1 DEPARTMENT OF LABOUR Presentation to the Select Committee on Economic Business Development 2013/14 Annual Report Achievements and Challenges 18 NOVEMBER

2 Table of contents 1.Overview of DOL Programmes 2.DOL Programmes 2013 / 2014 Annual Performance achievements, challenges and proposed interventions 2.1Programme 2: Inspection and Enforcement 2.2Programme 3: Public Employment Services 2.3Programme 4: Labour Policy and Industrial Relations NB: Programme 1: Administration is excluded as it is operational 3.DOL Finances 2

3 Programme 2 :Inspections and Enforcement (IES) The purpose of IES is to examine how national labour standards are applied in the workplace through inspection and enforcement of labour legislation and to educate and advise social partners on labour market policies To realise decent work by regulating non- employment and employment conditions through inspections and enforcement in order to achieve compliance with all labour legislation 3

4 Programme 3:Public Employment Services (PES) Provides assistance to companies and workers to adjust to changing labour market conditions and to regulate private employment private employment agencies. 4

5 Programme 4:Labour Policy and Industrial Relations Facilitate the establishment of an equitable and sound labour relations environment and the promotion of South Africa’s interests in international labour matters through researching, analysing and evaluating labour policy and providing statistical data on the labour market, including providing support to the institutions that promote social dialogue.Facilitate the establishment of an equitable and sound labour relations environment and the promotion of South Africa’s interests in international labour matters through researching, analysing and evaluating labour policy and providing statistical data on the labour market, including providing support to the institutions that promote social dialogue. 5

Programme 2 Inspection and Enforcement Services / 2014 Annual Performance: major achievements, challenges and proposed interventions.

PROMOTE EQUITY Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. 435 (158 public and 277 private) employers were reviewed against the expected 340 Additional Companies were added to the original target necessitated by increased request for DG Review Shift focus to substantive compliance in order to increase our footprint and also to meet the demands of an amended EEA 7 Prov. Target (Public) Actual (Public) Var. Target (Private) Actual (Private) Var. EC FS GP KZN LP MP NC NW WC TOTAL

PROTECT VULNERABLE WORKERS Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister against a target of workplaces were inspected, and (75%) complied; and (25%) did not comply High demand and increased request for inspections resulted in the Branch conducting more inspections against the set target Improve the enforcement in respect of non-compliance 8 Prov.Target Actual inspected Actual complied % compliedNo. not complying EC %4624 FS %807 GP %4334 KZN %6862 LP %4438 MP %1841 NC %647 NW %2461 WC %5719 TOTAL %31733

PROBLEMATIC SECTORS Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of notices against a target of were issued ( 82%) and 295 cases were referred to court Delay of serving enforcement notices resulted in achieving 82% instead of 100% (Non availability of employers to accept the notice) Improve the enforcement in respect of non-compliance 9 Compliance Level No. not complying Notices issuedNo. of cases referred to court No. of written undertakings No. of Compliance orders TOTAL 75%

PROTECT VULNERABLE WORKERS Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. 66% ( of ) against a target of 75% complaints were resolved within 14 days of receipt at Registration Services Lack of relevant capacity by CSOs on labour legislation. Training of CSOs conducted. 10 Prov.TargetNo. receivedNo. resolved % resolved EC 75% % FS 75% % GP 75% % KZN 75% % LP 75% % MP 75% % NC 75% % NW 75% % WC 75% % TOTAL 75% %

STRENGTHEN SOCIAL PROTECTION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister (59% of the targeted ) workplaces were audited (74%) complied while (36%) did not comply The target set was too high versus the resource capacity available to do OHS inspections and audits Additional capacity established in provincial offices Targets revised in line with available capacity 11 Prov.Target Actual audited Actual complied % compliedNo. not complying EC %760 FS %255 GP %1475 KZN %3926 LP %490 MP %447 NC %124 NW %538 WC %978 TOTAL %8993

INSPECTION OUTCOMES The measure of an inspectors effective is the ability to use the legal instruments provided for in law A total of notices against a target of were issued ( 82%) and 295 cases were referred to court Very low number of compliance orders issued due to high rate at which undertakings have been honoured by the employers 97% of cases referred to labour court were ruled in favour of the Department 3% ruled against us due to defective compliance orders or not observing separation of duties as per the delegations 12

Programme 3: Public Employment Services / 2014 Annual Performance: major achievements, challenges and proposed interventions.

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. 84% work on the ES Bill was completed. Labour Portfolio Committee, concluded deliberations on the ES Bill. The National Assembly subsequently referred the Bill to the National Council of Provinces (NCOP) for endorsement. The Bill was sent to the President for signature in March Draft Regulations and Guidelines developed. Draft regulations were developed but could not be published before the ES Act was promulgated and ES Board established The ES Bill had to be processed through for approval by the President A total of 58 major campaigns and 801 local advocacy campaigns None 14

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of (124%) work seekers were registered on ESSA (122 %) work- seekers were registered on ESSA provincially against a target of (2%) workseekers were registered on-line. None 15 Prov.TargetNumber registeredVariance% Registered EC FS GP KZN LP MP NC NW WC On-Line NATIONAL

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. 41% ( of ) of work- seekers against a target of 50% were provided with employment counselling PES is under staffed at service delivery points -96 Employment Counsellors at 126 Labour Centres and 214 Employment Practitioners Insufficient financial resources for capacity building Request additional funding in order to appoint more Career counselors and Employment Services Practitioners 16 Prov.Number registeredTargetNumber counselled% counselledVariance EC % % FS % % GP % % KZN % % LP % % MP % % NC % % NW % % WC % % TOTAL % % -9%

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of (82%)work-seekers was placed in registered employment opportunities in Provinces against a target of Skills mismatch between registered work-seekers and registered opportunities (Supply and demand) Collaborate with other stakeholders including skills development institutions, in order to enhance employability of unskilled work-seekers 17 Prov.TargetActual placedVariance% Placed EC FS GP KZN LP MP NC NW WC TOTAL %

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of (130%) work-seekers was referred to registered employment opportunities in Provinces against a target of None 18 Prov.Target Actual referredVariance% Referred EC FS GP KZN LP MP NC NW WC TOTAL

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of work-seekers was referred to other services against a target of None 19 Prov.Target Actual referredVariance% Referred EC FS GP KZN LP MP NC NW WC TOTAL

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of employers registering vacancies on ESSA against a target of None 20 Prov.Target Actual registeredVariance% Registered EC FS GP KZN LP MP NC NW WC TOTAL %

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of 309 Private Employment Agencies were registered against a target of 500. Non compliance by Private Employment Agencies(PEAs) and Temporary Employment Services (TES) due to absence of regulatory framework Finalization of the ES Regulations 21 Prov.Target Actual registeredVariance% Registered EC FS GP KZN LP MP NC NW WC TOTAL

CONTRIBUTE TO EMPLOYMENT CREATION Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. A total of 193 migrant work permits applications were received, 86% were processed within 30 days and 14% finalised in 60 days. Incomplete applications received No incomplete applications will be included in the reporting. 7 MOAs concluded by June performance reports submitted and financial transfers to the amount of R were paid. None MOA concluded. Performance report submitted and financial transfers were effected to the amount of R R None MOA concluded, all quarterly reports received. Financial transfers effected to value of R None 100% claims received were settled within 30 days and amount paid out was R None 22

Programme 4 Labour Policy and Industrial Relations / 2014 Annual Performance: major achievements, challenges and proposed interventions.

EMPLOYMENT EQUITY Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. Employment Equity Amendment Act, 2013 assented into law on 14 January 2014 Delays in the signing-off of the EE Amendment Act into law. Finalise NEDLAC deliberations on EE regulations to ensure promulgation of the EE Amendment Act in Q2 of 2014/2015. Amended Employment Equity Regulations published for public comment on 28 February 2014 and tabled at NEDLAC for social partner deliberations Delays in sourcing of Public comments and commencement of NEDLAC as a result of the delays in the signing-off of the EE Amendment Act into law. Active participation by the Department in NEDLAC deliberations to finalise NEDLAC Report and publish regulations in Q2 of 2014/2015. Annual Employment Equity Report developed by March EE System challenges in relation to the Statistical reports required for data analysis for the Annual report. Department to source IT expertise, especially for System developers. 30 Income Differentials assessed to determine race and gender disparities in salaries -- 24

EMPLOYMENT STANDARDS Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. Hospitality sectoral determination reviewed and published None Taxi sectoral determination reviewed and published None New Sectoral determination investigated (Funeral Undertaking sector) completed and report compiled. Promulgation delayed due to ECC requesting further information on the sector. Department will engage parties in the sector to provide more information One Child Labour Programme of Action implemented in line with the 5-year plan on 1 August 2013 None 25

INTERNATIONAL RELATIONS Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. Review signed MoUs with Lesotho, China and Namibia finalised Lack of Commitment from Algerian counterparts to confirm dates of signing Raise the issue with Algeria through Diplomatic Channels South Africa's position on issues for discussions in the SADC and AULSAC developed and report produced None Briefing Notes on issues for Discussions at the G20 meeting developed and report produced None Develop briefing documents for ARLAC Governing Council None Five reports on ratified conventions (Article 22) submitted to the ILO. None Successful participation of the South African tripartite delegation to the 102 nd Session of the International Labour Conference. Briefing documents and statements developed. “No show” by Social partners in Geneva which has cost implications for the Department. Minister endorsed that Department should claim back money from social partners in terms of accommodation and subsistence allowances. A letter was sent to NEDLAC in this regard. 10 January

COLLECTIVE BARGAINING Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. LRA Amendments passed by National Assembly Timely implementation of LRA amendments Promulgation of LRA amendments targeted for 1 January 2015 Ministerial support for awareness raising around amendments once promulgated. 17 Collective agreements extended within 60 days million employees covered by extended agreements in the private sector Legal challenges to extension of collective agreements (eg. Free Market Foundation challenge Support for centralised collective bargaining as envisaged in LRA. 146 applications for registration by labour organisations processed. Ensuring all applications are processed within 90 days. Monitoring of processing of labour organisation applications. 27

LABOUR MARKET INFORMATION SYSTEMS Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. Four annual labour market trend reports produced and published. These include: Industrial Action, Annual Labour Market Bulletin, Annual administrative Statistics and Job Opportunity and Unemployment in the SA Labour Market None Fieldwork on the Client Satisfaction survey 2014 conducted and finalised by end of September 2013 None Two briefing reports submitted to the Minister on Labour Force Survey and Unemployment insurance data analysis (January- March and April-June 2014) None 28

RESEARCH POLICY AND PLANNING Main AchievementsChallengesProposed Interventions from the Department/ Deputy Minister and or Minister. Three research studies, Effectiveness of Bargaining Council’s Exemption process Reduction of working hours to a 40 hour week and Assessing public knowledge levels about the services of DoL were approved to be conducted, literature review completed on all and data collection started. Data collection on these research studies, especially on those involving Bargaining Councils did not move as planned and delayed research progress. DoL stakeholders identified as research respondents should be encouraged by senior management to respond to questionnaires and incentives can be issues for those who honour the research. 29

ICT Achievements, Challenges and Proposed interventions: 2013/14 30 ICT Main Achievements Successfully transferred ICT resources from EOH to DOL through S197 IT service gaps identified and mitigated through SITA contracts Setup ICT governance structures Appointed SAP service provider (3 year contract), resuming 1 Oct 2014 Implementation of Interim storage solution Challenges Finalisation of ICT structure Non resolution of long outstanding ICT grievances Filling of vacant positions (System developers, engineers, etc) No Business Continuity Plan (BCP) a foundation of Disaster Recovery Plan(DRP) EOH Outstanding deliverables Proposed Interventions Finalisation of ICT structure Filling of ICT vacant positions

Thank You… 31