Labour on Sheltered Employment Factories

The future of Sheltered Employment Factories hangs in the
balance

24 October 2006

The future of Sheltered Employment Factories (SEF) is to be determined when
the Department of Labour meets with National Treasury on 13 November,
Parliament was told today, 24 October 2006.

Addressing the Portfolio Committee on Labour, Director-General Vanguard
Mkosana said the meeting was aimed at deciding whether the SEFs should be
turned into a trading entity under the Public Finance Management Act
(PFMA).

Established in 1953, the SEFs are government's factories employing disabled
people as part of not only providing jobs and training to them, but also for
them to contribute to the country's economy.

The factories are currently employing about 1 100 people in seven provinces
around the country, while plans are afoot to expand them to Mpumalanga and
Limpopo as well.

Dr Mkosana pointed out that the SEFs were under current circumstances,
neither section 21 companies nor falling under the new legislation.

His comments elicited numerous suggestions from committee members including
converting the SEFs into factories providing jobs for ex-combatants in the
provinces, to transferring them under the Department of Social Development.

Meanwhile, investigations into corruption charges faced by two SEF employees
of the Department of Labour in the Free State have reached an advanced stage.
Dr Mkosana told the committee that a forensic report was expected within two to
three weeks.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168

Issued by: Department of Labour
24 October 2006

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