presentation to the select committee on labour and public enterprises 19 march 2008 acting...

PRESENTATION TO THE SELECT COMMITTEE ON

LABOUR AND PUBLIC ENTERPRISES 19 MARCH 2008

Acting Director-General: Mr. Les Kettledas

CONTENTS

1. VISION2. MISSION STATEMENT3. MINISTERIAL PROGRAMME OF ACTION 2004-20094. ACHIEVEMENTS5. STRATEGIC OVERVIEW6. KEY POLICY DEVELOPMENTS7. STRATEGY FOR BETTER SERVICE DELIVERY8. INFORMATION TECHOLOGY PLAN THROUGH A PUBLIC

PRIVATE PARTNERSHIP (PPP)9. HUMAN RESOURCE PLAN10. PUBLIC ENTITIES AND OTHER AGENCIES11. MTEF ALLOCATIONS 12. CONCLUSION

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1. VISION

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

investment and employment creation and which is characterized by rising skills, equity, sound labour relations, respect for employment standards and

worker rights.

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2. MISSION STATEMENT

The Department of Labour will play a significant role in reducing unemployment, poverty and inequality through a set of policies

and programmes developed in consultation with social partners, which are aimed at:

• Improved economic efficiency and productivity

• Skills development and employment creation

• Sound labour relations

• Eliminating inequality and discrimination in the workplace

• Alleviating poverty in employment

• Enhancing Occupational Health and Safety awareness and compliance in the work place

• Nurturing the culture of acceptance that worker rights are human rights

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ORGANOGRAM MINISTER OF

LABOUR

DIRECTOR-GENERAL

OF LABOUR

COMMISIONER: CF COMMISSIONER:

UIF

DDG: CORPORATE

SERVICES

DDG: SERVICE

DELIVERY

DDG: LP&LMP

DDG:E&SDS/HRD

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3. MINISTERIAL PROGRAMME OF ACTION 2004-2009

STRATEGIC OBJECTIVES• Contribution to employment creation

• Enhancing skills development

• Promote equity in the labour market

• Protecting vulnerable workers

• Strengthening multilateral and bilateral relations

• Strengthening social protection

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MINISTERIAL PROGRAMME OF ACTION (continued)

STRATEGIC OBJECTIVES

• Promoting sound labour relations• Strengthening the capacity of labour market institutions• Monitoring the impact of legislation• Strengthening the institutional capacity of the

Department

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4. RECENT ACHIEVEMENTS4.1 Decentralisation of functions and

delegating authority.

• The decentralisation of services encompasses the refocusing of the organisation for better service delivery, ensuring that the Department works smarter with limited resources.

• Functions have been identified for decentralisation to Provincial and Labour Centre levels.

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RECENT ACHIEVEMENTS (continued)

4.2 Service Delivery

• 94 038 job seekers and 7 726 placement opportunities were registered on Employment Services System and 2 838 job seekers placed between April and December 2007.

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Employment opportunities registered in the Employment Services System

PO No of job seekers registered

No of opportunities registered

No of job seekers matched

No placed

GN 13049 746 979 35

GS 13630 1509 2819 390

NW 2602 180 180 180

WC 33449 2083 3364 666

MP 1330 652 906 17

LP 4743 379 273 96

EC 8033 1056 370 77

NC 3008 39 48 37

KZN 3322 0 149 398

FS 10872 1082 1429 612

Total 94038 7726 10517 2508

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4.2 Service Delivery (cont.)

• 3 770 youths were assessed and placed in National Youth Service programmes in the infrastructure sector compared to a target of 5 000.

• 19 people with disabilities received bursaries to the value of R205 462

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4.2 Service Delivery (cont.)• Through collaboration with the Umsobomvu

Youth Fund, 40 387 youths were trained of which, 28 837 were placed in employment. The target is 30 000.

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Training & Placement categories

FS Youth 3799 50% 2484 65%

GN Youth 4290 65% 2874 67%

GS Youth 4444 63% 2853 0%

NW Youth 649 13% 649 13%

WC Youth 8935 61% 4509 50%

MP Youth 6637 75% 5998 90%

LP Youth 2541 44% 2438 96%

EC Youth 4932 40% 4379 36%

NC Youth 1928 50% 1517 45%

KZN Youth 2232 63% 1136 51%

TOTAL 40387 54% 28837 52%

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• 148 297 workplaces were inspected between April and December 2007 against a target of 150 000 for the year. Of these, 112 595 (76%) complied with labour legislation requirements within 90 days.

• 14 055 workplaces inspected were in industries with high OHS incidence rates

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150 000 workplaces inspected and at least 75% compliance levels ensured within 90 days of inspection conductedPO No inspected No of employer complying

within 90 days% Settlement within 90 days

GN 11383 10439 92%

GS 47403 33519 71%

NW 8905 6145 69%

WC 14642 11859 81%

MP 10240 7865 77%

LP 8336 5710 68%

EC 13217 10164 77%

NC 4864 3767 77%

KZN 18960 14073 74%

FS 10347 9054 88%

TOTAL 148297 112595 76%

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OHS:At least 4000 workplaces in high risk industries inspected

Sector No of workplaces inspected

Construction 6211

Agriculture 2099

Food and Beverage 2836

Iron and Steel 2909

TOTAL 14055

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• Of the 162 101 labour related complaints reported, 131 979 (81%) were investigated and the cases concluded within 90 days.

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70% of labour related complaints reported investigated and settled within 90 days

PO Total Number Total number complaints investigated

within 90 days

Total number complaints settled

within 90 days

%

GN 27106 26164 26164 97

GS 46176 38158 33084 72

NW 4069 2833 2053 50

WC 13396 13396 12580 94

MP 17055 2528 13536 79

LP 19608 1559 18162 93

EC 5702 3550 62

NC 2281 2281 1949 85

KZN 15107 9350 11388 75

FS 11601 11347 9513 82

TOTAL 162101 107616 131979 81

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4.3 Skills Development (NSF)Between April and December 2007, • A total of 1 945 social development skills projects were supported

at a cost of R199,809,405 to train 75 251 against a target of 90 000 unemployed people. Of those trained, 54 960 (73%) were placed in employment, self –employment, projects or further studies.

• 19 903 unemployed learners were registered in various ABET levels

• 1064 learners were enrolled in various programmes and R114 m was spent against the allocated R887 m Provincial Strategic Projects

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4.3 Skills Development (cont.)Between April and December 2007• Scarce and critical skills data base was updated and

placed on DoL website• 1 438 SMME’s , NGOs, Co-ops were supported by

SETAs against a target of 600• 11 225 ABET employed learners were registered with

7 834 completing• 66 974 employed learners entered various learning

programmes and 53 567 completed• 30 042 unemployed entered various programmes and

11 812 completed

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4.3 Skills Development (cont.)Between April and December 2007• 2 730 learners in scarce and critical were assisted to

enter workplaces • 947 learners were registered in New Venture Creation

Programmes • A Draft framework for implementing Quality Council

for Trades and Occupations (QCTO) was developed• INDLELA new refocus strategy was developed and

approved.

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4.4 Labour Market Policy

• Private security sector minimum wages and contract cleaning and civil engineering sectoral determinations were reviewed and published. The hospitality sectoral determination was promulgated and published in May 2007.

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4.4 Labour Market Policy (cont.)

• In 2006/07, awareness raising activities for the child labour programme of action were conducted in all provinces. Pilot programmes were implemented to address the worst forms of child labour.

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• The worst forms of child labour include the commercial sexual exploitation of children, child trafficking, scavenging and children used by adults to commit crimes.

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• A planning tool for the delivery of water aims to bring water points closer to users.

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• Research has been concluded on the reduction of working hours, bargaining councils, the Commission for Conciliation, Mediation and Arbitration (CCMA) and the labour market.

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• Research has been conducted by the Human Sciences Research Council (HSRC), together with the development policy research unit of the University of Cape Town and the sociology of work programme of the University of the Witwatersrand.

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5. STRATEGIC OVERVIEW : 2004/05 – 2010/11

The Department of Labour aims to support key government policies for the

second decade of democracy through activities that will:

• Contribute to the growth and development in the economy;

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5. STRATEGIC OVERVIEW continued: 2004/05 – 2010/11

• Increase the ability of the economy to create employment;

• Address the needs of vulnerable and poor people in the second economy;

• Promote social security to contribute towards poverty alleviation; and

• Address racial and gender inequality.

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6. KEY POLICY DEVELOPMENTS

The Department has prioritised the following areas over the MTEF period.

The Department is tasked with enhancing the employment services system. The system will register work seekers and job opportunities and will provide:

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6. KEY POLICY DEVELOPMENTS (cont)

• Job matching services• Career guidance and counselling

services• Information services• Skills development referrals• Special services for designated

groups

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Phase I is being implemented at all Labour Centres. This involves the rollout of:

• The registration of job seekers, employers and placement opportunities

• The matching of job seekers with job opportunities

• The training of trainers and users of the system

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A career guidance and counselling system will be developed and implemented by 2010/11.

Public comments on the draft employment services regulations (which compel public and private employers to register vacancies) were published in August 2007 a revised regulation is scheduled to be finalised in February 2008

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KEY POLICY DEVELOPMENTS (cont)

• A joint policy statement on the Review of the National Qualifications Framework was tabled to Cabinet in August 2007.

• A Skills Conference was held in October 2007 to review implementation, quality of provision, funding and SETAs

• A NEDLAC Review of SETAs was initiated• A draft Skills Development Amendment Bill

was developed and published for comment on 28February 2008.

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The proposed amendments are aimed at:• Adjusting SETA functions relating to quality assurance• Establishment of the QCTO• Introducing various learning routes to attain artisan

status and repeal of the Manpower Training Act of 1981.

• Listing the NSF as a public entity • Adjusting functions of the National Skills Authority in

relation to the National Skills Fund and QCTO

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The Decent Work Country Programme (DWCP) will be developed by April 2009 in collaboration with the International Labour Organisation (ILO) and in consultation with social partners, focussing mainly on employment creation.

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•The four pillars of the Decent Work Agenda will be dealt with in the context of related government reform processes and the Department’s constitutional obligations•Fundamental principles and rights at work and international labour standards•Employment and income opportunities•Social dialogue and tripartism•Social protection and social insurance

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7. STRATEGY FOR BETTER SERVICE DELIVERY

• Enhancement of the Employment Services System

• Enhancement of the Inspection and Enforcement System

• Development and implementation of Service Delivery Standards

• Provision of Tools of Trade to our staff for effective service rendering

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STRATEGY FOR BETTER SERVICE DELIVERY (Continued)

Access StrategyDepartment will explore other Service

Delivery Channels including:• Multimedia Call centre with Customer

Relations Management (CRM) capabilities

• Mobile Labour Centres fully resourced

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STRATEGY FOR BETTER SERVICE DELIVERY (Continued)

• Partnerships with Private sector and public sector entities expanded and strengthened

• Cellular telephony used for transaction based services and information dissemination

• Telephone line and interactive questionnaire on the Web site for clients

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8. INFORMATION TECHNOLOGY PLAN THROUGH A PUBLIC PRIVATE

PARTNERSHIP (PPP)

• Employment Services System( Phase 2 & 3)– ( SETA PMS System, Grant Disbursement system,

NSFDIS and Career Information system)• Inspection and Enforcement System• Claims and Fund Disbursement Systems in terms of the

Compensation Fund and the Unemployment Insurance Fund

• Human Resource Management System• Financial Management System• Management Information System

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INFORMATION TECHNOLOGY PLAN THROUGH A PUBLIC PRIVATE

PARTNERSHIP (PPP) (Continued)• On-going Refresh of the IT infrastructure

• Improvement of the efficiency of the Department’s Virtual Private Network which is provided by SITA

• Use of mobile and wireless technologies to facilitate service delivery in remote areas.

• Call centre technologies to facilitate CRM

• Cellular telephony for transaction based services and for information dissemination

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9. HUMAN RESOURCE PLAN

• The Human Resource plan supports the strategic plan through an appropriate organizational structure and implementation of HR policies

• Competencies ensured through a Skills Audit and the gaps addressed through Training and development

• Vacancies to be filled in line with the Recruitment and Selection Policy

• Staff attrition to be addressed through the career management and retention policy and succession planning.

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HUMAN RESOURCE PLAN (Continued)

• Uniform remuneration and grading across similar jobs ensured through job evaluation

• Employment Equity addressed as per the EE plan

• Workplace well being addressed through the establishment of on-site wellness centres, counselling and life skills programmes

• Management of performance monitored and done promptly

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10. PUBLIC ENTITIES AND OTHER AGENCIES

• The National Skills Authority (NSA)• Unemployment Insurance Fund (UIF)• Compensation Fund (CF)• Productivity SA (Formerly NPI)• Twenty-three Sector Education and Training

Authorities (SETAs)• National Economic Development and Labour

Council (NEDLAC)• Commission for Conciliation, Mediation and

Arbitration (CCMA)• Umsobomvu Youth Fund (UYF).

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11. MTEF ALLOCATIONS

BRANCHBaseline

allocationFinal

allocationIncrease / (Decrease)

2007 ENE 2008 ENE 2008/2009R'000 R'000 R'000

ADMINISTRATION 380,480 387,207 6,727 SERVICE DELIVERY 675,577 690,361 14,784 EMPLOYMENT & SKILLS DEVELOPMENT SERVICES 202,444 203,700 1,256 LABOUR POLICY & LABOUR MARKET PROGRAMMES 429,383 441,142 11,759 SOCIAL INSURANCE 10,501 10,501 -

TOTAL 1,698,385 1,732,911 34,526

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2008/2009 Final Vote

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Admin. Serv. Del. E&SDS LP&LMP Soc. Ins.

2007 2008

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2008/2009 Final Vote• In terms of the 2008 ENE, the Department of

Labour’s Vote number has been adjusted to Vote 15.

• Major decreases to the Vote in respect of the 2008/2009 financial year are attributable to:

– a reduced allocation of R5 million in respect of the recapitalization of the Umsobomvu Youth Fund (UYF) from R400 million in 2007/08.

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2008/2009 Final Vote• For 2008/09, the Department did receive

additional funding to address the following:

– Risk and Asset Management– Capacity in respect of the employment

services system– Feasibility study for the SEF( Business case)– Additions to address salary adjustments

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12. CONCLUSION

• Strategic Plan 2007-2010 to be seen within context of ASGI-SA

• Strategic Plan to be used as a basis for measuring the Department’s performance in the next three years

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THANK YOU

presentation to the select committee on labour and public enterprises 19 march 2008 acting...

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