Millineum Development Goals: Progress Report February Portfolio Committee on Labour 8 February 2012 Portfolio Committee on Labour 8 February 2012 Millennium Development Goals Progress Report February 2012 Millennium Development Goals Progress Report February 2012 Overall Responsibility: Director General: NPT Nhleko Overall Responsibility: Director General: NPT Nhleko

Millineum Development Goals: Progress Report February Millennium Development Goals (MDG) MDG’s relevant to DOLs Programmes:  MDG 1: Eradicate extreme poverty and hunger  MDG 2: Achieve universal primary education  MDG 3: Promote gender and equality and empower women  MDG 4: Reduce child mortality  MDG 5: Improve maternal health  MDG 6: Combat HIV/AIDS, malaria, and other diseases  MDG 7: Ensure environmental sustainability  MDG 8: Develop global partnership for development

Millineum Development Goals: Progress Report February DoL Key Result Areas (KRA) The Strategic Plan (2011–2016) Key Result Areas (KRA’s): KRA 1: Contribution to Employment Creation KRA 2: Promote Equity in the Labour Market KRA 3: Protecting Vulnerable Workers KRA 4: Strengthening Multilateral and Bilateral Relations KRA 5: Strengthening Social Protection KRA 6: Promoting Sound Labour Relations 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

Millineum Development Goals: Progress Report February Millennium Development Goals (MDG) and DoL Key Result Areas  MDG 1: Eradicate extreme poverty and hunger  Target 1.1: Halve the proportion of people whose income is less than 1$ per day.  Target 1.2: Achieve full and productive employment and decent work for all.  Contribution by DoL to the MDG Targets KRA 1: Contribution to Employment Creation KRA 3: Protecting Vulnerable Workers KRA 5: Strengthening Social Protection KRA 6: Promoting Sound Labour Relations

Millineum Development Goals: Progress Report February Millennium Development Goals (MDG) and DoL Key Result Areas  MDG 3: Promote gender and equality and empower women KRA 2: Promote Equity in the Labour Market  MDG 6: Combat HIV/AIDS, malaria, and other diseases  MDG 8: Develop global partnership for development  Target 13: Address the special needs of the least developed countries.  Target 16: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth.  Contribution by DoL to the MDG Targets KRA 4: Strengthening multilateral and bilateral relations

Millineum Development Goals: Progress Report February MDG Country report  South Africa is expected to report on the progress towards attaining the MDGs as agreed by heads of states and adopted in the Millennium Declaration during the United Nations General Assembly in Sep  Statistics SA is an organ of state for official statistics that has been tasked with the coordination for drafting the report for the country.  The Millennium Development Goals country report has been released and the Minister in the Presidency-National Planning Commission made presentation to the legislatures in March  DoL representative was assigned to the group which dealt with the Poverty and Hunger indicators – MDG 1: Eradicate extreme poverty and hunger.

Millineum Development Goals: Progress Report February MDG Country report  Apart from participating in the sectoral working groups, government departments are expected to provide statistics at their disposal relevant to the MDG indicators including a certification of its credibility.  MDG1 indicators were available from Statistics SA and the Social Services Department, e.g. - Proportion of population below $1 per day, poverty gap ratio. - Share of poorest quintile in national consumption. - Growth rate of GDP per person employed. - Employment to population ratio. - Proportion of employed people living below $1 per day. - Proportion of own account and contributing family workers in total employment. - Prevalence of underweight children under five years of age. - Proportion of population below minimum level of dietary energy consumption.

Millineum Development Goals: Progress Report February Facts and figures Goal 1 and indicators 1994 baseline (or closest year) Current status 2010 (or nearest year 2015 target Target achievability Indicator type Proportion of population below $1 (PPP) per day 11.3 (2000)5 (2006)5.7AchievedMDG Poverty gap ratio ($1 (PPP) per day) 3.2 (2000)1.1 (2006)1.6AchievedMDG Poverty gap ratio ($1.25 (PPP) per day) 5.4 (2000)2.3 (2006)2.7AchievedDOMESTIC

Millineum Development Goals: Progress Report February MDG Country report 2011 Programme 2: Inspection and Enforcement Services (IES)

Millineum Development Goals: Progress Report February MDG Country report MDG 3: Promote gender and equality and empower women  KRA 3: Promoting equity in the labour market  The IES Branch has implemented Employment Equity Act since its promulgation  Labour Inspectors are inspecting workplaces for procedural compliance  Cases of alleged unfair discrimination have been referred to the CCMA  In the past few years designated employers have been subjected to a DG Review process for substantive compliance to Employment Equity legislation  The reports show very little progress made to achieve equity in the workplace

Millineum Development Goals: Progress Report February MDG Country report MDG 3: Promote gender and equality and empower women  KRA 3: Promoting equity in the labour market  Technical Assistance Guidelines have been developed to assist in the implementation of the Act.  Employment Equity Road Shows have been conducted to create awareness and assist employers in reporting.  An Employment Equity system has been developed and employers can also submit their reports online.

Millineum Development Goals: Progress Report February MDG Country report MDG 1: Eradicate extreme poverty and hunger  KRA 4: Protection of vulnerable workers  Workers in specific sectors (Agriculture and domestic )of the Labour Market have been identified as vulnerable workers to which we focus our interventions.  Sectoral Determinations, which set minimum employment conditions and wages in these sectors have been promulgated for implementation.  Labour Inspectors are responsible for inspections and enforcing compliance to these determinations  In the past three years the department identified high risk and problematic sectors for blitz inspections.  Specific programs are also piloted and implemented to increase awareness on health and safety in these sectors.

Millineum Development Goals: Progress Report February MDG Country report MDG 7: Ensure environmental stability  KRA 5: Strengthen Social Protection  The occupational Health and Safety regulations are promulgated and implemented in line with the OHS Act.  The Department works jointly with other government departments, Environmental Affairs, Mineral Resources etc. to ensure protection of the environment and workers.  Participation in technical committees and committees of experts both regionally and internationally to ensure regulation and environmental sustainability.

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 Programme 3: Public Employment Services (PES)

Millineum Development Goals: Progress Report February The purpose of PES is to be achieved by :  Promoting employment of citizens.  Improving access to the Labour market for work seekers.  Providing opportunities for new entrants to the labour market to gain work experience.  Improving employment prospects of persons with disabilities.  Improving employment prospects of work seekers & employees facing retrenchment.  Facilitating access by work seekers to training.  Providing a regulatory framework for the operation of PEAs, registration of vacancies, employment of qualifying foreign workers and other related matters.  Promoting employment growth & workplace productivity. MDG - DoL report - Feb 2012

Millineum Development Goals: Progress Report February MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation Target 1: Halve between 1090 and 2015 the proportion of people whose income is less than US$1 per day Target 2: Halve between 1990 and 2015 the proportion of people who suffer from Hunger MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market  Employment Services Bill was developed and will soon be approved for public comments and is currently at NEDLAC MDG - DoL report - Feb 2012

Millineum Development Goals: Progress Report February MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation  Jobseekers registered and placed in opportunities: 2010/112011/12 Jobseekers reported for registration in different categories Jobseekers registered Jobseekers referred/placed Jobseekers assessed and placed MDG - DoL report - Feb 2012

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation  Employer Services provided 2010/112011/12 No of companies registering opportunities on ESSA No of PEAs registered No of opportunities registered No of opportunities filled Application for Corporate and general work permits received 161 – approved refused – approved 38 - refused 41 No of companies assisted through DoL/DHET training lay-off scheme 19 companies workers 14 companies 1344 workers

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation  Products and services of assisted companies world class and competitive and jobs saved in distressed companies 2010/112011/12 No of companies assisted through workplace challenge programme No of companies assisted with turnaround No of SMME managers trained No of jobs saved

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market  33 companies were assisted through the DoL/DHET training lay-off scheme:

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 Programme 4: Labour Policy and Industrial Relations (LP & IR)

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 1: Eradicate extreme poverty and hunger Target: To halve the portion of proportion of people whose income is less than 1 US Dollar per day:  KRA 1: Contribution to Employment Creation South Africa increased the real wages of workers covered by sectoral determinations during the 2001 to 2011 period, particularly the wages of Domestic and Farm workers. Employment in sectors covered by minimum wage legislation also grew significantly over this period, at around 2.9 percent per annum, whilst output grew by 4.6 percent. Overall, employment in South Africa of workers covered by minimum wage legislation grew at a rate of 2.9 percent per annum from nearly 3.5 million in 2001 to just over 4 million in 2007.

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 Proportion of households by poverty status and sectoral determination of household Sectors Ultra poorPoorNon poorUltra poor PoorNon poor Total Retail 12.6%24.8%66.1%11.2%24.8%63.9%100% Domestic 45.3%28.9%22.5%36.6%28.9%34.6%100% Farm 45.0%44.1%14.8%34.8%44.1%21.0%100% Forestry 36.7%41.6%29.5%32.5%41.6%25.9%100% Taxi 12.1%28.0%49.7%26.7%28.0%45.3%100% Security 11.6%33.0%64.5%14.7%33.0%52.3%100% Hospitality 19.0%28.8%57.9%18.2%28.8%53.0%100% Contract cleaning 15.4%28.7%55.6%24.3%28.7%47.0%100% Civil engineering 1.5%0.0%94.7%3.1%0.0%96.9%100% Total (all workers covered) 33.3%32.3%34.4%30.2%33.0%36.8%100%

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 1: Eradicate extreme poverty and hunger (cont…)  KRA 1: Contribution to Employment Creation  The Labour Relations Act allows the Minister of Labour to extend collective agreements concluded by bargaining councils to non-parties.  By extending collective agreements to non-parties, it covers vulnerable workers who normally would have been excluded by these wage increases and social security benefits like pension funds and medical aid schemes.  Over a period of approximately 10 years average wage settlement rate in South Africa was around 8%.  The wage settlement rate was more than the average inflation rate of 6%.

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 1: Eradicate extreme poverty and hunger (Cont…)  KRA 1: Contribution to Employment Creation  The most recent average wage settlement rate in bargaining councils with published collective agreements indicates the following: Ave Weekly WagesAve % increase - Skilled workers: R % - Semi skilled workers: R % - Unskilled workers: R %  The lowest wage income of unskilled worker in South Africa compared to US$1 per day was US$ 9 per day. This indicates that the lowest wage income for the lowest paid worker in the bargaining council system across all sectors is above the US$1 per day.

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market  To create a conducive working environment for women participation and empowerment, the following legislation has been implemented:  Employment Equity Act, 1998, Regulations, Codes of Good Practice and Technical Assistance Guidelines that promotes equity in workplaces by:- - promoting equal opportunities and fair treatment in employment through elimination of unfair discrimination; and - implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups (i.e. black people, women and people with disabilities) tonsure their equitable representation in workplaces.

Millineum Development Goals: Progress Report February MDG - DoL report - Feb 2012 MDG 3 : Promote gender equality and empower women (Cont…) KRA 2: Promote Equity in the Labour Market   There has been progress in terms of representation of women in positions with decision making powers as follows:  Top management level- women constituted 18.2% in 2008 and 19.0% in 2011 of all positions at this level.  Senior Management level – women constituted 28.3% in 2008 and 29.3% in 2011 of all positions at this level.  Professionally qualified level – women constituted approximately 40% of all incumbents at the professionally qualified level in 2011 which serves as a feeder to senior and top management levels.

Millineum Development Goals: Progress Report February Millineum Development Goals: Progress Report February Progress on the PCL Recommendations   Concerns Raised by the Committee:  Regarding South African companies preferring foreign workers over nationals: The department has conducted an investigation into the driving force and extent of migrants in towns closer to the borders. Currently the investigation was done in Musina and this will be followed by extensive research in order to get a better understanding of the rational behind the choice of the companies.  Regarding wage gaps: Minimum wage policy was developed and implemented, however research (Bhorat 2000) research reveal that this cannot be a panacea to poverty alleviation.

Millineum Development Goals: Progress Report February Millineum Development Goals: Progress Report February Progress on the PCL Recommendations (cont.) Responses to recommendations Responses to recommendations  MDG 1: Eradicating extreme poverty DoL is currently looking at the possibility of extending social protection to categories of workers who are currently not covered by Unemployment Insurance. e.g Public Servants, Youth registered for leanerships, etc DoL is considering measures to ensure that vulnerable workers are covered as beneficiaries of the Compensation Fund  MDG 3: Promote gender equality and empower women: It was found that the enforcement and compliance mechanism in EEA made it easy for employers to circumvent certain provision of the legislation during implementation. As a result the act is now currently in the process of being amended in order to strengthen the enforcement and compliance provisions. This will assist in developing regulations that will advance the course of women. In addition, the entrenchment of equal pay of equal value “is now being entrenched in the EE Act through the amendment process in order to counter any disparities in remuneration based on gender or race.

Millineum Development Goals: Progress Report February Millineum Development Goals: Progress Report February Progress on the PCL Recommendations (ends.)  Responses to recommendations  MDG 6: Combat HIV/AIDS The ILO adopted the Recommendation on HIV/AIDS in June DoL acted immediately to bring its code of good practice on key aspects of HIV/AIDS in the workplace into line with each provision of the recommendations. The process is due to be completed at the end of March 2012 and will be supplemented by reviewing the Technical Assistance Guide line which is currently in operation.  MDG 7: Develop global partnership for development South Africa strengthens partnership with SADC through various ways which include being a members of the SADC ELS committee that deals with regional employment and labour issues. Several memorandum had been entered into with countries within the SADC region to ensure advanced socio-economic relations.

Millineum Development Goals: Progress Report February Thank you