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: LP&LMP DDG: E&SDS/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. 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 country’s 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 1.1Actively striving to ensure that its labour policies and strategies compliment national growth and development objectives. 1.2New labour market regulations in relation to new job creation strategies, such as cooperatives, will be developed, implemented, monitored and evaluated. 1.3Social dialogue will be strengthened to support growth and development.

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

20. 1. Ministerial Programme of Action 1.7Provincial skills plans will be aligned to provincial economic growth and development strategies. 1.8Expanded Public Works Programmes (EPWP) participants will be trained. 1.9Learnership targets will be achieved as per the GDS targets. 1.10Exit 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 2.1NSDS 2001-2005: Targets achieved, reported and evaluated. 2.2NSA to provide advice to the Minister of Labour on the implementation of the NSDS and related matters. 2.3Critical Skills list prioritised and communicated 2.4Quality training in all workplaces promoted and accelerated

23. 1. Ministerial Programme of Action 2.5Employability and sustainable livelihoods promoted through skills development. 2.6Designated 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. 2.7Quality 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 3.1The Department will conduct a study on the impact of the Employment Equity Act since its inception and its policy implications. 3.2The 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 3.3The employment Equity Strategy and NSDS 2005-2009 will be aligned. 3.4Technical Assistance Guidelines (TAGs) and codes of good practice will be implemented.

27. 1. Ministerial Programme of Action 3.5incremental Black Economic Empowerment (BEE) targets – for procurement of goods and services will be incorporated into public entities associated with the Department. 3.6Employment 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 4.1Workers 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). 4.2Current sectoral determinations will be evaluated.

30. 1. Ministerial Programme of Action 4.3Compliance with legislation will be increased. 4.4Bargaining councils will be established in vulnerable sectors (security, Civil Engineering, Contract Cleaning and the Building Industry)

31. 1. Ministerial Programme of Action 4.5The Child labour Action Programme will be finalised and implemented. 4.6Sheltered 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 Department’s interventions will include:

33. 1. Ministerial Programme of Action 5.1Ensuring effective participation in the ILO, SADC and the AU Labour and Social Affairs Commission. 5.2Effectively discharging South Africa’s obligations to the ILO.

34. 1. Ministerial Programme of Action 5.3Ensuring that the objectives of signed bilateral agreements are implemented and monitored and achieved. 5.4Mobilising, 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 6.1Ensuring an improved client satisfaction on Unemployment Insurance Fund and Compensation Fund services. 6.2Achieving financial viability and sustainability of the Unemployment Insurance Fund and Compensation Fund.

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

38. 1. Ministerial Programme of Action 6.6The reduction of occupational health and safety incidents in targeted industries. 6.7The 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 7.1Ensuring a continuing decline of workdays lost due to industrial action. 7.2Ensuring an effective and efficient dispute resolution system. 7.3ensuring that the proportion of workers covered by collective agreements is increased.

41. 1. Ministerial Programme of Action 7.4Ensuring improved representation of small business interests in collective agreements. 7.5Inclusion of broader economic and employment growth issues into collective bargaining agreements.

42. 1. Ministerial Programme of Action 7.6Active engagement and participation by the Department in tripartite statutory bodies. 7.7Enhancing 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 8.1Improve service delivery provided by statutory bodies and public entities associated with the Department, through clear performance standards for relevant agencies. 8.2the views of the public will be sought to assess the services received from statutory bodies and public entities.

45. 1. Ministerial Programme of Action 8.3The capacity of social partners to deliver on GDS commitments and other areas of cooperation will also be enhanced by the Department’s 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 9.1Publish bi-annual labour market reviews and labour statistics reports. 9.2The 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 9.3Annual client satisfaction surveys will be conducted on levels of service delivery and made public. 9.4the harmonisation of labour market policies and other government policies will be promoted. 9.5Strategic 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 10.1Improve service delivery to the external clients of the Department by enhancing decentralisation of services. 10.2Improved service delivery provided by agencies associated with the Minister of Labour 10.3Improved service delivery to the internal clients of the Department.

51. 1. Ministerial Programme of Action 10.4Improved management practices within the Department. 10.5Full PFMA compliance achieved by the Department and public entities. 10.6Internal compliance with labour laws. 10.7internal 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.Administration Purpose: Conduct the overall management of the Department and provide support and advisory services.

56. 2. Main Divisions of the Vote 2.Service Delivery Acting DDG: Service Delivery: Mr. Phineas Mothiba

57. 2. Main Divisions of the Vote 2.Service Delivery Purpose: Protect the health and safety of workers, and implement and enforce Department of Labour policies.

58. 2. Main Divisions of the Vote 3.Employment and Skills Development Services / Human Resources Development DDG: E&SDS/HRD: Ms. Adrienne Bird

59. 2. Main Divisions of the Vote 3.E&SDS/HRD Purpose: Achieve 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 4.Labour Policy and Labour Market Programmes DDG: LP&LMP: Mr. Les Kettledas

61. 2. Main Divisions of the Vote 4.LP&LMP 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 data and statistics on the labour market, including providing support to the institutions that promote social dialogue.

62. 2. Main Divisions of the Vote 5.Social Insurance DDG: LP&LMP: Mr. Les Kettledas Unemployment Insurance Fund DDG: Service Delivery: Mr. Phineas Mothiba Compensation Fund

63. 3. 2004/2005 EXPENDITURE INFORMATION

64. 3. 2004/2005 Expenditure Information

69. 4. 2005/2006 MTEF ALLOCATIONS

70. 4. 2005/2006 MTEF Allocations

75. 5. PROJECTS PER MAIN DIVISION

76. 5. Projects per Main Division 1.Administration Mobile Office Units: An 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 HRM: Implementation 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 PPP: A 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 PC’s in the DoL. –Joint risk sharing with penalties for late delivery.

79. 3.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 5. Projects per Main Division

80. 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. 5. Projects per Main Division

81. 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 5. Projects per Main Division

82. 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 5. Projects per Main Division

83. 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 5. Projects per Main Division

84. 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. Project 6 – INDLELA 5. Projects per Main Division

85. Social Development Funding Window Strategic Projects Funding Window Skills support programme Learnership funding window Bursaries Innovation and research Capacity building of stakeholders NSDS promotion Project 7 – National Skills Fund 5. Projects per Main Division

86. 4.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: China: The 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: Cuba: The 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