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EPWP SUMMITMINIMUM LABOUR INTENSITY,

ENHANCED PUBLIC GOODS AND COMMUNITY SERVICES &

SUSTAINABLE LIVELIHOODS

27 November 2014 Gamelihle Sibanda, Chief Technical Adviser, ILO

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OUTLINE

MINIMUM LABOUR INTENSITY ENHANCED PUBLIC GOODS AND COMMUNITY SERVICES SUSTAINABLE LIVELIHOODS

LABOUR INTENSITY

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EVOLUTION OF EPWP PERFORMANCE INDICATORS

Phase 1 – Work Opportunity (WO) Phase 2 – WO+ Full Time Equivalent (FTE) Phase 3 - WO + FTE +Labour Intensity (LI)

WO

Paid work created for an individual on an EPWP project for any period of time.

FTE

One person-year of employment. One person year is equivalent to 230 person days of work.

LI

Expenditure on wages expressed at a percentage of total project expenditure.

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TYPICAL PROJECT COST ELEMENTS A typical project has several cost elements which may include;

Labour

Supervision

Materials

Tools and Equipment

Transport

The sum of all these cost elements is Total Project Expenditure.

LABOUR INTENSITY is the expenditure on unskilled labour expressed as a % of Total Project Expenditure

WHAT IS LABOUR INTENSITY & WHY IS IT IMPORTANT?

DEFINITION• Expenditure on

wages expressed as a percentage of total project expenditure – for example if a R10m project pays out R2m as wages for unskilled workers the labour intensity is 20%

LI TRENDS• The higher the

labour intensity, the more the project expenditure is paid as wages to workers. Labour intensive methods yield higher labour intensity than machine intensive methods

IMPACT• Labour intensity is a

proxy indicator of project expenditure, injected into the local economy in the form of wages - to circulate and stimulate the local economy

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EPWP REQUIREMENTS ON LABOUR INTENSITY

• Select projects that are amenable to use of labour intensive methods i.e. where labour can be used as a primary resource supplemented by machines for activities that labour cannot perform

Project Selection

• Design project work methods with use of labour in mind• After the project design estimate the employment creation and the

associated labour intensity Project Design

• The tender documents should specify the wage rates for unskilled labour, target employment to be created and minimum labour intensity to be achieved by those who intend to tender

Procurement

• Monitor that implementers who are awarded contracts based on delivering agreed employment targets actually do so. It is important to have mechanisms to deal with service providers who ignore the employment creation deliverables after winning contracts

Implementation

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MINIMUM LABOUR INTENSITY Each EPWP Sector is expected to set an overall minimum labour

intensity for the Sector and appropriate minima for its various sub-programmes.

Minimum labour intensity is the threshold that should be exceeded, rather than aimed for.

There is no set maximum labour intensity, as this will be dictated by the nature of the project and the relative values of the cost elements (e.g. materials, equipment, transport, supervision, labour)

Even for a project that is highly LABOUR INTENSIVE (uses labour as the primary resource supported by machines as necessary) the LABOUR INTENSITY (expenditure on wages expressed as a % of total project expenditure) cannot exceed 100%.

For example, a project such as community safety, in addition to paying wages, will still have costs such as uniforms and supervision.

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EPWP LABOUR INTENSITY TRENDS IN PHASE 1&2The EPWP Infrastructure Sector data analysis for the

period 2004 to 2012 is based on the following labour intensity categories; <1% (these are capital intensive projects reported under the

EPWP), >1% but <5% (Typically capital intensive projects) >5% but <10% (Mainly capital intensive projects plus some

labour intensive construction projects >10% but <50% (Typical labour intensive projects) >50% but <100 (typical labour intensive maintenance

projects) >100% (not possible, error in reporting e.g. project cost)

Table 1: Percentage of reported projects by labour intensity categories • Spike in number of projects with li of less than 1% in 2009/10, could be

largely due to World Cup projects.• From 2004/5 to 2008/9 the bulk of the projects were in the 10% to 50%

labour intensity range.• From 2010/11 to 2011/12 the bulk of the projects were in the 50% to

100% labour intensity range (attributable to trebling of number of maintenance projects in 2011/12 compared to 2010/11). More projects are becoming more labour intensive.

Labour intensity categories

2004-05 2005-06 2006- 07 2007-08 2008-09 2009-10 2010-11 2011-12

< 1% 32% 15% 9% 3% 5% 21%  8% 2%

1% - 5% 4% 14% 17% 21% 22% 24% 20% 11%

5% - 10% 5% 12% 17% 38% 14% 14% 15% 9%

10% - 50% 42% 38% 41% 26% 49% 24% 26% 19%

50% - 100% 13% 18% 16% 12% 9% 16% 30% 58%

> 100% 4% 3% - 0.4% - 1% 1% 1 %

Table 2: Cost per reported work opportunities by labour intensity categories

• As expected projects with li of less than 1% have the highest cost to create a work opportunity. As much as over a factor of 210 times the cost to create a work opportunity for projects with li of 50 to 100% in 2010/11.

• In general the higher the labour intensity, the cheaper it is to create a work opportunity. For example in 2010/11 the cost to create a work opportunity was R1,348,530 (li<1%), R191,415 (li of 1% to < 5%), R60,613 (li of 5% to <10%), R27,146 (li of 10% to <50% ) and R6,433 (li of 50% to 100%).

 

Labour intensity categories

2004-05 2005-06 2006- 07 2007-08 2008-09 2009-10 2010-11 2011-12 

< 1% 63,418 38,451 381,458 262,991 382,691 733,177 1,348,530 952,577

1% - 5% 55,998 62,254 78,239 131,617 113,365 221,537 191,415 172,119

5% - 10% 29,532 53,075 35,819 50,342 78,806 88,422 60,613 86,677

10% - 50% 18,835 13,172 16,147 22,422 26,908 29,558 27,146 20,640

50% - 100% 4,920 3,482 4,394 5,746 6,644 6,616 6,433 6,048

> 100% 2,322 4,131 0 9,095 0 1,583 3,610 8,309 

ENHANCING PUBLIC GOODS AND COMMUNITY

SERVICES

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PUBLIC GOODS AND COMMUNITY SERVICES Assets created and services rendered as part of the EPWP have to be

reported, in addition to work opportunities , FTES and labour intensity. It is imperative for each EPWP Sector to define its indicators, units of

measure and subsequently report progress e.g. Km of roads constructed, Ha of alien vegetation removed, number of pupils in early childhood learning centers, number of households whose waste is collected weekly.

The impact of the assets created and services rendered also has to be documented and reported.

For some assets and services it may be necessary to carry our baseline surveys in order to assess post implementation impact. For example, profiling the participants skills at recruitment stage will facilitate assessment of the skills acquired through participation in the EPWP.

The impact will be at different levels e.g. participant, household, community, institution and nationally.

• Number employed desegregated by demographics• Average income earned per participant• Training received (accredited and non accredited)• Fairness and transparency of recruitment of participants

Participant• Household assets acquired• Number of dependents on EPWP participants• Changes in household expenditure patternsHousehold• Community assets created - improved access to services• Community services delivered• Local businesses stimulated• Fairness and transparency of targeting of participants

Community• Assets created and employment through maintenance• Services rendered and associated employment• Labour intensity – as proxy for project expenditure injected

to community in the form of wages• Convergence e.g. joint planning, pooling of resources• Appropriateness of project selection and design –

amenable to use of labour intensive methods

Institution• Net contribution of the EPWP to reduction of

unemployment• Proportion of national investment in Public Employment

Programmes (PEPs)• Contribution of EPWP to poverty reduction?• Contribution of EPWP to reduction in in-equality?

National

IMPACT OF PUBLIC GOODS AND COMMUNITY SERVICES

SUSTAINABLE LIVELIHOODS

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DEFINITIONS

Livelihood. A livelihood comprises the capabilities, assets

and activities required for a means of living (Chambers & Conway 1988).

A livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living (Department for International Development, DFID)

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DEFINITIONS

Sustainable Livelihood (SL). A livelihood is sustainable when it can cope with and

recover from the stresses and shocks and maintain or enhance its capabilities and assets both now and in the future without undermining the natural resource base (Chambers & Conway).

A livelihood is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets both now and in the future [DFID].

It is not just about the means to survive, but the capability to thrive.

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JOBS Vs SUSTAINABLE LIVELIHOODS The United Nations Development Program (UNDP)

differentiates between a job and a livelihood, which are often used interchangeably.

Livelihoods may or may not involve money. Jobs invariably do.

Livelihoods are self-directing. Livelihoods may be based on income derived from jobs, but also on incomes derived from other sources such as assets and entitlements.

A job connotes one particular activity or trade that is performed in exchange for payment. It is also a formal agreement, as manifested by a contract, between an employer and employee.

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JOBS Vs SUSTAINABLE LIVELIHOODS

Sustainable

Livelihoods

Jobs

A job can comprise part of an overall livelihood, but does so only to complement other aspects of a livelihood portfolio.

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PRINCIPLES OF SL APPROACHES People-centred: beginning by understanding peoples’ priorities and livelihood

strategies. Responsive and participatory : responding to the expressed priorities of poor

people. Multi-level: ensuring micro-level realities inform macro-level institutions and

processes. Conducted in partnership: working with public, private and civil society

actors. Sustainable: environmentally, economically, institutionally, and socially. Dynamic: ensuring support is flexible and process-oriented, responding to

changing livelihoods. Holistic: reflecting the integrated nature of people’s lives and diverse

strategies.

Building on strengths: while addressing vulnerabilities.

Context - social, economic, political, historical, demographic trends that influence the livelihood options of a given population and risks to which they are exposed

Resources - various assets (financial, physical, social, human and natural) that households and communities have access to and how are they differentiated and disaggregated.

Entry Point or Levels of Intervention - SL activities may be initiated at different spheres (i.e. National, Provincial, Local) depending on where the greatest leverage can be achieved. e.g. Practical level for individuals and Strategic interventions to address context.

Programme design - projects/programmes can be either single-sector focused or multi-sector in scope. Need to seek changes at the organizational, community and policy levels in addition to building the assets of individuals and households.

Institutional arrangements - effective local institutions that deliver goods and services must be in place. These include government agencies, civil organizations and the private sector.

Livelihood outcomes - measured in terms of normative standards (e.g. income levels) or on criteria identified by the communities

Measuring impact – on communities based on evaluation of indicators that are clearly linked problem analysis and objectives. Criteria derived from participatory approaches.. Normative measures are important for targeting and allowing for cross-regional comparisons.

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KEY CONSIDERATIONS OF SL APPROACHES

LIVELIHOODS ASSETS PILLARS

Financial Capital

SocialCapital

NaturalCapital

Physical Capital

Human Capital

The Poor

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5 ASSET PILLARS

Human Capital

Social Capital

Financial CapitalPhysical Capital

Natural Capital

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Pre CapitalPost Capital

HUMAN CAPITALGENERIC EPWP EXISTING

EXAMPLESEPWP POSSIBILITIES

Health • Sanitation programmes• Mass sports participation programmes

• Strengthen existing programmes and replicate to achieve national coverage

Nutrition • School Nutrition programmes • Improve compliance with the Ministerial Determination e.g. standardisation of minimum wages

Education • Placing EPWP youth in FET colleges for full qualifications

• Artisan development

• Sustainable partnerships with other funding and training institutions.

• Mainstream EPWP priority courses to training institutions

Knowledge and skills

Skills programmes:• Technical accredited skills & project

based (e.g. bricklaying, ECD)• Soft skills (e.g. enterprise devp,

financial, HIV training, OHS)• Learnerships e.g. Vuk'uphile, Pharmacy

assistants, Chefs programme

• Align programmes to QCTO standards• Graduation and placement of learners• Job searching and interview skills.• Encourage public bodies to secure 5% of their

project budget for training

Capacity to work • Capacity buliding of officials and implementers – e.g. NQF level 5 and 7 for officials, consultants and contractors.

• Labour Intensive re-orientation training.

• Establishment of the Labour Intensive methods training centres

• Incorporation of labour intensive methods to curricula of tertiary institutions

Capacity to adapt • Cooperatives • Enhance skills of participants for future employability and enterprise and cooperatives development

NATURAL CAPITALGENERIC EPWP EXISTING EXAMPLES EPWP POSSIBILITIES

Land and produce • Agricultural Support and Landcare• Working on Fire • School Nutrition Programme (Gardening)• NSS: NPOs and CWP Gardening Services• Parks and beautification programmes

• Urban agriculture• Explore the Nexus energy-water-food nexus

(e.g. eThekwini metro)• Greening projects• Beautification and parks projects• Waste management and recycling

Water & aquatic resources

• Working for Water • Working for Wetlands• Coastal Management

• Aquatic farming• Maritime Economy activities• Water harvesting

Trees and forest products

• Working for Fire• Working for the Forest• Parks and Beautification

• Planting of indigenous plants• Planting for the production of medicinal and

cosmetic essential oils• Reforestation and Commercial farming (e.g.

planting of pine trees)

Wildlife • Working for Tourism • Niche and eco-tourism

Wild foods & fibres • None • Organic farming

Biodiversity • Working on Wetlands • Pollution management and bio-remediation • Green construction

Environmental services

• Working on Waste • Expansion of the working on waste programme – recycling, waste to energy

PHYSICAL CAPITALGENERIC EPWP EXISTING

EXAMPLESEPWP POSSIBILITIES

Transport - roads, vehicles, etc.

• Construction and maintenance of roads (high and low volume roads)

• Motorised and Non motorised transport

• Strengthen and upscale existing programmes.• Integrate motorised and non motorised transport

programmes• Expand into railways maintenance

Secure shelter & buildings

• Provision of Human settlement (RDP houses)

• Landscaping and beautification programmes

• Create a link of EPWP with policy on leasing and management of government buildings (PMTE)

Water supply & sanitation

• Water, and sewage reticulation programmes

• Construction and maintenance of dams

• Provision of VIP toilets• Solid waste management

• Retrofitting water management systems to improve water harvesting and retention

Energy • Electricity reticulation• Retrofitting of solar heaters

• Solar panels and geysers, light bulbs)• Integrate retrofitting of public buildings in EPWP

(Working for Energy)

Communications • Telecommunication reticulation (Telephones, Optical Fibre etc. )

FINANCIAL CAPITALGENERIC EPWP EXISTING

EXAMPLESEPWP POSSIBILITIES

Savings • Zimbambele and EC Road Maintenance Saving Schemes, Participants savings clubs

• Capacity building and training on savings schemes (e.g. Utjani Slum Dwellers International)

• Policies and frameworks• Training on personal financial management

Credit/debt - formal, informal, NGOs

• Vuk'uphile Nedbank Partnership • Creating linkages to access SEFA Funding• Wholesale financial intermediaries• Leverage existing government funding mechanisms for

expansion and start up capital of projects /programmes (e.g. Jobs Fund, Agriculture Coops Funding)

Remittances • EPWP beneficiaries currently remitting their wages to family and relatives

• EPWP participants continuing remitting their wages to family and relatives

Pensions • UIF• COIDA

• Enforcement of applicable legislations• Projects allocating budgets for UIF and COIDA

contributions

Income • Wages • Assets acquisition at household level

Bonds/Shares/ Unit Trusts

• None • Capacity building and training on investment options

SOCIAL CAPITALGENERIC EPWP EXISTING

EXAMPLESEPWP POSSIBILITIES

Networks and connections• patronage• neighbourhoods• kinship

• Community safety forums• Recruitment Reference

Groups/steering committees • Social facilitation

• Enhanced communication on sustainable livelihoods in partnership with media

• Fair and transparent recruitment system• National roll out of neighbourhoods networks

Relations of trust and mutual support

• Utilisation of indigenous knowledge• EPWP Summits & Kamoso awards• Steering Committees, NCC/PSC/ PMT

• Better convergence - information sharing across sectors and Joint planning

• Strengthened relations with NEDLAC & communities

Formal and informal groups

• Formal groups exist e.g. ECD forum , HCBC, NGO networks

• Transformation of informal groups into formal associations (stokvels, burial clubs, etc.)

Common rules and sanctions

• EPWP guidelines• Legislative framework (ministerial

determination & code of good practice)

• National EPWP policy• Mechanisms to enforce compliance with EPWP

requirements and norms e.g. minimum wage• Equity in the geographic distribution of

projects

Collective representation

• Recruitment through ward councillors (mixed results)

• Recruitment through reference committees

• Development of fair and transparent recruitment guidelines

Mechanisms for participation in Leadership

• Ward LED & IDP structures (some are weak)

• EPWP to form part of manager’s performance agreement

• Strengthening local level structures

THE ASSET MIXDifferent households have different

access to livelihood “assets”

Livelihoods affected by: diversity of assets amount of assets dynamic balance amongst different

assets

“VULNERABILITY” CONTEXT• Vulnerability is determined by the risks that households and

communities are exposed to and their ability to use assets to cope with these risks.

• Context is determined by factors such as;• Floods, droughts, cyclones• Deaths in the family• Violence or civil unrest• Job loss

Shocks

• Agricultural food production• Periodic payment of school feesSeasonality

• Environmental change• Population growth/deflation• Technology• Markets and trade

Trends and changes

FP

H

SNThe Poor

VULNERABILITYCONTEXT

ShocksSeasonality

TrendsChanges

THE “VULNERABILITY” CONTEXT

POLICIES, INSTITUTIONS & PROCESSES• of National government• of different SPHERES of government• of NPOs• of intenational PARTNER/INVESTOR bodies

Policies

• Implementing agencies• judicial bodies• civil society & membership organisations• NPOs• Regulators• commercial enterprises & corporations

Institutions

• the unwritten “rules of the game”• decision-making processes• social norms & customs & practices• Demographics (women, men, youth, persons

with desabilities)• language

Processes

PoliciesInstitutio

nsProcesses

FP

H

SN The Poor

VULNERABILITY

CONTEXTShocks

SeasonalityTrends

Changes

Influence

POLICIES, INSTITUTIONS & PROCESSES

LIVELIHOOD STRATEGIESAre a combination of factors

Combining the assets (5 pillars) people can access

Taking account of the vulnerability context

Supported or obstructed by policies, institutions and processes

Sustainable or Unsustainable Livelihoods Outcomes

THE SUSTAINABLE LIVELIHOODS FRAMEWORK

PoliciesInstitutio

nsProcesses

SN

FP

H

The Poor

VULNERABILITY

CONTEXTShocks

SeasonalityTrends

Changes

InfluenceLivelihoodStrategies

LivelihoodOutcomes

OBJECTIVES OF SL INTERVENTIONS

The EPWP SL interventions aim to; Improve the vulnerability context of

participants.Transform policies, structures and processes.Enhance Livelihoods Assets.Achieve Livelihoods outcomes e.g. sustained

income post participation in the EPWP.

KEY CONSIDERATIONS1. How to internalise the Sustainable Livelihoods (SL) concept

within Public Bodies e.g.– Include indicators for SL outcomes in EPWP reporting system?– Include in personal performance reports?– Include as a standing item in agenda of regular meetings?– Carry out awareness campaigns?

2. How to secure buy-in to the Sustainable Livelihoods concept by other EPWP stakeholders.

– Include in public procurement processes?

3. Quantification of Work Opportunities associated with Sustainable Livelihoods outcomes.

– How much of work opportunities created by entrepreneurs can be attributed to the EWP?

4. Quantification of non employment Sustainable Livelihoods outcomes.

Frankenberger, Timothy R. A brief overview of sustainable livelihoods approaches

The Sustainable Livelihoods Framework http://tamarackcommunity.ca/downloads/vc/Sustainable_Livelihoods.pdf

Rengasamy Srinivasan. 2008. Sustainable Livelihood SR Presentation Transcript http://www.slideshare.net/srengasamy/sustainable-livelihood-sr-presentation-777132

IFAD SL Workshop EPWP Sustainable Livelihoods Dialogue Report. 11 Sept

2014

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REFERENCES

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I THANK YOU