The Department of Labour (DoL) has promised to intensify the inspections to ensure that companies comply will all labour legislation.
A particular focus will be the inspections of JSE Securities listed companies and ordinary designated employers to achieve 80% compliance with Employment Equity (EE) legislation by March 2012 as well as compliance with all labour legislation in the targeted sectors.
One of the areas of concern that the department will focus on is the industry where employees are exposed to harmful substances like silica dust which causes silicosis that ravages the lungs of those who have come into contact on a sustained basis.
The minister has been at pains to point out that the inspections are not punitive in nature but are supposed to help employers and employees understand and effect legislative requirements accordingly. To this end, the department has also committed itself to education and information sessions conducted by March 2012.
The Director General Nkosinathi Nhleko wishes to point out that in a drive to meet its obligations in terms of the Public Finance Management Act (PFMA) and related legislation the Department has after six years managed to post an unqualified audit opinion on its financial statements.
Through its service offerings at its public entities, the Compensation Fund (CF) and the Unemployment Fund (UIF) the Department plans to embark on a drive to encourage employer’s compliance and other client participation through the use of virtual office.
In addition the UIF and CF need to expand their mandates to respond to unemployment challenges and have agreed to revise Public Investment Corporation (PIC) mandate to be more biased towards employment creation.
The UIF allocated R 1,2 billion to the project assisting companies that are in distress due to the economic downturn. This after UIF placed a R2-billion bond with the Industrial Development Corporation (IDC) for use in funding job creation projects.
As at 31 March 2011 R1 billion had been successfully drawn down by the IDC to support employment activities.
A total of 76 transactions with a value of R1 546 145 935 have been approved, which created 10 047 new permanent UIF paying jobs and saved a further 7186 existing UIF paying jobs.
The approved transactions were fairly spread geographically in South Africa. In August the Fund invested a further R500 million with the IDC and in October the last payment trench was forwarded to the IDC amounting to R500 million. Both payments are part of the IDC-UIF bond which was launched in April 2010, during the height of the economic meltdown, with the objective of stimulating job creation and stemming the tide on job losses.
In another front the Department seeks to work with the Department of Higher Education and Training and other players in ensuring supply of skills required by the Labour Market.
Department of Labour will engage Treasury and SARS in debates on tax incentives for long term unemployed.
The Department’s Public Employment Services (PES) directorate will explore the introduction of employment guarantee schemes, co-operatives and to obtain experiences of other countries such as India, and acquisition of land or resources from other Government Departments.
In another push towards contributing to job creation the Department’s Public Employment Services has to date registered 700 000 job seekers on its systems. The number of job-seekers assessed and profiled were 40%, and 560 000 job-seekers were placed in opportunities or referred to other DoL services of which 60% are youth, 54% are women and 4% are people with disabilities.
The plan is also to increase from 2000 to 3000 companies that register vacancies on Employment System for South Africa (Essa), a job-seekers registration system by the end of March 2013.
On the labour market front, the Labour Policy and Industrial Relations Unit continue to participate in Nedlac negotiations and the aim is to conclude the drafting of all amendments to Labour Relations Act and the Basic Conditions of Employment Act by early December 2011 (12 months after publication of Bills). Three further meeting are scheduled on 11, 17 and 18 November.)
Nedlac negotiations will continue on other themes and Bills.
