1. Annual Report: 2008/09 Presentation to the Portfolio Committee on Labour 20 October 2009 Presentation to the Portfolio Committee on Labour 20 October 2009 Overall Responsibility Director General: Jimmy Manyi Overall Responsibility Director General: Jimmy Manyi

2. Programme 1: Administration  Communication  Financial Management  Human Resources Management  Information Technology  Internal Audit  Risk Management  Security Services Programme 2: Service Delivery (SD) Programme 3: Employment and Skills Development Services / Human Resources Development (ESDS) Programme 4: Labour Policy and Labour Market Programmes (LP & LMP) Programme 5: Social Insurance  Unemployment Insurance Fund (UIF)  Compensation Fund (CF) Programmes / Branches of the DoL 2

3. DoL KEY RESULT AREAS 3 DoL KEY RESULT AREAS 3 The Ministerial Programme of Action (2004 – 2009) consists of the following Strategic Objectives or Key Result Areas (KRA’s): KRA 1: Contribution to Employment Creation KRA 2: Enhancing Skills Development KRA 3: Promote Equity in the Labour Market KRA 4: Protecting Vulnerable Workers KRA 5: Strengthening Multilateral and Bilateral Relations KRA 6: Strengthening Social Protection KRA 7: Promoting Sound Labour Relations KRA 8: Strengthening the Capacity of Labour Market Institutions KRA 9: Monitoring the Impact of Legislation KRA 10: Strengthening the Institutional Capacity of the Department

4. Programme 1: Administration Pages 26 - 38 of the Annual Report

5. Programme 1: Administration 5 Programme 1: Administration 5 Purpose: Provide for the overall management of the department and for strategic support and advisory services. Measurable Objectives:  Communication creates awareness about available services in DoL.  Financial Management, Enhance Assets and office administration and supply chain management.  Human Resources Management ensures effective and efficient utilisation of human capital and renders legal services to the department.  Information Technology through the PPP with Siemens caters for the full spectrum of IT needs and requirements of the DoL.

6. Programme 1: Administration 6 Programme 1: Administration 6 Purpose: Provide for the overall management of the department and for strategic support and advisory services. Measurable Objectives: (Continued)  Internal Audit provides management and the Audit committee with independent objective assurance that improves effectiveness of governance, risk management and control processes  Risk Management pro-actively manages / addresses risks that have a negative impact on the DoL’ s performance  Security Services renders security support aimed at protecting DoL information, staff and assets

7. Programme 1: Administration 7 Programme 1: Administration 7 Sub-Programme: Communication Achievements  Stakeholder Relations: Through exhibitions showcased services of DoL in various provinces (See page 26 of the Report).  Marketing and advertising: 20 Marketing & advertising campaigns implemented on: - Worker rights & Human rights, - EE Reporting, - Occupational Health & Safety, - Learnerships for matriculants and unemployed graduates, - Domestic Workers Sectoral Determinations, - Wage increase awareness.  Media Liaison: Profiled the DoL in the electronic & print media through media statements, press conferences & interviews for the Executive & Senior Managers.

8. Programme 1: Administration 8 Programme 1: Administration 8 Sub-Programme: Human Resources Management Achievements  HR Plan for 2006 – 2009 is in place.  Training & Development: Senior Managers (SMS) participated in Training & Development Programme.  Performance Management: Increased compliance at all levels (SR 1 - 16).  3 Pillars of Employee Health & Wellness implemented: - HIV/AIDS / TB Management : Promoted Voluntary Counselling & Testing, - Disease Management, - Health and Productivity Management.  Employment Equity: Implementation of EE Plan monitored monthly.

9. Programme 1: Administration 9 Programme 1: Administration 9 Sub-Programme: Office of the CFO Directorate: Financial Management Achievements  Held regular audit matters forums to monitor & reduce the level of audit queries for DoL, NSF & Sheltered Employment Factories, INDLELA, CF & UIF.  Annual financial statements prepared according to prescripts.  Budget Advisory Committee provided support to spending units of DoL on Financial Management & Control – Spending was within budget.

10. Programme 1: Administration 10 Programme 1: Administration 10 Sub-Programme: Office of the CFO Directorate: Financial Liaison – Public Entities Achievements  Implemented enhancements to the Annual Financial Statements for better compliance.  Facilitate submission and analysis of quarterly financial reports.  Identified performance gaps and generated reports for early warnings.  Analysis and capturing of budget information for all SETA’s.  Follow up and support of all critical and struggling Public Entities – Guidance & Feedback.  Capacity building, training and skills transfer to Public Entity Personnel.

11. Programme 1: Administration 11 Programme 1: Administration 11 Sub-Programme: Office of the CFO Directorate: Office Administration and Supply Chain Management Achievements  Managed office accommodation and Repair Maintenance Program on State owned building through Public Works. - 9 contracts completed and 4 to be complete in 2010. - Contracts for 12 Sheltered Employment Factories completed. - Bid Process for the HQ Building finalised – work start in 2009.  Document security & archival storage facility improved.  A sub-directorate for Asset Management established – with major asset registers in place for all provinces and Head Office.  Asset registers for IT PPP with Siemens were developed.

12. Programme 1: Administration 12 Programme 1: Administration 12 Sub-Programme: Office of the CIO Information Technology Achievements  Policies developed to cover key areas in the IT environment: - Information Systems Security - Network and User Security  An IT disaster recovery plan was approved.  Business Applications deployed: - Additional functionality & enhancements to current legacy systems at CF. - Additions and enhancements to the EE system. - ESSA rolled out to all Labour Centres and enhancements made for stability & data integrity. - Financial Management Systems for the UIF, CF & NSF initiated.  Operations: Service Delivery for remote areas enabled by providing IT Service to 20 Mobile Labour Centres.

13. Programme 1: Administration 13 Programme 1: Administration 13 Directorate: Internal Audit Achievements  57 audits scheduled for DoL, NSF & Sheltered Employment Factories – 51 complete,  42 final audit reports issued.  The audit committee of the departments functions optimally & meets regularly.  A risk management Unit introduced and a risk management plan developed to be managed by senior management.

14. Programme 1: Administration 14 Programme 1: Administration 14 Directorate: Security Services Achievements  Electronic Security system implemented in high risk KZN.  Several security appraisals and assessments implemented in key provincial offices & labour centres.  Tender process to improve CF security at advanced stage.  Contract security procured for various provincial offices & labour centres.  Cases of IT equipment losses reduced by 75% with the introduction of investigations on security breaches & theft of IT equipment.  Officials are paying back the dept the rand value of equipment losses.

15. Programme 2: Service Delivery Pages 35 - 52 of the Annual Report

16. Programme 2: Service Delivery 16 PROGRAMME PURPOSE: Ensure implementation of and compliance with department of labour policies and programmes through monitoring, evaluation and inspections ENE 2008/09-2010/11 Measurable Objectives:  Increase percentage of registered work-seekers placed in registered employment opportunities to 70% by 2010/11  Assess and refer 10% of work-seekers to identified critical and scarce skills development programmes by 2010/11  Ensure training of 90 000 unemployed people: - 70% placed in employment through the NSF and SETA’s - 26% of training is accredited by 2010/11

17. Programme 2: Service Delivery 17 PROGRAMME PURPOSE: Ensure implementation of and compliance with department of labour policies and programmes through monitoring, evaluation and inspections ENE 2008/09-2010/11 Measurable Objectives: (Continued)  Reduce workplace related injuries, illnesses and deaths by 2% by 2010/11.  Ensure 75% compliance with labour legislation by inspected workplaces 2010/11.  Promulgate the National Occupational Health and Safety legislation and implement Act by March 2010.  A total of 90% UIF claims processed and paid within 5 weeks.

18. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL 1. A single Integrated Employment Services System (ESSA) is rolled out and enhanced to ensure improved access to employment services 1.1 Employment Services system rolled out to all 125 labour centres 1.2 Pilot studies to roll out the six ES offerings to two labour centres: Thohoyandou and Pretoria 1.3 The Resource Centre and Career information and guidance introduced in pilot sites serviced 4 141 clients 1.4 A roving team of 37 staff members trained to provide career guidance and counselling. 13 107 clients counselled and 5 586 were job seekers (Pilot Sites) 1.5 More job-seekers accessed Employment Services and supported, especially through career counselling and assessments, networking with stakeholders, the matching of individuals to opportunities, recruitment and selection to access opportunities KRA 1: Contribute to Employment Creation 18 KRA 1: Contribute to Employment Creation 18

19. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1.Increase percentage of registered work- seekers placed in registered employment opportunities to 70% by 2010/11. * See Table 2.1 on page 36 provincial breakdown 1.1 Registered work-seekers increased by 252 627 in 2008/09 1.2 Placement opportunities registered on database increased by 10 968 1.3 There were 7 553 job opportunities 1.4 Over 421 686 job-seekers were registered on the database compared to 169 059 in 2007/08 1.5 Over 26 332 (22 917 job and 3 415 learning) placement opportunities were registered on the database compared to only 15 364 job opportunities registered in 2007/08 1.6 Over 70% of the registered placement opportunities (65% permanent employment and 104.9% learning opportunities) were filled compared to 36.3% in 2007/08. 1.7 Total of 18 404 job seekers placed 14 898 (65%) in employment and 3 415 in learning against a target of 15 000 compared to 5 578 in 2007/08. KRA 1: Contribute to Employment Creation 19 KRA 1: Contribute to Employment Creation 19

20. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. Assess and refer 10% of work- seekers to identified critical and scarce skills development programmes by 2010/11 * See Table 2.2 on page 37: provincial break down 1.1 8 531 registered job-seekers were assessed and 7 343 (86%) were referred to identified critical and scarce skills development programmes against a target of 6 000 compared to 17 375 assessed and 13 039 referred in 2007/08 1.2 7 546 (89%) of the 8 531 learners were assessed with the SpEEx assessment instrument for learnerships, internships, etc. These were mainly for strategic government job creation initiatives such as Coega, Department of Health contribution to EPWP NYS (data capturers) the EPWP NYS Infrastructure, GTZ ALMS project, the transport and construction sectors KRA 1: Contribute to Employment Creation 20 KRA 1: Contribute to Employment Creation 20

21. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. NSDS 2008-2009 year 4 targets implementation aligned to ASGI-SA implemented. * See Tables 2.5, 2.6, 2.7 & 2.8 on pages 41 - 43: Provincial Breakdown 1.1 Provincial Skills Plans were reviewed to ensure alignment with the PGDS/IDP/LED and 1 673 projects were identified and listed 1.2 The training programmes in EPWP and the NODES were finalised:  A total number of 10 390 unemployed were trained in support of EPWP at a cost of R36 656 998  A total number of 3 315 unemployed were trained in support of ISRDP at a cost of R15 395 038  A total number of 447 unemployed were trained in support of URP at a cost of R2 907 347 KRA 2: Skills Development 21 KRA 2: Skills Development 21

22. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1.Employment Equity implementation and enforcement mechanisms in place * See Table 2.9 on page 43 : Provincial Break down 1.1 20 provincial staff members on the project are capacitated to enforce Employment Equity Act (EE Act) and 74 employers were subjected under the EEA DG review 1.2 12 514 EE designated employers were identified to enforce procedural compliance and only 9 723 were inspected and 8 112 (83%) complied within 90 days of inspection against a target of 10 000 compared to 8 475 inspected and 6 881 (81%) complying at the end of March 2008. 1.3 There is noticeable increase in the capacity to monitor and enforce EE procedural compliance. Although the target set was missed by 277, over 1 248 more EE designated employers were inspected and over 2% more compliance achieved compared to 2007/08 KRA 3: PROMOTE EQUITY IN THE WORKPLACE 22

23. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. At least 180 000 workplaces are inspected and 80% compliance levels achieved within 90 Days of inspection * See Table 2.11 on pages 46 1.1 The compliance level increased by 5% from 78% in 2007/08 to 83% in 2008/09 although the total number of workplaces inspected decreased by 46 968 from 200 665 in 2007/08 to 153 697 in 2008/09 1.2 The volume of workplaces inspected and the current complement of the Inspectorate remains a challenge 1.3 To monitor and enforce compliance, a total of 23 297 undertakings, 1 225 improvement notices, 9 908 contravention notices, 1 255 prohibition notices and 2 251 compliance orders were issued KRA 4: PROTECTING VULNERABLE WORKERS 23 KRA 4: PROTECTING VULNERABLE WORKERS 23

24. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. Coordinate and monitor the investigation and settlement of reported labour complaints/disputes to ensure 80% settlement rate within 90 days. * See Table 2.12 on page 46 1.1 A total of 178 863 (79%) of the 226 297 labour complaints received were investigated and finalised within 90 days against a target of 80% compared to 173 057 (79%) of the 220 191 complaints received finalised. 1.2 The 80% target was missed by 1%, however over 6 106 more complaints were received and over 5 806 more complaints were finalised compared to 2007/08 although the percentage settlement remains the same at 79%. KRA 4: PROTECTING VULNERABLE WORKERS 24 KRA 4: PROTECTING VULNERABLE WORKERS 24

25. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1.Ensure that at least 2 000 of reported OHS incidents are finalised within 90 days as per directives. * See Table 2.13 on page 47 1.1 A total of 2 956 (56%) of the 5 326 OHS incidents reported were investigated and finalised within 90 days against a target of 2 000 KRA 4: PROTECTING VULNERABLE WORKERS 25 KRA 4: PROTECTING VULNERABLE WORKERS 25

26. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. Targeted advocacy and blitz inspections to inspect at least 10 000 workplaces and to decrease work place incidents in the High Risk Industries by at least 2% * See Tables 2.14, 2.15, 2.16 & 2.17 on page 48 – 49 1.1 Advocacy and blitz inspections programme developed targeting high risk industries and 10 285 inspections were conducted:  Construction - 2 458,  Iron and Steel - 2 449,  Food and Beverage - 2 701,  Agriculture - 2 677 against a target of 10 000 KRA 4: PROTECTING VULNERABLE WORKERS 26 KRA 4: PROTECTING VULNERABLE WORKERS 26

27. Programme 3: Employment and Skills Development Services and Human Resources Development (ESDS) Pages 53 - 66 of the Annual Report

28. Programme 3: Employment and Skills Development 28 Services / Human Resources Development (ESDS) PROGRAMME PURPOSE: Contribute to employment creation and skills development by promoting and monitoring the achievement of the objectives of the National Skills Development Strategy (NSDS) and the National Human Resource Development Strategy ENE 2008/09-2010/11 Measurable Objectives:  Develop the skills of work-seekers by training 90 000 unemployed persons placing 70% in employment for NSF Projects and for SETA’s (Learners in critical skills)  Provide skills development support through National Skills Fund (NSF) and Sector Education and Training Authority (SETA) funding to SMMEs, NGOs and co-operatives

29. Programme 3: Employment and Skills Development Services / Human Resources Development (ESDS Programme 3: Employment and Skills Development Services / Human Resources Development (ESDS) 29 ENE 2008/09-2010/11 Measurable Objectives: (Continued)  Provide top-up funding to SETAs, the National Student Financial Aid Scheme (NSFAS) and the National Research Foundation to assist 26 000 unemployed learners to enter scarce and critical skills programmes in learnerships, apprenticeships, internships, bursaries and skills programmes  Provide funding through partnerships with Umsobomvu Youth Fund and the Small Enterprise Development Agency (SEDA) to support 3 000 youth in new venture creation projects  Ensure that 70 % of new ventures are sustainable after completion of the programme through training and mentorship

30. Skills Levies collected and transferred to SETAs and NSF 30 Levy Year 2008 /09 Year Collected April 2008 – March 2009 Total Amount Collected R Amount transferred to SETAs R Amount transferred to NSF R Grand Total 7 333 171 0495 866 536 8371 466 634 212

31. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implementation at INDLELA * See Table 3.1 on page 53 and Table 1 on page 56 1.1 1 200 small BEE enterprise and cooperatives receive skills dev support. 1.2 10 000 people participate in trade tests at INDLELA 1.3 40% pass rate for trade tests 1.4 18 693 apprentices registered by SETA’s for training. 1.1 2 251 1.2 8 337 assessed 3 392 passed 1.3 41% pass rate 1.4 17 228 KRA 2: Enhance Skills Development 31

32. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the National Skills Fund (NSF) and Admin Transfers Achieve NSF strategic projects targets in support of Provincial Growth and Development Strategies * See Table 3.2 on page 53 1.1 16 000 unemployed people assisted to enter learning programmes 1.2 8 000 people completed learning programmes 1.3 4 500 undergrad bursaries awarded 1.4 1 500 post grad bursaries were awarded 1.5 40 000 NSF funded/ABET learners recruited and commenced learning programmes 1.1 41 336 1.2 31 003 1.3 1 752 1.4 997 1.5 21 413 KRA 2: Enhance Skills Development 32

33. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the NSF Sector Education and Training Authorities (SETA’s) * See Table on pages 54 & 60 1.1 90 000 unemployed people trained (Training suspended in provinces due to misaligned procurement procedures with DoL procedures – AG query) 1.2 63 000 trained unemployed people placed in employment (Recession resulted in poor job placements) 1.3 400 community based co- operatives receive skills support funded by NSF 1.4 5 865 SMME’s, NGO’s Co-ops and small BEE enterprises receive skills support 1.1 15 169 trained 1.2 8 885 1.3 367 1.4 7 601 KRA 2: Enhance Skills Development 33

34. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the Sector Education and Training Authorities (SETA’s) * See Table on pages 55 & 63 1.1 44 640 ABET employed people trained 1.2 56 506 workers to be assisted to enter scarce & critical skills in learnerships, apprenticeships, internships & bursaries 1.3 43 316 unemployed people assisted to enter scarce & critical skills in learnerships etc. 1.4 9 088 learners in critical skills (HET & FET institutions) placed for experience locally & internationally 1.5 3 276 youth trained in New venture Creations 1.1 40 851 registered 14 221 completed training 1.2 103 293 workers assisted to enter 109 270 completed learning 1.3 60 125 unemployed enter skills 63 658 completed 1.4 13 148 placed in work places 1.5 3 900 youth trained KRA 2: Enhance Skills Development 34

35. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the Sector Education and Training Authorities (SETA’s) * See Tables on pages 57 & 58 1.1 15 139 Sector Development Facilitators & Specialists trained 1.2 3 480 large firms & 4 791 medium firms supported through skills dev. 1.3 25 004 small levy- paying firms supported through skills dev. 1.4 84 govt depts. spend at least 1% of personnel budget on training 1.5 1 406 small BEE and BEE co- ops supported with skills dev. * 32 companies received Ministerial awards for outstanding contribution to national skills dev. 1.1 18 836 trained 1.2 4 284 large firms 5 670 medium firms 1.3 26 736 small levy- paying firms supported 1.4 65 (77% of the target) 1.5 2 251 supported KRA 2: Enhance Skills Development 35

36. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the Sector Education and Training Authorities (SETA’s) * See Table on page 59 1.1 Annual increase of people who benefit from work place skills development support – training for employment & re-employment 1.2 Business Process Outsourcing and Off-shoring (DTI investment incentive programme) implemented. 1.3 R60 million for above programme committed over 3 years & 12 440 workers targeted to benefit 1.1 2 069 more new workers Total 6 156 trained Total expenditure: 45 SMME’s benefitted 1.2 151 trained 7 applications approved, 1 pending. 1.3 One claim of R1, 596 million paid KRA 2: Enhance Skills Development 36

37. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the National Skills Authority (NSA) & National Skills Fund (NSF) * See Table on page 64 1.1 92 provider institutions accredited to deliver New Venture Creation qualification 1.2 Improve the quality of service delivered by skills development institutions 1.3 To improve stakeholder capacity & commitment to the National Skills Development Strategy (NSDS), NSF availed R20 million to the 18 constituencies of the NSA for capacity building of their members 1.1 138 institutions accredited 1.2 The refined Quality Council for Trades & Occupations (QCTO) policy & establishment of the body 1.3 Only 7 constituency organisations took up the funding offer and 3 263 members benefitted. KRA 2: Enhance Skills Development 37

38. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Promoting and accelerating quality training for all in the work place through the National Skills Fund (NSF) * See Tables on page 70 - 71 1.1 Work Place Skills Development Support Programme (WSDSP) implemented with 10% increase of beneficiaries 1.1 Total workers trained increased to 6 156 (2008/09) from 3 378 (2007/08) = 82% increase 45 SME benefitted (53 claims paid ) KRA 2: Enhance Skills Development 38

39. Programme 4: Labour Policy and Labour Market Programmes (LP & LMP) Page 67 of the Annual Report

40. Programme 4: Labour Policy and Labour Market Programmes Programme 4: Labour Policy and Labour Market Programmes 40 PURPOSE: Establish an equitable and sound labour relations environment and promote South Africa’s interests in international labour matters through research, analysing and evaluating labour policy, and providing statistical data on the labour market, including providing support to the institutions that promote social dialogue. ENE 2008/09-2010/11 Measurable Objective:  Improve employment equity by inspecting additional Johannesburg Stock Exchange listed companies each year for substantive compliance with legislation.

41. Programme 4: Labour Policy and Labour Market 41 Programmes Performance IndicatorTargetActual statusFuture Projections 2008/09 2009/10 Percentage of top 100 Johannesburg Securities Exchange (JSE) listed companies assessment for employment equity 60 companies74 companies (74%) Follow up on the 106  In 2009/10 DoL will conduct follow ups on the total 106 companies assessed in the previous 3 years (2006 -2008).  Some companies will be assessed at provincial level as part of building this capacity in the provinces.

42. Programme 5: Social Security Unemployment Insurance Fund (UIF) Compensation Fund (CF) Both the CF and the UIF publish their own Annual Reports in terms of the Public Finance Management Act.

43. Thank you