Speech by the Deputy Minister of Labour Nkosi Patekile Holomisa (Ah! Diliintaba) MP on the occasion of the 2017/18 Budget Vote 28 debate tabled in the National Assembly in Cape Town
Honourable Chairperson,
Honourable Minister of Labour,
Honourable Ministers and Deputy Ministers,
Honourable Members,
Director General,
Senior Officials of the Department,
Our Social Partners, Business, Labour and Civil Society,
Esteemed guests,
Fellow South Africans,
Ladies and gentlemen,
Good afternoon!
I am once again honoured to be standing before you today to present our Budget Vote 28 to this august house during the month of May, the Workers Month.
If you have never been marginalized, never been poor, never been denied access to quality education, never been discriminated against, never been unemployed and never worked as a labourer, you will never fully grasp the plight and the pain of those who have been exposed to such circumstances.
The government of the people, through the African National Congress (ANC), understands the plight of the poor and the vulnerable workers of our country and is best placed to deal with their challenges. This is precisely because the ANC has walked the journey with them, has weathered the storms, and has come out on the other side. We are, therefore, able to see the old and new South Africa through their eyes.
Our transition from the old to the new South Africa is a powerful narrative of our country. The Department of Labour is at the apex of that process as it is central in the writing of a new chapter in the South African labour market environment.
In writing the new chapter and in celebrating our achievements, we do recognize that much more still needs to be done. However, it is also important to highlight that we have so transformed the labour relations landscape that, as the Minister has already indicated, we enjoy international recognition as trailblazers in that regard. Through various pieces of legislation we have restored the dignity of our people
Honourable Members, we would be naïve, however, as this august House to think that we can completely erase the impact of the monstrous apartheid and slavery policies in just 23 years of democracy.
One of my responsibilities in the Department is to play an oversight role in the smooth implementation of the Department’s strategic and operational objectives to ensure effective and efficient delivery of our services to the public. It is, therefore, with pride that I present to this august House the Department’s achievements especially in the last financial year.
Mhlali ngaphambili namalungu abekekileyo, mandigawule ndiwaruqa, ndingene emxholweni wokuba sisebenze njani kulonyaka-mali siphuma kuwo.
Ladies and Gentlemen, I am particularly pleased to share with you our achievements as per the commitments we made last year. Firstly, over the last financial year, the Department improved its overall performance to just around 77% (Seventy Seven percent).
During the 2016/17 financial year the Department was allocated R2.8 Billion and spent R2.7 Billion. Therefore, in percentage terms the Department spent 97% of its allocated budget.
Honourable Chairperson and Members, the R2.8 billion allocated budget was distributed amongst the 4 Programmes and spent as follows:
Administration spent 96.7% of its allocation, achieving an overall performance of 60%. Inspection and Enforcement Services spent 92,8% of its allocation, achieving an overall performance of 87%. Public Employment Services spent 99,8% of its allocation, achieving overall performance of 75%. Labour Policy and Industrial Relations spent 98,3% of its allocation, achieving overall performance of 71%.
The Unemployment Insurance Fund achieved an overall performance of 69%. The Minister indicated earlier that the Compensation Fund has been discharged from the Intensive Care Unit (“ICU”) and this is indicated by the Fund’s progressive performance improvement, which is highlighted by an overall achievement of 50% for the 2016/17 financial year. Mphathiswa, the members who made it their business to know this Fund will very well agree that this is indeed a significant improvement, even if a lot still needs to be done.
Honourable Chairperson, as a Governing Party, as a Department, we recognize our role of regulating the labour market, to ensure stability and a vibrant economy that yields tangible benefits, including job creation. The progress and commitments that have been presented by the Minister today, are testimony to the fact that we are a caring Government of the People; a government that seeks to improve the socio economic conditions of our people, be it in urban settings, townships, farm dwellings or far flung rural areas.
Honourable Chairperson, last year I reported that I had witnessed with my own eyes the difficulties that labour centres experienced in meeting public expectations as a result of inadequate human resources, especially at the front line offices and in our Inspectorate and Enforcement Services.
Honourable Minister, Sokwalisa, I am happy to report that the Department has since set in motion innovative ways and service delivery initiatives. The installation of self-service machines, better known as Kiosks, in our service points is in full swing. This ensures that our clients do not have to stand in long queues for hours on end in the blistering sun or inclement weather conditions.
The initiative has been piloted in all 9 Provinces and our objective is for every service delivery point to have a fully functioning Kiosk by 31 March 2018. The Kiosk initiative has been well received by members of the public and is starting to yield positive results. Those who wish to test the Kiosks are encouraged to visit our exhibition stand and the Cape Town labour centre.
Honourable Members, the Inspection and Enforcement Services (IES) branch is receiving attention.
Honourable Chairperson, while we continue to capacitate the Inspectorate with the limited financial resources at our disposal, we have found innovative ways of dealing with the challenge as we do our work. Amongst others, we embarked on focused training programmes which seek to assist the Labour Inspectors in fast tracking their processes thereby improving results.
The action taken by the Department in its attempt to strengthen the Inspectorate produced positive results for the 2016/17 financial year. The performance of the unit improved progressively from a dismal percentage of 43% in 2014/15, to 67% in 2015/16 and in 2016/17 is standing at a whooping 87%.
Honourable Members, you will recall that last year the Minister undertook to deal aggressively with the designated employers found to be flouting the provisions of the Employment Equity Act. The Department referred to the Labour Court 192 employers who were non-compliant with the provisions of the Act. Interestingly, 19 companies opted for out of court settlements amounting to admission of guilt fines of R1.96 Million. 90 employers, who resist change, believing they have a fighting chance (“Amadelangozi ke lawo”) decided to oppose our court applications. The total value of the 90 cases amounts to R135 million.
Siphinde, Mphathiswa, sibeneqela labaqeshi abangamashumi asixhenxe anesithoba abakhethe ukufihla iintloko and decided not to settle or oppose our applications. (Ngamagwala ke lawo anjonge umoya uba ubhekisa ngaphi na) with the total value of R118.5 million in penalties.
The overall value of the work done by the Inspectorate just in the area of Employment Equity alone is R255.45 million against the expenditure of R18.5 Million for only 19 Employment Equity Labour Inspectors. This is an exceptional achievement!
Ladies and Gentlemen, the protection of vulnerable workers and promotion of decent work require the Department to have an adequate number of Labour Inspectors, who will ensure that the labour laws are upheld and complied with by all employers.
Honourable Chairperson and Members, the Administration programme has shown a significant improvement during the 2016/17 financial year. There are pockets of excellence within the programme, with the Finance Management Unit continuing to make us proud. Once again the Department received an unqualified audit opinion in the 2015/16 financial year for the fifth consecutive year.
We remain confident that the Auditor General’s audit report for the 2016/17 financial year will reveal even more positive results.
It is also important to note further that the changes instituted by the Department in financial management and oversight, have had the desired effect, with the Department having managed to process 17 593 invoices out of 17 666 received, a 99% achievement.
A vacancy rate is a moving target and we have done everything to ensure that we keep up with the government set vacancy rate of 9.9%. I am, therefore, proud to state that the Department’s vacancy rate is sitting at 9.6%. The Department filled all its vacant positions of senior management at National and Provincial level, with the exception of the Western Cape.
Honourable Chairperson and Members, the Department, through the Public Employment Services, continues to serve as the intermediary in the labour market between demand and supply of labour.
The Department uses an electronic employment registration system, know as ESSA, which enables work seekers to register their qualifications, skills and work experience and employers to register work and learning opportunities.
During the 2016/17 financial year the Department provided 197 247 registered work seekers with employment counselling and managed to place 12 517 registered work seekers in available job opportunities.
It is also important to note further that the Department, through the Public Employment Services programme, supports disability organizations to promote the employment of persons with disabilities. During the 2016/17 financial year, the Department transferred to disability organizations an amount of R11.3 million in the form of support subsidies.
The Supported Employment Enterprises (SEE), ebisawukwaziwa njenge-Sheltered Employment Factories (SEF), continue to sharpen the skills and to create an employment platform for persons with disabilities. The innovation and creativity of the staff are amazing. The entity participated in the Rand Easter Show and was given the “Best Exhibition Stand Award”. Some of their products may be viewed at our Parliament offices.
Honourable Chairperson and Members, it is also important to briefly reflect on the important work of Productivity South Africa. We all know that the mandate of the entity is to promote employment growth and workplace productivity. I am pleased to announce that the Department, through the Unemployment Insurance Fund, transferred an amount of R24.4 million, to assist in the implementation of the Turnaround Solution Programme. This programme assisted 49 companies and saved 4 760 jobs in the 2016/17 financial year.
On the other hand the Workplace Challenge Programme that seeks to improve the productivity and competitiveness of South African enterprises has a total of 776 companies, employing 49 138 employees, participating in the programme.
Urhulumente woMbutho weSizwe akasaqhubi nje kuphela ngoku, koko ubhabh'emafini!
Honourable Chairperson and Members, we acknowledge that Labour Policy and Industrial Relations is our business and our contribution in the National Minimum Wage speaks for itself. The introduction of the National Minimum Wage fulfills an important undertaking of the ANC to the work force of our country. We do not doubt that the National Minimum Wage will contribute to radical socio-economic transformation. We further believe that the positive gains of improved earnings and reduced poverty will by far outweigh the negatives.
Honourable Chairperson, the National Economic Development and Labour Council (“NEDLAC”) continues to play a pivotal role in transforming our labour policy frame-work. We, therefore, acknowledge that the Department would not have achieved the milestones it achieved in the labour policy development space without the commitment and support we get from NEDLAC. We extend our gratitude to everyone at NEDLAC for their contribution.
Honourable Chairperson, this leaves me with one other strategic entity of the Department, the Commission for Conciliation Mediation and Arbitration (“the CCMA”). It cannot be disputed by any of the members of this Honourable House that the CCMA continues to make us proud with its excellent work and outstanding performance.
Mhlali ngaphambili obekekileyo, ndivumele ndidlulise umbulelo ongazenzisiyo kuMphathiswa weli Sebe ngenkxaso, amacebiso nangentsebenziswano engummangaliso endiyifumanayo kuye njengeSekela lakhe. KwiKomiti ejongene nezabasebenzi ekhokelwa nguMamZangwa sithi, "Ngxatsho ke, tshotsho nibekho".
Okokugqibela ndithanda ukubulela uMlawuli-Jikelele kunye nawo onke amagosa nabasebenzi beSebe ngenkxaso nangendlela abawuthathela phezulu ngayo umsebenzi wabo. Ndibamba ngazibini nangenkxaso endiyifumana kusapho lwakuthi, lukhokelwe nguMamTipha, Ah! Nosimanye.
UMphathiswa sele ewenzile umkhomba ndlela, ngoko ke ikhwelo lityala. Masingen'entsimini!
Maz'enethole!
