DG: Mid Term Review 2006 December

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Progress Report Business Plan / Strategic Plan
2009 10
Select Committee 5th May 2010
Overall Responsibility Director General Mr J
Manyi
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Progress Report as of 31st December 2009
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ITEM TOPIC
1. 2. 3. 4. 5. The DoL Strategic thrust geared for service delivery Programmes / Branches of the DoL Key Result Areas of the DoL (KRAS) - Targets Progress Constraints Corrective Measures Financial Performance Challenges of the Department Assistance by the Select Committee

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The Core Functions of DoL
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• Employment Services (ES) and
• Inspection and Enforcement Services (IES)

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Programmes / Branches of the DoL
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• 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)

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DoL Strategic / Business Plan 2009/10
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• Key aspects of the DoLs Strategic Plan /
  Business Plan 2009/10
• Targets
• Performance against key targets
• Failure to achieve targets (constraints) and
  the reasons
• Corrective Action

6
KRA 1 Contribute to Employment Creation 6
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators as of the 31st Dec 09 IMPL. BRANCH STATUS
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)
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KRA 1 Contribute to Employment Creation 7
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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 careers information. 5 937 job seekers assessed. 13 082 job seekers were counseled. 18 self help career counselling information brochures were printed and distributed. PES
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KRA 1 Contribute to Employment Creation 8
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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
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KRA 1 Contribute to Employment Creation
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• 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.

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KRA 1 Contribute to Employment Creation 10
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
3. Draft Public Employment Services Policy and Bill finalized by March 2010. Draft Bill has been developed. PES Organogram for HO component approved. PES
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KRA 1 Contribute to Employment Creation 11
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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
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KRA 1 Contribute to Employment Creation
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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
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KRA 1 Contribute to Employment Creation
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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
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KRA 1 Contribute to Employment Creation
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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
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KRA 1 Contribute to Employment Creation
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• 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.

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KRA 2 promote Equity in the Labour Market
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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 CEOs of 67 companies approving their respective EE Plans. LP LMP
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KRA 4 Protecting vulnerable workers 17
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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)
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KRA 4 Protecting vulnerable workers 18
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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)
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KRA 4 Protecting vulnerable workers
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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)
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KRA 4 Protecting vulnerable workers
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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
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KRA 4 Protecting vulnerable workers
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
Draft Bills on LRA BCEA released for public comment LRA and BCEA Bills are being finalised. LP LMP
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Strengthen Institutional Capacity of
DoL 22
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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)
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Strengthen Institutional Capacity of
DoL 23
Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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
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Strengthen Institutional Capacity of DoL
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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 1st April 2010. Admin
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Strengthen Institutional Capacity of DoL
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Q4 TARGET PERFORMANCE MEASURES IMPL. BRANCH STATUS
Q4 TARGET Q3 Indicators IMPL. BRANCH STATUS
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 DDGs are championing the implementation of the plans. Admin
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Expenditure 31 MARCH 2010
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• 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

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Adjusted Budget 2009/10
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Main divisions of the vote (Including ESDS
HRD) 28 2009/10 Outcome
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Main divisions of the vote (Excluding ESDS
HRD) 29 2009/10 Outcome
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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.

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

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DoL MEDIUM TERM BUDGET
33
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• Key challenges facing the DoL
• How are these being addressed

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CHALLENGES
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• 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.

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CHALLENGES
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• 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.

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

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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.

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Inspection and Enforcement Services (IES)
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• 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.

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Inspection and Enforcement Services (IES)
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• 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.

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Public Employment Services (PES)
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• 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.

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Public Employment Services
(PES) 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.

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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
Labour Policy and Labour Market
Programmes 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.

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Labour Policy and Labour Market
Programmes 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.

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• Assistance to the DoL by the Select
• Committee on Labour and Public Enterprise

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

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Thank you