1. BRIEFING BY THE DEPARTMENT OF LABOUR (DoL) TO THE PORTFOLIO COMMITTEE 09 OCTOBER 2012 Strategic Plan 2012 – 2017 and Annual Performance Plan 2012/13 Doc Id: 464719 1

2. TABLE OF CONTENTS 2 Mandate Vision Mission Programmes/Branches Key Result Areas MTSF Priorities Programme 1: Administration Programme 2: Inspection and Enforcement Services Programme 3: Public Employment Services Programme 4: Labour Policy and Industrial Relations Planned Policy Initiatives DG Priority Projects Budget

3. 3 1. Mandate Aim: To regulate the South African Labour Market for a sustainable economy. Legislation: The Department of Labour is responsible for the following legislation:  Occupational Health and Safety Act, 1993  Compensation for Occupational Injuries and Diseases Act, 1993  NEDLAC Act, 1994  Labour Relations Act, 1995, as amended  Basic Conditions of Employment Act, 1997, as amended  Employment Equity Act, 1998  Unemployment Insurance Act, 2001 as amended  Unemployment Insurance Contributions Act, 2002.

4. 4 1. Mandate Vision The Department of Labour will strive for a labour market which is conducive to investment, economic growth, employment creation and Decent Work. Mission Regulate the South African labour market for a sustainable economy through: Appropriate legislation and regulations Inspection, compliance monitoring and enforcement Protection of human rights Provision of Employment Services Promoting equity Social and income protection Social dialogue.

5. Branches/Programmes 5 Programme 1: Administration  Ministry  DG’s Office  Chief Operations Officer  Internal Audit  Risk Management  Security Services  Communication  Human Resources Management  Chief Information Officer  Legal Services  Chief Financial Officer Programme 2: Inspection and Enforcement Services (IES) Programme 3: Public Employment Services (PES) Programme 4: Labour Policy and Industrial Relations (LP & IR)

6. Key Results Areas (KRA) 6 The Strategic Plan (2012–2017) consists of the following 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: Monitoring the Impact of Legislation KRA 8: Strengthening the Institutional Capacity of the Department

7. Medium Term Strategic Framework (MTSF) vs. Departmental Key Results Areas 7 SERVICE DELIVERY OUTCOMES AND OUTPUTS THE DEPARTMENT STRATEGIC OBJECTIVES PROGRAMME 4: Decent employment through inclusive economic growth Outputs: 4.1 Making our growth more labour absorbing 4.2. Reducing youth unemployment 4.3. Raising our international competitiveness 4.4. Analysing the cost structure of the SA economy 4.5. Reviewing support for small business 4.6. Expanding our Public Works Programme 1: Contribution to employment creation 2: Promote equity in the labour market 3: Protecting vulnerable workers 5: Strengthening social protection 6: Promoting sound labour relations 7: Monitoring the impact of legislation IES PES LP & IR

8. Medium Term Strategic Framework (MTSF) vs. Departmental Key Results Areas - continues 8 SERVICE DELIVERY OUTCOMES AND OUTPUTS THE DEPARTMENT STRATEGIC OBJECTIVES PROGRAMME 11: Creating a better South Africa and contributing to a better and safer Africa in a better world. 4: Strengthening multilateral and bilateral relations LP & IR 12: An efficient, effective and development orientated public service and an empowered and inclusive citizenship Output: 12.1 Service delivery quality and access 8: Strengthening the institutional capacity of the Department ADMIN

9. Programme 1: Administration Programme purpose and measurable objectives 9

10. Programme 1: Administration - continues 10 SERVICE DELIVERY OUTCOME 12 Strategic Objective 8: Strengthening the institutional capacity of the Department OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 TargetsSTATUS TO DATE 1.1 Improve organizational performance Fully functional performance management system implemented to comply 100% with prescripts Management Performance capability (MPAT) self- assessment conducted by end November 2012 Departmental MPAT and KPA coordinators were appointed and the Department has started with the self- assessment Conduct performance management capability assessment by end of Nov 2012 1.2 Improve service delivery access and quality Number service delivery points accessible in line with geographic norms and standards Conduct accessibility study in line with geographic norms and standards with an implementation plan This is part of Project Shanduka

11. Programme 1: Administration - continues 11 SERVICE DELIVERY OUTCOME 12 Strategic Objective 8: Strengthening the institutional capacity of the Department OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 TargetsSTATUS TO DATE 1.3 Medium Term Expenditure Framework (MTEF) Human Resource Plan implemented Percentage of women, youth and people with disabilities employed in line with the EE Plan 40% women employed in Senior Management Service (SMS), 48% youth and 4% people with disabilities employed in Department of Labour by 31 March 2013 38.8% Women employed in SMS as at 30 September 2012 35.09% employed as at 30 September 2012. 2.7% People with Disabilities employed as at 30 September 2012 Fill all vacancies within a specified period of time Vacancy rate reduced to below 7% by 31 March 2013 As at 30 September 2012, the Department has vacancy rate of 6.65%. Thus, 7 108 posts were filled in an establishment of 7 615 posts.

12. Programme 1: Administration - continues 12 SERVICE DELIVERY OUTCOME 12 Strategic Objective 8: Strengthening the institutional capacity of the Department OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 TargetsSTATUS TO DATE 1.5 ICT Strategy developed and implemented Implementation of the new ICT strategy 50% strategic plan components implemented The ICT strategy has been finalized, approved and accepted by the Department 1.6 PPP ICT contract effectively managed Exit and services transfer plan developed and implemented Completion of handover by PPP service provider and close-out of PPP The Exit plan and work streams have been finalized and approved. 1.7 Improved Supply Chain Management and procurement 100% of payments of all compliant invoices effected within 30 days of receipt of invoice Payments effected within 30 days of receipt of invoice 99% of invoices were paid within 30 days of receipt by the Department

13. Programme 2: Inspection and Enforcement Services (IES) Programme purpose and measurable objectives 13

14. Programme 2: Inspection and Enforcement Services (IES) - continues 14 SERVICE DELIVERY OUTCOME 4 Strategic Objective 2: Promote equity in the labour market OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 Targets STATUS TO DATE 2.1 Employment Equity implementation and enforcement mechanisms strengthened to ensure transformation of the labour market Percentage of employers complying with their EE Plans to reflect demographics of the country in all occupational categories 80% of 240 employers inspected to comply with legislation 52 (12 public and 30 private) employers were inspected Prov. Target (Public) Actual (Public) Target (Private) Actual (Private) EC 2040 FS 1940 GP 6087 KZN 4092 LP 2045 MP 2035 NC 0000 NW 0000 WC 33811 TOTAL 20124030

15. Programme 2: Inspection and Enforcement Services (IES) - continues 15 SERVICE DELIVERY OUTCOME 4 Strategic Objective 3: Protecting vulnerable workers OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 Targets STATUS TO DATE 2.2 Improved capacity to monitor and enforce compliance with labour legislation and decent work principles 80% of workplaces inspected and audited (targeting problematic sectors) comply with labour legislation within 90 days of inspection or audit 80% of 78 000 workplaces inspected /audited to comply within 90 days of inspection or audit 20 553 workplaces inspected and audited and 57% compliance was realised See the slides to follow for Provincial and Sector breakdown

16. Programme 2: Inspection and Enforcement Services (IES) - continues 16 Prov.TargetActual % Compliance Variance EC86511570292 FS30852395215 GP1900115254-748 KZN1207152066313 LP1567144254-125 MP70165682-45 NC023083230 NW22364681423 WC6725160-156 NATIONAL 7443784257.2399 Wholesale & Retail Prov.TargetActual % Compliance Variance EC6834930-190 FS41128798-124 GP28053452254 KZN804157473770 LP27019452-76 MP28646148175 NC01911119 NW32811798-211 WC4623750-87 NATIONAL3524405459.1530 Hospitality Prov.TargetActual % ComplianceVariance EC7664360-330 FS102948998-540 GP601316771 KZN80425380-551 LP24331067 MP28026180-19 NC90056290-338 NW30619880-108 WC420508088 NATIONAL 4808314862.4-1660 Agriculture Prov.TargetActual % Compliance Variance EC500-5 FS0000 GP00570 KZN4024913-353 LP7250-5 MP471338-34 NC0000 NW0000 WC2110-20 NATIONAL4826517.6-417 Forestry

17. Programme 2: Inspection and Enforcement Services (IES) - continues 17 Prov.TargetActual % Compliance Variance EC1313010170 FS19929773 GP788109739309 KZN6047586-529 LP7818039102 MP52935841 NC07867 NW1023093-72 WC2303910161 NATIONAL 2004226655.33262 Private Security Prov.TargetActual % Compliance Variance EC3274910164 FS302303911 GP1192103980-153 KZN20131289111 LP48910580-384 MP50430499-200 NC0749674 NW34720796-140 WC2103430133 NATIONAL3572317870.1-394 Domestic

18. Programme 2: Inspection and Enforcement Services (IES) - continues 18 SERVICE DELIVERY OUTCOME 4 Strategic Objective 3: Protecting vulnerable workers OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 Targets STATUS TO DATE 2.2 Improved capacity to monitor and enforce compliance with labour legislation and decent work principles Conduct two advocacy sessions focusing on problematic sectors forestry and hospitality sectors Two Seminars to be held in the targeted problematic sectors- i.e. forestry and hospitality Develop and implement a training program for shop stewards Seminar held in the Forestry Sector

19. Programme 2: Inspection and Enforcement Services (IES) - continues 19 SERVICE DELIVERY OUTCOME 4 Strategic Objective 5: Strengthening social protection OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 TargetsSTATUS TO DATE 2.3 Occupatio nal Health and Safety implement ation and enforceme nt mechanis ms strengthen ed Percentage in reduction in incidents in four high risk sectors : Iron and Steel Construction Chemical Agriculture/Forestry Reduce incidents in the four high risk sectors by at least 2% compared to 2011/12 Percentage of workplaces inspected and audited (targeting high risk sectors) complying with labour legislation within 90 days of inspection or audit 80% of 51760 workplaces inspected or audited in high risks sectors to comply 4 332 workplaces inspected and audited and 41% compliance was realised See the slide to follow for Provincial and Sector breakdown 2% Reduction IronConsChemAgricDifferen ce FY 11/1217638350249 FY12/1317351460270 %Reductio n -2343108

20. Programme 2: Inspection and Enforcement Services (IES) - continues 20 Prov.TargetActual % Compliance Variance EC500--50 FS312588-6 GP151715950-1358 KZN188237965-1503 LP4146505 MP1602098149 NC784448-34 NW27400-274 WC488410-447 NATIONAL 452190342.44-3618 Iron and Steel Prov.TargetActual % Compliance Variance EC50--5 FS312241-9 GP72011950-601 KZN821181731099 LP6250-4 MP1520955 NC434950-339 NW12700-127 WC41800-418 NATIONAL1838143934.33-399 Chemical Prov.TargetActual % ComplianceVariance EC2050--205 FS917579-16 GP95883417-124 KZN10576380-994 LP1131961783 MP2552948839 NC0638163 NW4629854-364 WC6072670-340 NATIONAL 3748189046.22-1858 Construction Prov.TargetActual % Compliance Variance EC32200-322 FS152850-67 GP0000 KZN0000 LP0000 MP0000 NC0150 NW0000 WC0000 NATIONAL4741000-374 Agriculture and Forestry

21. Programme 2: Inspection and Enforcement Services (IES) - continues 21 SERVICE DELIVERY OUTCOME 4 Strategic Objectives 6: Strengthening social protection OUTPUT S KEY PERFORMANCE INDICATORS 2012-2013 Targets STATUS TO DATE 2.4 Occupational Health and Safety implementati on and enforcement mechanism strengthened Percentage reduction in over exposure of workers to silica dust 200 workplaces inspected i.e. WC (100) and KZN (100) to reduce exposure to silica dust by 2% 8 workplaces were inspected in Western Cape Number of education and advocacy sessions conducted focusing on identified high risk sectors conducted to improve compliance with the legislation 4 Seminars in the following sectors Iron and Steel Chemical 1 National OHS Conference to be held 1 Advocacy campaign to create awareness on workers rights 14 education and advocacy sessions were conducted focusing on the high risk sectors: 11 in FS 3 in NW Percentage reduction in noise induced hearing loss (NIHL) in the Iron and Steel Industry Conduct base line study on the extent of noise induced hearing loss in the Iron and Steel Industry Develop a preventative strategy based on findings Research currently in progress

22. Programme 3: Public Employment Services (PES) Programme purpose and measurable objectives 22

23. Programme 3: Public Employment Services (PES) - continues 23 SERVICE DELIVERY OUTCOME 4 Strategic Objective 1: Contribution to employment creation KEY OUTPUT PROGRAM PERFORMANCE INDICATOR 2012 – 13 TARGETS STATUS TO DATE 3.1 Public Employment Service legislation, related regulations and guidelines developed. Employment Service (ES) legislation, related regulations and guideline in place Employment Service Act, regulations and guidelines in place. Private Employment Agencies (PEA) and Career Guidance guidelines ES Bill negotiations concluded at NEDLAC on the 3 rd July 2012 3.2 PES initiatives and interventions communicated through various media channels PES advocacy campaigns conducted at National and Provincial level At least one PES national and two major provincial advocacy campaigns, conducted annually 2 Major campaigns held 719 Minor campaigns were held 3.3 Work-seekers registered on the system Increase number of work-seekers registered in different categories on ESSA 450 000 reporting work- seekers registered on the system A total of 131 379 work- seekers against a target of 112 875 was registered on the system

24. Programme 3: Public Employment Services (PES) - continues 24 SERVICE DELIVERY OUTCOME 4 Strategic Objective 1: Contribution to employment creation KEY OUTPUT PROGRAM PERFORMANC E INDICATOR 2012 – 13 TARGETS STATUS TO DATE 3.4 Work seekers profiled Percentage of work-seekers registered on the system profiled 80% of work-seekers registering on the system are profiled within 60 days of registration 53%(70 203 of 131 379) were profiled within 60 days of registration. 3.5 Work seekers placed in opportunities and referred to other services Increase number of work-seekers placed/referred to opportunities and other services 18 000 work-seekers placed. 72 000 work-seekers referred to training opportunities 1999 work-seekers against a target of 4 050 was placed 63 529 work-seekers against a target of 16 955 was referred.

25. Programme 3: Public Employment Services (PES) - continues 25 SERVICE DELIVERY OUTCOME 4 Strategic Objective 1: Contribution to employment creation KEY OUTPUT PROGRAM PERFORMANCE INDICATOR 2012 – 13 TARGETS STATUS TO DATE 3.6 Employers provided with specialised services Increased number of employers registering vacancies on Employment Services System of SA per annum Increase number of Private Employment Agencies that provide Employment Services registered Number of request for recommendation of work permits responded to Increase number of companies / employers registering vacancies on ESSA from 2000 to 3000, by end of March 2013 Increase number of existing private employment agencies registered by the Department, from 1 500 to 2 000 by end of March 2013 All requests for work permits recommendations received processed within 30 working days 580 companies against a target of 247 registered vacancies on ESSA 88 new PEAs against a target of 121 were registered. 20 applications were received and were responded to within 30 days

26. Programme 3: Public Employment Services (PES) - continues 26 SERVICE DELIVERY OUTCOME 4 Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS PROGRAM PERFORMANCE INDICATOR 2012 – 13 TARGETS STATUS TO DATE 3.7 Special employment opportunities provided to eligible people with disabilities Approved policy and legal framework for Sheltered Employment Factories commonly known as Service Products factories Increase sale of goods from Service Products leading to more intake of people with disabilities into SEF Management structure established, systems developed, piloting conducted Increase sales from 30% to 35% leading to more people with disabilities employed in SEF by Mach 2013 SEF as is and Option report were presented to PSC for approval Annual actual sales as at FY2011/12 is R 50,6. Average sales to be achieved per quarter in 2012/13 is Rm5.6. Average decrease in sales is 55.5% Quarter actual sales as at Q1 of FY2011/12 is Rm7.9. An actual sale for Q1 of FY2012/13 is Rm5.6 Actual decrease in sales in 29.6% 3.8 Products and services of assisted companies are world class and competitive Increased number of companies assisted to facilitate constructive dialogue between social partners, managers and workers, to improve productivity 200 companies assisted 417 companies against the target of 50 were assisted

27. Programme 3: Public Employment Services (PES) - continues 27 SERVICE DELIVERY OUTCOME 4 Strategic Objective 1: Contribution to employment creation KEY PERFORMANCE INDICATORS PROGRAM PERFORMANCE INDICATOR 2012 – 13 TARGETS STATUS TO DATE 3.9 Capacitated SMMEs contribute to sustainable employment creation Increased number of Small Medium and Micro Enterprises (SMME) managers trained and assisted to manage matters related to intellectual property 3 500 SMME managers trained and capacitated 404 SMME Managers against the target of 875 were trained and capacitated 3.10 Jobs saved in distressed companies Number of jobs saved through social plan interventions 22 500 jobs saved0 jobs against the target of 5 625 were saved

28. Programme 4: Labour Policy and Industrial Relations (LP & IR) Programme purpose and measurable objectives 28

29. Programme 4: Labour Policy and Industrial Relations (LP & IR) - continues 29 SERVICE DELIVERY OUTCOME 4 Strategic Objective 2 & 3: Protecting Vulnerable Workers and Promote Equity in the Labour Market OUTPUTSKEY PERFORMANC E INDICATORS 2012-2013 TARGETSSTATUS TO DATE 4.1 Sectoral determinations published for emerging vulnerable workers Review existing sectoral determinations Publish an amended SD with minimum wages for 1 sector by June 2012 Review and publish 5 Sectoral determinations by January 2013 An amended Hospitality SD published in GG No 35460 on the 22/06/2012. An amendment Private Security SD published in GG No 35646 on the 31/08/2012. An amendment Taxi SD published in GG No 35462 on the 22/06/2012 and currently conducting information sessions on the research report. An amendment Civil Engineering SD published in GG No 35658 on the 4/9/2012. Currently conducting public hearings around the country for Wholesale & Retail sector. A submission for the Contract Cleaning Sector has been sent to the Minister. Investigate new areas for setting sectoral determinations Investigate 2 new sectors with a view to establish SD’s by March 2013 Report on the investigation into the private security medical aid has been finalised and submitted to the ECC for its deliberations Awaiting response from the Dept. of Social Development on the welfare information

30. Programme 4: Labour Policy and Industrial Relations (LP & IR) - continues SERVICE DELIVERY OUTCOME 4 Strategic Objective 2 & 3: Protecting Vulnerable Workers and Promote Equity in the Labour Market OUTPUTSKEY PERFORMANCE INDICATORS 2012-2013 TARGETSSTATUS TO DATE 4.2 Small Business Determination reviewed Amend Ministerial Determination Small Business Ministerial Determination amended by end of March 2013 ECC deliberations on the Small Business have been completed and the ECC has signed off on the determination. 4.3 Employment Equity implementation and enforcement mechanisms strengthened Code of Good Practice and Technical Assistance guidelines on HIV and AIDS reviewed and amended. HIV and AIDS Code and technical assistance guidelines amended by June 2012 Achieved HIV & AIDS Code & TAGs reviewed and amended by 28 June 2012. Income Differentials assessed to determine race and gender disparities in salaries 30 Income Differentials assessed to determine race and gender disparities in salaries by March 2013 Partially achieved – 29 Income Differentials assessed and DG Recommendations tabled with CEOs. 30

31. Programme 4: Labour Policy and Industrial Relations (LP & IR) - continues 31 SERVICE DELIVERY OUTCOME 11 Strategic Objectives 4: Strengthening multilateral and bilateral relations OUTPUTSKEY PERFORMANCE INDICATORS 2012 – 2013 TARGETSSTATUS TO DATE 4.4 Participation in the ILO Governing Body and the International Labour Conference ensured Develop South Africa’s position documents on agenda items for ILO meetings. South Africa’s position documents on the agenda items for ILO GB and ILC developed and submitted by May 2012. South Africa’s position on the following ILC agenda items developed: Reports of the Chairperson of the Governing Body and of the Director-General Programme and budget Recommendation on the Social Protection Floor The Youth Employment Crisis Fundamental principles and rights at work, under the follow-up to the ILO Declaration on Social Justice for a Fair Globalization, of 2008. Application of Conventions and Recommendations 4.5 Relations strengthened with fraternal countries Memorandum is reviewed and signed Review signed Memoranda with Namibia,Lesotho, Swaziland, China and Algeria by March 2013 MOU with Brazil signed by March 2013 Review process with Namibia, Lesotho, Swaziland, China and Algeria already commenced. MOU with Brazil signed. 4.6 Participation in the African Union Labour and Social Affairs Commission (AULSAC), African Regional Labour Administration Centre (ARLAC) and the SADC Employment and Labour Sector (ELS) Develop South Africa’s position documents on agenda items for AULSAC,ARLAC and SADC- ELS Develop briefing documents for ARLAC Governing Council by May 2012 and Develop briefing documents for SADC ELS by April 2012 Briefing notes developed for the participation by South Africa’s delegation during the ARLAC and SADC meetings.

32. Programme 4: Labour Policy and Industrial Relations (LP & IR) - continues 32 SERVICE DELIVERY OUTCOME 4 Strategic Objective 6: Promote Sound Labour Relations OUTPUTS KEY PERFORMANCE INDICATORS 2012 – 2013 TARGETS STATUS TO DATE 4.7 Implement South Africa’s Decent Work Country Programme (DWCP) Projects in priority output areas identified, agreed on with social partners, implemented and reported on. Monitor implementation of the DWCP and submit quarterly reports. Technical Committee meetings consisting of representatives from Government, Business and Labour convened to discuss projects under implementation. 4.8 Manage the implementation of the Labour Relations Act, 1995. Labour Relations Act amended The Bill submitted to CabinetBill submitted to Parliament 4.9 Employment Equity implementation and enforcement mechanisms strengthened. Employment Equity Act (EEA) amended. NEDLAC Engagement finalised on the Employment Equity Act (EEA) Amendments by November 2012 Achieved – NEDLAC process finalised on 4 July 2012. Bill approved by Cabinet on 4 September 2012 for tabling in Parliament. 4.10 Manage the implementation of the Basic conditions of Employment Act (BCEA) BCEA amendedBill submitted to CabinetBill submitted to Parliament

33. Programme 4: Labour Policy and Industrial Relations (LP & IR) - continues 33 SERVICE DELIVERY OUTCOME 4 Strategic Objective 7: Monitoring the impact of Legislation OUTPUTSKEY PERFORMANCE INDICATORS 2012 – 2013 TARGETSSTATUS TO DATE 4.11 Changing labour market trends will be detected, reported and implications for the Department’s interventions explored Annual Labour Market Review produced and labour market trends analyzed and linked to DoL interventions. Annual Labour Market Review developed and disseminated by March 2013 The following Labour market trends reports completed and published by September 2012: Industrial Action, Annual Labour Market Bulletin, Job Opportunity Index (JOI) and Unemployment 4 briefing reports on QLFS by April, July, October and January 2013 All annual reports approved and published (ACHIEVED) Two briefing reports produced by Sept 2012 Ministerial briefing reports produced upon release of key labour market issues. 4.12 Research on the impact of legislation conducted. Research reports produced and disseminated. Disseminate 2 completed Research Reports by March 2013. Research Monitoring and Evaluation (RME) agenda developed and approved by March 2013 NSDS II research was disseminated. OHS study report was disseminated and the presentation would be made on the 25 October 2012 to IES Branch. Taxi sectoral determination study was also disseminated to key stakeholders.

34. Planned Policy Initiatives 34 a)Amendment of the Unemployment Insurance Act No. 63 of 2001. These changes relate to improvements of benefits and administrative changes regarding submission of information by employers to the Fund. b)Promulgate the Employment Services Act. Employment Services Act, Regulations & Guidelines developed & implemented. c)Amendment of the Compensation for Occupational Injuries and Diseases Act: Develop a rehabilitation, re-integration and return-to-work policy for injured and diseased workers to ensure integration with other South African Policies and Programmes. d)Repealing of the OHS Act, 85 of 1993. This relates to repealed the OHSA in order to ensure that: –Employers develop and implement a health and safety management system –Penalties issued to employers are increased –Inspectors are enabled to issues prescribed fines on the spot e)Amendment of the Employment Equity Act f) Amendment of the Basic Conditions of Employment Act g) Amendment of the Labour Relations Act

35. DG Priority Projects 35  Redefine Public Employment Services  Re-orientation of Content of Inspection and Enforcement Services  Turn-around of the Compensation Fund  Turn-around of the Shelter Employment Factories  Turn-around of the Financial Management System (Value for Money approach)  Capacity building of the Office of the CIO  Turn-around of the Corporate Services

36. DG Priority Projects 36  Redefine Public Employment Services  Re-orientation of Content of Inspection and Enforcement Services  Turn-around of the Compensation Fund  Turn-around of the Shelter Employment Factories  Turn-around of the Financial Management System (Value for Money approach)  Capacity building of the Office of the CIO  Reducing the vacancy rate in the DoL

37. Medium Term Strategic Projects 37  ICT Status -Strategy -Exit and Services transfer Plan -Capacity Building: Office of the Chief Information Officer (OCIO)  Turn-around Strategy of the Sheltered Employment Factories (SEF)  ICT Project  Project Shanduka (The DoL’s Organisational Renewal Strategy)

38. Project Shanduka 38 DoL has over the years embarked on several transformation initiatives that were not fully implemented DoL is once again taking a bold step in transforming its business This journey began with the DG provincial visits between Jul - Sep 2012 Purpose was to afford DoL staff an opportunity to raise concerns about issues that impact service delivery and their work environment Issues raised ranged from resources being concentrated in Head Office to uneven budget allocations and work load in various service points It is a result of this feedback that Project Shanduka was established. The intent is to: Conduct an organisation review and re-design aimed at achieving a new organisation that will efficiently and effectively deliver on our mandate Improve DoL’s capacity to deliver accessible and responsive services to our citizens Project Shanduka is different: it is the “People’s Project” and change management is at the centre of project delivery

39. Progress Report on Employment Equity and Vacancy rate 39 The establishment of the Department as at 30 September 2012 was as follows:- Total Establishment = 7 615 Total filled = 7 108 Vacancy Rate = 6.65%

40. Progress Report on Employment Equity and Vacancy rate 40 As on 30.04.2012As on 30.09.2012 Women at SMS36.1%38.8% Women Overall56.1%55.8% Youth35.94%35.09% People with Disabilities 2.6%2.7%

41. Key ICT Programmes 41 Copyright © 2012 Accenture All Rights Reserved. Dec ‘12Mar ‘12 2017+ Programme 2: ICT Strategy Implementation Transition Strategy Operating Model Business Enablement Strategy Programme 1: PPP Close Out Exit and Services Transfer Program ICT Skills Factory ICT has two main programmes to support the business going forward

42. Programme components and detailed activities Program Component (s) Purpose Activities Programme 1 Exit and Transfer To close out the PPP contract through the completion of the contractually required Exit and Service Transfer process Handover, review and acceptance of all Siemens information, contracts and technology assets Completion of PPP close out report Document handover and inspection Re-inspection and close out HR support (people transfer) Business Operations (contract transfer) Operations and Improvement services support (Application and hardware transfer) Programme 2 Operating Model Implementati on Transform from the PPP service delivery model to a new and leading practice service delivery model Build internal capacity in key areas Replace PPP governance with a Cobit based leading practice framework Replace PPP ICT processes with those based on leading practices such as ITIL Develop and implement new ICT policies Manage internal and external communications ICT Process definition and implementation ICT Governance definition and Implementation ICT Org Structure implementation including: Organisation Structure definition Workforce Transition Recruitment Communication (Internal, external, parliament and media) ICT policy definition, implementation and enforcement Change Management Transition Strategy Transition from PPP sole sourcing to multi- sourcing Implement transformational outsourcing to introduce benefits of value based sourcing and contracting Transactional Advisor Appointment Procurement processes to appoint new service providers Termination Support to allow handover and continuity Business Enablement Strategy Design and develop systems that will enable improved citizen interaction Design and develop systems to improve internal operational efficiencies and better manage people and financial resources Automate core business processes Improve supporting infrastructure platforms Front Office - access channels i.e. labour centres, call centres, portals (web), SMS etc. Core Business applications e.g. PES, CF, IES etc. Common applications e.g. data integration, dashboards Backoffice e.g. HR, Finance, Procurement etc. Technology and infrastructure

43. 30 Nov 2012 30 Nov 2013 20122013 ComponentAugSepOctNovDecJanFebMarApr Exit and Transfer Document handover and inspection Re-inspection and close out Operating Model Implementation Detailed ICT Process Definition ICT Process Implementation ICT Governance Implementation ICT Org Structure Definition and Implementation Workforce Transition Recruitment Transition Strategy Termination Support Transactional Advisor Appointment Transform and Run: Data Centre and Facilities Transform and Run: Workplace (Desktop/printing) Transform and Run: Service Desk Transform and Run: Voice and Data Transform and Run: Development Business Enablement Business Projects e.g. ERP, CF, PES ICT Infrastructure Platform Projects Re-inspection not started Close out report process started ICT Governance process to be submitted for Approval All documents/information handed over completed, awaiting sign off ICT Structure submitted for approval Completed Preparatory work completed Project plan completed On track Management focus required Executive management intervention required ICT Progress against timelines Today Awaiting proposal from SIS

44. DoL Strategic Plan 2012 -2013 Budget Allocation 44 MEDIUM TERM BUDGET VOTE 18 PRESENTATION: CFO

45. DoL Strategic Plan 2012 -2013 Budget Allocation – Main Divisions of the Vote 45

46. Thank You… 46