DEPARTMENT OF LABOUR

1
DEPARTMENT OF LABOUR

• PRESENTATION TO THE PORTFOLIO COMMITTEE
• MARCH 2005

DIRECTOR-GENERAL DR. VAN MKOSANA
2
STRUCTURE
Minister MMS Mdladlana, MP Minister of Labour
Dr. Van Mkosana Director-General Labour
Mr. Les Kettledas Ms. A Bird
Ms. M Xaba Mr P Mothiba DDG
LPLMP DDG ESDS/HRD DDG Corp. Serv.
Act DDG Serv. Del.
3
CONTENTS

1. Ministerial Programme of Action
2. Main Divisions of the Vote
3. 2004/2005 Expenditure Information
4. 2005/2006 MTEF Allocations
5. Projects per Main Division

4
1. Ministerial Programme of Action
5
1. Ministerial Programme of Action

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

6
1. Ministerial Programme of Action

• Addressing the challenges of the legacy of
  structural unemployment. There are two notable
  features of the countrys unemployment crisis
• the unskilled are simultaneously most likely to
  be first to lose their jobs in periods of
  employment contraction, and least likely to be
  hired in periods of employment expansion.
• the youth, which currently constitute 70 of the
  unemployed, are the dominant, identifiable cohort
  within this group of long-term unemployed
  individuals

7
1. Ministerial Programme of Action

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

8
1. Ministerial Programme of Action

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

9
1. Ministerial Programme of Action

• Addressing the challenges relating to domestic as
  well as cross-border migration.
• domestic describes a phenomenon whereby people
  from rural areas, most (though not all) of whom
  are unskilled migrate to urban areas in search of
  employment.
• cross-border migration refers to economic
  refugees who have left their country and settled
  in the urban areas of South Africa, hoping to
  find employment.Both phenomena bear the risk of
  increasing the numbers of unemployed people in
  large urban centres, with the concomitant greater
  pressure on public services and utilities.

10
1. Ministerial Programme of Action

• Addressing the challenge relating to the shortage
  of very specific skills required by domestic
  firms in order to both expand production and
  increase their global competitiveness.
• This challenge does not only require that we
  train less qualified people to acquire these
  skills, but also that re-orientation and
  retraining of those who have qualifications is
  undertaken.

11
1. Ministerial Programme of Action

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

12
1. Ministerial Programme of Action

• Addressing the challenges relating to the
  management of HIV and AIDS in the workplace in
  such a way that workers who are infected and
  affected are not unfairly discriminated against,
  on the basis of their HIV status.
• Allied to this is the challenge of preventing
  AIDS from adversely affecting workplace
  productivity. In addition, the pandemics
  deleterious impact in terms of a potential
  reduction of supply of skilled workers is noted.

13
1. Ministerial Programme of Action

• Addressing the challenges relating to ensuring
  that the labour market has an efficient and
  effective system of occupational health and
  safety fully integrated with a system of
  compensation for occupational injuries and
  diseases across government.
• The growth of the informal economy introduces a
  particular challenge in this regard.

14
1. Ministerial Programme of Action

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

15
1. Ministerial Programme of Action

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

16
1. Ministerial Programme of Action

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

17
1. Ministerial Programme of Action

• Strategic Objective 1 Contribution to employment
  creation.
• The Department of Labour will contribute towards
  employment creation in the following ways

18
1. Ministerial Programme of Action

• 1.1 Actively striving to ensure that its labour
  policies and strategies compliment national
  growth and development objectives.
• 1.2 New labour market regulations in relation to
  new job creation strategies, such as
  cooperatives, will be developed, implemented,
  monitored and evaluated.
• 1.3 Social dialogue will be strengthened to
  support growth and development.

19
1. Ministerial Programme of Action

• 1.4 There will be ongoing monitoring of the
  achievements and targets of government
  departments GDS commitments.
• 1.5 The Department will ensure that it meets its
  own GDS commitments.
• 1.6 Sectoral skills plans will be aligned to
  sectoral growth paths.

20
1. Ministerial Programme of Action

• 1.7 Provincial skills plans will be aligned to
  provincial economic growth and development
  strategies.
• 1.8 Expanded Public Works Programmes (EPWP)
  participants will be trained.
• 1.9 Learnership targets will be achieved as per
  the GDS targets.
• 1.10 Exit strategies for people on EPWP and
  learnerships will be developed and implemented

21
1. Ministerial Programme of Action

• Strategic Objective 2 Enhancing skills
  development.
• The Department of Labour will implement the
  adjusted national skills development strategy
  from 2005 to 2010 and will seek to address
  existing weaknesses and bottlenecks. This will
  be achieved by

22
1. Ministerial Programme of Action

• 2.1 NSDS 2001-2005 Targets achieved, reported
  and evaluated .
• 2.2 NSA to provide advice to the Minister of
  Labour on the implementation of the NSDS and
  related matters .
• 2.3 Critical Skills list prioritised and
  communicated
• 2.4 Quality training in all workplaces promoted
  and accelerated

23
1. Ministerial Programme of Action

• 2.5 Employability and sustainable livelihoods
  promoted through skills development .
• 2.6 Designated groups including new entrants
  assisted to participate in accredited learning
  and work-based programmes to acquire critical
  skills to enter the labour market and
  self-employment .
• 2.7 Quality and relevance of provision improved

24
1. Ministerial Programme of Action

• Strategic Objective 3 Promote equity in the
  labour market.
• The Department of Labour will seek to eradicate
  discrimination by vigorously implementing the
  employment equity legislation. To this end, the
  following interventions will be undertaken

25
1. Ministerial Programme of Action

• 3.1 The Department will conduct a study on the
  impact of the Employment Equity Act since its
  inception and its policy implications.
• 3.2 The Department will strengthen enforcement
  mechanisms whilst promoting the culture of
  self-regulation. In monitoring compliance,
  targeted audits will be embarked upon.

26
1. Ministerial Programme of Action

• 3.3 The employment Equity Strategy and NSDS
  2005-2009 will be aligned.
• 3.4 Technical Assistance Guidelines (TAGs) and
  codes of good practice will be implemented.

27
1. Ministerial Programme of Action

• 3.5 incremental Black Economic Empowerment (BEE)
  targets for procurement of goods and services
  will be incorporated into public entities
  associated with the Department.
• 3.6 Employment Equity and BB BEE legislation will
  be aligned.

28
1. Ministerial Programme of Action

• Strategic Objective 4 Protecting vulnerable
  workers.
• The Department of Labour will protect vulnerable
  workers by undertaking the following
  interventions

29
1. Ministerial Programme of Action

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

30
1. Ministerial Programme of Action

• 4.3 Compliance with legislation will be
  increased.
• 4.4 Bargaining councils will be established in
  vulnerable sectors (security, Civil Engineering,
  Contract Cleaning and the Building Industry)

31
1. Ministerial Programme of Action

• 4.5 The Child labour Action Programme will be
  finalised and implemented.
• 4.6 Sheltered employment factories will be
  restructured.

32
1. Ministerial Programme of Action

• Strategic Objective 5 Strengthening multilateral
  and bilateral relations.
• The Department of Labour will, over the next five
  years, promote a collective multilateral
  approach to global challenges and work for
  democratisation of global institutions that
  operate within its spheres of influence. The
  Departments interventions will include

33
1. Ministerial Programme of Action

• 5.1 Ensuring effective participation in the ILO,
  SADC and the AU Labour and Social Affairs
  Commission.
• 5.2 Effectively discharging South Africas
  obligations to the ILO.

34
1. Ministerial Programme of Action

• 5.3 Ensuring that the objectives of signed
  bilateral agreements are implemented and
  monitored and achieved.
• 5.4 Mobilising, coordinating and managing
  technical cooperation.

35
1. Ministerial Programme of Action

• Strategic Objective 6 Strengthening social
  protection.
• The Department of Labour will, over the next five
  years, seek to strengthen social support
  systems. The support will include

36
1. Ministerial Programme of Action

• 6.1 Ensuring an improved client satisfaction on
  Unemployment Insurance Fund and Compensation Fund
  services.
• 6.2 Achieving financial viability and
  sustainability of the Unemployment Insurance Fund
  and Compensation Fund.

37
1. Ministerial Programme of Action

• 6.3 Improvement in revenue collection by at least
  10 during the first year.
• 6.4 Extending the coverage of unemployment
  insurance to other vulnerable workers.
• 6.5 The national integration of compensation and
  occupational health and safety competencies
  across government departments.

38
1. Ministerial Programme of Action

• 6.6 The reduction of occupational health and
  safety incidents in targeted industries.
• 6.7 The reduction of workplace fatalities
  especially in high risk sectors.

39
1. Ministerial Programme of Action

• Strategic Objective 7 Promoting sound labour
  relations.
• The Department of Labour will continue to promote
  sound labour relations through

40
1. Ministerial Programme of Action

• 7.1 Ensuring a continuing decline of workdays
  lost due to industrial action.
• 7.2 Ensuring an effective and efficient dispute
  resolution system.
• 7.3 ensuring that the proportion of workers
  covered by collective agreements is increased.

41
1. Ministerial Programme of Action

• 7.4 Ensuring improved representation of small
  business interests in collective agreements.
• 7.5 Inclusion of broader economic and employment
  growth issues into collective bargaining
  agreements.

42
1. Ministerial Programme of Action

• 7.6 Active engagement and participation by the
  Department in tripartite statutory bodies.
• 7.7 Enhancing and extending social dialogue.

43
1. Ministerial Programme of Action

• Strategic Objective 8 Strengthening the capacity
  of labour market institutions.
• The Department of Labour will evaluate these
  institutions, asses their strengths and
  weaknesses and effect whatever interventions are
  required to increase their efficiency and enhance
  their effectiveness. In this regard, the
  Department will

44
1. Ministerial Programme of Action

• 8.1 Improve service delivery provided by
  statutory bodies and public entities associated
  with the Department, through clear performance
  standards for relevant agencies.
• 8.2 the views of the public will be sought to
  assess the services received from statutory
  bodies and public entities.

45
1. Ministerial Programme of Action

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

46
1. Ministerial Programme of Action

• Strategic Objective 9 Monitoring the impact of
  legislation.
• The Department of Labour will, during the third
  cycle of democratic governance carry out
  research, monitoring and evaluation aimed at
  determining the extent to which labour market
  policies are harmonised with other economic
  policies, the Department will

47
1. Ministerial Programme of Action

• 9.1 Publish bi-annual labour market reviews and
  labour statistics reports.
• 9.2 The impact of aggregate and disaggregate
  departmental policies and programmes on stated
  goals and objectives will be researched and
  reported.

48
1. Ministerial Programme of Action

• 9.3 Annual client satisfaction surveys will be
  conducted on levels of service delivery and made
  public.
• 9.4 the harmonisation of labour market policies
  and other government policies will be promoted.
• 9.5 Strategic partnerships and cooperation with
  established research institutions will be
  embarked upon.

49
1. Ministerial Programme of Action

• Strategic Objective 10 Strengthening the
  institutional capacity of the Department.
• The Department of Labour will, during the period
  2004 2009, undertake an evaluation of lessons
  learned in the last five years and identify areas
  of work that need to be strengthened in order to
  further increase the effectiveness of the
  institution in delivering its services. The
  Department will

50
1. Ministerial Programme of Action

• 10.1 Improve service delivery to the external
  clients of the Department by enhancing
  decentralisation of services.
• 10.2 Improved service delivery provided by
  agencies associated with the Minister of Labour
• 10.3 Improved service delivery to the internal
  clients of the Department.

51
1. Ministerial Programme of Action

• 10.4 Improved management practices within the
  Department.
• 10.5 Full PFMA compliance achieved by the
  Department and public entities.
• 10.6 Internal compliance with labour laws.
• 10.7 internal and external communication are
  strengthened.

52
2. MAIN DIVISIONS OF THE VOTE
53
2. Main Divisions of the Vote

1. Administration
2. Service Delivery
3. Employment and Skills Development Services /
   Human Resource Development
4. Labour Policy and Labour Market Programmes
5. Social Insurance

54
2. Main Divisions of the Vote

1. Administration DDG Corporate Services
   Ms. Masodi Xaba

55
2. Main Divisions of the Vote

1. AdministrationPurposeConduct the overall
   management of the Department and provide support
   and advisory services.

56
2. Main Divisions of the Vote

1. Service Delivery Acting DDG Service
   Delivery Mr. Phineas Mothiba

57
2. Main Divisions of the Vote

1. Service DeliveryPurposeProtect the health
   and safety of workers, and implement and enforce
   Department of Labour policies.

58
2. Main Divisions of the Vote

1. Employment and Skills Development Services /
   Human Resources Development DDG
   ESDS/HRD Ms. Adrienne Bird

59
2. Main Divisions of the Vote

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

60
2. Main Divisions of the Vote

1. Labour Policy and Labour Market Programmes
   DDG LPLMP Mr. Les Kettledas

61
2. Main Divisions of the Vote

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

62
2. Main Divisions of the Vote

1. Social InsuranceDDG LPLMPMr. Les
   KettledasUnemployment Insurance FundDDG
   Service DeliveryMr. Phineas MothibaCompensation
   Fund

63
3. 2004/2005 EXPENDITURE INFORMATION
64
3. 2004/2005 Expenditure Information
65
3. 2004/2005 Expenditure Information
66
3. 2004/2005 Expenditure Information
67
3. 2004/2005 Expenditure Information
68
3. 2004/2005 Expenditure Information
69
4. 2005/2006 MTEF ALLOCATIONS
70
4. 2005/2006 MTEF Allocations
71
4. 2005/2006 MTEF Allocations
72
4. 2005/2006 MTEF Allocations
73
4. 2005/2006 MTEF Allocations
74
4. 2005/2006 MTEF Allocations
75
5. PROJECTS PER MAIN DIVISION
76
5. Projects per Main Division

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

77
5. Projects per Main Division

• HRMImplementation of three Learnerships in DoL
  namely
• ESDS 220 (18.2) and 18 (18.1) learners
• Contact Centre Management 32 (18.2) learners
• IES 221 (18.2) and 6 (18.1) learners
• Implementation of the Internship Program
• 154 Interns participated in the program
  nationally.

78
5. Projects per Main Division

• IT PPPA joint partnership between DoL and SBS
• SBS has been contracted to add business value to
  the DoL through the provisioning of technology
  according to a pre-agreed schedule of delivery
  against pre-agreed service lines.
• Costs are, inter alia, calculated based on the
  unitary fee attached to the number of PCs in the
  DoL.
• Joint risk sharing with penalties for late
  delivery.

79
5. Projects per Main Division

• Employment and Skills Development Services /
  Human Resources Development
• Project 1 - NSDS 2005 2010
• Aims to guide Skills development
  implementation 01 April 2005 31 March 2010
• Unveiled by the Minister at National Skills
  Conference on 03 March 2005
• Projected R21.9 billion to be spent during the
  next 5 years
• SETAs to receive R16.8 billion and NSF R5.2
  billion

80
5. Projects per Main Division

• Project 2 - NSDS Implementation Report for 2004
  - 2005
• Aims to consolidate and report on achievements
  of NSDS 2004/5 implementation and impact.
• To be published at the next National Skills
  Conference in the latter half of 2005.
• Include achievement and exhibitions from all
  SETAs, NSF and DoL Provincial Offices and
  Umsombomvu Youth Fund.

81
5. Projects per Main Division
Project 3 SETA Establishment

• Aims to establish SETAs for a second five year
  term period from 2005 - 2010
• 20 Certificates of Establishment handed out by
  Minister at National Skills Conference on 03
  March 2005
• 5 SETAs in process of being amalgamated into 3
  SETAs Target Date 30 June 05
• Revision in progress of SETA Scope of Coverage
  and Levy Collection System

82
5. Projects per Main Division
Project 4 SETA Grant and Service Level
Agreement Regulations

• Aims to establish a legal basis for funding of
  skills development through SETAs and the
  performance management of SETAs
• Regulations in process of being finalised by NSA
  and State Law Advisors for implementation by 1
  April 2005.
• Regulations will control SETA spending of R16.8
  billion over next five years
• Revisions in progress of quarterly and annual
  reporting processes from SETAs

83
5. Projects per Main Division
Project 5 SETA Support

• Aims to build capacity in SETA Governance and
  SETA Management Structures
• R 4 million from NSF to be spent on Board
  Performance Evaluation and Capacity Building
  Project
• Includes Implementation of Quality Learning Forum
  to support for example FET/HET Providers as well
  as SETA Financial and Risk Management processes

84
5. Projects per Main Division
Project 6 INDLELA

• Aims to re-position INDLELA as Institute of
  Excellence for
• Apprentice and Learnership Assessments
• Development of Master Artisans
• Development of Technology Centre with Dept of
  Science Technology for Toolmakers
• Projected R30 million programme budget to be
  spent per year.

85
5. Projects per Main Division
Project 7 National Skills Fund

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

86
5. Projects per Main Division

• Labour Policy and Labour Market Programmes
• Labour market research studies and publications
  approved.
• National Skills Survey.
• Baseline evaluation of Learnerships.
• Changing nature of work and atypical forms of
  employment in South Africa.
• Worker cooperatives and employment creation in
  South Africa.
• 2003 Industrial Action Report.

87
5. Projects per Main Division

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

88
5. Projects per Main Division

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

89
5. Projects per Main Division

• International Relations.International Labour
  Organisation
• South Africa continues to be an active member of
  the ILO governing body, participating
  successfully in the ILO Conference in June 2004,
  and contributing to the broader global goals of
  poverty alleviation and the decent work agenda of
  the ILO.
• Africa
• South Africa will be hosting the AU Labour and
  Social Affairs Commission from 18 23 April 2005

90
5. Projects per Main Division

• Labour Relations.Strengthening Civil Society
• Trade Union capacity development programme
  Supporting Ditsela, Workers College trade union
  federations and their affiliated unions in labour
  relations training.
• Sexual harassment education project training
  people in the workplace about sexual harassment
• Funding for South African Labour Bulletin.
• Funding for NOSA publications.

91
5. Projects per Main Division

• Service Delivery.Integration of OHS
  Compensation competencies across government.
• Management reforms restructuring of
  compensation fund
• LESEDI case management system P2
• Career information and guidance system
• Inspection and Enforcement Services Mobility
  Project.

92
THANK YOU