National Assembly, 18 May 2001
Madam Speaker, today people of our country black and white, young and old, can say without equivocation and with great confidence, that as a country and as a nation we are on course.
While the positive signs we see in the tapestry of our social-economic landscape do not suggest that we have already reached our desired destination, only those who fail to see reality for what it is would refuse to admit that we are indeed on course. Each step we take in developing and implementing progressive policies; as we have done, has brought us closer and closer to our destination.
Madam Speaker, we are on course in steering this country away from the route of an economy which was mismanaged and destined to collapse. We are on course in creating an environment conducive to job creation. We are on course in promoting high levels of productivity through skills development. We are on course in combating unfair discrimination in the workplace. We are on course in breaking the back of adversarial labour relations and in ensuring that employers do not exploit vulnerable workers with impunity. Madam Speaker, we are on course in taking decisive steps to tackle problems we face in the occupational health and safety environment. For we are determined to ensure that, no employer places profits ahead of human life. Madam Speaker, we are on course.
The path we have chosen is not paved with the glitter of gold. But, even as we feel our way through thorn-breeding bushes; climb sky-scraping hills; and navigate crocodile-infested waters, we remain undaunted by the complexity of our assignment and the length of the journey ahead because we know, we are on course.
Since 1994, we have marched proudly and tirelessly on this challenging path as we began to redraft policies and legislation with a determination to deepen our democracy, grow our economy, promote international competitiveness, create employment opportunities, promote skills development, equity, social justice, and eradicate poverty. While acknowledging the impossibility to reverse within seven years the intractable and stupendous mess the apartheid regime created over several generations, we do nevertheless derive satisfaction from the fact that the measures we have introduced in the labour market enable us to echo the President's words when he said during the state of the nation address that "gradually, step by step our country is moving away from its painful past." In that regard, Madam Speaker, you will no doubt agree that we are on course.
Madam Speaker, we are on course in reducing adversarial labour relations and in promoting workplace peace and stability. Our own figures as well as independently collected statistics tell us that the number of person days lost due to strikes is gradually declining. In fact last year the number of person days lost was at an all time low. In addition, the vast majority of strikes are procedural and there is very little violence associated with strikes.
There are a number of reasons for these exciting figures. One of them relate to the fact that the changes which the 1995 Labour Relations Act introduced, are beginning to bear fruit. Employers and employees have become familiar with the new procedures and are using them more and more to strengthen and consolidate collective bargaining. Strong mature collective bargaining means that disputes such as those relating to wages are more likely to be settled through negotiations than having to resort to strike action. The significance of this phenomenon is that it heralds a dispensation whereby the labour market has become more stable and less unpredictable. This is an undeniable and resounding affirmation of our approach to labour market policy.
The labour market policy review process we undertook last year, also confirms in no uncertain terms that our policies are sound and in line with our vision to maintain an illusive balance between labour market efficiency and decent labour standards. Therefore, the proposed amendments to the Labour Relations Act and the Basic Conditions of Employment Act that I announced last year are not aimed at overhauling labour market policies but at improving application of the law, increase sensitivity of our laws towards the imperatives of job creation and in the words of the President: "to address unintended consequences." As you may know, social partners are engaged in debating the draft bills at NEDLAC and through other bilateral processes. The vitriolic cacophony sparked by some of the controversial changes I proposed has now evaporated without trace as social partners engaged each other and began to understand what government sought to achieve through these amendments.
I have given sufficient time and space to social partners to debate the proposals; and based on the feedback I have received it looks like this country will indeed be graced by an unprecedented miracle. It is indeed unprecedented in this country for organised business and labour to rise above their respective immediate interests as they have now demonstrated to promote the interest of the broader citizenry. I therefore, would like to congratulate organised business and labour for the broad agreement that these constituencies are busy drafting. I can assure them that government will take the proposed deal very seriously in finalising the proposed Bills before they are tabled in Parliament. But it is equally important for me to register my growing impatience and concern at the slow pace that this process has assumed. While I understand that quality time is necessary for quality deals, we cannot allow captains of industry and workers' representatives to talk forever. We need to bring finality and closure to this matter and in this regard, I expect a report from NEDLAC no later than June this year.
Madam Speaker we are also on course in implementing skills development legislation passed by this honourable House. In order to address the skills deficit which continues to restrain the rate at which our economy may grow, my department has launched a National Skills Development Strategy, whose objective are:
Each objective is linked to a set of measurable targets. The targets include, for example, ensuring that 75% of large firms are claiming grants and enjoying measurable benefits, and, 80 000 young people are in learnerships by March 2005 and ensuring that at least 50% of those that have completed learnerships are in some form of employment or in further study thereafter. Similar targets have been agreed to; for each objective.
This strategy advances key aspects of the Human Resource Development Strategy spearheaded by my department and the department of education; and announced by the President in this year's state of the nation address.
I am confident that with the energy of my team in the department matched by the energy and commitment of employers who are hungry for skilled staff and workers who are hungry to learn, we will meet these targets. Madam Speaker, this is one of the key interventions which will also ensure that gradually, step-by-step our country moves away from its painful past.
OCCUPATIONAL HEALTH, SAFETY AND COMPENSATION
Madam Speaker, I remain deeply saddened and devastated by the incident that occurred in a Lenasia factory last year, where 11 workers died following a fire outbreak. As you know, the owner of the factory and his manager are facing serious criminal charges. Certain senior officials of the department suspected of having acted with indiscretion and ineptitude have been suspended and charged. I trust that the outcome of these processes would send a clear signal that the state will not tolerate conduct which show contempt for the lives of others.
Following the Lenasia incident inspectors of my department flooded industrial parks throughout the country to assess the extent of non-compliance with workplace safety standards. Within a three weeks period, more than 500 factories were visited. We were horrified by the extent of non-compliance in most small factories. In some instances employers and workers alike, were ignorant of safety regulations and in other instances it was found that employers knowingly and dismissively disregarded safety regulations taking advantage of the relative vulnerability of workers. Our revised enforcement strategy is now informed by these findings which we cannot afford to ignore. To this end we have launched an awareness campaign in collaboration with the three main labour federations: COSATU; FEDUSA; and NACTU, supported by Business South Africa.
This campaign has resulted in the establishment of safety and health committees to monitor compliance in various workplaces. We have also intensified blitz inspections to improve visibility of labour inspectors in factories. We have also decided to be more targeted and to focus on areas identified as "hot spots". All these strategies are aimed at ensuring that we provide the highest possible standards of protection for workers.
Madam Speaker, I would like to pause for a moment and give a well-deserved tribute to inspectors of my department for their commitment and dedicated service under very difficult and trying circumstances. Sometimes they have had dogs set on them by bellicose farmers; some have suffered verbal and physical abuse at the hands of belligerent employers.
Ek wil graag aan al my toegewyde inspekteurs se dat julle nie moet moed verloor wanneer julle, as gevolg van julle deeglike werk, beledig of vervolg word nie. Kuni maqobo nomaqobokazana, majoni ndini angamadindala nabalindi beli sebe lezabasebenzi, nifunzwa ngezinja, nityatyekwa ngezithuko; nityityimbiselwa iminwe ngenxa yokuba nisenza umsebenzi wenu ngondiliseko nangomonde; ndifuna ukuthi qinani; ndifuna ukuthi lo uphetheyo urhulumente ungecala lenu; uzimisele ukujongana neemfuno zenu ukuwenza lula umsebenzi wenu omkhulu kangaka.
Madam Speaker, when it comes to the issue of safety of workers you can expect a zero tolerance approach from my department.
EMPLOYMENT EQUITY
Madam Speaker, the problem of racism and sexism in our country did not evaporate with the adoption of what is deservedly referred to as one of the most progressive Constitutions in the modern world. Black people, women and people with disabilities continue to suffer the indignity of being marginalised and discriminated against in the workplace. It is not by accident of history that the majority of unemployed people are black. This is a result of many years of social engineering by the Nationalist Party racism regime; which has left us a legacy we cannot think away or sweep under the carpet. Madam Speaker, a number of interventions are required for us to move this country away from its painful past. It was in recognition of this accomplished fact that this honourable House passed the Employment Equity Act, which my department administers. Empowered by this Act, my department has rolled-out a number of initiatives aimed at ensuring that those who hail from designated groups are given the chance and opportunity they rightfully deserve.
In October last year, we released the first employment equity report based on reports from companies who employ over 150 employees. We plan to release within a couple of months, a more comprehensive report on all employers who have reported.
Despite what our detractors said about us not having the capacity, we were able to receive, capture and analyse all the reports sent in. The problems seemed much greater from the employer's side. Despite the 18-month breathing period from the time the law was passed and the date when reports were due, about one third of companies still wanted extensions!
The results released so far speak mountains. Black people only make up 27% of senior managers including legislators. This means that employers continue to discriminate against professionals from designated groups. This is unacceptable in a country that suffers from an acute skills deficiency. However, some companies have made significant headways and are beginning to reap the benefits of doing so. The challenge in the next period for the department is to provide more support for employers and workers that are trying to achieve this goal and to take action against those that show no will to comply.
One area of support that we are working on is the development of a number of guidelines and Codes of Good Practice to ensure the proper implementation of the Employment Equity Act.
On 1 December 2000, I promulgated the Code of Good Practice on Key Aspects of HIV/AIDS and employment. This Code covers a range of topical and important issues including HIV testing, confidentiality and disclosure, discrimination, counselling and support, ensuring a safe working environment and workplace programmes. So brilliant and comprehensive is our Code that even the International Labour Organisation has decided to use it as a basis for developing a Code that will enjoy international status.
On 20 April, I released for public comment a draft Code of Good Practice on Key Aspects of Disability in the workplace. This Code is intended to be a guide on how to employ, retrain and value people with disabilities in a work environment. So, Madam Speaker, while admitting that we aren't there yet, we can nevertheless confirm that we are on course.
Madam Speaker, my department remains committed to the protection of vulnerable workers through the implementation of the Basic Conditions of Employment Act.
To this end, we have published, last year, a sectoral determination for security workers. The process of finalising a follow up sectoral determination is at an advance stage. I am encouraged by the way that employers and employees are co-operating in resolving this matter. As required by law I will wait for the Employment Conditions Commission to submit its report and recommendations on this matter before I promulgate a sectoral determination. In the meantime, the parties are bound by what I determined last year. Given that the security industry employs workers who are amongst the most exploited in South Africa, we have also set up for the first time in terms of the BCEA a security workers provident fund in order to improve their conditions and benefits structure. These measures will constitute a giant milestone in moving workers in the security industry; step-by-step away from their painful past.
This year high on our agenda is the setting of minimum wages and conditions of work for farm and domestic workers. During the next few weeks, I will be releasing for public comment two detailed reports on the conditions of work of farm and domestic workers and on our proposals in respect of wages and conditions of work.
We have already held public hearings throughout the country and asked the public for comments. But, in order to ensure that all views are heard and concerns taken into account, we are giving employers and workers a further opportunity to express their views and influence the outcome. The Employment Conditions Commission will consider all these views and advise me so that these determinations may be finalised.
The promulgation of a sectoral determination and Code of Good Practice for workers on job creation schemes can also be expected shortly. The sectoral determination is already finalised and I am awaiting feedback from NEDLAC in respect of the Code of Good Practice. This initiative will undoubtedly create an environment for more jobs to be created. When more jobs are created, more people will be able to put food on the table and more parents will be able to send their children to school and the vicious circle of poverty, ignorance and disease will be broken as this country accelerates its pace further and further away from its painful past.
UNEMPLOYMENT INSURANCE
Madam Speaker, I have recently tabled to this Parliament the new Unemployment Insurance Bill. When this Bill is passed as law and implemented, it will be implemented with a new information technology system which my department has developed in anticipation of these legislative changes. This system records every employer that contributes to the Fund, allows for electronic payments, establishes the eligibility of a claim electronically and enables clients to receive their benefits electronically.
When the proposed bill is passed into law by this honourable House, it is expected that it will reduce incidents of non-compliance by employers, reduce the vulnerability of the Fund from being defrauded; and bring to an end the structural deficit of the Fund and stop the arbitrary and unfair denial of unemployment insurance benefit to domestic workers, thus contribute to the creation of an effective social security system. Madam Speaker, these are the types of initiatives that make us say unashamedly that indeed we are on course in steering this country away from its painful past.
Madam Speaker, the year 2001 also marks a significant strategic shift for the Department of Labour. A shift away from policy formulation to a focus on implementation of legislation. It was in contemplation of this shift that the department was re-structured into business units charged with delivery of services at provincial offices and labour centres. The structure of our budget reflects this shift. In order to effectively pursue this new direction, we have created a new programme called 'SERVICE DELIVERY PROGRAMME'.
Madam Speaker, the Minister of Finance will be delighted to know that we are not asking more money to carry out this programme. Instead, we will decentralise resources from head office to labour centres where officials of the department interface directly with our clients.
Through this programme, the department would be able to provide a comprehensive service in the best way at the least cost. However, this vision would not be realised without the support of an Information Technology Programme to be launched this year via a Public Private Partnership (PPP). Once fully rolled-out, this programme will speed up the processing of Unemployment Insurance applications as well as claims for occupational injuries and diseases. Decisions regarding training and placement of job seekers will be informed by provincial skills plans and taken by officials who operate at the coalface.
The Integrated Inspection and Enforcement task team has now developed a comprehensive enforcement strategy to be rolled out this year. While the strategy seeks to promote voluntary compliance, it also takes a hard-line approach towards habitual non-compliance. Informed by this strategy, inspectors have begun inundating workplaces and demanding compliance with labour legislation. Nothing vindicates our integrated approach to inspection better than the workplace accident statistics. Since the implementation of the integrated inspection, system there has been a 17.3% decrease in workplace accidents. The capacity of the department to provide proactive inspection and to speedily investigate accidents has been tremendously enhanced. Despite this phenomenal decrease in the number of accidents, I remain concerned that there are people who still go to work to die. As far as I am concerned, one death is one too many. That is why the integrated inspection and enforcement strategy focused on prevention and seeks to promote collaboration with workers and employers without which our efforts aimed at preventing workplace accidents and deaths are sure to fail.
The creation of the Labour Market Information business unit in the respect provinces has enabled us to monitor labour market trends in each province to develop appropriate labour market interventions unique to a given province.
The creation of a Management Support Services unit in each province has ensured that decisions regarding employment, training and disciplining of officials of the department are decentralised and carried out in situations albeit within a framework of a national policy.
Compliance with the Public Finance Management Act by departmental officials has also been enhanced by this decentralisation model. That is why Madam Speaker, we are able to say that even if we have not yet reached the proverbial promised land; we are on course.
In line with our commitment to staff development we have exposed most of our supervisory staff to management training programmes while the majority of our operational staff have been provided training aimed at enhancing their competence to do their work more effectively. The fact that my department has become a fishing pond for the private sector and other government departments who lure our competent officials by appointing them to higher positions will not deter us from pursuing our commitment to developing skills of our workforce.
Concerning employment equity, Madam Speaker, my department leads by example. Many companies and state institutions salivate with envy at our employment equity figures.
For instance, more than 92% of managers above deputy director level are from designated groups.
So, Madam Speaker, we are not asking others to do what is impossible or what we ourselves cannot do.
In line with government's zero tolerance for corruption, my department has during this financial year dismissed all officials found guilty of fraud and corruption.
In line with Batho Pele, my department has recently adopted a Service Charter that commits officials of the department to a high standard of service delivery; characterised by courtesy towards clients, efficiency and professionalism in service delivery. It is by these standards that we must be judged - not because we lay any claims to infallibility or perfection. We have adopted this Charter with all humility we can master; simply because we are committed to serving those who face the threat of being harmed or killed at work. We have adopted this Charter so that it could guide us as we seek to serve those whose dignity and self esteem has been eroded by the pain of joblessness, those whose potential to ascend the corporate ladder has been constrained and frustrated through lack of skills, those who have been prevented from pursuing careers of choice because of colour, gender and physical disability; and those who are systematically denied decent labour standards. Those are the people for whom we exist. Those are the people we dare not fail.
Madam Speaker, while we are yet to reach our destination, we can see with a clear eye that we are getting closer and closer, that is why we can say with an honest voice that indeed Madam Speaker, we are on course.
Allow me, Madam Speaker, to conclude by thanking persons and institutions that have contributed to our successes during the previous financial year. First, I would like to pay a well-deserved tribute to my learned Director-General, Adv Rams Ramashia, for his unqualified support, outstanding performance and unparalleled commitment to the vision of the department. I would like to also thank my overworked team of senior managers many of whom are present in this house today. I would like to say to them.
I would also like to thank the foot soldiers of the department in provincial offices and labour centres for their commitment and hard work. Social partners for their much-needed support. All statutory institutions that complement the work of the department.
I will be failing in my duty if I do not acknowledge the stunning work done by the Portfolio Committee on Labour in effectively carrying out their oversight role under the leadership of Comrade Salie Manie. Their contribution in this regard has also helped in ensuring that we remain on course.
I thank you