Department of Labour:

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Addressing issues raised by the Labour Portfolio Committee

20th April 2010

Addressing issues raised by the Labour Portfolio Committee

20th April 2010

Presentation to the Portfolio Committee on Labour

Presentation to the Portfolio Committee on Labour

Director General: Mr J ManyiDirector General: Mr J Manyi

Department of Labour:

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The BriefThe Brief

As per the Chairperson of the Labour Portfolio Committee’s request, the Department of Labour (DoL) will:

Address the committee on the additional R1 Billion requested by the DoL.

Explain concerns about the alleged unnecessary expenditure by the DoL.

Department of Labour:

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Background Background

On the 16th March 2010, the DoL presented its Strategic Plan 2010 – 2015.

Adequacy of resources to execute strategy.

On the weekend of 21st March, there was a follow up request on the R1 Billion detail.

E-mail to the Senior Managers of the DoL and DoL’s Public Entities.

Department of Labour:

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2009/10 Preliminary Outcome – Under-expenditure2009/10 Preliminary Outcome – Under-expenditure

Total: DoL Budget Allocation

Expenditure to date

Unallocated Expenditure

Variance % Variance

Current Payments 1,238,029 1,240,640 8,771 -11,382 -0.92%Compensation of Employees 642,398 634,206 - 8,192 1.28%Transfers and Subsidies to: 794,281 792,532 - 1,749 0.22%

Payments for Capital Assets 57,974 25,510 - 32,464 56.00%Buildings & Other Fix Structures 32,363 2,087 - 30,276 93.55%Total: 2,090,284 2,058,682 8,771 22,831 1.09%

Total: Dol Excluding ESDS Budget Allocation

Expenditure to date

Unallocated Expenditure

Variance % Variance

Current Payments 1,144,844 1,164,760 8,309 -28,225 -2.47%Compensation of Employees 579,978 579,978 - - 0.00%Transfers and Subsidies to: 488,604 486,776 - 1,828 0.37%

Payments for Capital Assets 49,886 16,881 - 33,005 66.16%Total: 1,683,334 1,668,417 8,309 6,608 0.39%

Department of Labour:

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Total additional funding required by the DoLTotal additional funding required by the DoL

Programme Required Amount(R’ Million)

Administration 215, 000

Inspection and Enforcement Services

250, 000

Public Employment Services 135, 000 ( Rounded Off)

Labour Policy and Labour Market Programmes

300, 000

TOTAL 900,000

Department of Labour:

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Programme 1: AdministrationProgramme 1: Administration MOTIVATION FOR ADDITIONAL FUNDING : ADMINISTRATION

The Branch needs R192,326 million for additional human resources.

In addition, there will be R17 million to ensure the acquisition and implementation of the electronic document management system, furniture and the NIA vetting system (SVIS) + R6 Million for IT Equipment

The additional human resources are meant to capacitate

1. Financial Management, 2. Employment Relations, 3. Training and Development, 4. Performance Management 5. Security Services at Provinces 6. Special Programmes, 7. Organisational Development, 8. Human Resource Planning, 9. Legal Services, 10. ICT, 11. Communications, 12. Risk Management, 13. Internal Audit and 14. Security Services at Head Office.

Department of Labour:

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Programme 2: Inspection and Enforcement Services (IES)Programme 2: Inspection and Enforcement Services (IES)

Major causes of Construction Incidents Jan – Aug 2009

1. Working at elevated position/heights

Failure to develop and implement fall protection plans.

2. Collapses

Structural collapse/ failure. Trench/ excavation collapse.

3. Material failure

Material/ equipment failure due to improper use (e.g. scaffold).

Department of Labour:

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Programme 2: Inspection and Enforcement Services (IES)Programme 2: Inspection and Enforcement Services (IES)

Statistical Report on Construction Incidents

Fatal

Non Fatal

Non Casualty

Total

Department of Labour:

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Programme 2: Inspection and Enforcement Services (IES)Programme 2: Inspection and Enforcement Services (IES)

Inspection & Enforcement Compliance Levels

0

200400

600800

10001200

14001600

18002000

2007 2008 2009

Work PlaceInspected

Complying

NonComplying

Department of Labour:

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Programme 2: Inspection and Enforcement Services (IES)Programme 2: Inspection and Enforcement Services (IES)

Generalists Principals Specialists

SR 8 SR 10 SR 12

Salary Package 1/07/09 (3months) 27,801 81,566 112,130

1/07/2010 (Package inclusive of adjustment 6%)

183,807 259,381 356,574

Total for 2010/11 241,608 340,948 468,704

To appoint numbers above 971 405 240

Total Cost 234,601,543 138,083,928 112,489,067

DOL Portion 60% Generalists only 140,760,926 138,083,928 112,489,067 391,333,920

Less current 1078 inspector & Team leader posts annual

145,371,383

Short fall 245,962,538

Procurement of special & Prof services (EEA & OHSA)

4,037,362

Grand Total 250,000,000

Department of Labour:

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Virtual Labor Market

EmployersJob seekers

Communal organisationsCommunal organisations

Third partiesThird parties

Private job portalsPrivate job portals

CommunitiesCommunities

South African Labor AgencySouth African Labor Agency

Private recruitersPrivate recruiters

Educational institutionsEducational institutions

EURESEURES

Envisaged Public Employment Services (PES) for South Africa Envisaged Public Employment Services (PES) for South Africa (Lessons learnt from Germany)(Lessons learnt from Germany)

One Common Platform for All Labor Market Participants

Department of Labour:

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One Common Database for All Participants

Job vacancies Applicant profilesMatching

Agents in Arbeitsagentur or ARGEAgents in Arbeitsagentur or ARGE

Job seekersJob seekers EmployersEmployers Job portalsJob portals

PESPES PESPES HR-BA-XMLHR-BA-XML HR-BA-XMLHR-BA-XML

PESSPESS

Third partiesThird parties

PESPES EURES 2EURES 2

Envisaged PES for South Africa Envisaged PES for South Africa (Lessons learnt from Germany)(Lessons learnt from Germany)

Department of Labour:

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Features and Services of Public Employment Services

Service for job seekersService for job seekers

Online Face-to-faceMail / Fax / E-Mail Phone Intranet

Service for employersService for employers

Personal dataPersonal data

ProfilingProfiling

Matching for jobsMatching for jobs

Job offersJob offers

ApplicationsApplications

DocumentationDocumentation

AppointmentsAppointments

RehabilitationRehabilitation

Case managementCase management

ReferralReferral

Status calculationStatus calculation

Measures and aidsMeasures and aids

Employer dataEmployer data

VacanciesVacancies

Matching for profilesMatching for profiles

Profile offersProfile offers

Company presentationCompany presentation

DocumentationDocumentation

AppointmentsAppointments

Personal dataPersonal data

SubstitutesSubstitutes

Search for expertsSearch for experts

TasksTasks

CalendarCalendar

Secure messagingSecure messaging

OrganisationOrganisation

Re-organisationRe-organisation

AdministrationAdministration

MatchingMatching

Job robotJob robot

Watch listsWatch lists

Channels

Multi-User ConceptMulti-User Concept

Envisaged PES for South Africa Envisaged PES for South Africa (Lessons learnt from Germany)(Lessons learnt from Germany)

Department of Labour:

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XML-interface for electronic data exchange

Simple form to report vacancies

Collaboration with Companies to Support Recruitment Processes

Online portal with self-service features and support service

■ Call-Center■ Support staff in

agencies■ Key Account Manager

Envisaged PES for South Africa Envisaged PES for South Africa (Lessons learnt from Germany)(Lessons learnt from Germany)

Department of Labour:

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Programme 3: Public Employment Services (PES)Programme 3: Public Employment Services (PES)

Sub-programme Amount Required

Reasons for additional funding

Management & Support Services (PES)

17 840.00 To fund newly created posts, and support structure

Employer Services – All provinces Additional career counsellors for the provinces

Compensation of employees 8,680.00 Additional Staff to match number of Labour Centre

Goods & Services 6,000.00 Tools of Trade

Capital Assets 3,500.00 Additional Machinery & Equipment

Registration & Placement (all provinces)

Compensation of employees 8,148.00 Fund new PES posts at LC’s

Goods & Services 4,000.00 To provide for expanded structure

Capital Assets 3,500.00 Additional Machinery & Equipment

Designated Groups Special Services 1,500.00

SEF 29,000.00 New Management for Product R & D in SEF

PSA 45,000.00

Training of Staff : PE 5,358.00 To replace NSF funding in PSA

Department of Labour:

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Programme 3: Public Employment Services (PES)Programme 3: Public Employment Services (PES)

Other Programmes funded from Different Sources

Programme Funding (R)

Training Lay off UI Contribution 1.7 Billion

Training Lay off NSF contribution 1.4 Billion

Training of Unemployed persons 400 Million

PSA work place challenge DTI 8.5 Million

Department of Labour:

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Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)

Sub-programme Compensation of Employees

Goods and Services (000)

Transfers

(000)

Total

(000)

DDG’s office 250 250

Labour Market Policy Admin

250 250

Collective Bargaining 650 650

Employment Stand. 2,650 2650

CCMA 150,000 150,000

NEDLAC 15,000 15,000

Labour Market Info & Stats

27,000 6000 33,000

Research, Policy & Planning

4,972 35,000 39,975

Total 31,972 44,800 165,000 241,775

International Rel. 12,289 30,048 42,337

Labour & Soc. Policy 2,536 13,355 15,891

Total 14,825 43,403 58,228

Grand Total 300,000

Department of Labour:

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CCMA SolvencyCCMA Solvency

Dec 2009

(3RD Quarter)

March 2009 March 2008 March 2007 March 2006 March 2005

Total (000) Total (000) Total (000) Total (000) Total (000) Total (000)

Total Assets 79,441 38,605 83,532 78,257 51,374 39,614

Non Current Liabilities

(45,882) (38,493) (9,518) (17,664) (3,614) (3,562)

Current Liabilities

(79,441) (60,980) (46,505) (61,425) (42,554) (29,704)

Accumulated Funds

(16,118) (38,493) 9,518 7,018 (3,614) (3,562)

Bailout from DOL

62,000 ----- ----- 10,646 ----- -----

Department of Labour:

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Concluding RemarksConcluding Remarks

Consequences for the programmes of the DoLConsequences for the programmes of the DoL

Programme 1: Administration

Programme 2: Inspection and Enforcement Services (IES)

Programme 3: Public Employment Services (PES)

Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)

Unnecessary expenditure incurred by DoL

Leakage of confidential information

Department of Labour:

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Thank youThank you