DoL Presentation to the Select Committee on Labour and Public Enterprises 29 February 2012

Table of Contents Mandate MTSF and Service Delivery Outcome specific to the DoL Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance Budget Allocations and Utilisation 2011-2012 (refer to presentation on budget) Key Aspects of Strategic Plan 2012/13 Key Challenges and Remedial Actions Expectations from the Select Committee

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

2. MTSF AND SERVICE DELIVERY OUTCOMES SPECIFIC TO THE DOL In this report, the Department reflects on its contribution to year three (April-Dec 2012) of the Medium Term Strategic Framework (MTSF) 2011-2016 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.

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

3. Key Aspects of the DoL Strategic Plan 2011/12 Strategic oriented goals of the Department Implementation of Decent Work Country Programme Rebuilding the Public Employment Services. Promote a policy environment to provide public employment services which will enable government to maintain a database of job seekers and job opportunities, as well as matching and placement of job seekers. Strengthening of Department of Labour inspectorate. Promote decent work and address vulnerability in the labour market through effective monitoring and enforcing compliance with legislation. Strengthening social security including reintegration of workers into the labour market and restructuring the Sheltered Employment Factories Strengthening the institutional capacity of the Department

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETS PROGRESS 1. Employment Services (ES) Policy, related regulations and guidelines in place Employment Services Bill finalised by 2011. Regulations developed ES Bill approved and published for comments. Bill currently at NEDLAC for discussion with stakeholders. 2. Number of job-seekers Registered on the system assessed and profiled 50% job-seekers registering on the system are assessed and profiled within 60 days of Registration 403 482 registered on the system and 139 428 profiled 3. Number of job-seekers placed/referred to opportunities 450 000 job-seekers placed/referred to opportunities   64 798 referred/placed into opportunities

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance: Provincial Breakdown Table 1: Job-seekers Registered on the system assessed and profiled Prov. Target Actual profiled Deviance EC 45000 11009 33991 FS 33000 10437 22563 GP 60000 36601 23399 KZN 39000 24036 14964 LP 27000 9481 17519 MP 30000 22319 7681 NC 18000 2666 15334 NW 24000 10946 13054 WC 11888 12112 NATIONAL 300000 139428 -139428

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance: Provincial Breakdown Table 2: Job-seekers placed/referred to opportunities Prov. Target Referred/placed Deviance EC 67500 10437 57063 FS 49500 4754 44746 GP 90000 13212 76788 KZN 58500 4382 54118 LP 40500 6446 34054 MP 45000 6175 38825 NC 27000 2596 24404 NW 36000 9646 26354 WC 7150 28850 NATIONAL 450000 64798 385202

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETS PROGRESS 4 Number of applications from companies in distressed sectors processed 30 Applications processed within 30 working days from application 14 applications received and processed within 30 working days 5 Number of workers in companies in distressed sectors provided with assistance 9 000 workers in companies in distressed sectors provided with assistance 1 344 workers assisted 6. Increased sales of goods from Service Products leading to more intake of people with disabilities into SEF 30% in sales leading to 500 more people with disabilities employed in SEF subject to Government departments placing 30% of their orders from SEF Sales increased by 15,43 % during Q3 (Oct – Nov ) – R12,682,417 No additional factory workers employed 22% increase year on year 7. Number of people from designated groups placed in training and income generating opportunities Youth, Women, PWD 100 000 Youth   50 000 Women 1 000 PWD 19 197 Youth 11276 Women 527 PWD

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETS PROGRESS 8. Number of people with disabilities/ex-combatants and Compensation Fund beneficiaries assisted with skills for employment in the SEF 600 learners with disabilities recruited for training to the SEF Centre of Excellence pilot project, for the year 2011 - 12 None

Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown) Table 3: Number of Youth Referred Prov. Target Actual Deviance EC 15000 4282 10718 FS 11000 4364 6636 GP 20000 1780 18220 KZN 13000 1043 11957 LP 9000 2076 6924 MP 10000 1456 8544 NC 6000 1517 4483 NW 8000 2014 5986 WC 1610 6390 NATIONAL 100000 19197 80803

Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown) Table 4: Number of Women Referred Prov. Target Actual Deviance EC 7500 2745 4755 FS 5500 2625 2875 GP 10 000 1283 8717 KZN 6500 440 6060 LP 4500 1034 4060 MP 5000 4560 NC 3000 281 2717 NW 4000 1182 2818 WC 1225 2775 NATIONAL 50 000 11276 -38724

Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown) Table 5: Number of People with Disability Referred Prov. Target Actual Deviance EC 152 7 145 FS 108 59 49 GP 200 211 +11 KZN 128 5 123 LP 92 1 -91 MP 100 4 96 NC 60 NW 80 11 69 WC 229 +149 NATIONAL 1000 527 473

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETS PROGRESS 9. Number of SMME managers assisted to manage matters related to intellectual property 3 000 2074 Managers trained 10. Number of jobs saved through social plan intervention 20 000 4 816 jobs saved 11. Percentage of total mandated Social Responsible Investment invested 70% of the mandated Social Responsibility Investment invested by March 2012 A R2 billion 5-year private placement bond was issued by the IDC, and in turn subscribed by the UIF.(Loaned to other entities for infrastructure projects and job creation initiatives In December 2011 the second and third bonds, amounting to an additional R1.5 billion were approved As at 31 December 2011, estimated jobs to be created will amount to 12,431 and an estimated 13,878 jobs to be saved. Number of companies and workers assisted through the Training Lay-off Scheme R 89 843 804.62 was paid out as at December 2011, benefitting 9119 workers in 46 companies The TLS guidelines have been revised in order to increase the uptake/participation of companies

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS TARGETS PROGRESS 11. Percentage of total mandated Social Responsible Investment invested (cont) The UIF signed funding agreements to the value of R75 million with R41.9 million paid in 2010/11 to the various training and Social Plan funding schemes based on their withdrawal conditions. 12. Approved policy and legal framework for Service Products factories SEF Legal status and business case finalised Legal provision for SEF establishment is contained in the ES Bill currently at NEDLAC. MoA signed with NT to appoint service provider to undertake SEF 2nd phase Business Case 13. Number of companies assisted to facilitate constructive dialogue between social partners, managers and workers, to improve productivity, per annum 120 companies 129 Companies assisted to facilitate constructive dialogue

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 2: Promote Equity in the Labour Market KEY PERFORMANCE INDICATORS TARGETS PROGRESS 1. Employment Equity Act (EEA) and its Regulations Amended . Amended EEA promulgated   Government proposals on the EEA theme have been submitted to Nedlac 2. Inspect JSE listed companies and ordinary designated employers to achieve 80% compliance with EE legislation 10 000 workplaces inspected JSE (60 ) Designated (140) Procedural (9 800) • 40 JSE companies • 124 Designated • 11 417 companies were inspected procedurally and 72% compliance level achieved. 3. Code of Good Practice and Technical Assistance guidelines on HIV and AIDS reviewed and Amended HIV and AIDS Code and Technical assistance Guidelines amended Task team involving the ILO met on 15 and 16 November 2011 to consider all comments received during the road shows. Changes and additions were effected and preparations were made to consult on the revised draft Code at NEDLAC. 4. Income Differentials assessed to determine race and gender disparities in salaries 60 Gathered information of 15 companies on Income Differential Assessment. Followed up with 15 companies to verify and gather additional information. Worked closely with Siemens to ensure that DG Review System is operational in order to avoid any further delays.

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 3: Protecting Vulnerable Workers KEY PERFORMANCE INDICATORS TARGETS PROGRESS 1. BCEA amended Amended BCEA promulgated Negotiations on theme 4 dealing with Compliance and enforcement has been concluded 2. Review existing sectoral determination Taxi, Contract Cleaning, Domestic, Farm and Forestry Research currently in progress in case of Taxi Contract Cleaning amendment notice published in Government Gazette Domestic worker amendment notice published in Government Gazette, Ministerial submission forwarded to Minister in case of Farming and Forestry 3. Civil society strengthened 8 Civil society organisations involved in the world of work funded The following Civil Society Organisations received their 2nd Tranches: DITSELA, Workers College Natal, SA Labour Bulletin and Sicelukukhanya Home Based Care(KZN) 4. Inspect 130 000 workplaces to achieve 80% compliance rate 130 000 inspections with 80% compliance rate 59 601 routine inspections were conducted and 74% compliance achieved. 5. Settle at least 70% of received labour related complaints within 14 days at Registration Services Settle 70% of received complaints within 14 days 98 910 labour related complaints were received and 79 440 (80%) settled within 14 days.

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown) Table 6: Number of Routine inspections conducted and compliance level thereof Prov.) Target Actual Deviance Number complied Compliance level (%) EC 14782 19186 -4404 16643 87 FS 14365 12677 1688 8751 69 GP 7123 7251 -128 5526 76 KZN 244 497 -253 241 48 LP 7793 4055 3738 3729 92 MP 4686 4932 -246 2647 54 NC 4572 4943 -371 4170 84 NW 1644 1992 -348 1578 79 WC 4986 5149 -163 4271 83 NATIONAL 52402 59601 46553 74%

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown) Table 7: Number JSE listed companies inspected Prov.) Target Actual Deviance EC  620  563  -57 FS  2  15  13 GP  1818  1714 - 104 KZN  549  754  205 LP  5  14  9 MP  180  171  114 NC  104  93  19 NW  707  464  -243 WC  393 296 -97 NATIONAL  4216 4084 -132

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown) Table 8: Complaints management Prov. Number received Number settled Settlement rate Money recovered EC 5775 4307 75 % R 2 877, 757.03 FS 7737 6684 88% R 1, 180, 867.47 GP 54038 45725 84% R 2 653, 204.90 KZN 4202 2677 64% R 747, 220.05 LP 4835 1129 24% R 366, 719.02 MP 10691 10279 96% R 114, 8287.42 NC 2492 1641 R 1 617, 468.27 NW 4047 3572 R 607 507.00 WC 5093 3426 67% R 315 054, 179.00 NATIONAL 98910 79440 80 326253210.20

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Provincial Breakdown) Table 9: JSE listed companies inspections Prov Target # comp reviewed # recomm made # Compl % compl   JSE DES GP 7 25 1 32 22 KZN 6 30 10 EC 23 5 20 14 100 70 WC 4 19 FS LP 11 13 29 NW 16 NC 12 9 MP 8 18 TOTAL 60 140 40 124 27 97 -

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 5: Strengthening Social Protection KEY PERFORMANCE INDICATORS TARGETS PROGRESS 1. Conduct inspections in the identified industries exposing workers to silica dust 200 workplaces inspected in order to reduce exposure by at least 2% Gauteng Province 96 inspections conducted (all in Gauteng) 2. Repealing the OHS Act OHS Bill Developed and enacted into law In Progress – Relevant Government Departments have been and are being consulted during past Q. To be submitted to Cabinet by August 2012. 3. Reduce incidents in the following high risk sectors by conducting audits, do blitzes and hold 1 seminar per year: - Iron and Steel, - Construction, - Chemical and - Agriculture/forestry) Establish a baseline by conducing at least: - 20 audits per sector - Blitz per sector - 1 seminar per year National Roving Team conducted 273 audits and 61 follow-ups

Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Breakdown per Sector per Province) Table 10: Blitz inspections Province Sector Inspections Conducted Complying % Complying FS Agriculture 289 242 84   Private Security 203 147 76 WC 144 124 86 NC 252 155 62 LP Domestic 805 363 45 Private security 154 67 44 GP 57 40 70 Chemical 28 8 29 KZN Construction 683 400 58 Hospitality 543 281 51 Sawmills 4 MP EC Security 621 320 52 Iron and Steel 88 13 15 NW Wholesale & retail 427 261 61 Food & beverages 149 72 48 315 228 Total 4762 2721 55

Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance – continues (Breakdown per Sector per Province) Table 11: Sector Audits Provinces Sector Audits conducted Complying % Complying LP Agriculture 7 2 29 FS   WC Iron & Steel 156 100 GP 3 NC KZN 5 4 EC 531 43 8 MP Chemical 6 Construction 1 NW TOTAL 719 201

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - continues OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH Strategic Objective 6: Promoting Sound Labour Relations KEY PERFORMANCE INDICATORS TARGETS PROGRESS 1. Extend collective agreements within 90 days 18 collective agreements published within 60 days of receipt 7 Collective Agreements were published • 2 were for renewal; and extension of period of operation. • 5 extension of collective agreements to non-parties. 2. Decision to register new labour organisations taken within 90 days 90 Dealt with 45 applications for registration of labour organisations   5 approved (4 trade unions & 1 employer’s org) 37 rejected 3 Cancelled

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - 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 INDICATORS TARGETS PROGRESS 1. Percentage of vacancy rate reduced with a specified period of time Vacancy rate reduced to below 8% by 31 March 2012 Vacancy rate as at 31 December 2011 was 7.17% 2. Percentage of women, youth and people with disability (PwD) employed in line with the EE Plan 34% women employed in Senior Management Service (SMS), 43% youth and 3% people with disability (PwD) employed in the Department by 31 March 2012 37.5% Women are employed in SMS as at 31 December 2011 39.8 % of Youth are employed as at 31 December 2011 2.6 % of People with Disabilities are employed as at 31 December 2011 3. % of customer complaints attended to within 14 days of Receipt 90% within 14 days   5334 calls received as at 31 December 2011. 5225 (97%) have been resolved.

3. Key Aspects of the DoL Strategic Plan 2011/12, Targets and Performance - 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 INDICATORS TARGETS PROGRESS 3. Number of service delivery points accessible in line with geographic norms and standards Develop geographic norms and standards as well as an implementation plan Database on the catchment areas, geographical distribution of the Economically Active Population and estimated traveling distances from individual household to DoL SERVICE DELIVERY POINTS E.G. LC points, is available. The information could, however, not be plotted on the map due to unavailability/lack of access to the GIS system. Submission prepared for external assistance. HSRC has been engaged. 4. Percentage of compliance to Service delivery norms and standards Service delivery norms reviewed by October 2011 Service Delivery norms reviewed by October 2011 and the Service Delivery Improvement Plan submitted to the DPSA in November 2011

4. Budget Allocations and Utilisation BUDGET ALLOCATED UTILISED % UTILISED

5. Key Aspects of Strategic Plan 2012/13 SERVICE DELIVERY OUTCOMES AND OUTPUTS THE DEPT STRATEGIC OBJECTIVES (KRAs) KEY PERFORMANCE INDICATORS Outcome 4: Decent employment through inclusive economic growth Outputs: 4.1 Making our growth more labour absorbing 4.2. Reducing youth unemployment 4.3. Raising our international Competitiveness 4.4. Analysing the cost structure of the SA economy 4.5. Reviewing support for small business 4.6. Expanding our Public Works Programme   KRA 1: Contribution to employment creation Number of job-seekers registered on the system assessed and profiled into different categories Number of job-seekers placed in opportunities Number of people from designated groups placed in training and income generating opportunities Youth, Women and PWD – 3% KRA 2: Promote equity in the labour market Employment Equity Act (EEA) and its regulations amended and monitor and evaluate the substantive progress of the implementation of the Act. KRA 3: Protecting vulnerable workers Percentage of workplaces inspected and audited (targeting vulnerable sectors - private security, agriculture, forestry, hospitality, and domestic workers) complying with labour legislation within 90 days of inspection KRA 5: Strengthening social protection Percentage reduction in noise induced hearing loss in the Iron and Steel Industry KRA 6: Promoting sound labour relations Collective agreements extended and labour organization applications and cancellations dealt with within 90 days of receipt of request

5. Key Aspects of Strategic Plan 2011/12 - continue SERVICE DELIVERY OUTCOMES AND OUTPUTS THE DEPT STRATEGIC OBJECTIVES (KRAs) KEY PERFORMANCE INDICATORS Outcome 11. Create a better South Africa and contribute to a better and safer Africa and World KRA 4: Strengthening multilateral and bilateral relations Ensure compliance with the ILO’s constitutional requirements in terms of Article 19 and 22 of the Constitution of the ILO 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 8: Monitoring the impact of legislation   KRA 9: Strengthening the institutional capacity of the Department  Fully functional Performance Management system implemented to comply 100% with prescripts Improve service quality and access: Reduction on waiting time at service points Improve turn-around time for services rendered Reduction in distances travelled to access service points Percentage of customer complaints successfully resolved within 14 days

6. Key Challenges and Remedial Actions KEY STRATEGIC OBJECTIVE REASON FOR MAJOR VARIANCE CORRECTIVE ACTION Contribute to employment creation Policy and Regulatory Gap - NEDLAC processes not yet finalised Inadequate human and IT Resources to register and profile job seekers Some work seekers not honouring appointments for assessment and profiling Insufficient education and skills levels of registered candidates to fill reported job opportunities Planned Social Plan projects started later than expected due to delays in finalized agreements Finalise ES Bill Resources capacity Improved IT systems Promote equity in the labour market Delays at NEDLAC to finalise the amendments to the HIV and AIDS Code and Technical Assistance Guidelines Insufficient information submitted by Companies and inability to gather electronic information on companies due to delays in delivering the DG Review System by the service provider Introduce and enforce legislations Protecting vulnerable workers Organisational capabilities/competences Capacitate resources

6. Key Challenges and Remedial Actions KEY STRATEGIC OBJECTIVE REASON FOR MAJOR VARIANCE CORRECTIVE ACTION Strengthening social protection Organisational capabilities/competences Capacitate resources and ensure improved planning Strengthening multilateral and bilateral relations External circumstances resulting in lack of commitments from other countries Continuous workshops and follow-ups Strengthening the institutional capacity of the Department Organisational capabilities/competences and infrastructure Capacity building

7. Expectations from the Select Committee Support the Department when tabling the budget vote. Support the Department on legislative amendments Support the Department in collaborative work with other Departments on a ‘committee-to-committee’.

Thank you