1. PORTFOLIO COMMITTEE PRESENTATION 9 MARCH 2006
STRATEGIC PLAN
PORTFOLIO COMMITTEE PRESENTATION
9 MARCH 2006
DIRECTOR-GENERAL: DR. VAN MKOSANA

2. CONTENTS VISION MISSION STATEMENT
MINISTERIAL PROGRAMME OF ACTION
ACHIEVEMENTS
WHAT THE STRATEGIC PLAN SEEKS TO ACHIEVE
STRATEGIC OVERVIEW AND KEY POLICY DEVELOPMENTS
MEDIUM-TERM STRATEGIC OBJECTIVES 2006/2009
STRATEGY FOR BETTER SERVICE DELIVERY
INFORMATION TECHOLOGY PLAN THROUGH A PUBLIC PRIVATE PARTNERSHIP (PPP)
HUMAN RESOURCE PLAN
PUBLIC ENTITIES REPORTING TO THE MINISTER OF LABOUR
CONCLUSION

3. 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.

4. 2. MISSION STATEMENT
The Department of Labour will play a significant role in reducing unemployment, poverty and inequality trough 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

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

6. 3. MINISTERIAL PROGRAMME OF ACTION 2004-2009
Strategic objective 1 : Contribution to employment creation
The Department of Labour will contribute towards employment creation in the following ways :
To ensure that labour market policies and strategies complement national growth and development objectives

7. MINISTERIAL PROGRAMME OF ACTION (continued)
Social dialogue will be strengthened to support growth and development
Sector skills plans aligned to sectoral growth plans
Exit strategies for unemployed people in skills programmes, learnerships, apprenticeships and other scarce skills interventions

8. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 2: Enhancing skills development
The NSDS will contribute to the following:
Skills to assist the country’s competitiveness and growth as part of the broader Human Resource Development Strategy.
Scarce skills to support the implementation of the Accelerated and Shared Growth Initiative for South Africa (ASGI- SA).
Improved participation of Small, Medium and Micro Enterprises (SMMEs) in skills development.
Improved quality of learning through the review and finalisation of the National Qualifications Framework.

9. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 3: Promote equity in the labour market
Strengthen enforcement mechanisms whilst promoting the culture of self-regulation.
Incremental Black Economic Empowerment (BEE) targets – for procurement of goods and services will be incorporated into public entities associated with the Department.

10. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 4: Protecting vulnerable workers
Workers in vulnerable sectors and segments will be identified and protection extended.
Current sectoral determinations will be evaluated.
Bargaining councils will be established in vulnerable sectors (Security, Civil Engineering, Contract Cleaning and the Building Industry).
The Child Labour Action Programme will be finalised and implemented.

11. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 5: Strengthening multilateral and bilateral relations
The Department's interventions in this regard will include:
Ensuring effective participation in the ILO, SADC and the AU Labour and Social Affairs Commission.
Effectively discharging South Africa's obligations to the ILO.
Ensuring that the objectives of signed bilateral agreements are implemented, monitored and achieved.
Mobilising, coordinating and managing technical cooperation.

12. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 6: Strengthening social protection
Achieving financial viability and sustainability of the Unemployment Insurance Fund and Compensation Fund.
Extending the coverage of unemployment insurance to other vulnerable workers.
The national integration of compensation and occupational health and safety competencies across government departments.
The reduction of occupational health and safety incidents in targeted industries.

13. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 7: Promoting sound labour relations
Ensuring a continuing decline of workdays lost due to industrial action.
Ensuring that the proportion of workers covered by collective agreements is increased.
Enhancing and extending social dialogue.

14. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 8: Strengthening the capacity of labour market institutions
Improve service delivery provided by statutory bodies and public entities associated with the Department, through clear performance standards for relevant agencies.
The views of the public will be sought to assess the services received from the statutory bodies and public entities.
The capacity of social partners to deliver on GDS commitments and other areas of cooperation will also be enhanced by the Department's support.

15. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 9: Monitoring the impact of legislation
Publish bi-annual labour market reviews and labour statistics reports.
Research and report on the impact of aggregate and disaggregate departmental policies and programmes on stated goals and objectives.
Conduct annual client satisfaction surveys on levels of service delivery and make them public.
Establish strategic partnerships and cooperation with established research institutions.
Undertake impact studies in support of NSDS implementation.

16. MINISTERIAL PROGRAMME OF ACTION (continued)
Strategic Objective 10: Strengthening the institutional capacity of the Department
Improved service delivery to the external clients of the Department by enhancing decentralisation of services.
Improved management practices within the Department.
Full Public Finance Management Act (PFMA) compliance achieved by the Department and public entities.
Establishment of fully staffed and capacitated Department of Labour programmes to manage and support SETAs.

17. 4. ACHIEVEMENTS Employment creation By end of March 2004:
were trained through the Social Development Funding Window (SDFW) and 82 % were placed in the formal sector, social development projects, self-employment and further learning. By end of March 2003 a total of unemployed people were trained and 70% were placed.
By end of March 2005:
people were trained through the SDFW and (71%) of these were placed in income generating opportunities, including in EPWP
73 % of learners who graduated from learnerships and apprenticeships were employed by those employers who trained them

18. ACHIEVEMENTS (continued)
Skills development
The first National Skills Development Strategy ( ) has been concluded and reported on
The Sector Education and Training Authorities (SETAs) were reviewed and 23 out of the original 25 were re-established after taking into account emerging trends in the country’s economic sectors
The adjusted National Skills Development Strategy ( ) was developed and launched after an extensive review and consultative process on the first strategy
Annual state of skills and scarce skills were identified and published.

19. ACHIEVEMENTS (continued)
Employment equity
The Department has developed an Employment Equity Awards System in order to recognise the achievements of employers in furthering the purpose of the Employment Equity Act
We have also finalised the Amendments to the Employment Equity Regulations, which will be implemented during 2006/07. These amendments are aimed at improving the quality of data collected on employment equity, especially data on people with disabilities
A DG Review System has been designed to assess the employers’ substantive compliance with the Employment Equity Act and is due for implementation during 2006/07.

20. ACHIEVEMENTS (continued)
4. Protection of vulnerable workers
Several sectoral determinations and amendments to sectoral determinations were passed and implemented
Subsequent to the adoption of the Child Labour Programme of Action, the Department facilitated the formulation in 2004 of the programme Towards the Elimination of the Worst Forms of Child Labour (TECL) to assist in implementation of key action steps of the Child Labour Programme of Action
A number of variations to the Basic Conditions of Employment Act, 1997 were approved
A total of workplaces were inspected, focusing more at enforcing sectoral determinations and (60%) of those inspected complied with various provisions of labour laws. We view this as a confirmation that compliance with laws is improving.

21. ACHIEVEMENTS (continued)
International relations
Bilateral relations were entered into with key countries in which we have interests such as China, Cuba, and key African countries
South Africa’s presence and inputs were ensured in all multilateral fora – ILO, AU, ARLAC, SADC, etc
We successfully hosted and organised the 3rd Ordinary Session of the AU Labour and Social Affairs Commission in South Africa.

22. ACHIEVEMENTS (continued)
Strengthening social protection
The Unemployment Insurance Fund collected R11, 824 billion in contributions and paid R4, 924 billion to beneficiaries
All beneficiaries are being paid their benefits through Electronic Funds Transfer with effect from January 2006
Employers registered with the CF increased from to by March 2005

23. ACHIEVEMENTS (continued)
Promoting sound labour relations
Monitoring of developments in the industrial relations arena has improved with the annual industrial action report published
A quarterly labour market bulletin published, representativity of bargaining councils monitored, small business representation in bargaining councils ensured
Collective agreements were extended to non-parties and CCMA dispute resolution monitored.

24. ACHIEVEMENTS (continued)
Strengthening capacity of labour market institutions
The process for a review of the Efficacy and Efficiency of NEDLAC has been initiated with the assistance of the ILO.
The Commission for Employment Equity and the Unemployment Insurance Board were re-constituted for a new term.

25. ACHIEVEMENTS (continued)
Monitor the impact of legislation
Research projects were undertaken to evaluate the impact of labour legislation and to maintain a balance between flexibility and security.
Critical projects have included studies on casualisation, impact of HIV and AIDS in the workplace, worker cooperatives and employment creation, and women and work.

26. ACHIEVEMENTS (continued)
Strengthening the Department’s institutional capacity
A total of 20 mobile units have been deployed in provinces to improve access to our services

27. 5. WHAT THE STRATEGIC PLAN SEEKS TO ACHIEVE
Delivery of services in pursuance of our stated vision of a labour market that is conducive to economic growth, investment and employment creation
Effective and efficient implementation of government policies in the labour market. This will be accompanied by ongoing institutional transformation to enhance service delivery
Assessment of progress and challenges against a set of key targets
Implementation of a comprehensive performance management system through workplans and performance agreements
Accountable and efficient utilisation of public resources to achieve clearly defined labour market objectives and the alignment of the Department’s programmes and planning cycle with government’s Medium Term Expenditure Framework and the Public Finance Management Act

28. 6. STRATEGIC OVERVIEW AND KEY POLICY DEVELOPMENTS
Improving employment creation
Alleviating poverty by addressing the needs of vulnerable people
Promoting employment equity

29. 7. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009
Service Delivery
Management Support Services
95 % staff capacity maintained
All client service officers trained in customer relations management
Service delivery mobile units reach outlying and rural communities at least once per week

30. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Beneficiary services
90 % of UIF claims processed and paid within 6 weeks of receiving complete documentation
60 % of Compensation Fund claims processed and paid within 90 days of receiving complete documentation

31. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Employment services
At least 70% of identified skills development initiatives (including nodal and expanded public works programme interventions) supported
Career information and guidance system developed and implemented
70% placement rate, within 2 months of completion of training, with employment for at least 3 months

32. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Inspection and Enforcement Services
At least 70% inspected employers are procedurally compliant within 90 days of inspection
100% settlement rate of labour related complaints within 90 days

33. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Labour Market Information and Statistics
Quarterly trend analysis reports that include performance reviews

34. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Occupational Health and Safety
5% increase in OHS incidents investigated and finalised
2% reduction in number of accidents, injuries and fatalities in targeted high risk sectors
At least 500 workplaces in high risk industries inspected and audited per year
At least 10 inspectors and 100 shop stewards trained
National occupational health and safety authority in place

35. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Employment and Skills Development Services / Human Resources Development
(Skills Development Funding) National Skills Fund
At least 80% of available funds spent or committed by March 2006
R121 million spent on unemployed learners
R270 million to train 500 counsellors and enrol unemployed learners

36. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
SETAs
All 23 SETAs conclude Service Level agreement with DoL and at least 15 SETAs achieve satisfactory assessments against indicators annually
learners enter and learners complete training programmes linked to scarce skills by March 2008
2 000 learners trained per annum and mentored to form sustainable new ventures

37. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Labour Policy and Labour Market Programmes
Labour Relations
Publish sectoral determinations for Welfare, Hospitality, Private Security, Contract Cleaning and Civil Engineering within set time frames
Review the existing sectoral determinations.
Implement communication campaign on Child Labour Action Programme reaching internal stakeholders / government departments
Develop performance indicators to monitor the implementation of the Child Labour Action Programme

38. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Labour Policy
Up-to-date and accessible labour market information statistics captured timeously
Five(5) reports published
Research Monitoring and Evaluation Agenda implemented

39. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
International Labour Matters
Effective participation as a titular member of the ILO Governing Body in all meetings and conferences

40. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
National Economic Development and Labour Council
80% of agreements concluded
Monitor, evaluate and report on the progress of the agreements signed by stakeholders at the Growth and Development Summit
( Note that there will be a separate, detailed briefing on Nedlac to the Committee)

41. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Sheltered Employment Factories
Turnaround strategy agreed and implemented

42. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Social Insurance
Unemployment Insurance Fund
80% of claims finalised within 4 weeks
All benefit claims processed within 6 weeks

43. MEDIUM-TERM STRATEGIC OBJECTIVES 2006-2009 (continued)
Compensation Fund
Compensation turnaround strategy finalised and implemented
60% of claims finalised within 90 days of receipt
100% of backlog cases up to 2004 finalised by March 2007
Streamlined, reliable and business driven automated processes to improve our service delivery;
Establish appropriate capacity of skills of our staff for maximise service delivery
Provincial COIDA competencies fully operational by end March 2007
Employer database linked to the UIF and other sources to increase the database by end March 2007 (Integration of databases of UIF & CF by March 2007)
5% increase in employers assessed than in the previous year

44. 8. STRATEGY FOR BETTER SERVICE DELIVERY
Establishment of an effective Employment Services System
This will include :
The development of a Career Information and Guidance System
Linkages between the Private and Public Employment Services Agencies where job matching to vacancies will be done
Partnerships with media houses to access their databases for vacancies
Linkages with other relevant databases like the one developed by Umsobomvu Youth Fund (UYF) and all government databases to identify employment and skills development opportunities for the unemployed
A shared service model to benefit the Department and public entities under the Ministry of Labour.

45. STRATEGY FOR BETTER SERVICE DELIVERY (continued)
Establishment of an effective and efficient Inspection and Enforcement System.
Consolidating a culture of prevention and self- regulation through education and enforcement
Improve the enforcement processes by establishing strategic relationships with law enforcement agencies
To improve the quality of our inspectorate services to interpret and enforce the law, strategic partnerships will be established with institutions of learning and professional bodies
Enhance relations with social partners to collaborate in the implementation and enforcement of labour legislation
Develop an effective and efficient system for certification of professionals as Accredited Inspection Authorities, and certification of complying employers
Develop a shared effective and efficient case management system. This will assist us in tracking employer records and history of compliance with or violations of labour legislation and feedback to our clients

46. CLIENT SEGMENTATION AND SERVICES FLOW CHART

47. 9. INFORMATION TECHNOLOGY PLAN THROUGH A PUBLIC PRIVATE PARTNERSHIP (PPP)
Employment Services System
Inspection and Enforcement System
Employment and Skills Development Service System
Claims and Fund Disbursement Systems in terms of the Compensation Fund and the Unemployment Insurance Fund
Human Resource Management System
Financial Management System
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.

48. 10. HUMAN RESOURCE PLAN
The Human Resource Plan supports the Strategic Plan of the Department through the organisational structure and the implementation of a range of HR policies such as Recruitment and Selection, Training and Development, Career Management and Retention, Employee Wellness, etc.
Targeted training and development of staff shall be provided in line with the Department’s Workplace Skills Plan that is submitted annually to the Public Service SETA. Adequate induction and orientation of staff shall be conducted on a monthly basis.
The Department will produce and submit an Employment Equity (EE) Plan for the period 2006 – This plan will build on the successful implementation of the current EE plan.

49. 11. STATUTORY BODIES & PUBLIC ENTITIES REPORTING TO THE MINISTER OF LABOUR
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).

50. MTEF ALLOCATIONS

52. MTEF ALLOCATIONS
Total budget allocated to the Department over the MTEF period is as follows:
2006/07 R1,512,749,000
2007/08 R1,596,865,000
2008/09 R1,677,385,000
Total allocated to Transfers in respect of the budget allocated over the MTEF period is as follows:
2006/07 R371,402,000
2007/08 R392,015,000
2008/09 R429,157,000
STATUTORY ALLOCATIONS
Total statutory allocation over the MTEF period is as follows:
2006/07 R5,500,000,000
2007/08 R6,000,000,000
2008/09 R6,500,000,000

53. CONCLUSION
Strategic Plan to be seen within context of ASGI-SA
Strategic Plan to be used as a basis for measuring the Department’s performance in the next three years

54. THANK YOU