PORTFOLIO COMMITTEE PRESENTATION 27 MARCH 2007 STRATEGIC PLAN 2007-2010 PORTFOLIO COMMITTEE PRESENTATION 27 MARCH 2007 DIRECTOR-GENERAL: DR. VAN MKOSANA

CONTENTS VISION MISSION STATEMENT MINISTERIAL PROGRAMME OF ACTION 2004-2009 ACHIEVEMENTS STRATEGIC OVERVIEW AND KEY POLICY DEVELOPMENTS MEDIUM-TERM STRATEGIC OBJECTIVES 2007/2010 SERVICE DELIVERY IMPROVEMENT PROGRAMME INFORMATION TECHOLOGY PLAN THROUGH A PUBLIC PRIVATE PARTNERSHIP (PPP) HUMAN RESOURCE PLAN PUBLIC ENTITIES AND OTHER AGENCIES MTEF ALLOCATIONS CONCLUSION

1. VISION The Department will strive for a labour market which is conducive to economic growth, investment and employment creation and which is characterized by rising skills, equity, sound labour relations, respect for employment standards and worker rights.

2. MISSION STATEMENT The Department of Labour will play a significant role in reducing unemployment, poverty and inequality through a set of policies and programmes developed in consultation with social partners, which are aimed at: Improved economic efficiency and productivity Skills development and employment creation Sound labour relations Eliminating inequality and discrimination in the workplace Alleviating poverty in employment Enhancing Occupational Health and Safety awareness and compliance in the work place Nurturing the culture of acceptance that worker rights are human rights

ORGANOGRAM MINISTER OF LABOUR DIRECTOR - GENERAL DDG ESDS & HRD DDG LP&LMP DDG SD DDG CS

3. MINISTERIAL PROGRAMME OF ACTION 2004-2009 STRATEGIC OBJECTIVES Contribution to employment creation Enhancing skills development Promote equity in the labour market Protecting vulnerable workers Strengthening multilateral and bilateral relations Strengthening social protection

MINISTERIAL PROGRAMME OF ACTION (continued) STRATEGIC OBJECTIVES Promoting sound labour relations Strengthening the capacity of labour market institutions Monitoring the impact of legislation Strengthening the institutional capacity of the Department

4. ACHIEVEMENTS 5.1 Employment creation By end of December 2006 86 951 unemployed people trained of which 59 828 placed and 35,8% of training quality assured

ACHIEVEMENTS (continued) 5.2 Skills development By end of December 2006 National Skills Fund Total projected NSF income is R 2.4 billion. R 1.47 billion was committed to projects and R 640 million paid out 7 tenders awarded to the amount of R103m under the NSF to train 20,000 ABET learners. SETAs trained 11 268 on all ABET levels Scarce and critical skills list developed and widely distributed and 6,548 Skills Development Facilitators/ Sector specialists received training

ACHIEVEMENTS (continued) Seta Coordination All 23 SETA Service Level Agreements concluded by 30th July 2006 48 982 (25 883 unemployed + 23 149 workers ) learners have entered learning programmes, and 19 052 (12 081 unemployed + 6 971) successfully completed 1 729 learners entered new venture creation programmes

ACHIEVEMENTS (continued) Indlela 6 889 apprenticeship assessments were arranged, 79 candidates withdrew and 1 076 were absent, 5 813 were tested and 2 364 (40%) passed.

ACHIEVEMENTS (continued) 5.3 Employment equity Director-General review system was developed and implemented 6 Large JSE listed companies out of the 2 085 companies assessed were subjected to a review by Director-General due to their unacceptable representation levels The 6th Commission for Employment Equity Annual Report was launched in September 2006

ACHIEVEMENTS (continued) 5.4 Protection of vulnerable workers Total number of workplaces reached totalled 145 223 and the level of compliance is 70% Three sectoral determinations were reviewed during the reporting period i.e. Private Security, Contract Cleaning and Civil Engineering. An awareness strategy has been developed about the nature and extent of child labour in SA.

ACHIEVEMENTS (continued) 5.5 International relations SA remains a titular Member of ILO Governing Body and the Minister was appointed chairperson of ILO Governing Body for a year SA was instrumental in the revival of SADC Labour and Social Sector structures

ACHIEVEMENTS (continued) 5.6 Strengthening social protection Unemployment Insurance Fund Workers covered by UIF have increased by 2.5% to 6.6 million. Total number of claims was 408 995 of which 393 392 was approved by December 2006. The fund collected R5.8 billion as at December 2006 an improvement of 18% compared to the same period in the previous year. UIF currently has assets of R18.9 billion, an increase of 27% on the 2005/06 financial year end All beneficiaries are being paid their benefits through Electronic Funds Transfer with effect from January 2006.

ACHIEVEMENTS (continued) Compensation Fund 73% of claims that were part of the backlog prior to December 2004 have been settled 53% of claims received with complete documentation are settled within 90 days compared to 46% last year.

ACHIEVEMENTS (continued) 5.7 Promoting sound labour relations 38 Collective agreements were extended to non-parties covering 779 838 workers Between April 2006 and December 2006 CCMA received 88 947 referrals and settled 64% Monitoring of developments in the industrial relations arena has improved with the annual industrial action report published

ACHIEVEMENTS (continued) 5.8 Strengthening capacity of labour market institutions R9 447 000 was allocated to the Strengthening Civil Society Fund (SCSF) for training of organized and unorganized vulnerable workers

ACHIEVEMENTS (continued) 5.9 Monitor the impact of legislation Bi-Annual labour market review, annual industrial action reports and quarterly and annual labour market bulletins published Human Sciences Research Council appointed as research partner to ensure objective implementation of research projects

ACHIEVEMENTS (continued) 5.10 Strengthening the Department’s institutional capacity An Employment Equity Plan for the Department covering the period June 2006 until May 2009 was developed and is being implemented and annual reports on progress will be submitted in line with Employment Equity Act An HIV prevalence study was conducted and it revealed that 88% of staff who participated was HIV negative and 12% tested HIV positive Introduction of project management as a way of doing DOL business Upgrading of Provincial heads ranks to Chief Director as part of IBS initiative

5. STRATEGIC OVERVIEW AND KEY POLICY DEVELOPMENTS Decentralising functions and delegating authority Labour market legislation and policies Skills development Restructuring the Compensation Fund – phase 2 Integration of occupational health and safety competencies across government Decent work country programme

6. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 Service Delivery Decentralisation of functions and delegation of authority to provincial offices and labour centres. A single, improved and integrated Employment Services System is rolled out to ensure improved access to employment services 90 000 unemployed learners trained, 26% of trained received accredited training and 70% trainees placed

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Inspection and Enforcement Services Director-General review system implemented, targeting critical sectors for substantive compliance by March 2008. Turnaround time for employment equity designated employers (to be ?) inspected for procedural compliance following a complaint is within 90 days. Compliance Employment Equity Award System implemented by March 2008 Adjusted Inspection and enforcement strategy implemented by April 2008.

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Labour Market Information and Statistics Labour market information and statistics collected, analysed and disseminated to various stake holders Trends analysis including performance review reports quarterly Job placement verification, including impact assessment study by March 2008

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Occupational Health and Safety Institutional framework for integration of occupational health and safety competencies finalised by March 2008 Legislation promulgated and Act implemented by March 2008

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Employment and Skills Development Services / Human Resources Development NSF Implementation of National Skills Development strategy 2005-2010 year 3 targets aligned with ASGISA with emphasis on artisan development. Achieve first year NSF strategic projects targets in support of provincial growth and development strategies/ASGISA

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) 400 non-levy paying co-ops receive skills development support by March 2008 60 000 ABET unemployed learners trained

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) SETAs At least 600 SMMEs, NGOs; CO-OPs and small BEE enterprises receive skills development support by March 2008 40 000 employed ABET learners trained by March 2008 26 000 workers and 26 000 unemployed people assisted to enter scarce and critical programmes in learnerships, apprenticeships, internships, bursaries and skills programmes

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) 2 000 learners in areas of critical skills placed for experience locally and internationally. 2 000 youth trained in new venture creation Scarce and Critical skills list and database updated by September 2007 Framework for Quality Council for Trades and Occupations developed by March 2008 Strategy approved to refocus Indlela to cater for apprenticeship moderation, learner assessment and specialised training by March 2008

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Labour Policy and Labour Market Programmes Projects targeting vulnerable workers in rural and remote areas supported Collective agreements extended to non-parties and labour organisations registered

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Employment Equity and Standards 7th and 8th Commission for Employment Equity reports published Employment equity analysis report on website 2007 employment equity public register published Finalise investigations into hospitality and welfare sectors by September 2007 Review wage differentials, earnings threshold and taxi sectors by March 2008

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Start investigation into low skilled labour and review farm workers by March 2008 Child labour programme of action submitted to Cabinet for endorsement

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Research, monitoring and evaluation agenda implemented by March 2008 Commissioned research reports completed by March 2008 Frequency of reports on the implementation of the Growth and Development Summit agreement by June, September, December 2007 and March 2008 In collaboration with the International Labour Organization (ILO) the Decent Work Country Programme developed

MEDIUM-TERM STRATEGIC OBJECTIVES 2007-2010 (continued) Sheltered Employment Factories legal form determined by March 2008

7. SERVICE DELIVERY IMPROVEMENT PROGRAMME Establishment of an effective Employment Services System Establishment of an effective Inspection and Enforcement System Development and implementation of Service Delivery Standards Innovations including use of ICT and provision of tools of trade to staff for effective service rendering

STRATEGY FOR BETTER SERVICE DELIVERY (Continued) Access Strategy Multimedia Call centre with CRM capabilities MPCC further roll out Mobile Labour Centres ICT enabled and fully resourced Further roll-out of the Shared Service concept Partnerships with Private sector and public sector entities expanded and strengthened Cellular telephony used for transaction based services and information dissemination

SERVICE DELIVERY IMPROVEMENT PROGRAMME(Continued) A unit dedicated to audit queries and public enquiries established Telephone line and interactive questionaire on the Web site for clients

8. INFORMATION TECHNOLOGY PLAN THROUGH A PUBLIC PRIVATE PARTNERSHIP (PPP) Employment Services System( Phase 2 & 3) ( SETA Performance Management System , Grant Disbursement system, National Skills Fund Disbursement Information System (NSFDIS) and Career Information system) Inspection and Enforcement System Claims and Fund Disbursement Systems in terms of the Compensation Fund and the Unemployment Insurance Fund Human Resource Management System Financial Management System Management Information System

INFORMATION TECHNOLOGY PLAN THROUGH A PUBLIC PRIVATE PARTNERSHIP (PPP) (Continued) On-going Refresh of the IT infrastructure Improvement of the efficiency of the Department’s Virtual Private Network which is provided by SITA Use of mobile and wireless technologies to facilitate service delivery in remote areas. Call centre technologies to facilitate Customer Relationship Management (CRM) Cellular telephony for transaction based services and for information dissemination

9. HUMAN RESOURCE PLAN The Human Resource plan that supports the strategic plan through an appropriate organizational structure and implementation of HR policies Competencies ensured through a Skills Audit and the gaps addressed through Training and development Vacancy rate be maintained at <10% Staff Attrition to be addressed through the career management and retention strategy and succession planning.

HUMAN RESOURCE PLAN (Continued) Uniform remuneration and grading across similar jobs ensured through job evaluation Employment Equity addressed as per the EE plan Workplace well being addressed through the establishment of on-site wellness centres, counselling and life skills programmes Management of performance monitored and done promptly

10. PUBLIC ENTITIES AND OTHER AGENCIES The National Skills Authority (NSA) Unemployment Insurance Fund (UIF) Compensation Fund (CF) National Productivity Institute (NPI) Twenty-three Sector Education and Training Authorities (SETAs) National Economic Development and Labour Council (NEDLAC) Commission for Conciliation, Mediation and Arbitration (CCMA) Umsobomvu Youth Fund (UYF).

11. MTEF ALLOCATIONS

2007/2008 Final Vote

2007/2008 Final Vote In terms of the 2007 ENE, the Department of Labour’s Vote number has been adjusted to Vote 16. Major increases to the Vote in respect of the 2007/2008 financial year are attributable to an allocation of R400 million in respect of the recapitalization of the Umsobomvu Youth Fund (UYF), a R 27 million increase to the funding of the Commission for Conciliation, Mediation and Arbitration (CCMA), an additional allocation of R8 million in order to address aspects of the Department’s Integrated Business Strategy (IBS) within Programme 2: Service Delivery and an increased allocation of R1 million to address the carry-through effect of the higher than anticipated salary adjustments in July 2006.

12. CONCLUSION Strategic Plan 2007-2010 to be seen within context of the five year Ministerial Programme and ASGI-SA Strategic Plan to be used as a basis for measuring the Department’s performance in the next three years

THANK YOU