Sheltered Employment Factories Parliamentary Committee Meeting on Labour 26 January 2011 Sheltered Employment Factories

SEF HISTORY Created in 1943 to rehabilitate war veterans Based on a social welfare model under the auspices of Social Welfare and DoL 12 Factories in 7 of 9 provinces Non profitable concern – preferential procurement from government Able to facilitate the recruitment of 3000 disabled employees Employees from a pool of disabling ailments: mental/physical/visual/auditory and medical conditions SEF was managed by DoL LMP. SEF mainly non compliant to most legislatures to the extend that SEF got left behind SEF Leadership uncertainties during the last 5 years. Outdated practises and products – general uncertain future

CURRENT STATUS SEF under DoL – PES CEO and CFO appointed through DoL General management lead by CEO/CFO and SEF established MANCO. Has a total of only 976 disabled employees and 114 administrative and technical personnel No preferential procurement from government Budgetary constraints 12 factories in 7 of 9 provinces No legal status – business case to be finalised Labour issues relating to salaries and wages – to be addressed by completion of Business Case. Policies and Procedures put in place. SEF Strategic Plans drafted to address all Divisions and future operations Modern systems and competitive products and capabilities

MAJOR ACHIEVEMENTS Appointment of CEO and CFO Establishment of SEF MANCO SEF Strategic Plans drafted Approval of Policies and Procedures Appointment of Factory Managers Bargaining Council Agreement with Unions Business Partnerships with major private concerns: Wheterlys Continued delivery despite financial constraints and labour shortages A changed and more representative labour force in terms of AA and EE High level of health and safety compliance Open days at Pretoria and Johannesburg factories – former Minister of Labour Advertising campaign and professional product catalogues and show rooms Attendance at International Congress of ILO in Italy on Disability issues

SEF MAJOR CONSTRAINTS Lack of legal identity Funding – Operating shortfall Shortage of Staff Non contribution towards NSF – low skills and training levels Income generation – SEF as preferred supplier to government Long overdue Debtor income Government support and understanding

SEF FUTURE AND OBJECTIVES Employment of at least 3000 disabled people Compliance in terms of representation and equal opportunity Financial health and legal status Government support Market related salary and wages Expanding to Mpumalanga and Limpopo To be leading authority in terms of recruitment of disabled people in SA and international

BENEFITS OF GOVERNMENT INVOLVEMENT Completion of Business Case Financial and Operational Health Increased income – preferred supplier Recruitment of PwD – economic and social upliftment Debtor collection – legal actions Skills and Training Labour Relations – meeting salary and wage expectations Able to compete with private sector to gain market share Become leading authority on recruitment of PwD and compliance to ILO standards on disability issues

THANK YOU