VOTE 17: LABOUR

PORTFOLIO COMMITTEE PRESENTATION

MARCH 2003

DIRECTOR-GENERAL: ADV. RAMS RAMASHIA

CONTENTS

1. MISSION STATEMENT

2. 15 POINT PROGRAMME

3. STRATEGIC PLAN

4. LEGISLATION

5. STRATEGIC OBJECTIVES

6. MAIN DIVISIONS

7. BUDGET

1. MISSION STATEMENT

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MISSION STATEMENT

The Department of Labour will play a

significant role in reducing unemployment,

poverty and inequality through a set of policies

and programmes developed in consultation

with social partners, which are aimed at:

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• Improved economic efficiency and productivity

• Skills development and employment creation

• Sound labour relations

• Eliminating inequality and discrimination in the workplace

• Alleviating poverty in employment

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2. 15 POINT PLAN

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15 POINT PROGRAMME Guides our work in this five year period 15 points are:

• Policies developed by Department seek to achieve an appropriate balance between security and flexibility

• Employment creation• Implementation of Presidential Job

Summit resolutions• Implementation of skills development

strategy

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15 POINT PROGRAMME (cont)• Employment equity• Protection of vulnerable workers• Occupational health and safety• An adequate social safety net• Promoting stable labour relations• Productivity• Social partnerships• International relations• Monitoring impact of policy• Institutional restructuring• Legislative amendments

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3. STRATEGIC OBJECTIVES

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STRATEGIC OBJECTIVES4. Monitor and review labour market

policies on an ongoing basis

5. Advance Employment and Skills development

6. Promote Employment equity

7. Protection of vulnerable workers

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STRATEGIC OBJECTIVES (cont)

6. Provide Social Safety Net

7. Promote Occupational Health and Safety

8. Promote Stable Labour Relations

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4. LEGISLATION

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LEGISLATIONThe following legislation enables the Department to achieve its mission:• Basic Conditions of Employment Act• Labour Relations Act• Employment Equity Act• Skills Development Act• Skills Development Levies Act • Occupational Health and Safety Act• Unemployment Insurance Act• Compensation for Occupational Injuries and Diseases Act

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5. STRATEGIC OBJECTIVES

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1. Monitor and Review Labour Market Policies

Conduct research on:

• Co-operatives and employment creation

• Atypical forms of employment

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2. Skills development

Accelerate delivery of and access to learnerships by 50 000 unemployed young people  

Plan, implement, monitor, support and evaluate the achievement of the 2004/5 National Skills Development Strategy (NSDS) targets, including Equity Targets (85% black, 54% women and 4% people with disabilities

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2. Skills development (Cont…)

NSDS impact studies conducted

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2. Skills development (Cont…2) Support skills development initiatives

from the National Skills Fund• Spend NSF to support the achievement

of NSDS• Implement strategies for SMME,

informal and co-operatives sectors with other departments 

• Integrate skills development with Provincial and local initiatives to promote employment creation

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2. Skills development (Cont…3)

SETAs achieve targets for 2003/4• Support SETAs to achieve 2003/4

performance targets as per MOU entered into with the DoL

• Support SETAs who do not achieve the targets, where appropriate and where required, take appropriate disciplinary action

• Train 164 763 people via the strategic project fund

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3. Employment equity

Strengthen enforcement mechanisms• Improved procedural equity

compliance achieved

• Progress in substantive equity compliance monitored

• Encouraging compliance through showcasing of best practice

Analysis of income differentials• Prepare report on income differentials

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Employment equity (cont…)

Publish guidelines to assist implementation of Codes of Good Practice• HIV/ AIDS• Disability

Amend regulations to ensure appropriate data collection

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4. Protection of Vulnerable workers

Implement and enforce legislation and sectoral determinations

• Educate and enforce domestic and farm workers sectoral determinations

• Investigate working conditions in the following sectors :Forestry, minibus taxi, glass and glassware, fishing, clothing and knitting, civil engineering

• Consolidate the Department’s Inspection and Enforcement strategy

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4. Vulnerable workers (cont…)

Support Home Affairs to implement Immigration Act in respect of migrant workers in particular

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4. Vulnerable workers (cont…)

Finalize and implement national policy on the eradication of child labour

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5. Occupational health and safety Targeted advocacy and enforcement

strategy, which is sector and issue specific.

• Increase number of inspections.• Embark on joint campaigns in high risk

sectors,• Promote compliance.• Increase awareness. Support health and safety structures to

assist industry to ensure effective OHS implementation.

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5. Occupational health and safety (cont…)

Promote OHS accord in provinces

• OHS accord signed and implemented by all provinces  

Finalise the development of policy to integrate OHS competencies across government

Identify and address subtle causes of occupational diseases  

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6. Improved social safety net: Unemployment Insurance

Strengthen administrative and financial management capacity of the UI Fund

• Implement the fraud reduction strategy

Develop and implement enforcement and revenue collection strategy for categories of workers that were formerly excluded from Act

• domestic workers

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6. Improved social safety net: Unemployment Insurance

(cont…)

Improve financial viability of the Fund

Improve service delivery

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6. Improved social safety net: Compensation Fund

Improve service delivery: – Improved claims processing

• Decentralisation of claims enquiries to Provincial offices.

• Automation of the FYI IT system to process claims in alignment with PPP

– Improved revenue collection and fraud detection.

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7. Promoting stable labour relations

Develop and implement advocacy strategy for small business

Ensure bargaining councils take concerns of small business on board

Efficient registration of labour organizations and deregister non bona-fide unions and employers organizations

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7. Promoting stable labour relations (cont…)

Oversee and assist in respect of overall governance of CCMA including Essential Services Committee

Monitoring of strikes and labour market trends and events.

• Reduction in workplace conflict and industrial unrest

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7. Promoting stable labour relations (cont…2)

Promote social dialogue

Facilitate and support transformation of bargaining councils.

Facilitate establishment of new councils and amalgamation of councils.

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6. MAIN DIVISIONS OF THE VOTE

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MAIN DIVISIONS OF THE VOTE

1. Administration

2. Occupational Health and Safety of Persons

3. Social Insurance

4. Employment and Skills Development Services

5. Labour Relations

6. Labour Policy

7. Service Delivery

8. Auxiliary and Associated Services

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7. BUDGET 2003/2004

As contained in the Estimate of National Expenditure (ENE)

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MTEF ALLOCATIONS

0100200300400500600700800900

100011001200130014001500

02/03 03/04 04/05 05/06

02/03 R1,296 R0,976 R0,320

03/04 R1,291 R1,041 R0,250

04/05 R1,292 R1,142 R0,150

05/06 R1,218 R1,218 R0,000

R, 000 MIL

-0,3% 0,0% -5,7%

VOTED ESTIMATE

R,

mil

DoL

UIF

TOTAL DoL UIF

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BUDGET PER PROGRAMME02/03 03/04VOTE VOTER'000 R'000

ADMINISTRATION 242,552 210,840 OCCUPATIONAL HEALTH AND SAFETY OF PERSONS 24,174 26,481 SOCIAL INSURANCE 17,601 19,639 EMPLOYMENT AND SKILLS DEVELOPMENT SERVICES 158,873 175,055 LABOUR RELATIONS 176,731 185,544 LABOUR POLICY 26,474 27,821 SERVICE DELIVERY 310,793 373,787 AUXILIARY AND ASSOCIATED SERVICES 18,975 21,922

SUB-TOTAL 976,173 1,041,089 UNEMPLOYMENT INSURANCE FUND 320,000 250,000

TOTAL 1,296,173 1,291,089

PROGRAMME

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BUDGET PER PROGRAMME

PROG R’mil % ADMIN 210,8 16,3OHS 26,5 2,0SI 19,7 1,5ESDS 175.0 13,6L R 185,5 14,4L P 27,8 2,2S D 373,8 28,9AUX 21,9 1,7S-TOTAL 1041,0 UIF 250,0 19,4TOTAL 1,291,0 100,0

VOTE: 03/04

0%

5%

10%

15%

20%

25%

30%A

DM

IN

OH

S SI

ESD

S

LAB

R

LAB

P

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UIF

R,

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MTEF PER PROGRAMME03/04 04/05 05/06VOTE VOTE VOTER'000 R'000 R'000

ADMINISTRATION 210,840 226,713 242,392 OCC. HEALTH AND SAFETY 26,481 28,961 30,876 SOCIAL INSURANCE 19,639 21,542 22,429 EMPL. & SKILLS DEV. SERVICES 175,055 186,517 198,457 LABOUR RELATIONS 185,544 196,786 208,679 LABOUR POLICY 27,821 29,640 31,452 SERVICE DELIVERY 373,787 427,901 458,563 AUX. & ASSOCIATED SERVICES 21,922 23,561 25,422

SUB-TOTAL 1,041,089 1,141,621 1,218,270 UNEMPLOYMENT INSURANCE FUND 250,000 150,000 -

TOTAL 1,291,089 1,291,621 1,218,270

PROGRAMME

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BUDGET PER STANDARD ITEM

02/03 03/04R,000 R,000

PERSONNEL EXPENDITURE 320,340 371,928 ADMINISTRATIVE EXPENDITURE 120,152 149,541 INVENTORIES 25,058 27,714 EQUIPMENT 38,392 42,013 LAND AND BUILDINGS 113,421 66,700 PROFESSIONAL AND SPECIAL SERVICES 83,474 99,795 TRANSFER PAYMENTS 263,894 269,932 MISCELLANEOUS 11,442 13,466

SUB-TOTAL 976,173 1,041,089 UNEMPLOYMENT INSURANCE FUND 320,000 250,000

TOTAL 1,296,173 1,291,089

STANDARD ITEMVOTE

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BUDGET PER STANDARD ITEM

S ITEM R’mil %PERS 371,9 28,8ADMIN 149,5 11,6INVENT 27,7 2,1EQUIP 42,0 3,3LAND 66,7 5,2PROF 99,8 7,7TRANS 269,9 20,9MISC 13,5 1,0

S-Total 1041,0 UIF 250,0 19,4

TOTAL 1,291,0 100,0

VOTE: 03/04

0%

5%

10%

15%

20%

25%

30%

PE

RS

AD

MIN

INV

EN

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EQ

UIP

LAN

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TRA

NS

MIS

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UIF

R,

mil

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TRANSFER PAYMENTS

Year R’milDoL UIF

99/00 441,900/01 285,601/02 251,3 605,002/03 257,9 320,003/04 269,9 250,0

0

100

200

300

400

500

600

700

800

90098

/99

00/0

1

01/0

2

02/0

3

03/0

4

R, m

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DoL

UIF

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THANK YOU