department of labour

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DEPARTMENT OF LABOUR

Presentation to the Portfolio Committee on 2013/14 Annual Report Achievements and

Challenges

OCTOBER 2014

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Table of contentsTable of contents

1. Overview of DOL Programmes

2. DOL Programmes 2013 / 2014 Annual Performance

achievements, challenges and proposed interventions

2.1 Programme 2: Inspection and Enforcement

2.2 Programme 3: Public Employment Services

2.3 Programme 4: Labour Policy and Industrial Relations

NB: Programme 1: Administration is excluded as it is operational

3. DOL Finances

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Programme 2 :Inspections and Enforcement (IES)

• The purpose of IES is to examine how national labour standards are applied in the workplace through inspection and enforcement of labour legislation and to educate and advise social partners on labour market policies

• To realise decent work by regulating non-employment and employment conditions through inspections and enforcement in order to achieve compliance with all labour legislation

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Programme 3:Public Employment Services (PES)

• Provides assistance to companies and workers to adjust to changing labour market conditions and to regulate private employment private employment agencies.

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Programme 4:Labour Policy and Industrial Relations

• Facilitate the establishment of an equitable Facilitate the establishment of an equitable and sound labour relations environment and and sound labour relations environment and the promotion of South Africa’s interests in the promotion of South Africa’s interests in international labour matters through international labour matters through researching, analysing and evaluating labour researching, analysing and evaluating labour policy and providing statistical data on the policy and providing statistical data on the labour market, including providing support to labour market, including providing support to the institutions that promote social dialogue.the institutions that promote social dialogue.

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Programme 2 Inspection and Enforcement Services

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2013 / 2014 Annual Performance: major achievements, challenges and proposed

interventions.

PROMOTE EQUITYMain Achievements Challenges Proposed Interventions from

the Department/ Deputy Minister and or Minister.

435 (158 public and 277 private) employers were reviewed against the expected 340

Additional Companies were added to the original target necessitated by increased request for DG Review

Shift focus to substantive compliance in order to increase our footprint and also to meet the demands of an amended EEA

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Prov.Target (Public)

Actual (Public)

Var.Target (Private)

Actual (Private)

Var.

EC 9 15 6 26 40 14FS 7 16 9 17 35 18GP 30 41 11 48 53 5KZN 30 27 -3 44 45 8LP 10 18 8 21 23 2MP 7 14 7 17 21 4NC 5 10 5 9 12 3NW 13 9 4 10 14 4WC 9 8 -1 28 34 6TOTAL 120 158 38 220 277 57

PROTECT VULNERABLE WORKERSMain Achievements Challenges Proposed Interventions from


129 259 against a target of 90 000 workplaces were inspected, and 97 526 (75%) complied; and 31 733 (25%) did not comply

High demand and increased request for inspections resulted in the Branch conducting more inspections against the set target

Improve the enforcement in respect of non-compliance

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Prov. Target Actual inspected

Actual complied

% complied No. not complying

EC 11433 14832 10208 69% 4624FS 8460 10010 9203 92% 807GP 17370 32823 28489 87% 4334KZN 16470 23060 16198 70% 6862LP 10890 10842 6404 59% 4438MP 7741 10155 8314 82% 1841NC 3961 5480 4833 88% 647NW 5400 9371 6910 74% 2461WC 8275 12686 6967 55% 5719TOTAL 90000 129259 97526 75% 31733

PROBLEMATIC SECTORSMain Achievements Challenges Proposed Interventions from


A total of 25759 notices against a target of 31733 were issued ( 82%) and 295 cases were referred to court

Delay of serving enforcement notices resulted in achieving 82% instead of 100% (Non availability of employers to accept the notice)

Improve the enforcement in respect of non-compliance

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Compliance

Level

No. not complying

Notices issued No. of cases referred to

courtNo. of written undertakings

No. of Compliance

orders

TOTAL 75% 31733 24854 905 295

Major areas of non compliance %payment of wages 60illegal deductions 10overtime claims 20employees particulars 10

PROTECT VULNERABLE WORKERSMain Achievements Challenges Proposed Interventions from


66% (65 943 of 100 016) against a target of 75% complaints were resolved within 14 days of receipt at Registration Services

Lack of relevant capacity by CSOs on labour legislation.

Training of CSOs conducted.

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Prov. Target No. received No. resolved % resolved

EC 75% 5057 2308 46%

FS 75% 5818 4854 83%

GP 75% 42034 26035 62%

KZN 75% 12878 10002 78%

LP 75% 9326 5789 62%

MP 75% 11808 9104 77%

NC 75% 2707 1040 38%

NW 75% 4882 3547 73%

WC 75% 5506 3264 59%

TOTAL 75% 100016 65943 66%

STRENGTHEN SOCIAL PROTECTIONMain Achievements Challenges Proposed Interventions from


35 174 (59% of the targeted 59 700) workplaces were audited. 26 181 (74%) complied while 8 993 (36%) did not comply

The target set was too high versus the resource capacity available to do OHS inspections and audits

• Additional capacity established in provincial offices

• Targets revised in line with available capacity

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Prov. Target Actual audited

Actual complied

% complied No. not complying

EC 2459 3109 2349 76% 760FS 1790 1357 1102 81% 255GP 17903 10466 8991 86% 1475

KZN 14113 9941 6015 61% 3926LP 5496 2356 1866 79% 490MP 3125 2454 2007 82% 447NC 2392 618 494 80% 124NW 4062 2590 2052 79% 538WC 8360 2283 1305 57% 978TOTAL 59700 35174 26181 74% 8993

INSPECTION OUTCOMES

• The measure of an inspectors effective is the ability to use the legal

instruments provided for in law

• A total of 25759 notices against a target of 31733 were issued ( 82%)

and 295 cases were referred to court

• Very low number of compliance orders issued due to high rate at

which undertakings have been honoured by the employers

• 97% of cases referred to labour court were ruled in favour of the

Department

• 3% ruled against us due to defective compliance orders or not

observing separation of duties as per the delegations

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Programme 3: Public Employment Services

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interventions.

CONTRIBUTE TO EMPLOYMENT CREATIONMain Achievements Challenges Proposed Interventions from


84% work on the ES Bill was completed. Labour Portfolio Committee, concluded deliberations on the ES Bill. The National Assembly subsequently referred the Bill to the National Council of Provinces (NCOP) for endorsement.

The Bill was sent to the President for signature in March 2014.

Draft Regulations and Guidelines developed.

Draft regulations were developed but could not be published before the ES Act was promulgated and ES Board established

The ES Bill had to be processed through for approval by the President

A total of 58 major campaigns and 801 local advocacy campaigns

None None

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A total of 618 092 (124%) work seekers were registered on ESSA. 107 229 (122 %) work-seekers were registered on ESSA provincially against a target of 500 000. 10863 (2%) workseekers were registered on-line.

None None

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Prov. Target Number registered Variance % Registered

EC 55000 65670 10670 119

FS 40000 43478 3478 109

GP 120000 139953 19953 117

KZN 95000 109914 14914 116

LP 40000 62959 22959 157

MP 40000 47680 7680 119

NC 15000 20304 5304 135

NW 30000 26791 -3209 89

WC 65000 90480 25480 139

On-Line 0 10863 0

NATIONAL 500000 618092 107229 124



41% (250160 of 500 000) of work-seekers against a target of 50% were provided with employment counselling

• PES is under staffed at service delivery points

-96 Employment Counsellors at 126 Labour Centres and 214 Employment Practitioners

• Insufficient financial resources for capacity building

Request additional funding in order to appoint more Career counselors and Employment Services Practitioners

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Prov. Number registered Target Number counselled % counselled VarianceEC 65670 50% 30568 47 -3%

FS 43478 50% 27724 64 14%

GP 139953 50% 39959 29 -21%

KZN 109914 50% 41244 38 -12%

LP 62959 50% 27096 43 -7%

MP 47680 50% 27134 57 7%

NC 20304 50% 13499 66 16%

NW 26791 50% 15787 59 9%

WC 90480 50% 27149 30 -20%

TOTAL 607229 50% 250160 41% -9%

CONTRIBUTE TO EMPLOYMENT CREATIONMain Achievements Challenges Proposed Interventions from the

Department/ Deputy Minister and or Minister.

A total of 15570 (82%)work-seekers was placed in registered employment opportunities in Provinces against a target of 19000.

Skills mismatch between registered work-seekers and registered opportunities (Supply and demand)

Collaborate with other stakeholders including skills development institutions, in order to enhance employability of unskilled work-seekers

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Prov. Target Actual placed Variance % Placed

EC 2280 1654 -626 73

FS 1520 3421 1901 225GP 4560 2609 -1951 57KZN 2280 2054 -226 90LP 1900 1669 -231 88MP 1711 2269 559 133NC 1330 529 -801 40NW 1330 806 -524 61WC 2089 559 -1530 27TOTAL 19000 15570 -3430 82%



A total of 98 829 (130%) work-seekers was referred to registered employment opportunities in Provinces against a target of 76 000.

None None

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Prov. TargetActual referred Variance % Referred

EC 9120 13040 3920 143

FS 6080 12455 6375 205GP 18240 22782 4542 125KZN 9120 10215 1095 112LP 7600 8787 1187 116MP 6840 9307 2467 136NC 5320 4422 -898 83NW 5320 7160 1840 135WC 8360 10661 2301 128TOTAL 76000 98829 22829 130



A total of 448 124 work-seekers was referred to other services against a target of 120 000.

None None

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Prov. TargetActual referred Variance % Referred

EC 15693 53 348 37 655 340

FS 10147 37 077 26 930 365GP 21121 98 535 77 414 467KZN 25369 138 153 112 784 545LP 8142 41 805 33 663 513MP 10147 56 669 46 522 558NC 8732 5 200 598 113NW 4602 7 168 -1 564 82WC 16047 10 169 -5877 63TOTAL 120 000 448 124 328 124 373



A total of 2 427 employers registering vacancies on ESSA against a target of 1 000

None None

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Prov. TargetActual registered Variance % Registered

EC 95 293 198 308

FS 87 174 87 200GP 193 389 196 202KZN 165 230 65 139LP 80 262 182 328MP 105 391 286 372NC 48 130 82 271NW 93 244 151 262WC 134 314 180 234TOTAL 1000 2427 1427 243%



A total of 309 Private Employment Agencies were registered against a target of 500.

Non compliance by Private Employment Agencies(PEAs) and Temporary Employment Services (TES) due to absence of regulatory framework

Finalization of the ES Regulations

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Prov. TargetActual registered Variance % Registered

EC 55 15 -40 27

FS 35 5 -30 14GP 105 135 30 129KZN 80 13 -67 16LP 45 14 -31 31MP 45 18 -27 40NC 20 5 -15 25NW 30 5 -25 17WC 85 99 14 116TOTAL 500 309 -191 62



A total of 193 migrant work permits applications were received, 86% were processed within 30 days and 14% finalised in 60 days.

Incomplete applications received

No incomplete applications will be included in the reporting.

7 MOAs concluded by June 2013. performance reports submitted and financial transfers to the amount of R6 911 414.67 were paid.

None None

MOA concluded. Performance report submitted and financial transfers were effected to the amount of R R87892 500.00

None None

MOA concluded, all quarterly reports received. Financial transfers effected to value of R40 285 000.00

None None

100% claims received were settled within 30 days and amount paid out was R10 542 209.69

None None

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Programme 4 Labour Policy and Industrial Relations

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interventions.

EMPLOYMENT EQUITYMain Achievements Challenges Proposed Interventions from


Employment Equity Amendment Act, 2013 assented into law on 14 January 2014

Delays in the signing-off of the EE Amendment Act into law.

Finalise NEDLAC deliberations on EE regulations to ensure promulgation of the EE Amendment Act in Q2 of 2014/2015.

Amended Employment Equity Regulations published for public comment on 28 February 2014 and tabled at NEDLAC for social partner deliberations

Delays in sourcing of Public comments and commencement of NEDLAC as a result of the delays in the signing-off of the EE Amendment Act into law.

Active participation by the Department in NEDLAC deliberations to finalise NEDLAC Report and publish regulations in Q2 of 2014/2015.

Annual Employment Equity Report developed by March 2014.

EE System challenges in relation to the Statistical reports required for data analysis for the Annual report.

Department to source IT expertise, especially for System developers.

30 Income Differentials assessed to determine race and gender disparities in salaries

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EMPLOYMENT STANDARDS

Main Achievements Challenges Proposed Interventions from the Department/ Deputy Minister and or

Minister.

Hospitality sectoral determination reviewed and published

None None

Taxi sectoral determination reviewed and published

None None

New Sectoral determination investigated (Funeral Undertaking sector) completed and report compiled.

Promulgation delayed due to ECC requesting further information on the sector.

Department will engage parties in the sector to provide more information

One Child Labour Programme of Action implemented in linewith the 5-year plan on 1 August 2013

None None

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INTERNATIONAL RELATIONS


Minister.

Review signed MoUs with Lesotho, China and Namibia finalised

Lack of Commitment from Algerian counterparts to confirm dates of signing

Raise the issue with Algeria through Diplomatic Channels

South Africa's position on issues for discussions in the SADC and AULSAC developed and report produced

None None

Briefing Notes on issues for Discussions at the G20 meeting developed and report produced

None None

Develop briefing documents for ARLAC Governing Council

None None

Five reports on ratified conventions (Article 22) submitted to the ILO.

None None

Successful participation of the South African tripartite delegation to the 102nd Session of the International Labour Conference. Briefing documents and statements developed.

“No show” by Social partners in Geneva which has cost implications for the Department.

Minister endorsed that Department should claim back money from social partners in terms of accommodation and subsistence allowances . A letter was sent to NEDLAC in this regard.

April 19, 202326

COLLECTIVE BARGAINING


Minister.

LRA Amendments passed by National Assembly

• Timely implementation of LRA amendments

• Promulgation of LRA amendments targeted for 1 January 2015

Ministerial support for awareness raising around amendments once promulgated.

17 Collective agreements extended within 60 days

1.124 million employees covered by extended agreements in the private sector

• Legal challenges to extension of collective agreements (eg. Free Market Foundation challenge

Support for centralised collective bargaining as envisaged in LRA.

146 applications for registration by labour organisations processed.

• Ensuring all applications are processed within 90 days.

Monitoring of processing of labour organisation applications.

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LABOUR MARKET INFORMATION SYSTEMS


Minister.

Four annual labour market trend reports produced and published. These include: •Industrial Action, •Annual Labour Market Bulletin, Annual administrative Statistics and Job Opportunity and •Unemployment in the SA Labour Market

None None

Fieldwork on the Client Satisfaction survey 2014 conducted and finalised by end of September 2013

None None

Two briefing reports submitted to the Minister on Labour Force Survey and Unemployment insurance data analysis (January- March and April-June 2014)

None None

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RESEARCH POLICY AND PLANNING


Minister.

Three research studies,•Effectiveness of Bargaining Council’s Exemption process•Reduction of working hours to a 40 hour week and•Assessing public knowledge levels about the services of DoL were approved to be conducted, literature review completed on all and data collection started.

Data collection on these research studies, especially on those involving Bargaining Councils did not move as planned and delayed research progress.

DoL stakeholders identified as research respondents should be encouraged by senior management to respond to questionnaires and incentives can be issues for those who honour the research.

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ICT Achievements, Challenges and Proposed interventions: 2013/14

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ICT Main Achievements•Successfully transferred ICT resources from EOH to DOL through S197•IT service gaps identified and mitigated through SITA contracts•Setup ICT governance structures•Appointed SAP service provider (3 year contract), resuming 1 Oct 2014•Implementation of Interim storage solution

Challenges•Finalisation of ICT structure•Non resolution of long outstanding ICT grievances •Filling of vacant positions (System developers, engineers, etc)•No Business Continuity Plan (BCP) a foundation of Disaster Recovery Plan(DRP)•EOH Outstanding deliverables

Proposed Interventions•Finalisation of ICT structure•Filling of ICT vacant positions

Thank You…

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