Presentation to the Select Committee on
Labour & Public Enterprises
04 November 2009
Annual Report: 2008/09
Overall Responsibility
Director General: Jimmy Manyi
Programmes / Branches of the DoL
2
Programme 1: Administration







Communication
Financial Management
Human Resources Management
Information Technology
Internal Audit
Risk Management
Security Services
Programme 2: Service Delivery (SD)
Programme 3: Employment and Skills Development Services /
Human Resources Development (ESDS)
Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)
Programme 5: Social Insurance
 Unemployment Insurance Fund (UIF)
 Compensation Fund (CF)
DoL KEY RESULT AREAS
The Ministerial Programme of Action (2004 – 2009) consists of the following
Strategic Objectives or Key Result Areas (KRA’s):
KRA 1: Contribution to Employment Creation
KRA 2: Enhancing Skills Development
KRA 3: Promote Equity in the Labour Market
KRA 4: Protecting Vulnerable Workers
KRA 5: Strengthening Multilateral and Bilateral Relations
KRA 6: Strengthening Social Protection
KRA 7: Promoting Sound Labour Relations
KRA 8: Strengthening the Capacity of Labour Market Institutions
KRA 9: Monitoring the Impact of Legislation
KRA 10: Strengthening the Institutional Capacity of the Department
3
Programme 1: Administration
Programme 1: Administration
Purpose: Provide for the overall management of the department and for
strategic support and advisory services.
Measurable Objectives:
 Communication creates awareness about available services in DoL.
 Financial Management, Enhance Assets and office administration and
supply chain management.
 Human Resources Management ensures effective and efficient
utilisation of human capital and renders legal services to the department.
 Information Technology through the PPP with Siemens caters for the full
spectrum of IT needs and requirements of the DoL.
5
Programme 1: Administration
Purpose: Provide for the overall management of the department and for
strategic support and advisory services.
Measurable Objectives: (Continued)
 Internal Audit provides management and the Audit committee with
independent objective assurance that improves effectiveness of
governance, risk management and control processes
 Risk Management pro-actively manages / addresses risks that have a
negative impact on the DoL’ s performance
 Security Services renders security support aimed at protecting DoL
information, staff and assets
6
Programme 1: Administration
7
Sub-Programme: Communication
Progress
 Stakeholder Relations: Through exhibitions showcased services of DoL in
various provinces.
 Marketing and advertising: 20 Marketing & advertising campaigns implemented on:
-
Worker rights & Human rights,
EE Reporting,
Occupational Health & Safety,
Learnerships for matriculants and unemployed graduates,
Domestic Workers Sectoral Determinations,
Wage increase awareness.
 Media Liaison: Profiled the DoL in the electronic & print media through media
statements, press conferences & interviews for the Executive & Senior Managers.
Programme 1: Administration
Sub-Programme: Human Resources Management
Progress
 HR Plan for 2006 – 2009 is in place.
 Training & Development: Senior Managers (SMS) participated in Training &
Development Programme.
 Performance Management: Increased compliance at all levels (SR 1 - 16).
 3 Pillars of Employee Health & Wellness implemented:
- HIV/AIDS / TB Management : Promoted Voluntary Counselling & Testing,
- Disease Management,
- Health and Productivity Management.
 Employment Equity: Implementation of EE Plan monitored monthly.
8
Programme 1: Administration
9
Sub-Programme: Office of the CFO
Directorate: Financial Management
Progress
 Held regular audit matters forums to monitor & reduce the level of audit queries for
DoL, NSF & Sheltered Employment Factories, INDLELA, CF & UIF.
 Annual financial statements prepared according to prescripts.
 Budget Advisory Committee provided support to spending units of DoL on Financial
Management & Control – Spending was within budget.
Programme 1: Administration
Sub-Programme: Office of the CFO
Directorate: Financial Liaison – Public Entities
Progress
 Implemented enhancements to the Annual Financial Statements for better
compliance.
 Facilitate submission and analysis of quarterly financial reports.
 Identified performance gaps and generated reports for early warnings.
 Analysis and capturing of budget information for all SETA’s.
 Follow up and support of all critical and struggling Public Entities – Guidance &
Feedback.
 Capacity building, training and skills transfer to Public Entity Personnel.
10
Programme 1: Administration
11
Sub-Programme: Office of the CFO
Directorate: Office Administration and Supply Chain Management
Progress
Managed office accommodation and Repair Maintenance Program on State owned
building through Public Works.
- 9 contracts completed and 4 to be complete in 2010.
- Contracts for 12 Sheltered Employment Factories completed.
- Bid Process for the HQ Building finalised – work start in 2009.
 Document security & archival storage facility improved.
 A sub-directorate for Asset Management established – with major asset registers in
place for all provinces and Head Office.
 Asset registers for IT PPP with Siemens were developed.
Programme 1: Administration
12
Sub-Programme: Office of the CIO
Information Technology
Progress
 Policies developed to cover key areas in the IT environment:
- Information Systems Security
- Network and User Security
 An IT disaster recovery plan was approved.
 Business Applications deployed:
- Additional functionality & enhancements to current legacy systems at CF.
- Additions and enhancements to the EE system.
- ESSA rolled out to all Labour Centres and enhancements made for stability & data
integrity.
- Financial Management Systems for the UIF, CF & NSF initiated.
 Operations: Service Delivery for remote areas enabled by providing IT Service to 20 Mobile
Labour Centres.
Programme 1: Administration
13
Directorate: Internal Audit
Progress
 57 audits scheduled for DoL, NSF & Sheltered Employment Factories – 51 complete,
15 could not be performed due to lack of resources.
 42 final audit reports issued.
 The audit committee of the departments functions optimally & meets regularly.
 A risk management Unit introduced and a risk management plan developed to be
managed by senior management.
Programme 1: Administration
14
Directorate: Security Services
Progress
 Electronic Security system implemented in high risk KZN.
 Several security appraisals and assessments implemented in key provincial offices &
labour centres.
 Bid to improve CF security at advanced stage.
 Contract security procured for various provincial offices & labour centres.
 Cases of IT equipment losses reduced by 75% with the introduction of investigations
on security breaches & theft of IT equipment.
 Officials are paying back the dept the rand value of equipment losses.
Programme 2: Service Delivery
Programme 2: Service Delivery
16
PROGRAMME PURPOSE: Ensure implementation of and compliance with
department of labour policies and programmes through monitoring,
evaluation and inspections
ENE 2008/09-2010/11
Measurable Objectives:
 Increase percentage of registered work-seekers placed in registered employment
opportunities to 70% by 2010/11
 Assess and refer 10% of work-seekers to identified critical and scarce skills
development programmes by 2010/11
 Ensure training of 90 000 unemployed people:
- 70% placed in employment through the NSF and SETA’s
- 26% of training is accredited by 2010/11
Programme 2: Service Delivery
17
PROGRAMME PURPOSE: Ensure implementation of and compliance with
department of labour policies and programmes through monitoring,
evaluation and inspections
ENE 2008/09-2010/11
Measurable Objectives: (Continued)
 Reduce workplace related injuries, illnesses and deaths by 2% by 2010/11.
 Ensure 75% compliance with labour legislation by inspected workplaces 2010/11.
 Promulgate the National Occupational Health and Safety legislation and implement
Act by March 2010.
 A total of 90% UIF claims processed and paid within 5 weeks.
KRA 1: Contribute to Employment Creation
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
1. A single
Integrated
Employment
Services System
(ESSA) is rolled out
and enhanced to
ensure improved
access to
employment services
1.1 Employment Services system rolled out to all 125 labour centres
18
ACTUAL
1.2 Pilot studies to roll out the six ES offerings to two labour centres:
Thohoyandou and Pretoria
1.3 The Resource Centre and Career information and guidance
introduced in pilot sites serviced 4 141 clients
1.4 A roving team of 37 staff members trained to provide career
guidance and counselling. 13 107 clients counselled and 5 586 were job
seekers (Pilot Sites)
1.5 More job-seekers accessed Employment Services and supported,
especially through career counselling and assessments, networking with
stakeholders, the matching of individuals to opportunities, recruitment and
selection to access opportunities
KRA 1: Contribute to Employment Creation
SUB-PROGRAMME
OUTPUT
1.
Increase
percentage
of registered workseekers placed in
registered
employment
opportunities to 70%
by 2010/11.
19
PERFORMANCE MEASURES
ACTUAL STATUS
1.1 Registered work-seekers increased by 252 627 in 2008/09
1.2 Placement opportunities registered on database increased by 10 968
1.3 There were 7 553 job opportunities
1.4 Over 421 686 job-seekers were registered on the database compared
to 169 059 in 2007/08
1.5 Over 26 332 (22 917 job and 3 415 learning) placement opportunities
were registered on the database compared to only 15 364 job
opportunities registered in 2007/08
1.6 Over 70% of the registered placement opportunities (65% permanent
employment and 104.9% learning opportunities) were filled compared to
36.3% in 2007/08.
1.7 Total of 18 404 job seekers placed 14 898 (65%) in employment and
3 415 in learning against a target of 15 000 compared to 5 578 in
2007/08.
Provincial Breakdown
PO
Job
seekers
registered
Jobseekers
placed in
learning
opportun
ities
%placed
in jobs
%placed
in job
opportun
ities
EC
33301
1035
464
1009
464
97%
100%
FS
37832
840
179
780
179
92.8%
100
GN
44454
4944
0
0
10.4%
0
GS
44386
2589
1026
1 026
57.8%
100
KZN
86945
4232
828
828
*
100
LP
39256
1706
215
215
72.6%
100
MP
43961
2072
0
0
*
100
NC
8088
219
20
20
*
100
NW
9160
488
505
505
46%
100
WC
74303
4792
16
178*
14%
0
421686
22917
3 253
3415
65%
104.9%
TOTAL
Total job
opportunities
registered
Learning
opportunities
registered
Job-seekers
placed in
employment
KRA 1: Contribute to Employment Creation
SUB-PROGRAMME
OUTPUT
1. Assess and refer
10% of workseekers to identified
critical and scarce
skills development
programmes by
2010/11
20
PERFORMANCE MEASURES
ACTUAL STATUS
1.1 8 531 registered job-seekers were assessed and 7 343 (86%) were
referred to identified critical and scarce skills development programmes
against a target of 6 000 compared to 17 375 assessed and 13 039
referred in 2007/08
1.2 7 546 (89%) of the 8 531 learners were assessed with the SpEEx
assessment instrument for learnerships, internships, etc.
These were mainly for strategic government job creation initiatives such
as Coega, Department of Health contribution to EPWP NYS (data
capturers) the EPWP NYS Infrastructure, GTZ ALMS project, the
transport and construction sectors
KRA1: Contribute to employment creation
PO
Target no.
registered Job
seekers to be
assessed
Total no.
registered Job
seekers assessed
Total no. Referred
to identified
critical and
scarce skills dev.
programmes
EC
780
2204
1483
FS
540
1301
330
GN
480
471
431
GS
660
654
2648
KZN
780
1368
1002
LP
540
885
411
MP
660
762
762
NC
480
217
0
NW
540
339
123
WC
540
468
153
6000
8669
7343
TOTAL
KRA 2: Skills Development
SUB-PROGRAMME
OUTPUT
1. NSDS 2008-2009
year 4 targets
implementation
aligned to ASGI-SA
implemented.
21
PERFORMANCE MEASURES
ACTUAL STATUS
1.1 Provincial Skills Plans were reviewed to ensure alignment with the
PGDS/IDP/LED and 1 673 projects were identified and listed
1.2 The training programmes in EPWP and the NODES were finalised:
A total number of 10 390 unemployed were trained in support of EPWP
at a cost of R36 656 998
A total number of 3 315 unemployed were trained in support of ISRDP
at a cost of R15 395 038
A total number of 447 unemployed were trained in support of URP at a
cost of R2 907 347
KRA 2: Enhance Skills Development -Training
in support of govt. programmes EPWP
PO
No of unemployed
trained
Cost of training in Rand in support
of EPWP
EC
744
R 5,155,815.00
FS
0
R 0.00
GN
1027
R 6,364,035.00
GS
1378
R 6,711,241.00
KZN
4298
R 7,509,240.00
LP
136
R 161,439.00
MP
0
R 0.00
NC
749
R 1,848,712.00
NW
1144
R 3,724,947.00
WC
914
R 5,181,569
TOTAL
10390
R 36,656,998
KRA 2: Enhance Skills Development -Training in
support of govt. programmes in the NODES
PO
No of unemployed
trained
Cost of training in Rand
in support of ISRDP
WC
Central Karoo
36
R 305,090
MP
Bohlabela Cross
0
R 0.00
LP
Sekhukhune
Cross
0
R 0.00
EC
Alfred Nzo
49
R 104,605.00
EC
Chris Hani
177
R 896,856.00
EC
Ukhahlamba
21
R 107,929.00
EC
OR Tambo
1504
R 3,730,066.00
NC
Khalagadi Cross
5
R 611,175.00
KZN
Ugu
100
R 603,201.00
KZN
Umkhanyakude
631
R 3,542,771.00
KZN
Umzinyathi
380
R 2,165,265.00
KZN
Zululand
412
R 3,328,080.00
FS
Thabo
Mofutsanyane
0
R 0.00
3315
R 15,395,038
TOTAL
KRA 2: Enhance Skills Development -Training in support of
govt programmes in the NODES
PO
No of unemployed
trained
Cost of training in
Rand in support of URP
GS
Alexandra-URN1
0
R 0.00
WC
Khayelisha-URN6
108
R 1,576,365
WC
Michells PlainURN7
0
R 0.00
EC
Motherwell-URN5
100
R 242,699
EC
Mdantsane-URN4
132
R 347,043
NC
Galeshewe-URN8
107
R 741,240
KZN
Inanda-URN2
0
R 0.00
KZN
KwaMashu-URN3
0
R 0.00
447
R 2,907,347
TOTAL
KRA 3: PROMOTE EQUITY IN THE WORKPLACE
SUB-PROGRAMME
OUTPUT
1.
Employment
Equity
implementation and
enforcement
mechanisms in
place
22
PERFORMANCE MEASURES
ACTUAL STATUS
1.1 20 provincial staff members on the project are capacitated to enforce
Employment Equity Act (EE Act) and 74 employers were subjected under
the EEA DG review
1.2 12 514 EE designated employers were identified to enforce
procedural compliance and only 9 723 were inspected and 8 112 (83%)
complied within 90 days of inspection against a target of 10 000
compared to 8 475 inspected and 6 881 (81%) complying at the end of
March 2008.
1.3 There is noticeable increase in the capacity to monitor and enforce
EE procedural compliance.
Although the target set was missed by 277, over 1 248 more EE
designated employers were inspected and over 2% more compliance
achieved compared to 2007/08
KRA 3: Promote Equity in the Work Place
PO
Total number of
designated
employers
(identified
within
respective
Province)
EC
180
124
121
98%
FS
1000
1497
1350
90%
GN
1000
1493
1092
73%
GS
1244
1044
867
83%
KZN
4289
2362
2047
87%
LP
843
560
467
83%
MP
637
948
817
86%
NC
908
506
366
72%
NW
1050
371
282
76%
WC
1363
818
703
86%
12514
9723
8112
83%
TOTAL
Total no of designated
employers inspected
Total no complying
procedurally within 90 days
%
KRA 4: PROTECTING VULNERABLE WORKERS 23
SUB-PROGRAMME
OUTPUT
1. At least 180 000
workplaces are
inspected and 80%
compliance levels
achieved within 90
Days of inspection
PERFORMANCE MEASURES
ACTUAL STATUS
1.1 The compliance level increased by 5% from 78% in 2007/08 to 83% in
2008/09 although the total number of workplaces inspected decreased by
46 968 from 200 665 in 2007/08 to 153 697 in 2008/09
1.2 The volume of workplaces inspected and the optimal utilisation of
resources remains a challenge
1.3 To monitor and enforce compliance, a total of 23 297 undertakings,
1 225 improvement notices, 9 908 contravention notices, 1 255 prohibition
notices and 2 251 compliance orders were issued
KRA 4 : Protect Vulnerable Workers
Total
number of
inspectors
Total
workplaces
inspected
Undertaking
s
Province
s
Notices
Complianc
e orders
Improvem
ent
Contraventio
n
Prohibition
No of
employer
complyin
g within
90 days
%
complianc
e within 90
days
EC
71
17144
1 911
22
800
54
520
14743
86%
FS
61
12509
1 803
21
329
45
93
11174
89%
GN
73
22892
1 961
252
997
151
9
18827
82%
GS
115
19369
1 145
237
986
287
535
16076
83%
KZN
127
27113
3 202
138
2 886
235
328
22272
82%
LP
59
10034
1 874
45
619
34
50
7064
70%
MP
60
11813
1 418
171
927
149
21
10532
89%
NC
30
6169
1 090
127
1 069
54
15
4655
75%
NW
57
10285
3 621
140
786
215
317
8052
78%
WC
93
16369
5 272
72
509
31
363
11923
73%
746
153697
23 297
1 225
9 908
1255
2251
125318
82%
TOTAL
KRA 4: PROTECTING VULNERABLE WORKERS 24
SUB-PROGRAMME
OUTPUT
1. Coordinate and
monitor the
investigation and
settlement of
reported labour
complaints/disputes
to ensure 80%
settlement rate
within 90 days.
PERFORMANCE MEASURES
ACTUAL STATUS
1.1 A total of 178 863 (79%) of the 226 297 labour complaints received
were investigated and finalised within 90 days against a target of 80%
compared to 173 057 (79%) of the 220 191 complaints received finalised.
1.2 The 80% target was missed by 1%, however over 6 106 more
complaints were received and over 5 806 more complaints were finalised
compared to 2007/08 although the percentage settlement remains the
same at 79%.
KRA 4: PROTECTING VULNERABLE WORKERS 25
SUB-PROGRAMME
OUTPUT
1.
Ensure that at
least 2 000 of
reported OHS
incidents are
finalised within 90
days as per
directives.
PERFORMANCE MEASURES
ACTUAL STATUS
1.1 A total of 2 956 (56%) of the 5 326 OHS incidents reported were
investigated and finalised within 90 days against a target of 2 000
KRA 4 : Protect Vulnerable Workers
PO
Reported OHS
incidents
Total OHS incidents
investigated
Total number of
complaints settled
within 90 days
EC
177
145
FS
227
227
GN
346
265
GS
413
95
2 749
2 627
LP
141
54
MP
151
147
NC
30
37
NW
305
226
WC
787
682
5 326
4 505
KZN
TOTAL
%
125
191
231
32
1424
13
142
9
231
558
2 956
71%
84%
67%
8%
52%
9%
94%
30%
76%
71%
56%
KRA 4: PROTECTING VULNERABLE WORKERS 27
SUB-PROGRAMME
OUTPUT
1. Targeted
advocacy and blitz
inspections to
inspect at least
10 000 workplaces
and to decrease
work place incidents
in the High Risk
Industries by at
PERFORMANCE MEASURES
ACTUAL STATUS
1.5 Advocacy and blitz inspections programme developed targeting high
risk industries and 10 285 inspections were conducted:




Construction - 2 458,
Iron and Steel - 2 449,
Food and Beverage - 2 701,
Agriculture - 2 677
against a target of 10 000
KRA 4 : Protect Vulnerable Workers
PO
Blitz
inspections
Construction
Iron & steel Food % bev
Agriculture
EC
4
249
197
187
581
FS
4
119
203
192
329
GN
4
70
44
204
79
GS
4
248
135
139
68
KZN
4
761
707
700
354
LP
4
187
356
278
244
MP
4
437
313
325
313
NC
4
167
205
365
390
NW
4
112
197
225
259
WC
4
108
92
86
60
TOTAL
4
2 458
2 449
2 449
2 677
Programme 3: Employment and
Skills Development Services
and
Human Resources Development
(ESDS)
Programme 3: Employment and Skills Development
Services / Human Resources Development (ESDS)
31
PROGRAMME PURPOSE: Contribute to employment creation and skills development
by promoting and monitoring the achievement of the objectives
of the National Skills Development Strategy (NSDS) and the
National Human Resource Development Strategy
ENE 2008/09-2010/11
Measurable Objectives:
 Develop the skills of work-seekers by training 90 000 unemployed persons
placing 70% in employment for NSF Projects and for SETA’s (Learners in
critical skills)
 Provide skills development support through National Skills Fund (NSF) and
Sector Education and Training Authority (SETA) funding to SMMEs, NGOs
and co-operatives
Programme 3: Employment and Skills Development
Services / Human Resources Development (ESDS)
32
ENE 2008/09-2010/11
Measurable Objectives: (Continued)
 Provide top-up funding to SETAs, the National Student Financial Aid Scheme
(NSFAS) and the National Research Foundation to assist 26 000 unemployed
learners to enter scarce and critical skills programmes in learnerships,
apprenticeships, internships, bursaries and skills programmes
 Provide funding through partnerships with Umsobomvu Youth Fund and the
Small Enterprise Development Agency (SEDA) to support 3 000 youth in new
venture creation projects
 Ensure that 70 % of new ventures are sustainable after completion of the
programme through training and mentorship
Skills Levies collected and transferred to SETAs and NSF
Levy Year
2008 /09
Grand Total
Year Collected
April 2008 –
March 2009
33
Total Amount
Collected
Amount
transferred to
SETAs
Amount
transferred to
NSF
R
R
R
7 333 171 049
5 866 536 837 1 466 634 212
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Number NSDS 2005-2010:
Year four targets
implementation at INDLELA
PERFORMANCE MEASURES
34
ACTUAL STATUS
TARGET
1.1 1 200 small BEE enterprise and
cooperatives receive skills dev
support.
1.2 10 000 people participate in trade
tests at INDLELA
1.1 2 251
1.2 8 337 assessed
3 392 passed
1.3 40% pass rate for trade tests
1.3 41% pass rate
1.4 18 693 artisans registered for
training by SETA’s
1.4 17 228
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Number NSDS 2005-2010:
Year four targets implemented
through the National Skills
Fund (NSF) and Admin
Transfers
Achieve NSF strategic projects
targets in support of Provincial
Growth and Development
Strategies
PERFORMANCE MEASURES
35
ACTUAL STATUS
TARGET
1.1 16 000 unemployed people
1.1 41 336
assisted to enter learning programmes
1.2 8 000 people completed learning
programmes
1.2 31 003
1.3 4 500 undergrad bursaries
awarded
1.3 1 752
1.4 1 500 post grad bursaries were
awarded
1.4 997
1.5 40 000 NSF funded/ABET
learners recruited and commenced
learning programmes
1.5 21 413
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Number NSDS 2005-2010:
Year four targets implemented
through the NSF
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
1.1 90 000 unemployed people
trained
1.1 15 169 trained @
R190.5 million
(Training suspended in provinces due to
misaligned procurement procedures
with DoL procedures – AG query)
1.2 63 000 trained unemployed
people placed in employment
1.2 8 885
(Recession resulted in poor job
placements)
Sector Education and Training
Authorities (SETA’s)
36
1.3 400 community based cooperatives receive skills support
funded by NSF
1.3 367
1.4 5 865 SMME’s, NGO’s Co-ops
and small BEE enterprises receive
skills support
1.4 7 601
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Number NSDS 2005-2010:
Year four targets
implemented through the
Sector Education and
Training Authorities (SETA’s)
PERFORMANCE MEASURES
37
ACTUAL STATUS
TARGET
1.1 44 640 ABET employed
people trained
1.1 40 851 registered
14 221 completed training
1.2 56 506 workers to be
assisted to enter scarce & critical
skills in learnerships,
apprenticeships, internships &
bursaries
1.2 103 293 workers
assisted to enter
109 270 completed learning
1.3 43 316 unemployed people
assisted to enter scarce & critical
skills in learnerships etc.
1.3 60 125 unemployed
enter skills
63 658 completed
1.4 9 088 learners in critical skills
(HET & FET institutions) placed for
experience locally & internationally
1.4 13 148 placed in work
places
1.5 3 276 youth trained in New
venture Creations
1.5 3 900 youth trained
475 of the ventures are
sustainable
(Seed capital is a challenge, so is youth
inexperience in such ventures)
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Number NSDS 2005-2010:
Year four targets
implemented through the
Sector Education and
Training Authorities (SETA’s)
*
PERFORMANCE MEASURES
38
ACTUAL STATUS
TARGET
1.1 15 139 Sector Development
Facilitators & Specialists trained
1.1 18 836 trained
1.2 3 480 large firms & 4 791
medium firms supported through
skills dev.
1.2 4 284 large firms
5 670 medium firms
1.3 25 004 small levy- paying
firms supported through skills dev.
1.3 26 736 small levypaying firms supported
1.4 84 govt depts. spend at least
1% of personnel budget on training
1.4 65 (77% of the target)
1.5 1 406 small BEE and BEE coops supported with skills dev.
1.5 2 251 supported
* 32 companies received
Ministerial awards for outstanding
contribution to national skills dev.
KRA 2: Enhance Skills Development
39
SUB-PROGRAMME
OUTPUT
PERFORMANCE MEASURES
ACTUAL STATUS
1. Number NSDS 2005-2010:
Year four targets
implemented through the
Sector Education and
Training Authorities (SETA’s)
1.1 Annual increase of people
who benefit from work place skills
development support – training for
employment & re-employment
1.1 2 069 more new
workers
Total 6 156 trained
Total expenditure:
R19,77 million
45 SMME’s benefitted
1.2 Business Process
Outsourcing and Off-shoring (DTI
investment incentive programme)
implemented.
1.2 151 trained 7
applications approved, 1
pending.
TARGET
1.3 One claim of R1, 596
1.3 R60 million for above
million paid
programme committed over 3
years & 12 440 workers targeted to
benefit
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Number NSDS 2005-2010:
Year four targets
implemented through the
National Skills Authority
(NSA) & National Skills Fund
(NSF)
PERFORMANCE MEASURES
40
ACTUAL STATUS
TARGET
1.1 92 provider institutions
accredited to deliver New Venture
Creation qualification
1.1 138 institutions
accredited
1.2 Improve the quality of service
delivered by skills development
institutions
1.2 The refined Quality
Council for Trades &
Occupations (QCTO) policy
& establishment of the body
1.3 To improve stakeholder
capacity & commitment to the
National Skills Development
Strategy (NSDS),
1.3 Only 7 constituency
organisations took up the
funding offer and 3 263
members benefitted.
R12, 210, 554 was
disbursed
NSF availed R20 million to the 18
constituencies of the NSA for
capacity building of their members
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Promoting productivity
knowledge, awareness & skills
within the non-formal
economy
Productivity SA
PERFORMANCE MEASURES
ACTUAL STATUS
TARGET
1.1 26 education and training providers 1.1 55
and productivity trainers accredited
1.2 1 800 emerging entrepreneurs
trained in productivity improvement
competencies
1.2 910
1.3 120 Skills Development Facilitators
trained in productivity
1.3 78
1.4 530 managers and workers trained 1.4 569
to enhance productivity competencies in
public and private enterprises
1.5 120 future forums established at
companies with turn around solutions
* (No turn around strategies implemented to
prevent job losses due to financial
constraints)
41
1.5 105
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Improving access to
employment opportunities,
expand support for
entrepreneurial activity and
self employment
Umsobomvu Youth Fund
PERFORMANCE MEASURES
42
ACTUAL STATUS
TARGET
1.1 288 youth advisory centres
established (full service points & kiosks)
1.1 151
1.2 38 500 young people acquire skills
through the NYS projects
1.2 34 000
1.3 6 000 unemployed graduates
enrolled in training programmes to
improve access to employment
1.3 700
1.4 Value of business opportunities
sourced is R 830 million
1.4 R 39 667 960
1.5 14 400 jobs created and sustained
through SME’s
1.5 12 980
(Placement in employment difficult & not all
UYF projects were approved due to financial
constraints)
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Promoting and
accelerating quality
training for all in the
work place through
the National Skills
Fund (NSF)
PERFORMANCE MEASURES
43
ACTUAL STATUS
TARGET
1.1 Work Place Skills Development
Support Programme (WSDSP)
implemented with 10% increase of
beneficiaries
1.1 Total workers trained
increased to 6 156 (2008/09)
from 3 378 (2007/08) = 82%
increase
Black: 88%
Female: 38%
45 SME benefitted (53 claims
paid ) – Total expenditure R19,
77 million
1.2 90 000 unemployed people
trained
1.2 Total expenditure:
R190 136 million
Black: 98%
Women: 54%
People with disabilities (PWD):
2%
Youth: 61%
KRA 2: Enhance Skills Development
SUB-PROGRAMME
OUTPUT
1. Promoting and
accelerating quality
training for all in the
work place through
the National Skills
Fund (NSF)
PERFORMANCE MEASURES
44
ACTUAL STATUS
TARGET
1.1 400 community based cooperatives supported through skills
dev.
1.1 Total expenditure:
R16,2 million (77% of
budgeted amount of R21
million)
Blacks: 95%
Females:65%
Youth: 41%
PWD: 4%
1.2 Funding of bursaries in scarce
skills – 4 500 undergraduates
1 500 post graduate bursaries
awarded
1.2 4 869 undergraduate
bursaries awarded through the
NSFAS
997 post graduate bursaries
awarded through the NRF
R531 million grants allocated to
the SETA’s
Programme 4: Labour Policy and
Labour Market Programmes
(LP & LMP)
Programme 4: Labour Policy and Labour Market
Programmes
46
PURPOSE: Establish an equitable and sound labour relations environment
and promote South Africa’s interests in international labour matters
through research, analysing and evaluating labour policy,
and providing statistical data on the labour market,
including providing support to the institutions
that promote social dialogue.
ENE 2008/09-2010/11
Measurable Objective:
 Improve employment equity by inspecting additional Johannesburg Stock Exchange
listed companies each year for substantive compliance with legislation.
Programme 4: Labour Policy and Labour Market
Programmes
Performance
Indicator
Past
2006/07
Percentage of top
100 Johannesburg
Securities Exchange
(JSE) listed
companies
assessment for
employment equity
2007/08
6 companies 26 companies
(6%)
(26%)
47
Current
Future
Projections
2008/09
2009/10
74 companies
(74%)
Follow up
on the 106
 In 2009/10 DoL will conduct follow ups on the total 106 companies assessed in the
previous 3 years.
 Some companies will be assessed at provincial level as part of building this
capacity in the provinces.
Programme 5: Social Security
Unemployment Insurance Fund (UIF)
Compensation Fund (CF)
• Both the CF and the UIF publish their own Annual Reports in
terms of the Public Finance Management Act.
Structure of Presentation
Department of Labour
1. Key Issues (Achievements/Challenges)
2. 2008/09 Expenditure Information
3. Auditor-General Report
Structure of Presentation
Vote 15: Labour
2008/09 Expenditure Information
In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year,
expenditure to the value of R1,642 billion is reflected as having been defrayed against
the Adjusted Vote of R1,747 billion. This represents an expenditure level of 94% of the
Vote.
Expenditure per Main Division of the Vote is recorded as follows:
R’000
Main Division
Adjusted
Allocation
Expenditure
As at
31 March 2009
384 207
702 331
178 465
472 102
10 501
R
R
R
R
R
Administration
Service Delivery
ESDS/HRD
LP&LMP
Social Insurance
R
R
R
R
R
Total
R1 747 606
372 906
621 350
172 489
469 730
6 366
R1 642 841
%
97.05%
88.46%
96.65%
99.49%
60.62%
94%
Structure of Presentation
National Skills Fund
2008/09 Expenditure Information
In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year, Skills
Levies to the value of R7 234 billion were collected and disbursed.
The disbursement of the Levies is recorded as follows:
R’000
Details of direct charges against the
National Revenue Fund
Adjusted
Allocation
Expenditure
As at
31March 2009
%
Sector Education and Training Authorities
(SETA’s)
R5 787 308
R5 787 308
100%
National Skills Fund
R1 446 827
R1 446 827
100%
Total
R7 234 135
R7 234 135
100%
Structure of Presentation
Sheltered Employment Factories
2008/09 Expenditure Information
In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year,
transfers to the value of R102 776 million were made:
The disbursement of the transfers is recorded as follows:
R’000
Details of Non-profit Institution
Adjusted
Allocation
Subsidised Workshops for the Blind
R
Subsidised Work-centres for the Disabled
Total
7 365
Expenditure
As at
31March 2009
R
%
7 365
100%
R 95 411
R 95 411
100%
R102 776
R102 776
100%
Structure of Presentation
Auditor-General Reports
Structure of Presentation
Vote 15: Labour
Auditor-General Report – Vote 15: Labour
In the Auditor-General’s report for Vote 15: Labour for the 2008/09 financial year, the
Auditor-General expressed a qualified opinion.
The basis for the qualified opinion relates to Capital Assets, as well as Public Private
Partnership (PPP) Assets.
The Auditor-General recognised that the Department had established an Asset
Management Unit however, the audit still revealed the following shortcomings in the
management and control of assets and the asset register:
•
A number of assets on the asset register were included at incorrect values
•
The asset register was not adequately maintained in accordance with the
requirements of National Treasury Regulations
•
The reconciliation of the prior year balance of R106 million with the asset
register submitted for the period ended 31 March 2007 and 2008, was still
outstanding.
Auditor-General Report – Vote 15: Labour
In respect of the PPP assets the Auditor-General indicated that the Department does
not maintain an adequate asset register in accordance with the requirements of the
National Treasury, which resulted in the following significant shortcomings:
•
Sufficient an appropriate audit evidence for the adjustment to the prior year
closing balance amounting to R14,0 million as disclosed in note 26 to the
financial statements, could not be submitted for audit.
•
Not all current year’s additions to the PPP assets were accounted for in the
asset register.
Structure of Presentation
National Skills Fund
Auditor-General Report – NSF
In the Auditor-General’s report for the National Skills Fund for the 2007/08 financial
year, the Auditor-General indicated that opinion expressed in respect of the NSF would
not be qualified.
The Auditor-General did however raise matters of emphasis relating to the following:
Irregular expenditure as disclosed in note 17 to the financial statements (R648,406,000)
was incurred as a result of not following proper tender processes;
As disclosed in note 24 to the financial statements, the corresponding figures for the 31
March 2008 financial statements have been restated as a result of the change in the
basis of the financial reporting framework from the modified cash basis to GRAP and
GAAP as described in accounting policy note 1 to the financial statements. The effect
of the restatement is an increase to the opening accumulated surplus for 31 March 2009
by R42,033,000.
Structure of Presentation
Sheltered Employment Factories
Auditor-General Report – SEF
In the Auditor-General’s report for Vote 16: Labour for the 2008/09 financial year, the
Auditor-General expressed a qualified opinion in respect of the Sheltered Employment
Factories.
The following Auditor-General based the qualification on the following:
Inventories are carried in the balance sheet at R15.8 million. Included in this amount is
direct labour and manufacturing overhead costs of R1.5 million which are allocated to
work in progress and finished goods for wood and metal products using an historic
allocation rate as the basis. No evidence regarding the assumptions used to calculate
the allocation rate could be obtained and therefore the Auditor-General was unable to
evaluate these assumptions to be able to determine the accuracy of the calculations.
The Sheltered Employment Factories’ records did not permit the application of
adequate alternative procedures regarding this inventory. Consequently, the AuditorGeneral did not obtain sufficient appropriate audit evidence to satisfy himself as to the
valuation of wood and metal work in progress and finished goods.
Auditor-General Report – SEF
The Auditor-General also raised matters of emphasis relating to the following:
Irregular expenditure as disclosed in note 26 to the financial statements (R3,702,440)
was incurred due to non-adherence to practice note number SCM 1 of 2003, issued by
National Treasury, which requires a tax clearance certificate to be obtained as part of
the standard bid documents when awarding contracts;
As disclosed in note 27 to the financial statements, the Sheltered Employment
Factories incurred fruitless and wasteful expenditure amounting to R278,514 on cell
phone contracts and storage costs.
Thank you