1. 1 Overall Responsibility Director General: NPT Nhleko Annual Report Presentation to the Select Committee: 26 October 2011 Annual Report Presentation to the Select Committee: 26 October 2011

2. 2 Table of Contents 1.Mandate 2.Medium Term Strategic Framework (MTSF) and Service Delivery Outcomes specific to the DoL 3.Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance 4.Budget Allocations and Utilisation 5.Key Aspects of Strategic Plan 2011/12 and Midterm 6.Expectations from the Select Committee

3. 3 1. Mandate Vision The Department of Labour will strive for a labour market which is conducive to investment, economic growth, employment creation and Decent Work. Mission Regulate the South African labour market for a sustainable economy through: Appropriate legislation and regulations Inspection, compliance monitoring and enforcement Protection of human rights Provision of Employment Services Promoting equity Social and income protection Social dialogue.

4. 4 2. MTSF AND SERVICE DELIVERY OUTCOMES SPECIFIC TO THE DOL. In this report, the Department reflects on its contribution to year two of the Medium Term Strategic Framework (MTSF) 2009-2014 with a focus on the following Government service delivery outcomes: Outcome 4: Decent employment through inclusive economic growth, and two other outcomes; Outcome 11. Create a better South Africa and contribute to a better and safer Africa and World; and Outcome 12: An efficient, effective and development orientated public service and an empowered and inclusive citizenship.

5. 5 2. MTSF and Service Delivery Outcome aligned to the DoL strategic objectives SERVICE DELIVERY OUTCOMES AND OUTPUTS DoL STRATEGIC OBJECTIVES 4: Decent employment through inclusive economic growth Outputs: 4.1 Making our growth more labour absorbing 4.2. Reducing youth unemployment 4.3. Raising our international competitiveness 4.4. Analysing the cost structure of the South African economy 4.5. Reviewing support for small business 4.6. Expanding our Public Works Programme 1: Contribution to employment creation 2: Promote equity in the labour market 3: Protecting vulnerable workers 5: Strengthening social protection 6: Promoting sound labour relations 8: Monitoring the impact of legislation 11: Creating a better South Africa and contributing to a better and safer Africa in a better world. 4: Strengthening multilateral and bilateral relations 12: An efficient, effective and development orientated public service and an empowered and inclusive citizenship Output: 12.1 Service delivery quality and access 7: Strengthening the capacity of labour market institutions 9: Strengthening the institutional capacity of the Department

6. 6 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 1. Approved Public Employment Services Policy, Employment Services Act and related regulations and guidelines Draft Public Employment Services Policy and Bill finalised for submission to Cabinet by September 2010. The LRA, BCEA, EE Act amendment Bills and the new ES Bill were approved by Cabinet and are under consideration in NEDLAC. 2. Number of jobseekers registered in different categories 100% of reporting job- seekers registered on the system. 652 611 jobseekers reported for registration in different categories 483 038 (74%) were captured and registered on ESSA system

7. 7 Job seekers, opportunities registered and placement Province Job Seekers Reported Job seekers Registered % Register ed Opportunities Registered Placeme nt EC55 66340 796732 3021 073 FS47 940 1003 2251 850 GP202 388121 556604 7672 528 KZN134 88089 335668 8142 993 LIMP46 705 10011 626141 MP57 20545 629802 1661 759 NC2 8022 05773900216 NW19 34219 052991 6961 469 WC85 68669 968824 325772 Total652 611483 03874%39 88712 801

8. 8 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 3. Percentage of registered job seekers referred to counselling/guidance, skills development, registered vacancies, workplace opportunities, UIF and Compensation Fund benefits. 70% referred within 30 days.  65 347 job seekers were provided with career counseling/guidance  25 814 job seekers were referred for work placement opportunities and 12 801 were successfully placed  451 950 job seekers were referred to UIF for benefits payment  8 732 workers injured in the course of employment were referred to the Compensation Fund for benefits  7 217 job seekers were referred for skills development opportunities

9. 9 Clients referred to job opportunities and services Clients referred to job opportunities and services PROVINCE Career counselling Work Placement UIFCompens ation Fund Skills Dev. EC6 8535 36144 296138261 FS8 8131 62832 932911222 GP8 6026 091113 25803430 KZN10 5833 82392 813355715 LIMP5 23914132 50700 MP7 6601 75933 9361 707819 NC2 8022 0578 039107375 NW8 0641 46929 9835 508594 WC6 7313 48564 1866801 Total 65 34725 814451 9508 7327 217

10. 10 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 4. Number of companies and workers in distress sectors provided with assistance Application processes within 5 working days from application 19 companies and 6 183 workers were assisted to the value of R40.2m through the training lay-off scheme. UIF allocated R48, 5 million to Productivity SA to save 15 000 jobs through turn around strategies in 130 companies in Agriculture, Steel and Manufacturing sectors, Construction and Printing The CCMA saved a total of 9 207 jobs from possible large scale retrenchments. The UIF invested R35 billion out of its R52 billion and the CF R27 billion in commercial and social responsible investment portfolio.

11. 11 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 4. Number of companies in distress sectors provided with assistance (CONT.) Application processes within 5 working days from application The UIF invested R2 billion in private placement bond through the Industrial Development Corporation (IDC). 76 transactions (net of cancellations) with a value of R1 546 145 935 were approved and are expected to create, 10 047 new permanent UIF paying jobs and saved 7 186 existing permanent UIF paying jobs

12. 12 Training Layoff Scheme Applications per Province Prov.Applicant companiesWorkersAmount EC64593,001,041.78 FS000 GP5266122,202,784.69 KZN211332,989,392.21 LIMP000 MP165104,010.05 NC000 NW27676,066,068.81 WC310985,858,850.82 Total196183R40, 222, 148 FOOTNOTE: The allocation of funding for Layoff scheme is based on retrenchment and application by parties

13. 13 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 5. Number of companies assisted through workplace challenge programme to become world class competitive 120 companies230 companies were involved in Workplace Challenge to promote productivity 105 future forums were established to facilitate implementation of turnaround strategies 6. Number of SMME managers assisted to manage matters related to intellectual property 3 0002 707 SMME managers were trained to sustain and grow their enterprises

14. 14 3. Key Challenges and Remedial Actions PERFORMANCE INDICATORMAJOR VARIANCE AND REASONS THEREOFACTION TAKEN TO RESOLVE THE PROBLEM 1. Approved Public Employment Services Policy, Employment Services Act and related regulations and guidelines Employment Services Bill was approved by Cabinet and published for public comment Reasons: Sufficient policy already exist on employment Public consultations on Bill conducted January to March 2011 Bill is currently before NEDLAC Regulations will follow gazetting of the Employment Services Act Ministerial intervention to nudge NEDLAC to speed up and conclude negotiations on the Bill 2. % of registered job seekers referred to counselling/guidance, skills development, registered vacancies, workplace opportunities, UIF and Compensation Fund benefits. Small percentage of registered work seekers placed in vacancies and work placement opportunities. Reasons: Lack of legislation to compel employers to register opportunities and report on filled vacancies. Inadequate human and IT resources. 2.1 Conclusion of Employment Services Bill negotiations at NEDLAC 2.2 Tabling of bill in Parliament for debate and finalization 2.3 Integration of SIYAYA and Employment Services Systems to register jobseekers and placement.

15. 15 3. Key Challenges and Remedial Actions PERFORMANCE INDICATOR MAJOR VARIANCE AND REASONS THEREOF ACTION TAKEN TO RESOLVE THE PROBLEM 3. Number of jobs saved through social plan interventions. 13 000 jobs were saved from a target of 15 000 as a result of funds received during the 2 nd quarter. Reasons: The NSF transferred to DHET turned down application for funding. UIF Board was approached to allocate funding during Q1 to Productivity SA. Productivity SA Board resolved to apply for future Social Plan funding in time 4. Special employment opportunities provided to eligible people with disabilities from all racial groups. No new employment opportunities provided Reasons: Insufficient income generated No approved policy and legal framework for Sheltered Employment Factories. Insufficient collaboration with placement agencies to place disable people in the open labour market.  Business case is being developed  Proposed legal framework is included in the Employment Services Bill being discussed at NEDLAC.  Review and improvement effected on the current Sheltered Employment Factories marketing strategy

16. 16 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 2: Promote Equity in the Labour Market KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 1. Employment Equity Act and its Regulations Amended. Employment Equity Act Amendment Bill published for public comment Bill was approved by cabinet in December 2010, published for public comments and currently discussed at NEDLAC. 2. Employment Equity implementation and enforcement mechanisms strengthened Follow-ups conducted on 60 Johannesburg Stock Exchange (JSE) listed companies DG Reviewed by 31 March 2011 Review and amend the Code of Good Practice on Key Aspects of HIV and AIDS and Employment (HIV and AIDS Code) by 31 March 2011 61 copies of DG’s final approval letters of Affirmative Action measures to address Income Differentials A gap analysis was conducted Terms of reference and project plan has been developed for technical assistance by the International Labour Organisation (ILO) on implementing recommendation 200 on HIV/AIDS

17. 17 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 2: Promote Equity in the Labour Market KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 2. Employment Equity implementation and enforcement mechanisms strengthened Subject 200 companies to DG review by March 2011: 60 Johannesburg Stock Exchange (JSE) listed 140 designated employers. 266 companies were reviewed as follows: 96 JSE listed companies reviewed, 87 recommendations were served 170 designated companies were reviewed and 156 recommendations were served A total of 9 468 Employment Equity Act procedural inspections were conducted and 7449 (79%) compliance rate was achieved

18. 18 DG Review PROV.TARGET # COMPANIES REVIEWED # RECOMMENDATIONS MADE JSE DESIGNATED EMPLOYERS JSE DESIGNATED EMPLOYERS JSE DESIGNATED EMPLOYERS GP0440410 KZN636439033 EC131613160 WC1286868 FS150707 LP6712101210 NW090908 NC6164700 MP15223191519 TOTAL601769617087156

19. 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable Workers KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 1. Basic Conditions of Employment Act (BCEA) amended BCEA Amendment Bill published for public comment Bill approved by Cabinet, published for public comments and is currently discussed at NEDLAC. 2. Wage differentials investigated Amend norms and benchmarks for proportionate income differentials Report interrogated and signed off by the Employment Conditions Commission (ECC). 3. Review existing sectoral determination Farm worker, domestic worker, wholesale and retail, Hospitality, Civil Eng., Learnership, Private Security, and Forestry All investigations envisaged for review, amendment or establishing sectoral determinations were completed. Expanded Public Works Programme (EPWP) determination and code of good practice was published The Small Business determination has been referred to NEDLAC for consideration by the social Partners

20. 20 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable Workers KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 4. Civil society strengthened 8 Civil society organisations involved in the world of work funded Seven civil society organisations were funded (DITSELA, COSATU, SACOTU, SA Labour Bulletin, Cradock Advise Office, Qolaqhwe Advise Office and Workers College Natal) 5. 200 000 workplaces inspected for compliance to ensure 80% compliance to labour legislation. Conduct 200 000 inspections as per the breakdown. 192 129 workplaces were inspected and audited 378 of these were conducted in high risk sectors to enforce compliance with the OHSA. 147 626 (77%) compliance rate achieved.

21. 21 Total inspection of workplaces Prov# insp# complyi ng % comp liance # Notice s issued Type of notices issuedProsecutions (cases to Court) Awards by court - successful Underta king Compl iance Order Contr aventi on Impro veme nt Prohib it Labou r Court Magi strat es Cour t YesNo GP5338845306854998220728017231821366528000 KZN2087813688667056380714826246913892113490 EC1494711628693006169925793631188851600 WC127978191643446189624794318217832100 FS1686415725932566160676671140738100 LP1134480147142702840159858377111150 NW1150999638736832333153702402931100 NC6465513079179064935102345371220 MP8940733582231415142563158860000 Total192 12914762677331291855113801011111461000295415560

22. 22 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable Workers KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 6. Target SMMEs to ensure 80% compliance through advocacy campaigns. Hold seminars in the following sectors: Iron and Steel; Hospitality, Forestry and Construction. Train shop stewards in the targeted sectors Iron and Steel Seminar was held in Port Elizabeth and 176 attendees participated Forestry Sector Seminar held in Pietermaritzburg and 96 attendees participated. Construction Seminar was held in in Gauteng and 365 attendees participated A total of 1021 shop stewards were trained on EEA,OHSA and BCEA 7. 80% of the investigated complaints are settled. Investigate complaints and settle within 90 days of receipt. 120 566 from a total of 154 441 complaints received were investigated and 116 131 (75%) were settled within 90 days.

23. 23 Complaints/Investigations ProvincesTotal # Complaints received by CSOs and Inspectors Total # of Complaints investigated Total # of Complaints settled within 90 days % settleme nt Money recovered (R ) GP757015620450735673 214 656.11 KZN233661556219603843 515 747.00 EC69247036546269412 385.80 WC5763 436476291 931.00 FS98236556820283855 304.41 LP1115698479072816 683 045.82 NW40393793330182590 259.61 NC3828 341589400 600.00 MP1384111977 86508 448.29 Total1544411205661161317515 882 118.43

24. 24 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable Workers KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 8. Promote the level of knowledge of OHS to employers and workers in the Agriculture Sector. Implement the pilot project in Limpopo and Mpumalanga The concept of Roving Safety Representative inspectors was launched in Limpopo and Mpumalanga and is now ready to be rolled out to other Provinces 9. Reduce the prevalence of silicosis in the non- mining industry. Conduct the baseline to determine the prevalence of silica exposure in non- mining industry. A Baseline study on silicosis was conducted and report is available. The extent of exposure to silica dust for 200 companies operating in Gauteng as per our sample, has been established 49 companies were assisted during inspections in developing a program for the control of exposure to silica dust. 208 companies were inspected with regard to silica exposure and 54 complied which resulted in 26% compliance level

25. 25 3. Key Challenges and Remedial Actions PERFORMANCE INDICATOR MAJOR VARIANCE AND REASONS THEREOF ACTION TAKEN TO RESOLVE THE PROBLEM 1. 200 000 workplaces inspected for compliance to ensure 80% compliance to labour legislation. Target partially achieved Reasons Participation of inspectors in the public service strike Inadequate number of human resources Targets reviewed in accordance with resources available To conduct an organisation development study to determine appropriate numbers and competences 2. Implementation of the IES strategy with its pillars. Target partially achieved Reason Professionalisation of the inspectorate not finalised. Job profiles have been reviewed to implement the first phase of professionalisation 3. Reduce noise induced hearing loss by 5%. Target not achieved Reason Research not conducted due to delays in the procurement process. The Bid Adjudication Committee has approved the request for competitive bids

26. 26 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 8: Monitoring the impact of legislation KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS The impact of the Department’s Strategic Plan on stated goals and objectives researched and reported on Implementation of Research, Monitoring and Evaluation agenda The following reports were developed: The Industrial Action and Annual Labour Market reports were produced UIF client satisfaction survey and non- compliance studies (taxi, domestic sector and catering industries) Bulletin and Job Opportunity and Unemployment in the South African labour market. The Client Satisfaction survey for medical doctors was also conducted and reported.

27. 27 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 4: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIP Strategic Objective 9: Strengthening the institutional capacity of the Department KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 1. 90% compliance with the AG recommendations 100% compliance with Auditor-General. The Department achieved an unqualified audit opinion in the past year 2. 90% of all funded post filled within 6 months. Percentage of all funded posts filled within a specified period of time. As at the end of March 2011, 91.40% of posts were filled against a target of 90%, and therefore the vacancy rate is 8.59%. 3. 40% of women and 50% of youth employed at most levels; 5% of PwD employed. Percentage of women, youth and People with Disability employed in line with Employment Equity Plan Women at Senior Management is 34.6% against a target of 40% Youth stands at 42.84% against a target of 50% The national target for People with Disabilities (PwD) in the public service is 2%. Currently 2.7% PwD are employed against a Departmental goal of 5%.

28. 28 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues 3. Key Aspects of the DoL Strategic Plan 2010/11, Targets and Performance - continues OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIP Strategic Objective 9: Strengthening the institutional capacity of the Department KEY PERFORMANCE INDICATORS TARGETSACHIEVEMENTS 4. Percentage of customer complaints attended to within 14 days of receipts. 90% within 14 days The Department is rated third best among Departments in resolving calls logged through the Presidential Hotline. As at March 2011 over 4742 calls were received through the Presidential Hotline and 4 677 (98%) resolved. 5. Number of service delivery points accessible in line with geographic norms and standards. Develop geographic norms and standards as well as an implementation plan. The spatial mapping of labour centres to ensure accessibility to clients in line with outcome 12 (Service quality and access) is in progress.

29. 29 4. Budget Allocations and Utilisation

30. 30 4. Budget Allocations and Utilisation

31. 31 5. Key Aspects of Strategic Plan 2011/12 SERVICE DELIVERY OUTCOMES AND OUTPUTS THE DEPT STRATEGIC OBJECTIVES (KRAs) KEY PERFORMANCE INDICATORS Outcome 4: Decent employment through inclusive economic growth Outputs: 4.1 Making our growth more labour absorbing 4.2. Reducing youth unemployment 4.3. Raising our international Competitiveness 4.4. Analysing the cost structure of the SA economy 4.5. Reviewing support for small business 4.6. Expanding our Public Works Programme KRA 1: Contribution to employment creation Number of registered job-seekers and job opportunities on the Employment Services System for South Africa (ESSA) per year Percentage of Job seekers placed in reported job opportunities KRA 2: Promote equity in the labour market Employment Equity implementation and enforcement mechanisms strengthened KRA 3: Protecting vulnerable workers Sectoral determinations published for residual and emerging vulnerable workers Number of workplaces inspected and percentage thereof complying with legislation Percentage of labour complaints and disputes resolved as per service delivery standard KRA 5: Strengthening social protection Number of UI and COID claims finalized as per service delivery standard Decrease in occupational injuries and diseases KRA 6: Promoting sound labour relations Manage the implementation of the Labour Relations Act, 1995 Reduction in productivity time lost due to labour disputes/strikes

32. 32 5. Key Aspects of Strategic Plan 2011/12 and Midterm - continue SERVICE DELIVERY OUTCOMES AND OUTPUTS THE DEPT STRATEGIC OBJECTIVES (KRAs) KEY PERFORMANCE INDICATORS Outcome 11. Create a better South Africa and contribute to a better and safer Africa and World KRA 4: Strengthening multilateral and bilateral relations Participation in the International Labour Organisation Governing Body and the International Labour Council ensured Multilateral and bilateral commitments and agreements entered into honoured Outcome 12: An efficient, effective and development orientated public service and an empowered and inclusive citizenship. Outputs: 12.1 Service delivery quality and access KRA 7: Strengthening the capacity of labour market institutions KRA 8: Monitoring the impact of legislation KRA 9: Strengthening the institutional capacity of the Department Monitor performance of CCMA and NEDLAC against their strategic objectives The impact of the Department’s strategic plan and programmes on stated goals and objectives researched and reported on. Improve service quality and access:  Reduction on waiting time at service points  Improve turn-around time for services rendered  Reduction in distances travelled to access service points  Percentage of customer complaints successfully resolved within 14 days

33. 33 6. Expected support from the Select Committee To provide support in advocating the programmes and feedback of how they view our service delivery To continue participating and supporting the Department’s international relations work and study visits For the chairperson to continue participating in campaigns like Iimbizo and marketing interventions

34. Thank you 34