RESPONSES AND PROGRESS MADE IN ADDRESSING ISSUES RAISED BY FOREST COMMUNITIES INCLUDING INVESTIGATIONS INTO ALLEGATIONS OF ABUSE AND VICTIMISATION OF WORKERS AND TENANTS BY FORESTRY COMPANIES PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES 15 MAY 2018

ACRONYMS BCEA Basic Conditions of Employment Act DAFF Department of Agriculture, Forestry and Fisheries DOL Department of Labour DPE Department of Public Enterprises FCSA Financial Sector Conduct Authority FSA Forestry South Africa LRA Labour Relations Act MTO Mountain To Ocean NFA National Forests Act OHSA Occupational Health and Safety Act SARS South African Revenue Services UIF Unemployment Insurance Fund WCFSF Western Cape Forestry Sector Forum

PURPOSE AND INTRODUCTION The purpose of the presentation is to: Provide responses to issues raised by forest communities including investigations into allegations of abuse and victimisation of workers and tenants by forestry companies Most of the issues were raised in the two provinces of Western Cape and Mpumalanga

SUMMARISED ISSUES RAISED DURING EXTENDED PUBLIC HEARINGS ISSUE RAISED LEGISLATIVE CONTEXT Unfair labour practises such as : - very low wages compared to farm labourers (in banana plantations) whereas the labour is more intense in forestry; - unpaid leave during maternity and sick leaves; - few days of annual leave up to 15 at most; - long working hours; - non compensation for injury on duty; - unfair dismissal; - unavailability of protective clothing especially for wet conditions in farms Waterhoek, Doringlaagte and Wilgeboom Labour Relations Act No. 66 of 1995 (LRA) aims to promote economic development, social justice, labour peace and democracy in the workplace. In terms of section 185 of the LRA every employee has the right not to be unfairly dismissed; and subjected to unfair labour practice. This legislation together with the Forest Sector Code promotes fair labour practises in South Africa, section 7 of the Basic Conditions of Employment Act (BCEA) also regulates working time to ensure health and safety of employees. In the forestry sector, all companies are encouraged to be members of the Forestry South Africa (FSA) association, which further compels its members to practise fair labour.

SUMMARISED ISSUES RAISED DURING EXTENDED PUBLIC HEARINGS ISSUE RAISED LEGISLATIVE CONTEXT Poor working conditions such as : - sub-standard housing or residential compounds for employees. Indecent sanitation facilities and lack of transport by companies for access to health facilities and other social amenities; Basic Conditions of Employment Act no 75 of 1997, aims to regulate labour practices and to set out rights and duties of employees and employers by ensuring social justice by establishing the basic standards for employment with regard to working hours, leave, payment, dismissal and dispute resolution. Section 51 of the BCEA stipulates that the Minister of Labour may make a sectoral determination establishing basic conditions of employment for employees in a sector and area based on an investigation for matters such as housing and sanitation for employees who reside on their employers’ premises.

SUMMARISED ISSUES RAISED DURING EXTENDED PUBLIC HEARINGS ISSUE RAISED LEGISLATIVE CONTEXT Non compliance to labour related legislation such as : -paying the UIF. Section 5 of the Unemployment Insurance Contributions Act, No. 4 of 2002 compels employers to pay unemployment insurance contributions. Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African Revenue Services (SARS).

SUMMARISED ISSUES RAISED DURING EXTENDED PUBLIC HEARINGS ISSUE RAISED LEGISLATIVE CONTEXT Social matters affecting labourers such as : - family separations -Potential health hazards such as HIV infections, promoting child headed households and - exposure to crime and drug use. Section 8 of the Occupational Health and Safety Act No. 85 of 1993 (OHSA) stipulates that every employer shall provide and maintain, as far as is reasonably practicable, a working environment that is safe and without risk to the health of his employees.

SUMMARISED ISSUES RAISED DURING EXTENDED PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE General labour matters raised in relation to the forestry sector DAFF wrote a letter to the Minister of Labour requesting her intervention The Department of Labour (DOL) has since responded requesting detailed information regarding issues raised. The DOL has undertaken to conduct investigations with companies that have been identified The DOL will be invited to make a presentation at a later stage to the Portfolio Committee

SOLUTIONS AND ACTIONS In responding to the issues the Department took an initiative to involve other government departments and institutions such as the forest Sector Charter Council The Department of Labour will deal with labour related matters The Forest Sector Charter Council will make a presentation on transformation related-matters The Financial Sector Conduct Authority will be involved to address issues of workers outstanding pension pay-outs

SUMMARISED ISSUES RAISED DURING EXTENDED PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE General labour matters raised in relation to the forestry sector The DOL is in the process of visiting the affected companies During the visits they will conduct compliance audit It is estimated that the audits will be completed by end of the month of May 2018

SUMMARISED ISSUES RAISED DURING EXTENDED PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE General matters related to outstanding pensions for workers A task team comprising of DAFF, Department of Public Enterprises (DPE), SAFCOL, Western Cape Forestry Sector Forum (WCFSF) and MTO (Pty) Ltd, has been established to address the issues of outstanding pensions and shares for the workers especially in the Western Cape. The task team has since met and developed a work program which included roping in the resources and the expertise of the Financial Sector Conduct Authority (FSCA) in resolving the issue. Discussions are already ongoing on possibilities of conducting roadshows in the affected communities in the Western Cape

INTENDED IMPACT The Department of Labour and the FSCA are competent authorities to deal with labour related matters and issues of pensions respectively. Their involvement and their approaches will ensure that the problems identified are dealt with at the root cause and appropriate remedial action will then be recommended. Their interventions should be able to resolve the majority of issues identified. The involvement of the Department of Labour will result in a competent authority being involved in carrying out objective investigations against the companies on the alleged transgressions and non-compliance to labour laws of the country. Resolving these issues will result in a more harmonious working environment for the workers, an improvement in their well-being in general, thereby increasing productivity and sustaining the jobs and economic opportunities created by the sector.  

CONCLUSION The DAFF will ensure that its kept informed about the developments regarding the audits to be conducted by DOL A report will be compiled once the Department and FSCA have finalised engagements with affected communities