1. Select Committee: 5 th May 2010 Progress Report: Business Plan / Strategic Plan 2009 – 10 Progress Report: Business Plan / Strategic Plan 2009 – 10 Overall Responsibility: Director General: Mr J Manyi Overall Responsibility: Director General: Mr J Manyi

2. ITEMTOPIC 1. 2. 3. 4. 5. The DoL Strategic thrust geared for service delivery Programmes / Branches of the DoL Key Result Areas of the DoL (KRA’S) - Targets  Progress  Constraints  Corrective Measures  Financial Performance Challenges of the Department Assistance by the Select Committee Progress Report as of 31 st December 2009 2

3. The Core Functions of DoL 3 The Core Functions of DoL 3  Employment Services (ES) and  Inspection and Enforcement Services (IES)

4. Programme 1: Administration  Chief Operations Officer  Internal Audit  Risk Management  Security Services  Communication  Human Resources Management  Information Technology  Legal Services  Chief Financial Officer - Financial Management - Financial Liaison: Public Entities - Office Administration and Supply Chain Management Programme 2: Inspection and Enforcement Service (IES) Programme 3: Public Employment Services (PES) Programme 4: Labour Policy and Labour Market Programmes (LP & LMP) Programmes / Branches of the DoL 4

5. DoL Strategic / Business Plan 2009/10 5 DoL Strategic / Business Plan 2009/10 5  Key aspects of the DoL’s Strategic Plan / Business Plan 2009/10  Targets  Performance against key targets  Failure to achieve targets (constraints) and the reasons  Corrective Action

6. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators as of the 31 st Dec 09 1. 6 500 permanent jobs registered on the Public Employment Services (PES) Database. (See Annexure 1 for PES breakdown per Province: Report attached)  6 123 formal/ permanent jobs were registered on ESSA.  21 074 short term job opportunities were registered on ESSA.  1 904 learning opportunities were registered on the ESSA database Public Employment Services (PES) KRA 1: Contribute to Employment Creation 6

7. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators 2. At least 65% of employment opportunities on the database are filled within 90 days.  6 845 registered job opportunities were filled within 90 days.  41 210 unemployed people were provided with career’s information.  5 937 job seekers assessed.  13 082 job seekers were counseled.  18 self help career counselling information brochures were printed and distributed. PES KRA 1: Contribute to Employment Creation 7

8. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators 2. Employment opportunities on the database are filled through partnerships  Partnerships developed with the Bombela Municipality is yielding positive results for the unemployed people in the Mpumalanga area.  Partnerships developed with Sasol resulted in the latter using DoL database to recruit for all their staff requirements.  Partnerships is being extended to their big Sasol plant in the Free State. PES KRA 1: Contribute to Employment Creation 8

9. KRA 1: Contribute to Employment Creation 9 Public Employment Services (PES) Constraints:  ESSA system was not fully functional and the economic recession impacted on the number of opportunities referred to DoL.  45 Employment Services counsellors employed to service only 45 labour centres out of a total of 125. Corrective Action:  Optimised ESSA System went live as from 23 March 2010.  The DoL will increase networking with Government Departments and the Private sector to use DoL ESSA.

10. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators 3. Draft Public Employment Services Policy and Bill finalized by March 2010.  Draft Bill has been developed.  PES Organogram for HO component approved. PES KRA 1: Contribute to Employment Creation 10

11. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators 4. Response to the economic crisis through the training of the layoffs  R2,4 billion (R1.2 billion NSF + R1.2 billion UIF) Training Lay Off Scheme assists companies willing to participate in alternatives training schemes instead of retrenching workers.  By end March 2010 companies, along with the associated trade unions, entailing approximately 3,286 workers were participating in the scheme.  The CCMA has, through its interventions, saved 16 530 jobs in the period January 2009 to 31 March 2010. PES KRA 1: Contribute to Employment Creation 11

12. KRA 1: Contribute to Employment Creation 12 KRA 1: Contribute to Employment Creation 12 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators 4. Response to the economic crisis  A pilot project involving 740 retrenched and unemployed learners at a cost of about R50 million is currently underway in Gauteng.  The project aims to test how best the UIF and NSF can facilitate re-entry into employment.  The pilot project will be evaluated and depending on its success rate, it may be rolled out to other Provinces. PES

13. KRA 1: Contribute to Employment Creation 13 KRA 1: Contribute to Employment Creation 13 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators 4. Response to the economic crisis  An amount of R29 million was allocated to Productivity SA under the NSF towards the entities Social Plan programme to develop turn around strategies to companies facing possible closures due to tough competition or economic crisis.  138 future forums were established;  9 826 jobs impacted upon;  82 strategies developed;  161 proactive future forums established;  91 early warning systems established and  8 desktop research conducted on sectors. PES

14. KRA 1: Contribute to Employment Creation 14 KRA 1: Contribute to Employment Creation 14 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators 4. Save jobs through strategic investments  The Department has set aside under the UIF an amount of R2 billion for investment with the Industrial Development Co-operation (IDC).  The IDC will in turn invest in industries that are willing to save jobs or to invest in new job creation ventures. UIF

15. KRA 1: Contribute to Employment Creation 15 KRA 1: Contribute to Employment Creation 15 Constraints  Slow uptake - retrenchment packages preferred.  Employers not willing to provide detailed information confirming their distress status to the CCMA.  Insufficient marketing of the Training Layoff Scheme (TLS). Corrective Action  Improved marketing of the TLS scheme.  Address identified challenges with NEDLAC social partners.  Review or add categories of companies and workers to be assisted.

16. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Amendment Bill on EEA finalised by 31 March 2010. Follow-ups conducted on 60 JSE listed companies DG Reviewed by 31 March 2010  The Bill is being finalised for approval.  67 companies have been reviewed.  Copies of DG signed letters were sent to the CEO’s of 67 companies approving their respective EE Plans. LP & LMP KRA 2: promote Equity in the Labour Market 16

17. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Monthly Blitz Inspections conducted Enforce compliance with all labour legislation to 75% of inspected workplaces by 2011/12 (See Annexure 2 and 2.1 for breakdown per province)  122 459 work places inspected and 80% compliance levels were recorded. SD (IES) KRA 4: Protecting vulnerable workers 17

18. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Conduct focused advocacy in inspections and enforcement in the Hospitality and Security sectors. Each Province to identify companies and conduct inspections in these sectors for focused inspections as follows: Hospitality 30 Security 20 (See Annexure 2 and 2.1 for breakdown per province)  3 741 work places were inspected in the hospitality sector with 44 % compliance levels recorded.  1 560 work places were inspected in the security sector (717 did not comply with the sectoral determination). SD (IES) KRA 4: Protecting vulnerable workers 18

19. Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Enhance the visibility of the Inspectorate through improved corporate image.  The procurement of the Green cars has been finalized, cars have already been serviced and are being branded.  Uniform for the inspectors have been procured from the Sheltered Employment Factories. SD (IES) KRA 4: Protecting vulnerable workers 19

20. KRA 4: Protecting vulnerable workers 20 KRA 4: Protecting vulnerable workers 20 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Submit an options paper on regulation of labour brokers to the Minister of Labour and Table paper at NEDLAC  A concept paper on labour broking was tabled at NEDLAC for discussion.  3 Task Team meetings were attended to discuss labour broking. There were areas of agreement and disagreement.  Draft legal amendments on labour broking are being finalised. LP & LMP

21. KRA 4: Protecting vulnerable workers 21 KRA 4: Protecting vulnerable workers 21 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Draft Bills on LRA & BCEA released for public comment  LRA and BCEA Bills are being finalised. LP & LMP

22. Strengthen Institutional Capacity of DoL 22 Strengthen Institutional Capacity of DoL 22 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Develop an internationally benchmarked DoL organisational design through the ILO Technical Assistance The ILO after receiving the Technical report and this led to the following outcomes:  The DoL Service Delivery Model and the management structure at HQ with the key functional areas of labour administration systems, benchmarked with ILO standards and international best practice.  Clarifying the organisation and role of IES and designing the IES Branch structure at HQ.  Clarifying the organisation and role of PES and designing the PES Branch structure at HQ.  Clarifying the organisation and role of LP & LMP at HQ.  Creation of the office of the COO. SD (IES)

23. Strengthen Institutional Capacity of DoL 23 Strengthen Institutional Capacity of DoL 23 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Finalise the transfer of Skills Development to Higher Education and Training Establish one Gauteng Provincial Office Reduce audit queries and improve corporate governance  The transfer has been finalised.  Minister has approved the consolidated provincial office.  Cannot be measured at this point : Only one interim report from the AG – for HQ released so far.  Interim report from the AG, for all the provinces still outstanding. A clear picture of the audit queries will emerged once full report is released. Admin CFO

24. Strengthen Institutional Capacity of DoL 24 Strengthen Institutional Capacity of DoL 24 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Reduce the vacancy rate  As of 26 March 2010 the PERSAL report reflect about 14% vacancy rate after taking out the vacant posts transfer to DHET. (Vacancy rate includes posts that are in process of being filled).  As of 26 March 2010 vacancy rate reduced to 6.76 % compared to 15.94 % on the 30 September 2009. (The 6.76% vacancy rate excludes posts that are in process of being filled).  A significant number of these positions will be filled as new incumbents assume duty on the 1 st April 2010. Admin

25. Strengthen Institutional Capacity of DoL 25 Strengthen Institutional Capacity of DoL 25 Q4 TARGETPERFORMANCE MEASURESIMPL. BRANCH STATUS Q3 Indicators Improve the management of the IT PPP Contract with Siemens Identify and document all outstanding items as agreed in the PPP and agree on an implementation plan to finalise these within the contract period  Plans are in place to accelerate delivery of improvement systems and DDG’s are championing the implementation of the plans. Admin

26. Expenditure – 31 MARCH 2010 26 Expenditure – 31 MARCH 2010 26  Adjusted Budget :2009/10  Main divisions of the vote( Including ESDS & HRD): 2009/10 Outcome.  Main divisions of the vote( Excluding ESDS & HRD): 2009/10 Outcome  Spending Pressures  Percentage variance and reasons  DoL Medium Term Budget

27. Adjusted Budget :2009/10 27 Adjusted Budget :2009/10 27

28. Main divisions of the vote (Including ESDS & HRD): 28 2009/10 Outcome Main divisions of the vote (Including ESDS & HRD): 28 2009/10 Outcome

29. Main divisions of the vote (Excluding ESDS & HRD): 29 2009/10 Outcome Main divisions of the vote (Excluding ESDS & HRD): 29 2009/10 Outcome

30. Spending Pressures 30 Spending Pressures 30 The following amounts have been vired to institutions associated with the DoL:  R62 million to the Commission for Conciliation Mediation and Arbitration (CCMA).  R17.9 million to the SEF.  R5 million to NEDLAC.

31. Economic classification( Including ESDS & HRD): 31 2009/10 Outcome Economic classification( Including ESDS & HRD): 31 2009/10 Outcome

32. 2009/10 Outcome 32 2009/10 Outcome 32 Current payment:  Slow process on filling of vacancies lead to slow spending in Compensation of Employees.  Amount invoiced by DPW on Rental and Leases exceeded what was originally budgeted. Transfers and subsidies:  Claims for injuries on duty for civil servants less than anticipated.  Unexpected severance packages taken by officials that could not have been foreseen during the 2009 ENE process lead to over expenditure. Capital payments:  Delays have been experienced with regard to Capital projects on office buildings for Labour Centres. NB: Under expenditure amounting to R16,3 million from Programme 3: ESDS/HRD was granted a blanket roll-over to the Department of Higher Education and Training as start up capital.

33. DoL MEDIUM TERM BUDGET 33 DoL MEDIUM TERM BUDGET 33

34.  Key challenges facing the DoL  How are these being addressed

35. CHALLENGES 35 CHALLENGES 35 1. Distinct economy patterns – One is advanced and industrialised and well developed with highly skilled people, the other is characterised by high levels of poverty, poor labour standards and informal work relations. 2. High levels of unemployment – Two-fold crisis:  Unskilled most likely to loose jobs during periods of employment contraction and least likely to be hired.  The youth which constitutes 75% of the unemployed. 3. Inequalities and unfair discrimination in the work place despite the introduction of progressive labour market policies since 1994. 4. Changing nature of work to atypical forms of employment such as casual labour, temporary and seasonal work, labour broking, outsourcing and subcontracting. 5. Domestic and cross border migration:  People from rural areas (mostly unskilled) migrate to urban areas in search of employment.  Economic refugees settled in South Africa hoping to find employment.

36. CHALLENGES 36 CHALLENGES 36 6. The requirement of very specific skills for redress: Insufficient integration between supply and demand of skills is adding to a large number of unemployed graduates. 7. Strengthening labour market institutions and agencies:  Compliance monitoring and enforcement structures (Labour Inspectorate Services, CCMA and Bargaining Councils).  Increasing our capacity to carry out our mandate.  Ensuring efficient and effective system of OHS fully integrated with a system of compensation for occupational injuries and diseases.  Non- compliance breeds unfair competition.  Interventions to mitigate new forms of vulnerability mainly through atypical forms of work. 8. Development and implementation of effective instruments for constant performance monitoring and review of the impact of labour market policies.

37. Strategic Plan/Business Plan 2010/11 37 Strategic Plan/Business Plan 2010/11 37  Measurable Objectives (Key Targets) for 2010/11 as reflected in our strategic plan 2010 - 2015

38. Inspection and Enforcement Services (IES) 38 Inspection and Enforcement Services (IES) 38 Measureable objectives:  Ensure decent work principles are adhered to by enforcing compliance with labour legislation by employers and employees by 2011, through regular inspections.  Achieve a reduction in the socio economic cost of workplace injuries and diseases incidents by 2010/11 through regular audit and inspections to ensure the health and safety of workers.  Improve compliance with all labour legislation related to the protection of vulnerable workers in targeted sectors, including small, medium and micro enterprises, through targeted campaigns and regular inspections.

39. Inspection and Enforcement Services (IES) 39 Inspection and Enforcement Services (IES) 39 Measureable objectives: (Cont)  Ensure transformation of the labour market by achieving compliance with the Employment Equity Act (1998) by 2010/11 through awareness raising and regular inspections and audits.  Reduce silicosis by completing the baseline study on the prevalence of silicosis in the non-mining sector by April 2010.  Reduce exposure to silica by 20% by 2014 by: Establishing provincial silicosis working groups to conduct awareness raising road shows on the dangers of silica dust. Assisting companies to develop programmes for the control of exposure to silica dust. Conducting regular inspections. Complete baseline study on prevalence of silicosis in non-mining sectors.

40. Measureable objectives: (cont)  Reduce noise related injuries by reducing exposure to noise at the workplace by 20% by 2014 through the use of baseline study, inspections and awareness campaigns.  Reduce workplace injuries by at least 2% by: Identify 20 major high risk sector companies for full compliance auditing in 2010/11. Improving compliance in the high risk sectors by 80% by 2014 by conducting inspections. Inspection and Enforcement Services (IES) 40 Inspection and Enforcement Services (IES) 40

41. Public Employment Services (PES) 41 Public Employment Services (PES) 41 Measureable objectives:  Facilitate the entry and re-entry of job seekers into the labour market through pro-active measures to address unemployment and poverty by finalising the Public Employment Services Policy and the Employment Services Bill by September 2010.  Reduce unemployment by placing unemployed people in decent work through: Filling at least 60% opportunities on the public employment services database within 30 days of registration of job opportunities on the system by 2011/12. Referring at least 70% of unemployed people registered on the public employment services database to career counselling, training or workplace opportunities or sheltered employment factories, Unemployment Insurance Fund and the Compensation Fund within 30 days by 2011/12.

42. Measureable objectives: (cont)  Assist in reducing unemployment by providing employment services interventions to distressed companies within 5 days of receiving notification.  Facilitate the employment of 500 people with disabilities and/or veterans by persuading so that at least 30% of government department orders are purchased from service products (sheltered employment factories) by the end of March 2011.  Facilitate the achievement of employment equity target for disability by businesses by establishing a pilot to train and place at least 50 learners per shelter employment factory in the mainstream economy by the end of March 2011. Public Employment Services (PES) 42 Public Employment Services (PES) 42

43. Labour Policy and Labour Market Programmes 43 Labour Policy and Labour Market Programmes 43 Measureable objectives: Improve the status of vulnerable workers by:  Reviewing the working conditions of 3 industrial and economic sectors, (civil engineering, hospitality, and contract cleaning), learnership and the ministerial determination on conditions of employment for employees in expanded public works programmes by March 2011.  Establishing the feasibility of promulgating sectoral determinations in the unskilled labour and welfare sectors by March 2011.  Developing a report on the norms and bench marks for proportionate income differentials by March 2011.

44. Measureable objectives: (cont)  Address developments in the labour market, including labour broking and legislative compliance and enforcement, by publishing amendment bills to the labour relations act (1995), the basic conditions of employment act (1997) and the employment equity act (1998) by March 2011.  Strengthen employment equity implementation and enforcement mechanisms by conducting a director-general review at 60 JSE security exchange listed companies by March 2011. Labour Policy and Labour Market Programmes 44 Labour Policy and Labour Market Programmes 44

45. Measureable objectives: (cont)  Create decent work and sustainable livelihoods by developing and implementing a research, monitoring and evaluation agenda, which includes providing labour market information and statistical analysis and facilitating compliance with international obligations and multilateral and bi-lateral relations by March 2011.  Manage the implementation of the LRA (1995) by extending collective agreements and registering or de-registering labour organisations within 90 days. Labour Policy and Labour Market Programmes 45 Labour Policy and Labour Market Programmes 45

46.  Assistance to the DoL by the Select Committee on Labour and Public Enterprise

47. 1.Inputs on how the DoL can improve service delivery, particularly in the provinces. 2.Ensure parliamentary constituency offices liaise and form partnerships with DoL provincial, regional offices and Labour Centres in the various provinces. 3.The DoL encourages site visits to its development projects in the various provinces. 4.The Committee should invite the DoL officials in their community outreach initiatives for effective partnership in service delivery improvement. 5.Regular feedback from the Committee regarding service delivery issues that affect the DoL in the provinces. 6.Orientation of the Select Committee on the reconfigured DoL. Assistance by the Select Committee 47 Assistance by the Select Committee 47

48. Thank you