1. Annual Report: 2008/09 Presentation to the Select Committee on Labour & Public Enterprises 04 November 2009 Presentation to the Select Committee on Labour & Public Enterprises 04 November 2009 Overall Responsibility Director General: Jimmy Manyi Overall Responsibility Director General: Jimmy Manyi

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) Programmes / Branches of the DoL 2

3. DoL KEY RESULT AREAS 3 DoL KEY RESULT AREAS 3 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

5. Programme 1: Administration 5 Programme 1: Administration 5 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 Programme 1: Administration 6 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. Programme 1: Administration 7 Programme 1: Administration 7 Sub-Programme: Communication Progress  Stakeholder Relations: Through exhibitions showcased services of DoL in various provinces.  Marketing and advertising: 20 Marketing & advertising campaigns implemented on: - Worker rights & Human rights, - EE Reporting, - Occupational Health & Safety, - Learnerships for matriculants and unemployed graduates, - Domestic Workers Sectoral Determinations, - Wage increase awareness.  Media Liaison: Profiled the DoL in the electronic & print media through media statements, press conferences & interviews for the Executive & Senior Managers.

8. Programme 1: Administration 8 Programme 1: Administration 8 Sub-Programme: Human Resources Management Progress  HR Plan for 2006 – 2009 is in place.  Training & Development: Senior Managers (SMS) participated in Training & Development Programme.  Performance Management: Increased compliance at all levels (SR 1 - 16).  3 Pillars of Employee Health & Wellness implemented: - HIV/AIDS / TB Management : Promoted Voluntary Counselling & Testing, - Disease Management, - Health and Productivity Management.  Employment Equity: Implementation of EE Plan monitored monthly.

9. Programme 1: Administration 9 Programme 1: Administration 9 Sub-Programme: Office of the CFO Directorate: Financial Management Progress  Held regular audit matters forums to monitor & reduce the level of audit queries for DoL, NSF & Sheltered Employment Factories, INDLELA, CF & UIF.  Annual financial statements prepared according to prescripts.  Budget Advisory Committee provided support to spending units of DoL on Financial Management & Control – Spending was within budget.

10. Programme 1: Administration 10 Programme 1: Administration 10 Sub-Programme: Office of the CFO Directorate: Financial Liaison – Public Entities Progress  Implemented enhancements to the Annual Financial Statements for better compliance.  Facilitate submission and analysis of quarterly financial reports.  Identified performance gaps and generated reports for early warnings.  Analysis and capturing of budget information for all SETA’s.  Follow up and support of all critical and struggling Public Entities – Guidance & Feedback.  Capacity building, training and skills transfer to Public Entity Personnel.

11. Programme 1: Administration 11 Programme 1: Administration 11 Sub-Programme: Office of the CFO Directorate: Office Administration and Supply Chain Management Progress  Managed office accommodation and Repair Maintenance Program on State owned building through Public Works. - 9 contracts completed and 4 to be complete in 2010. - Contracts for 12 Sheltered Employment Factories completed. - Bid Process for the HQ Building finalised – work start in 2009.  Document security & archival storage facility improved.  A sub-directorate for Asset Management established – with major asset registers in place for all provinces and Head Office.  Asset registers for IT PPP with Siemens were developed.

12. Programme 1: Administration 12 Programme 1: Administration 12 Sub-Programme: Office of the CIO Information Technology Progress  Policies developed to cover key areas in the IT environment: - Information Systems Security - Network and User Security  An IT disaster recovery plan was approved.  Business Applications deployed: - Additional functionality & enhancements to current legacy systems at CF. - Additions and enhancements to the EE system. - ESSA rolled out to all Labour Centres and enhancements made for stability & data integrity. - Financial Management Systems for the UIF, CF & NSF initiated.  Operations: Service Delivery for remote areas enabled by providing IT Service to 20 Mobile Labour Centres.

13. Programme 1: Administration 13 Programme 1: Administration 13 Directorate: Internal Audit Progress  57 audits scheduled for DoL, NSF & Sheltered Employment Factories – 51 complete, 15 could not be performed due to lack of resources.  42 final audit reports issued.  The audit committee of the departments functions optimally & meets regularly.  A risk management Unit introduced and a risk management plan developed to be managed by senior management.

14. Programme 1: Administration 14 Programme 1: Administration 14 Directorate: Security Services Progress  Electronic Security system implemented in high risk KZN.  Several security appraisals and assessments implemented in key provincial offices & labour centres.  Bid to improve CF security at advanced stage.  Contract security procured for various provincial offices & labour centres.  Cases of IT equipment losses reduced by 75% with the introduction of investigations on security breaches & theft of IT equipment.  Officials are paying back the dept the rand value of equipment losses.

15. Programme 2: Service Delivery

16. Programme 2: Service Delivery 16 PROGRAMME PURPOSE: Ensure implementation of and compliance with department of labour policies and programmes through monitoring, evaluation and inspections ENE 2008/09-2010/11 Measurable Objectives:  Increase percentage of registered work-seekers placed in registered employment opportunities to 70% by 2010/11  Assess and refer 10% of work-seekers to identified critical and scarce skills development programmes by 2010/11  Ensure training of 90 000 unemployed people: - 70% placed in employment through the NSF and SETA’s - 26% of training is accredited by 2010/11

17. Programme 2: Service Delivery 17 PROGRAMME PURPOSE: Ensure implementation of and compliance with department of labour policies and programmes through monitoring, evaluation and inspections ENE 2008/09-2010/11 Measurable Objectives: (Continued)  Reduce workplace related injuries, illnesses and deaths by 2% by 2010/11.  Ensure 75% compliance with labour legislation by inspected workplaces 2010/11.  Promulgate the National Occupational Health and Safety legislation and implement Act by March 2010.  A total of 90% UIF claims processed and paid within 5 weeks.

18. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL 1. A single Integrated Employment Services System (ESSA) is rolled out and enhanced to ensure improved access to employment services 1.1 Employment Services system rolled out to all 125 labour centres 1.2 Pilot studies to roll out the six ES offerings to two labour centres: Thohoyandou and Pretoria 1.3 The Resource Centre and Career information and guidance introduced in pilot sites serviced 4 141 clients 1.4 A roving team of 37 staff members trained to provide career guidance and counselling. 13 107 clients counselled and 5 586 were job seekers (Pilot Sites) 1.5 More job-seekers accessed Employment Services and supported, especially through career counselling and assessments, networking with stakeholders, the matching of individuals to opportunities, recruitment and selection to access opportunities KRA 1: Contribute to Employment Creation 18 KRA 1: Contribute to Employment Creation 18

19. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1.Increase percentage of registered work- seekers placed in registered employment opportunities to 70% by 2010/11. 1.1 Registered work-seekers increased by 252 627 in 2008/09 1.2 Placement opportunities registered on database increased by 10 968 1.3 There were 7 553 job opportunities 1.4 Over 421 686 job-seekers were registered on the database compared to 169 059 in 2007/08 1.5 Over 26 332 (22 917 job and 3 415 learning) placement opportunities were registered on the database compared to only 15 364 job opportunities registered in 2007/08 1.6 Over 70% of the registered placement opportunities (65% permanent employment and 104.9% learning opportunities) were filled compared to 36.3% in 2007/08. 1.7 Total of 18 404 job seekers placed 14 898 (65%) in employment and 3 415 in learning against a target of 15 000 compared to 5 578 in 2007/08. KRA 1: Contribute to Employment Creation 19 KRA 1: Contribute to Employment Creation 19

20. Provincial Breakdown POJob seekers registered Total job opportunities registered Learning opportunities registered Job-seekers placed in employment Job- seekers placed in learning opportun ities %placed in jobs %placed in job opportun ities EC333011035464100946497%100% FS3783284017978017992.8%100 GN44454 49440010.4%0 GS44386 25891026 57.8%100 KZN869454232828 *100 LP392561706215 72.6%100 MP43961207200*100 NC 8088 21920 *100 NW 9160 488505 46%100 WC 743034792 16178*14%0 TOTAL421686229173 253341565%104.9%

21. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. Assess and refer 10% of work- seekers to identified critical and scarce skills development programmes by 2010/11 1.1 8 531 registered job-seekers were assessed and 7 343 (86%) were referred to identified critical and scarce skills development programmes against a target of 6 000 compared to 17 375 assessed and 13 039 referred in 2007/08 1.2 7 546 (89%) of the 8 531 learners were assessed with the SpEEx assessment instrument for learnerships, internships, etc. These were mainly for strategic government job creation initiatives such as Coega, Department of Health contribution to EPWP NYS (data capturers) the EPWP NYS Infrastructure, GTZ ALMS project, the transport and construction sectors KRA 1: Contribute to Employment Creation 20 KRA 1: Contribute to Employment Creation 20

22. KRA1: Contribute to employment creation KRA1: Contribute to employment creation PO Target no. registered Job seekers to be assessed Total no. registered Job seekers assessed Total no. Referred to identified critical and scarce skills dev. programmes EC 780 2204 1483 FS 540 1301 330 GN 480 471 431 GS 660 654 2648 KZN 780 1368 1002 LP 540 885 411 MP 660 762 NC 480 217 0 NW 540 339 123 WC 540 468 153 TOTAL 6000 86697343

23. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. NSDS 2008-2009 year 4 targets implementation aligned to ASGI-SA implemented. 1.1 Provincial Skills Plans were reviewed to ensure alignment with the PGDS/IDP/LED and 1 673 projects were identified and listed 1.2 The training programmes in EPWP and the NODES were finalised:  A total number of 10 390 unemployed were trained in support of EPWP at a cost of R36 656 998  A total number of 3 315 unemployed were trained in support of ISRDP at a cost of R15 395 038  A total number of 447 unemployed were trained in support of URP at a cost of R2 907 347 KRA 2: Skills Development 21 KRA 2: Skills Development 21

24. KRA 2: Enhance Skills Development -Training in support of govt. programmes EPWP KRA 2: Enhance Skills Development -Training in support of govt. programmes EPWP PONo of unemployed trained Cost of training in Rand in support of EPWP EC744R 5,155,815.00 FS0R 0.00 GN1027R 6,364,035.00 GS1378R 6,711,241.00 KZN4298R 7,509,240.00 LP136R 161,439.00 MP0R 0.00 NC749R 1,848,712.00 NW1144R 3,724,947.00 WC914R 5,181,569 TOTAL10390R 36,656,998

25. KRA 2: Enhance Skills Development -Training in support of govt. programmes in the NODES KRA 2: Enhance Skills Development -Training in support of govt. programmes in the NODES PO No of unemployed trained Cost of training in Rand in support of ISRDP WCCentral Karoo36R 305,090 MPBohlabela Cross0R 0.00 LPSekhukhune Cross 0R 0.00 ECAlfred Nzo49R 104,605.00 ECChris Hani177R 896,856.00 ECUkhahlamba21R 107,929.00 ECOR Tambo1504R 3,730,066.00 NCKhalagadi Cross5R 611,175.00 KZNUgu100R 603,201.00 KZNUmkhanyakude631R 3,542,771.00 KZNUmzinyathi380R 2,165,265.00 KZNZululand412R 3,328,080.00 FSThabo Mofutsanyane 0R 0.00 TOTAL 3315R 15,395,038

26. KRA 2: Enhance Skills Development -Training in support of govt programmes in the NODES PO No of unemployed trained Cost of training in Rand in support of URP GSAlexandra-URN10R 0.00 WCKhayelisha-URN6108R 1,576,365 WCMichells Plain- URN7 0R 0.00 ECMotherwell-URN5100R 242,699 ECMdantsane-URN4132R 347,043 NCGaleshewe-URN8107R 741,240 KZNInanda-URN20R 0.00 KZNKwaMashu-URN30R 0.00 TOTAL 447R 2,907,347

27. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1.Employment Equity implementation and enforcement mechanisms in place 1.1 20 provincial staff members on the project are capacitated to enforce Employment Equity Act (EE Act) and 74 employers were subjected under the EEA DG review 1.2 12 514 EE designated employers were identified to enforce procedural compliance and only 9 723 were inspected and 8 112 (83%) complied within 90 days of inspection against a target of 10 000 compared to 8 475 inspected and 6 881 (81%) complying at the end of March 2008. 1.3 There is noticeable increase in the capacity to monitor and enforce EE procedural compliance. Although the target set was missed by 277, over 1 248 more EE designated employers were inspected and over 2% more compliance achieved compared to 2007/08 KRA 3: PROMOTE EQUITY IN THE WORKPLACE 22

28. KRA 3: Promote Equity in the Work Place KRA 3: Promote Equity in the Work Place POTotal number of designated employers (identified within respective Province) Total no of designated employers inspected Total no complying procedurally within 90 days % EC 18012412198% FS 10001497135090% GN 10001493109273% GS 1244104486783% KZN 42892362204787% LP 84356046783% MP 63794881786% NC 90850636672% NW 105037128276% WC 136381870386% TOTAL 125149723811283%

29. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. At least 180 000 workplaces are inspected and 80% compliance levels achieved within 90 Days of inspection 1.1 The compliance level increased by 5% from 78% in 2007/08 to 83% in 2008/09 although the total number of workplaces inspected decreased by 46 968 from 200 665 in 2007/08 to 153 697 in 2008/09 1.2 The volume of workplaces inspected and the optimal utilisation of resources remains a challenge 1.3 To monitor and enforce compliance, a total of 23 297 undertakings, 1 225 improvement notices, 9 908 contravention notices, 1 255 prohibition notices and 2 251 compliance orders were issued KRA 4: PROTECTING VULNERABLE WORKERS 23 KRA 4: PROTECTING VULNERABLE WORKERS 23

30. KRA 4 : Protect Vulnerable Workers Province s Total number of inspectors Total workplaces inspected Undertaking s NoticesComplianc e orders No of employer complyin g within 90 days % complianc e within 90 days Improvem ent Contraventio n Prohibition EC71171441 91122800545201474386% FS61125091 8032132945931117489% GN73228921 96125299715191882782% GS115193691 1452379862875351607683% KZN127271133 2021382 8862353282227282% LP59100341 874456193450706470% MP60118131 418171927149211053289% NC3061691 0901271 0695415465575% NW57102853 621140786215317805278% WC93163695 27272509313631192373% TOTAL74615369723 2971 2259 9081255225112531882%

31. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. Coordinate and monitor the investigation and settlement of reported labour complaints/disputes to ensure 80% settlement rate within 90 days. 1.1 A total of 178 863 (79%) of the 226 297 labour complaints received were investigated and finalised within 90 days against a target of 80% compared to 173 057 (79%) of the 220 191 complaints received finalised. 1.2 The 80% target was missed by 1%, however over 6 106 more complaints were received and over 5 806 more complaints were finalised compared to 2007/08 although the percentage settlement remains the same at 79%. KRA 4: PROTECTING VULNERABLE WORKERS 24 KRA 4: PROTECTING VULNERABLE WORKERS 24

32. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1.Ensure that at least 2 000 of reported OHS incidents are finalised within 90 days as per directives. 1.1 A total of 2 956 (56%) of the 5 326 OHS incidents reported were investigated and finalised within 90 days against a target of 2 000 KRA 4: PROTECTING VULNERABLE WORKERS 25 KRA 4: PROTECTING VULNERABLE WORKERS 25

33. KRA 4 : Protect Vulnerable Workers PO Reported OHS incidents Total OHS incidents investigated Total number of complaints settled within 90 days % EC177145 125 71% FS227 191 84% GN346265 231 67% GS41395 32 8% KZN2 7492 627 1424 52% LP14154 13 9% MP151147 142 94% NC3037 9 30% NW305226 231 76% WC787682 558 71% TOTAL5 3264 5052 95656%

34. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURES ACTUAL STATUS 1. Targeted advocacy and blitz inspections to inspect at least 10 000 workplaces and to decrease work place incidents in the High Risk Industries by at 1.5 Advocacy and blitz inspections programme developed targeting high risk industries and 10 285 inspections were conducted:  Construction - 2 458,  Iron and Steel - 2 449,  Food and Beverage - 2 701,  Agriculture - 2 677 against a target of 10 000 KRA 4: PROTECTING VULNERABLE WORKERS 27 KRA 4: PROTECTING VULNERABLE WORKERS 27

35. KRA 4 : Protect Vulnerable Workers POBlitz inspections ConstructionIron & steelFood % bevAgriculture EC4249197187581 FS4119203192329 GN4704420479 GS424813513968 KZN4761707700354 LP4187356278244 MP4437313325313 NC4167205365390 NW4112197225259 WC4108928660 TOTAL42 4582 449 2 677

36. Programme 3: Employment and Skills Development Services and Human Resources Development (ESDS)

37. Programme 3: Employment and Skills Development 31 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 2008/09-2010/11 Measurable Objectives:  Develop the skills of work-seekers by training 90 000 unemployed persons placing 70% in employment for NSF Projects and for SETA’s (Learners in critical skills)  Provide skills development support through National Skills Fund (NSF) and Sector Education and Training Authority (SETA) funding to SMMEs, NGOs and co-operatives

38. Programme 3: Employment and Skills Development 32 Services / Human Resources Development (ESDS Programme 3: Employment and Skills Development 32 Services / Human Resources Development (ESDS) ENE 2008/09-2010/11 Measurable Objectives: (Continued)  Provide top-up funding to SETAs, the National Student Financial Aid Scheme (NSFAS) and the National Research Foundation to assist 26 000 unemployed learners to enter scarce and critical skills programmes in learnerships, apprenticeships, internships, bursaries and skills programmes  Provide funding through partnerships with Umsobomvu Youth Fund and the Small Enterprise Development Agency (SEDA) to support 3 000 youth in new venture creation projects  Ensure that 70 % of new ventures are sustainable after completion of the programme through training and mentorship

39. Skills Levies collected and transferred to SETAs and NSF 33 Levy Year 2008 /09 Year Collected April 2008 – March 2009 Total Amount Collected R Amount transferred to SETAs R Amount transferred to NSF R Grand Total 7 333 171 0495 866 536 8371 466 634 212

40. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implementation at INDLELA 1.1 1 200 small BEE enterprise and cooperatives receive skills dev support. 1.2 10 000 people participate in trade tests at INDLELA 1.3 40% pass rate for trade tests 1.4 18 693 artisans registered for training by SETA’s 1.1 2 251 1.2 8 337 assessed 3 392 passed 1.3 41% pass rate 1.4 17 228 KRA 2: Enhance Skills Development 34

41. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the National Skills Fund (NSF) and Admin Transfers Achieve NSF strategic projects targets in support of Provincial Growth and Development Strategies 1.1 16 000 unemployed people assisted to enter learning programmes 1.2 8 000 people completed learning programmes 1.3 4 500 undergrad bursaries awarded 1.4 1 500 post grad bursaries were awarded 1.5 40 000 NSF funded/ABET learners recruited and commenced learning programmes 1.1 41 336 1.2 31 003 1.3 1 752 1.4 997 1.5 21 413 KRA 2: Enhance Skills Development 35

42. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the NSF Sector Education and Training Authorities (SETA’s) 1.1 90 000 unemployed people trained (Training suspended in provinces due to misaligned procurement procedures with DoL procedures – AG query) 1.2 63 000 trained unemployed people placed in employment (Recession resulted in poor job placements) 1.3 400 community based co- operatives receive skills support funded by NSF 1.4 5 865 SMME’s, NGO’s Co-ops and small BEE enterprises receive skills support 1.1 15 169 trained @ R190.5 million 1.2 8 885 1.3 367 1.4 7 601 KRA 2: Enhance Skills Development 36

43. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the Sector Education and Training Authorities (SETA’s) 1.1 44 640 ABET employed people trained 1.2 56 506 workers to be assisted to enter scarce & critical skills in learnerships, apprenticeships, internships & bursaries 1.3 43 316 unemployed people assisted to enter scarce & critical skills in learnerships etc. 1.4 9 088 learners in critical skills (HET & FET institutions) placed for experience locally & internationally 1.5 3 276 youth trained in New venture Creations (Seed capital is a challenge, so is youth inexperience in such ventures) 1.1 40 851 registered 14 221 completed training 1.2 103 293 workers assisted to enter 109 270 completed learning 1.3 60 125 unemployed enter skills 63 658 completed 1.4 13 148 placed in work places 1.5 3 900 youth trained 475 of the ventures are sustainable KRA 2: Enhance Skills Development 37

44. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the Sector Education and Training Authorities (SETA’s) * 1.1 15 139 Sector Development Facilitators & Specialists trained 1.2 3 480 large firms & 4 791 medium firms supported through skills dev. 1.3 25 004 small levy- paying firms supported through skills dev. 1.4 84 govt depts. spend at least 1% of personnel budget on training 1.5 1 406 small BEE and BEE co- ops supported with skills dev. * 32 companies received Ministerial awards for outstanding contribution to national skills dev. 1.1 18 836 trained 1.2 4 284 large firms 5 670 medium firms 1.3 26 736 small levy- paying firms supported 1.4 65 (77% of the target) 1.5 2 251 supported KRA 2: Enhance Skills Development 38

45. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the Sector Education and Training Authorities (SETA’s) 1.1 Annual increase of people who benefit from work place skills development support – training for employment & re-employment 1.2 Business Process Outsourcing and Off-shoring (DTI investment incentive programme) implemented. 1.3 R60 million for above programme committed over 3 years & 12 440 workers targeted to benefit 1.1 2 069 more new workers Total 6 156 trained Total expenditure: R19,77 million 45 SMME’s benefitted 1.2 151 trained 7 applications approved, 1 pending. 1.3 One claim of R1, 596 million paid KRA 2: Enhance Skills Development 39

46. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Number NSDS 2005-2010: Year four targets implemented through the National Skills Authority (NSA) & National Skills Fund (NSF) 1.1 92 provider institutions accredited to deliver New Venture Creation qualification 1.2 Improve the quality of service delivered by skills development institutions 1.3 To improve stakeholder capacity & commitment to the National Skills Development Strategy (NSDS), NSF availed R20 million to the 18 constituencies of the NSA for capacity building of their members 1.1 138 institutions accredited 1.2 The refined Quality Council for Trades & Occupations (QCTO) policy & establishment of the body 1.3 Only 7 constituency organisations took up the funding offer and 3 263 members benefitted. R12, 210, 554 was disbursed KRA 2: Enhance Skills Development 40

47. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Promoting productivity knowledge, awareness & skills within the non-formal economy Productivity SA 1.1 26 education and training providers and productivity trainers accredited 1.2 1 800 emerging entrepreneurs trained in productivity improvement competencies 1.3 120 Skills Development Facilitators trained in productivity 1.4 530 managers and workers trained to enhance productivity competencies in public and private enterprises 1.5 120 future forums established at companies with turn around solutions * (No turn around strategies implemented to prevent job losses due to financial constraints) 1.1 55 1.2 910 1.3 78 1.4 569 1.5 105 KRA 2: Enhance Skills Development 41

48. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Improving access to employment opportunities, expand support for entrepreneurial activity and self employment Umsobomvu Youth Fund 1.1 288 youth advisory centres established (full service points & kiosks) 1.2 38 500 young people acquire skills through the NYS projects 1.3 6 000 unemployed graduates enrolled in training programmes to improve access to employment 1.4 Value of business opportunities sourced is R 830 million 1.5 14 400 jobs created and sustained through SME’s (Placement in employment difficult & not all UYF projects were approved due to financial constraints ) 1.1 151 1.2 34 000 1.3 700 1.4 R 39 667 960 1.5 12 980 KRA 2: Enhance Skills Development 42

49. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Promoting and accelerating quality training for all in the work place through the National Skills Fund (NSF) 1.1 Work Place Skills Development Support Programme (WSDSP) implemented with 10% increase of beneficiaries 1.2 90 000 unemployed people trained 1.1 Total workers trained increased to 6 156 (2008/09) from 3 378 (2007/08) = 82% increase Black: 88% Female: 38% 45 SME benefitted (53 claims paid ) – Total expenditure R19, 77 million 1.2 Total expenditure: R190 136 million Black: 98% Women: 54% People with disabilities (PWD): 2% Youth: 61% KRA 2: Enhance Skills Development 43

50. SUB-PROGRAMME OUTPUT PERFORMANCE MEASURESACTUAL STATUS TARGET 1. Promoting and accelerating quality training for all in the work place through the National Skills Fund (NSF) 1.1 400 community based co- operatives supported through skills dev. 1.2 Funding of bursaries in scarce skills – 4 500 undergraduates 1 500 post graduate bursaries awarded 1.1 Total expenditure: R16,2 million (77% of budgeted amount of R21 million) Blacks: 95% Females:65% Youth: 41% PWD: 4% 1.2 4 869 undergraduate bursaries awarded through the NSFAS 997 post graduate bursaries awarded through the NRF R531 million grants allocated to the SETA’s KRA 2: Enhance Skills Development 44

51. Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)

52. Programme 4: Labour Policy and Labour Market 46 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. ENE 2008/09-2010/11 Measurable Objective:  Improve employment equity by inspecting additional Johannesburg Stock Exchange listed companies each year for substantive compliance with legislation.

53. Programme 4: Labour Policy and Labour Market 47 Programmes Performance Indicator PastCurrentFuture Projections 2006/072007/082008/092009/10 Percentage of top 100 Johannesburg Securities Exchange (JSE) listed companies assessment for employment equity 6 companies (6%) 26 companies (26%) 74 companies (74%) Follow up on the 106  In 2009/10 DoL will conduct follow ups on the total 106 companies assessed in the previous 3 years.  Some companies will be assessed at provincial level as part of building this capacity in the provinces.

54. Programme 5: Social Security Unemployment Insurance Fund (UIF) Compensation Fund (CF) Both the CF and the UIF publish their own Annual Reports in terms of the Public Finance Management Act.

55. Structure of Presentation Department of Labour 1.Key Issues (Achievements/Challenges) 2.2008/09 Expenditure Information 3.Auditor-General Report

56. Structure of Presentation Vote 15: Labour

57. 2008/09 Expenditure Information In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year, expenditure to the value of R1,642 billion is reflected as having been defrayed against the Adjusted Vote of R1,747 billion. This represents an expenditure level of 94% of the Vote. Expenditure per Main Division of the Vote is recorded as follows: Main DivisionAdjusted Allocation Expenditure As at 31 March 2009 % Administration Service Delivery ESDS/HRD LP&LMP Social Insurance R 384 207 R 702 331 R 178 465 R 472 102 R 10 501 R 372 906 R 621 350 R 172 489 R 469 730 R 6 366 97.05% 88.46% 96.65% 99.49% 60.62% TotalR1 747 606R1 642 84194% R’000

58. Structure of Presentation National Skills Fund

59. 2008/09 Expenditure Information In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year, Skills Levies to the value of R7 234 billion were collected and disbursed. The disbursement of the Levies is recorded as follows: Details of direct charges against the National Revenue Fund Adjusted Allocation Expenditure As at 31March 2009 % Sector Education and Training Authorities (SETA’s) National Skills Fund R5 787 308 R1 446 827 R5 787 308 R1 446 827 100% TotalR7 234 135 100% R’000

60. Structure of Presentation Sheltered Employment Factories

61. 2008/09 Expenditure Information In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year, transfers to the value of R102 776 million were made: The disbursement of the transfers is recorded as follows: Details of Non-profit InstitutionAdjusted Allocation Expenditure As at 31March 2009 % Subsidised Workshops for the Blind Subsidised Work-centres for the Disabled R 7 365 R 95 411 R 7 365 R 95 411 100% TotalR102 776 100% R’000

62. Structure of Presentation Auditor-General Reports

63. Structure of Presentation Vote 15: Labour

64. Auditor-General Report – Vote 15: Labour In the Auditor-General’s report for Vote 15: Labour for the 2008/09 financial year, the Auditor-General expressed a qualified opinion. The basis for the qualified opinion relates to Capital Assets, as well as Public Private Partnership (PPP) Assets. The Auditor-General recognised that the Department had established an Asset Management Unit however, the audit still revealed the following shortcomings in the management and control of assets and the asset register: A number of assets on the asset register were included at incorrect values The asset register was not adequately maintained in accordance with the requirements of National Treasury Regulations The reconciliation of the prior year balance of R106 million with the asset register submitted for the period ended 31 March 2007 and 2008, was still outstanding.

65. Auditor-General Report – Vote 15: Labour In respect of the PPP assets the Auditor-General indicated that the Department does not maintain an adequate asset register in accordance with the requirements of the National Treasury, which resulted in the following significant shortcomings: Sufficient an appropriate audit evidence for the adjustment to the prior year closing balance amounting to R14,0 million as disclosed in note 26 to the financial statements, could not be submitted for audit. Not all current year’s additions to the PPP assets were accounted for in the asset register.

66. Structure of Presentation National Skills Fund

67. Auditor-General Report – NSF In the Auditor-General’s report for the National Skills Fund for the 2007/08 financial year, the Auditor-General indicated that opinion expressed in respect of the NSF would not be qualified. The Auditor-General did however raise matters of emphasis relating to the following: Irregular expenditure as disclosed in note 17 to the financial statements (R648,406,000) was incurred as a result of not following proper tender processes; As disclosed in note 24 to the financial statements, the corresponding figures for the 31 March 2008 financial statements have been restated as a result of the change in the basis of the financial reporting framework from the modified cash basis to GRAP and GAAP as described in accounting policy note 1 to the financial statements. The effect of the restatement is an increase to the opening accumulated surplus for 31 March 2009 by R42,033,000.

68. Structure of Presentation Sheltered Employment Factories

69. Auditor-General Report – SEF In the Auditor-General’s report for Vote 16: Labour for the 2008/09 financial year, the Auditor-General expressed a qualified opinion in respect of the Sheltered Employment Factories. The following Auditor-General based the qualification on the following: Inventories are carried in the balance sheet at R15.8 million. Included in this amount is direct labour and manufacturing overhead costs of R1.5 million which are allocated to work in progress and finished goods for wood and metal products using an historic allocation rate as the basis. No evidence regarding the assumptions used to calculate the allocation rate could be obtained and therefore the Auditor-General was unable to evaluate these assumptions to be able to determine the accuracy of the calculations. The Sheltered Employment Factories’ records did not permit the application of adequate alternative procedures regarding this inventory. Consequently, the Auditor- General did not obtain sufficient appropriate audit evidence to satisfy himself as to the valuation of wood and metal work in progress and finished goods.

70. Auditor-General Report – SEF The Auditor-General also raised matters of emphasis relating to the following: Irregular expenditure as disclosed in note 26 to the financial statements (R3,702,440) was incurred due to non-adherence to practice note number SCM 1 of 2003, issued by National Treasury, which requires a tax clearance certificate to be obtained as part of the standard bid documents when awarding contracts; As disclosed in note 27 to the financial statements, the Sheltered Employment Factories incurred fruitless and wasteful expenditure amounting to R278,514 on cell phone contracts and storage costs.

71. Thank you