VOTE 27: LABOUR

1
VOTE 27 LABOUR

• A PRESENTATION TO THE PORTFOLIO COMMITTEE 8
  MAY 2001

DIRECTOR-GENERAL ADV RAMS RAMASHIA
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CONTENTS

• ANNUAL REPORT 2000
• KEY PROJECTS 2001/2002
• BUDGET 2001/2002

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ANNUAL REPORT2000
4
BRANCHES

• The Department of Labour consists of two main
  branches namely
• Labour Policy and Labour Market Programmes
  and
• Internal Management and Operations

5
LABOUR POLICY AND LABOUR MARKET PROGRAMMES

• Employment and Skills Development Services
• Unemployment Insurance Fund
• Labour Relations
• Labour Market Policy
• International Labour Relations

6
EMPLOYMENT AND SKILLS DEVELOPMENT SERVICES (ESDS)

• Key functions
• Develop, promote and regulate the skills
  development strategy
• Implement the skills development strategy in
  partnership with SETAs and provincial offices of
  the DoL

7
ESDS (1)

• Develop, promote and regulate the skills
  development strategy
• National Skills Development Strategy developed
  after extensive consultation.
• NSDS Conference held, 2 000
  attended the conference, 14 000 visited the
  exhibitions

• Commitment
• Achievements

8
ESDS (2)
Commitment Achievements

• To implement the Skills Development Strategy
• Established 25 Sector Education and Training
  Authorities (SETAs)
• Abolished the 33 Industry Training Boards
• Major capacity building initiatives undertaken to
  support SETA establishment.

9
ESDS (3)

• Collection of Skills Development Levies, by SARS,
  from employers, from April 2000.
• Provincial Skills Development Forums established
  as focal point for coordinating skills
  development in provinces
• Incorporated NSDS into Governments HRD Strategy

Achievements
10
ESDS (4)
Commitment Achievements

• To research and analyse the labour market in
  order to determine skills development needs.
• 25 draft Sector Skills Plans delivered in
  September
• 24 Sector Skills Plans approved in March
• 10 Provincial Skills Plans completed.
• National skills context document published

11
ESDS (5)
Achievements

• Comparative research into strategic planning and
  methodologies for monitoring and evaluation was
  commissioned and has been completed.
• Research papers were commissioned and completed
  in respect of unemployment, the structure of the
  economy and skills demands over the past 20
  years
• Research on domestic workers and their employers
  completed.

12
ESDS (6)
Achievements

• Learnership regulations prepared
• Learnership support services in place
• SETAs commenced major learnership development
  processes (500 new titles proposed and 100 new
  programmes under detailed development)
• 4 SETAs and 2 professional bodies accredited as
  ETQAs by SAQA to quality assure learners in
  learnerships.

13
ESDS (7)
Achievements

• A model was developed for rendering employment
  support programmes to the unemployed, including
  tools, leading to placement in either the formal
  or informal sector.
• A culture-fair psychometric assessment instrument
  had been acquired and was piloted for Daimler
  Chrysler - a total of
• 3 000 persons were assessed, from which 880 were
  selected and correctly placed

14
ESDS (8)
Achievements

• An employment support programme for the youth was
  piloted in Mpumalanga for which the support of
  stakeholders such as Working for Water, Eskom and
  the Netherlands technical support team were
  secured
• Retrenchment support teams were established in
  all the provinces to provide counseling to
  retrenchees, motivating them to job-hunt again.

15
UNEMPLOYMENT INSURANCE FUND (UIF)

• Key functions
• Provide for the payment of benefits in terms of
  the Unemployment Insurance Act of 1966.

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Unemployment Insurance Fund (1)
Commitment Achievements

• To develop, draft and submit revised
  legislation in respect of Unemployment Insurance.
• Legislative and regulatory changes have been
  drafted aimed at
• Strengthening the administration of the Fund
• Targeting benefits more effectively at the poor

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Unemployment Insurance Fund (2)
Achievements

• Co-ordination with social security initiatives
• Extending the coverage of the scheme
• The UIF Bill is currently in the parliamentary
  process

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Unemployment Insurance Fund (3)
Commitment Achievements

• To improve financial management of the Fund
• Implementation of an information technology
  system aimed at the following, has commenced
• Increased speed of service delivery

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Unemployment Insurance Fund (4)
Achievements

• Increased monitoring of compliance
• Increased contribution collection and benefit
  payments through electronic means
• Increased ability to detect fraud.

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LABOUR MARKET POLICY

• Key functions
• Perform research and develop labour policies
• Provide national statistical information on the
  labour market
• Included in this programmes allocation is a
  provision for contribution to the National
  Productivity Institute (NPI)

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Labour Market Policy (1)
Commitment Achievements

• To consolidate, analyse and disseminate labour
  market information
• The following documents were prepared.
• 1999 Industrial Action Annual Report
• Quarterly Bulletin of Unemployment Insurance
  Beneficiaries

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Labour Market Policy (2)
Achievements

• Employment Trends in South Africa 1990 to 1996
• Mean and Minimum Wages in South Africa.
• The impact of HIV/AIDS on the labour market
• Bulletin of Economic Indicators.

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Labour Market Policy (3)
Commitment Achievements

• To further enhance the capabilities of the
  programme and the provincial office structures
• Established Labour Market Information, Statistics
  and Planning units at the provincial offices
• Capacity building initiatives were arranged in
  the form of workshops and training seminars

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LABOUR RELATIONS

• Key functions
• Establish equitable and peaceful labour relations
  and working environment.
• Acts administered by the programme include
• Labour Relations Act (1995)
• Basic Conditions of Employment Act (1997)
• Employment Equity Act (1998)

25
LABOUR RELATIONS (1)
Commitment Achievements

• To amend the BCEA, LRA and Insolvency Act.
• Amendments to legislation were drafted in order
  to
• Improve the application of the laws
• address unintended consequences of some
  provisions of the laws

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LABOUR RELATIONS (2)
Achievements

• Ensure the effective alignment of the laws with
  the changing labour market environment
• Comments received from 54 organisations and
  individuals on these amendments
• Negotiations on proposed amendments initiated at
  NEDLAC

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LABOUR RELATIONS (3)
Commitment Achievements

• To effectively implement the Employment Equity
  Act.
• Regulations to the Employment Equity Act amended
  as follows
• Simplified EE reporting form for employers with
  less than 150 workers
• Simplified Income Differential Statement for
  employers with less than 150 workers

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LABOUR RELATIONS (4)
Achievements

• Publication of the Employment Equity Register
• Help line number introduced (0860101018)
• International cooperation secured
• Act popularised through engaging in visible
  campaigns.

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LABOUR RELATIONS (5)
Commitment Achievements

• To develop a code of good practice on HIV/AIDS
  and employment
• Draft code of good practice on key aspects of
  HIV/AIDS and employment was released
• Code finally promulgated on World Aids Day, 1
  December 2000

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LABOUR RELATIONS (6)
Commitment Achievements

• To publish Sectoral and Ministerial
  Determinations.
• Sectoral determinations was published in terms of
  the contract cleaning, private security and
  clothing and knitting sectors during 2000

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LABOUR RELATIONS (7)
Achievements

• Investigations, consultations and information
  sessions conducted in respect of various sectors
• Applications for Ministerial Determinations in
  respect of the BCEA received and processed.

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LABOUR RELATIONS (8)
Commitment Achievements

• To manage the collective bargaining process
• 80 collective agreements published
• Agency Shop provision approved in the Clothing
  Industry Bargaining council
• 5 286 exemptions from the provisions of
  bargaining council agreements granted

33
LABOUR RELATIONS (9)
Achievements

• 16 808 disputes referred to bargaining councils
• Certificates of accreditation for 21 bargaining
  councils published

34
LABOUR RELATIONS (10)
Achievements

• Bargaining Council Strategy Committee
  established
• Bargaining Council Consultative Forum held during
  November 2000

35
INTERNATIONAL RELATIONS

• Key functions
• Promotion of labour rights and minimum standards
  internationally.
• Consolidate South Africas interest in the
  international arena.

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INTERNATIONAL RELATIONS (1)
Commitment Achievements
To access international expertise and resources
to ensure the successful implementation of the
South African labour market programme. Continued
resource mobilisation to assist implementation of
programmes.
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INTERNATIONAL RELATIONS (2)
Commitment Achievements

• To execute the line function responsibility
  concerning labour, employment and related social
  issues at an international level.
• The following ILO core labour standards were
  ratified
• Convention 100 Equal Remuneration (March 2000)
• Convention 138 Minimum Age for Employment (March
  2000)

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INTERNATIONAL RELATIONS (3)
Achievements

• Convention 182 Worst form of child labour (June
  2000)
• Convention 176 Health and Safety in Mines (June
  2000)
• South Africa re-elected as a deputy member of the
  ILO Governing Body
• Continued participation in the ILO Conferences,
  SADC Employment and Labour Sector and OAU Labour
  and Social Affairs Commission annual meetings.

39
INTERNAL MANAGEMENT AND OPERATIONSPROGRAMMES

• Occupational Health and Safety
• Compensation Fund
• Administration
• Human Resources Management
• Service Delivery

40
OCCUPATIONAL HEALTH AND SAFETY (OHS)

• Key functions
• Compilation and maintenance of legislation in
  respect of Occupational Health and Safety of
  Persons
• Technical investigations into incidents
• Interaction with SADC to ensure safe working
  practices regarding the trans- boundary movement
  of hazardous materials and equipment

41
OCCUPATIONAL HEALTH AND SAFETY (1)
Commitment Achievements

• To restructure the OHS inspectorate in line
  with the Departments integrated inspectorate
  model
• Consolidation of Integrated Inspection and
  Enforcement Services (IES) units at provincial
  offices
• IES implementation strategy developed (jointly
  with other programmes)

42
OCCUPATIONAL HEALTH AND SAFETY (2)
Commitment Achievements

• To align OHS regulations with
• OHS Act
• Technology changes
• International OHS standards
• Needs of workers and employers
• The following regulations were finalized

43
OCCUPATIONAL HEALTH AND SAFETY (3)
Achievements

• Hazardous Biological Agents
• Asbestos (amended)
• Lead
• Hazard installations (amended)
• The following regulations are under review
• Explosives
• Building and construction
• Mechanical engineering
• Electrical
• Health and hygiene

44
OCCUPATIONAL HEALTH AND SAFETY (4)
Commitment Achievements

• Ensure cooperative governance with other
  departments
• Established quarterly forums with DME
• Conducted inspections at three prisons
• Liaised with the SANDF on OHS compliance

45
OCCUPATIONAL HEALTH AND SAFETY (5)
Commitment Achievements

• To improve inspections and investigations at
  places at work
• 10 060 inspections were conducted
• 5 950 incident were investigated
• 493 fatalities were investigated

46
OCCUPATIONAL HEALTH AND SAFETY (6)
Commitment Achievements

• To license explosives factories and improve
  safety procedures
• 4 new factories were licensed
• 1 175 licenses were scrutinized and issued
• 73 consultations took place
• A training programme was arranged to train
  workers on safety matters.

47
COMPENSATION FUND (CF)

• Key functions
• Provides compensation for injuries and diseases
  incurred as a result of employment in terms of
  the Compensation for Occupational Injuries and
  Diseases Act of 1993, as amended

48
COMPENSATION FUND(1)
Commitment Achievements

• To improve service delivery through the
  harnessing of IT capabilities.
• Automated claims processing system implemented
• Electronic enquiry functionality is currently
  being piloted at the Gauteng North provincial
  office

49
COMPENSATION FUND(2)
Commitment Achievements

• To market Compensation Fund procedures
• Procedures in respect of compensation were
  marketed through the following mediums
• National and community radio stations
• Pamphlets
• Newspapers

50
ADMINISTRATION

• Key functions
• Rendering efficient administrative, legal and
  office support services
• Information technology services
• Financial administration
• Rendering a public relations service by means of
  publicity, liaison and media programmes

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ADMINISTRATION(1)
Commitment Achievements

• To improve the internal efficiency of the
  Department through services, systems and
  procedures aimed at empowering and supporting its
  clients
• An advanced stage has been reached in procuring
  an IT solution to enhance service delivery,
  improve internal functioning and effectiveness in
  the Department, by means of a Public Private
  Partnership (PPP)

52
ADMINISTRATION(2)
Achievements

• The 1999/2000 financial years set of books was
  closed within 4 working days.
• Effectively implemented the PFMA with effect from
  1 April 2000.

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ADMINISTRATION(3)
Achievements

• Tenders to a value of R5.8 million were awarded
  to previously disadvantaged persons/enterprises.
• The Department was identified as a pilot site for
  the launch of LOGIS and the system was
  successfully implemented at all 10 Provincial
  Offices.

54
ADMINISTRATION(4)
Achievements

• The Communications Directorate assisted with the
  following events/campaigns
• Worker Rights are Human Rights
• Public hearings on Agriculture
• Launch of the EE Act
• Facilitated a first-ever Labour Centre Week to
  inform the local communities on the services of
  the Department

55
HUMAN RESOURCES MANAGEMENT (HRM)

• Key functions
• Development of departmental personnel policies
• Determining working methods and procedures and
  exercising control
• Rendering a management advisory service

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HRM (1)
Commitment Achievements

• To align Human Resources Management policies
  with the new Public Service regulations.
• 22 Departmental HRM policies were reviewed and
  aligned accordingly

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HRM (2)
Commitment Achievements

• To develop an Employment Handbook for the
  Department.
• Employment Handbook developed, adopted and
  distributed to all staff members.

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HRM (3)
Commitment Achievements

• To promptly and effectively handle misconduct
  cases.
• Computerized case management system developed
• Pool of competent Presiding Officers (40) trained.

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HRM (4)
Commitment Achievements

• To implement an HIV/AIDS awareness strategy
• HIV/AIDS preventative strategy developed and
  implemented

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HRM (5)
Commitment Achievements

• To establish an Employee Assistance Programme
  (EAP) Unit.
• Two qualified EAP Practitioners appointed
• Marketing and publicity campaign initiated

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HRM (6)

• To develop a departmental employment equity
  policy and plan.
• Consultative Forum established
• Research on the organizational profile conducted
• Provincial Consultative Forum established
• Employment Equity Plan finalized and submitted

Commitment Achievements
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HRM (7)
Commitment Achievements

• To develop a Skills Plan
• 500 job profiles developed and verified
• Human Resources Development strategy developed
• Training committee established

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HRM (8)
Commitment Achievements

• To develop a Strategic Plan for 2000 2004.
• The strategic plan of the Department has been
  finalized and year 1 has been implemented
  successfully

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SERVICE DELIVERY

• Key functions
• Management Support Services
• Beneficiary Services
• Employment Services
• Inspection and Enforcement Services
• Labour Market Information and Statistics

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SERVICE DELIVERY (SDP)
Commitment Achievements

• To create a new programme that is dedicated to
  service delivery
• The programme has been created
• 32 of the budget is allocated to SDP

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Key Projects for the Year 2001/2002
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Balance between security and flexibility

• Provision of data and analysis
• Roll-out laws mindful of need to balance security
  and flexibility
• Finalization of LRA, BCEA, IA Amendments

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Employment Creation

• Sectoral determination with remuneration and
  conditions of employment for learnerships
• Ministerial determination and Code of Good
  Practice for workers on job creation schemes

69
Skills development strategy Key milestones

• National launch of learnerships
• First bursaries awarded for scarce skills
• Launch of Investor in People SA pilot sites.

70
Employment Equity Key milestones (1)

• Release of comprehensive report including income
  differentials
• Codes of Good Practice- Launch finalized
  HIV/AIDS Code- Launch Codes on Disability
• Consolidation of EE registry and case management
  system.

71
Employment Equity Key milestones (2)

• Enforcement strategy rolled out.
• Ongoing advocacy
• Promulgation of sections relating to procurement
• Improved compliance in public sector.

72
Protection of vulnerable workersKey milestones

• Publication of results for comments- domestic
  worker investigation - farm worker
  investigation
• Promulgation of revised private security sectoral
  determination
• Sectoral determinations also in taxi, hospitality
  and performing arts for children

73
Adequate social safety net

• Unemployment Insurance Bills to Parliament

74
Promote stable labour relations

• Key outcomes- Ongoing registration of labour
  organisations- Oversee CCMA- Facilitate and
  support establishment of new bargaining councils
  and transformation of existing ones- Monitor
  collective bargaining trends

75
Social partnerships

• Key outcomes- Support and strengthening of
  statutory bodies- Optimal utilisation of SCSF
  funds- Participation in NEDLAC structures

76
International Relations

• Ratification of ILO conventions
• Ratification of SADC Social Charter on
  Fundamental Rights

77
Occupational Health Safety

• Draft report for policy options for integration
  of OHS competencies across Government
• Stakeholders collaboration
• OHS awareness campaign
• Agitating for establishment of health and safety
  committees
• Employment of additional inspectors

78
Compensation Fund

• Roll-out of decentralization of Compensation
  Fund
• Improve the efficiency of processing of claims

79
Administration

• Upgrading and integration of IT-Systems
• Consummation of the PPP
• Consolidation of the implementation of the PFMA

80
Human Resources Management

• Staff development through training
• Roll-out of departmental EE Plan

81
Provincial Operations

• Launch of provincial skills development plan
• Implementation of the Social Plan through RRTs
• Consolidation of integrated inspections to
  improve service delivery.
• Improve turn-around time in respect of UIF
  benefits
• Improve COIDA claim settlement process
• Provide resources Human, accommodation, IT, etc
  to improve capacity of Labour Centres to provide
  comprehensive services.

82
BUDGET 2001/2002
As contained in the Estimate of National
Expenditure (ENE)
83
MTEF ALLOCATIONS
6.3

8.3
R, MIL
3.9
00/01 R771,6 01/02 R801,7 02/03
R868,4 03/04 R922,9
R, mil
VOTED
ESTIMATE
84
EXPENDITURE PER PROGRAMME
85
EXPENDITURE PER STANDARD ITEM
86
MAIN DIVISIONS OF THE VOTE (2001/02)

• Administration
• Occupational Health and Safety of Persons
• Social Insurance
• Employment and Skills Development Services
• Labour Relations
• Labour Policy
• Service Delivery ( New Programme)
• Auxiliary and Associated Services

87
BUDGET PER PROGRAMME
88
BUDGET PER PROGRAMME

VOTE 01/02
PROG Rmil ADMIN 148,8
18,6 OHS 19,1 2,4 SI 22,1
2,7 ESDS 150,1 18,7 L R 165,5
20,6 L P 25,9 3,2 S D
256,6 32,1 AUX 13,5 1,7 TOTAL
801,6 100,0
R, mil
89
PROGRAMME ADMINISTRATION

• Expenditure defrayed by this programme include
• Audit Fees
• Consultants for IT systems and networks
• Security and cleaning services
• Mainframe costs for transversal systems
• Office Accommodation

90
PROGRAMME 7 SERVICE DELIVERY
91
BUDGET PER STANDARD ITEM
92
BUDGET PER STANDARD ITEM
VOTE 01/02

S ITEM Rmil PERS 299,8
37,4 ADMIN 77,9 9,7 INVENT 35,4
4,4 EQUIP 37,1 4,6 LAND
38,2 4,8 PROF 56,8 7,1 TRANS
241,3 30,1 MISC 15,1 1,9 TOTAL
801,6 100,0
R, mil
93
TRANSFER PAYMENTS

Year Rmil 97/98 298,6
98/99 312,2 99/00 441,9 00/01
285,6 01/02 241,3

R, mil
Includes allocation iro the Fund for the
Training of Unemployed Persons
94
TRANSFER PAYMENTS 2001/2002

Institution Rmil CCMA 136,6
NEDLAC 6,3 UIF
7,0 NPI 20,4 Shelt Empl
26,6 NSF
29,0 SANCB 0,1 DEAFSA
0,1 NCPDSA 0,1 SDPU
0,4 SPTSF 7,1 Str Civil Soc
7,6 TOTAL 241,3

R, mil
Excluding National Skills Levies
95
SKILLS DEVELOPMENT LEVIES
R, MIL
00/01 R1,400,0 01/02
R2,800,0 02/03 R3,000,0 03/04
R3,200,0
R, mil
96
THANK YOU