage of employees (a) SMS and (b) MMS and lower entered into performance agreement and assessed within the time frames

95%

7 Effective Legal support services 7.1 Percentage of Court Papers to resolve Litigation filed with the Court within 10 working days of receipt

90%

76

5.1.6. Administration Annual Performance Plan 2014/15


2014/15

8 Information Communication Technology support services provided

8.1 Annually review and implement the ICT strategy of the Department

Implementation of the governance model

9 Sound financial management 9.1 Number of financial statements compiled per year that comply with guidelines issued by the National Treasury.

1 Annual report by 31 May, and 4 Interim reports 30 days after each quarter.

9.2 Medium Term Expenditure Framework (MTEF) and Estimates of National Expenditure (ENE) prepared according to National Treasury (NT) prescripts

Departmental budget compiled and published

9.3 Percentage reduction of audit findings 50%

10 Effective and efficient Sound Supply chain management

10.1 Percentage of compliant invoices paid within 30 days of receipt

100%

10.2 Percentage reduction of transgression in irregular expenditure compared to previous year

60%

77

5.1.7. The DoL EstablishmentEstablishment Report - dated 11/06/2014

Filled Posts Vacant Posts Contract Filled Contract Vacant Total: All posts on

Establishment Vacancy Rate

Sum Dol 3 137 338 6 10 3 490 10.1%

Sum UI 2 688 194 23 1 2 907 7.3%

Sum CF 922 291 0 - 1 213 28.5%

Total 6 747 823 29 11 7 610 11.9%

Establishment Report - dated 11/06/2014

Filled Posts Vacant Posts Contract Filled Contract Vacant Total: All posts on

Establishment Vacancy Rate

Eastern Cape 728 71 - - 799 9.2%Free State 449 63 4 - 516 13.3%Gauteng 1 487 117 - - 1 604 8.5%Kwazulu Natal 968 107 - - 1 075 10.7%Limpopo Province 464 58 10 - 532 10.5%Mpumalanga 473 45 10 1 529 10.9%Northern Cape 291 40 - - 331 12.5%North West 395 59 - - 454 14.5%Western Cape 682 107 - - 789 15.6%Total 6 747 823 29 11 7 610 11.9%

78

5.2. Programme 2: Inspection and Enforcement Services (IES)

2013 / 2014 Annual Performance,

2014/2015 Annual Performance Plan and

Challenges 79

5.2.1. Programme 2 :Inspections and 5.2.1. Programme 2 :Inspections and Enforcement ServicesEnforcement Services

• IES examine national labour standards application in the workplace IES examine national labour standards application in the workplace through inspection and enforcement of labour legislation and educates through inspection and enforcement of labour legislation and educates and advise social partners on labour market policies and advise social partners on labour market policies

• The staff complement across the country consist of a total of 830 The staff complement across the country consist of a total of 830 inspectors of which 160 are Occupational Health and Safety (OHS) inspectors of which 160 are Occupational Health and Safety (OHS) inspectors, 336 Inspector Team Leaders, 75 Principal Inspectors. As of end inspectors, 336 Inspector Team Leaders, 75 Principal Inspectors. As of end of June 2014 there were 129 vacancies.of June 2014 there were 129 vacancies.

• Ratio of South African Inspectors to other developing countries is very Ratio of South African Inspectors to other developing countries is very high and does not assist in ensuring effective enforcement of OHS Act high and does not assist in ensuring effective enforcement of OHS Act provisions. Currently (1) one SA inspector is responsible for 114 000 provisions. Currently (1) one SA inspector is responsible for 114 000 entities compared (1) inspector responsible for an average of 20 000 entities compared (1) inspector responsible for an average of 20 000 entities in other developing countries.entities in other developing countries.

80

2013/14 IES Annual Performance Report against selected Indicators

5.2.2. Promoting Equity in the Labour Market

Prov.Target (Public)

Actual (Public)

Var.Target (Private)

Actual (Private)

Var.

EC 9 15 6 26 40 14FS 7 16 9 17 35 18GP 30 41 11 48 53 5KZN 30 27 -3 44 45 8LP 10 18 8 21 23 2MP 7 14 7 17 21 4NC 5 10 5 9 12 3NW 13 9 4 10 14 4WC 9 8 -1 28 34 6TOTAL 120 158 38 220 277 57

81

5.2.3. Protection of vulnerable workers

Prov. Target Actual inspected Actual complied

% complied No. not complying

EC 11433 14832 10208 69% 4624

FS 8460 10010 9203 92% 807

GP 17370 32823 28489 87% 4334

KZN 16470 23060 16198 70% 6862

LP 10890 10842 6404 59% 4438

MP 7741 10155 8314 82% 1841

NC 3961 5480 4833 88% 647

NW 5400 9371 6910 74% 2461

WC 8275 12686 6967 55% 5719

TOTAL 90000 129259 97526 75% 31733

82

5.2.4. Complaints Management

Prov. Target No. received No. resolved % resolved

EC 75% 5057 2308 46%

FS 75% 5818 4854 83%

GP 75% 42034 26035 62%

KZN 75% 12878 10002 78%

LP 75% 9326 5789 62%

MP 75% 11808 9104 77%

NC 75% 2707 1040 38%

NW 75% 4882 3547 73%

WC 75% 5506 3264 59%

TOTAL 75% 100016 65943 66%

83

5.2.5. Strengthening Social Security

Prov. Target Actual audited

Actual complied

% complied No. not complying

EC 2459 3109 2349 76% 760

FS 1790 1357 1102 81% 255

GP 17903 10466 8991 86% 1475

KZN 14113 9941 6015 61% 3926

LP 5496 2356 1866 79% 490

MP 3125 2454 2007 82% 447

NC 2392 618 494 80% 124

NW 4062 2590 2052 79% 538

WC 8360 2283 1305 57% 978

TOTAL 59700 35174 26181 74% 8993

84

5.2.6. IES 2014/15 Annual Performance Plan

IES Contribution to Medium Term Strategic Framework (MTSF) Outcomes:•Transforming Society and uniting the Nation

- Promote Equity in the labour market•Decent employment through inclusive economic growth

- Protect vulnerable workers- Strengthen occupational safety protection

•A long and healthy life for all- Promote Occupational health services

•Social Protection - Development of the Occupational Health and Safety

policies

85

5.2.7. Performance Indicators and Quarterly targets for 2014-2015

86


KP1 A/Q ANNUAL Q1 Q2 Q3 Q4

3.2 Percentage of non-complying workplaces inspected in reference to 3.1 dealt with in terms of the OHS legislation

Q 100% 100% 100% 100% 100%

4.1.

Number of employer audits conducted per year to determine compliance with the UI Act

Q 13440 2688 5376 2688 2688

4.2 Number of entities audited per year in terms of the OHSA

Q 150 25 75 25 25

4.3 Percentage of entities registered per year in terms of the OHSA

Q 100% 100% 100% 100% 100%

87


KPI A/Q ANNUAL Q1 Q2 Q3 a. Q4

5.1

Occupational Health and Safety Amendment Bill submitted to NEDLAC by March 2015.

A 100% OHS Amendment Bill submitted to NEDLAC

a. Hazardous Chemical Substance Regulation amended

b. Major Hazardous Installation Regulations amended

88

2014/15 Annual Performance Plan5.2.10. Promote Equity in the Labour Market

Province Annual Targets

EC 98

FS 28

GP 100

KZN 48

LP 40

MP 30

NC 27

NW 41

WC 108

TOTAL 517

517 of designated employers reviewed per year to determine compliance with employment equity legislation •

89

5.2.11. Protecting Vulnarable Workers149 154 of workplaces inspected per year to determine compliance with Labour legislation


EC 16308

FS 10380

GP 38244

KZN 29760

LP 12036

MP 9894

NC 6480

NW 10764

WC 15288

TOTAL 14915490



EC 2292

FS 2364

GP 5328

KZN 3696

LP 839

MP 1896

NC 960

NW 1050

WC 218

50 20609

20609 of workplaces inspected per year to determine their compliance with the OHS legislation

91


13440 of employer audits conducted per year to determine compliance with the UI Act


EC 1728

FS 696

GP 2580

KZN 1200

LP 1488

MP 792

NC 708

NW 1244

WC 3024

TOTAL 1344092

5.2.14. Challenges and corrective measures

• Current Budget cuts will impact on:1. Inspection operations2. Inspectors tools of trades

Corrective MeasuresEngagement with Treasury to review current budget cuts so as to assist the Department to enforce labour laws and to address the plight of vulnerable workers.

93

5.3. Programme 3: Public Employment Services

2013 / 2014 Annual Performance Report

2014/2015 Annual Performance Plan and

Challenges. 94

5.3.1. Programme 3:Public Employment 5.3.1. Programme 3:Public Employment Services (PES)Services (PES)

• PES provides assistance to companies and PES provides assistance to companies and workers to adjust to changing labour market workers to adjust to changing labour market conditions and regulates private employment conditions and regulates private employment (PEAs) and temporary employment agencies (PEAs) and temporary employment agencies (TEAs).(TEAs).

• The staff complement across the country The staff complement across the country consist of 96 Employment Services consist of 96 Employment Services Counsellors and Counsellors and 171 171 Employment Services Employment Services PractitionersPractitioners

95

5.3.2. Programme 3: Annual Performance against 2013/14 selected indicators

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribute to employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS 3.1. Number of work-seekers registered on ESSA per year

500 000 AchievedA total of 618092 (124%)were registered on ESSA.

Prov. TargetNumber registered Variance % Registered

EC 55000 65670 10670 119FS 40000 43478 3438 109GP 120000 139953 19953 117KZN 95000 109914 14914 116LP 40000 62959 22959 157MP 40000 47680 7680 119NC 15000 20304 5304 135NW 30000 26791 -3209 89WC 65000 90480 25480 139On-Line 0 10863 0NATIONAL 50000 618092 118092 124

96

5.3.3. Program 3: Performance against 2013/14 selected indicators

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS4.1. Percentage of work-seekers registered on the system provided with employment counselling

50% Achieved41% (250160 OF 618092) of work-seekers against a target of 50% were provided with employment counselling

Prov. Target Number counselled % counselled VarianceEC 50% 30568 47 -3%FS 50% 27724 64 14%GP 50% 39959 29 -21%KZN 50% 41244 38 -12%LP 50% 27096 43 -7%MP 50% 27134 57 7%NC 50% 13499 66 16%NW 50% 15787 59 9%WC 50% 27149 30 -20TOTAL 50% 250160 41 -9

97

5.3.4. Performance against 2013/14 selected indicators

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS4.2. Number of work-seekers placed in registered employment opportunities

19 000 AchievedA total of 15570 (82%)work-seekers were placed in registered employment opportunities in Provinces against a target of 19000.

Prov. Target Actual placed Variance % PlacedEC 2280 1654 -626 73FS 1520 3421 1901 225GP 4560 2609 -1951 57KZN 2280 2054 -226 90LP 1900 1669 -231 88MP 1710 2269 559 133NC 1330 529 -801 40NW 1330 806 -524 61WC 2090 559 -1531 27ON-LINE 0 86 0TOTAL 19000 15656 -3430 82

98


OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS4. 3. Number of work-seekers referred to registered employment opportunities

76 000 A total of 98829 (130%)work-seekers were referred to registered employment opportunities in Provinces against a target of 76 000.

Prov. Target Actual referred Variance % ReferredEC 9120 13040 3920 143FS 6080 12455 6375 205GP 18240 22782 4542 125KZN 9120 10215 1095 112LP 7600 8787 1187 116MP 6840 9307 2467 136NC 5320 4422 -898 83NW 5320 7160 1840 135WC 8360 10661 2301 128TOTAL 76000 98829 22829 130

99


OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS5.1. Number of employers registering vacancies

1 000 New employers A total of 2427 employers registering vacancies on ESSA against a target of 1 000

Prov. TargetActual registered Variance % Registered

EC 95 293 198 308FS 85 174 89 205GP 195 389 194 199KZN 166 230 64 139LP 80 262 182 328MP 105 391 286 372NC 49 130 81 265NW 155 244 89 157WC 70 314 244 449TOTAL 1000 2427 1427 243

100

5.3.7. PES Annual Performance Plan 2014/15

Strategic Outcomes: Improve the quality of labour market services to contribute to decent employment through inclusive economic growth

Strategic Goal: Contributing to decent employment creation (Outcome 4)

Strategic Objective: Provision of Public Employment Services

101

5.3.8. Annual Performance Plan 2014-2015Performance indicator

Reporting period

Annual target 2014-15

Quarterly targets Budget 1st 2nd 3rd 4th R’000

1.1 Employment Services Board established and Employment Services Regulations developed by March 2015.

Q Employment Services Board established in accordance with section 20 and the Employment Services regulations developed by March 2015 in accordance with section 52 of the employment act.

Develop draft Employment Services regulations. Develop ES Board Constitution.

Develop submission for Minister to nominate ES Board members. Facilitate the appointment of ES Board

Convene First seating of the new Board. Table draft ES regulations to ES Board.

Facilitate Public Hearings on draft ES Regulations. Facilitate the ratification of ES regulations by the ES Board

1,647.

1.2 Number of PES provincial and local advocacy campaigns conducted

Q At least 18 provincial and 126 local advocacy campaigns conducted

5 Provincial 32 Local




Mss: 3,295. ES:

11,696. WS:

10,617. Total:

25,609. 1.3 Number of

work-seekers registered on ESSA system per year

Q 550 000 137 500 137 500 137 500 137 500 53,398.

102

Performance indicator

Reporting period



1.4 Number of registered work-seekers provided with employment counselling

Q 220 000 registered work-seekers provided with employment counselling

55 000 55 000 55 000 55 000 31,853.

1.5 Number of work-seekers placed in registered employment opportunities

Q 20 000 5 000 5 000 5 000 5 000 23,393.

1.6 Number of opportunities registered on ESSA

Q 50 000 employment opportunities registered on ESSA

12 500 12 500 12 500 12 500 35,090.

1.7 Private Employment Agencies and Temporary Employment Agencies registered

Q All complete PEA applications processed within 60 days of receipt

All complete PEA applications processed within 60 days of receipt




11,696.

5.3.9. Annual Performance Plan 2014-2015

103



Reporting period



2.1 Applications for foreign nationals corporate and individual work visa processed within 30 working days

Q All complete applications for foreign nationals corporate and individual work visa processed within 30 working days

All applications for foreign nationals corporate and individual work visa processed within 30 working days




11,696.

3.1 MoAs concluded with eligible designated organizations, performance monitored and funding transferred by March 2015

Q MoAs concluded with organizations, performance monitored and funding transfers effected by March 2015

Tender specifications published in the government gazette.

Bids received in response to tender are evaluated.

Conclude MoA’s with eligible organisations and transfer the first tranche.

Monitor Performance in line with the agreed implementation plan.

850

104



Reporting period



4.1 MoAs concluded by 31st March each year, performance reports submitted, quarterly and funding transfers effected (SEF)

Q MoA concluded by 31st March, performance reports submitted quarterly and funding transferred quarterly

Quarterly Reports consolidated, analysed, and funding transferred




138 573

5.1 MoAs concluded by 31st March each year, performance reports submitted (Productivity SA)

Q MoA concluded by 31st March, performance reports submitted quarterly and funding transferred quarterly





43 119

105

5.3.12. Number of PES provincial and local advocacy campaigns conducted

At least 18 Provincial and 126 local advocacy campaigns conducted annually.


Provincial Local

EC 2 16

FS 2 11

GP 2 26

KZN 2 16

LP 2 13

MP 2 14

NC 2 7

NW 2 10

WC 2 13

TOTAL 18 126106

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

550 000 work-seekers registered on ESSA system per year.


EC 60 500

FS 44 000

GP 126 500

KZN 110 000

LP 44 000

MP 44 000

NC 16 500

NW 33 000

WC 71 500

TOTAL 550 000107

5.3.14. Number of registered work-seekers provided with employment counselling

220 000 registered work-seekers provided with employment counselling by

March 2015. Province Annual Targets

EC 29 796

FS 18 336

GP 43 548

KZN 25 212

LP 22 920

MP 25 212

NC 16 012

NW 20 628

WC 18 336

TOTAL 220 000108

5.3.15. Number of work-seekers placed in registered employment opportunities

20 000 work-seekers placed in registered employment opportunities annually. Province Annual Targets

EC 2 360

FS 1 728

GP 3 520

KZN 2 360

LP 2 240

MP 2 136

NC 1 320

NW 1 360

WC 2 976

TOTAL 20 000

109

5.3.16. Number of vacancies and opportunities registered on ESSA

50 000 vacancies and opportunities registered on ESSA annually. Province Annual Targets

EC 5 900

FS 2 320

GP 8 800

KZN 5 900

LP 5 600

MP 5 340

NC 3 300

NW 3 400

WC 7 440

TOTAL 50 000

110

5.3.17. PES Challenges and Corrective Measures

• PES is under staffed at service delivery points.

– 96 employment counsellors across 126 labour centres throughout the country.

– 171 employment service practitioners.

• Insufficient allocation in the METF to fully implement the new Employment Services Act No 4 of 2014.

• Insufficient numbers of jobs being created and opportunities being registered to can absorb the large number of registered work seekers.

Corrective Measures- Engage Treasury, the Unemployment Insurance Fund and Compensation Fund on

additional resources and joint programmes to address the plight of unemployed workers

- Alignment with other Infrastructure and IPAP Job creation projects, DHET,DTI, DHA initiatives to achieve maximum placement levels

111

5.4. Programme 4: Labour Policy and Industrial Relations

2013 / 2014 Annual Performance, and

2014/2015 Annual Performance Plan

Challenges112

5.4.1. Programme 4:Labour Policy and Industrial 5.4.1. Programme 4:Labour Policy and Industrial Relations (LP & IR)Relations (LP & IR)

• LP & IR facilitates the establishment of an equitable LP & IR facilitates the establishment of an equitable and sound labour relations environment, promotion and sound labour relations environment, promotion of South Africa’s interests in international labour of South Africa’s interests in international labour matters through researching, analysing and evaluating matters through researching, analysing and evaluating labour policy and provides statistical data on the labour policy and provides statistical data on the labour market and provides support to labour market labour market and provides support to labour market institutions that promote social dialogue.institutions that promote social dialogue.

113

5.4.2. Performance Report against the 2013/14 Annual Performance Plan

STRATEGIC OBJECTIVE ACHIEVEMENTS

Employment Equity in the Labour Market ensured

The Employment Equity Act, 2013 assented into law

Employment Equity Annual Report published.

30 Income Differentials assessed

Basic Conditions of Employment in the labour market ensured

The Basic Conditions of Employment Act,2013 assented into law.

One Child Labour Programme of Action implemented in line with the 5-year plan

Sectoral Determinations (SD) published for residual and emerging vulnerable workers

Hospitality and Taxi Sector Determinations reviewed

Civil society organisations that protect vulnerable workers funded

12 Civil society organisations involved in the world of work funded and monitored .

114

5.4.3. Performance Report against the 2013-14 Annual Performance Plan


Sound Labour Relations ensured 17 collective agreements were extended to non-parties within 60 days.

96% of new applications of Labour Organisations were processed within 90 days of receipt

Relations Strengthened through Memoranda of Understanding (MOU) with fraternal countries

Reviewed Memorandums with China, Lesotho, Namibia, Algeria, Brazil, Zimbabwe and Cuba

Number of reports to ensure compliance with the ILO Constitutionalrequirements in terms of Article 19 and 22 of the ILO Constitution

5 Reports submitted:Article 221. Forced Labour Convention, 1930 (No. 29)2. Night Work (Women) Convention (Revised), 1948 (No.89).3. Abolition of Forced Labour Convention, 1957 (No. 105).4. Minimum Age Convention, 1973 (No.138).5. Worst forms of Child Labour Convention, 1999, (No. 182).

115

5.4.4. Performance Report against the 2013-14 Annual Performance Plan


Labour market trends monitored

4 annual Labour market trends reports produced and disseminated .

4 briefing reports on Quarterly Labour Force Survey and Unemployment Insurance Fund produced

Impact of legislationevaluated and reported on

The Annual Labour Market Review (ALMR) topic of Noise Induced Hearing Loss was developed and approved.

116


STRATEGIC OBJECTIVE 2014-15

Employment Equity in the labour market ensured and enforcement improved

Amended EE Regulations published Draft Code on Equal Pay published for public comment

2013-2014 Annual Employment Equity Report and Public Register published by 30 June 2014

30 Income differentials assessed

117

5.4.6. Annual Performance Plan 2014/2015


Establish basic standards and minimum wages

Review two Sectoral Determinations and one new Sector investigated

Start investigation for Domestic and Farm workers Provident Fund Start investigation for National Minimum wage

Sound Labour Relations ensured 17 Collective agreements extended within 60 days of receiptStart process to form Bargaining Council in Mining

118



Ensure compliance with the country’s international obligation

Monitor implementation of signed MOUs and submit quarterly reports

8 Reports (1 Article 19 and 7 Article 22 )

4 G20 Reports developed

Impact of legislation and labour market trends monitored and evaluated

8 Labour Market Reports (4 Labour Market Trend reports and 4 Internal Statistical Trend reports ) 4 research reports completed.

119

5.4.8. CHALLENGES

• Promulgation and implementation of Legal amendments

• Labour Market instability

120

Thank You…

department of labour presentation to the select committee on economic business development

Documents

labour policy

labour relations act

international labour

following labour legislation

south african labour

labour council nedlac

speedy labour jusctice

sound labour relationssection