overall responsibility director general: npt nhleko

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Annual Report Presentation to the Portfolio Committee on Labour:

18 October 2011

Annual Report Presentation to the Portfolio Committee on Labour:

18 October 2011

Overall Responsibility

Director General: NPT Nhleko

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Table of ContentsTable of Contents

1. Mandate

2. 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

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1. Mandate1. 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.

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2. 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.

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2. MTSF and Service Delivery Outcome aligned to the DoL strategic objectives

SERVICE DELIVERY OUTCOMES AND OUTPUTSSERVICE DELIVERY OUTCOMES AND OUTPUTS DoL STRATEGIC OBJECTIVESDoL STRATEGIC OBJECTIVES

4: Decent employment through inclusive economic growth Outputs: 4.1 Making our growth more labour absorbing4.2. Reducing youth unemployment4.3. Raising our international competitiveness4.4. Analysing the cost structure of the SA economy4.5. Reviewing support for small business4.6. 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 developmentorientated public service and anempowered 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

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creationKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS

TARGETSTARGETS ACHIEVEMENTSACHIEVEMENTS

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 registered

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Job seekers, opportunities registered and placement

Province Job Seekers Reported

Job seekersRegistered

% Registered

Opportunities Registered

Placement

EC 55 663 40 796 73 2 302 1 073

FS 47 940 47 940 100 3 225 1 850

GP 202 388 121 556 60 4 767 2 528

KZN 134 880 89 335 66 8 814 2 993

LIMP 46 705 46 705 100 11 626 141

MP 57 205 45 629 80 2 166 1 759

NC 2 802 2 057 73 900 216

NW 19 342 19 052 99 1 696 1 469

WC 85 686 69 968 82 4 325 772

Total 652 611 483 038 70% 39 887 12 801

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creationKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


3. Percentage of registered job seekers referred to counselling/guidance, skills development, registered vacancies, workplace opportunities, UI and CF 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 to Compensation Fund benefits and 7 217 to DHET for further training

7 217 job seekers were referred for skills development opportunities

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C Clients referred to job opportunities and services

PROVINCE

Career counselling

Work Placement

UI CF Sills Dev.

EC 6 853 5 361 44 296 138 261

FS 8 813 1 628 32 932 911 222

GP 8 602 6 091 113 258 0 3430

KZN 10 583 3 823 92 813 355 715

LIMP 5 239 141 32 507 0 0

MP 7 660 1 759 33 936 1 707 819

NC 2 802 2 057 8 039 107 375

NW 8 064 1 469 29 983 5 508 594

WC 6 731 3 485 64 186 6 801

Total

65 347 25 814 451 950 8 732 7 217

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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 creationKEY PERFORMANCE KEY PERFORMANCE

INDICATORSINDICATORSTARGETSTARGETS ACHIEVEMENTSACHIEVEMENTS

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.

• 15 000 jobs were saved in 130 companies through turn around strategies in Agriculture, Steel and Manufacturing sectors, Construction, 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.

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Strategic Objective 1: Contribution to employment creation

KEY KEY

PERFORMANCE PERFORMANCE

INDICATORSINDICATORS


4. Number of companies in distress sectors provided with assistance (CONT.)

Application processes within 5 working days from application

The UIF allocated R48.5 million to Productivity South Africa and 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

Further details will be dealt with in the UIF presentation

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Training Layoff Scheme

Prov. Applicant companies Workers Amount

EC 6 459 3,001,041.78

FS 0 0 0

GP 5 2661 22,202,784.69

KZN 2 1133 2,989,392.21

LIMP 0 0 0

MP 1 65 104,010.05

NC 0 0 0

NW 2 767 6,066,068.81

WC 3 1098 5,858,850.82

Total 19 6183 R40, 222, 148

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Strategic Objective 1: Contribution to employment creation

KEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


5. Number of companies assisted through workplace challenge programme to become world class competitive

120 companies • 230 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

3 000 2 707 SMME managers were trained to sustain and grow their enterprises

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3. Key Challenges and Remedial ActionsPERFORMANCE INDICATOR

MAJOR VARIANCE AND REASONS THEREOF ACTION TAKEN TO RESOLVE THE PROBLEM

1. Approved Public Employment Services Policy, Employment Services Act and related regulations and guidelines

Employment Services Bill approved and published for public commentReasons:•Public consultation conducted January to March 2011•Bill currently before NEDLAC•Regulations will follow gazetting of the act

Ministerial intervention to instruct NEDLAC to conclude negotiations on the Bill

2. % of registered job seekers referred to counselling/guidance, skills development, registered vacancies, workplace opportunities, UI and CF benefits.

Placement in registered vacancies and work

placement opportunities.

Reasons:

•Lack of Policy and legislation to compel

employers to register opportunities.

•Lack of integrated systems to trace job seekers

referred for placement.

•Allocation of funding for skills development

insufficient.

•Inadequate human and IT resources.

2.1 Employment Services Bill is

under discussion at NEDLAC.

2.2 Integration of SIYAYA with ESSA

to capture jobseekers referred

through ESSA when employers

declare at UIF.

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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.

Funds were received during the 2nd quarter and this delayed implementation process.

Future Social Plan funding will be applied for in time

4. Special employment

opportunities provided to eligible

people with disabilities from all

racial groups.

• No approved policy and legal

framework for Service

Products factories.

• Mainstreaming of people with

disabilities require

collaboration with placement

agencies for the open labour

market.

Business case is being developed

including the policy

Proposed legal framework is

included in the Employment

Services Bill being discussed at

NEDLAC.

Review and improvement of the

current SEF marketing strategy

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Strategic Objective 2: Promote Equity in the Labour Market



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 ILO on implementing recommendation 200 on HIV/AIDS

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Strategic Objective 2: Promote Equity in the Labour MarketKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


2. Employment Equity implementation and enforcement mechanisms strengthened

Subject 200 companies to DG review by March 2011: •60 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 EEA procedural inspections were conducted and 7449 (79%) compliance rate was achieved

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DG ReviewPROV. TARGET # COMPANIES

REVIEWED# RECOMMENDATIONS MADE

JSE DESIGNATED EMPLOYERS

JSE DESIGNATED EMPLOYERS

JSE DESIGNATEDEMPLOYERS

GP 0 44 0 41 0 41

KZN 6 36 4 39 0 33

EC 13 16 13 16 0 16

WC 12 8 6 8 6 8

FS 2 20 54 21 54 21

LP 6 7 12 10 12 10

NW 0 9 0 9 0 8

NC 6 16 4 7 0 0

MP 15 22 3 19 15 19

TOTALTOTAL 6060 176176 9696 170170 8787 156156

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable WorkersKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


1. 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.

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.

• EPWP determination and code of good practice was published

• The Small Business determination has been referred to NEDLAC for consideration by the social Partners

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Strategic Objective 3: Protecting Vulnerable Workers



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.

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Total inspection of workplaces

Prov # insp # complying

% compliance

# Noticesissued

Type of notices issued Prosecutions(cases to Court)

Awards by court - successful

Undertaking

ComplianceOrder

Contra

Impr Proh

Labour Court

Magistrates Court

Yes No

GP 53388 45306 85 4998 2207 280 1723 182 136

65 280 0 0

KZN 20878 13688 66 7056 3807 148 2624 69 138

92 113 49 0

EC 14947 11628 69 3006 1699 257 936 31 188

85 16 0 0

WC 12797 8191 64 3446 1896 247 943 182 178

32 1 0 0

FS 16864 15725 93 2566 1606 76 671 140 73 8 1 0 0

LP 11344 8014 71 4270 2840 159 858 37 71 11 1 5 0

NW 11509 9963 87 3683 2333 153 702 402 93 1 1 0 0

NC 6465 5130 79 1790 649 35 1023 45 37 1 2 2 0

MP 8940 7335 82 2314 1514 25 631 58 86 0 0 0 0

Total

192 129

147626 77 33129 18551 1380 10111

1146 1000

295 415 56 0

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable WorkersKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


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.

2323

Complaints/Investigations

Provinces Total # Complaints received by CSOs and Inspectors

Total # of Complaints investigated

Total # of Complaints settled within 90 days

% settlement

Money recovered(R )

GP 75701 56204 50735 67 3 214 656.11

KZN 23366 15562 19603 84 3 515 747.00

EC 6924 7036 5462 69 412 385.80

WC 5763 5763 4364 76 291 931.00

FS 9823 6556 8202 83 855 304.41

LP 11156 9847 9072 81 6 683 045.82

NW 4039 3793 3301 82 0

NC 3828 3828 3415 89 400 600.00

MP 13841 11977 11977 86 508 448.29

Total 154441 120566 116131 75 15 882 118.43

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable Workers

KEY PERFORMANCE KEY PERFORMANCE

INDICATORSINDICATORSTARGETSTARGETS ACHIEVEMENTSACHIEVEMENTS

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

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3. Key Challenges and Remedial ActionsPERFORMANCE INDICATOR MAJOR VARIANCE AND

REASONS THEREOFACTION TAKEN TO RESOLVE THE PROBLEM

1. 200 000 workplaces

inspected for compliance to

ensure 80% compliance to

labour legislation.

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.

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%.

Research not conducted due

to delays in the procurement

process.

Planned for 2011/12 financial year.

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Strategic Objective 8: Monitoring the impact of legislation



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.

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OUTCOME 4: AN EFFICIENT, EFFECTIVE, AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND AN EMPOWERED AND INCLUSIVE CITIZENSHIPStrategic Objective 9: Strengthening the institutional capacity of the DepartmentKEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS


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%.

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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



4. % 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.

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DEPARTMENT OF LABOURFINANCIAL YEAR 2010/2011

FinalAppropriation

ActualExpenditure

Variance Variance as a

% of Final Appropriation

R'000 R'000 R'000 % Administration 685,122 682,480 2,642 0.4% Inspection and Enforcement 329,373 329,373 - 0.0% Public Employment Services 293,008 289,258 3,750 1.3% Labour Policy and Labour Market Programmes 528,320 525,199 3,121 0.6%

Subtotal 1,835,823 1,826,310 9,513 0.5%

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FinalAppropriation

ActualPayment

Variance Variance as a

% of Final Appropriation

R'000 R'000 R'000 % Current payments Compensation to employees 681,530 681,530 - 0.0% Goods and services 506,381 503,439 2,942 0.6% Interest and rent on land 71 71 - 0.0% Financial transactions in assets and libilities 19 19 - 0.0% Transfers & subsidies Provinces & municipalities 54 54 - 0.0%

Departmental agencies & accounts 457,990 457,948 42 0.0% Universities & technikons - - - 0.0% Foreign governments & international organisations 10,883 10,703 180 1.7% Public corporations & private - - - 0.0% Non-profit institutions 89,394 89,196 198 0.2% Households 3,138 3,137 1 0.0% Gifts and donations - - - 0.0% Payment on capital assets Buildings & other fixed structures 3,771 3,117 654 17.3% Machinery & equipment 82,582 77,086 5,496 6.7% Biological or cultivated assets - - - 0.0%

Software & other intangible assets 10 10 - 0.0% Land & subsoil assets - - - 0.0% Total 1,835,823 1,826,310 9,513 0.5%


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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 internationalCompetitiveness

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

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5. Key Aspects of Strategic Plan 2011/12 and Midterm - continue

SERVICE DELIVERY OUTCOMES AND OUTPUTS

THE DEPT STRRATEGIC 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 ILO Governing Body and the ILC 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 pointsImprove turn-around time for services rendered Reduction in distances travelled to access service pointsPercentage of customer complaints successfully resolved within 14 days

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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

Thank youThank you

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overall responsibility director general: npt nhleko

Documents

decent employment

employment creation2

employment services

dol strategic plan

service delivery quality

labour market3

labour absorbing4

better south africa