1. Presentation to the Portfolio Committee on Labour
07 September 2010
Annual Report: 2009/10
Overall Responsibility
Acting Director General: Sam Morotoba

2. Programmes / Branches of the DoL 2009/10 2
Programme 1: Administration
Communication
Financial Management
Human Resources Management
Information Technology
Internal Audit
Risk Management
Security Services
Programme 2: Service Delivery (SD)
Programme 3: Employment and Skills Development Services /
Human Resources Development (ESDS)
Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)
Programme 5: Social Insurance
Unemployment Insurance Fund (UIF)
Compensation Fund (CF)

3. DoL KEY RESULT AREAS
The Ministerial Programme of Action (2004 – 2009) consists of the following
Strategic Objectives or Key Result Areas (KRA’s):
KRA 1: Contribution to Employment Creation
KRA 2: Enhancing Skills Development
KRA 3: Promote Equity in the Labour Market
KRA 4: Protecting Vulnerable Workers
KRA 5: Strengthening Multilateral and Bilateral Relations
KRA 6: Strengthening Social Protection
KRA 7: Promoting Sound Labour Relations
KRA 8: Strengthening the Capacity of Labour Market Institutions
KRA 9: Monitoring the Impact of Legislation
KRA 10: Strengthening the Institutional Capacity of the Department

4. Programme 1: Administration Acting DDG: Corporate Services4
Programme 1: Administration
Acting DDG: Corporate Services
ADV :N PHASHA

5. Programme 1: Administration 5 Measurable Objectives:
Purpose: Provide for the overall management of the department and for strategic support and advisory services.
Measurable Objectives:
Communication creates awareness about available services in DoL.
Financial Management, Enhance Assets and office administration and
supply chain management.
Human Resources Management ensures effective and efficient
utilisation of human capital and renders legal services to the department.
Information Technology through the PPP with Siemens caters for the full
spectrum of IT needs and requirements of the DoL.

6. Programme 1: Administration 6 Measurable Objectives: (Continued)
Purpose: Provide for the overall management of the department and for strategic support and advisory services.
Measurable Objectives: (Continued)
Internal Audit provides management and the Audit committee with
independent objective assurance that improves effectiveness of
governance, risk management and control processes
Risk Management pro-actively manages / addresses risks that have a
negative impact on the DoL’ s performance
Security Services renders security support aimed at protecting DoL
information, staff and assets

7. Communication 7 Progress Media Liaison
Directorate initiated the media profiling for both the Ministerial events and departmental programmes. Media alerts, media statements and media briefing were utilised to communicate various messages on the offerings of the Department.
Marketing and Advertising
The period under review was marked by the implementation of 11 advertising campaigns including :
Employment Equity ( EE) Road-shows awareness campaigns.
EE On-line reporting deadline
Worker’s rights and Inspection and Enforcement Services campaign.
World Day for Safety and Health Campaign
Sheltered Employment Factories Awareness
Child Labour – Children Working in Hazardous Conditions.
Media Production
A total of publications of different titles were distributed at various departmental events, provincial offices, and labour centres.

8. Progress Legal services 8
Litigation- 147 cases handled and court processes are running.
Debts debt collection cases were handed to State Attorneys for recovery.
Contracts - 91 contracts finalised.
Legal Opinions- 49 opinions finalised.

9. Human Resource Management 9
Progress
Employment Equity
The department has exceeded the national target of 2% for people with disability. Currently has employed 2.6%.
The Senior Management Services ( SMS levels 13-16) level is dominated by males (67.9%). However, in 2009/10 period there has been slight progress from 31% in 2008/9 to 32.1%. This represent an increase of 1.1% on female representation.
Overall, males are under-represented in lower levels 1-12 whilst females are over-represented in the same levels.

10. Human Resource Management 10
Progress
Establishment
The vacancy rate has been reduced by 3.4% from 17.2% in 2008/9 to 13.8% in 2009/10. As at end of Aug 2010, the vacancy rate stood at 11%. During the 2009/10 period, the establishment grew by 4.7% in comparison to the 2008/9 year.
In April 2010, the department has achieved the smooth transfer of Skills Development staff to Department of Higher Education & Training (DHET) in line with National Macro Organisation of State (NMOS).
Challenges
Pre-employment screening and verification of qualification by SAQA.
Organisation structure not adequately funded and does not support the business of the organisation.

11. The Risk Management Unit was established in 2009/10 financial year
Progress
The Risk Management Unit was established in 2009/10 financial year
The department developed, reviewed and approved the Risk Management Strategy, Risk Policy and Fraud Prevention Plan and in the process of implementation.

12. Internal Audit 12 Progress
30 audits were planned and 27 (90% ) were finalised and reports issued.
3 (10%) draft reports issued/outstanding audits.

13. Progress Security Services 13
1. Security strategy as well as security awareness program were implemented in 7 offices:
Eastern Cape/ North West / Gauteng South / KZN / Mpumalanga/ Unemployment Insurance Fund and Head Office
2. Security gave support to Ministerial izimbizos at :
World OHS day in Bloemfontein
Worcester, De Doorns, Ashton, Robertson, Swellendam and;
Zimbabwean Ministerial delegation
Challenges
The Vetting Unit could not be established due to none allocation by National Treasury.

14. Programme 2: Service Delivery14
Programme 2: Service Delivery
DDG: Service Delivery
Ms S Zondeki

15. evaluation and inspections Measurable Objectives:
Programme 2: Service Delivery
PROGRAMME PURPOSE: Ensure implementation of and compliance with department of labour policies and programmes through monitoring,
evaluation and inspections
ENE 2008/ /11
Measurable Objectives:
6 500 Jobs registered on the Employment Services Database.
65% (4 225) of registered work seekers placed in permanent employment (jobs registered).
2 000 of Occupational health and safety incidents investigated.
2% decrease in workplace related injuries, diseases and deaths.
75% compliance with legislation by inspected workplaces.
80% of labour complaints settled within 90 days

16. KRA 1. Contribute to employment creation 16
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Increase the percentage of work-seekers placed in employment to 70% of registered opportunities per year, using the employment services database
65%
41% (20003) registered jobseekers placed against registered opportunities
Registered jobseekers increased from in 2008/9 to in 2009/10
Registered opportunities increased from in 2008/9 to in 2009/10

17. KRA 3: Promote Equity in the Work Place 17
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Implement and enforce EEA and SD Acts and related AA Measures
Ensure that companies requesting foreign labour (international labour migration) through the Department of Labour from April 2009 implement and are 60% compliant with their EE and Work Place Skills Plans by 2011/12.
Provincial database collection template developed
1 783 companies applied for foreign labour in 2008/09 are listed on the database and provided to Provinces
528 companies were added resulting in companies on the database.
195 were inspected, with 126 and 84 found to have measures to comply with EEA and WSP respectively.

18. KRA 3: Promote Equity in the Work Place 18
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Implement and enforce EEA and SD Acts and related AA Measures
At least of EE designated employers on the Provincial EE Database are targeted and inspected to achieve at least 75% procedural compliance within 90 days of inspection
Procedural Compliance by designated employers improved to 85% compared to 83% in 2008/09 against a target of 75%.
9 539 (85%) of the EE designated employers targeted for procedural compliance
complied

19. EE designated employers 19
 PO
No. on database as at 31 March 2009
Target
No inspected
No. of companies with measures to comply at least 75 % procedurally within 90 days.
% complying EC
305
1200
204
67% FS
1000
800
1683
1538
91% GN
1260
1495
1162
78% GS
1160
1500
1291
86%
KZN
2433
1800
3020
2668
88% LP
801
616
550
89% MP
900
802
691 NC
747
400
509
391
77% NW
666
700
436
395 WC
1100
815
649
79%
TOTAL
10372
10000
11181
9539
85%

20. KRA 4: Protection of Vulnerable Workers 20
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Ensure decent work by
implementing and
enforcing compliance
with all labour legislation
Advocate and enforce
compliance with the
health and safety
legislation to reduce
incidents in the high risk
industries by 2%
75% inspected workplaces compliance
80% labour complaints settlement
2% reduction of incidents in the high risk industries
80% ( of the ) of the inspected workplaces complied
82% ( of ) complaints were settled.
Labour complaints received decreased from in 2008/09
Reported OHS incidents decreased by 34% (1 798) from in 2008/9 to /10
3 528 OHS incidents registered and (54%) were investigated and 1 574(45%) finalised; compared 56% investigated and finalised in 2008/9.

21. KRA 4 : Protect Vulnerable Workers Workplaces 21 compliancePO
Total number of inspectors
Target inspections
No. of workplaces inspected
No. of workplaces complying within 90 days
% compliance within 90 days EC 75
13680
14177
10633
75% FS 60
10800
11771
10717
91% GN 68
12240
17679
13532
77% GS
116
20880
27713
20988
76%
KZN
120
23426
22461
19004
82% LP 76
10125
10102
7114
70% MP 57
10260
10298
9400 NC 36
6143
6746
5456
81% NW 53
9540
10175
8567
84% WC 94
15582
16434
12658
TOTAL
755
132676
147556
118069
80%

22. KRA 4 : Protect Vulnerable Workers Complaints 22PO
Total number of complaints received by CSOs and inspectors, excluding those referred for investigation
Total number of complaints investigated
Total number of complaints settled within 90 days by both CSOs and inspectors % EC
8341
6382
77% FS
11294
10646
9696
86% GN
30317
25374
24393
80% GS
62663
55349
48566
78%
KZN
19895
13555
19049
96% LP
14601
1929
13068
90% MP
16146
2195
13229
82% NC
2388
2341
2021 NW
4677
5282
4400
94% WC
14267
11360
10027
88%
TOTAL
184589
136372
150831

23. SDFW-SCM process very lengthy.
Key Challenges
Lack of case management system; and
Lack of competence in OHS and capacity to investigate incidents.
System readiness (enhancements) and inadequate human resources necessitated a hybrid implementation, both manual and electronic.
SDFW-SCM process very lengthy.
Signing of contracts stopped with effect of 1November 2009 due to transfer of skills development functions to DHET.

24. Corrective Measures
IES case management System is being developed to improve data and information management targeting finalisation in 2010.
Roving team of inspectors established and Capacity development programme implemented.
Resource the Labour Centres adequately (human and infrastructure/financial). Service provider to be monitored to deliver a more efficient system and Labour Centre to be resourced appropriately (human & infrastructure).
ES System is being enhanced for readiness to facilitate electronic data capturing and processing.

25. KRA 6: Strengthening social protection (10%) 25
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
70% of UI claims finalised within five (5) weeks
51.5% of UI claims finalised within five (5) weeks

26. KRA 6: Strengthening social protection (10%) 26PO
UI Claims received
UI claims approved
UI Claims finalised within 5 weeks
% UI Claims finalised within 5 weeks EC
71269
69964
14822
20.8 FS
37586
36441
21537
57.3 GN
58115
56794
43564
75.0 GS
171660
166179
69329
40.4
KZN
145484
143941
96717
66.5 LP
48349
44773
22908
47.4 MP
63891
58880
51268
80.2 NC
20458
20176
11205
54.8 NW
37534
37357
26522
70.7 WC
139116
135702
50393
36.2
TOTAL
793462
770207
408265
51.5

27. Programme 3: Employment and Skills Development Services and 27
Programme 3: Employment and Skills Development Services
and
Human Resources Development (ESDS)
DDG: S Morotoba

28. Measurable Objectives:
Programme 3: Employment and Skills Development
Services / Human Resources Development (ESDS)
PROGRAMME PURPOSE: Contribute to employment creation and skills development by promoting and monitoring the achievement of the objectives
of the National Skills Development Strategy (NSDS) and the
National Human Resource Development Strategy
ENE 2009/10
Measurable Objectives:
Reduce unemployment by developing the skills of unemployed work
seekers and placing 70% in employment by 2010.

29. Measurable Objectives: (Continued)
Programme 3: Employment and Skills Development Services / Human Resources Development (ESDS)
Measurable Objectives: (Continued)
Enable growth, productivity and sustainability by supporting the National
Skills Fund and Sector Education and Training Authorities (SETA’s) so that
2 000 non levy paying enterprises, non-government organisations and
co-operatives receive skills development funding by 2010.
Increase the pool of qualified persons with scarce skills by providing top up
funding to SETA’s, the National Student Financial Aid Scheme and the
National Research Foundation in order to assist unemployed
learners to enter scarce and critical skills programmes in learnerships,
apprenticeships, internships, bursaries and skills programmes by 2010.

30. KRA 2: Enhance Skills Development 30
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Number of additional unemployed persons assisted to enter learning programmes.
Number of new learners who have completed learning programmes
Number of new undergraduate bursaries awarded
Number of new post graduate bursaries awarded
18 000
9 000
7 000
1 700
10 134
Not reported
3 598 undergraduate bursaries awarded
1 088 post graduate bursaries were awarded

31. KRA 2: Enhance Skills Development 31
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Number of new Adult Basic Education and Training (ABET) learners registered by the NSF.
Number of new registered ABET learners who have completed programmes
Number of additional unemployed people trained
Number of trained unemployed persons placed in employment
40 000
20 000
90 000
63 000
56 669
44 759
11 928
6 933

32. KRA 2: Enhance Skills Development 32
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Number of additional cooperatives that receive skills development support
Number of ABET learners registered by SETAs
Number of additional ABET learners who have completed programmes.
1 000
40 000
5 404
41 536
20 472

33. KRA 2: Enhance Skills Development 33
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Number of workers assisted to enter scarce and critical skills programmes through learnerships, apprenticeships, internships, bursaries and skills programmes
% percentage of workers enrolled in scarce and critical skills programmes who have completed learning programmes.
Number of additional unemployed people trained as part of the social development programmes
26 000
50% (13 000)
90 000
(Numbers are included in the below)

34. KRA 2: Enhance Skills Development 34
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
Percentage of trained unemployed people placed in employment
Number of additional unemployed people assisted to enter scarce and critical skills programmes through learnerships, apprenticeships, internships, bursaries and skills programmes.
Number of additional unemployed learners who have completed learning programmes.
Number of additional youth supported through New Venture creation programme.
70%
26 000
(50%)
2 000
(Numbers are included in the below)
62 909
48 229
3 412

35. Challenges
Challenges experienced included the following :
The economic recession resulted in a lesser number of apprentices indentured.
Number of new learners who completed learning programmes couldn’t be verified since Provincial government reports were still outstanding by end of April 2010.
Insufficient applications from learners meeting requirements were received by NSFAS & NRF.
Uncertainties regarding funding allocation beyond 1st November 2009 transfer of skills development functions to DHET by resulted in DoL Provincial Offices not signing new contracts.

36. Challenges (cont.)
5. Individual SETA targets on ABET were low and the target could not be achieved due to Sectoral or industry challenges experienced with ABET programmes.
6. The completion rate is based on the number of workers registered during the and some programmes that are 3yrs long. Learners registered during 2009/10 were still in programmes.
7. The company intake of unemployed learners declined sharply partly due to economic recession challenges that they experienced during the 2009/10 financial year.

37. Programme 4: Labour Policy and Labour Market Programmes37
Programme 4: Labour Policy and Labour Market Programmes
(LP & LMP)
DDG: L Kettledas

38. PURPOSE: Establish an equitable and sound labour relations environment
Programme 4: Labour Policy and Labour Market Programmes
PURPOSE: Establish an equitable and sound labour relations environment
and promote South Africa’s interests in international labour matters
through research, analysing and evaluating labour policy,
and providing statistical data on the labour market,
including providing support to the institutions
that promote social dialogue.
Measurable Objective:
Improve employment equity by inspecting additional Johannesburg Stock Exchange
listed companies each year for substantive compliance with legislation.

39. KRA 3: Promote Equity in the Labour Market 39 Performance Indicators
Target
Actual
Implement the
Director-General
Review System
(DG Review)
67 JSE listed companies were reviewed and Employment Equity Plans approved.
12 National EE Awareness campaigns were successfully conducted in all Provinces.
New EEA Forms and Guidelines for
on-line reporting were published.
4. The 10th CEE Annual Report was published

40. KRA 4: Protect Vulnerable Workers 40 Performance Indicators
Actual
Sectoral
determinations
reviewed and
amended
5 Sectoral determinations were reviewed and amended.
A report on the outcome of the investigation into the Welfare Sector was completed although a sectoral determination was not made in the sector.
The Hospitality Sector investigation has been finalized and a report has been submitted to the ECC for its consideration.
Applications for variations dealt with:
555 received
402 granted
138 refused
2 withdrawn

41. KRA 4: Protect Vulnerable Workers 41 Performance Indicators
Target
Actual
Regulate child
labour
OHS Regulations on worst forms of child labour published.
A report tool for different government departments was developed.
8 Civil Society Organisations that are involved in building capacity of labour organizations and train vulnerable workers about their rights, were funded.

42. KRA 5: Promote Sound Labour Relations 42 Performance Indicators
Actual
Registration of
labour
organizations
De-register non-
genuine and
non-compliant
Labour
118 New applications
17 approved (13 trade unions & 4 employers org)
101 rejected
Total number of registered labour organizations:
Trade Unions = 199
Employers’ Org = 167
Bargaining Councils = 47
19 non-genuineness (11 trade unions and 8 employers’ org)
26 non compliance (18 trade unions & 8 Employers’ Org)
4 cancellations due to amalgamations

43. KRA 5: Promote Sound Labour Relations 43 Performance Indicators
Target
Actual
De-register non-genuine
and non-compliant
Labour Organizations.
31 collective agreements were dealt with.
13 were for renewal of period and extension of period of operation.
18 for extension of collective agreements to non-parties to cover employees.

44. KRA 9: Monitor the Impact of Legislation 44 Performance Indicators
Target
Progress
Implement the
second Research,
Monitoring and
Evaluation agenda
(RME 2)
RME 2 was developed and approved, which entails
the following research themes:
Evaluation of the National Skills Development Strategy (NSDS) II;
Client Satisfaction Survey for the Unemployment
Insurance Fund;
Non-compliance with Unemployment Insurance Fund (UIF) Act;
OHS risk sectors; and
5. An assessment of the implementation of Employment Services of South Africa (ESSA).

45. KRA 9: Monitor the Impact of Legislation 45 Performance Indicators
Target
Progress
Implement the
second Research,
Monitoring and
Evaluation agenda
(RME 2)
The following research projects were conducted in 2009/10,
three of which were commissioned - one of them was
conducted internally and another one conducted in
collaboration with the University of Witwatersrand (Wits):
Evaluation of Minimum wages and conditions of employment in the Unskilled Labour sector;
Evaluation of sectoral determinations in addressing the plight of vulnerable workers;
Evaluation of Bargaining Council and Pension Funds.
Creative Workers Industry; and
Labour Migration in Construction study.

46. KRA 9: Monitor the Impact of Legislation 46 Performance Indicators
Target
Progress
Produce and publish
Annual Labour Market
reports were
The following Annual Labour Market reports were
produced and published:
Annual Labour Market Bulletin 2009/10;
Annual Industrial Action report 2009;
Annual Job Opportunity and unemployment in South Africa 2009/10;
In addition, the following ministerial briefing reports
were submitted:
Key findings on LM indicators and UIF data for all
quarters in the financial year 2009/10.

47. KRA 9: Monitor the Impact of Legislation 47 Performance Indicators
Target
Progress
Projects developed
and completed.
DoL Executive Dashboard system developed and implemented by April Users training provided and system loaded in the DoL server.
Vacancy filling pilot survey planning started; to be completed in March 2011.
Compensation Fund Client Satisfaction survey 2010 planning started; to be completed in March 2011

48. Sheltered Employment Factories 48 Performance Indicators
Target
Progress
Improve the
administration,
production and financial
control of the
employment centre for
the disabled.
Appointment of permanent factory managers in all 12 factories.
Factories operating between 50 – 70% capacity.
Procedure policies developed and adopted.
New inventory procedure being piloted.
Signed an MoU with Productivity SA to improve factory productivity and competitiveness.
New products planned for introduction during second quarter of 2010/11.

49. Finance Report CFO: Mr B Maduna49
Finance Report
CFO: Mr B Maduna

50. Comparative Expenditure Information between 2008/9 and 2009/10 50
In the Appropriation Statement for Vote 15: Labour for the 2009/10 financial year, expenditure to the value of R2,063 billion is reflected as having been defrayed against the Adjusted Vote of R2,090billion. This represents an expenditure level of 98.7% of the Vote as compared to the 2008/09 financial year with expenditure levels at 94%.
Expenditure per Main Division of the Vote is recorded as follows:

51. Comparative Expenditure Information between 2008/9 and 2009/10 51

52. All the issued were cleared
AUDIT QUALIFICATIONS
2008/2009
Major Assets
Asset Register in accordance with requirements from NT (bar codes, Locations, Bas/LOGIS/Asset Register Reconciliation
Incorrect values
Reconciling the prior years (2006/2007,2007/2008, 2008/2009)
2009/2010
All the issued were cleared

53. 2008/2009 PPP Assets 2009/2010 PPP Assets AUDIT QUALIFICATIONS 53
Adjustment to the prior year not appropriately substantiated
Not all current year additions to PPP assets were accounted for
2009/2010
PPP Assets
Inadequate PPP Assets Register
Difference in the closing balance between the Asset Register and the tangible assets

54. OTHER MATTERS
Contingent asset (claiming of R5 million from a service provider due to overpayment).
Unauthorised/fruitless and wasteful/irregular expenditure (Amounting to R3.3 million).
Non compliance with regulatory and reporting requirements.
Investigations into alleged internal control deficiencies at INDLELA instituted in the current year.
Investigations on allegations of fraudulent payments were completed.

55. Thank you