DEPARTMENT OF LABOUR

1. DEPARTMENT OF LABOUR QUARTER 1 PERFORMANCE REPORT LABOUR PORTFOLIO COMMITTEE MEETING 18 October 2017

2. TABLE OF CONTENTS • INTRODUCTION • LEGEND • OVERALL ACHIEVEMENTS PER STRATEGIC OBJECTIVES AND • PER BRANCH DURING QUARTER 1OF THE FINANCIAL YEAR 2017-18 • OVERALL PERFROMANCE FOR QUARTER 1 APRIL TO JUNE 2017-18 • CONCLUSION Chief Directorate Communication | 2011.00.00

3. INTRODUCTION INTRODUCTION- The Constitutional Mandate of the DoL- The Policy Mandate of the DoL

4. INTRODUCTION: THE CONSTITUTIONAL MANDATE OF THE DOL • Section 9, to ensure equal access to opportunities. • Section 10, promotion of labour standards and fundamental rights at work. • Section 18, Freedom of association. • Section 23, To ensure sound Labour relations. • Section 24, To ensure an environment that is not harmful to the health and wellbeing of those in the workplace. • Section 27, To provide adequate social security nets to protect vulnerable workers. • Section 28, To ensure that children are protected from exploitative labour practices and not required or permitted to perform work or services that are inappropriate for a person of that child’s age or their well‐being, education, physical or mental health or spiritual, moral or social development is placed at risk. • Section 34, Access to courts and access to fair and speedy labour justice.

5. INTRODUCTION: THE POLICY MANDATE OF THE DOL • Improved economic efficiency and productivity. • Creation of decent employment. • Promoting labour standards and fundamental rights at work. • Providing adequate social safety nets to protect vulnerable workers • Sound labour relations. • Eliminating inequality and discrimination in the workplace. • Enhancing occupational health and safety awareness and compliance in the workplace. • Give value to social dialogue in the formulation of sound and responsive legislation and policies to attain labour market flexibility for competitiveness of enterprises which is balanced with the promotion of decent employment

6. LEGEND Implication: ACHIEVED Performance Indicator is on track or reflects complete implementation. Target achieved 100% + Complete Implication: NOT ACHIEVED Performance Indicator behind schedule. Target not achieved 0% - 99% Complete

7. OVERALL PERFORMANCE • OVERALL ACHIEVEMENTS PER STRATEGIC OBJECTIVE AND PER BRANCH DURING QUARTER 1OF APRIL TO JUNE 2017-18

8. QUARTER 1 PERFORMANCE PER STRATEGIC OBJECTIVE 2017/18 *** There was no target for” ** Strengthening multilateral and bilateral relation is not reporting for Q1

9. QUARTER 1 PERFORMANCE PER PROGRAMME 2017/18

10. QUARTER 1PUBLIC EMPLOYMENT SERVICES (PES) & INSPECTIONS AND ENFORCEMENT SERVICES (IES) PERFORMANCE PER PROVINCE Indicator 1.4: “Percentage of reported incidents investigated and/or finalised within prescribed time frame” NC had no incidents reported.

11. QUARTER 1: 2017-18 PERFORMANCE INFORMATION MAJOR PERFORMANCE CHALLENGES ENCOUNTERED DURING QUARTER 1 OF THE FINANCIAL YEAR 2017-18 APRIL 2017 – JUNE 2017

12. PROGRAMME 1 ADMINISTRATION

13. PROGRAMME 1: ADMINISTRATION

14. ADMINISTRATION

15. PROGRAMME 2 INSPECTION AND ENFORCEMENT SERVICES

16. INSPECTION AND ENFORCEMENT SERVICES (IES)

17. INSPECTION AND ENFORCEMENT SERVICES (IES)

18. INSPECTION AND ENFORCEMENT SERVICES (IES)

19. INSPECTION AND ENFORCEMENT SERVICES (IES)

20. PROVINCIAL PERFORMANCE ON IES INDICATORS: Q1 TARGETS

21. PROVINCIAL PERFORMANCE ON IES INDICATORS: Q1 TARGETS 21

22. PROVINCIAL PERFORMANCE ON IES INDICATORS

23. PROVINCIAL PERFORMANCE ON IES INDICATORS

24. PROVINCIAL PERFORMANCE ON IES INDICATORS

25. PROGRAMME 2 INSPECTION AND ENFORCEMENT SERVICES IMPACT ANALYSIS

26. IES - EMPLOYMENT EQUITY Not Achieved • 224 (62%) employers were subjected to DG reviewsagainst a quarter 1 target of 362 with a negative variance of -138. In the last financial year as reflected below, performance amounted to 67% with the split percentage of 25% and this percentage was dropped to 20% for the current financial year. All employers reviewed were found to be non compliant and were issued with recommendations. In the last financial year only WC achieved the target and this year its only EC, FS & WC that have achieved the target.

27. EMPLOYMENT EQUITY INSPECTIONS Not Achieved The target for 2017/18 Q1 was 1118 and 868 employers inspected which constitutes 78% , 594 complied and 274 non compliant were dealt with by issuing notices. 56 of the non compliant employers were referred to court for prosecution. The remainder of the notices issued are still within the timeframes. In the last financial year in Q1 75% was also achieved. There is no improvement in GP, NC & NW as underperformance was also noted in the last financial year.

28. PROTECTION OF VULNERABLE WORKERS Not Achieved The target for Q1 was 33 868 and 33 480 workplaces were inspected which constitutes 99% of which 87% of those inspected complied at the initial inspection stage . 372 out of 4197 non compliant employers were referred for prosecution. In the last financial year the Branch was also sitting at 99%. There is no improvement in KZN, LP, MP & WC from the last financial year. GP has shown a significant decline.

29. EMPLOYER AUDITS Achieved The combined target for procedural and payroll audits for Q1 was 3569 and 3788 workplaces were inspected which constitutes 100%. 2170 of the inspected were found to be compliant towards the Fund and 1618 non compliant employers, only 18 were prosecuted.

30. INSPECTION FOR WORK PERMITS Achieved • Of the 27 requests received, 93%(25) inspections were conducted within 25 calendar days. 6 Employers were non-compliant and were dealt with in accordance to the relevant legislation.

31. OCCUPATIONAL HEALTH AND SAFETY

32. REPORTED INCIDENTS INVESTIGATED AND FINALISED

33. IES - EMPLOYMENT EQUITY The target for Q1 for Employment Equity Director General Review was 362 of which the actual reviewed was 224 with a variance of -138. Only EC, FS, WC and HO were able to achieve the target as per graph below.

34. IES - EMPLOYMENT EQUITY: PER SECTOR • Of the 224 reviewed designated employers, the Manufacturing Sector was most reviewed with 52 reviews followed by the Agricultural Sector with 44 reviews. The Sector with the least reviews is Electricity, Gas & Water with only 1 review in Q1. Of all the employers reviewed all were found non-compliant. Major non-compliance are in the following sections of the EEA: S16: Consultation, S17: Matters for Consultation, S19: EE Analysis, S20(2): EE Plan and S24: Assignment of Responsibility. Of the 224 non-compliant designated employers only 204 were served with DG Recommendations. The outstanding 20 failed to comply with the request were coming from the Mpumalanga province.

35. Enforcement • In terms of the DG Review, employers are given 60 days to comply with the DG Recommendations therefore in Q1 no cases have been referred to court. Cases that have been referred in Q1 are derived from Q4 2016/17. • In Q1 Statutory Services Branch received a total of 302 BCEA cases from Employment Standards that are recommended for prosecution. Of the 302 cases received, 254 cases have already been referred to the Labour Court for prosecution. All these cases are awaiting trial dates. • Statutory Services received 18 OHS cases to prosecute in Q1 and 14 have been referred to the NPA for prosecution. • In Q1 there were 30 UI cases received by Statutory services and only one of those has been referred to Court for prosecution, reason being that rest were received in the last two weeks of June 2017.

36. PROGRAMME 3 PUBLIC EMPLOYMENT SERVICES

37. Context within which PES operates PES STAFF CAPACITY

38. 3 856 200 Population: Major economic hub: 18 178 sq km Land area: 125 754 sq km; Pop. 5 778 400; 1 390 km; 104 882 land area sq Population 14 278 700; employed 5 050 unemployment rate (365 000 000 employed and 364 000 unemployed (20.8 % 27.2 % 000, unemployed 2 151 000 and 29.9% unemployment rate) by JULY 2017. GDPR 0.8% Contribution to SA GDP 7.2% unemployed); and 978 000 unemployment rate by JULY 2017. ) employed by JULY 2017. GDPR -3.8% contribution to SA GDP 6.5% GDPR 2.1%, contribution to SA GDP 34.1% Smallest GDP growth & economic contribution with 1 214,000 people, 372 889 sq km, 30.5 % unemployment rate (128 000 unemployed) and 292 000 employed by JULY 2017. GDPR 2.8 % contrib. to SA GDP 2.1% Population: 4 444 200; land area 76 495 sq km; 32.3% unemployment rate (557 000 unemployed); and 1 212 000 employed by JULY 2017. GDPR 2.7% Contribution to SA GDP 7.5% 2 866 700 land Population: sq km area 129 825 34.4 % unemployment rate(407 000 unemployed); and 777 000 employed by JULY 2017. GDPR 1.7% contribution to SA GDP 5.1% 700 Population: 6 498, 168 966 land area sq km; largest 34.4 % unemployment rate nd 2 - SA economy with 94 361 rd 3 largest - SA economy with 6 510 300 people 743 000 unemployed); sq km, 11 074 800 people, 2 583 000 living in 129 462 sq km, 2 403 000 employed, 000 1 416 and employed by employed and 24.0% unemployment rate (814 20.7 % unemployment rate (628 000 unemployed) JULY 2017. GDPR 0.9% Contribution to SA GDP 7.8% by JULY 2017. GDPR 1.9% contribution to SA GDP 13.6% 000 unemployed) by JULY 2017. GDPR 2.1% Contribution to SA GDP 16.0%

39. PUBLIC EMPLOYMENT SERVICES

40. PUBLIC EMPLOYMENT SERVICES

41. PUBLIC EMPLOYMENT SERVICES

42. PUBLIC EMPLOYMENT SERVICES “ 42

43. WORK SEEKERS REGISTERED BY AGE GROUPS 55% (128 432) of registered work seekers are young people aged 16-35 years The remaining 45% ( 102 705) is adults aged 36 years and above The figures reflects the reality of the SA labour market that is characterised by high youth unemployment rate. In April 2017, 39% of young people aged 15-34 years were unemployed, according to Stats SA. Data source: ESSA work seeker profiles

44. WORK SEEKERS REGISTERED BY AGE GROUPS AND PROVINCE • Gauteng, KwaZulu Natal and Eastern Cape have the most registered work seekers, 118 986 together i.e 52% share of total work seekers registered • Northern Cape, Free State and Mpumalanga province have the least work seekers registered, 7 075, 14 713 and 15 847, respectively. Note. Province in the work seeker profiles shows the residential province of the work seeker, not the province where she/he registered. Data source: ESSA work seeker profiles

45. WORK SEEKERS REGISTERED BY GENDER AND PROVINCE Gender split shows that 52% of work seekers registered are males as compared to 46% females. Note. Province in the work seeker profiles shows the residential province of the work seeker, not the province where she/he registered. Data source: ESSA work seeker profiles

46. WORK SEEKERS REGISTERED BY DISABILITY 0.6% (1 266) of work seekers registered on ESSA have different forms of disability. 562 blind 354 physically disabled 167 chronic condition, e.t.c

47. WORK SEEKERS REGISTERED BY DISABILITY AND PROVINCE

48. WORK SEEKERS REGISTERED BY EQUITY GROUP 61% (142 798)of work seekers registered are Africans, 8% (18 864) are Coloureds 3% (5 770) Whites and only 1% (1 752) Indians. The remaining 27% (61 953) were not specified according to equity group.

49. WORK SEEKERS REGISTERED BY EQUITY GROUP AND PROVINCE

50. WORK SEEKERS REGISTERED BY NQF LEVEL Findings • A total of 12 137 (5%) registered work seekers have qualifications equivalent to NQF level 4 (Matric) and above • Matric 2 956 • N. Diploma 6 668 • B. Degree 2 066 • H. Degree 355 • M. Degree 92 • 218 175 (94%) work seekers do no have any qualification equivalence of at least NQF level 1 or information was not adequately captured or provided. • The latest figures by Statistics SA also reveals similar figures of unemployed population, 7% of unemployed population have attained tertiary qualifications. Challenges and interventions • Urgent need for programmers to assist with critical updates and changes to the system. System Change requests have been delayed for more than a year due to there being no programmers. • Data cleansing to be prioritised given that work seekers status do change and the database needs to be kept up to date. • Too few pathways to absorb large volumes of registered work seekers.