Hansard: OAC: Debate on Vote 18: Labour
House: National Assembly
Date of Meeting: 15 Jul 2014
Summary
No summary available.
Minutes
TUESDAY, 15 JULY 2014
PROCEEDINGS OF EXTENDED PUBLIC COMMITTEE – OLD ASSEMBLY CHAMBER
____________________________
Members of the Extended Public Committee met in the Old Assembly Chamber at 16:36.
House Chairperson Ms M G Boroto, as Chairperson, took the Chair and requested members to observe a moment of silence for prayer or meditation.
FIRST ORDER: The MINISTER OF LABOUR
START OF DAY
DESKS RESERVED AS SPEAKING PODIUMS
The[nm1] HOUSE CHAIRPERSON (Ms M G Boroto): Order! Hon members, there are two desks here - this one and that one. You will be speaking from them. That desk is too far away, and people would like to see the executive when they speak. That was a request. So, we have reserved these two desks. Let us agree that nobody is going to speak from where he or she is seated. Please come to one of these two podiums here; for today they are podiums. Pardon my voice. As we do not have a clock, I will tell you when you have one minute left and when your time has expired. I now ask the Secretary to read the Order of the Day.
APPROPRIATION BILL
Debate on Vote No 18 – Labour:
The[nm2] MINISTER OF LABOUR: Chairperson, Ministers and Deputy Ministers present, leaders of our social partners, hon members, distinguished guests, fellow South Africans, it is indeed an honour for me to address you this afternoon as we present the Budget Vote to the Fifth Parliament of the Republic of South Africa. I am grateful to President Jacob Zuma for giving me yet another opportunity to continue with the implementation of the many initiatives that we started in the previous administration. I am also very pleased and thankful about the appointment of the Deputy Minister in the Department of Labour. An extra pair of hands will indeed come in handy as we grapple with the unfinished business of the department. This will, no doubt, go a long way in accelerating service delivery. Hon Nkosi Patekile Holomisa, it is good to have you on board, sir.
Let me also extend our deepest condolences on the sad passing away of many of our distinguished citizens during this period, including, but not limited to, the Secretary to Parliament; Mama Epainette Mbeki; the former NCOP Chief Whip, Nosipho Ntwanambi; Nadine Gordimer, Nobel laureate, who passed away on Sunday; and many others who have passed on recently. Your invaluable contribution to the struggle for freedom and democracy will never be forgotten. May your souls rest in peace.
Our democracy is alive and well, judging from the recent outcomes of the general elections. Our Constitution remains among the best in the world, and defending it is what we should all do even-handedly though.
The transition from apartheid to democracy has not been easy. Translating the values and the letter of our Constitution into tangible outcomes continues to be a source of inspiration and the point of departure for everything we do. Progress is evident, but there is still a long way to go.
The President made a call in the recent state of the nation address, and I quote:
As we enter the second phase of our transition from apartheid to a national democratic society, we have to embark on radical socioeconomic transformation to push back the triple challenges of poverty, inequality and unemployment. Change will not come about without some far-reaching interventions.
As the Department of Labour, we concur, and there is no room for complacency. It is therefore remarkable that this democracy has lasted this long and signs are there for all to see that it will be here for many decades to come. Many of those who left the country have also come back as their fears turned out to be unfounded.
The preamble to our Constitution states, and I quote
We, the people of South Africa,
Recognise the injustices of our past;
Honour those who suffered for justice and freedom in our land;
Respect those who have worked to build and develop our country; and
Believe that South Africa belongs to all who live in it, united in our diversity.
I believe that our Constitution and the resilience of this beautiful nation are the reasons why the world often refers to the democratic South Africa as a miracle. Indeed, it fits that characterisation on all counts. The people of this country have proven beyond reasonable doubt that they love their country, and protecting its values is what they will do. Thank you, fellow South Africans, for your patriotism and for your continued commitment to protecting the hard-fought gains of the many years of the struggle for freedom. Your resolve to defend the revolutionary gains cannot be questioned as you proved beyond doubt on 7 May 2014 when you re-elected the ANC as the ruling party.
The brief synopsis of the labour market world of work indicates that the new administration has hit the road running, and South Africa, a country under construction, is truly open for business. South Africa's labour market has undergone transformation since 1994 with an emphasis placed on strategies to eliminate the inequalities of the past and improve the working conditions for all South Africans.
The introduction of new labour legislation as far back as 1995 has had a profound impact on the South African labour market, notably in terms of the Labour Relations Act, the Basic Conditions of Employment Act, the Employment Equity Act and the Skills Development Act. You will recall that one of the instruments used by the apartheid government was the repressive labour laws and cheap labour. The introduction of new sets of labour laws was first of all a constitutional requirement and, secondly, a duty to redress these undesirable elements of the old dispensation.
These legislative interventions have had mixed levels of success, but there are still many challenges ahead. The South African labour market institutional framework remains sound and, for those who have short memories, the labour laws of this country are heralded as amongst the best in the world. What we must all accept is that the labour market environment is dynamic and a highly contested policy terrain the world over. It is more so in South Africa, given our terrible apartheid past and how repressive labour market policy instruments were used. The adversarialism that creeps in from time to time must be understood in that broader context. The continued inequalities in the workplace, poverty among the employed and the ever-increasing wage gap are not helping the cause whatsoever. Therefore, the need to tackle the wage gap between top executives and ordinary workers has become urgent, and failure to do so carries the biggest risk to the workings of our labour market institutional framework.
Whilst the Department of Labour is about, first and foremost, the protection of workers in general and vulnerable workers in particular, it will be important to find the delicate balance between protection and not stifling development. This is particularly important in light of government placing the economy at the centre of its programme in the next five years.
Going forward, we will be guided by the ruling party's manifesto, the National Development Plan, the Industrial Policy Action Plan and the New Growth Path, among other instruments.
The hon President Zuma, in his state of the nation address on 17 June 2014, stated, and I quote:
It remains our strong belief that the most effective weapon in the campaign against poverty is the creation of decent work, and that creating work requires faster economic growth. Given the impact of the untenable labour relations environment on the economy, it is critical for social partners to meet and deliberate on the violent nature and duration of the strikes.
This is another clear indication of the government's resolve to fast-track transformation in the workplace and the need to address the new challenges that have emerged.
The growth in the population has a direct link to employment patterns and labour absorption. Let me give a high-level account of some of the key achievements of the Department of Labour to date and some indicative activities going forward. Financial management has improved remarkably in the past three years. For example, the appropriation for the department in the 2013-14 financial year amounted to R2,4 billion and expenditure stood at R2,371 billion. For the past three years the department has received favourable unqualified audit reports from the office of the Auditor-General. The department is again expecting an unqualified audit opinion for 2013-14.
The department has made some progress on the ICT front, and the State Information Technology Agency will soon be appointing an information technology, IT, service provider on behalf of the department. As part of our contribution to Outcome 5 on decent employment through inclusive growth and our strategic goal of protecting vulnerable workers, the inspection and enforcement services have, during the 2013 financial year, visited and inspected 164 868 workplaces. Of these workplaces, 75% were found to be compliant, whereas 25% or 41 217 were not. Eighty-two percent of the noncompliant workplaces were dealt with through the issuing of notices or referrals to court. Whilst this represents an improvement on previous years, there is still room for improvement.
South Africa continues to participate in various strategic international platforms primarily to influence and shape the debates and outcomes on issues that may have an impact, not only on South Africa, but also on the African continent at large. The fora in which the Department of Labour participates actively include the International Labour Organisation, the G20, the Southern African Development Community or SADC, the African Regional Labour Administration Centre or Arlac, and in some of the activities of the Brics group, that is Brazil, Russia, India, China and South Africa group.
I am pleased to report that the Deputy Minister has, in a very short space of time in his new portfolio, already played an important role on the international front. We are very pleased with the support and the swiftness with which all ILO conventions, tabled for consideration and ratification, are dealt with and we hope that the Fifth Parliament will continue to support this important work. It is worth celebrating the fact that South Africa, to date, has ratified 23 critical ILO conventions, of which 20 are active.
In June 2013, the Fourth Parliament ratified timeously the following important conventions: the Maritime Labour Convention of 2006, the Work in Fishing Convention of 2007, the Labour Inspection Convention, and Domestic Workers' Convention of 2011. To strengthen inspection and enforcement and to fall in line with international best practice, the Labour Inspection Convention No 81 provides useful guidance for designing and monitoring a labour inspection system.
In the coming years, the department will be working within the framework of the convention to improve the functioning of the inspectorate and to monitor compliance with our labour legislation. The chief inspector has already engaged with social partners on the activities of the inspectorate and will continue to do so within the framework of the convention.
During 2013, the department commenced a process of professionalising the inspectorate so that it can improve our enforcement capabilities, and also respond to the needs of the different sectors for which the department is responsible. I am pleased to announce that we have completed the first phase of this process and the department will be commencing with the second phase. A detailed plan will be presented to the Portfolio Committee on Labour.
The ANC manifesto calls for an improvement in the enforcement of our labour laws. Strengthening the enforcement capabilities will assist in achieving the objectives of protecting vulnerable workers. Strengthening social protection is, therefore, part of government's key priorities going forward.
Not so long ago the country watched in horror the collapse of the Coega bridge in Port Elizabeth, killing two people and injuring 13. More recently, a mall under construction in Tongaat collapsed, causing two fatalities and seriously injuring a further 29 workers. As was the case in the Coega incident, the department conducted an inquiry into the collapse of the Tongaat mall.
In the Coega incident, the construction company pleaded guilty and paid a R100 000 admission-of-guilt fine, the maximum penalty provided for in the Occupational Health and Safety Act of 1993. The inspection and enforcement services branch started an investigation into the collapse of the Tongaat mall. Given the seriousness of the matter, the department escalated the investigation into a formal inquiry in order to thoroughly identify the cause of the collapse, prevent a reoccurrence of this type of incident, and institute criminal proceedings against any party that may have transgressed the provisions of the Occupational Health and Safety Act and construction regulations.
In the past financial year the department has worked together with social partners in the construction industry to stem the tide of incidents. The collaboration with stakeholders, under the guidance of the Advisory Council on Occupational Health and Safety, resulted in the promulgation of the new regulations. A new provision in Construction Regulation 2014 is the registration of construction health and safety practitioners. This is our first step towards the regulation of the occupational health and safety profession. This, in our view, will go a long way in contributing towards a reduction in incidents in the construction industry.
The Employment Services Bill was passed by the National Assembly in 2013 and was accented to and gazetted in April 2014. This is important in that it provides for a legislative basis for the department to champion the placement of workseekers in job opportunities. The Deputy Minister will elaborate further on this.
Unemployment insurance, as a social security mechanism, is an important pillar of the antipoverty strategy aimed at ensuring a better life and it is the key component of the decent work agenda of government. The Unemployment Insurance Fund, the UIF, has continued to fund poverty alleviation schemes and, in the past financial year nine training initiatives were launched and R300 million was committed for the training of unemployed UIF beneficiaries in various skills programmes, including artisans, information technology and technology skills.
The UIF and the Industrial Development Corporation, IDC, partnership continues to contribute to the mandate of job creation. Since the inception of this partnership in 2009, jobs have been saved and new jobs created across all nine provinces of the Republic of South Africa. The UIF's allocation of investment portfolio invested in social responsible investment is 10% of the total investment portfolio which, as at the end of May 2014, was R9,7 billion. These funds are available for investment in initiatives which have large job creation capacities.
In the 2014 financial year, we will create the second UIF social responsible investment fund to the value of R2,7 billion to amplify the work we are doing to contribute to job creation. In addition to its social responsible investment strategy, the UIF will continue its funding of Productivity South Africa's Turnaround Solutions. The UIF will allocate R58 million towards Turnaround Solutions during this financial year. Over the 2014 Medium-Term Expenditure Framework period, the UIF has budgeted R1,9 billion for the implementation of training lay-off schemes, for the training of unemployed beneficiaries and for the funding of a turnaround strategy.
The payment of unemployment insurance and related benefits has increased during the 2013-14 financial year. The UIF paid claims to 762 654 beneficiaries. Over the 2014 MTEF period, the UIF has budgeted R11 billion for 2015, R12,5 billion by the end of 2016, and R13,4 billion in 2017 in anticipation of the approval and implementation of the Unemployment Insurance Amendment Bill.
Together let us move South Africa forward. South Africa, like most countries, has experienced a rise in unemployment created by the financial and economic crisis which, in turn, has caused hardship for many workers, families and communities and worsened poverty.
The active labour market policies's aim is to influence the employment prospects of the unemployed by encouraging or mandating participation in specific programmes. The primary aim is to get the unemployed back to work by improving the functioning of the labour market in various ways, and this includes programmes such as public employment services, labour market training and subsidised employment.
Through the Unemployment Insurance Fund we have established a labour activation programme as one of the active labour market interventions. The programme seeks to engage and promote activities that preserve and create jobs. The labour activation programme is underpinned by existing national government interventions, and therefore does not seek to reinvent the wheel. It derives its approach from the National Development Plan, the New Growth Path and the National Skills Accord.
The national training partnership programme is making progress in various sectors. There are thousands of learners who are currently participating in the programme. The programme aims to cover at least 8 000 participants. Hon Chair, I will give this report to the portfolio committee in detail so that the portfolio committee can do oversight on what we are doing. Hosting the Jobs Summit, as a platform that brings together public- and private-sector employers and the unemployed, proved to be one of the most effective ways of identifying employment and training opportunities.
During the past year considerable strides were made to reduce the service delivery challenges in the Compensation Fund. Let me highlight the strategic priorities for 2014. For the 2014 financial year, an appropriation of R2,57 billion has been awarded to the department. The increase of R82 million has been adjusted appropriately. Therefore, I recommend this House support our budget. Thank you very much. [Time expired.] [Applause.]
NS/END OF TAKE[nm3]
Ms L E YENGENI[ns4]
The MINISTER OF LABOUR
The[nm5] HOUSE CHAIRPERSON (Ms M G Boroto): Hon members on my left - the hon Yengeni. I know you can confer, but you are very loud here. Please let's respect this House.
Ms[nm6] L E YENGENI: Hon Chairperson, hon Minister, hon Deputy Minister, social partners, business, community and labour, distinguished guests in the gallery, as a member of the ANC in Parliament and of this Portfolio Committee on Labour in particular, I would be failing both my organisation and the 62 million people who voted for the ANC ... [Interjections.] ... in the last elections ... [Interjections.]
The[nm7] HOUSE CHAIRPERSON (Ms M G Boroto): Order, hon members! Order!
Ms[nm8] L E YENGENI: ... I would be failing both my organisation and the 62 million people who voted for the ANC in the last elections if I did not join my leaders to thank you all for your votes that made it possible for the ANC to continue to be not only the trusted party by the majority of voters, but also the ruling party. Your votes are valuable and they are also approval of ANC policies. In addition, your votes are a practical demonstration that there is no alternative party to rule this country. [Interjections.]
We are not perfect. Eradicating ...
The HOUSE CHAIRPERSON (Ms M G Boroto): Order!
Mrs L E YENGENI: Eradicating the racist evil legacy of apartheid could not be done in two decades. However, the ANC-led government has achieved a number of victories. For instance, today we are debating Budget Vote 18. This is a budget for the people by the people who are democratically elected to represent the interests of those who are not in Parliament. That, on its own, is a good story to tell. These are the benefits of a democratic South Africa whose history is written in blood.
Two weeks ago we had an opportunity as the newly appointed Fifth Parliament Portfolio Committee on Labour to engage with the department and its entities on its annual performance plans and strategic plans, and how to achieve their targets. We also found an opportunity to evaluate and appreciate the work done by the department in the last term. We applauded the department where deserving. However, we were also critical where we thought it could have done differently or avoided certain challenges that were identified by the Auditor-General in his report. I wish to mention that, as the committee, we were briefed on IT-related challenges, which included how they emanated. We were also briefed on appropriate mechanisms to remedy that situation.
It is also known that the Minister of Labour intervened and, amongst other interventions, employed a team to conduct an internal audit, whose final report was forwarded to the security cluster for further investigation. We are waiting patiently for the conclusion of that process in order that the case be put to rest.
IsiXhosa[nm9] :
I-ANC isafana ... [Uwelewele]
English:
... in all political formations in the country, it is the most committed and consistent fighter for the liberation of black people and, in particular, the African majority. [Interjections.]
The HOUSE CHAIRPERSON (Ms M G Boroto): Order, hon members!
Mrs L E YENGENI: The ANC's historic battles date back to as early as its formation in 1912. It is therefore neither by accident nor chance that the ANC election manifestos, since the new epoch of democracy in 1994, have been the only ones that articulate the true aspirations and bring hope to the millions of people and workers who do not yet enjoy economic freedom in South Africa. [Interjections.]
IsiXhosa:
Abaprofeti bobuxoki ...
The HOUSE CHAIRPERSON (Ms M G Boroto): Hold on. Hold on. I am sorry, hon member, we don't have a madam in this House. Please, I repeat, hon members on my left, let's respect Rule 46 and Rule 47. Thank you. Continue.
Ms L E YENGENI: My minutes, Chair. Please remember them.
IsiXhosa:
Abaprofeti bobuxoki bemibutho ephikisayo yezopolitiko bekhokelwa ngumbutho wabanwele ezibulembu, emigaqo mkqubo yazo yamalungelo ixovela abantu eludakeni kweli leNtshona Koloni babe nemibono, imifanekiso-ngqondweni ukutsho, efana naleyo yabantu abangathanga dadobawo, okanye imitya engafikanga eparafinini ...
Mr C MACKENZIE: Madam Chairperson ...
The[nm10] HOUSE CHAIRPERSON (Ms M G Boroto): Hon member, is that a point of order?
Mr C MACKENZIE: Well, it is, Madam Chairperson. I would like to hear what the hon Deputy Minister is saying, but the interpreting service is not working.
Ms[nm11] L E YENGENI: I am not a Deputy Minister ...
Mr C MACKENZIE: Oh! Sorry, madam.
Ms[nm12] L E YENGENI: ... and I cannot be promoted by you. Thank you.
Mr C MACKENZIE: The hon ex-Deputy Minister.
The HOUSE CHAIRPERSON (Ms M G Boroto): Hon members, let's respect this House. I did not introduce anybody as ex-Deputy Minister here. I called the hon member to the podium, and let me say your time is being restored, mama.
Ms L E YENGENI: Thank you.
The HOUSE CHAIRPERSON (Ms M G Boroto): The interpreting will only be into English because of the space and the room that we are in. In fact, it not even working in English. We will get that sorted out. We have people who sort that out. Please respect this House. Continue, hon member.
IsiXhosa[nm13] :
Nk L E YENGENI: ... bathi i-ANC ayisafani kwaye ayisokuze ivotelwe ngabantu beli lizwe nangabasebenzi. Awakho amaqhinga, amaqhophololo amdaka obungqondo gqwirha angakhange asetyenziswe ukungcolisa i-ANC kunye noMongameli wayo kolu khankaso ludlulileyo kodwa bakhe phantsi isitya sigcwele.
English:
The Portfolio Committee on Labour will do everything possible to ensure that the Department of Labour delivers on its mandate of regulating the labour market through legislation introduced by this democratic Parliament.
It is also our responsibility as the Portfolio Committee on Labour to ensure that the Department of Labour and its entities align the annual performance plans and the strategic plans with the overall goals and strategy of government, which include the delivery of services to the people, and more so regarding vulnerable workers who face the wrath of abusive farmers in this province, mine worker bosses, fishing industry bosses in this province, construction workers, domestic workers' bosses, to mention a few.
All ANC policy documents acknowledge that the working class is a key force of the national democratic revolution. The ANC and its government support the workers' struggle for wages and better working conditions, but these struggles must be placed peacefully within the confines of the law. We commend the Minister of Labour for her visibility and positive intervention in the Western Cape, in Marikana and in the current Numsa strike. [Interjections.]
The DA is hellbent ... [Applause.]
The HOUSE CHAIRPERSON (Ms M G Boroto): Order! Order, hon members! Could you allow the member to speak.
Ms L E YENGENI: That is another five minutes, Chair. Please take that into consideration.
The[nm14] HOUSE CHAIRPERSON (Ms M G Boroto): I am watching.
Ms[nm15] L E YENGENI: Thank you. The DA ... [Applause.]
The[nm16] HOUSE CHAIRPERSON (Ms M G Boroto): Hon members, that is unbecoming. Please! You are giving her more minutes, and I am going to allow her to speak longer.
Ms[nm17] L E YENGENI: Thank you. The DA is hellbent on dividing black people in the Western Cape by marginalising Africans, and it continues using so-called apartheid preferential treatment of coloured people in this province. [Interjections.] This will certainly be evident if you walk into any Western Cape government department.
The President, in his state of the nation address, called for the introduction of a minimum wage. As the Labour committee, we will be embarking on various public hearings in different sectors - with labour and business and other stakeholders. This will enable Parliament to take an informed decision in this regard.
The bashing of labour by the media, by monopoly capital and its representatives, the DA, must come to an end. [Interjections.] The workers have genuine grievances and aspirations. In the workers' struggle against their bosses, the ANC is not neutral. The ANC supports the workers in their struggle for better wages. [Interjections.]
The[nm18] HOUSE CHAIRPERSON (Ms M G Boroto): Order, hon members! Hon members, we can't even hear this speaker. Please!
Ms[nm19] L E YENGENI: I will repeat myself. I have another five minutes.
An HON MEMBER: Oh really!
Ms L E YENGENI: Yes. [Interjections.]
The HOUSE CHAIRPERSON (Ms M G Boroto): Hon members, I know how much time she has.
Ms L E YENGENI: Fifteen more. The ANC is not neutral. The ANC supports the workers in their struggle for better wages and better working conditions.
An HON MEMBER: How about supporting the economy.
Ms L E YENGENI: The ANC also supports the unity ...
The HOUSE CHAIRPERSON (Ms M G Boroto): Hon member, hold on. I am not going to allow this. If you want to speak, you have the right to rise and state a point of order. You cannot keep howling at the speaker. We allow heckling, but this is excessive. Please respect yourselves. Continue.
Ms L E YENGENI: The ANC also supports the unity of workers under the auspices of the international workers motto of "One country, one federation". All efforts to divide workers must be condemned. We call upon all unions in South Africa to close ranks in defence of workers' demands, under the leadership of the federation, Cosatu. [Interjections.] We also call upon the leadership of the federation to focus completely on being champions of the workers' aspirations and to unite the workers.
IsiXhosa[nm20] :
Qina msebenzi qina. Phambili nomzabalazo wabasebenzi, phambili.
English:
The ANC supports the Budget Vote. [Applause.]
Afrikaans:
Dr P J GROENEWALD: Agb Voorsitter ...
Die[nm21] HUISVOORSITTER (Me M G Boroto): Wag 'n bietjie. Ja, ek luister.
Dr P J GROENEWALD: Voorsitter, op 'n punt van orde voor die agb lid begin: Ek verneem graag hoekom daar nie Afrikaanse tolkdienste beskikbaar is nie en slegs Engels?
English:
The HOUSE CHAIRPERSON (Ms M G Boroto): What was explained to me is that there aren't enough booths in which to put everybody. So, they can only interpret all the languages into English. That is what I was told. I am not a technician. Could we leave that for now? I will ask my service staff if there is any other explanation that I don't have at the moment. But let's not go into that and waste our time.
Afrikaans:
Dr P J GROENEWALD: Dankie, Voorsitter, maar ek aanvaar nie die verskoning nie. Dit is onaanvaarbaar.
Die HUISVOORSITTER (Me M G Boroto): Dit hang af.
Ms N W A MICHAEL: Chairperson, I am terribly sorry, but it does not "hang af" [depend]. It is unacceptable that in the South African Parliament we don't have interpreting into all of our 11 official languages, and this must be taken very seriously. The point of order raised by the member is very serious. There are members here that are Afrikaans and other languages and they have every right to hear what people are saying in one of the 11 official languages. I hope you do take this up seriously. By the end of the session, I would like to know exactly what has been done about this. Thank you, Chairperson.
The[nm22] HOUSE CHAIRPERSON (Ms M G Boroto): Hon member, he understood what I said. I said that if there was any other explanation besides the one I was given, you would get it.
LB (Eng)//Mia (Afr)/nb (Xh & Eng)/
END OF TAKE[nm23]
Mr I M OLLIS
Ms L E YENGENI
Mr[nm24] I M OLLIS: Chairperson, Ministers and colleagues, the ANC cannot create jobs. It is as simple as that. Since 2009, the South African economy has lost about 1,8 million jobs as the ANC doesn't know how to create jobs or grow this economy. Those Expanded Public Works Programme opportunities are not a long-term solution. Poor people will take them because there is simply nothing else. The Expanded Public Works Programme[tz25] jobs amount to 60 days or so of earnings of about R60 per day, and thereafter everyone is back on the street unemployed.
The ANC cannot even create the economic environment for the private sector to create real jobs, as we have witnessed in horror over the past five years of President Zuma's administration. What the ANC has created is an environment in which struggling workers are pitted against struggling companies in a race to the bottom, resulting in the collapse of the mining and manufacturing industries. This is the ANC's jobs legacy.
Revelations by the Commission for Conciliation, Mediation and Arbitration, the CCMA, in Parliament show that the labour instability in the mining sector should be attributed to systematic failure by the ANC in government.
The social wage has collapsed. Where are the RDP houses and good schools in those mining communities? Where is the access to water, electricity and sanitation and access to social amenities for families of mine workers? Where are the roads in rural areas?
Wage disputes and community social demands are coalescing in South Africa. The basic minimum wage will no longer suffice because low-wage workers have to pay the social wage themselves as the ANC government has failed to deliver those services in those communities that need them most.
South African labour relations are back in the 1980s when workers campaigned with progressive employers to remove the government, and not just for a salary increase. The honeymoon years of the late 1990s and early 2000s are over. The National Economic[tz26] , Development and Labour Council or Nedlac, the bargaining councils and the CCMA are not enough, Minister Oliphant. The ANC has to deliver basic services, health and education too.
Workers become angry when they see others reaping the rewards of corruption and connections with the ANC government and they, the workers, cannot afford transport home from Marikana to rural Pondoland or pay the family medical bills or buy food for their families who are struggling under the scourge of HIV and Aids. As Afzul Soodebaar of the CCMA put it recently, "Even the R12 500 minimum wage will not make the problem go away."
The violence around Marikana and the strike in the platinum sector was not a labour dispute, but in fact socioeconomic[tz27] frustration with this ANC government, which found a fault line in an employment relationship resulting in a labour dispute about wages.
Against this background, it makes workers even more angry to discover that the ANC Deputy President, who allegedly had shares in the mines at the time, apparently encouraged the police to use force; that the ANC-aligned shop stewards of the National Union of Mineworkers were allegedly awarding themselves extras that rock drillers and other workers were not entitled to; and that the new ANC Minister of Mineral Resources, according to the media of the past week, also has millions of rand in shares in platinum mines himself, while mineworkers cannot get the R12 500 because the world economy is slowing and platinum prices are just not high enough.
Just remember, dear ANC, when you blame mine owners that a number of them sit in the ANC Cabinet. Workers are giving the ANC a bloody nose, because the ANC has not delivered properly on the social wage. The ANC does not know how to create jobs and they are ruining the few jobs that we do have.
Just in case the EFF thinks that the ANC are the only corrupt ones, let's realise that the hon Malema and his party fare no better. Dear EFF, we see your R250 000 Breitling watches underneath your red overalls ... [Laughter.] ... the R2 500 shirts, the Armani suits and the Gucci shoes. I saw a nice, lovely, animal fur coat this morning in the House.
Using the poor to fund the EFF's high-flying lifestyles - your kids in private schools, luxury BMWs and R16-million houses in Sandton - are not the trappings of nationalisation, or a sign of caring for the poor. They are a sign of an up-and-coming connected elite who want to rule in place of the current corrupt elite.
Why is it that the hon Malema needs other people to pay his tax to Sars, while he lives the high life with such expensive clothes and other things? How much are EFF members being forced to pay on the hon Juju's unpaid taxes? The Economic Freedom Fighters are the ultimate racial nationalists, using workers' aprons as a fig leaf to hide their conspicuous consumption. Is he hiding behind me? [Laughter.]
The HOUSE CHAIRPERSON (Ms M G Boroto): Hon member, do you mind going back to your seat. [Interjections.] I know. I will call him in my own time.
Mr I M OLLIS: Thank you, Chairperson. He needs to hide. May I continue?
The Economic Freedom Fighters are the ultimate racial nationalists, using workers' aprons as a fig leaf to hide their conspicuous consumption, while the blood of workers dries on the hillside of Marikana. Let's stop this pretence.
However, when we look at this budget of the Department of Labour we cannot see the ANC caring for workers or the unemployed either. The budget for the inspection and enforcement services is down by R59,5 million or 13,6%. That means less petrol in cars to take labour inspectors to check safety conditions in the workplace, Minister, and less enforcement of the country's labour laws. Instead, the money has gone into a massive IT contract to replace that disastrous contract with Siemens, which never worked properly - about R2,2 billion later we had to dig our way out of that contract. Now, according to the Mail & Guardian, the Minister has entered into a new IT contract with Accenture for allegedly R1,9 billion, the full details of which remain as murky as a swamp.
This tender became a closed tender, which was negotiated with only one company, and the only company in the room negotiating was one which we are now told has a close relative of the Minister as a director. [Interjections.] And, not only that, we hear in the media that the Minister failed to disclose this at the time this process was negotiated. [Interjections.]
Minister, even if the Public Protector cannot find the actual smoking gun, how can workers trust the ANC any longer to be morally above board when this kind of thing is going on? To make things worse, this IT system – the new one - is still not working a year later, with the Compensation Fund now declaring a delay in the launch. The Auditor-General noted this and gave the Compensation Fund a disclaimer of opinion, the worst possible outcome.
The training lay-off scheme is not working for workers either, Minister. Billions are lying idle in this fund because it is too cumbersome to approve training. As a result, very few companies apply for the funding and even fewer get their approval.
In the past year, when Mercedes-Benz shut down for eight months for retooling, the economy of East London, in Buffalo City, almost shut down entirely, because all of the supplier companies could not get the training lay-off scheme approved for their workers in time. This meant eight large companies, collectively the backbone of the East London economy, almost had to lay off their entire staff for eight months while Mercedes-Benz was retooling. That's shocking.
But this is not where the problems of this bumbling department end. The Nedlac audit committee had to perform a special audit investigation of Nedlac in the 2011-12 financial year after many cases of irregular spending occurred. The figures involved are reportedly over R1 million for an entity with a very small budget. The audit itself cost R160 000 and was handed to the Minister, we are told, in September 2012.
The Minister has definitely had the report since August 2013, but it appears to have vanished up to doggy heaven, and we have never heard of it again. It details widespread irregular spending, we are told, during the term of the CEO at the time, Herbert Mkhize. But, Minister, why have you been hiding this report? Why did everyone on the investigation team have to sign confidentiality agreements? Why are you not making the findings known? Did the staff illegally charge flights and travel claims to Nedlac?
While we are on the subject of special advisers, Minister, we have yet another case close to the Minister: your chief of legal services Adv Pasha, who is still on suspension, costing the taxpayer we don't know how many millions. He was suspended on 24 October 2011. If there are any allegations against him, why are they not being investigated? Why no disciplinary action? If he has been cleared, why has he not been reinstated?
In fact, this department is in serious trouble with the Auditor-General again, isn't it, contrary to what you said earlier, Minister? We hear he may even declare tens of millions of irregular, fruitless and wasteful expenditure.
The DA has a better way. After cleaning up the mismanagement and corruption in this department, the DA would create the environment for rapid job creation that the ANC cannot provide, and bring an end to the violence, strikes and pickets. South Africa needs an environment that would encourage investment and economic growth. I thank you. [Time expired.] [Applause.]
C.I\\\tfm///
END OF TAKE[nm28]
Mr P G MOTEKA
Mr I M OLLIS
Sepedi[nm29] :
Mna P G MOTEKA: Mohl Modulasetulo, ke le Mminatau wa kgoro ya Babinatau ba Moteka, ke tamiša bahlomphegi ka moka ka mo Ntlong. A ke gopotše bohle ba le lego mo gore felo fa ga re a itlela, re romilwe.
English[nm30] :
In the interests of the public we serve, the EFF rejects this Budget Vote as proposed.
Our observations are as follows. Twenty years into democracy, young and old workers are still subjected to slave wages and dangerous working conditions on the mines, on the farms, and in the factories, retail stores and other workplaces. Domestic workers and farm workers still work under difficult conditions without basic workers' rights. Black professionals in all spheres of work are still subjected to racial discrimination. Civil servants, particularly teachers, nurses and the police, are treated with disrespect and paid low salaries.
With regard to labour broking, it is difficult to vote for a budget whose purpose is merely to legislate slavery through labour brokers who pocket large sums of money while workers take home peanuts. The very idea of labour broking or outsourcing is antipoor, taking advantage of the structural unemployment situation in the country. It is classist and antiblack, to say the least. The EFF demands the abolishment of contract work and labour brokers in favour of a law that will force employers to employ workers on a permanent basis.
The futile amendments to the current Labour Relations Act and the Basic Conditions of Employment Act for the President's consideration are precisely why we reject this budget. Furthermore, we recommend that the Basic Conditions of Employment Act must be amended to enforce a living wage of R12 500 for mine workers, R7 500 for security guards, R6 500 for manufacturing workers, R5 000 for farm workers, retail workers and petrol attendants, R7 000 for builders, and R4 500 for cleaners, waiters and domestic workers.
The EFF opposes the assertion made by the hon Minister that proposed legislation will end the prolonged strikes and force parties into agreement. Parliament should be aware that workers have nothing but their labour power, and the intention of the current legislation, under the framework of the National Development Plan, is precisely to relax labour laws in favour of capital.
When it comes to accidents and incidents in the workplace, the department itself has admitted that, with the current budget, it simply has no capacity to perform and enforce compliance with the Occupational Health and Safety Act. Despite the high level of youth unemployment and a backlog in vacancies, Minister, you reduced the money allocated for the 2013-14 financial year from R439,02 million to R403,02 million. This is proof that the department is undermining the livelihoods of the people.
The EFF therefore rejects the budget which, quite literally, is the bodyguard of capital, maintains labour broking and is unable to enforce a living wage. To all EFF supporters, the working class and the poor, the EFF is here for you, rest assured.
Sepedi[nm31] :
Sepedi se re "nyatša molala e hwetše molaleng." Ke romilwe.
Mr[nm32] M A MNCWANGO
Mr P G MOTEKA
English:
Mr[nm33] M A MNCWANGO: Madam Chairperson, hon Minister, hon Deputy Minister, I would like to state upfront that the IFP supports the budget. [Applause.] But I do want to say that the department needs to step up its processes so as to effectively ensure that labour market interventions can actually reduce unemployment, poverty and inequality.
However, this can only take place effectively if actual job creation, not just opportunities, is pursued, and if small, medium and micro enterprises, SMMEs, are given more opportunities to be more competitive.
The rural areas are especially vulnerable and the need for the establishment of mobile labour centres in areas such as Nongoma, for instance, is imperative. Many young people in these areas do not have access to skills development centres and opportunities which the department could assist them with. Being far from city centres poses great challenges of access and of the high cost of transport if they actually were to go to the main offices. Having satellite offices, therefore, will ensure that they also get resources from the department. The department has to be more visible where the people are.
Our labour market is flooded with imported goods, which undermines the goods and services produced locally. Consequently, our efforts at job creation and reducing unemployment are jeopardised, because these imports force employers to retrench workers because profits actually get affected.
Markets must be made available for local goods to flourish, to allow for a better labour force and to actively reduce unemployment. Sheltered employment factories, like the ones we visited last year, need to be encouraged and expanded. I think the department will need to explore possibilities of securing a market for the beautiful items that are produced in those markets. The government must be the first market for the products, such as the furniture that is produced.
We constantly see unions encouraging their members to embark on strike action in pursuit of better wages. However, this can turn into protracted industrial action, which not only costs the employees their wages, but also has a detrimental effect on the economy.
Workers have a constitutional right to strike in order to bring their grievances to light, but what we have witnessed in the platinum mining sector cannot be allowed to be the norm in the labour relations environment. The Commission for Conciliation, Mediation and Arbitration, the CCMA, needs to be financially capacitated further to ensure that it can deal with and help resolve protracted strike action, which will help reduce tension and the number of violent acts in the labour market.
We do not want to see a repeat of the Marikana massacre. The department has to find a way to deal with the unions that ensures economic growth and that does not allow unions to hold the country to ransom. Such action not only compromises the department's aim for job creation, but also discourages investment in our country when it is needed the most. I thank you. [Applause.]
Kn//LIM CHECKED//END OF TAKE[nm34]
The DEPUTY MINISTER OF LABOUR
Mr M A MNCWANGO
The[nm35] DEPUTY MINISTER OF LABOUR: Hon Chairperson, I don't know if you have been advised, but I have been informed that a Deputy Minister of Labour, who speaks for the first time, is allowed an extra three minutes ... [Laughter.] ... should he be unable to finish his speech within the allocated time.
I believe, Minister, that it is apposite that we commend the turnaround that is manifesting itself on the part of opposition parties in so far as they have come to support our campaigns for decent salaries for workers and for government intervention in the economy - so that we don't leave this only to the ravages of the free market.
The DA has been calling on the ANC government to create jobs. In the past, I thought, that was the responsibility of the private sector, with the government only required to provide the necessary environment to allow the private sector. We therefore applaud the DA for agreeing to the idea of a developmental state in which the government is directly involved.
It seems therefore that I do not have to finish my speech, because most of what is contained in my speech has already been supported by most of the speakers from that side who have already spoken. Nonetheless, I stand before you this afternoon as one of the servants of our people who has been given additional responsibilities as the Deputy Minister of Labour. I am humbled by the President's confidence in me, as demonstrated by his decision to appoint me to this new role as part of his team to move the country forward.
I am equally thankful to my Minister, Mrs Oliphant, for warmly embracing my arrival in the Labour Ministry. Having worked with the Minister in the past on other equally important national assignments, I look forward to supporting her as we strive to make South Africa a better place for all its citizens.
There are several functional areas that have been entrusted to me by the Minister, one of which is the International Relations portfolio. This portfolio is seized with harmonisi[nm36] ng and co-[nm37] ordinating policies and strategies with like-minded countries on employment generation and the promotion of labour standards across the globe.
As such, I have just returned from Zimbabwe where an extraordinary meeting of Southern African Development Community Ministers and social partners responsible for employment and labour was held. It is for this reason,chairperson of the portfolio committee and members, that I have not been able to attend the committee's meetings in the past week. Accordingly, I tender again the apology I forwarded to the committee. I look forward to engaging with members as I work with them in the future.
In spite of the self-flagellation we tend to inflict on ourselves, our neighbours hold us in high esteem in the field of labour relations, social dialogue and in forging collaborative social partnerships. Notwithstanding some of the challenges we face, it would be naive not to acknowledge the radical transformation of the labour relations environment achieved by successive ANC-led governments in the past 20 years. The net effect was the removal of draconian laws that for decades condemned our people to the periphery of the economy, abject poverty and hopelessness. It is now common knowledge that these were replaced by a labour relations legislative framework that has restored the dignity of millions of South Africans.
On 7 May 2014, the nation gave the ANC a mandate to govern for another five years. This, the nation did on the strength of its faith in the ANC as a champion of transformation and human rights, and as an agent and catalyst for social change, social development and economic prosperity.
The nation has placed an enormous responsibility on all of us, and that responsibility can be gleaned from the ruling party's manifesto, the National Development Plan, the Industrial Policy Action Plan, and the New Growth Path. We dare not fail.
I step into a portfolio whose mandate is by and large derived from the Bill of Rights. It can, therefore, be said without fear of contradiction that the Department of Labour, by virtue of its mandate, fits perfectly with the characteristics of a human rights ombudsman. The department is primarily about the protection of the rights of workers in general and vulnerable workers in particular.
Changes in the Occupational Health and Safety legislation post-[nm38] 1994 have resulted in important improvements in health and safety standards in the workplace. Similarly, a Bill before Parliament is aimed at extending unemployment benefits to vulnerable workers who were not covered previously, such as domestic workers and farm workers. Lest we forget, many people paid the ultimate price to realise the kind of labour law dispensation that we have in this country. Many have yet to realise the full benefits of this dispensation.
I am raising these issues to alert those of us who tend to be quick to demonise workers whenever they exercise their constitutional rights, especially when doing so creates a degree of discomfort for those in positions of privilege. Having said that, I am the first to admit that exercising one's rights should not unfairly trample on the rights of others.
The latest developments in the industrial relations world of work require a careful and objective diagnosis from all concerned. The violence that often accompanies strikes and the prolonged nature of the recent strikes demand that all of us do some reflection in order to understand the key drivers of these disturbing trends.
Whilst others are quick to offer what they think will be solutions, it will be important to remember that we are not only dealing with symptoms but the underlying causes. This requires a sober reflection, a dispassionate approach that will lead ultimately to credible and long-term solutions. It is just as important, therefore, to resist the temptation of proffering sweeping statements on what is clearly a delicate and complex issue.
The President announced in the state of the nation address that the Deputy President, the hon Ramaphosa, would convene a dialogue among social partners to discuss these matters. This will indeed be the platform for us to come to grips with the causes of this incipient malaise of violence and allow us to craft interventions that are informed by evidence rather than speculation.
In this new portfolio I have come into, I have come to appreciate the richness and diversity of the products and services provided by the department to our people, more so in light of the areas that have been assigned to me by the Minister and where I hope to add demonstrable value. Do allow me therefore to give a high-level account – with time permitting - of some of the issues that are currently in my world of work and some elements of the action plan going forward.
I respectfully submit that the labour market legislative framework is often a reflection of how well and effective its institutions are. If the labour market institutional framework isn't performing optimally, you are bound to experience challenges. It is against this background that at this juncture I shall crystallise the roles and functions of some of these institutions.
Firstly, the Commission for Conciliation, Mediation and Arbitration, CCMA, deals with labour dispute resolution issues in South Africa and it is the first port of call for dispute referrals. The role of the CCMA is critical in the Department of Labour's mandate in that it is where the protection of the rights of workers in general and vulnerable workers in particular is tested. Of particular importance in this regard is the fact that the services of the commission are free of charge. The[nm39] new dispensation will require tooling and retooling for the CCMA in order to cater for the added roles and responsibilities that may come with the newly amended labour laws.
The Labour Court and the Labour Appeals Court handle labour law cases - that is disputes arising from the relationship between employer and employee and trade unions[nm40] . The Labour Court has exclusive jurisdiction over cases arising in the main from the Labour Relations Act of 1995.
The biggest challenge in the Labour Court, I am told, is the lengthy period it takes to hear matters to finality. We shall engage the Judge President of the Labour Court, together with the Ministry and Department of Justice and Correctional Services, with a view to finding ways of expediting the finalisation of cases.
The Employment Conditions Commission was established in terms of the Basic Conditions of Employment Act, with the aim to advance economic development and social justice by regulating the right to fair labour practices. The commission will be extremely busy in the coming days as it will play an important role in investigating the notion of a national minimum wage. We will engage the commission with a view to assessing its state of readiness to take on a project of this magnitude.
The focus of the Commission for Employment Equity is on the creation of equitable workplaces that are free from unfair discrimination. South African businesses are obliged under the Employment Equity Act to ensure representation of black people, women and people with disabilities in the workplace. In the main, the brief is to eliminate unfair employment discrimination by promoting equal opportunities and fair treatment and to achieve a diverse workforce that is broadly representative of the people of South Africa.
The Employment Equity Amendment Act generated much debate in South Africa, more so when the draft regulations were published for public comment. The advent of the amended Act will necessitate an engagement between the department and the commission with a view to assessing its state of readiness to deal with the requirements of the new law. Furthermore, to address and reinforce our oversight, Chapter 2 of the Employment Services Act deals with the regulation of private employment agencies and temporary employment agencies, popularly or notoriously known as labour brokers, depending on your point of view.
In addition, amendments to section 198 of the Labour Relations Act propose to address the employment conditions of people under these conditions[nm41] . These developments add clout to our monitoring mechanisms in order to protect and safeguard the rights of all workers in our country.
We also oversee Productivity SA, PSA, a tripartite body of employers, government and labour, dedicated to the development and enhancement of South Africa's productive capacity. In the main, this is done through research, training, facilitation, auditing and monitoring of productivity issues and challenges. Productivity SA [nm42] adds a vital link to the department's efforts to create an environment conducive to increased productivity in the workplace.
The National Economic Development and Labour Council, Nedlac, seeks to facilitate inclusive and transparent decision-making on labour issues. Launched in 1995, it brings together representatives from all sectors of society to debate and seek consensus on social and economic policy issues in what the body terms social dialogues.
The state of the nation address correctly states that the engagement on the challenges facing the labour market will be done under the auspices of Nedlac. This should help to restore the credibility and the leverage of this noble institution and to change any negative public perceptions.
The Supported Employment Enterprises – to which the hon Mncwango referred - formerly known as Sheltered Employment Factories, were established more than 65 years ago to provide employment opportunities for those people living with disabilities. They cater for persons who are unable to hold down employment in the open labour market due to the nature of their afflictions. There are more than 2,5 million people living with disabilities in South Africa, of whom 10% to 15% thrive in an environment like the one provided by these enterprises.
Most of the challenges that prevailed in these factories were largely due to a lack of a legislative framework, which has now been addressed through the recently passed Protected Employment Services Act. We would like to urge all government departments and state-owned companies to procure goods such as furniture for schools and offices from these institutions.
In order for workers to enjoy the full benefits of our labour market dispensation, inspection and enforcement services are a vital cog in our service delivery machinery. The legal framework to strengthen this important area of our work is already in place through the latest amendments to the Basic Conditions of Employment Act. Plans are afoot to leverage the new legal instruments in order to improve compliance. Thank you.[nm43] [Time expired.] [Applause.]
/MS/NM-ed/END OF TAKE[nm44]
Ms P T MANTASHE
The DEPUTY MINISTER OF LABOUR
Ms[nm45] P T MANTASHE: Hon Chairperson, Ministers and Deputy Ministers present, hon members, distinguished guests and fellow South Africans, back in 1994 many doomsayers thought the democratic dispensation of this country was not going to last beyond 12 months. Others stockpiled, dug bunkers or left the country as a result of their fears that the country was going be plunged into a civil war. I am told that the hospitality industry in our neighbouring countries was booming during the period leading up to our first democratic general elections. All their hotels were fully booked and their guests did not care whether the hotel facility was five star or no star. Some, I am told, were even prepared to check in at garages.
It is therefore remarkable that this democracy has lasted this long and signs are there for all to see - apart from political parties, big business and sections of the media that have led the chorus in calling for the deregulation of the labour market - that it will be here for many decades to come. [Interjections.] While any constituency obviously has the right to articulate its views on any aspect of public policy, it needs to be clear that these critics of advances in labour market regulations are by no means neutral or objective commentators.
Notwithstanding the criticisms raised by big business, the fact remains that it is largely workers who have borne the brunt of economic restructuring over the past few years. Rather than profit rates being reduced, it is workers who have been retrenched in their hundreds of thousands and whose productivity increases have outstripped real-wage increases.
No convincing evidence has come to light which points to a negative economic impact of the progressive labour legislation introduced by this department. In fact, as some recent studies point out, our labour legislation merely brings South Africa into line with international norms. We are thus heartened by the department's acknowledgement that deregulation alone will neither enhance overall flexibility nor lead to a substantial improvement in employment.
While we recognise that the department cannot be narrowly sectarian in its approach to policy, intervention to rectify the historical distortions should take precedence over narrow interests to reverse the advances made in the past 20 years. It is now time for the labour market debate to shift away from groundless criticism of transformation towards ensuring the uniform implementation of these changes and the deepening of stability and security in the labour market.
We characterise the South African labour market as having four major problems: unemployment, poverty, inequality and exploitation. These are by no means small problems, and we would obviously not expect the department's five-year plan to eliminate all of them. Nevertheless, there are strategies which we would want to see given greater attention, such as a deliberate narrowing of the wage gap to reduce inequality, higher minimum wages to address poverty and exploitation, and a greater emphasis on enforcing uniform compliance with existing legislation.
Often the argument from business and opposition parties rests on the philosophy that labour markets operate like other markets, and that equilibrium can be obtained by influencing those factors that determine supply and demand; hence, a one-sided focus on regulation, with trade unions seen as stumbling blocks to the functioning of the labour market.
Furthermore, the debate has almost exclusively focused on labour market flexibility, while overlooking the fact that labour markets operate within an economy characterised by structural problems that depress employment and efficiency. The structural crisis engulfing the South African economy, manifested, for example, in the high rate of unemployment, poverty and inequality, cannot be left to the market to address. It requires concerted intervention by the state to achieve equitable outcomes.
However, it is interesting to note that these commentators do not provide empirical evidence to back their claim about labour market rigidities, and their supposed effects on employment creation and competitiveness. Their call for labour market flexibility is a desperate attempt to demonise the trade union movement as a destructive economic force, and to return to the days of the apartheid cheap labour system. This codified attempt to turn the clock back and remove basic rights and protections for workers will lead to the entrenchment of apartheid's economic rigidities.
While there is still too much flexibility and exploitation of low-paid workers, there is a problem of rigidity in the upper echelons of the labour market, especially in the managerial and professional strata. They use their access to scarce skills and historically accumulated privileges to entrench their positions in a way that has led to huge disparities in income, which are virtually unparalleled in other parts of the world.
South Africa is one of the 185 member states of the International Labour Organisation, and this has been the case for many years. The country proudly carries the flag as one of the few member states where core labour standards are enshrined in the country's Constitution, and has remained a source of inspiration for many countries, both in developed and developing economies. Human rights activists continue to hail South Africa's labour laws as among the best in the world.
Comrade Chairperson ... [Interjections.]
An HON MEMBER: Comrade? [Interjections.]
Ms P T MANTASHE: The people of the country must not forget that it is through the ANC-led government that they have fresh air. [Interjections.]
South Africa, besides being a member in good standing, has for many years been one of the leading countries that has made visible contributions in terms of the shape and content of the international labour agenda, and in some cases has even sponsored texts on some of the ILO's recent conventions and recommendations.
In June 1999, ILO member states unanimously adopted Convention No 182, which calls for action to tackle and eliminate the Worst Forms of Child Labour. The International Labour Conference, at its thirty-fourth session, adopted ILO Convention No 100: Equal Remuneration, and in 1958 adopted Convention No 111: Discrimination - Employment and Occupation.
Being two of the eight fundamental ILO conventions, every ILO member state is obliged to follow the principles expressed in the Conventions on Equal Remuneration, and Discrimination - Employment and Occupation. Every two years, governments have to submit a report explaining the measures they have taken to effectively apply the conventions.
South Africa has a much-divided and severely unequal past. It cannot be acceptable or business as usual in a country where inequality is among the worst in the world. Citizens of the country must always remember that your oppressor of yesterday cannot be your emancipator of today. It is even more disturbing that the instruments agreed to by all social partners to address this legacy are being treated with contempt by those who are meant to implement them.
Wage and income disparities are chronically severe in South African society. The hard truth is that these things cannot resolve themselves without some intervention. As I stand here, I want to clarify for the citizenry of this country, which voted the ANC into power for a fifth term, that it's through the legislation the ANC passed at the dawn of democracy that some entities of the Department of Labour were activated. I'll cite but one example: the CCMA and the impact it has had on the lives of workers. I stand here to support the budget presented by the Department of Labour. Thank you. [Time expired.] [Applause.]
TH
END OF TAKE[nm46]
Dr P J GROENEWALD
Ms P T MANTASHE
Dr[nm47] P J GROENEWALD: Agb Voorsitter, Minister, u het Suid-Afrika vanmiddag met u debat weereens in die steek gelaat. Daar is 'n kritiese probleem daar buite in terme van die arbeid in Suid-Afrika, maar u dink dit gaan wonderlik.
U voorsitter van die portefeuljekomitee, agb Yengeni, dink die ANC het 62 miljoen stemme gekry. Sy weet nie eens daar is net 52 miljoen mense in Suid-Afrika nie en dat net 26 miljoen geregistreer het om te stem. Dis dan geen wonder die agb lid kan nie tel nie, want sy dink daar word werk geskep, maar al die tyd is dit werksverliese. Dit is die probleem met die regering van Suid-Afrika en die ANC. Dit lyk vir my hulle kan nie tel nie.
Minister, u sê weereens dis apartheid se skuld. Datsun wou in Suid-Afrika belê, maar toe gaan open hulle 'n fabriek in Indië. Dis nie apartheid se skuld nie, dis die ANC se skuld. BMW wou hul 4-reeks in Suid-Afrika uitgebrei het om hier te vervaardig. Hulle het dit nie gedoen nie, as gevolg van die arbeidsonrus. Dis nie apartheid se skuld nie, dis die ANC se skuld. Nissan wou hul fabriek verbeter het in Suid-Afrika om hul produkte hier te vervaardig, maar hulle het toe na Nigerië gegaan, juis as gevolg van die arbeidsonrus. Dis nie apartheid se skuld nie, dis die ANC se skuld.
Minister, solank as wat u met Cosatu in die bed is, gaan u nie arbeidsprobleme in Suid-Afrika opgelos kry nie, want dis u vennoot. Om ekonomiese groei in Suid-Afrika te kry, moet die arbeidswetgewing drasties verander. U eie kollega, die Minister van Mineralebronne, sê dat arbeidswetgewing moet verander. Mens sou verwag dat die Minister vanmiddag dit hier sou sê, maar u het nie. U los dit vir u kollega. Stem u saam met u kollega? U moet dit vandag vir ons sê.
Eerstens, klim uit die bed met Cosatu. U gaan siektes opdoen daar. Tweedens, u sal die Wet moet verander dat daar geheime stemming onder lede moet plaasvind of hulle 'n loonaanbod aanvaar of nie. Derdens, u moet wetgewing daar stel vir geweld wat gepaard gaan met stakings. Sodra 'n insident met geweld plaasvind, moet sodanige staking as onwettig beskou word.
Dan het u drie stappe geneem wat Suid-Afrika op 'n pad kan plaas om dan wel werk te skep. U moet ook asseblief leer om te tel. Ek dank u.
Mr[nm48] D AMERICA
Dr P J GROENEWALD
Mr[nm49] D AMERICA: Hon Chairperson, hon Minister, hon Deputy Minister, colleagues, as we all know, the challenge facing South Africa today is that too few people are employed. The DA believes that the high barriers to entering the labour market exclude millions of South Africans from accessing employment opportunities. The National Development Plan: Vision for 2030 for employment and growth includes, amongst other things, a fall in the unemployment rate from 25% to 6%, the creation of 11 million additional jobs, and labour force participation of 65%.
To achieve these targets, amongst other things, the NDP suggests that there needs to be social cohesion, because, if South Africa registers progress in deracialising ownership and control of the economy without reducing poverty and inequality, transformation will be superficial. Similarly, if poverty and inequality are reduced without demonstrably changing the ownership patterns of the economy, the country's progress will be turbulent and tenuous. Therefore, our labour policy on its own will not be sufficient to create enough jobs so as to create the inclusive society envisaged by the NDP.
Appropriate labour legislation must be accompanied by an economic policy that creates jobs and stimulates growth. Our labour policy needs to balance the rights of workers with the need to build greater flexibility into our labour market, making it easier for business to create jobs and contribute to economic growth. Our current labour policy is not achieving this balance; it protects the employed at the expense of the unemployed.
When international ratings agencies downgrade our economy, they consistently highlight our labour legislation regime as a key concern. Consequently, we need to realign our labour laws to support rather than inhibit job creation.
The Unemployment Insurance Fund has grown from R65,9 billion at the end of the 2011-12 financial year, to R81,8 billion at the end of the 2012-13 financial year. Annual collections of approximately R13,6 billion are offset by expenditure of approximately R7,7 billion. This means that the fund grew by a tidy sum of R5,9 billion in 2012-13, resulting in surplus growth of R47,9 billion in 2012 to R62 billion in 2013. The expected contributions for 2014 are R15 billion, and benefits expenditure is estimated to be R7 billion.
Therefore, we propose that UIF contributions made both by the employer and employee should be provisionally halved from 1% to 0,5% until the capital base of the fund reaches a predetermined benchmark. This will reduce the cost of hiring workers and stimulate economic activity by increasing the net wage of workers and increasing their spending power.
If there are concerns about the fiscal risks that this may present, they can be mitigated by reinstating the 1% contributions determined by the Unemployment Insurance Fund Act, if the capital base contracts beyond the predetermined benchmark.
The NDP envisions that by 2030, 90% of jobs will be provided by small businesses. It is this sector that creates ... [Time expired.] [Applause.]
Mr W M MADISHA
Mr D AMERICA
Mr[nm50] W M MADISHA: Hon Chairperson ...
The[nm51] TEMPORARY CHAIRPERSON (Ms T C Memela): Hon Madisha, you speak from here, not from where you are seated.
Mr[nm52] W M MADISHA: Hon Chair, whether we accept it or not, South Africa is in the intensive care unit due to the unemployment rate of poor South Africans. Whether some amongst us want to accept it or not, it is a fact that the unemployment rate we are facing today has never been experienced in our country.
It was in 1998 when the working class in South Africa approached the late President Mandela to say to him that the unemployment rate in our country stood at 40%. We thank the late President Madiba for bringing together workers, business and government to find a way to resolve the problem. Workers gave one day's wages. But today, unlike in Madiba's years, we have a government that does not want to face the truth and agree that the unemployment rate has gone beyond 40%. What the government today says is that the unemployment rate is between 25% and 27%. Why are you doing this to the people of our country? Why should government continue to lie?
Furthermore, the majority of those who work do not receive a living wage. And, again, millions of those who work are owned by labour brokers. Many of those who work are foreigners who accept anything. Those workers agree to exploitation.
We all have seen what senior leaders in the ANC have done and are continuing to do. The hon Chairperson of the NCOP, for example, who is the leader of the ANC, has agreed that poor workers must work on a farm, share food with the pigs, etc. What kind of government is this? [Interjections.] Even more so, the Deputy President of the country, who is a senior leader of the ruling party, has given instructions that workers must be shot at Marikana - it is there. What kind of government is this? Are our people going to be killed?
Ms[nm53] L S MAKHUBELA-MASHELE: House Chair, I rise on a point of order: The point of order that I want to bring forth is that the hon Madisha continually says that the hon Thandi is giving her employees food to eat with the pigs, which is misleading this House. [Interjections.] We do not have any information to that effect. Equally, when he says the Deputy President instructed the shooting of the Marikana people, that is misleading the House. I would ask you to make a ruling on that. [Interjections.]
The[nm54] TEMPORARY CHAIRPERSON (Ms T C Memela): Hon members of the opposition, you have been warned more than once. If you have anything to say against the person who is on the floor, raise your hand and say it is a point of order. But we cannot continue behaving the way we are doing right now. We respect you; you are hon members; you are leaders, even if you are in the opposition. But let us give each other respect. Thank you. Hon Madisha ...
Mr W M MADISHA: Thank you.
The[nm55] TEMPORARY CHAIRPERSON (Ms T C Memela): ... before the point of order was raised, your time was over and under no circumstances am I going to give you even a second. Thank you very much.
Mr[nm56] W M MADISHA: But it is a fact that the government has failed and it continues to fail, and our people are dying. That must be ...
The[nm57] TEMPORARY CHAIRPERSON (Ms T C Memela): I've said your time is over.
Thank you. As I sit down, I maintain that is a fact. [Applause.]
Mm. Eng//Afr.Src
END OF TAKE[nm58]
Ms S R VAN SCHALKWYK
Mr W M MADISHA
Ms[nm59] S R VAN SCHALKWYK: Hon Chairperson, hon members, esteemed guests, comrades and friends, the policy framework for the ANC's 2009 manifesto gave the ANC-led government a mandate to expand the coverage of the Unemployment Insurance Fund to include nearly a million domestic workers and farm workers. I am pleased to announce in this House, today, that the ANC-led government has indeed delivered on this mandate. [Applause.]
On the 97th anniversary of the ANC, the president of the ANC reported to the citizens that, "We have put in place measures that resulted in 500 000 new jobs being created annually since 2004 and have expanded Unemployment Insurance Fund coverage to include nearly a million domestic and farm workers." As a representative of the ANC, it is a great honour to debate this Budget Vote today, on behalf of the 62% who reaffirmed their trust in us on May 7, 2014. [Interjections.] [Applause.]
The Unemployment Insurance Fund is a public entity of the Department of Labour that exists to contribute to the alleviation of poverty in South Africa. This it does by providing effective, short-term unemployment insurance to all workers who qualify for unemployment and related benefits. The UIF does not receive transfers from the Department of Labour, as it generates its own funds.
Due to ANC policy orientation from 1993 to 1995, there was a review in labour legislation. This review was reaffirmed in 1997 at the ANC's 50th national conference. The Taylor commission, as initiated by the ANC, had its outcomes in March 2002, which emphasised the need for an increase in social benefits. This led to the restructuring of the UIF and, ultimately, ensured better benefits to the advantage of the working class, the unemployed and the ordinary citizens of our country. Major contradictions of the past, disadvantaging the majority, have been addressed. In addition, the improved UIF addressed comprehensive social protection to the advantage of our people.
On 7 February 2013, Ms Nombuso Mlotywa posted on the Internet that it took her two weeks to receive her UIF benefit after submitting her claim. She was impressed with this turnaround time for the processing of claims. This is one of the good stories that we must continue to tell the nation. [Applause.]
Ms[nm60] L E YENGENI: Chairperson, on a point of order: I really can't hear. There is a lot of noise coming from that side. My concern is that when I look at them, there is no teenager there. Could you please rescue us from this noise? [Interjections.]
Ms[nm61] S R VAN SCHALKWYK: South Africa already has one of the highest ratios of taxpayers to welfare dependants in the world, so any move to increase the number of beneficiaries or the size of the payments they receive from the state should be treated with the utmost caution. This stance is motivated by the question of affordability and sustainability, rather than principled or ideological resistance to the welfare state. In a country such as South Africa, with its history of discrimination and huge disparities in wealth, education, skills and opportunity, as well as an appallingly high unemployment rate, a state-funded social safety net is morally obligatory.
The UIF's plan to extend the benefit period from eight months to a year, however, is quite different. Firstly, the fund is independent of the fiscus. So, increasing payments would have no effect on the budget deficit, nor deprive Peter to pay Paul. The funds are raised through a levy on employees' wages and salaries, so there is no reason more should not be returned to contributors who lose their jobs, as long as this is done in a sustainable manner.
Based on the fund's 2011-12 financial report, sustainability is not an issue. The UIF asset base grew to R65 billion from R54 billion during the year, with collections rising about 10% to R12,4 billion. Spending grew 5,7% to R5,6 billion. As UIF commissioner Boas Seruwe said, the UIF contribution is a levy, not a tax, so there is no purpose in allowing the funds to accumulate ad infinitum.
In the current Act, miscarriages and stillbirths entitle a woman to only six weeks of benefits, but in the Bill, that goes up to 32 weeks. The current Act also stipulates that you have to be sick for a period of 14 days before you can start claiming illness benefits. That is being cut to seven days. In addition, the time limit for UIF benefits after losing your job is extended from six to 12 months.
Another good story to tell ... [Interjections.] ... is the story of the Labour Activation Project, which has been introduced at the UIF to focus on job-creation projects. Three training schemes for over 4 000 unemployed beneficiaries have been implemented over the past three years, in collaboration with various sector education and training authorities, Setas, on various artisan skills. Nine training schemes were approved in December 2013 to train an additional 8 000 UIF beneficiaries in various artisan and information and communications technology, ICT, skills. The amount allocated for this initiative is R300 million.
The UIF's socially responsible investment fund, the SRI fund, was created to focus on developmental investments. Advancing an additional R2 billion to the Industrial Development Corporation for the IDC-UIF collaboration on job creation resulted in 44 460 jobs created and saved. An example is the establishment of a chicken abattoir in Petsana, Reitz, where 950 young people got jobs and a 23% shareholding. President Zuma launched this project.
I am pleased to report that the ANC-led government has achieved the following. Since 2009, over 3,7 million unemployed workers have received UIF benefits; employers registered with the UIF have increased to 1,5 million; employees registered with the UIF have increased to 8,5 million; the Unemployment Insurance Amendment Bill, aimed at improving benefits, was approved by Cabinet and has been submitted for further processing. This amending Bill will increase benefit payments to more than R10 billion a year. In addition, for the past three years, the UIF has received clean audits from the Auditor-General. Last year, the fund received an award from the Auditor-General for the clean audit for the 2012-13 financial year. Finally, unemployed workers can now claim UIF online, using the u-Filing system.
The ANC supports the Budget Vote. Thank you. [Time expired.] [Applause.]
Mr M A PLOUAMMA
Ms S VAN SCHALKWYK
Mr[nm62] M A PLOUAMMA: Hon Chair, hon Minister and Deputy Minister, there can be no debate about the fact that this department is charged with the single most challenging responsibility of this government and of us, South Africa, as a whole – namely, eradicating poverty through the reduction of unemployment. This challenge has, for the most part, been dominated by a struggle between employers and employees, with each claiming its interests as the most important.
We have done little in this country to ensure that we create a win-win situation for both employer and employee. On the one hand, we must make employers understand that productivity will never be optimised when workers are ill-treated with the lowest possible wages in order to maximise profits.
Employers should understand, realise and accept that profits cannot be made without accepting the welfare of the workers. On the other hand, employees must realise that in order for employers to be able to pay employees fair wages they have a responsibility to maintain productivity. Unions must start making part of their mandate the promotion of higher work ethics among the South African workforce.
Millions of South Africans will remain outside the formal employment sector for as long as this government fails to remove those obstacles in the way of employment.
Agang is particularly concerned about the recruitment practice of subjecting the millions of unemployed South Africans to unqualified credit checks. This puts an absolute barrier in the path of the millions of South African job seekers who attained negative credit profiles due to circumstances beyond their control. Agang therefore calls on the hon Minister to put a ban on the unqualified use of credit profiles in the recruitment process.
Finally, Agang does not understand why we persist with practices that bring hardship to many South Africans. Here, I refer to this government's reluctance to deal decisively with labour broking. The arguments advanced in favour of labour brokers are heavily outweighed by the prevention of worker exploitation. Thank you. [Interjections.]
Well, Minister, this is my first term in Parliament. I must give you an opportunity. I support the Budget Vote. [Applause.]
/Robyn/
END OF TAKE[nm63]
Mr H F NKOANA
Mr M A PLOUAMMA
Mr[nm64] H F NKOANA: Hon Chairperson of this session, Minister and Deputy Minister present here, hon Members of Parliament, esteemed guests, comrades and friends, progressive and nonprogressive labour organisations, the ANC government inherited a terminally ill economy in 1994, characterised by unemployment, economic stagnation and repressive labour laws. The pre-1994 labour laws of this country were used by the apartheid regime not only to suppress workers in the workplace, but also as part of social engineering on a bigger scale.
The wages that were paid to workers dictated their societal patterns that we see in this country. Low wage levels determined, inter alia, who would qualify for a housing loan, which hospital to go to, which schools to send your children to, where to buy your groceries and essentials, and what food to eat. The entire socialisation of society was, to a large extent, dictated by the labour market policies of the day.
Let's take a step back and examine briefly where we came from in terms of the journey of dialogue in South Africa. Dialogue, in general, and social dialogue, in particular, are not foreign concepts in South Africa, by any means.
By the mid-1980s, the apartheid government was facing the full might of the antiapartheid movement, externally and internally, leading to the imposition of a state of emergency. During this period, formations inside the country, such as the Congress of SA Trade Unions or Cosatu, academics and activists, opposed the apartheid state and began to conduct research to develop policy options for a postapartheid South Africa. The ANC in exile also embarked on a similar process.
Progressive trade unions were actively engaged in a process to craft the architecture of the new order. At the same time, business formations, such as the SA Employers' Consultative Committee on Labour Affairs or Saccola, also began to argue that business in South Africa had to start doing things differently, if they had any hope of influencing and shaping the inevitable new order.
The top employer, the industrialists in the country, also understood the role industrial relations would play as the workplace became a terrain of conflict. To pursue this new thinking, business created a consultative business forum as a platform through which engagement should take place.
In 1988, the old government proposed new amendments to the labour relations, which included things that were aimed at reversing the gains of workers achieved over many years of the struggle. This was the first trigger and a real test of whether or not social dialogue had a chance in the real world to deliver sustainable solutions in the policy world of the day.
In order to move forward, discussions began in 1993 ... [Interjections.] ... on creating a mechanism to consolidate the many tripartite structures that had emerged after the formation of the National Economic Forum, and that ultimately gave rise to the National Economic Development and Labour Council, Nedlac. Unlike other models of social dialogue institutions around the world, Nedlac is the only known social and economic council that includes community-based organisations. Nedlac departs from the tripartite configuration known around the world in that it has a fourth chamber, and that is community participation.
True to the spirit of social dialogue as a means to an end, the National Economic Development and Labour Council Act was one of the first pieces of legislation that was passed by the government in 1994 and signed into law in December 1994. It is also important to note that the National Economic Development and Labour Council Act was passed unanimously in Parliament. Put differently, social dialogue was endorsed by all citizens in South Africa as the main ingredient of our society. [Interjections.]
Therefore, in terms of the budget of Nedlac, which we approve as the ANC ... [Interjections.]
Mr[nm65] T W MHLONGO: Hon Chair ... Hon Chair, would the member take a question?
Mr[nm66] H F NKOANA: No. [Laughter.] Some of the key highlights or major outputs of national significance to date include the Masakhane campaign agreements of the early 1990s, the repeal of the labour laws, the framework response to the global economic crisis in 2009, and the National Skills Authority which subsequently migrated to Higher Education and Training. We should also note that South Africa is the only country that brings in Nedlac ...
Ms M L DUNJWA:[nm67] Hon Chairperson, I just want to check if it is allowed for guests in the gallery to participate in the debate ... [Interjections.] ... in the form of laughing and clapping. [Interjections.]
Mr[nm68] H F NKOANA: South Africa is the only known country that brings in Nedlac social partners as part of the government delegation to the World Trade Organisation, for instance. Nedlac operates within an extremely dynamic ... [Interjections.] [Applause.] We support the budget. [Laughter.] [Applause.]
Ms[nm69] J L FUBBS: Hon Chairperson ... [Interjections.]
An HON MEMBER: Oh! Here we go. It is the hon Fubbs.
Ms[nm70] J L FUBBS: Chairperson, I rise on a point of order: I don't want the House to deteriorate into a market, and that is indeed from your side. I think we ought to remember that this is Parliament, the National Assembly. Let us not deteriorate this into a market. [Interjections.]
The[nm71] TEMPORARY CHAIRPERSON (Ms T C Memela): Thank you, hon member. You are aware that I have also asked the hon members on my left, you included, to behave. You included, hon member. You! Exactly, you, hon member! [Laughter.] Yes! [Interjections.]
Mr M BAGRAIM
Mr H F NKOANA
[nm72]
Mr[nm73] M BAGRAIM: Hon Chair, we have just had a history lesson, which I quite enjoyed. [Laughter.] I will be addressing you on the Occupational Health and Safety Act, the Commission for Conciliation, Mediation and Arbitration or the CCMA, and some of the glaring inefficiencies in our labour law.
Our President has called for job creation, the National Development Plan has called for job creation, and the DA has set their agenda for the Fifth Parliament as the jobs Parliament. Unfortunately, it has become patently clear - you just have to listen to what we are hearing from the ANC benches - that the ANC cannot create jobs, nor can our government.
In order to promote the right conditions for job creation, the DA would have to fight this battle on every front. It is incredibly difficult today to start a small business, and the ANC is insistent on passing more and more onerous legislation, coupled with horrific regulations. The DA has supported the National Development Plan and so has our President. However, it is clear that the ANC supports the National Development Plan in word only. The ANC has reduced this to becoming a lapdog to the unfortunate demands of the large trade unions that are skilfully destroying the South African economy. The unemployed don't even feature in our future. The ranks of the unemployed are merely growing in leaps and bounds.
Even the CCMA has said that it has become a largely toothless body in the face of politically tinged union militancy. Nerine Kahn, the director of the CCMA, said that in other countries they allowed agencies such as hers to force parties to stop striking for a period to allow for mediation. She categorically said, "We do not have that right."
Even our immigration law has created an impossible situation. The labour laws deem an immigrant without a work permit to be an employee and this immigrant has rights in terms of the Labour Relations Act. However, the Immigration Act makes it a criminal offence to employ an illegal foreigner. Section 49 makes it punishable by a fine or imprisonment of up to a year to do so. There is no end to the ANC's inconsistency.
The Compensation Fund is a shining example of inefficiency and inability. Although the Department of Labour is trying to roll out an online claims management system, which hopefully will cater for electronic submission of medical reports and medical invoices, we have a history of destruction, both to those who have been injured on duty and to the medical profession.
Qualicare have conducted research through Drs Behrman and Lison, which is incredibly damning. I have found that payments to the medical profession were fairly good up until the mid-1990s but they fell completely apart in 2004. Medical professionals tried over the years to contact the Occupational Health and Safety Commissioner, but with no response. Doctors are writing off enormous sums of money with serious financial implications. One could say that the medical profession was almost brought to its knees because of the Occupational Health and Safety Act system.
The real problem arose when the medical profession did not take the risk any longer and tried their utmost to avoid seeing Workers Compensation Assistance, WCA, cases. The backlash left thousands of patients without medical help and hundreds of small businesses suffered, as they just never received payments that they had to make to their staff. Doctors have had to resort to using agencies to facilitate payments to them. Agencies charge plus-minus 15% of the claim value, and they also struggle to get the payments.
We have had reports from doctors who have accounts in the hundreds of thousands of rand that are 150 days old. In many instances, doctors will not see Occupational Health and Safety patients on credit anymore. An interesting report came from a doctor who waited over six years after the incident. No remittance statements from the Compensation Commissioner are ever received.
We need to hold the commissioner to account to sort out back pay within 60 days, and we call on the Minister to ensure that the new system works properly so that the public can rely on the system which is supposed to help them. We urge the Department of Labour to follow up immediately and to report back to this House - to Parliament - with a clean bill of health within 60 days.
The CCMA is an independent and autonomous organisation, established by the Labour Relations Act. It has been a resounding success. The past three financial years have witnessed an unbelievable increase in the workload. Our Parliament needs to give the CCMA help, encouragement and finance to ensure that it can exercise its mandate. It would be beneficial to both the business community and the complainants if the CCMA could be introduced to each complainant and could make an assessment in order to ascertain whether there is any voracity to the complaint or not. This superficial assessment could probably save both the trade unions and the business community many hours of aggravation and downtime when it is shown that there is no substance to a complaint.
My experience has been that almost 20% of the cases have no substance whatsoever. That being said, the CCMA has led to much enhanced labour peace and the international community has recognised the value of one of the world's leading dispute-resolution bodies.
The National Economic Development and Labour Council, to a large degree, has been extremely successful in the past. The ideals and reasons for the existence of Nedlac are sound. We are one of the few countries in the world that has had an institution such as Nedlac, and for that we can be thankful.
However, the latest experience has been disappointing, to say the least. Recommendations coming from Nedlac to the parliamentary portfolio committee have been ignored to a large degree. This has led to many stating that Nedlac is, in fact, a toy telephone. If a body set up by Parliament and structured with some of the best ...
The TEMPORARY CHAIRPERSON (Ms T C Memela): Hon member, your time has expired.
Mr M BAGRAIM: Thank you. [Applause.]
AZM MNGUNI/src(ch)
END OF TAKE
Ms F S LOLIWE
Mr M BAGRAIM
Ms[nm74] F S LOLIWE: Hon Chair, hon Minister, hon Deputy Minister, hon members, our distinguished guests, we stand here as the ANC to indicate that we support the Budget Vote. Hon Chair ...
IsiXhosa[nm75] :
... imvula inile kukhonya noomofu. Sinendoda efe ithwele umnqwazi eyiCope apha ethi uMzantsi Afrika ukwicandelo labagula kakhulu. [Intensive Care Unit, ICU.] Khaniye kwinkomfa, nibuye nize kuthi, nithi uMzantsi Afrika ukwicandelo labagula kakhulu.
English:
[nm76] It is the ANC that inherited a society that was underdeveloped by international standards and characterised by policy gaps. A social protection system did not exist and vulnerable groups faced poverty, ill health, disability, unemployment, injury on duty and all the other ills.
The social wage component contributes to social solidarity measures to protect workers and their families from facing catastrophic reversals in their wellbeing in the event of unemployment, sickness, disability, old age and death.
The ANC government adopted a comprehensive social security protection system following a commissioned report into comprehensive social security by the then Minister of Social Development. That commission recommended a range of measures that act as an underwriter for individuals in society who often bear the risk of failure.
Thank you, hon Minister, for going to all levels in your input. You have managed to reach even those who do not move; the ones that are static. And they are saying you are moving backwards because they are standing. They are stationary cars.
What is the constitutional responsibility of the ANC? We are saying South Africa's transition to democracy since 1994 has had major challenges. We had to integrate the ills and make sure that everybody was taken care of through the social wage and other issues.
This, in turn, led to the increased informalisation of work and economic activity. Whilst the country saw a successful political transition, unemployment and also some increased inequality were the order of the day. Broadly speaking, South Africa adopted a redistributive approach to labour market reform. This approach was a result of the notion of equality contained in our beloved Constitution.
We have mechanisms of improving the operational functioning of the Compensation Fund, an entity in the Department of Labour. The legislative mandate that informs our engagement is the amended Compensation for Occupational Injuries and Diseases Act, or Coida for those who might not know. Historically, the introduction of this Act was part of the rich influence of the ANC in its 1992 policy document called "Ready to Govern", and it looked at a number of social protection measures and compensation measures that needed to guide the labour market.
Even at this stage, the stakeholders who were invited to public hearings on the then Bill contested a number of issues all of which arose directly from their experience of working with the Act of 1993.
The impact of the changes to be managed in this structure is to decentralise the model of the Compensation for Occupational Injuries and Diseases Act. We have seen a slight improvement, but more can be done.
The Compensation Fund claims that settlement rates still remain too low, and the integration of compensation and health and safety across government has continued but there are areas that still need to be worked on. As the ANC, the key challenges that we see are at the level of administration. There are administrative interventions that are needed.
The upgrading of the Compensation Fund's financial system so as to improve both the claims settlement rate and the turnaround times should, equally, be assessed as must the progress on the registering of pharmacists, medical orthotists and also other practitioners.
We welcome the increased number of compensation claims that are finalised, but the ANC has, however, seen that there are areas where we have moved way beyond the legalities and the administrative process, which process needs to be polished.
The introduction of National Health Insurance, NHI, will fundamentally change the face of the private health sector. The necessary capacity-building in a terrain that is highly technical is a critical issue. This is an environment in which the wrong calculations could lead to someone who has already suffered physical injury suffering further financial loss.
We agree that the Compensation Fund should offer the best service to those injured at work, and that has to be done by ensuring that its financial viability is secured. Oversight of the organisational restructuring will be necessary to ensure that the ongoing amendments to the organisational systems and structures bring about the stated outcomes and intentions.
The fund must be seen against the background of the seven priorities of government. We know that, currently, the fund has diverse challenges. It has taken a diagnostic review, and it must deal with its recommendations. One of those is to ensure improved financial management of the fund. The fund has also identified legislation that needs to be amended in order to address issues of governance, the simplification of the dispute-resolution process, enforcement, difficulties in accessing medical treatment, work-related deaths for the purposes of beneficiaries, and, finally, the simplification of the collections' model.
There are those who say that the ANC cannot create jobs. But what about their history of creating jobs, 90% of which were for helpers in their homes whom they used to call "kitchen girls" and "garden boys"? [Interjections.] Was that work created then decent work? [Interjections.]
When it comes to the recycled DA – it has gone a long way before it became the DA - where were they when their fathers, who were champions of apartheid, were oppressing our people, and the black majority were not given decent jobs?
Ms[nm77] N W A MICHAEL: On a point of order, Madam Chair: It is unparliamentary for a member to stand up in this House and say that the fathers of the members of the DA were oppressors and champions of apartheid. They were, in fact, fighting apartheid together with members of the ANC, and I want the member to withdraw that statement please.
The[nm78] HOUSE CHAIRPERSON (Ms M G Boroto): Hon member, are you asking whether it is parliamentary or not?
Ms N W A MICHAEL: I am making a point of order and saying that it is unparliamentary and that she must withdraw.
The HOUSE CHAIRPERSON (Ms M G Boroto): I can't say that she must withdraw. I will investigate. [Interjections.] Thank you. I have now received advice: It is in order if you refer to a member and it is not unparliamentary if you refer ... [Interjections.] Okay, I will come back to that. Thank you. [Interjections.] I will come back to that. Thank you. Continue, hon member.
IsiXhosa:
Nk F S LOLIWE: Benize apha nilungise iintetho zenu, senide nixhaphe amagwebu ngempazamo yezigidi ezingama-62 nje, anazi na ukuba imfundo esayifumanayo yohlukile? Laa mzuzu nina nanifumana imfundo esulungekileyo thina sasifumana izijunqe ezisuka koko ningakufuniyo.
Kukho aba bathi njengokuba silapha singuKhongolose, bona bayinxalenye yabahluphekileyo.
English:
Are your designer shoes reflecting as such? There must be no confusion. You cannot wear an overall with designer shoes.
The HOUSE CHAIRPERSON (Ms M G Boroto): Hon member, your time has expired.
Ms F S LOLIWE: Thank you, Madam Chair. [Applause.]
LN//A N N(ed) NS - XHOSA
END OF TAKE[nm79]
The MINISTER OF LABOUR
Ms F S LOLIWE
IsiZulu:
UNGQONGQOSHE WEZABASEBENZI[nm80] : Sihlalo, ngibonga amalungu onke asekele Ivoti Lesabiwomali lezabaSebenzi, ngifisa futhi ukubonga abasebenzi boMnyango ngendlela abasebenza ngayo nangendlela abazimisele ngayo. Empeleni nje ukube bebengasebenzi ngabe amalungu ale Ndlu awazi ukuthi yiziphi izinto esizenzayo njengoMnyango. Ngiyafisa ukusho ukuthi kufuneka sazi sonke uma ngabe ufundisa abantu kukhona labo abathatha kancane abangezwa, abathatha iminyaka ukuba baqonde ukuthi empeleni ngabe uthini.
Kuyadabukisa ukulalela umhlonishwa u-Ollis no-Groenewald ekudala belapha ePhalamende kepha ufice ukuthi namanje abazi ukuthi uMnyango wenzani. Umhlonishwa u-Ollis uye ajabule uma eseGeneva eyingxenye yezithunywa eziyofundiswa ukuthi amazinga amiswa kanjani eMnyangweni wezabaSebenzi. Ngiyafisa ukusho kumhlonishwa u-Ollis ukuthi ngingabonga uma engacela uMvikeli woMphakathi, njengoba eshilo, ukuthi akaphenye ithenda eyanikezwa u-Siemens eyayibiza izigidigidi zamarandi eziyi-1,9 ngowezi-2002, aphenye ukuthi u-Mildred Oliphant wayekuphi ngoba ngangiyilungu lePhalamende elingenasikhundla kodwa-ke phela bona bakhulumela amaphephandaba, hhayi abantu baseNingizimu Afrika.
Okunye, engizokusho ukuthi Bab'uMncwango sivumelene siwuMnyango ukuthi ngaphansi koHlelo lweziNsiza zokuQashwa kwabaSebenzi sizoya ezindaweni zasemakhaya ikakhulukazi ukuyokhuluma namakhosi ngendaba yokuthi abantu abangasebenzi bangangena kanjani emikhakheni yokuqeqeshwa kanye nokunye. Umhlonishwa iNkosi uHolomisa uzosihola kulowo mkhakha.
Ngifisa ukusho kumhlonishwa uMoteka ukuthi lokho akushilo yingoba esafika, akazi ukuthi ngabe luqhutshwa kanjani uhlelo lwesabiwomali, sikhona-ke siyatholakala ukuba simlekelela. Ngizocela uMnu u-Groenewald noMoteka ukuthi bafunde ...
English:
... you said I must learn to count. But you must learn to read the legislation of this country, particularly the Labour Relations Act and the Basic Conditions of the Employment Act. You would then be able to understand the critical issues that empower workers.
Those pieces of legislation have been discussed at the National Economic Development and Labour Council and they have been agreed to by employers, that is business, and by workers and nongovernmental organisations, NGOs. The question that I may ask in future, though not now because I don't have the time, is: Who are you representing? This is because business has agreed to these laws; NGOs have agreed to these laws; and the federations - the Federation of Unions of SA, Fedusa, the Congress of SA Trade Unions, Cosatu, and the National Council of Trade Unions, Nactu - have agreed to these laws. Not only Cosatu has agreed – we are not working with only one federation. It is unfortunate that Cosatu is part of the alliance, but that is why it is able to guide some of the other federations. [Interjections.]
In terms of the UIF contributions, we are not going to reduce them. That money is for the workers and the employers that are contributing.
On the other hand, you are saying we must create jobs. That is why organised labour and business have agreed that we have to invest 10% for job creation. That is what we are doing. You are therefore contradicting yourself on these issues.
We are available to continue explaining to you, hon members, how we work as the department. I do understand that the majority of members are new, but learn faster so that at the end of the day all of us are on board. [Interjections.] It is unfortunate that you are just making a noise instead of listening to what I'm saying.
Hon House Chair, our officials are available to continue supporting members – those that want to learn about the role of the Department of Labour. Thank you very much. [Applause.]
RESPONSES TO POINT OF ORDER, AND REGARDING INTERPRETING SERVICE
The[nm81] HOUSE CHAIRPERSON (Ms M G Boroto): Order! Before closing, I have to respond to two things. Firstly, there is the point of order that was raised, before the hon Minister spoke. I must say that I didn't hear it well. When I said that I would investigate, I meant that I would listen to it, forgetting that this is an Extended Public Committee and I can't postpone the ruling.
Now, members, with reference to what was said about fathers of members, that might be considered very unparliamentary, if not viewed within the context of the history of the member. For now, I just want to caution hon members that we must consider how we express ourselves. Thank you very much. As I can't listen to the Hansard and find out exactly what the problem was, I am not going to ask the member to withdraw. Thank you. [Interjections.] I have cautioned the member. Is that a point of order?
Mr[nm82] C MACKENZIE: It is, Ma'am. It is. You know, in our culture we honour our ancestors, especially those that have passed on. My father fought the Nazis, Madam Chair, and to have my father insulted by the hon member really galls me.
The[nm83] HOUSE CHAIRPERSON (Ms M G Boroto): Hon member, I said that I have cautioned everybody in that as we speak here we must be considerate. Thank you. [Interjections.]
Hon members, regarding the second issue: the interpretation service, as I promised, the service staff have come back to me with a broader explanation. I will just read it: The translation facilities in this Chamber are temporary. Five booths have been installed in the gallery area, and each booth accommodates two translators from two different language groups. There are three EPCs taking place concurrently. This means that to accommodate all languages, three translators per language have to be deployed.
The technical staff have advised as follows: Since there are no translation facilities in the Old Assembly Chamber, the system that being used has to be patched through to the parliamentary translation system before the translation can go through the listening device.
Further, if an attempt were to be made to do simultaneous translating under these circumstances, the system would be overloaded and there would be interference in the translation channels because two translators are accommodated in one booth. Under these circumstances, the translations of 10 languages are made into English only.
This means that, if a member speaks in any language other than English, there will be translations into English to avoid interference. Hon Groenewald, I also want to listen in my own language, but cannot because we are have a temporary area from which we are operating. Please understand. Thank you.
Afrikaans[nm84]
Dr[nm85] P J GROENEWALD: Agb Voorsitter, kan ek u toespreek op die aangeleentheid? Dis nie aanvaarbaar nie. Ons sit in 'n moderne eeu. Dit is 2014, nie 1914 nie. Ek aanvaar nie die verskoning nie. As u sê daar is vyf plekke waar vertolking gedoen kan word en daar kan minstens twee wees, praat ons al klaar van 10 tale. Ek wil dan sê dat hierdie saak verder opgeneem word. Dit is al die hoeveelste sitting van hierdie Parlement en steeds sukkel ons met daardie tegnologie. Dit is onaanvaarbaar en ek wil dit op rekord plaas. As dit dan die geval is, moet ons sê dat die drie tale wat die meeste in Suid-Afrika gepraat word, naamlik IsiZulu, IsiXhosa en Afrikaans, dan vertolk moet word en nie Engels nie.
English:
The[nm86] HOUSE CHAIRPERSON (Ms M G Boroto): Thank you, hon Groenewald. I understand you very well. This issue can be taken up further outside this sitting. Thank you very much.
Debate concluded[nm87] .
The Committee rose at 19:05[nm88] .
GG-ZLU//LIM CHECKED//EKS/\\\tfm///
END OF TAKE[nm89]
[nm1][[xxx Jul 15 16:37:02 2014]]
[nm2][[xxx Jul 15 16:37:56 2014]]
[nm3][[xxx Jul 15 16:59:03 2014]]
[ns4][[xxx Jul 15 16:59:16 2014]]
[nm5][[xxx Jul 15 16:59:09 2014]]
[nm6][[xxx Jul 15 16:59:22 2014]]
[nm7][[xxx Jul 15 17:04:09 2014]]
[nm8][[xxx Jul 15 17:04:53 2014]]
[nm9][[xxx Jul 15 17:05:07 2014]]
[nm10][[xxx Jul 15 17:05:30 2014]]
[nm11][[xxx Jul 15 17:06:00 2014]]
[nm12][[xxx Jul 15 17:06:00 2014]]
[nm13][[xxx Jul 15 17:06:04 2014]]
[nm14][[xxx Jul 15 17:08:49 2014]]
[nm15][[xxx Jul 15 17:09:25 2014]]
[nm16][[xxx Jul 15 17:10:24 2014]]
[nm17][[xxx Jul 15 17:10:54 2014]]
[nm18][[xxx Jul 15 17:11:09 2014]]
[nm19][[xxx Jul 15 17:11:30 2014]]
[nm20][[xxx Jul 15 17:12:35 2014]]
[nm21][[xxx Jul 15 17:13:44 2014]]
[nm22][[xxx Jul 15 17:14:08 2014]]
[nm23][[xxx Jul 15 17:17:03 2014]]
[nm24][[xxx Jul 15 17:17:07 2014]]
[tz25]Remember we don't start a sentence with an acronym
[tz26]Starting with an abbreviation - remember
[tz27]See uniformity guide
[nm28][[xxx Jul 15 17:24:52 2014]]
[nm29][[xxx Jul 15 17:25:05 2014]]
[nm30][[xxx Jul 15 17:25:12 2014]]
[nm31][[xxx Jul 15 17:29:06 2014]]
[nm32][[xxx Jul 15 17:29:23 2014]]
[nm33][[xxx Jul 15 17:29:23 2014]]
[nm34][[xxx Jul 15 17:34:28 2014]]
[nm35][[xxx Jul 15 17:34:48 2014]]
[nm36]Do not use American English
[nm37]hyphen
[nm38]hyphen
[nm39]Do not break paragraph
[nm40]plural
[nm41]Don't use American English
[nm42]Do not use abbreviations at the start of a sentence.
[nm43]space
[nm44][[xxx Jul 15 17:50:00 2014]]
[nm45][[xxx Jul 15 17:50:06 2014]]
[nm46][[xxx Jul 15 17:59:58 2014]]
[nm47][[xxx Jul 15 18:00:00 2014]]
[nm48][[xxx Jul 15 18:03:11 2014]]
[nm49][[xxx Jul 15 18:03:11 2014]]
[nm50][[xxx Jul 15 18:07:40 2014]]
[nm51][[xxx Jul 15 18:08:03 2014]]
[nm52][[xxx Jul 15 18:08:13 2014]]
[nm53][[xxx Jul 15 18:12:35 2014]]
[nm54][[xxx Jul 15 18:12:46 2014]]
[nm55][[xxx Jul 15 18:12:46 2014]]
[nm56][[xxx Jul 15 18:13:23 2014]]
[nm57][[xxx Jul 15 18:12:46 2014]]
[nm58][[xxx Jul 15 18:14:05 2014]]
[nm59][[xxx Jul 15 18:14:46 2014]]
[nm60][[xxx Jul 15 18:17:14 2014]]
[nm61][[xxx Jul 15 18:17:29 2014]]
[nm62][[xxx Jul 15 18:22:15 2014]]
[nm63][[xxx Jul 15 18:25:32 2014]]
[nm64][[xxx Jul 15 18:25:35 2014]]
[nm65][[xxx Jul 15 18:32:58 2014]]
[nm66][[xxx Jul 15 18:33:07 2014]]
[nm67][[xxx Jul 15 18:33:50 2014]]
[nm68][[xxx Jul 15 18:33:54 2014]]
[nm69][[xxx Jul 15 18:34:41 2014]]
[nm70][[xxx Jul 15 18:34:41 2014]]
[nm71][[xxx Jul 15 18:35:28 2014]]
[nm72][[xxx Jul 15 18:35:28 2014]]
[nm73][[xxx Jul 15 18:35:57 2014]]
[nm74][[xxx Jul 15 18:42:08 2014]]
[nm75][[xxx Jul 15 18:42:51 2014]]
[nm76][[xxx Jul 15 18:43:02 2014]]
[nm77][[xxx Jul 15 18:52:13 2014]]
[nm78][[xxx Jul 15 18:52:41 2014]]
[nm79][[xxx Jul 15 18:54:36 2014]]
[nm80][[xxx Jul 15 18:54:44 2014]]
[nm81][[xxx Jul 15 18:59:56 2014]]
[nm82][[xxx Jul 15 19:01:49 2014]]
[nm83][[xxx Jul 15 19:01:56 2014]]
[nm84][[xxx Jul 15 19:03:58 2014]]
[nm85][[xxx Jul 15 19:03:56 2014]]
[nm86][[xxx Jul 15 19:04:36 2014]]
[nm87][[xxx Jul 15 19:05:33 2014]]
[nm88][[xxx Jul 15 19:05:56 2014]]
[nm89][[xxx Jul 15 19:06:03 2014]]
Audio
No related
Documents
No related documents