department of labour presentation to the portfolio committee on labour

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DEPARTMENT OF LABOUR

PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR

WORKSHOP ON BUDGET REVIEW

02 JULY 2014

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Table of contentsTable of contents1. Background on the Department of Labour- Organizational structure- Vision & Mission- Legislative, Policy mandate and Amendments- Labour Market challenges- DOL capacity

2. Overview of DOL Programmes and Entities3. DOL Finances

- 2013/2014 Budget allocation and expenditure- 2014 budget allocation and challenges

4. DOL Strategic Plan 2014-2019 - Alignment with NDP and MTSF

5. DOL Programmes 2013 / 2014 Annual Performance, Challenges and Annual Performance Plan 2014/2015

5.1 Programme 1 Administration 5.2 Programme 2 Inspection and Enforcement 5.3 Programme 3 Public Employment Services 5.4 Programme 4 Labour Policy and Industrial Relations

1.1. DoL1.1. DoL’’s Top Organizational Structures Top Organizational Structure

Minister of LabourHon. M

Oliphant,MP

DG: LabourS Morotoba

(Acting)

Branch: Chief of

OperationsA Moiloa

Branch:Corporate Services

P Tengeni

Branch:Inspection and Enforcement

ServicesT Lamati

Branch:Public

EmploymentServicesE Tloane(Acting)

Branch: Labour Policy&

Industrial RelationsT Mkalipi (Acting)

Component : Unemployment

Insurance Fund

B Seruwe

Component : Compensation

Fund1 Commissioner:

S Mkhonto

Deputy Minister Hon P

Holomisa, MP

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1.2. DoL1.2. DoL’’s Top Organizational s Top Organizational StructureStructure

The Department of Labour will strive for a labour market which is conducive to

investment, economic growth, employment creation and

decent work

1.3. Our Vision 1.3. Our Vision

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1.4. Our mission1.4. Our mission• Regulate the south African labour market for a Regulate the south African labour market for a

sustainable economy through :sustainable economy through :– appropriate legislation and regulationsappropriate legislation and regulations– Inspections ,compliance monitoring and enforcement Inspections ,compliance monitoring and enforcement – Protection of human rightsProtection of human rights– Provision of employment servicesProvision of employment services– Promoting equityPromoting equity– Social and income protectionSocial and income protection– Social dialogueSocial dialogue

1.5. Our Values

• We treat employees with care, dignity and respect • We respect and promote: - Client centred services - Accountability - Integrity and ethical behaviour - Learning and development • We live the Batho Pele Principles • We live the principles of the Department’s Service Charter • We inculcate these values through our performance

management system.

1.6. CONSTITUTIONAL MANDATEThe DOL’s legislative framework is informed by the South African Constitution, Chapter 2 & Bill of Rights:

•Section 9, ensure equal access to opportunities•Section 10, promotion of labour standards & fundamental rights at work•Section 18, Freedom of association•Section 23, to ensure sound Labour relations•Section 24, to ensure an environment that is not harmful to the health & will being of those in the workplace•Section 27, to provide adequate social security nets to protect vulnerable workers•Section 28, to ensure that children are protected from exploitative labour practices & not required or permitted to perform work or services that are inappropriate for a person of that child’s age or their well being, education, physical or mental health or spiritual, moral or social development is placed at risk•Section 34, access to courts & access to fair and speedy labour jusctice

1.7. Legislative and other Policy Mandates

The South African Constitution and related policies and prescripts, and learning from the various ILO Conventions and International Labour Standards, the Department of Labour administers the following labour legislation:

• Labour Relations Act 66 of 1995 (LRA);• The Basic Conditions of Employment Act 75 of 1997 (BCEA);• The Employment Equity Act 55 of 1998 (EEA);• The Unemployment Insurance Act 30 of 1996 (UIA);• The Occupational Health and Safety Act 85 of 1993 (OHSA); • The Compensation for Occupational Injuries and Diseases Act 130

of 1993 (COIDA); and • National Economic Development and Labour Council (NEDLAC)

Act, 35 of 1994.• Employment Services Act (Act No. 4 of 2014)

1.7.1. Progress on legislative amendments

1. Basic Conditions of Employment Act, Act No.20 of 2013- Promulgation target date : July 2014

2. Employment Equity Act, Act No. 47 of 2013- Regulations that include method and criteria for equal pay for work of

equal value finalised at NEDLAC - Promulgation target date: July 2014

3. Labour Relations Amendment Bill, 2012- Currently with the State President for his assent- Draft Regulations are being finalised

1.7.1. Progress on legislative amendments

4. Employment Services Act, Act No.4 of 2014-Promulgation of chapters 1, 2, 4, 5 and 6 target date: July 2014

5.Unemployment Insurance Fund Amendment Bill NEDLAC report and Cabinet approved Bill referred to Parliament

6. During 2014/2015 the Department will finalise proposed amendments to:- Occupational Health and Safety Act and - Compensation for Occupational Injuries and Diseases Act

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1.8. Challenges that DOL face in the Labour Market

• Unemployment and under employment• Changing nature of work• Inequalities and unfair discrimination• Domestic and cross border labour migration• Inadequate instruments for constant

performance, monitoring and evaluation of labour market and programmes to determine their impact on the economy

Major economic hub: 18 178 sq kmPopulation 12 272 263; employed 4 794 000, unemployed 1 669 000 and 25.8% unemployment rate in March 2014)

GDP 34.7% contribution to SA economyHighest labour absorption

2 nd largest -SA economy with 94 361

sq km, 10 267 300 people, 2 527 000

employed and 20.7% unemployment rate (659

000 unemployed) in March 2014 GDP 15.8%

Smallest GDP growth & economic contribution with 1 145 861 people, 372 889 sqkm, 29% unemployment

rate (126 000 unemployed) and 308 000employed in March 2014. GDP 2.2 %

Land area: 125 754 sqkm; Pop. 5 404 868; 1 136000 employed and 256 000 unemployed (18.4% unemployment rate) in March 2014. GDP 7.1%

Population: 4 039 939; land area 76 495 sq km; 30.4% unemployment rate (492 000 unemployed); and 1 127 000 employed in March 2014 GDP 7.1%

3rd largest - SA economy with 5 822 734 people living in 129 462 sqkm, 2 237 000 employed, 20.9% unemployment rate (593 000 unemployed)

in March 2014. GDP 14%

Population: 6 562 053land area 168 966 sq km; 29.4% unemployment rate ( 556 000 unemployed); and 1 332 000 employed in March 2014, GDP 7.5%

Population: 2 745 590 landarea 129 825 sq km

34.7%unemployment rate(384 000 unemployed); and

724 000 employed in March 2014. GDP 5.2%

Population: 3 509 953land area 104 882 sq km; 27.7% unemployment rate (333 000

unemployed); and 870 000 employed in March 2014

GDP 6.4%

GautengGauteng

LimpopoLimpopo

MpumalangaMpumalanga

North WestNorth West

Free StateFree State KwaZuluNatal

KwaZuluNatal

Northern CapeNorthern Cape

Western CapeWestern Cape

Eastern CapeEastern Cape

1.9. Our Presence country-wide- HQ and 2 Funds in Pretoria-9 DoL Provincial Offices - 126 Labour Centre Offices-19 Mobile Units to access remote area visiting points-2 well equipped PES Busses - Provide services in 72 out of 139 Thusong Centres once a week

1.9. Our Presence country-wide- HQ and 2 Funds in Pretoria-9 DoL Provincial Offices - 126 Labour Centre Offices-19 Mobile Units to access remote area visiting points-2 well equipped PES Busses - Provide services in 72 out of 139 Thusong Centres once a week

4. DEPARTMENT OF LABOUR PROGRAMMES: 2010/11

DoL programmes are as follows:

1. Programme 1: Administration: Ministry; Deputy Minister, Director General’s Office; Corporate Services (CS), Chief Operations Officer (COO), Chief Financial Officer (CFO)

2. Programme 2: Inspection and Enforcement Services (IES)

3. Programme 3: Public Employment Services

4. Programme 4: Labour Market Policy & Industrial Relations

5. Protected Employment Enterprises (currently trading as Sheltered Employment Factories

6. Unemployment Insurance Fund (Schedule 3A Public Entity)

7. Compensation Fund (Schedule 3A Public Entity)

2. 2. Department of Labour Programmes Department of Labour Programmes 2014/20152014/2015

2.1. Public Entities Associated with DOL

Entities established in terms of various legislations to assist DOL to meet its mandate:

•Commission for Conciliation, Mediation and Arbitration (CCMA)•National Economic Development and Labour Council (NEDLAC)•Productivity South Africa

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2.2. Programme 1 :Administration2.2. Programme 1 :Administration

• Ministry and Deputy Ministry:Ministry and Deputy Ministry: provides oversight to ensure that the provides oversight to ensure that the Department’s mandate is achievedDepartment’s mandate is achieved

• Office of the Director-General:Office of the Director-General: provides administrative oversight for effective provides administrative oversight for effective implementation of the Department’s mandate & overall accounting oversightimplementation of the Department’s mandate & overall accounting oversight

• Chief Operations Officer:Chief Operations Officer: manages & directs medium term strategies manages & directs medium term strategies planning processes, performance information reporting, monitoring & planning processes, performance information reporting, monitoring & evaluation of performance against plan & the service delivery improvement evaluation of performance against plan & the service delivery improvement planplan

• Corporate Services:Corporate Services: provides support services that include HRM, Internal provides support services that include HRM, Internal Audit, Risk Management, Communication & Legal ServicesAudit, Risk Management, Communication & Legal Services

• Office of the Chief Financial OfficerOffice of the Chief Financial Officer provides financial management, provides financial management, transport & accommodationtransport & accommodation

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2.5. Programme 2 :Inspections and 2.5. Programme 2 :Inspections and Enforcement (IES)Enforcement (IES)• To realise decent work by regulating non-employment and employment To realise decent work by regulating non-employment and employment

conditions through inspections and enforcement in order to achieve conditions through inspections and enforcement in order to achieve compliance with all labour legislationcompliance with all labour legislation

• Total of 830 of which 160 are OHS inspectors, 336 Team leaders, 75 Principal Inspectors and 129 vacancies

• Ration of inspectors in developing countries is 1 inspector for 20 000 entities whilst in SA 1 inspector is looking after 114 000 entities resulting in ineffective enforcement of OHS Act provisions

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2.6. Programme 3:Public Employment 2.6. Programme 3:Public Employment Services (PES)Services (PES)

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

• Employment Services Counsellors 95 and Employment Services Counsellors 95 and Employment Services Practitioners 214Employment Services Practitioners 214

Protected Employment Enterprises (currently trading as Sheltered Employment Factories)

Established through a Cabinet decision in 1948 as Service Products Factories. Legal status included in the Employment Services Act 2014

Functions:•provide work opportunities for disabled people;•facilitate on-the-job training for disabled people, leading to qualifications and competencies that enable access to jobs and income generation capability in the labour market in accordance with the Skills Development Act, 1998 (Act No.97 of 1998);•provide training and assist in placing people with disabilities in employment; •provide technical assistance to emerging and existing enterprises that promote the employment of people with disabilities; •remain flexible and adaptable to meet the changing needs of people with disabilities in a changing economy.

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2.7. Programme 4:Labour Policy and 2.7. Programme 4:Labour Policy and Industrial RelationsIndustrial Relations

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

3. DEPARTMENT OF LABOURFINANCES

PRIOR YEAR’S REVIEW

3.1. AUDIT OUTCOMES 2012/13

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AUDIT OUTCOMES 2012/13

ACHIEVEMENTS

• 2010/11• SAIGA awards 1st position for National

Departments• 2011/12

• SAIGA awards 3rd position for National Departments

• 2012/13• SAIGA awards 1st position for National

Departments26

3.2. DEPARTMENT OF LABOUR

FINANCIAL REPORT 2013/14

3.2.1. BUDGET ALLOCATION 2013/14

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DEPARTMENT OF LABOUR

FinalAppropriation

ActualPayment

Payment as % of final

appropriation R'000 R'000 %

Current payments Compensation to employees 876 995 866 137 98.8% Goods and services 666 248 603 491 90.6% Interest and rent on land - - 0.0% Financial transactions in assets and libilities 18 137 18 137 100.0% Transfers & subsidies Provinces & municipalities 447 447 100.0% Departmental agencies & accounts 676 206 676 182 100.0% Universities & technikons - - 0.0% Foreign governments & international organisations 15 914 15 914 100.0% Public corporations & private enterprises - - 0.0% Non-profit institutions 127 702 127 702 100.0% Households 3 136 3 135 100.0% Gifts and donations - - 0.0% Payment on capital assets Buildings & other fixed structures 1 548 1 548 100.0% Machinery & equipment 58 914 58 751 99.7% Biological or cultivated assets - - 0.0% Software & other intangible assets - - 0.0% Land & subsoil assets - - 0.0% Total 2 445 247 2 371 444 97.0%

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3.2.2. UNAUDITED EXPENDITURE RESULTS 2013/14

APPROPRIATION '000

EXP. AS AT 31 MARCH 2014

'000

AVAILABLE BUDGET

'000 % SPENT1 ADMINISTRATION 840 449 795 870 44 579 95%2 INSPECTION AND ENFORCEMENT SERVICES 426 811 412 213 14 598 97%3 PUBLIC EMPLOYMENT SERVICES 413 496 413 495 1 100%4 LABOUR POLICY AND INDUSTRIAL RELATIONS 764 491 749 866 14 625 98%

2 445 247 2 371 444 73 803 97%

PROGRAMME

Total expenditure

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Original Budget

2014/15

R'000

Current Payments 1 553 963

Compensation of Employees 966 516 Goods and Services 587 447 Current transfers and subsidies 942 351

Provincial and Local Governments 2 Departmental Agencies and Accounts 774 940 Foreign Gov&International Organ 16 461 Non Profit Institutions (NPI) 150 652 Households (HH) 296 Payments for capital assets 30 978

Buildings & Other Fix Struct 17 Machinery and Equipment 30 961 Grand Total 2 527 292

Standard Item

3.3. BUDGET ALLOCATION 2014/15

3.3.1. 2014/15 BUDGET PER PROGRAMME

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Programme Original Budget

2014/15

R'000

Administration 787 694

Inspection & Enforcement Services 403 174

Public Employment Services 466 533

Labour Policy & Ind Relations 869 891

Grand Total 2 527 292

The 2014 budget was decreased by R106 R106 million million of which R63 million on of which R63 million on Compensation of Employees.Compensation of Employees.

– (60%) of the reduction was meant for capacitation (60%) of the reduction was meant for capacitation of the Inspectorateof the Inspectorate

– the remaining (40%) was allocated for the the remaining (40%) was allocated for the capacitation of IT services taken back from the capacitation of IT services taken back from the Private Partner Private Partner

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3.3.2. BUDGET REVIEW 2014/15

3.4. MEDIUM TERM EXPENDITURE FRAMEWORK (MTEF)

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Labour

Programme 2015/16 2016/17 2017/18

R thousand

1. Administration 829 888 956 764 1 010 551

2. Inspection and Enforcement Serv ices 433 093 600 179 636 761

3. Public Employ ment Serv ices 489 192 514 744 543 899

4. Labour Policy and Industrial Relations 926 218 976 363 1 026 339

Subtotal 2 678 391 3 048 050 3 217 550

Indicative Medium-term allocation (MTEF 2015)

3.4.1. MTEF

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Economic classification

Current payments 1 644 599 1 959 468 2 074 540

Compensation of employ ees 1 033 371 1 315 505 1 398 382

Goods and serv ices 611 228 643 963 676 158

Interest and rent on land – – –

Transfers and subsidies 1 001 456 1 054 533 1 107 259

Prov inces and municipalities 2 2 2

Departmental agencies and accounts 826 395 870 194 913 704

Foreign gov ernments and international organisations 17 344 18 264 19 177

Non-profit institutions 157 406 165 747 174 034

Households 309 326 342

Payments for capital assets 32 336 34 049 35 751

Buildings and other fix ed structures – – –

Machinery and equipment 32 336 34 049 35 751

Total 2 678 391 3 048 050 3 217 550

3.5. FUNDING CHALLENGES

Spending pressures, strengthening of existing programmes and new priorities:

•Implementation of the new Public Employment Act. (Act 7 of 2014) (Review of Programme, and establishment of Board.) •Funding of the Office of the Chief Information Officer•Funding of Inspection and Enforcement Services•Funding of the new Deputy Minister’s office

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4. DoL Strategic Plan 2014 – 2019 Alignment with Medium Term

Strategic Framework (MTSF) and the National Development Plan (NDP)

4.1. Alignment of the DoL Strategic Plan to NDP and MTSF

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NDPNDP MTSFMTSF THE DEPARTMENT OF LABOUR STRATEGIC PLANTHE DEPARTMENT OF LABOUR STRATEGIC PLAN

STRATEGIC OBJECTIVE INDICATOR ANNUAL PERFORMANCE PLAN (APP) YEAR 1 TARGETS

Growing an inclusive economy Outcome 2: Long and healthy life for all South Africans

1: Promote Occupational health services

Number of entities audited per year in terms of the OHSA

150

Outcome 4: Decent employment through inclusive economic growth

2: Contribute to decent employment creation

Number of work-seekers placed in registered employment opportunities

20 000

3: Protect vulnerable workers Establish basic standards and minimum wages

Number of existing and new sectoral determinations reviewed and investigated

Number of workplaces inspected per year to determine compliance with labour legislation

Review two Sectoral Determinations by March 2015. One new sector investigated for possible setting of minimum wages and conditions of employment by 30 Sept 2014

Start investigation for Domestic and Farm workers Provident Fund by 2015 149 154


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NDPNDP MTSFMTSF THE DEPARTMENT OF LABOUR STRATEGIC PLANTHE DEPARTMENT OF LABOUR STRATEGIC PLANSTRATEGIC OBJECTIVE

INDICATOR APP YR 1 TARGETS

Growing and inclusive economy

Outcome 4: Decent employment through inclusive economic growth

5: Strengthen occupational safety protection

Percentage of entities registered per year in terms of the OHSA

2000

6: Promote sound labour relations

Number of Collective agreements extended within 60 days of receipt

17

7: Monitor the impact of legislation

A number of labour market trends and research reports produced

8 (4 Annual Labour Market Trend reports and 4 Internal Statistical Trend reports compiled)

Outcome 13: Social protection

9. Development of the Occupational Health and Safety policies

Occupational Health and Safety Act and regulations amended

OHS Amendment Bill submitted to NEDLAC Amend 2 regulations


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Growing and inclusive economy

Outcome 14: Nation building and social cohesion

10. Promote Equity in the labour market

Employment Equity Amendment Act implemented and evaluated within set time frame

Number of designated employers reviewed per year to determine compliance with employment equity legislation

Amended EE Regulations published Draft Code on Equal Pay published for public comment Conduct 9 workshops on amended EEA and regulations

517


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Build capabilities Outcome 4: Decent employment through inclusive economic growth


Number of work-seekers registered on ESSA system per year Number of vacancies and opportunities registered on ESSA

550 000 55 000

Outcome 5: Skilled and capable workforce to support an inclusive growth path


Number of registered work-seekers provided with employment counselling

220 000


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Capable and developmental state

Outcome 11: Create a better South Africa, a better Africa and a better world

4 Strengthen multilateral and bilateral relations

A Number of reports submitted and Memoranda of Understanding signed

Monitor implementation of 4 signed MOUs and submit quarterly reports

Outcome 12: An efficient, effective and development oriented public service

8: Strengthen the institutional capacity of the Department of the Department

Percentage of staff trained in line with Workplace Skills Plan (WSP) by 31 March

87%

5.1 Programme 1 Administration 2013 / 2014 Annual Performance, Challenges and Annual Performance Plan 2014/2015

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5.1.1. Program 1: Administration

OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIPStrategic Objective 8: Strengthening the institutional capacity of the Department

KEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS

ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS ChallengesChallenges

1. Percentage of final reports issued as per timeframes indicated in the approved annual audit plan

90% final reports issued as per timeframes indicated in the approved annual audit plan

87% (27 planned and 31 finalised/issued) was achieved

High staff turnover in the Internal Audit Directorate resulted in 2 reports not finalised on time. The 1 outstanding report is in the final draft stage awaiting the final comment from management.

2. Percentage of fraud cases received and detected and finalised per year

90% 75% (40 cases received, and 30 finalised) finalised by end of the year.

The 10 cases that remained outstanding were due to lack of capacity and skill to investigate DoL cases.

3. Number of security awareness conducted within a specified time

Security awarenessconducted in 5 provinces

Security awareness was conducted at:

Western Cape; Free State; Limpopo; North West, and Mpumalanga province.

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5.1.2. Administration - continues

OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIPStrategic Objective 8: Strengthening the institutional capacity of the DepartmentKEY PERFORMANCE KEY PERFORMANCE

INDICATORSINDICATORSANNUAL ANNUAL TARGETSTARGETS

PROGRESSPROGRESS ChallengesChallenges

4. Percentage of (a) women in SMS, (b) youth and(c) people with disability (PwD) employed in line with the EE Plan by 31 March each year

(a) 45%

(b) 43%

(c) 3%

As on 31 March 2014 : a) 38.5% of women employed at SMS level at the end of March 2014. This was calculated based on a total count of 40 women against 104 SMS members on the DoL establishment.

b) 32.9% of youth employed in the Department at the time of reporting. This was calculated based on a total count of 2508 youth against 7621 employees on the DoL establishment).

c) 2.5% of PWD employed on DoL establishment at the time of reporting. (This was calculated based on a total count of 191 PWD against a total of 7621 employees on the DoL establishment).

a) The number of women at SMS level increased from 33 to 40 during the reporting period.

b) Changes in the organisational structure and the high attrition rate in this category.

c) The additional posts that were created during this performance cycle. However, the 2.5% is above the national target of 2% for the public service.

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5.1.3. Administration - continues

OUTCOME 12: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIP

Strategic Objective 8: Strengthening the institutional capacity of the Department

KEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS ChallengesChallenges5. Reduction in percentage vacancy rates by 31 March

Vacancy rate reduced to 6%

The vacancy rate at the end of March 2014 was 12.9%.

The establishment grew from 8062 posts to 8755 posts during the financial year.

6. Percentage of staff trained in line with Workplace SkillsPlan (WSP) by 31 March

85% 88% (4 542 of the 5 152 planned ) staff was trained by end March 2014.

7. Percentage of misconduct cases finalised in line with applicable prescripts by 31 March

77% 67% There were numerous fraud cases that took longer than anticipated.

8. Percentage of Court Papers to resolve litigation filed with the Court within 10 days of receipt

80% Of the 67 cases received, 48 (72%) were resolved within 10 days.

IES Cases were mostly handled outside the 10 day. The reason being that documents were outstanding from the Provinces and the cases could not proceed without the file being complete.

5.1.4. Administration Annual Performance Plan 2014/15

Strategic Objectives Programme performance indicator Medium Term Targets

2014/15

1 Provide leadership and institutional management to the Department of Labour and Entities

1.1 Strategic leadership and guidance provided Quarterly, mid- term and annual performance reviews held

2 Provide integrated business and service delivery solutions

2.1 Strategic Plan and Annual Performance Plan approved and tabled as per prescribed timeframes

Strategic Plan and Annual Performance Plan approved by end of January for tabling in Parliament by 31 March

2.2 Percentage of organisational performance improves per year 65% improvement of the organisational performance

2.3 Improve the Department’s performance based on the

Management Performance Assessment Tool (M-PAT) assessment criteria Comply with 45% of the M-PAT standards

15% of total DoL M-PAT standards per KPI at level 4 and 30% standards at level 3

2.4 Service Delivery Improvement Plan (SDIP) coordinated for

approval by March SDIP submitted for approval by March 2015

3 Risk Management Strategy implemented 3.1 Number of Strategic risk reviews and monitoring compiled and submitted for the approval by the Accounting Officer within 30 days of each quarter

4

4 Fraud Prevention & Security Strategy implemented 4.1 Percentage of fraud cases received or detected finalized per year.

92%

4.2 Number of fraud prevention awareness campaigns conducted 4

4.3 Percentage reduction in security breaches/ incidents 65%

Administration Annual Performance Plan 2014/15


2014/15

5 Departmental interventions and initiatives communicated

5.1 Number of exhibitions held to profile the services of the Department per annum

10

5.2 Number of service delivery points branded and signage displayed per selected province

10 Labour Centres in 2 Provinces

5.3 Turnaround time to respond to media queries Media queries responded to within 24 hours

6 Integrated human resource strategy implemented 6.1 Percentage of (a) women in SMS, (b) youth and (c) people with disability (PwD) employed in line with the EE Plan by 31 March each year

(a) 45% (b) 36% (c) 3%

6.2 Percentage of vacancy rate reduced by 31 March 10%

6.3 Percentage of staff trained in line with Workplace Skills Plan (WSP) by 31 March

87%

6.4 Percentage of misconduct cases finalised in line with applicable prescripts by 31 March

80%

6.5 Percentage of employees (a) SMS and (b) MMS and lower entered into performance agreement and assessed within the time frames

95%

7 Effective Legal support services 7.1 Percentage of Court Papers to resolve Litigation filed with the Court within 10 working days of receipt

90%

Administration Annual Performance Plan 2014/15


2014/15

8 Information Communication Technology support services provided

8.1 Annually review and implement the ICT strategy of the Department

Implementation of the governance model

9 Sound financial management 9.1 Number of financial statements compiled per year that comply with guidelines issued by the National Treasury.

1 Annual report by 31 May, and 4 Interim reports 30 days after each quarter.

9.2 Medium Term Expenditure Framework (MTEF) and Estimates of National Expenditure (ENE) prepared according to National Treasury (NT) prescripts

Departmental budget compiled and published

9.3 Percentage reduction of audit findings 50%

10 Effective and efficient Sound Supply chain management 10.1 Percentage of compliant invoices paid within 30 days of receipt 100%

10.2 Percentage reduction of transgression in irregular expenditure compared to previous year

60%

Programme 2 Inspection and Enforcement 2013 / 2014 Annual Performance, Challenges and Annual Performance Plan 2014/2015

5.2.1. Ensure promotion of EmploymentEquity in the Labour market

50

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

5.2.2. Reduction in worker vulnerability through improved compliance and enforcement

51

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

5.2.3. Responsiveness to Client complaints

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Prov. Target No. receivedNo.

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%

5.2.4.Workplaces audited to determine their compliance levels with OHS

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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% 1475KZN 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

5.2.5. Capacity building of shop stewards in the workplace

A total of 209 shop stewards were trained against a target of 100•141 in the Wholesale and Retail Sector •25 in the chemical sector trained•43 in the Construction Sector

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5.2.6. Challenges experienced during implementation and corrective measures. • Implications of Budget cuts on:

1. operations2. Human resources

Corrective MeasuresLobbying the portfolio committee to engage with

National Treasury to increase the inspectorate baseline in order to address the impact of budgetary constraints on service delivery

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5.2.7. IES Strategic Objectives 2014-2015

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Strategic outcome oriented goals 2: (outcome 4)

Decent employment through inclusive economic growth

GOAL STATEMENT Protect vulnerable workersStrengthen occupational safety protection

Strategic outcome oriented goals 5: (Outcome 13)

Social Protection

GOAL STATEMENT Development of the Occupational Health and Safety policies

Strategic outcome oriented goals: 6 (Outcome 14)

Transforming Society and uniting the Nation

GOAL STATEMENT Promote Equity in the labour market

Strategic outcome orientated goal 1(Outcome 2)

A long and healthy life for all

GOAL STATEMENT Promote Occupational health services

5.2.8. Outcome 14: Transforming Society and uniting the Nation

Performance indicator Reporting period

Annual target2014-15

Quarterly targets Budget 1st 2nd 3rd 4th R’000

1.1 Number of designated employers reviewed per year to determine compliance with employment equity legislation

A 517 103 207 103 103 16137

1.2 Percentage of non-compliant employers of those reviewed in terms of 1.1 dealt with in terms of the enforcement regime link to the EEA

Q 100% 100% 100% 100% 100% 3227

57

5.2.9. Outcome 4: Decent employment through inclusive economic growth

58

5.2.10. Outcome4: Decent employment through inclusive economic growth

59



Quarterly targets Budget

1st 2nd 3rd 4th R’000

3.1 Number of workplaces inspected per year to determine their compliance with the OHS legislation

Q 20 609 4122 8244 4 122 4 122 80812

3.2 Percentage of non-complying workplaces inspected in reference to 3.1 dealt with in terms of the OHS legislation

Q 100% 100% 100% 100% 100% 16976

5.2.11. Outcome 2: A long and healthy life for all

Performance indicator

Reporting period


Quarterly targets Budget 1st 2n

d3rd

4th R’000

4.1. Number of employer audits conducted per year to determine compliance with the UI Act

Q 13440 2688

5376

2688

2688 Funded by UIF

4.2 Number of entities audited per year in terms of the OHSA

Q 150 25 75 25 25 3354

4.3 Percentage of entities registered per year in terms of the OHSA

Q 100% 100%

100%

100%

100% 7547

60

5.2.12. Outcome 13: Social Protection

Performance indicator

Reporting period


Quarterly targets Budget 1st 2nd 3rd 4th R’000

5.1. Occupational Health and Safety Amendment Bill submitted to NEDLAC by March 2015

A a. Hazardous Chemical Substance Regulation amended

b. Major Hazardous Installation Regulations amended

9319

61

5.3. Programme 3: Public Employment Services 2013 / 2014 Annual Performance, Challenges and Annual Performance Plan 2014/2015

63

5.3.1 Programme 3: Performance against 2013/14 selected indicators

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribute to employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS 3.1. Number of work-seekers registered on ESSA per year

500 000 AchievedA total of 618092 (124%)were registered on ESSA.

Prov. TargetNumber registered Variance % Registered

EC 55000 65670 10670 119FS 40000 43478 3438 109GP 120000 139953 19953 117KZN 95000 109914 14914 116LP 40000 62959 22959 157MP 40000 47680 7680 119NC 15000 20304 5304 135NW 30000 26791 -3209 89WC 65000 90480 25480 139On-Line 0 10863 0NATIONAL 50000 618092 118092 124

64

5.3.2. Program 3: Performance against 2013/14 selected indicators

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS4.1. Percentage of work-seekers registered on the system provided with employment counselling

50%

(500000)

Achieved41% (250160 of 500 000) of work-seekers against a target of 50% were provided with employment counselling

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

FS 50% 27724 64 14%

GP 50% 39959 29 -21%

KZN 50% 41244 38 -12%

LP 50% 27096 43 -7%

MP 50% 27134 57 7%

NC 50% 13499 66 16%

NW 50% 15787 59 9%

WC 50% 27149 30 -20

TOTAL 50% 250160 41 -9

65

5.3.3. Performance against 2013/14 selected indicators

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS4.2. Number of work-seekers placed in registered employment opportunities

19 000 AchievedA total of 15570 (82%)work-seekers was placed in registered employment opportunities in Provinces against a target of 19000.

Prov. Target Actual placed Variance % PlacedEC 2280 1654 -626 73FS 1520 3421 1901 225GP 4560 2609 -1951 57KZN 2280 2054 -226 90LP 1900 1669 -231 88MP 1710 2269 559 133NC 1330 529 -801 40NW 1330 806 -524 61WC 559 -1531 27ON-LINE 0 86 0TOTAL 19000 15656 -3430 82

66

5.3.4 Performance against 2013/14 selected indicators

OUTCOME 4DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS4. 3. Number of work-seekers referred to registered employment opportunities

76 000 A total of 98829 (130%)work-seekers was referred to registered employment opportunities in Provinces against a target of 76 000.

Prov. Target Actual referred Variance % ReferredEC 9120 13040 3920 143FS 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

67

5.3.5. Performance against 2013/14 selected indicators

OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH DoL Strategic Objective 1: Contribution to decent employment creationKEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS ANNUAL TARGETSANNUAL TARGETS PROGRESSPROGRESS5.1. Number of employers registering vacancies

1 000 New employers A total of 2427 employers registering vacancies on ESSA against a target of 1 000

Prov. TargetActual registered Variance % Registered

EC 95 293 198 308FS 85 174 89 205GP 195 389 194 199KZN 166 230 64 139LP 80 262 182 328MP 105 391 286 372NC 49 130 81 265NW 155 244 89 157WC 70 314 244 449TOTAL 1000 2427 1427 243

5.3.6. PES Challenges• PES is under staffed at service delivery

points.

• Insufficient financial support for capacity building and implementation of employment schemes.

• Skills mismatch between registered work seekers and registered opportunities (Supply & Demand).

• Resistance of registration and non compliance by PEA’s and TES’s.

68

69

Strategic Objectives Programme performance indicator

2014/15

1

Provision of public employment services

1.1. Employment Services Board established and Employment Services Regulations developed by March 2015.

Employment Services Board established and Employment Services regulations developed by March 2015.

1.2 Number of PES provincial and local advocacy campaigns conducted

At least 18 provincial and 126 local advocacy campaigns conducted

1.3. Number of work-seekers registered on ESSA system per year

550 000

1.4 Number of registered work-seekers provided with employment counselling

220 000 registered work-seekers provided with employment counselling by March 2015.

1.5 Number of work-seekers placed in registered employment opportunities

20 000

1.6. Number of vacancies and opportunities registered on ESSA

50 000

1.7 Private Employment Agencies and Temporary Employment Agencies registered

All PEA applications processed within 60 days of receipt

2 Foreign nationals individual and cooperate work visas regulated

2.1 Applications for foreign nationals corporate and individual work visa processed within 30 working days

All applications for foreign nationals corporate and individual work visa processed within 30 working days

3 Disability 3.1 MoAs concluded with eligible MoAs concluded with organizations, performance

5.3.7. PES Annual Performance Plan 2014/15

70



Quarterly targets Budget

1st 2nd 3rd 4th R’000

1.1 Employment Services Board established and Employment Services Regulations developed.

Q Employment Services Board established and Employment Services regulations developed by March 2015.

Develop draft Employment Services regulations. Develop ES Board Constitution.

Develop submission for Minister to nominate ES Board members. Facilitate the appointment of ES Board

Convene First seating of the new Board. Table draft ES regulations to ES Board.

Facilitate Public Hearings on draft ES Regulations. Facilitate the ratification of ES regulations by the ES Board

1,647.

1.2 Number of PES provincial and local advocacy campaigns conducted

Q At least 18 provincial and 126 local advocacy campaigns conducted

5 Provincial 32 Local




Mss: 3,295.ES: 11,696.WS: 10,617.

Total: 25,609.

71

1.3 Number of work-seekers registered on ESSA system per year

Q 550 000 137 500 137 500 137 500 137 500 53,398.

1.4 Number of registered work-seekers provided with employment counselling

Q 220 000 registered work-seekers provided with employment counselling

55 000 55 000 55 000 55 000 31,853.

1.5 Number of work-seekers placed in registered employment opportunities

Q 20 000 5 000 5 000 5 000 5 000 23,393.

72

3.1 MoAs concluded with eligible designated organizations, performance monitored and funding transferred by March 2015

Q MoAs concluded with organizations, performance monitored and financial transfers effected by March 2015

Facilitate the advertisement of the Tender for designated organisations

Finalize the Tender process for designated organisation.

Conclude MoA’s with eligible organisations and transfer the first trancheé.

Performance of designated organisations monitored and funding transferred.

850

4.1 MoAs concluded by 31st March each year, performance reports submitted, quarterly and funding transfers effected (SEF)

Q MoA concluded by 31st March, performance reports submitted quarterly and funding transferred quarterly

Quarterly Reports consolidated, analysed, and funding transferred




138 573

5.1 MoAs concluded by 31st March each year, performance reports submitted (Productivity SA)

Q MoA concluded by 31st March, performance reports submitted quarterly and funding transferred quarterly





43 119

5.4 Programme 4 Labour Policy and Industrial Relations 2013 / 2014 Annual Performance, Challenges and Annual Performance Plan 2014/2015

5.4.1. Performance Report against the 2013-14 Annual Performance Plan

April 21, 2023 74

STRATEGIC OBJECTIVE ACHIEVEMENTS

Employment Equity in the Labour Market ensured

The Employment Equity Act, 2013 assented into law

Employment Equity Annual Report published.

30 Income Differentials assessed

Basic Conditions of Employment in the labour market ensured

The Basic Conditions of Employment Act,2013 assented into law.

One Child Labour Programme of Action implemented in line with the 5-year plan

Sectoral Determinations (SD) published for residual and emerging vulnerable workers

Hospitality and Taxi Sector Determinations reviewed

Civil society organisations that protect vulnerable workers funded

12 Civil society organisations involved in the world of work funded and monitored .


April 21, 2023 75


Sound Labour Relations ensured 17 collective agreements were extended to non-parties within 60 days.

96% of new applications of Labour Organisations were processed within 90 days of receipt

Relations Strengthened through Memoranda of Understanding (MOU) with fraternal countries

Reviewed Memorandums with China, Lesotho, Namibia, Algeria, Brazil, Zimbabwe and Cuba

Number of reports to ensure compliance with the ILO Constitutionalrequirements in terms of Article 19 and 22 of the ILO Constitution

5 Reports submitted:Article 221. Forced Labour Convention, 1930 (No. 29)2. Night Work (Women) Convention (Revised), 1948 (No.89).3. Abolition of Forced Labour Convention, 1957 (No. 105).4. Minimum Age Convention, 1973 (No.138).5. Worst forms of Child Labour Convention, 1999, (No. 182).


April 21, 2023 76


Labour market trends monitored

4 annual Labour market trends reports produced and disseminated .

4 briefing reports on Quarterly Labour Force Survey and Unemployment Insurance Fund produced

Impact of legislationevaluated and reported on

The Annual Labour Market Review (ALMR) topic of Noise Induced Hearing Loss was developed and approved.

5.4.4. CHALLENGES

• Promulgation and implementation of Legal amendments

• Labour Market instability

April 21, 2023 77

5.4.5. Annual Performance Plan 2014-2015

STRATEGIC OBJECTIVE 2014-15

Employment Equity in the labour market ensured and enforcement improved

Amended EE Regulations published Draft Code on Equal Pay published for public comment

2013-2014 Annual Employment Equity Report and Public Register published by 30 June 2014

30 Income differentials assessed

April 21, 2023 78



Establish basic standards and minimum wages

Review two Sectoral Determinations and one new Sector investigated

Start investigation for Domestic and Farm workers Provident Fund Start investigation for National Minimum wage

Sound Labour Relations ensured 17 Collective agreements extended within 60 days of receiptStart process to form Bargaining Council in Mining

April 21, 2023 79



Ensure compliance with the country’s international obligation

Monitor implementation of signed MOUs and submit quarterly reports

8 Reports (1 Article 19 and 7 Article 22 )

4 G20 Reports developed

Impact of legislation and labour market trends monitored and evaluated

8 Labour Market Reports (4 Labour Market Trend reports and 4 Internal Statistical Trend reports ) 4 research reports completed.

April 21, 2023 80

Thank You…

department of labour presentation to the portfolio committee on labour

Documents