Annual Report - Department of Labour 2011- part 2 .pdf

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Annual Report of the Department of LabourOverall Performance | 13measures when everything else has failed. As of end of March 2011, R34 m was spent in 130 companies and 15 000 jobswere saved through turn around strategies in Agriculture, Steel and Manufacturing sectors, Construction, Printing. During2011/12, Productivity SA intends saving 20 000 jobs.4.3 Employment services support to employers and work-seekers: DOL provides free employment services support to employersre vacancy or opportunity registration, job-seeker registration, matching services, career counselling and information, referralsfor placements, immigrant work permits. As of end of March 2011, 652 611 job seekers were registered, of the 15 009assessed on the SpEEx system 2 412 were successfully placed in scarce skills employment and 12 708 were placed in otherjobs; 25 814 were referred to placement opportunities, 65 347 were provided with career counselling, 451 950 were referred toUIF for benefits payment, 8 732 to Compensation Fund benefits and 7 217 to DHET for further training. 193 corporateapplications were received and 65 were not supported due to available local skills, 675 Private Employment Agencies wereregistered.4.4 The DOL does contribute indirectly to employment through the Unemployment Insurance Fund (UIF) and Compensation Fund(CF) reserves investment in commercial social responsible investment portfolio with the Public Investment Corporation (PIC).• The UIF invested R35 billion out of its R52 billion and the CF R27 billion and THR in commercial social responsibleinvestment portfolio that includes Central Government, Municipals and Parastatal bonds and money market instruments thatsupport infrastructure projects that create and sustain jobs.• The Compensation Fund invested in access of R27 billion as at the end of March 2011 in compensation fund contributionreserves with the PIC. These funds are in turn invested by the PIC through an investment agreement in commercial andsocial responsible projects carried out by Standard Bank, Eskom, Transnet, other parastatals involved in infrastructureprojects that contribute to employment creation.4.5 The UIF also supported job creation activities through joint collaboration with SETAs for UIF beneficiaries wiling to availthemselves for further training in identified scarce trades to improve their chances of re-employment.4.6 Provision of employment security: Through the CCMA LRA Section 189 (A) intervention, a total of 9 207 jobs were saved frompossible large scale retrenchments. During Quarter 4, the CCMA managed to through mediation, to settle disputes and ensurethat 710 workers were re-employed and offered jobs elsewhere within the same companies and 1 073 workers were re- instatedin their original employment positions. As of the end of March 2011 the CCMA through its Mediation interventions, assisted 46workers to be re-employed and placed elsewhere in the same companies and 1 826 workers to be re-instated in their originalpositions.4 .7 To stimulate job creation: the Unemployment Insurance Fund as part of its investment strategy, invested a R2 billion privateplacement bond with the Industrial Development Corporation of South Africa Limited (IDC). Initial reports indicate that theplacement of the bond has had the desired effect and has been very successful. The IDC has reported on the positive impactof the private placement on job creation and retention. As at 31 March 2011 R1 billion had been successfully drawn down byIDC to support employment activities. Details of transactions are as follows:• A total of 76 transactions (net of cancellations) with a value of R1 546 145 935 have been approved;• The approved transactions are expected to create, based on business plans, 10 047 new permanent UIF paying jobs andsaved 7 186 existing permanent UIF paying jobs;• The approved transactions will therefore result in a combined jobs of 17 233 with an average cost per job of R222 696 andthe approved transactions were fairly spread geographically in South Africa.Strategic Objective 2: Promote Equity in the Labour Market• The Employment Equity Act Amendment Bill was approved by cabinet and currently discussed at NEDLAC.• To monitor and enforce compliance with the EEA, employment equity implementation and enforcement mechanisms werestrengthened by conducting inspections and Director-General reviews at JSE Securities Exchange listed companies. Followupwas conducted on 60 JSE listed companies which were subjected to DG Review in the 2009/10 financial year and 61 copiesof final approval letters written to address income differentials. During the reporting period, a total of 266 companies weresubjected to DG review. Of the 96 JSE listed companies reviewed, 87 recommendations were made and of the 170 designated1 April 2010 - 31 March 2011
14 | Overall PerformanceAnnual Report of the Department of Labourcompanies reviewed, 156 recommendations were made. A total of 9 468 EEA procedural inspections were conducted and 7449 (79%) compliance rate was achieved.Strategic Objective 3: Protecting Vulnerable Workers• To enhance the capacity to monitor and enforce employment standards, the Basic Conditions of Employment Act AmendmentBill was approved by Cabinet and currently discussed at NEDLAC; several sectoral determinations including Civil Engineering,Hospitality, Learnerships, Taxy, Contract cleaning, and Domestic were reviewed and implemented to improve the position ofvulnerable workers; and the concept of Roving Safety Representative was launched in Limpopo and Mpumalanga and is nowready to be rolled out to other Provinces.• To monitor and enforce compliance with legislation, 192 129 workplaces were inspected and audited resulting in 147 626(77%) compliance rate achieved. 378 of these inspections and audits were conducted in high risk sectors to enforcecompliance with the OHSA.• To reduce exposure to silica, a Baseline study on silicosis was conducted and report is available; and 49 companies wereassisted in developing a program for the control of exposure to silica dust. In addition to these, 208 companies were inspectedwith regard to silica exposure and 54 compliance rate was achieved.Strategic Objective 9: Strengthening the institutional capacity of the DepartmentThe Department has, in this financial year realigned its objectives and resources to contribute effectively to Government strategicpriorities and service delivery outcomes that are set for the Department of Labour (DoL) during the 2009 to 2014 period.The CFO in collaboration with Internal Audit and Risk Management enhanced capability for good governance with strides made over thepast year with the clearing of the qualified opinion which has haunted the Department for the past years.Two branches, Public Employment Services and Inspection and Enforcement Services were established and are showing an impact inproviding strategic leadership and support to Provincial Operations for effective implementation of the core business of the Department.The Department is rated among the best Departments in resolving calls logged through the Presidential Hotline. As at March 2011 over 4742 calls were received through the Presidential Hotline and 4 677 (98%) resolved compared to 4 320 received in December 2010 and 4245 resolved. There has been an improvement of 7% on resolution with only 65 open calls as at end of March 2011 Compared to 119 asat end December 20105. OVERVIEW OF THE SERVICE DELIVERY ENVIRONMENT FOR 2010/11The Department operates in the context of a labour market that has seen the loss of approximately one million jobs following theeconomic recession of 2009. The unemployment rate has increased 3.4 percentage points to 25.3 percent and labour force participationhas fallen as many people have stopped looking for work.These job losses have resulted in a significant increase in unemployment insurance claims. The adverse economic climate also resultedin increased non-compliance and a rise in the number of labour disputes which led to more employees seeking services from theDepartment and its public entities.The increase in atypical forms of employment since the mid 1990s has contributed to instability in the labour market and a potentialincrease in violation of labour standards and fair labour practices. It has been estimated that 28 percent of total employment is made upof atypical work, that is, employees contracted directly to companies on fixed-term contracts, sub-contractors and employees employedthrough employment agencies. While there is variation in the conditions of employment for those in atypical work, there can be no doubtthat many experience insecurity of employment and abusive practices associated with labour law avoidance.During 2010, there was also a dramatic increase in the number of workdays lost due to strike action. A number of these strikes occurredin parastatal organisations and in the public sector indicating new challenges for labour relations.In the context of labour market challenges and legitimate expectations by employees for decent conditions of work and fair treatment,the Department of Labour, like many other government departments, is experiencing increasing pressures to transform and enhance its1 April 2010 - 31 March 2011
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