Issued by Department of Labour
7 March 2000
Focus for 2000 is on effective implementation of labour legislation and service delivery
The Department of Labour's programme of action for 2000 will target improved service delivery and the effective implementation of new labour legislation, Director General Adv Rams Ramashia told the parliamentary labour portfolio committee today [7 March] in a briefing on the Department's programme and budget for the year.
Ramashia said that the Department's activities had previously been dominated by policy development, putting in place a new legislative framework and setting up new labour market institutions. However, the new programme of action signalled a strong shift towards implementation.
"It is a programme to ensure delivery on the commitments and labour market priorities outlined in the Minister of Labour's 15-point programme for the next five years and the President's State of the Nation address on 4 February 2000," he said.
"The emphasis is now firmly on the effective implementation of legislation to achieve specific labour market objectives and outcomes and to ensure that the range of public services which the Department delivers are professional and client-orientated"
Ramashia said the programme for 2000 sets the stage for the Department's five-year strategic plan, which runs until 2004, and would lay the basis for both greater labour market efficiency and fair labour standards, particularly for vulnerable workers.
In a presentation to the portfolio committee, Ramashia and other senior Departmental officials outlined key activities and outcomes for the year, as well as budget allocations.
Skills Development
Much attention was focused on the Department's flagship Employment and Skills Development Services programme, which is tasked with the implementation of the Skills Development Act and the Skills Development Levies Acts and receives over a third of the Department's budget.
Until now, South Africa's poor skills levels and a lack of investment in skills development has been a serious obstacle to economic growth. "The implementation of the skills legislation is set to change this and unleash a skills revolution which will boost productivity, competitiveness and investment, as well as job creation," Ramashia said.
Committee members were told that it was all systems go for the widely heralded skills programme. The National Skills Authority (NSA), made up of stakeholders, the National Skills Fund and a Skills Development Planning Unit within the Department had been established.
The Department had driven extensive preparations with stakeholders to set up Sector Education and Training Authorities (Seta). Applications to form Setas had been received in November last year and constitutions and business plans had been scrutinized. In March 2000, the Minister of Labour is expected to formally establish 25 Setas covering each sector of the economy.
A marketing strategy is to be launched in April 2000, sector skills plans are earmarked for completion in late September while the National Skills Development Strategy is scheduled to be launched in November this year.
In preparation for the 1 April 2000 D-day when companies will be paying the 0,5% skills levy, Departmental and SA Revenue Service staff have been trained and a helpline set up to assist the public, particularly levy-paying companies. A funding regulation outlining how firms can claim back grants from levies paid was published in February.
Another key focus has been on skills development facilitators, people identified by firms to prepare workplace skills plans. A workshop organized by the Department had been held in February, and more are planned due to massive public demand.
Significant progress had been made in the implementation of learnerships, including through a pilot project in KwaZulu Natal and the launch of a tourism sector initiative funded by the Department of Labour and the Business Trust which will result in the 15 000 learnerships. Draft regulations on learnerships had been published for public comment and would be finalized by the NSA in April this year.
Labour Relations
Within the Labour Relations programme, the main emphasis will be on the implementation of the Employment Equity Act and the Basic Conditions of Employment Act, as well as the introduction of amendments to aspects of the Labour Relations Act and the BCEA to address unintended consequences.
Milestones in the implementation of the Employment Equity Act would include:
Vulnerable workers
In fulfilling the Minister of Labour's commitment to protect vulnerable workers, Ramashia said the Department would undertake extensive work on sectoral determinations detailing minimum wages and conditions for domestic and farm workers, as well as workers in the retail, hospitality, clothing, civil engineering sectors and for learnerships in the hospitality industry.
Occupational Health and Safety
In the area of Occupational Health and Safety (OHS), the Department will play the leading role in implementing a cabinet decision to integrate OHS competencies currently under the Departments of Labour, Health and Minerals and Energy.
A preventative campaign to promote workplace health and safety is to be launched in 2000 to raise awareness and build capacity among stakeholders. Special attention will be paid to health and safety in small businesses and in the informal sector.
The Compensation Fund will be concentrating on improved service delivery through automation and decentralization, as well as developing policy on new areas such as compensation of workers who contract HIV/Aids in the workplace and extending coverage to domestic workers.
Unemployment Insurance
Last week the Minister of Labour released for public comment the new Unemployment Insurance Bill to improve enforcement and compliance, extend unemployment insurance coverage, improve financial viability and improve coordination with other social security initiatives.
Negotiations in Nedlac and the new legislation's passage through parliament would be a top priority for the Department this year, Ramashia said.
Labour Market Policy
A range of initiatives were underway to monitor, analyse and disseminate labour market information and statistics. Research was being conducted to determine the impact of labour market policies and would inform future policy formulation. One such project, the Mesebetsi labour force survey, was scheduled for release shortly.
Other research projects on the economy's capacity to absorb new professionals and casualisation were underway.
International Relations
The Department's key areas of work in international relations included Africa, the International Labour Organisation and technical cooperation. The Department would be advocating the establishment of a common regulatory framework on labour, employment and related social issues in Africa as well as the adoption of an SADC labour relations protocol.
Administration
Key focusses of the Department's administration would be the establishment of a Public Private Partnership to set up an electronic one-stop service, which would underpin the Department's commitment to accessible, professional and client-oriented services.
Ramashia expressed confidence that the Department would be ready for the implementation of the Public Finance Management Act, which comes into effect on 1 April 2000, and said significant groundwork including training and awareness raising had been done.
Human Resource Management
To ensure that the Department was well-positioned for improved delivery, its Human Resource Management chief directorate would be concentrating on systems on performance management, job evaluation, strategic planning, reporting and evaluation systems and promoting sound internal labour relations.
Critical new projects will be the development of the Department's first Employment Equity and Skills Development Plans, as well as consolidating an effective HIV/Aids programme, including employee assistance.
Budget
The Department's R748 327 000 budget is to be spent as follows:
| Administration | 20,7% |
| Occupational Health and Safety | 4,9% |
| Social Insurance | 2,9% |
| Employment and Skills Development Services | 36,7% |
| Labour Relations | 28,5% |
| Labour Market Policy | 4,5% |
| Auxillary | 2% |
A total of R285,6 million of the Department's budget goes to statutory bodies such as the CCMA, Nedlac, National Productivity Institute and the National Skills Fund.
For more information contact:
Annette Griessel
Tel: 012 309 4788
Cell: 082 887 3581
James Moche
Tel: 012 309 4804