Issued by Department of Labour
15 August 2002
Introduction
Comrades and friends, colleagues from the media, ladies and gentlemen, it is that time of the year, when the people's government discharges its self-imposed obligation to report to the citizenry; on progress in achieving its stated goals for the year.
At a gathering of this nature, it is expected of me to make you aware that the Skills Development Strategy, which I launched last year, has, in the first six months of this year, yielded remarkable results. Indeed, many of you were stunned when I said at the beginning of the year that I was confident that my department would meet the target of registering 3000 learners by the end of March. It is no minor achievement that we not only reached that ambitious target but more than doubled it. As I speak, there are about 7700 learners registered in the learnership scheme. These men and women have been granted an opportunity to acquire new knowledge, learn a new skill, and obtain much needed experience while they earn an income. It is no exaggeration to say that this initiative shall contribute immensely towards pushing back the frontiers of poverty and providing a better life for those who were disadvantaged by the shameful policies of the past. With the tax incentive provided to companies that register learnerships, we are confident that we will be able to meet our target for 80 000 learners by the year 2005.
In this media briefing, I am also expected to comment on the performance of the Sector Education Training Authorities [SETAs]. Many of you were present in this house at the beginning of the year when I remonstrated with some of the SETAs, reprimanding them for their unacceptable low spending patterns. I charged then that their low levels of expenditure were a proxy indicator for lack of training. I also said that given the causal connection between unemployment and lack of skills in our country, it was critical that employers should priorities training. Most of you will no doubt remember my clarion call to employers to "claim and train". I still await final audited figures to make further pronouncements on this issue but preliminary figures at my disposal show that about R1, 7 billion or 87% of funds disbursed to SETAs have either been paid in grants or have been paid to projects identified as sector priorities.
The National Skills Fund has spent about R150 million to train more than 72 000 people. The National Skills Fund has also disbursed R1,3 billion to strategic projects aimed at benefiting about 350 000 learners over the next three years. Despite these milestones and our illustrious performance in implementing the Skills Development Strategy; I must register my disappointment at the behaviour of certain SETA officials who use their fiduciary positions to perpetrate acts of corruption, fraud and nepotism. My department's intolerance of this nefarious behaviour has been demonstrated in the way we always move swiftly to investigate every substantiated allegation of impropriety and follow up leads pointed to us by whistle blowers. The media has played a pivotal role in this regard and I would like to commend you for your role in whistle blowing and thereby helping us to nip corruption in the bud.
It is not my intention, this morning, to tell you about how my department has successfully began to implement the new Unemployment Insurance law and how we have improved on our claim-processing procedures in the workers' Compensation Fund. I also do not intend to boast about how the visibility of labour inspectors in workplaces has resulted in a phenomenal decline in workplace accidents and in awakening a realisation that employers will no longer violate workers' rights with impunity. For many of you have reported on the many compliance and prohibition orders my inspectors have served on recalcitrant employers who violate rights of workers. Sadly, in certain instances, we have had to shut down operations in order to protect the lives of workers.
Ladies and gentlemen, in my opening remarks, I indicated that it was not my intention to give you a comprehensive account of the performance of my department. Instead, I would like to dedicate this briefing to the gallant heroines of our struggle whose determination for freedom caused them to flood the streets of Pretoria as they marched to the Union Buildings in August of 1956. I speak of women of South Africa, who from generation to generation passed on the baton of the struggle for the liberation of our people. I speak of women whose quest for freedom, justice and equality subdued their fear for detention, torture, teargas or even death. Some of these women carried children on their backs as they marched, symbolising the burden they had to carry on daily basis as the laws of this country had reduced them into beasts of prey.
While we have indeed conquered the apartheid regime and established a democracy, many of the women of our land continue to languish under the crushing burden of poverty and underdevelopment. Many of these women work in our households. As domestic workers, they look after our children so that we may be able to earn an income. They clean our houses so that we may enjoy a healthy life. They cook our food so that we may live. They wash and iron our clothes so that we may look as presentable as many of you look today. Yet, despite the significant contribution they make to the economy of our country, many of these backroom operators whose contribution is undervalued; and on whose sacrifices so many of us depend; are the most exploited workers in the labour market.
Our research has revealed that many domestic workers work long and unregulated hours, with inadequate rest periods. Many of them do not enjoy paid sick leave and annual leave and are paid meagre salaries. In other words, the provisions of the Basic Conditions of Employment Act (BCEA), aimed at providing a floor of rights for workers, is inadequate to deal with the unique circumstances of domestic workers.
Part of the reason is that domestic work is often perceived as an extension of unpaid household duties rather than a legitimate productive and economic activity. In most instances, there is one worker for one employer and this often leads to highly individualised employment relationships, which can be subject to unequal power relations and abuse. In many instances, employers exert inordinately high levels of control. The lifestyles of domestic workers remain regimented; they lack privacy, suffer isolation and face high levels of job insecurity.
Ladies and gentlemen, in 1999 I announced my intention to embark upon a process of setting minimum wages and conditions for both farm and domestic workers. Relevant notices were published in the Government Gazette, members of the public were asked to give comment. The Department conducted investigations and the report on those investigations was made public. The Employment Conditions Commission did its own investigation and today it gives me great pleasure to launch this sectoral determination.
Ladies and gentlemen it has taken us 30 months to conduct this investigation. It has been a long time but I am convinced that the time spent was worthwhile and we have emerged with the best possible solution.
The new sectoral determination for domestic workers will become effective on 1st September 2002, incidentally co-inciding with the advent of Spring, which symbolises a new beginning for this sector. This determination will replace the Basic Conditions of Employment Act, 1997 which applied until now.
The key concern of the Department is to balance the improvement of the livelihood of domestic workers with the retention of existing jobs and the creation of new employment opportunities for domestic workers. From the very start of the investigation, seeking a balance between decent employment standards and flexibility to meet employer needs was uppermost in our minds. I am confident that the new determination will achieve just that.
Minimum wages
We have therefore set the wages with the above in mind. The minimum wages we have set are not only affordable but very realistic. Different wages are prescribed depending on where domestic workers live and the number of hours they work. The minimum wages prescribed varies between R428, 22 for employees who work 27 hours and less in a week and R800, 00 per month for employees who work 45 hours in a week. A grace period of almost three months has been granted to allow employers to adjust in respect of wages, while other conditions will come into effect immediately. Employers will only be compelled to pay the new rates as from 1 November 2002.
Conditions of Employment
Most of the conditions of employment that were applicable up to now under the BCEA have been retained. Domestic workers may still work for 45 hours per week, are entitled to 21 day's leave and should be paid double for work on Sundays and Public Holidays. However, to address the specific needs of the sector, domestic workers may work 15 hours over time per week, may do standby duty, will be entitled to 5 days family responsibility leave and must receive a pay slip. A 10% deduction for a room may be made on condition that certain standards are met. My officials will tell you more about all the other provisions in a presentation that will follow shortly.
My vision for the domestic worker sector
We have taken the first steps towards the transformation of this sector. The labour laws are in place, skills training and social security benefits underway. Our society should now come to terms with the need to give domestic workers a fair deal at work. This is the time to give practical expression to our acknowledgement that domestic workers are an important variable in economic and social fabric of our society.
Domestic workers now more than ever need unions to assist them to collectively discuss and find solutions to the issues facing their sector. Domestic workers now need to break the silence and be enabled to move away from the margins of obscurity to the centre stage where they rightfully belong. This, they can easily achieve when they are organised. I appeal to labour organizations to mobilize and organize this vulnerable sector. That is your challenge.
The ANC government is committed to delivery and it's striving to improve people's lives and eradicate poverty.
I invite you all to join hands in making this sectoral determination a success.
I thank you