Date: 24/02/2003
Source: Ministry of Labour
Title: Mdladlana: Media briefing
MEDIA BRIEFING BY THE MINISTER OF LABOUR, MMS MDLADLANA, Cape Town, 24 February 2003
Members of the media and honoured guests
In the State of the Nation Address the President reiterated this government's commitment to the protection of the most vulnerable of workers in the economy - highlighting the introduction of minimum wages for farm workers and domestic workers and also our Department's intentions to include seasonal and domestic workers in the unemployment insurance safety net.
My fifteen-point programme commits my Department to the achievement of a labour market dispensation that promotes fair labour standards without undermining the imperatives of labour market efficiency. One of the key elements of this vision is the protection of vulnerable workers. The achievements of my Department over the past year include not only the strengthening of the policy and legislative framework protecting these workers, but also the enforcement of these very laws so as to ensure the goals we have set through legislative instruments become a reality for the ordinary working men and women of this country.
Last year saw the promulgation of sectoral determinations for domestic workers and for farm workers. The new Unemployment Insurance Act also came into effect on 1 April 2002, extending the UI coverage to domestic and seasonal workers who were historically excluded from this benefit by the apartheid regime.
The sectoral determinations - which set minimum wages and basic conditions of employment - were groundbreaking in many respects; in particular it is the beginning of a campaign to improve the general lot of vulnerable workers and to highlight the value of the jobs these workers carry out. This for us was the beginning, and what will follow will be ensuring better skills in these sectors, that these workers have better access to retirement benefits and that they are not poorly treated in relation to these conditions at their workplaces. The introduction of a provident fund for the security industry a few months ago was another bold step on our part, in our crusade aimed at providing a safety net for vulnerable workers and their dependants.
When we approached the International Labour Organisation to help us find an international best practice model for administering unemployment insurance for domestic workers, we were informed that no such practice exists anywhere in the world. This undoubtedly implies that this prodigious step we have taken is unprecedented. It is no secret that we will be confronted with intractable administrative challenges as we navigate these unchartered waters. But we will not be deterred. In fact these challenges will only serve to strengthen our resolve to write a few lines in the world's Safety Net Encyclopaedia. This is our contribution towards the government's desire to push back the frontiers of poverty. I would just like to reiterate what I said last Tuesday - Every household that employs a domestic worker, including a gardener, must register if the person works for more than 24 hours in a month. Employers can register as from 20 March by either the website - on www.labour.gov.za - or by filling in and submitting forms at their nearest labour centre.
The UI Act - which demanded and made possible the inclusion of domestic workers - together with the UI Contributions Act also went to the heart of the substantial problems that had plagued the fund since the late 1970s when the then government passed legislation slashing funding and increasing the pool of beneficiaries.
We can already taste the fruits of success - in its tenth month of operation since the implementation of the new Act, the fnd received in excess of 608 000 claims and has made 470 000 payments with a total benefit value of R2.2 billion. Improvements in collection have already boosted collection levels from R220 million per month to R330 million. Better and more sophisticated accounting and actuarial practices also back up the new, efficient collection methods. The fund has also gone from operating in a deficit to producing a surplus. As at the end of November 2002, the fund reflected a net surplus of over R 440-million.
While compliance levels with the new regulations are still not at desired levels the Department has embarked upon an education and communication programme, which will be followed by enforcement and prosecution. The policy objectives that were intended with the promulgation of the new law are now beginning to be firmly embedded within the fund's operations.
The new legislation has de-linked maternity benefits from all other benefits and previous payments. This in effect means that as long as a person was employed and has the necessary credits they can receive maternity benefits in respect of every pregnancy. This is an historic intervention on the part of the fund and the Department, which demonstrates its commitment to gender equality.
Perhaps the most vulnerable of all workers are those caught up in child labour. My department is currently developing a national programme to deal with the problem of child labour with the aim to reduce and ultimately eliminate the worst forms of child labour.
Emerging from the President's declaration of focussing on vulnerable workers, and those we term the working poor, we intend to continue to focus on improving their status. To that end we intend to launch sectoral determinations in the following sectors, children in performing arts, private security, fishing and taxi industries during this year. The recently launched Wholesale and Retail Sectoral Determination will also be vigorously enforced.
Our skills development programme also assists vulnerable workers and the unemployed. For example, R214.7 million was allocated from the National Skills Fund to social development projects. These funds supported the training of over 93 894 people. In the main these funds and this training has been linked to income generating projects.
In my briefing on human resource development and employment last Tuesday, I dealt with both the successes and the goals of the Department's skills development strategies and programmes. There are just some key elements that need to be re-iterated.
We have identified an entire layer of skills, which are either missing or critically scarce in both the public and private sector and we have begun to address these areas of scarce skill in various ways. Government's own training institute trained over 18 088 managers last year alone and in addition to the millions of rands government has allocated to tertiary student loans disbursed by the National Student Financial Aid Scheme and from the National Research Foundation, the National Skills Fund last year allocated funds in support of 1453 new undergraduate and 577 new post graduate bursaries for study in these targeted areas.
The SETAs have also played their part with eight SETAs initiating targeted sectoral skills bursaries. Of course, the implementation of the Immigration Act will also assist us facilitate the entry of those with skills to enter our labour market and assist us to build our economy and support new jobs.
As a means of training school leavers, but at the same time providing them with job opportunities, government is looking to fast-track Learnership take-up. Learnerships are learning opportunities, based mainly in workplaces where learners learn from those with experience to attain occupational skills in areas where skills are needed. Already over 400 new learning programmes have been registered and some 23 416 learners are benefiting from them, but sadly only about 5000 of these are young unemployed people.
Government, as the largest employer, plans to enrol thousands of young people into learnerships both to assist it to deliver public services as well as to create a replenishable pool of skills. As a step towards reaching our 80 000 target for the year 2005, in terms of the National Skills Development Strategy, we shall seek, this year to meet the 50 000 target. It is indeed an ambitious target but in partnership with the private sector this is achievable. We need to also ensure that the majority of those enrolled in learnership are new labour market entrants without work experience.
A key challenge remains to support more existing and new small businesses. However, it is encouraging to note that whilst only about 7% of small firms were able to access grants through the normal claim procedure, at least 10 SETAs had special SMME programmes which have reached 18 275 beneficiaries - either owner managers or workers in these firms. We are learning how to better reach this group of people better all the time. To support this trend I plan to include in the technical amendments to the Skills Development Act that I intend to bring to Parliament this year, a requirement for simplified claim procedures for small firms.
The Department's skills development programme is a win-win for both workers and employers. But I think this is true for most of our interventions, including the sectoral determinations and other means of protecting vulnerable workers.
The win-win nature is guaranteed because our interventions are designed to set and maintain the highest possible standards of labour practices. Poor labour practices are inimical to productivity. Independent labour market commentators have shown through imperial studies and statistical data that the number of person days lost to strikes continue to decline year on year. This is a clear vote of confidence on our labour market policy instruments, which promote proactive dispute prevention mechanisms and non-adversarial conflict resolution mechanisms. The role of social dialogue in the design and implementation of policies, programmes and legislation is yet another important consideration.
Social dialogue - the discourse between labour, business, government and the community - is a defining element of South African labour markets. Perhaps the most visible example of this process, illustrating both the inherent challenges and the robustness of outcomes, is the Labour Law Amendments which were promulgated in August last year.
These amendments were significant in a number of respects. Firstly, after an 18 month, sometimes bruising negotiation process, where the parties moved from diametrically opposed positions to a compromise consensus emphasises my points around social dialogue. The Acts also made a shift in certain respects of our law, giving more flexibility to parties in their relationships, giving Bargaining Councils equivalent powers to the CCMA, thus promoting the concept of self regulation further, as well as implementing innovative ways for dealing with potential retrenchments and thereby minimizing job losses. For example Section 189A of the new Act, gives employees and employers the right to approach the CCMA, when large-scale retrenchments are contemplated. Since implementation, several hundreds of jobs have been saved as a direct result of this process, and in numerous other instances favourable conditions were ensured where retrenchment was unavoidable.
We have already started implementing amendments relating to the de-registration of non-genuine unions and employer organisations. As some of you may be aware, I have already given notice of my intention to de-register bogus unions and employer organisations. This is to ensure that the system of representation is upheld and that these unscrupulous operators do not abuse workers themselves. The Department will also be closely monitoring the Bargaining Councils inclusion of small businesses in their activities, which will form part of our proactive approach to supporting the development of small business.
I am firmly of the view that the recent amendments to labour legislation have managed to strike a balance between labour market efficiency and protection of rights of workers.
In April, at the end of a negotiation process, the social partners, Government, Business and Labour, signed the Accord on Occupational Health and Safety. The Accord is premised on the unwavering co-operation amongst these social partners with different but complementary roles. Government's role will continue to be one of providing a legislative framework, development of programmes aimed at preventing occupational accidents as well as supporting those affected by such accidents. On the other hand business will make the necessary resources available for the sustenance of a healthy and safe work environment as prescribed in the relevant legislation. The workforce involvement is vital in inculcating a robust culture and consciousness of occupational health and safety at the workplace.
The social partners are committed to work together on practical projects. One of the key areas of co-operation is the urgent creation of OHS networks at the factory floor in the form of Health and Safety Committees. At a provincial level we are setting up Provincial OHS Forums where organised business, organised Labour and the department meet regularly to identify risk areas, develop strategies and monitor implementation of the same.
While this partnership is vital, it unfortunately, has not meant that the Department will no longer need to enforce the OHS Act. The Department is continuously pursuing a vigorous programme of integrated inspections. For example in KwaZulu-Natal within two weeks 736 workplaces were inspected. During these inspection 288 contravention notices, 201 recommendations to prosecute, 115 improvement notices and 15 prohibition notices were issued. Our Free State and Gauteng North offices released similar figures. What we have learned from these blitz inspections is that 20 inspectors inspect an average of 700 workplaces in two weeks. During this inspection programme 1670 contravention and improvement notices were issued, 31 prohibition notices were issued and 243 Prosecution notices. These figures reflect that the level of compliance still leaves much to be desired and that calls for more co-operations among the social partners to correct this.
While working closely with social partners to reduce incidents of occupational injuries, diseases and fatalities, we have also increased the visibility of labour inspectors in factories. Together with our colleagues in the media, we ensure that unscrupulous employers who have no regard for the welfare of workers are named and shamed. In some instances we were reluctantly compelled to shut down operations in defence of the inalienable right of workers to life and physical integrity. The occupational health and safety campaign will be intensified this year focusing on specific sectors of the economy. These will be carried-out through the continuation of an inspection programme my Department lunched two years ago.
Workers, who in spite of efforts aimed at protecting them from getting sick or injured, do get sick or injured on duty; are compensated from the Compensation Fund - and so are their dependants in the event of death.
The process of making a claim is more complicated than I would like, but has to be in order to guard against fraud and corruption. The fund has embarked on a vigorous programme of education, aimed at ensuring that people are aware of their rights and of processes to follow in the event they need to claim from the fund.
The process of decentralising Compensation Fund functions to the provinces is at an advanced stage. Once completed, the turn around time between application for compensation and actual payment will be reduced.
We have made some inroads in implementing Employment Equity legislation. In August last year, the Department released a Code of Good Practice for the Employment of People with Disabilities. This code aims to guide employers and employees on promoting employment opportunities for people with disabilities and also to assist them in understanding their rights and obligations.
I remain perturbed about the poor representivity in certain occupational levels by workers who hail from designated groups. Black people, women and people with disabilities are still found at the lowest levels of the occupational ladder. Government has taken a decision not to do business with companies that continue to marginalize those who were historically disadvantaged.
This year we will be implementing what the law referred to as the Director-General's review which assesses substantive compliance. Together with the Commission for Employment Equity, we shall name and shame companies with a dismal record with regards to Employment Equity.
I will also shortly release the Second Annual Employment Equity Report - which was recently completed by the Commission on Employment Equity. The report will give an over-all picture of the status of employment equity in South African workplaces.
It is hoped that by the end of this year everyone will understand the employment equity imperative as part of the transformation of our society.
My Department's activities have not been limited to our own borders. NEPAD and the newly launched African Union brought along a new challenge whereby we can no longer view our labour market in isolation. The groundwork for harmonisation of regional labour market policies has been set. Recently, I held intensive bilateral discussions with my Zimbabwean counterpart on labour issues that affect both our countries. An agreement was also signed with Mozambique.
A Memorandum of Understanding signed in Maputo during January - should be seen as a continuation and deepening of the work of the Joint Permanent Commission on Cooperation which is led by our countries' respective Presidents.
Last year saw South Africa's election as a Principal member of the ILO Governing Body for the period 2002-5, this election gives South Africa full voting rights which strategically places us in a situation where we can influence the ILO's policies for the next two years. After South Africa's election to the body the ILO Director General, Mr Juan Somavia, visited South Africa. During his visit, Mr Somavia paid tribute to our dispute prevention institution, the CCMA and to Nedlac - our institution for social dialogue. During the course of the visit Mr Somavia extended an invitation, which President Mbeki accepted, to address the 91st Session of the International Labour Conference that will be held in Geneva in June 2003.
It is now an open secret that my Department has recently been tasked with the responsibility to co-ordinate the Growth and Development Summit mentioned by the President in the State of the Nation address. The summit is scheduled for the beginning of May.
The Summit will address, inter alia, issues of job creation, attracting more investment to South Africa, skills development and improved efficiency and productivity, and equity. We look forward to making a contribution, together with other government Departments and our social partners in steering our country towards a path of higher growth, higher levels of investment, more and better quality work as well as extension of equity.
One of the most common criticisms detractors throw at us is that our plans, targets and goals are too ambitious. Whether accusations are levelled that goals set for the registration of learnerships are unrealistic or that it is impossible to enforce regulations we have promulgated, we are told we are over-stretching ourselves. Well - we are ambitious; we are reaching as far as we possibly can. I say so proudly, because no profound process of transformation succeeds without ambitious goals. We are engaged in revolutionising the way in which labour markets operate, a revolution that will impact on every workplace, every worker and every employer. It is a revolution that will contribute to a stronger economy, safer workplaces, more representative workforce and a more equitable distribution of wealth. To achieve this we do need to be ambitious. Victory is certain.
I thank you
Issued by Ministry of Labour
24 February 2003
Source: Ministry of Labour
Title: Mdladlana: Media briefing
MEDIA BRIEFING BY THE MINISTER OF LABOUR, MMS MDLADLANA, Cape Town, 24 February 2003
Members of the media and honoured guests
In the State of the Nation Address the President reiterated this government's commitment to the protection of the most vulnerable of workers in the economy - highlighting the introduction of minimum wages for farm workers and domestic workers and also our Department's intentions to include seasonal and domestic workers in the unemployment insurance safety net.
My fifteen-point programme commits my Department to the achievement of a labour market dispensation that promotes fair labour standards without undermining the imperatives of labour market efficiency. One of the key elements of this vision is the protection of vulnerable workers. The achievements of my Department over the past year include not only the strengthening of the policy and legislative framework protecting these workers, but also the enforcement of these very laws so as to ensure the goals we have set through legislative instruments become a reality for the ordinary working men and women of this country.
Last year saw the promulgation of sectoral determinations for domestic workers and for farm workers. The new Unemployment Insurance Act also came into effect on 1 April 2002, extending the UI coverage to domestic and seasonal workers who were historically excluded from this benefit by the apartheid regime.
The sectoral determinations - which set minimum wages and basic conditions of employment - were groundbreaking in many respects; in particular it is the beginning of a campaign to improve the general lot of vulnerable workers and to highlight the value of the jobs these workers carry out. This for us was the beginning, and what will follow will be ensuring better skills in these sectors, that these workers have better access to retirement benefits and that they are not poorly treated in relation to these conditions at their workplaces. The introduction of a provident fund for the security industry a few months ago was another bold step on our part, in our crusade aimed at providing a safety net for vulnerable workers and their dependants.
When we approached the International Labour Organisation to help us find an international best practice model for administering unemployment insurance for domestic workers, we were informed that no such practice exists anywhere in the world. This undoubtedly implies that this prodigious step we have taken is unprecedented. It is no secret that we will be confronted with intractable administrative challenges as we navigate these unchartered waters. But we will not be deterred. In fact these challenges will only serve to strengthen our resolve to write a few lines in the world's Safety Net Encyclopaedia. This is our contribution towards the government's desire to push back the frontiers of poverty. I would just like to reiterate what I said last Tuesday - Every household that employs a domestic worker, including a gardener, must register if the person works for more than 24 hours in a month. Employers can register as from 20 March by either the website - on www.labour.gov.za - or by filling in and submitting forms at their nearest labour centre.
The UI Act - which demanded and made possible the inclusion of domestic workers - together with the UI Contributions Act also went to the heart of the substantial problems that had plagued the fund since the late 1970s when the then government passed legislation slashing funding and increasing the pool of beneficiaries.
We can already taste the fruits of success - in its tenth month of operation since the implementation of the new Act, the fnd received in excess of 608 000 claims and has made 470 000 payments with a total benefit value of R2.2 billion. Improvements in collection have already boosted collection levels from R220 million per month to R330 million. Better and more sophisticated accounting and actuarial practices also back up the new, efficient collection methods. The fund has also gone from operating in a deficit to producing a surplus. As at the end of November 2002, the fund reflected a net surplus of over R 440-million.
While compliance levels with the new regulations are still not at desired levels the Department has embarked upon an education and communication programme, which will be followed by enforcement and prosecution. The policy objectives that were intended with the promulgation of the new law are now beginning to be firmly embedded within the fund's operations.
The new legislation has de-linked maternity benefits from all other benefits and previous payments. This in effect means that as long as a person was employed and has the necessary credits they can receive maternity benefits in respect of every pregnancy. This is an historic intervention on the part of the fund and the Department, which demonstrates its commitment to gender equality.
Perhaps the most vulnerable of all workers are those caught up in child labour. My department is currently developing a national programme to deal with the problem of child labour with the aim to reduce and ultimately eliminate the worst forms of child labour.
Emerging from the President's declaration of focussing on vulnerable workers, and those we term the working poor, we intend to continue to focus on improving their status. To that end we intend to launch sectoral determinations in the following sectors, children in performing arts, private security, fishing and taxi industries during this year. The recently launched Wholesale and Retail Sectoral Determination will also be vigorously enforced.
Our skills development programme also assists vulnerable workers and the unemployed. For example, R214.7 million was allocated from the National Skills Fund to social development projects. These funds supported the training of over 93 894 people. In the main these funds and this training has been linked to income generating projects.
In my briefing on human resource development and employment last Tuesday, I dealt with both the successes and the goals of the Department's skills development strategies and programmes. There are just some key elements that need to be re-iterated.
We have identified an entire layer of skills, which are either missing or critically scarce in both the public and private sector and we have begun to address these areas of scarce skill in various ways. Government's own training institute trained over 18 088 managers last year alone and in addition to the millions of rands government has allocated to tertiary student loans disbursed by the National Student Financial Aid Scheme and from the National Research Foundation, the National Skills Fund last year allocated funds in support of 1453 new undergraduate and 577 new post graduate bursaries for study in these targeted areas.
The SETAs have also played their part with eight SETAs initiating targeted sectoral skills bursaries. Of course, the implementation of the Immigration Act will also assist us facilitate the entry of those with skills to enter our labour market and assist us to build our economy and support new jobs.
As a means of training school leavers, but at the same time providing them with job opportunities, government is looking to fast-track Learnership take-up. Learnerships are learning opportunities, based mainly in workplaces where learners learn from those with experience to attain occupational skills in areas where skills are needed. Already over 400 new learning programmes have been registered and some 23 416 learners are benefiting from them, but sadly only about 5000 of these are young unemployed people.
Government, as the largest employer, plans to enrol thousands of young people into learnerships both to assist it to deliver public services as well as to create a replenishable pool of skills. As a step towards reaching our 80 000 target for the year 2005, in terms of the National Skills Development Strategy, we shall seek, this year to meet the 50 000 target. It is indeed an ambitious target but in partnership with the private sector this is achievable. We need to also ensure that the majority of those enrolled in learnership are new labour market entrants without work experience.
A key challenge remains to support more existing and new small businesses. However, it is encouraging to note that whilst only about 7% of small firms were able to access grants through the normal claim procedure, at least 10 SETAs had special SMME programmes which have reached 18 275 beneficiaries - either owner managers or workers in these firms. We are learning how to better reach this group of people better all the time. To support this trend I plan to include in the technical amendments to the Skills Development Act that I intend to bring to Parliament this year, a requirement for simplified claim procedures for small firms.
The Department's skills development programme is a win-win for both workers and employers. But I think this is true for most of our interventions, including the sectoral determinations and other means of protecting vulnerable workers.
The win-win nature is guaranteed because our interventions are designed to set and maintain the highest possible standards of labour practices. Poor labour practices are inimical to productivity. Independent labour market commentators have shown through imperial studies and statistical data that the number of person days lost to strikes continue to decline year on year. This is a clear vote of confidence on our labour market policy instruments, which promote proactive dispute prevention mechanisms and non-adversarial conflict resolution mechanisms. The role of social dialogue in the design and implementation of policies, programmes and legislation is yet another important consideration.
Social dialogue - the discourse between labour, business, government and the community - is a defining element of South African labour markets. Perhaps the most visible example of this process, illustrating both the inherent challenges and the robustness of outcomes, is the Labour Law Amendments which were promulgated in August last year.
These amendments were significant in a number of respects. Firstly, after an 18 month, sometimes bruising negotiation process, where the parties moved from diametrically opposed positions to a compromise consensus emphasises my points around social dialogue. The Acts also made a shift in certain respects of our law, giving more flexibility to parties in their relationships, giving Bargaining Councils equivalent powers to the CCMA, thus promoting the concept of self regulation further, as well as implementing innovative ways for dealing with potential retrenchments and thereby minimizing job losses. For example Section 189A of the new Act, gives employees and employers the right to approach the CCMA, when large-scale retrenchments are contemplated. Since implementation, several hundreds of jobs have been saved as a direct result of this process, and in numerous other instances favourable conditions were ensured where retrenchment was unavoidable.
We have already started implementing amendments relating to the de-registration of non-genuine unions and employer organisations. As some of you may be aware, I have already given notice of my intention to de-register bogus unions and employer organisations. This is to ensure that the system of representation is upheld and that these unscrupulous operators do not abuse workers themselves. The Department will also be closely monitoring the Bargaining Councils inclusion of small businesses in their activities, which will form part of our proactive approach to supporting the development of small business.
I am firmly of the view that the recent amendments to labour legislation have managed to strike a balance between labour market efficiency and protection of rights of workers.
In April, at the end of a negotiation process, the social partners, Government, Business and Labour, signed the Accord on Occupational Health and Safety. The Accord is premised on the unwavering co-operation amongst these social partners with different but complementary roles. Government's role will continue to be one of providing a legislative framework, development of programmes aimed at preventing occupational accidents as well as supporting those affected by such accidents. On the other hand business will make the necessary resources available for the sustenance of a healthy and safe work environment as prescribed in the relevant legislation. The workforce involvement is vital in inculcating a robust culture and consciousness of occupational health and safety at the workplace.
The social partners are committed to work together on practical projects. One of the key areas of co-operation is the urgent creation of OHS networks at the factory floor in the form of Health and Safety Committees. At a provincial level we are setting up Provincial OHS Forums where organised business, organised Labour and the department meet regularly to identify risk areas, develop strategies and monitor implementation of the same.
While this partnership is vital, it unfortunately, has not meant that the Department will no longer need to enforce the OHS Act. The Department is continuously pursuing a vigorous programme of integrated inspections. For example in KwaZulu-Natal within two weeks 736 workplaces were inspected. During these inspection 288 contravention notices, 201 recommendations to prosecute, 115 improvement notices and 15 prohibition notices were issued. Our Free State and Gauteng North offices released similar figures. What we have learned from these blitz inspections is that 20 inspectors inspect an average of 700 workplaces in two weeks. During this inspection programme 1670 contravention and improvement notices were issued, 31 prohibition notices were issued and 243 Prosecution notices. These figures reflect that the level of compliance still leaves much to be desired and that calls for more co-operations among the social partners to correct this.
While working closely with social partners to reduce incidents of occupational injuries, diseases and fatalities, we have also increased the visibility of labour inspectors in factories. Together with our colleagues in the media, we ensure that unscrupulous employers who have no regard for the welfare of workers are named and shamed. In some instances we were reluctantly compelled to shut down operations in defence of the inalienable right of workers to life and physical integrity. The occupational health and safety campaign will be intensified this year focusing on specific sectors of the economy. These will be carried-out through the continuation of an inspection programme my Department lunched two years ago.
Workers, who in spite of efforts aimed at protecting them from getting sick or injured, do get sick or injured on duty; are compensated from the Compensation Fund - and so are their dependants in the event of death.
The process of making a claim is more complicated than I would like, but has to be in order to guard against fraud and corruption. The fund has embarked on a vigorous programme of education, aimed at ensuring that people are aware of their rights and of processes to follow in the event they need to claim from the fund.
The process of decentralising Compensation Fund functions to the provinces is at an advanced stage. Once completed, the turn around time between application for compensation and actual payment will be reduced.
We have made some inroads in implementing Employment Equity legislation. In August last year, the Department released a Code of Good Practice for the Employment of People with Disabilities. This code aims to guide employers and employees on promoting employment opportunities for people with disabilities and also to assist them in understanding their rights and obligations.
I remain perturbed about the poor representivity in certain occupational levels by workers who hail from designated groups. Black people, women and people with disabilities are still found at the lowest levels of the occupational ladder. Government has taken a decision not to do business with companies that continue to marginalize those who were historically disadvantaged.
This year we will be implementing what the law referred to as the Director-General's review which assesses substantive compliance. Together with the Commission for Employment Equity, we shall name and shame companies with a dismal record with regards to Employment Equity.
I will also shortly release the Second Annual Employment Equity Report - which was recently completed by the Commission on Employment Equity. The report will give an over-all picture of the status of employment equity in South African workplaces.
It is hoped that by the end of this year everyone will understand the employment equity imperative as part of the transformation of our society.
My Department's activities have not been limited to our own borders. NEPAD and the newly launched African Union brought along a new challenge whereby we can no longer view our labour market in isolation. The groundwork for harmonisation of regional labour market policies has been set. Recently, I held intensive bilateral discussions with my Zimbabwean counterpart on labour issues that affect both our countries. An agreement was also signed with Mozambique.
A Memorandum of Understanding signed in Maputo during January - should be seen as a continuation and deepening of the work of the Joint Permanent Commission on Cooperation which is led by our countries' respective Presidents.
Last year saw South Africa's election as a Principal member of the ILO Governing Body for the period 2002-5, this election gives South Africa full voting rights which strategically places us in a situation where we can influence the ILO's policies for the next two years. After South Africa's election to the body the ILO Director General, Mr Juan Somavia, visited South Africa. During his visit, Mr Somavia paid tribute to our dispute prevention institution, the CCMA and to Nedlac - our institution for social dialogue. During the course of the visit Mr Somavia extended an invitation, which President Mbeki accepted, to address the 91st Session of the International Labour Conference that will be held in Geneva in June 2003.
It is now an open secret that my Department has recently been tasked with the responsibility to co-ordinate the Growth and Development Summit mentioned by the President in the State of the Nation address. The summit is scheduled for the beginning of May.
The Summit will address, inter alia, issues of job creation, attracting more investment to South Africa, skills development and improved efficiency and productivity, and equity. We look forward to making a contribution, together with other government Departments and our social partners in steering our country towards a path of higher growth, higher levels of investment, more and better quality work as well as extension of equity.
One of the most common criticisms detractors throw at us is that our plans, targets and goals are too ambitious. Whether accusations are levelled that goals set for the registration of learnerships are unrealistic or that it is impossible to enforce regulations we have promulgated, we are told we are over-stretching ourselves. Well - we are ambitious; we are reaching as far as we possibly can. I say so proudly, because no profound process of transformation succeeds without ambitious goals. We are engaged in revolutionising the way in which labour markets operate, a revolution that will impact on every workplace, every worker and every employer. It is a revolution that will contribute to a stronger economy, safer workplaces, more representative workforce and a more equitable distribution of wealth. To achieve this we do need to be ambitious. Victory is certain.
I thank you
Issued by Ministry of Labour
24 February 2003
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