VOTE 17: LABOUR

PORTFOLIO COMMITTEE PRESENTATIONNOVEMBER 2004

ACTING DIRECTOR-GENERAL: DR. VAN MKOSANA

CONTENTS

• MISSION STATEMENT• 10 POINT PROGRAMME• LEGISLATION• MAIN DIVISIONS• BUDGET

1. MISSION STATEMENT

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:

• Improved economic efficiency and productivity

• Skills development and employment creation

• Sound labour relations

• Eliminating inequality and discrimination in the workplace

• Alleviating poverty in employment

2. 10 POINT PROGRAMME

10 POINT PROGRAMME Guides our work in this five year period

ending in March 2009. 10 points are:

• Contribute to employment creation• Enhance skills development• Promote equity in the labour market• Protection of vulnerable workers

10 POINT PROGRAMME (cont)• Strengthen multilateral and bilateral

relations • Strengthen social protection• Promote sound labour relations• Strengthen the capacity of labour

market institutions• Monitor the impact of legislation• Strengthen the institutional capacity of

the Department of Labour

3. LEGISLATION

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

4. MAIN DIVISIONS OF THE VOTE

MAIN DIVISIONS OF THE VOTE

During the 2004 Estimate of National Expenditure (ENE) process, the Department revised its Main Division of the Vote in order to align its financial reporting formats with establishment structures.

Five (5) Main Divisions are currently reflected in the ENE, and these are as follows:

MAIN DIVISIONS OF THE VOTE

• Administration (Corporate Services)• Service Delivery• Employment and Skills Development

Services / Human Resources Development

• Labour Policy and Labour Market Programmes

• Social Insurance

5. BUDGET

SPENDING PROPOSALS

SUBMITTED TO MTEC

Spending Proposals (1)

• In compiling the MTEC submission for the period 2005/2006 – 2007/2008, the Department identified the following key policy priorities which formed the basis for the department’s three options being the request for new funding:

Spending Proposals (2)

• Institutional capacity for effective service delivery;

• Enhance Employability; and

• Protection of Vulnerable Workers.

Spending Proposals (3)

• Institutional capacity for effective service delivery:

This option encompassed the following:

• Enhancement of capacity within the Department’s Inspectorate Service;

Spending Proposals (4)

• Ensuring that in line with the existing PPP agreement, the pilot project to supply inspectors with the necessary equipment is continued in the medium-term; and

• Ensuring the continued roll-out of telephony and information technology through the medium-term.

Spending Proposals (5)• Enhance Employability:

This option encompassed the following:

• Learnerships;• Internships;• Investors in People; and• Strengthening the capacity of

Employment Services at local level.

Spending Proposals (6)• Protection of Vulnerable Workers:

This option encompassed the following:

• Conducting Employment Equity audits to ensure effective enforcement of EE legislation;

• Management of HIV/AIDS and gender equity in line with directives from the DPSA and Office of the Presidency, respectively;

Spending Proposals (7)

• The initiation of Employment Equity Awards to encourage co-regulation as well as self-regulation;

• The Department’s responsibilities relating to the African Union (AU), the Southern African Development Community (SADC), the African Regional Labour Administration Centre (ARLAC);

Spending Proposals (8)

• Bilateral visits;• Implementing the elements of Labour

Market initiatives within the New Partnership for Africa’s Development (NEPAD); and

• Implementation of the findings of the casualisation study as directed by the Office of the Presidency.

Spending Proposals (9)SUMMARY OF OPTIONS SUBMITTED IN THE MTEF PROCESS

PROGRAMME / 2005/2006 2006/2007 2007/2008DESCRIPTION REQUEST REQUEST REQUEST

BY BY BYDoL DoL DoL

R'000 R'000 R'000Administration Internships 7,000 7,420 7,791 Investors in people 3,000 3,180 3,339 Advertising of posts 2,000 2,120 2,226 HIV/AIDS & Gender Equity 2,100 2,226 2,337 PPP & ICT convergence 37,897 40,170 42,179

Sub-Total 51,997 55,116 57,872 Service Delivery Employment Services at local level 6,789 7,196 7,555 Learnerships 50,371 53,394 56,065 I&E Services 59,521 63,092 66,246

Sub-Total 116,681 123,682 129,866 Employment and Skills and Skills Development Services / Human Resource Development National Qualifications Framework - 21,347 22,414

Sub-Total - 21,347 22,414 Labour Policy and Labour Market Programmes Employment Equity requirements 1,650 1,749 1,837 Employment Equity Awards 1,500 1,590 1,669 Casualisation Study 7,000 7,420 7,791 AU Conference 500 530 556 SACU 250 265 278 Bi-lateral & Multi-lateral visits 6,000 6,060 6,113

Sub-Total 16,900 17,614 18,244 TOTAL 185,578 217,759 228,396

RECOMMENDATIONS MADE

BY MTEC

MTEC Recommendations (1)

• The Department of Labour met with the MTEC on 17 September 2004 at which time, the aforementioned “options to the baseline” were presented for consideration.

• Disappointingly, very little additional funding was made available and only the following items were considered:

MTEC Recommendations (2)PROGRAMME /DESCRIPTION REQUEST MTEC INDICATED

BY RECOMMEND SHORTFALLDoL

R'000 R'000 R'000Administration Internships 7,000 - (7,000) Investors in people 3,000 - (3,000) Advertising of posts 2,000 - (2,000) HIV/AIDS & Gender Equity 2,100 - (2,100) ICT convergence 37,897 5,000 (32,897)

Sub-Total 51,997 5,000 (46,997) Service Delivery Employment Services at local level 6,789 3,000 (3,789) Learnerships 50,371 10,000 (40,371) I&E Services 59,521 - (59,521)

Sub-Total 116,681 13,000 (103,681) Employment and Skills and Skills Development Services / Human Resource Development National Qualifications Framework - -

Sub-Total - - - Labour Policy and Labour Market Programmes Employment Equity requirements 1,650 - (1,650) Employment Equity Awards 1,500 - (1,500) Casualisation Study 7,000 - (7,000) AU Conference 500 - (500) SACU 250 - (250) Bi-lateral & Multi-lateral visits 6,000 - (6,000)

Sub-Total 16,900 - (16,900) TOTAL 185,578 18,000 (167,578)

2005/2006

MTEC Recommendations (3)PROGRAMME /DESCRIPTION REQUEST MTEC INDICATED

BY RECOMMEND SHORTFALLDoL

R'000 R'000 R'000Administration Internships 7,420 (7,420) Investors in people 3,180 (3,180) Advertising of posts 2,120 (2,120) HIV/AIDS & Gender Equity 2,226 (2,226) ICT convergence 40,170 7,000 (33,170)

Sub-Total 55,116 7,000 (48,116) Service Delivery Employment Services at local level 7,196 4,000 (3,196) Learnerships 53,394 11,000 (42,394) I&E Services 63,092 3,000 (60,092)

Sub-Total 123,682 18,000 (105,682) Employment and Skills and Skills Development Services / Human Resource Development National Qualifications Framework 21,347 18,000 (3,347)

Sub-Total 21,347 18,000 (3,347) Labour Policy and Labour Market Programmes Employment Equity requirements 1,749 - (1,749) Employment Equity Awards 1,590 - (1,590) Casualisation Study 7,420 - (7,420) AU Conference 530 - (530) SACU 265 - (265) Bi-lateral & Multi-lateral visits 6,060 - (6,060)

Sub-Total 17,614 - (17,614) TOTAL 217,759 43,000 (174,759)

2006/2007

MTEC Recommendations (4)PROGRAMME /DESCRIPTION REQUEST MTEC INDICATED

BY RECOMMEND SHORTFALLDoL

R'000 R'000 R'000Administration Internships 7,791 (7,791) Investors in people 3,339 (3,339) Advertising of posts 2,226 (2,226) HIV/AIDS & Gender Equity 2,337 (2,337) ICT convergence 42,179 10,000 (32,179)

Sub-Total 57,872 10,000 (47,872) Service Delivery Employment Services at local level 7,555 5,000 (2,555) Learnerships 56,065 12,000 (44,065) I&E Services 66,246 5,000 (61,246)

Sub-Total 129,866 22,000 (107,866) Employment and Skills and Skills Development Services / Human Resource Development National Qualifications Framework 22,414 18,000 (4,414)

Sub-Total 22,414 18,000 (4,414) Labour Policy and Labour Market Programmes Employment Equity requirements 1,837 - (1,837) Employment Equity Awards 1,669 - (1,669) Casualisation Study 7,791 - (7,791) AU Conference 556 - (556) SACU 278 - (278) Bi-lateral & Multi-lateral visits 6,113 - (6,113)

Sub-Total 18,244 - (18,244) TOTAL 228,396 50,000 (178,396)

2007/2008

ANTICIPATED ALLOCATIONS

2005/06 – 2007/08

(Final allocations from National Treasury pending)

Anticipated Allocation (1)VOTE 17: LABOUR

PROGRAMME2005/2006 2006/2007 2007/2008

R'000Administration 274,282 292,487 317,111 Service Delivery 539,275 589,566 641,044 Employment and Skills Development Services / Human Resources Development 151,022 178,809 205,749 Labour Policy and Labour Market Programmes 320,470 340,395 357,415 Social Insurance 22,427 23,353 24,521 Sub Total 1,307,476 1,424,610 1,545,841

Direct Charge on the National Revenue Fund 4,500,000 4,700,000 4,935,000

Sector Education and Training Authorities 3,600,000 3,760,000 3,948,000 National Skills Fund 900,000 940,000 987,000

TOTAL 5,807,476 6,124,610 6,480,841

MEDIUM-TERM EXPENDITURE ESTIMATE

THANK YOU