dol presentation to the select committee on labour and public enterprises 29 february 2012

DoL Presentation to the Select Committee on Labour and Public Enterprises

29 February 2012

DoL Presentation to the Select Committee on Labour and Public Enterprises

29 February 2012

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Table of ContentsTable of Contents

1. Mandate

2. MTSF and Service Delivery Outcome specific to the DoL

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance

4. Budget Allocations and Utilisation 2011-2012 (refer to presentation on budget)

5. Key Aspects of Strategic Plan 2012/13

6. Key Challenges and Remedial Actions

7. Expectations from the Select Committee2

1. Mandate1. Mandate

VisionThe Department of Labour will strive for a labour market which is conducive to investment, economic growth, employment creation and Decent Work.

MissionRegulate the South African labour market for a sustainable economy through:•• Appropriate legislation and regulations•• Inspection, compliance monitoring and enforcement•• Protection of human rights•• Provision of Employment Services•• Promoting equity•• Social and income protection•• Social dialogue.

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2. 2. MTSF AND SERVICE DELIVERY OUTCOMES SPECIFIC TO THE DOL

In this report, the Department reflects on its contribution to year three (April-Dec 2012) of the Medium Term Strategic Framework (MTSF) 2011-2016 with a focus on the following Government service delivery outcomes:

•Outcome 4: Decent employment through inclusive economic growth, and two other outcomes;

•Outcome 11. Create a better South Africa and contribute to a better and safer Africa and World; and •Outcome 12: An efficient, effective and development orientated public service and an empowered and inclusive citizenship.

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2. MTSF and Service Delivery Outcome aligned to the DoL strategic objectives

SERVICE DELIVERY OUTCOMES AND OUTPUTSSERVICE DELIVERY OUTCOMES AND OUTPUTS The Department STRATEGIC OBJECTIVESThe Department STRATEGIC OBJECTIVES

4: Decent employment through inclusive economic growth Outputs: 4.1 Making our growth more labour absorbing4.2. Reducing youth unemployment4.3. Raising our international competitiveness4.4. Analysing the cost structure of the SA economy4.5. Reviewing support for small business4.6. Expanding our Public Works Programme

1: Contribution to employment creation 2: Promote equity in the labour market 3: Protecting vulnerable workers 5: Strengthening social protection 6: Promoting sound labour relations 7: Monitoring the impact of legislation

11: Creating a better South Africa and contributing to a better and safer Africa in a better world.

4: Strengthening multilateral and bilateral relations

12: An efficient, effective and developmentorientated public service and anempowered and inclusive citizenship Output: 12.1 Service delivery quality and access

8: Strengthening the institutional capacity of the Department

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3. Key Aspects of the DoL Strategic Plan 2011/12

Strategic oriented goals of the Department•Implementation of Decent Work Country Programme

•Rebuilding the Public Employment Services. Promote a policy environment to provide public employment services which will enable government to maintain a database of job seekers and job opportunities, as well as matching and placement of job seekers.

•Strengthening of Department of Labour inspectorate. Promote decent work and address vulnerability in the labour market through effective monitoring and enforcing compliance with legislation.

•Strengthening social security including reintegration of workers into the labour market and restructuring the Sheltered Employment Factories

•Strengthening the institutional capacity of the Department6


OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH

Strategic Objective 1: Contribution to employment creation

KEY PERFORMANCE KEY PERFORMANCE

INDICATORSINDICATORSTARGETSTARGETS PROGRESSPROGRESS

1. Employment Services (ES)Policy, related regulations and guidelines in place

Employment Services

Bill finalised by 2011.

Regulations developed

ES Bill approved and published for comments. Bill currently at NEDLAC for discussion with stakeholders.

2. Number of job-seekersRegistered on the system assessed and profiled

50% job-seekers registering on the system are assessed and profiled within 60 days ofRegistration

403 482 registered on the system and 139 428 profiled

3. Number of job-seekers placed/referred to opportunities

450 000 job-seekers placed/referred to opportunities

64 798 referred/placed into opportunities

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3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance: Provincial Breakdown

Table 1: Job-seekers Registered on the system assessed and profiled

Prov. Target Actual profiled Deviance

EC45000 11009

33991

FS33000 10437

22563

GP60000 36601

23399

KZN39000 24036

14964

LP27000 9481

17519

MP30000 22319

7681

NC18000 2666

15334

NW24000 10946

13054

WC24000 11888

12112NATIONAL 300000 139428 -139428

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3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance: Provincial Breakdown

Table 2: Job-seekers placed/referred to opportunities

Prov. Target Referred/placed Deviance

EC67500 10437

57063

FS49500 4754

44746

GP90000 13212

76788

KZN58500 4382

54118

LP40500 6446

34054

MP45000 6175

38825

NC27000 2596

24404

NW36000 9646

26354

WC36000 7150

28850

NATIONAL 450000 64798 385202

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3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation



4 Number of applications from companies indistressed sectors processed

30 Applications processed within 30 working daysfrom application

14 applications received and processed within 30 working days

5 Number of workers incompanies in distressed sectors provided withassistance

9 000 workers in companies indistressed sectors provided with assistance

1 344 workers assisted

6. Increased sales of goods from Service Products leading to more intake of people with disabilities into SEF

30% in sales leading to 500 more people with disabilities employed in SEF subject to Government departments placing 30% of their orders from SEF

• Sales increased by 15,43 % during Q3 (Oct – Nov ) – R12,682,417

• No additional factory workers employed

• 22% increase year on year7. Number of people from designated groups placed in training and income generating opportunitiesYouth, Women, PWD

100 000 Youth 50 000 Women 1 000 PWD

19 197 Youth

11276 Women

527 PWD 10





8. Number of people with disabilities/ex-combatantsand Compensation Fund beneficiaries assisted with skills for employment in the SEF

600 learners with disabilities recruited for training to the SEF Centre of Excellence pilot project, for the year 2011 - 12

None

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Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown)

Table 3: Number of Youth Referred

Prov. Target Actual Deviance

EC 15000 4282 10718

FS11000

4364 6636

GP20000

1780 18220

KZN13000

1043 11957

LP9000

2076 6924

MP10000

1456 8544

NC6000

1517 4483

NW8000

2014 5986

WC 8000 1610 6390

NATIONAL 100000 19197 80803

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Table 4: Number of Women Referred


EC 7500 2745 4755

FS5500

2625 2875

GP10 000

1283 8717

KZN 6500 440 6060

LP4500

1034 4060

MP5000

440 4560

NC3000

281 2717

NW4000

1182 2818

WC 4000 1225 2775

NATIONAL 50 000 11276 -38724

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Table 5: Number of People with Disability Referred


EC

152

7 145

FS

108

59 49

GP200

211 +11

KZN

128

5 123

LP

92

1 -91

MP100

4 96

NC

60

0 60

NW

80

11 69

WC

80

229 +149

NATIONAL1000

527 473

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9. Number of SMME managers assisted to manage matters related to intellectual property

3 000 2074 Managers trained

10. Number of jobs saved through social plan intervention

20 000 4 816 jobs saved

11. Percentage of totalmandated Social Responsible Investment invested

70% of the mandated Social Responsibility Investment invested by March 2012

• A R2 billion 5-year private placement bond was issued by the IDC, and in turn subscribed by the UIF.(Loaned to other entities for infrastructure projects and job creation initiatives

• In December 2011 the second and third bonds, amounting to an additional R1.5 billion were approved

• As at 31 December 2011, estimated jobs to be created will amount to 12,431 and an estimated 13,878 jobs to be saved.

Number of companies and workers assisted through the Training Lay-off Scheme

• R 89 843 804.62 was paid out as at December 2011, benefitting 9119 workers in 46 companies

• The TLS guidelines have been revised in order to increase the uptake/participation of companies 15





11. Percentage of totalmandated Social Responsible Investment invested (cont)

The UIF signed funding agreements to the value of R75 million with R41.9 million paid in 2010/11 to the various training and Social Plan funding schemes based on their withdrawal conditions.

12. Approved policy and legal framework for Service Products factories

SEF Legal status and business casefinalised

Legal provision for SEF establishment is contained in the ES Bill currently at NEDLAC.MoA signed with NT to appoint service provider to undertake SEF 2nd phase Business Case

13. Number of companies assisted to facilitate constructive dialogue between social partners, managers and workers, to improve productivity, per annum

120 companies 129 Companies assisted to facilitate constructive dialogue

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 2: Promote Equity in the Labour Market



1. Employment Equity Act (EEA) and its Regulations Amended.

Amended EEA promulgated

Government proposals on the EEA theme have been submitted to Nedlac

2. Inspect JSE listed companies and ordinary designated employers to achieve 80% compliance with EE legislation

10 000 workplaces inspected JSE (60 ) Designated (140) Procedural (9 800)

• 40 JSE companies• 124 Designated • 11 417 companies were inspected procedurally and 72% compliance level achieved.

3. Code of Good Practice and Technical Assistanceguidelines on HIV and AIDS reviewed andAmended

HIV and AIDS Code andTechnical assistanceGuidelines amended

Task team involving the ILO met on 15 and 16 November 2011 to consider all comments received during the road shows. Changes and additions were effected and preparations were made to consult on the revised draft Code at NEDLAC.

4. Income Differentialsassessed to determine race and genderdisparities in salaries

60 Gathered information of 15 companies on Income Differential Assessment.

Followed up with 15 companies to verify and gather additional information.

Worked closely with Siemens to ensure that DG Review System is operational in order to avoid any further delays.

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable WorkersKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS TARGETSTARGETS PROGRESSPROGRESS

1. BCEA amended Amended BCEA promulgated

Negotiations on theme 4 dealing with Compliance and enforcement has been concluded

2. Review existing sectoral determination

Taxi, Contract Cleaning, Domestic, Farm and Forestry

• Research currently in progress in case of Taxi• Contract Cleaning amendment notice published in

Government Gazette• Domestic worker amendment notice published in

Government Gazette, • Ministerial submission forwarded to Minister in case of

Farming and Forestry3. Civil society strengthened 8 Civil society

organisations involved in the world of work funded

The following Civil Society Organisations received their 2nd Tranches: DITSELA, Workers College Natal, SA Labour Bulletin and Sicelukukhanya Home Based Care(KZN)

4. Inspect 130 000 workplaces to achieve 80% compliance rate

130 000 inspections with 80% compliance rate

59 601 routine inspections were conducted and 74% compliance achieved.

5. Settle at least 70% of received labour related complaints within 14 days at Registration Services

Settle 70% of received complaints within 14 days

98 910 labour related complaints were received and 79 440 (80%) settled within 14 days.

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3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown)

Table 6: Number of Routine inspections conducted and compliance level thereof

Prov.) Target Actual Deviance Number complied Compliance level (%)

EC14782 19186

-440416643 87

FS14365 12677

16888751 69

GP7123 7251

-1285526 76

KZN244 497

-253241 48

LP7793 4055

37383729 92

MP4686 4932

-2462647 54

NC4572 4943

-3714170 84

NW1644 1992

-3481578 79

WC

4986 5149

-163

4271 83

NATIONAL52402 59601 46553 74%

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Table 7: Number JSE listed companies inspected

Prov.) Target Actual Deviance

EC 620 563 -57

FS 2 15 13

GP 1818 1714 - 104

KZN 549 754 205

LP 5 14 9

MP 180 171 114

NC 104 93 19

NW 707 464 -243

WC 393 296 -97

NATIONAL 4216 4084 -132

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Table 8: Complaints management

Prov. Number received Number settled Settlement rate Money recovered

EC 5775 4307 75 % R 2 877, 757.03

FS 7737 6684 88% R 1, 180, 867.47

GP 54038 45725 84% R 2 653, 204.90

KZN 4202 2677 64% R 747, 220.05

LP 4835 1129 24% R 366, 719.02

MP 10691 10279 96% R 114, 8287.42

NC 2492 1641 64% R 1 617, 468.27

NW 4047 3572 88% R 607 507.00

WC 5093 3426 67% R 315 054, 179.00

NATIONAL 98910 79440 80 326253210.20

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Table 9: JSE listed companies inspections

Prov Target # comp reviewed # recomm made # Compl % compl

JSE DES JSE DES JSE DES JSE DES JSE DES

GP 7 25 1 32 0 22 0 0 0 0

KZN 6 30 0 10 0 10 0 0 0 30

EC 6 23 5 20 5 14 5 6 100 70

WC 4 19 4 10 4 10 0 0 0 0

FS 10 5 7 0 7 0 0 0 0 0

LP 5 10 11 14 1 13 0 4 0 29

NW 4 16 0 10 0 10 0 0 0 0

NC 12 4 6 9 4 0 0 0 0 0

MP 6 8 6 19 6 18 0 0 0 0

TOTAL 60 140 40 124 27 97 5 10 - -

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

TARGETSTARGETS PROGRESSPROGRESS

1. Conduct inspections in the identified industries exposing workers to silica dust

200 workplaces inspected in order to reduce exposure by at least 2% Gauteng Province

96 inspections conducted (all in Gauteng)

2. Repealing the OHS Act OHS Bill Developed and enacted into law

In Progress – Relevant Government Departments have been and are being consulted during past Q.

To be submitted to Cabinet by August 2012.3. Reduce incidents in the following high risk sectors by conducting audits, do blitzes and hold 1 seminar per year:- Iron and Steel,- Construction,- Chemical and- Agriculture/forestry)

Establish a baseline by conducing at least: - 20 audits per sector- Blitz per sector- 1 seminar per year

National Roving Team conducted 273 audits and 61 follow-ups

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Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Breakdown per Sector per Province)

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Table 10: Blitz inspections

Province SectorInspections Conducted

Complying % Complying

FS Agriculture 289 242 84 Private Security 203 147 76

WC Agriculture 144 124 86

NC Agriculture 252 155 62

LP Domestic 805 363 45

Private security 154 67 44

GP Private security 57 40 70

Chemical 28 8 29

KZN Construction 683 400 58

Hospitality 543 281 51

Sawmills 4 0 0

MP 0 0 0

EC Security 621 320 52

Iron and Steel 88 13 15

NW Wholesale & retail 427 261 61

Food & beverages 149 72 48

Agriculture 315 228 72

Total 4762 2721 55

Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Breakdown per Sector per Province)

Table 11: Sector Audits

Provinces Sector Audits conducted Complying % Complying

LP Agriculture 7 2 29FS 0 0 0WC Iron & Steel 156 156 100

GP Iron & Steel 3 0 0NC 0 0 0KZN Agriculture 5 0 0 Iron & Steel 4 0 0EC Iron & Steel 531 43 8MP Chemical 3 0 0 Agriculture 6 0 0 Construction 1 0 0NW Iron & Steel 2 0 0

Chemical 1 0 0TOTAL 719 201

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 6: Promoting Sound Labour Relations



1. Extend collective agreements within 90 days

18 collective agreements published within 60 days of receipt

7 Collective Agreements were published

• 2 were for renewal; and extension of period of operation. • 5 extension of collective agreements to non-parties.

2. Decision to register new labour organisationstaken within 90 days

90 Dealt with 45 applications for registration of labour organisations 5 approved (4 trade unions & 1 employer’s org)37 rejected3 Cancelled

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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 INDICATORSKEY PERFORMANCE INDICATORS TARGETSTARGETS PROGRESSPROGRESS

1. Percentage of vacancy rate reduced with a specified period of time

Vacancy rate reduced to below 8% by 31 March 2012

Vacancy rate as at 31 December 2011 was 7.17%

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

34% women employed in Senior Management Service (SMS), 43% youth and 3% people with disability (PwD) employed in the Department by 31 March 2012

37.5% Women are employed in SMS as at 31 December 2011

39.8 % of Youth are employed as at 31 December 2011

2.6 % of People with Disabilities are employed as at 31 December 2011

3. % of customer complaints attended to within 14 days of Receipt

90% within 14 days

5334 calls received as at 31 December 2011. 5225 (97%) have been resolved.

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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

TARGETSTARGETS PROGRESSPROGRESS

3. Number of service delivery points accessible in line with geographic norms and standards

Develop geographic norms and standards as well as an implementation plan

Database on the catchment areas, geographical distribution of the Economically Active Population and estimated traveling distances from individual household to DoL SERVICE DELIVERY POINTS E.G. LC points, is available.

The information could, however, not be plotted on the map due to unavailability/lack of access to the GIS system. Submission prepared for external assistance.HSRC has been engaged.

4. Percentage of compliance to Service delivery norms and standards

Service delivery norms reviewed by October 2011

Service Delivery norms reviewed by October 2011 and the Service Delivery Improvement Plan submitted to the DPSA in November 2011

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4. Budget Allocations and Utilisation

BUDGET ALLOCATEDBUDGET ALLOCATED UTILISEDUTILISED % UTILISED% UTILISED

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5. Key Aspects of Strategic Plan 2012/13

SERVICE DELIVERY OUTCOMES AND OUTPUTS

THE DEPT STRATEGIC OBJECTIVES (KRAs)

KEY PERFORMANCE INDICATORS

Outcome 4: Decent employment through inclusive economic growth

Outputs:4.1 Making our growth more labour absorbing

4.2. Reducing youth unemployment

4.3. Raising our internationalCompetitiveness

4.4. Analysing the cost structure of the SA economy

4.5. Reviewing support for small business

4.6. Expanding our Public Works Programme

KRA 1: Contribution to employment creation

Number of job-seekers registered on the system assessed and profiled into different categories Number of job-seekers placed in opportunities

Number of people from designated groups placed in training and income generating opportunitiesYouth, Women and PWD – 3%

KRA 2: Promote equity in the labour market

Employment Equity Act (EEA) and its regulations amended and monitor and evaluate the substantive progress of the implementation of the Act.

KRA 3: Protecting vulnerable workers

Percentage of workplaces inspected and audited (targeting vulnerable sectors - private security, agriculture, forestry, hospitality, and domestic workers) complying with labour legislation within 90 days of inspection

KRA 5: Strengthening social protection

Percentage reduction in noise induced hearing loss in the Iron and Steel Industry

KRA 6: Promoting sound labour relations

Collective agreements extended and labour organization applications and cancellations dealt with within 90 days of receipt of request

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5. Key Aspects of Strategic Plan 2011/12 - continue

SERVICE DELIVERY OUTCOMES AND OUTPUTS

THE DEPT STRATEGIC OBJECTIVES (KRAs)

KEY PERFORMANCE INDICATORS

Outcome 11. Create a better South Africa and contribute to a better and safer Africa and World

KRA 4: Strengthening multilateral and bilateral relations

Ensure compliance with the ILO’s constitutional requirements in terms of Article 19 and 22 of the Constitution of the ILO

Outcome 12: An efficient, effective and development orientated public service and an empowered and inclusive citizenship.

Outputs:12.1 Service delivery quality and access

KRA 8: Monitoring the impact of legislation

KRA 9: Strengthening the institutional capacity of the Department

Fully functional Performance Management system implemented to comply 100% with prescripts

Improve service quality and access: Reduction on waiting time at service pointsImprove turn-around time for services rendered Reduction in distances travelled to access service pointsPercentage of customer complaints successfully resolved within 14 days

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KEY STRATEGIC OBJECTIVE

REASON FOR MAJOR VARIANCE CORRECTIVE ACTION

Contribute to employment creation

Policy and Regulatory Gap - NEDLAC processes not yet finalised

Inadequate human and IT Resources to register and profile job seekers

Some work seekers not honouring appointments for assessment and profiling

Insufficient education and skills levels of registered candidates to fill reported job opportunities

Planned Social Plan projects started later than expected due to delays in finalized agreements

Finalise ES Bill

Resources capacityImproved IT systems

Promote equity in the labour market

Policy and Regulatory Gap - NEDLAC processes not yet finalised

Delays at NEDLAC to finalise the amendments to the HIV and AIDS Code and Technical Assistance Guidelines

Insufficient information submitted by Companies and inability to gather electronic information on companies due to delays in delivering the DG Review System by the service provider

Introduce and enforce legislations

Protecting vulnerable workers Organisational capabilities/competences Capacitate resources

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KEY STRATEGIC OBJECTIVE

REASON FOR MAJOR VARIANCE CORRECTIVE ACTION

Strengthening social protection

Organisational capabilities/competences Capacitate resources and ensure improved planning

Strengthening multilateral and bilateral relations

External circumstances resulting in lack of commitments from other countries Continuous workshops and follow-ups

Strengthening the institutional capacity of the Department

Organisational capabilities/competences and infrastructure Capacity building

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7. Expectations from the Select Committee

• Support the Department when tabling the budget vote.

• Support the Department on legislative amendments

• Support the Department in collaborative work with other Departments on a ‘committee-to-committee’.

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Thank youThank you

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dol presentation to the select committee on labour and public enterprises 29 february 2012

Documents

decent employment

labour market3

labour absorbing4

public employment services

dol strategic plan

service delivery quality

south african labour

dol strategic objectives