Hansard: NA: Mini-plenary 5

House: National Assembly

Date of Meeting: 24 May 2022

Summary

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Minutes

UNREVISED HANSARD
MINI PLENARY - NATIONAL ASSEMBLY
TUESDAY, 24 MAY 2022
VOTE NO 31 – EMPLOYMENT AND LABOUR
Watch: Mini-Plenary 

PROCEEDINGS OF THE MINI-PLENARY SESSION OF THE NATIONAL ASSEMBLY
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Members of the mini-plenary session met on the virtual platform at 16:30.
The Deputy Speaker took the Chair and requested members to observe a moment of silence for prayer or meditation.

ANNOUNCEMENT

The DEPUTY SPEAKER: Hon members, before we proceed, I would like to remind you that the virtual mini-plenary is deemed to be in the precinct of Parliament and constitutes a meeting of the National Assembly for debating purposes only. In addition to the Rules of the virtual sittings, the Rules of the
National Assembly including the Rules of the debate apply. Members enjoy the same powers and privileges that apply in a sitting of the National Assembly. Members should equally note that anything said in the virtual platform is deemed to have been said to the House and may be Ruled upon.All members who have locked in, shall be considered to be present and are requested to mute their microphones and only unmute when recognised to speak. This is because the
microphones are very sensitive and will pick up noise which might disturb the attention of other members. When recognised to speak, please, unmute your microphone and connect your video. Members may make use of the icons on the bar at the bottom of their screens which has an option that allows the member to put up his or her hand to raise points of order. The Secretariat will assist in alerting the Chairperson the members requesting to speak.

When using the virtual system, members are urged to refrain or desist from unnecessary points of order or interjections. We shall now proceed to the order which is; Debate on Budget Vote No.31: Employment and Labour, Appropriation Bill. I now recognise the hon Minister, Thulasi Nxesi.
Sesotho: Ntate, bua le rona.

APPROPRIATION BILL
Debate On Budget Vote No 31: Employment and Labour:

The MINISTER OF EMPLOMENT AND LABOUR: Thank you very much, hon Deputy Speaker; members of this House; Cabinet Ministers; Deputy Ministers present; particularly the Deputy Minister of Employment and Labor; the hon Chair; members of the portfolio committee; the director-general; senior management of the department and its entities; invited guests; ladies and gentleman. I want to begin, hon Deputy Speaker by flagging a South African achievement, a successful fifth global conference for the Elimination of Child Labour held in Durban last week. A success in the face of adversity. It is only weeks after the devastating floods in KwaZulu-Natal. We deliberated hard on whether we should even continue with the event. But no, we concluded that what the province needed now was to restore its economy and bringing 3 000 conference delegates to the province would contribute to the tourism and hospitality sector, with thousands more viewing on the virtual platform and able to see what South Africa can offer. Of course, it was important that we continue to provide this important platform to bring together social partners and civil society from all over the world to engage and share information and best practice for the purpose of eliminating child labour by 2025, in line with the sustainable goals set by the United Nations.

So, our thanks to the team at the Department of Employment and Labour, the officials of the International Labour Organisation and the support from across government, from the Presidency to the national departments to the premier of the province to the municipality and all participating stakeholders. This is another reminder that when we practice joint up government, good things happen. With the Budget Vote, strategically, the department seeks to leverage its existing programs to intensify its employment mandate whilst continuing to play a regulatory role in the labor market promote safe and decent work and provide social protection to the workers. The approach underpins our efforts to reconfigure the department to strengthen their employment on mandate. Thesetasks are made all the more difficult by the unprecedented

 
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levels of unemployment currently standing at 35,3%. The
factors behind this are well known. The economy was already
sluggish before the pandemic reflecting structural weaknesses,
the lockdown to curb the spread of the COVID-19 came at the
heavy price, a 7% fall in economic activities and shedding up
of up to 2 million jobs. As the economic activity started to
recover last year, we were hit by the July riots, further
destroying jobs and livelihood. Again, most recently, KwaZulu-
Natal faces the most devastating floods which destroyed the
lives, infrastructure and jobs. Internationally, trends have
generally not assisted with the exception of the rise in the
commodity prices.
Under the current circumstances of high unemployment, the
state has to intervene. Hence, the number of interventions
that we’ve made, including the presidential employment
stimulus, that has already benefited some 800 000 South
Africans and the youth in particular. In the recent years, the
department has received a favorable unqualified report from
the Office of the Auditor-General, AG, SA. In respect of the
2021-22 audit, that is currently underway, it is envisaged
that once again an unqualified audit opinion would be
received. The same applies for the Commission for

 
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Conciliation, Mediation and Arbitration, CCMA, and
Productivity SA. We also anticipate improved findings for the
two funds.
Plans are being implemented to fundamentally review the
organisational architecture, the systems and processes of the
two funds. This will not happen, of course, overnight and
there are no shortcuts. Forensic auditors have been engaged to
address the widespread fraud and corruption which occurred in
the funds. The benefits, in the case of the Unemployment
Insurance Fund, UIF, COVID-19 test program are already being
felt with the return of nearly a R1 billion, in irregular and
illegal payments.
The audit action plans were implemented to address the areas
identified by the Office of the Auditor-General, AG. The
Unemployment Insurance Fund, UIF, has already moved from a
disclaimer to a qualified audit, a small gain achieved in the
face of massively increased claims for unemployment and relief
benefits. We can agree that the key to improve performance is
strengthening good governance, fighting fraud and corruption.
Let us remind ourselves that the pandemic is still with us and
we are now into the 5th wave. In 2020, we announced the

 
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addition of 500 Occupational Health and safety, OHS,
inspectors and their work is yielding results. In 1920, there
were 28 000 Occupational Health and safety inspectors. In
2021, this jumped to 62 000 inspections conducted by quarter
three. Like the department’s 126 labour centers, as the
Occupational Health and Safety, inspectors have a national
footprint across every province.
Last year, there were 36 000 compliant and 26 000 noncompliant
employers. The most common forms of noncompliance relate to
the general safety regulations, COVID-19 directions, hazardous
chemical substances, environmental regulations for workplaces,
electrical installation regulations and facilities
regulations. To deal with these challenges, the branch has
established pedestal roving team and develop the national
megablitz inspection plans to cover the backlog in the
priority areas. In an effort to ramp up our inspections, the
inspectors will visit 839 000 workplaces over the next five
years, enhancing Social Security for workers is one of our
priorities.
The compensation fund implemented the new claims management
system and results include an improvement in the adjudication

 
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of claims. As of 31 December 2021, a total of over 90 000
claims were received, of which 79% were adjudicated within 30
working days of the project or of receipt. Now, I want to
strongly flag these, Deputy Speaker, when the compensation
fund seeks to strengthen an efficient online system to manage
verified claim that brings the fund into conflict with vested
interest. The third party middle man and the industry that
grew up exactly, because of the past inefficiencies of the
fund. If the fund successfully reforms itself, the reason for
their existence falls away. Perhaps, that’s why their
supporters or their shop steward in Parliament are so vocal
because they want us to keep the middle person.
The fund continues to ensure that medical service providers
are paid. Of the 533 claims received as at 31 December 2021,
87% were finalised within 30 working days’ of receipt. Some
8 000 request for preauthorisation of specialised medical
interventions were received during this period and 97% was
finalised within 10 working days or receipt. So, the fund paid
a total of R3,3 billion towards the benefit of which 93% was
paid within five working days. I believe that the members of
the portfolio committee witnessed the smooth processing of
claims for both the funds on their oversight visit to the

 
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Eastern Cape. When the commissioner tries to stamp out bad
practice and demands accurate and verified documents before
paying out the claims, I believe he deserves your support.
The compensation fund continues with the rehabilitation
program which includes provision of assistive devices. Persons
with disabilities are enrolled in vocational rehabilitation
programs through the post school education and training
institutions and they are fully funded. Return to work
programs also ensure that those who are injured in the
workplace are reintegrated into the labour market. The
Unemployment Insurance Fund, UIF, played a significant role
during the lockdown period. In a drive to cushion workers and
businesses, over R64 billion has been spent by the
Unemployment Insurance Fund towards the COVID-19 tax benefits,
helping sustain economic activity across every province and
community.
In response to the July riots, Temporary Employer Employee
Relief Scheme, Ters, funded another program. Workers affected
by the unrest, and that we call it, Wabu, to date 4 000
employees were paid the relief at the expenditure of about

 
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R14 million. More workers affected by unrest, Wabu, payments
will be made upon completion of the due diligence process. In
response to the jobs crisis, the Unemployment Insurance Fund
has created and saved jobs through investment with Investment
Development Co-operation, IDC, to the tune of R5 billion over
five years. The Investment Development Co-operation through
the Unemployment Insurance Fund, has currently approved 41
qualifying transactions totaling to R2,3 billion, of which
R150 million was for the companies in distress and relating to
job preservation.
So, the transactions supported the Small, Medium and Micro
Enterprises, SMMEs, black industrialists, women-owned
companies and startups. Through the Unemployment Insurance
Fund Labor Activation Program, which we call, Lap, the
department contributes to training of unemployed as part of
the government initiative to stimulate the creation of jobs in
the labour market. For the year 2022-23 financial year, the
Unemployment Insurance Fund’s Labor Activation Program has set
aside a budget of R3,1 billion to fund the training of the
unemployed, the normal Temporary Employer Employee Relief
Scheme and the business turnaround and normal re-engineering.

 
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Labor Activation Programs facilitate the training of recruits,
the creation and the sustaining of the jobs.
Through the training of the unemployed program the fund
implements projects with implementing partners with employment
guarantees at the end of the term of the project. To this end,
the KwaZulu-Natal Department of education, for instance, has
already absorbed over 14 000 participants from one of the
projects funded through the Labor Activation Program. The
Temporary Employer Employee Relief Scheme, provides support to
distressed companies that seek to retain their employees.
under the scheme, the Unemployment Insurance Fund funds 75% of
the employee basic salary up to the maximum amount of R17 000
per month for a maximum period of 12 months. So, the business
turnaround and the recovery program is funded by the
Unemployment Insurance Fund to provide support enterprises
facing economic distress and initiatives aimed at preventing
job losses.
Deputy Speaker, of importance is that the Labor Activation
Program has taken a strategic direction that training of the
unemployed should be demand-led and lead to employment at the
end of the training period. So, the employers and the partners

 
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who participate in the program commit to ensuring that the
learners will be absorbed. In the Medium-Term Expenditure
Framework, MTEF, period, the Labor Activation Program has
planned for 75 000 participants in the program that enhance
their employability. The Unemployment Insurance Fund will
continue to pursue the government’s drive to pay suppliers
within 30 calendar days. As at the end of the quarter three of
2021-22, the fund has paid 98% of its received invoices within
30 calendar days. The fund will seek to achieve 100% in the
2022-23 financial year.
To look at the policy and the legislation to promote equity
and equality in the workplace, Parliament on 29 November 2021
ratified the International Labour Organization Convention 190,
concerning the elimination of violence and harassment in the
workplace. In order to fulfill the international applications
that emanate from this, the department developed in
consultation with the social partners, a code of good practice
on the prevention and elimination of harassment in the
workplace. Released from 18 March 2022, these guidelines
provide a comprehensive set of practical proposals, including
step-by-step guidance on adoption of Convention 190, and the

 
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necessary supporting processes and structures to ensure
enforcement.
Over the last year, the department has extended 26 collective
agreements to nonparties. This is critical in fighting
persisted poverty and inequality experienced by so many of our
working people and for achieving the principles of decent work
in our labour market. The Minimum Wage Act was assented was
assented to in November 2018, setting a historic precedence in
the protection of the low earning vulnerable workers in South
Africa and provided a platform for reducing inequality and the
huge disparities in income in the labour market. The 6,9%
adjustment of the National Minimum Wage increased rates from
R21,69 to R23,19 per hour, effective from 01 March 2022
applicable to all sectors including farming and domestic
workers. This increase will benefit about 892 000 domestic
workers, who are overwhelmingly women and 800 000 farmworkers.
Contrary to the oppositions believe that the introduction of
the minimum wage would have a negative impact on employment
levels, findings indicate that there is no major negative
impact on the employment as a result of the National Minimum
Wage.

 
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The department’s Public Employment Services branch, which
drives the implementation of the labour market policies
including the provision of the free career counseling, jobs
facing retraining and upskilling, strives to create an
enabling environment for employment. At an operational level,
the Department of Employment and Labour continues to provide
support to many desperate works seekers for the period April
2021 to 28 February 2022, 839 000 work seekers were enrolled
by the department on its employment services of South Africa,
the employment services of South Africa, ESSA, system.
About 257 000 work seekers were provided with employment
counseling services by the department’s employment counselors
while 124 000 job opportunities were conversed with their
employers and 59 000 unemployed work seekers were placed in
the employment opportunities. It is important that this
service be utilised across the economy and across the public
sector. So, the department also actively participates in the
digital pathway network management system, which as January 22
offered 674 000 job opportunities. Over the two phases of the
presidential youth employment stimulus, 596 000 appointments
of school assistants have been married, making this the single

 
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largest youth employment program in the country, supporting
the aims of the presidential youth employment intervention.
The department will also extend training projects aimed at
creating jobs, particularly, for the youth in the fiber
optics, food handling and mixed farming sectors. So, the
projects are undertaken through the Unemployment Insurance
Fund program. We will also establish 10 specialised youth
centers over the coming two years in addition to our 126
labour centers. Part-time centers, mobile centers and
departmental buses expand the physical reach of employment
services to more remote areas. During the 2021-22, a total of
991 workers with disabilities and 48 administrative staff were
subsidised. A total of R20,9 million was paid to these workers
as at the end of the quarter four of 2022 to support this
employment program.
The Commission for the Conciliation, Mediation and
Arbitration, the CCMA, section 189(a) processes for the period
01 April 2021 to 31 December 2021, resulted in 44% of jobs
being saved, that’s 14 000 jobs of those employees stretching
with retrenchment. The Employment Equity Amendment Bill has
now been passed by Parliament and is intended to expedite the

 
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pace of transformation in the labor market and ensure that
those noncompliant organisations that resist transformation do
not continue to financially benefit from the state contracts
or doing business with any organ of the state. Parliament has
also finalised compensation for the occupational industries
and the diseases, that’s by the Amendment Bill.
The other pieces of legislation for legislators’ consideration
include the Occupational Health and Safety Amendment Bill,
OHS, and the Employment Services Amendment Bill. The draft
national labor migration policy has been released for comment.
In addition, the department is conducting a national roadshow
to engage stakeholders in the workforce. The policy seeks to
balance the constitutional rights of all to labor protection,
the expectation of South Africans to excess with our
international obligations and treaties and the needs of the
economy for scares skills. So the department has also led the
process of developing the SA National Employment Policy in
collaboration with the International Labour Organisation and
leading local experts. Following a rigorous situational
analysis, the first wrap of the policy has been completed for
consultation with the social partners.

 
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Finally, let me thank the Deputy Minister, the staff of the
department, the commissioners and the executives of the
entities led by the director-general, DG, for their commitment
and hard work in achieving targets and continuing to provide
services in the difficult conditions. Hon Deputy Speaker, I
hereby Table the budget of the Department of Employment and
Labour for 2022-23 financially, an amount just short of
R6 billion. I thank you.
Mr M NONTSELE: Thank you, Deputy Speaker. May I request that I
close my video because of network challenges?
The DEPUTY SPEAKER: It’s okay, Sir. Go ahead.
Mr M NONTSELE: Deputy Speaker, Minister, Deputy Minister,
Chairperson of the Portfolio Committee on Employment and
Labour, Ministers and Deputy Ministers, hon members and fellow
compatriots, good afternoon. This presentation is dedicated to
the memory of the late Palestinian journalist, Shireen Abu
Akleh, an Al Jazeera journalist killed by the apartheid
Zionists Israeli regime in cold blood in Jenin whilst on duty.
It also includes our own patriots, who continues to be victims
of gender-based violence and femicide. The names of Hilary

 
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Gardee and Namhla Mthwa are included. May their souls rest in
peace.
House Chairperson, the ANC supports Budget Vote 31. The period
leading to this important day is characterised by a number of
important events that have in many ways shaped our thoughts
towards the realisation of the goals we hereby affirm and
pronounce on as part of our firm support of Budget Vote 31.
This includes - but not limited to - the state of the nation
address, the Budget Policy Statement and Employment and Labour
Portfolio Committee Report. We also draw inspiration from the
seminar documents of our revolutionary movement, the ANC and
the South African Constitution - the principle guide to
matters of government’s economic dispensation and our daily
lives.
It is now just days since we have successfully hosted the 5th
Global Conference on the Elimination of Child Labour. That has
been ably led by our government through the Department of
Employment and Labour, as a lead department and the
Elimination of Child Labour, ILO. We thus say the validity of
our argument with regard to how labour market legislation must
be shaped and remains an inspiration to the global community.
It is in this backdrop that it must be evaluated than the near

 
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liberal school of fraud as passed by the opposition parties.
Their continued absence in this important platform signifies
in difference, not only to rights guaranteed by our
Constitution, rather to their ability to share and test their
views on a global state.
His Excellency, President Matamela Ramaphosa, during the state
of the nation address, noted and affirmed the commitment of
the ANC-led government to respond to the unemployment crisis
that has galvanized our country when he said:
There is agreement among a broad and diverse range of
South Africans that fundamental reforms are needed to
revive economic growth.
The key challenges around unemployment, poverty and inequality
provide fertile grounds for all manners of challenges,
including unabated child labour. Today as a country, we have
seen unemployment rate increase by a record of 35,3% in the
4th of 2021. This being an increase from a previous high of
34,9% in the 3rd quarter that is of the same year. It is also
important to note that in the same period, there has been a

 
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market increase in employment of about 540 000. This being in
response to the seasonal increase in the demand for labour.
An increase in labour force is a positive development in the
labour market. Similarly, it is also important to note that
during the same period, we have seen the drastic decline of
the numbers of those discarded work seekers by almost 56 000.
This therefore saw the decline marginally of the expanded
unemployment rate by 0,4% to 46,2%. We also need to take into
account that we have to respond and content with the adverse
conditions imposed by the onset of the COVID-19 pandemic, and
hard lockdown at the time, which was necessary. This being the
consequence wherein we have lost about 2 million jobs. As a
result, one of the important task that the democratic state
has undertaken has been to tackle the Economic Reconstruction
and Recovery Plan during the previous year, as a direct
response to this mammoth challenge.
It is in this context that the assertions made by His
Excellency, the President, during the state of the nation
address when calling for a new consensus:

 
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This should be consensus which embraces our shared
responsibility to one another and acknowledges that we
are all in this together.
The Medium-Term Expenditure Framework, MTEF budget projection
indicated an increase in government spending at an average of
3,2% from R2,8trillion in 2021-22 to R2,2 trillion in 2024-25
financial years. Most ... [Inaudible.] ... is directed to the
social wage which includes health, education, housing, social
protection employment programmes and local amenities. This
provides necessary stimulus to create more jobs and by
extension limit the negative impact of the current economic
conditions. Linked to this, an amount of R18,4 billion
allocated to support youth employment and the creation of
short time jobs.
As the Portfolio Committee on Employment and Labour, we have
received the strategic plan of the department that is for 2020
to 2025. The Annual Performance Plan for 2022-23 financial
year and the budget review of the department and its entities.
It is based on the presentation made to the Portfolio
Committee on Employment and Labour on the 16, 23 and 30 March
2022. That the committee made the following observations and

 
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recommendations: That the Department of Employment and
Labour’s budget increase from R3,8 billion in 2021 to
R3,95 billion in 2022-23 financial year. It is also worth
noting the decline of budget for public employment services
that has decreased it terms of economic classification. That
is in real terms, the budget of the cost of employees
decreased from R1,43 billion in 2021-22 to R1,430 billion to
2023-24.
The budget for compensation of employees constitutes 36% of
the total budget for the department, while goods and services
budget constitutes 18% of the total budget. The committee
notes with disappointment that some entities of the department
such as supported employee employment enterprise continue to
struggle to be financially stable. The entity which is home to
South Africans living with disabilities, needs support from
government departments to at least spend 10% of their budget
spend to support these entities to survive.
Today as a country, we have been confronted by prolonged
strikes in some sectors are a product of ravages occasioned by
the triple character of the South African struggle of race,
class and gender. This particularly so in the mining sector

 
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through migrant labour system where people have been made to
sweat for peanuts, while bosses live large on profit made
through their blood and sweat. The upset payment of
R300 million to the CEO of Sibanye-Stillwater. Yet, the same
company is refusing to settle the strike for the demand of
R1000 increase per month per worker, is a situation that
cannot be left unchallenged.
This situation is made more acute by the budget cuts from the
critical instrument at the hands of our social partners, that
is the Commission for Conciliation, Mediation and Arbitration,
CCMA. The CCMA is being paralysed by budget cuts. The CCMA as
an instrument available to the social partner that is capable
of working beyond the point of call and resolving labour
disputes must be allocated sufficient resources.
The reprivatisation from those ... [Inaudible.] ... centres
are deemed incapable to spend so that the critical
institutions such as CCMA are placed on a sound financial
footing. The benefits derived from this are immeasurable in
terms of labour peace. As the portfolio committee, we have
just recently concluded an oversight visit to labour centres
in the Eastern Cape. We have acquainted ourselves with the

 
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real challenges those are facing, and this includes being able
to establish facts from fiction with regard to the operations
of the Unemployment Insurance Fund, UIF. As we will be tabling
that report soon, we don’t want to be pre-empted by going over
the edge with regard to the challenges faced by the UIF until
we have presented the report to this House.
Our recommendation will - in our view - not just temper with
the current challenges faced by the UIF. Rather, we will
hopefully provide a lasting solution. We remain indebted to
this entity in terms of its meaningful interventions made
during the ... [Inaudible.] ... of the COVID-19 pandemic. The
role and support rolled remains immeasurable in insulating
most vulnerable sectors from the ravages of the pandemic.
Hon Minister, as the portfolio committee, we will continue to
conduct our vigorous oversight on the compensation fund
because at the end of the day those poor audit outcomes of
that particular entity must come a thing of the past. The team
that is there at compensation fund now, which is working on
their financial books, when it completes its work, perhaps
before it even finishes, good results must reflect in front of
our eyes. All entities must manage finances effectively and

 
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efficiently, and must be able to account for each and every
cent. Deputy Speaker, the ANC support Budget Vote 31. Thank
you very much.
Dr M J CARDO: Hon Deputy Speaker, unemployment should be South
Africa’s top policy priority. Instead, the ANC is focused on
erecting flags and building graveyards for its struggle
heroes. The more squalid its current rule becomes, the more
the ANC tries to make something sacred of its past. However,
symbols don’t create jobs. Living in the past doesn’t create
jobs. Flags and graves will not stop President Ramaphosa from
being hounded out of May Day rallies by his own alliance
partners.
The fact is that unemployment in this country is a plague – a
rapidly growing pandemic. However, rather than administering
the right medicine, the ANC behaves like a medieval quack.
Government fuels the contagion.
The numbers are well-known. There are almost 12 million South
Africans without a job. We have the highest unemployment rate
in the world: 46,2% if you include people who have given up
looking for work, and almost 70% among the youth. The

 
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government incubates the virus. In ANC-run provinces and
municipalities, service delivery has been gutted. The
environment is rotten and putrid and unconducive to job
creation.
No water, no lights, and sometimes no passable roads – all of
this deters investment, strangles growth and kills jobs. It
frightens away businesses, or forces them to close down, and
starves communities of jobs.
The collapse of the state has been caused by the ANC’s
criminality, corruption and incompetence. State failure breeds
poverty and joblessness. It spawns crime and allows social
ills to fester.
The main reason South Africans don not have jobs is because
the ANC has failed to make this country a viable place in
which to operate a business and employ people. Nationally, the
government’s policy choices have been a disaster – from the
crony enrichment scheme of Black Economic Empowerment, through
repeated threats to property rights, to the way money is
poured into state-owned sinkholes like South African Airways.

 
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And now we have the Employment Equity Amendment Bill on the
President’s desk – a job-destroying jackhammer which allows
the Minister of Employment and Labour to set racial targets
for national economic sectors. It is another nail in the
coffin of private enterprise.
The private sector in South Africa is shackled by the State,
stifled by a plethora of policies, laws, and regulations that
choke job creation and drive up unemployment. Irrationally,
our labour legislation provides for the automatic extension of
collective bargaining agreements to small businesses. This
could be undone at the stroke of a pen, and it would free up
small enterprises and incentivise them to create jobs. Yet the
Minister of Employment and Labour is not interested.
Through its acts, actions and inaction, the ANC has made South
Africa an increasingly uninvestable destination. The party is
not fit to run a modern, industrial economy. Meanwhile, the
Department of Employment and Labour is not working.
Over the past six months the Unemployment Insurance Fund, UIF,
has been paying out more in claims than it has been receiving
in contributions. The UIF is becoming financially

 
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unsustainable. And those who are lucky enough to be paid out
often have to wait long, gruelling periods before pay day.
For years, the Compensation Fund has been a financial and
administrative quagmire. It is still is. Yet the Minister
comes here today and tries to downplay the disaster. He is
trying to pull the wool over our eyes. And now he wants to
sever the only link in the chain that works. He wants to cut
out third-party administrators blaming them for everything
under the sun, while he covers up the funds incompetence. This
move will backfire.
Productivity SA has not produced the goods in making South
Africa more productive. Our productivity growth and overall
competitiveness consistently languish at the bottom of
international rankings.
As for the National Economic Development and Labour, Nedlac,
nearly half its budget is spent on salaries, but what has this
talk shop achieved for the unemployed? The Nedlac is a cosy
tea party for big business and organised labour; the jobless
do not feature on its radar. We hear endlessly about social
compacts and accords, but the unemployed are accorded nothing.

 
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Their interests have been crumpled and compacted into
smithereens, vanishing into thin air – unseen, unheard,
uncared for.
Just about the only departmental entity that provides bang for
its buck is the Commission for Conciliation, Mediation and
Arbitration. However, its revenues have been macheted just as
workers are being retrenched hand over fist.
The Department of Employment and Labour’s budget amounts to
almost R4 billion, but it does nothing to oil the wheels of
job creation in the private sector.
In 2022-23, the department’s Programme 4: Labour Policy and
Industrial Relations will be allocated almost R1,3 billion or
one-third of the budget. We should be channelling those funds
into an overhaul of labour market policy to stimulate
employment creation, instead of blaming foreign nationals for
the death of jobs.
Only the private sector can create jobs at scale and rapidly
absorb predominantly low skilled workers into the economy.
This means we need to unleash the private sector.

 
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We must scrap the extension of collective bargaining council
agreements to those who did not sign them in the first place.
We must make it easier for firms to hire workers and to tackle
youth unemployment with a real Youth Wage Subsidy.
We must empower individual economic sectors to set their own
minimum wages, and offer tax exemptions to small businesses to
help them absorb the cost of minimum wages. If the ruling
party is serious about the private sector creating jobs – as
President Ramaphosa assured us in his state of the nation
address – then it will wholeheartedly endorse these measures
that the DA has outlined today. The time to act is now, before
the plague of unemployment demolishes the foundations of our
social order. Thank you, Deputy Speaker.
Ms C N MKONTHO: Hon Deputy Speaker, thanks very much for the
opportunity. The EFF rejects the proposed Budget Vote of the
Department of Employment and Labour. We also reject the
committee’s report.
Hon Deputy Speaker, perhaps we can all agree to change the
name of this department, from employment and labour to

 
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unemployment and labour. For this is what the department and
the incompetent Cabinet of Mr Cyril Ramaphosa has become.
There are more that 11 million people who are willing, capable
and ready to work. Some are even tired of looking and given
up. According to official definition the unemployment rate is
35,3%, the highest since Statistics SA began conducting
Quarterly Labour Force Surveys.
Even when we have reached crises levels, Minister Thulas Nxesi
and his department and the entities are continuing to operate
as if it is business as usual. Instead of being at the
forefront advocating for nationalisation of strategic sectors
of the economy, building state and capacity delivery of free
education, health, houses and sanitation, and massive
protected industrial development to create millions of
sustainable jobs, it is not clear what the Minister is saying.
It is not clear what his department is doing to create jobs.
Al we are told is that the department’s five-year target is to
monitor and report on the target of creating 275 000 jobs a
year, when the number of unemployed of people is more than
11 million in this country.

 
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We know that the noise about the labour migration is driven by
the state of our African brothers and sisters. There are no
people from Malawi, Zimbabwe, Mozambique, Lesotho and other
African countries who are taking jobs from South Africans.
These people do not employ themselves. They get employed and
are exploited because this department is failing to employ
enough labour inspectors. It is not practical for just under
2 000 labour inspectors to travel all nine provinces and visit
all employers. We must employ additional labour inspectors. We
must start by filling the 166 vacancies within three months.
We must never allow a position of a labour inspector to be
vacant for more than a month when there are unemployed and
qualified labour inspectors.
However, the reality is that the economy is failing to create
jobs. There is no migration labour policy that is resolving
the crises of unemployment in this country. To focus on
regulation of employment of foreign nationals is backward. We
know that this is targeting our African brothers and sisters.
The obsession with the World Competitive Index for an economy
that exports raw material and imports finished goods is

 
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misguided. Unless we begin to beneficiate mineral resources
and manufacture finished goods, any form of competitiveness is
misguided.
Productivity SA must begin to focus on supporting local
industries to demonstrate the benefit of competitiveness that
creates jobs instead of low taxes for big companies.
The majority of Commission for Conciliation, Mediation and
Arbitration, CCMA, offices are in major towns and big cities.
However, workers are exploited and unfairly dismissed,
everywhere mostly on farms and in rural areas. The CCMA must
bring back the model of part time commissioners and use
rigorous appointment processes to ensure that appointed part
time commissioners do not collude with employers.
The Compensation Fund continues to fail despite multiple
turnaround strategies. Money is stolen, payments are made
without a paper trail and no one is held accountable,
especially the commissioner. He feels and he is allowed to
implement countless and meaningless strategies. If the
Compensation Fund was working properly, medical service
providers were not to rely on administrators and prefunders.

 
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The solution to the Compensation Fund challenges is to place
the fund under administration and clean it up from scratch.
Hon Deputy Speaker, believe you me, the Minister will ever in
any of his speech put Compensation Fund and audit outcomes in
one sentence. The Unemployment Insurance Fund, UIF, has
completely collapsed, basic systems are not working. Public
servants and companies that receive the money fraudulently are
not arrested. The UIF monies are invested in suspicious
companies and the money is lost without any accountability.
We want to commend the EFF labour desk for the good work they
are doing. If it is being not for the EFF labour desk, we know
that some employers were just going to continue to exploit
workers. We want to tell the workers that the EFF offices are
always open. The EFF rejects this proposed Budget Vote, Deputy
Speaker. Thank you.
Mr S L NGCOBO: Thank you very much hon Deputy Speaker. The
grim reality of the national unemployment rate of 35,3% and
that, over 7,6 million South Africans are looking for work,
should be the driving force prompting government to take
urgent action to create job opportunities. We can no longer

 
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sit and listen to presentations from the department on means
and measures to stimulate employment opportunities and
investments, while we see very little of it in practice.
Our people are starving of hunger and has been abandoned by
the government, that continues to fail to deliver on its
constitutional mandate. We therefore need to scrutinise the
department’s performance and actively question whether it is
fulfilling its mandate.The department recently published a
Draft National Labour Migration Policy and Employment Services
Amendment Bill, amending the employment of the foreign
nationals for public comment. It becomes apparently clear on
consideration of the Labour Migration Policy, which is
described as the policy framework that will guide labour
migration impact on South Africa, how little effort has been
made since the dawn of the democracy to address the reality of
labour migration.
It is only now that the government has decided to actively
investigate this aspect, and to ensure a co-ordinated
government response to inform policy and prospective
legislation. The reality is that, there is a strong growing
sentiment that foreign nationals are being employed over and

 
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above South Africans, in jobs that do not demand critical or
scarce skills. The IFP has heard the cries of our young
people. We have listened to our youth who, despite matric
cannot find any work and do not have access to decent work.
There IFP in the past two years, has taken the lead and
prepared a Private Members Bill proposing to amend the
Employment Services Act of 2014, to regulate the recruitment
of foreign nationals in certain economic sectors, and the
strengthening understand from this current regulatory
framework regarding the recruitment of such nationals.
The IFP, however, strongly opposes xenophobia and we do not
propose as the government does the introduction of quotas,
which we believe is not only unconstitutional but also
dangerous, as it might ignite further xenophobia. We believe
in the introduction of flexible informed numerical targets,
which are must be adhered to by employers in the certain
sectors, to ensure that South Africans are prioritized. Above
all, it is critical that proper consultation is done with all
relevant stakeholders to ensure that, the introduction of such
numerical targets is a rationally justified and backed by
evidence,

 
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On further consideration of the department’s latest annual
performance plan and budget, the IFP strongly endorses the
portfolio committee’s recommendation, that plans to review the
organizational structure of the Unemployment Insurance Fund
must urgently be attended to in order to improve its
efficiency. The backlog at the fund and the slow progress in
assessing claims has been shocking. The fund has been plagued
by irregular wasteful expenditure as pointed out by the
Auditor-General. The IFP will carefully monitor progress
reports on the organizational structuring of the fund which
serves a critical purpose. The IFP accepts the Budget Vote.
Thank you very much Chair.
Mr W W WESSELS: Hon Deputy Speaker, the Minister tries to
sketch a very pretty picture of achievements, plans and
programmes that will enhance the lives of workers in South
Africa. But what is a worker without work? The mandate of this
department is not only the protection of employees, but also
stimulating job creation. The Minister can say whatever he
wants, but the proof lies in the facts, the statistics like
the official unemployment rate. This is the only testimonial
that can be taken seriously. This clearly shows that this
department and government is failing.

 
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The department should maintain a healthy balance between
ensuring that employees’ rights are protected, and that they
are not exploited. On the other hand, playing a pivotal role
to ensure a conducive environment for the private sector to
create much needed job opportunities. This cannot be done
whilst in particular, this department’s attitude towards
private business is hostile. The unemployment crisis will not
be addressed whilst there is this hostility, and whilst
government makes it increasingly more difficult to do
business, invest and expand.
How ironic that this department government as a whole and in
particular the ruling party, creates the impression that they
are good proud socialists, who always act in the interest of
the working class and the work protecting them against the
evil awful capitalist businesses, whilst they are the ones who
fail workers the most. When the ANC fail fails to pay the
employees, where is the department and its labour inspectors?
When ANC-run municipalities failed to pay third party payments
as deducted from employees’ salaries, where is this
department?

 
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Currently, 62 employees of the Mafube Local Municipality are
entitled to retire but they can’t, as their pension deductions
were never paid over to the pension fund. This municipality
owes the pension fund R173 million. Where are you Minister?
Why so silent on the statutory transgressions of ANC-run
municipalities and departments? But when there is just a
rumour of an allegation or a transgression of labour
legislation by a big business or by a farmer, the department
is all the sudden vocal. Why these double standards? Why this
inconsistent behaviour?
Workers wait for years and years on end to be paid the
Unemployment Insurance Fund, UIF or Compensation Fund
benefits, because of the incompetency of this department and
its entities. Is this because of the big bad employers or the
failures of this so called caring government? It is very clear
that the Minister is not himself dependent on these entities,
because if he was, he would know that the statistics he is fed
is wrong, or he would know that he is talking nonsense when he
says 87% of the Compensation Fund claims have been paid within
40 days. That is untrue, UIF funds are stolen and defrauded by
fraudulent Public Investment Corporation, PIC. Where is the
accountability? There is none.

 
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When the department or an entity like the Compensation Fund is
indeed held accountable, then the department does everything
to avoid such accountability. Part of the problem is the ANC
members of this Portfolio Committee on Labour. Because you see
hon Deputy Speaker, it seems these members as mistaking their
oversight role with that of a ... [Inaudible] ... role on
behalf of this department.
Hon Deputy Speaker, government cannot create jobs. All the
factors mentioned by the Minister are contributing, but it is
because of the ANC government and its policies. South Africans
deserve jobs, development and wealth creation. South Africans
deserve better than the ANC. I thank you.
The DEPUTY MINISTER OF EMPLOYMENT AND LABOUR: Hon Deputy
Speaker and members of this august House, Minister of
Employment ad Labour, Mr Nxesi, the Acting Chairperson and
members of the Portfolio Committee on Employment and Labour,
all Ministers and Deputy Ministers who are part of this debate
today, the director-general of the department, senior managers
of the Department of Employment and Labour and its entities,
invited guests, ladies and gentlemen, I greet you all. I bring
greetings from the Fifth Global Conference on the Elimination

 
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of Child Labour that took place in Durban on 15 to 20 May
2022.
A successful conference we were proud to host as the
Department of Employment and Labour supported by national
departments with the assistance of the International Labour
Organisation, ILO, officials, gave us a clear message that
South Africa must take the lead in the total realisation of
the elimination of child labour by 2025.
Allow me with reference to the input of the Minister, to put a
few points into perspective. I think we must also indicate
that populism is redefining the politics, but we all know that
when the cameras switch off, the real politics set in. So, we
will lose nothing if we always humble ourselves.
So, first and foremost, I must indicate that this Budget Vote
is a product of a thoroughly consulted process guided by the
National Treasury and aims to respond to the Sona commitments
and the NDP vision 2030. This Budget Vote is tabled against
the highly cost contained restrictions, due to the very low
revenue base from our battling economy.

 
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Secondly, that this Budget Vote is also a direct response to
the Performance Agreement signed with His Excellency, hon
President Cyril Ramaphosa.
Thirdly, this Budget Vote demonstrate advances that we are
taking in ensuring what hon Nonsele spoke about, which relates
to the instructions that are given to us by the Constitution.
Of course, this is collaborative effort, hence the Minister
spoke about the pathway network management system. So, this is
a collaborate effort.
So, I noted earlier on, the views of some hon members,
especially those who oppose the tabling and adoption of this
budget. We note your descent to this Budget Vote, hon members.
Opposing this budget vote is the same as opposing service
delivery and also demonstrates a disregard for those who
cannot afford to feed their families but rely on state
interventions and policy statements such as this Budget Vote.
It is through the Budget Votes that it is possible for us to
be on this virtual platform, which is not for free. The same
Budget Votes make it possible for members to hold the
executive to account and it is the same Budget Votes that make

 
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it possible for the department to comply with parliamentary
prescripts and eases the burden of poverty from our people and
delivers services at the doorsteps of communities and
strengthens oversight.
I must say, opposing this Budget Vote means a big “No” to all
these important functions of our parliamentary work. I think
in the future it must be clear that members who don’t support
the Budget Votes should not benefit from what they didn’t
support.
The District Development Model, DDM, and the outreach programs
have resulted into a lot of impactful interventions for our
people. The 126 labour centres, which remain our
infrastructure for collaborations at the doorsteps of
communities have remodelled the DDM towards perfection. When
the time is right, with thorough consultations, we will start
the process to pursue the 24-hour shift operation functions in
the labour centres, and this will include rendering services
on Saturdays. This will be carefully consulted, I repeat, this
will be carefully consulted upon and when the time is right,
we will rollout 24-hour services at our labour centres.

 
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I also think when the time is right, we need to showcase and
demonstrate our achievements and say nothing at all and leave
those who speak, but do nothing for our people to continue
talking.
We will parade our achievements, the payments of claims,
registration of work seekers and the jobs that we have created
through these interventions for everyone to start appreciating
our one-plan approach and the collaborative efforts with other
departments, the districts and the local municipalities in the
delivery of services.
This will give a clear distinction between those who are
grandstanding for votes and those who seek proximity to our
people by doing nothing at all, and those who do the hard
work, but never seek for attention.
It is common knowledge that South Africa has a very stubborn
unemployment. It is this structural unemployment that is
linked to a system that was well designed to disempower the
majority in this country who remain the disenfranchised. We
need a structural response to this phenomenon and this can
never be an overnight success.

 
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Let me further elaborate on the point made by the Minister
earlier. The UIF, through its Labour Activation Programmes has
set aside R551 million for these three projects for 19 921
beneficiaries – 70% of which are former UIF contributors who
lost their jobs – to undergo training in the following skills:
14 771 beneficiaries as chief food handlers; 5 000 ... [Time
expired.] As the Department of Employment and Labour, we
encourage our members to support this Budget Vote, but also to
note that the Employment Equity Bill is also on its way. Thank
you.
Mr V ZUNGULA: Minister, given the record-high unemployment in
South Africa, this department should be renamed the department
of unemployment. You have dismally failed to influence the
corporate and public sector to be labour absorbing. We note
the various international treaties that you need to observe,
but those treaties are meant to supplement and support our
national obligations, not undermine them.
The ATM is not getting the impression that you are loyal and
faithful to the people of South Africa. As the core of your
work, you must place South Africa at the centre of your
thinking.

 
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Minister, the laws of this country compel you to drive the
prioritisation of South Africans, so that they can be active
participants in the economy of our country. You cannot
misunderstand the role of international treaties, when our
country has a 46% unemployment rate and for young people, it
is more than 65%.
Minister, affirm the dignity of South Africans in the only
country where they can be first beneficiaries of job
opportunities. The failures of this department to ensure that
the labour market operates within the law, only creates
tension and conflict with the people. These failures benefit
capital who get cheap labour and the exploitation of migrants.
Capital pays undocumented migrants slave wages, pays them with
food and alcohol and there are other human rights abuses done
by capital on undocumented migrants.
The tension and conflict for scares resources, exploitation
and human rights abuses are enabled by this department, as it
lacks the political will to enforce the existing labour laws.

 
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There was conflict in Robertson. Only then did the department
appeared to be doing something. The are many other areas where
the conflict is likely to occur, yet, the department is not
being proactive.
Finally, Minister, the ATM is advising you to urgently embark
on professionalising your inspectors to be sector-fit and
proper. Inspectors that work in the construction sector must
know something about civil engineering. Your inspectors should
be qualified to inspect if the electrical wiring in factories
is up to scratch to avoid the unnecessary burning of factories
that results in job losses.
If your department was serious about the laws under your
leadership, section 53(4) of the Employment Equity Act would
have been promulgated, so that there are consequences for
companies that are not complying with the pertinent provisions
of the Employment Equity Act. Minister, if you understood the
equity representation, as espoused in the Employment Equity
Act, there would be no need for Private Members’ Bill to
regulate the employment of non-South Africans. The Employment
Equity Act, as it currently stands, is more than enough to

 
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deal with the challenge of equitable representation of South
African workers. I thank you.
Mr B N HERRON: Thank you, Deputy Speaker, the CCMA has played
a fundamentally important role in the democratic era. It is a
vehicle that has given practical expression to the rights of
workers, who in the apartheid era had no rights and simply had
to do what they were told. Its establishment signalled the end
of hundreds of years of discriminatory labour practices built
on the bask up unfairness and injustices in which workers were
afforded no protection by the law. Amongst the CCMA’s greatest
strengths was its accessibility. People who felt hard done by
at work could walk in and receive professional assistance and
advice on lodging a claim against an employer. It wasn’t
perfect, but it was important because it brought some balance
to the skewed power relations in the workplace. It was the
champion of the rights of the underdogs so to speak that was
before COVID and economic crunch times. What’s been happening
over the past several years is like post offices, CCMA offices
appeared to become an endangered species.
Now, instead of workers being able to walk in and receive
assistance, most are expected to tackle the process online

 
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which assumes that the working class has access to computers,
smartphone and overpriced data which we know many don’t have
and implies a level of technical proficiency which we also
know most of us don’t have. The impact of all this is the
growing disconnect between the CCMA and the very people it was
formed to protect. People like Nomfundo Matheza someone who
approached us recently, a domestic worker whose recent attempt
to fight her unfair dismissal at the CCMA in Cape Town was met
with closed doors. Instead of receiving practical help she was
turned away and told she needs to fill in the form online in
English. What sense does it make, Deputy Speaker, in a country
that does not boast the highest level of literacy to expect
low-income earners to navigate complex, legal and procedural
terrain on their own and online.
The greatest beneficiaries of workers not having access to
procedural assistance are exploitative employers. Once again
in our country, it’s a case of why bother about breaking the
law if there is little chance that you’re going to be caught.
If we keep defunding the foundations in which millions of
South Africans depend to defend themselves economically, we
are perpetuating the cycle of poverty and deepening
inequality. Deputy Speaker, we must reinvest and reinvigorate

 
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and restore the CCMA urgently. There are thousands of people
out there like Nomfundo who depend on its protection. Thank
you.
Ms A S ZUMA: Thank you, Deputy Speaker, Ministers and Deputy
Ministers, hon members, chairperson of the committee, hon
Dunjwa, Chief Whip of the Majority Party, Pemmy Majodina, the
African Congress support Budget Vote 31.
IsiZulu:
Sekela Somlomo, indlu yegagu iyanetha. Ngifuna ukuqala
ngoMhlonishwa u-Wessels ukuthi ngaphambi ngowe-1994 babenzani,
le UIF akhuluma ngayo babefakela obaba bethu ezimvilophini o-
R2,50 engingakubiza ngokuthi opondo ababili nesihlanu. Imiholo
ababebanikeza yona babebanikeza amashumi amahlanu ngeviki
njengoba ethi uNgqongqoshe uThulas Nxesi yonke into
ayikhulumayo iyinonsensi(nonsense). Ngicabanga ukuthi
Umhlonishwa u-Wessels kwasayena naye le nto ayikhulumayo nayo
iyinonsensi (nonsense)ngoba obaba babo babekade bewoNgqongoshe
kodwa babe no-Std 6.
English:

 
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Whenever I travel around my constituency of uMsinga as a
mother and a grandmother, my heart bleeds when I see young
people standing around street corners, some of them begging
for loose change and others hustling for money for food or
possible alcohol and drugs. I see the loss of hope in these
children’s eyes. I ask myself what can I do to change their
lives so that they can celebrate youth month with more hope
for their future. At 77% youth unemployment is a national
disaster and I think it should be treated as such by all of us
like the deadly COVID-19 pandemic. Unemployment is not a
matter of political point scoring. It is an issue that I
believe must be treated as a national disaster in a similar
way we have dealt with COVID-19.
IsiZulu:
Dadewethu, lunga elihloniphekile Mkhonto kumele sibambisane.
Umsebenzi usafana nayo i-COVID-19 le ebikade ihlasele abantu
bakithi.
English:
I am making this call on behalf of my constituency and all
other regions in the country, including the DA-run City of
Cape Town where I have seen thousands of young people,

 
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Coloured, African, White and Indian every morning sleeping on
the sideways in the biting cold and rain of Western Cape
winter with no hope of getting a job in their lifetimes.
Without R350 social relief of distress grant which almost 10
million South Africans benefit from, the desperation would be
far worse.
IsiZulu:
Lungu elihloniphekile u-Cardo, Mhlonishwa wami, I-Cape Town
inobugebengu, indlala, i-whoonga, izidaka mizwa. Njengoba
ukhuluma nje uthi akukho okwenziwa uMnyango, sibuka i-Cape
Town ukuthi uphi uSodolobha wakhona. Nikuphi ukuze nilekelele,
nitakule labantu abalala emigwaqeni, abangadli lutho. Asikaze
sinibone niya kubona, nibabamba nibaxhawula nangezandla
nikhombisa ukubathanda kakhulu.
English:
The Department of Employment and Labour and its entities must
play a critical role in defining its expanded mandate of job
creation in a practical way. It must facilitate collaboration
efforts among government departments and social partners to
create jobs across all the sectors. All the entities that
report to Department of Employment and Labour are crucially

 
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drivers of labour-market transformation and job creation in
this country. In the portfolio committee, we are working flat
out to ensure that they indeed perform accordingly.
IsiZulu:
Mhlonishwa uZungula uma nikhuluma kwinkulumompendulwano nenza
sengathi abantu baseNingizimu Afrika niyabathanda, kodwa
asiniboni nikhona niza kumakomidi ePhalamende [portfolio
committee] ukuze le zinto eniziphakamisayo niziphakamise phela
sibone ukuthi abantu nibakhathalele.
English:
As a committee, we have recommended that support must be
mobilised for supporting employment enterprises, particularly
by the government department, SOE’s and provinces. If we agree
that youth unemployment is a national disaster, we must act in
a dynamic manner that improves efficiency and speed of
responding to challenges. At the same time government
strengthen its internal controls to prevent those who could
use the situation to embezzle funds.
We reiterate our call to the department to work with National
Treasury to ensure that ... must receive preferential

 
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procurement status from government departments and the state
organs. Our committee will be meeting with the finance
committee in order to take up this discussion with the
National Treasury. In addition, the public employment services
branch of the department should be restructured, repurposed
for job creation, including interdepartmental and private
sector activities.
If the light of populist mobilisation in subjecting foreign
nationals in particular, we call on the department’s
inspection and enforcement services to continue its mega
bleeds inspections targeting the hospitality and agriculture
sectors. The inspectorate must test compliance with on the
National Minimum Wage Act, NMWA, Occupational and Safety Act,
OSA, Basic Conditions of Employment Act,BCEA, Unemployment
Insurance Act and Compensation for Injuries and Diseases Act,
COIDA. This approach must also serve to advise, educate and
provide technical information and support to both workers and
employers about the service offered by the inspectorate.
The Department of Home Affairs and the SAPS must form part of
the inspection to ensure that as many companies as possible
are fully inspected for compliance with our national laws. The

 
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employers must be informed so that they prepare the necessary
documentation prior to the visits and that their books are in
order. At the beginning of this term of Parliament, the
Compensation Fund was struggling, but due to the efforts of
the Minister and the Deputy Minister, together with their
team, I do want to say without any fear or contradiction that
now there is a light at the end of the tunnel.
The Compensation Fund has ... encountered a number of
challenges one of them being inefficient IT systems. To
address this, the fund commissioned a new claims management
system called CompEasy since 2019. The fund started to realise
the benefits that came with the new system which includes
improved controls and efficient processing of claims. This
resulted in the reduction of long processes taken to
adjudicate claims and further address the issue of backlogs.
Presently the fund is also able to clear the high rate of
litigants and received over the years. For the financial year
2021, over 100 000 claims were registered, of which 79% were
adjudicated within 30 working days.
IsiZulu:

 
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Kade bematasatasa bebiza abantu bekhala ngezicelo [claims]
ngoba kungabangani babo. Sesiwuvalile ke umpompi
siyilelikomidi elinamalungu e-ANC.
English:
The ANC supports the recommendations of the committee of the
Compensation Fund. This includes ensuring speedy review of the
entity’s organisational structure so as to further improve its
efficiency. Deputy Speaker, we see others crack their skulls
and suck their thumbs trying to think what they should say to
rubbish the good work of the ANC government. On our side, we
are focused on sharing with fellow South Africans recorded
performance of hard work being done. If you go the
compensation fund, they will tell you and furnish you with
evidence of the return to work programme that ensures that
beneficiaries are reskilled through institutions of higher
learning to enable them to participate in the economy. They
will tell you and provide evidence of beneficiaries and their
dependants, including youth and persons with disability who
are assisted to study different trades that include farming,
jewellery etc.

 
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The National Economic Development and Labour Council, Nedlac,
has facilitated ongoing and intensive engagements to respond
to the COVID-19 pandemic through the work of its COVID-19
Rapid Response Task Team. The social partners have
participated in the vaccination rollout programme, made inputs
to ensure that economy could be opened safely, agreed with on
management on COVID-19 in the workplace and exercise oversight
over the provision of relief for workers and the unemployed.
In respect of Economic Recovery and Reconstruction Programme,
the social partners over the last year have collaborated to
advance the implementation of key structural reforms,
especially energy stability improving the movement of goods.
Nedlac is not only relevant in respect to co-ordinate the
response of social partners to key social economic issues. The
social partners also make inputs into key policy, legislation
and regulation. Nedlac, in fact co-ordinated the response of
the social partners to the public violence that broke out in
Gauteng and in my home province in KwaZulu-Natal in July 2021.
Social partners agreed on a comprehensive package of measures
and interventions to provide relief to those affected by the
violence. These measures were subsequently taken up by
government.

 
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IsiZulu:
Babekuphi? Asibabonanga beza emakhaya. Beza ngoba bafuna
ukukhankasa bafuna amavoti bekhohlisa abantu bakithi
abamnyama.
USEKELA SOMLOMO: Isikhathi sakho sesiphelile.
English:
Thank very much, hon member.
Mr A M SHAIK EMAM: Deputy Speaker, Chairperson, allow me
before I start, to extend condolences to the family and
friends and EFF, for the loss of their members including a
councillor who died in an accident in Mpumalanga, I am told,
early hours of today. Indeed, a great tragic situation.
Hon House Chairperson, the responsibility of this department
is twofold:1 To promote the interest of workers and labour;
and very importantly, to coordinate and ensure that job
creation is one of their responsibilities and tasks.
Now, my understanding is this that the Department of
Employment and Labour is not doing this. And let me tell you

 
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why. First of all, I raised the concern previously about
labour in the country, particularly the Chinese. Who without
any doubt in the length and breadth of South Africa, pay the
worker R60 a day and I see the Deputy Minister talking about
the minimum wage, R60 a day!
Now you tell me how would South African businesses compete
with their Chinese counterparts if the pay R60 a day while a
South African businesses had to pay a minimum wage of R4000 a
month? How is that possible, but the question is deeper than
that? Why despite raising a concern again and again. This
matter has not been raised.
Where are those inspectorates that have a responsibility of
visiting these businesses and they do that all the time? What
is it that getting back and they come into businesses and come
out from there and do very little or nothing about it. That’s
the question we need to ask. Why the department is doing
nothing about it and what is it that the inspectors are doing
... [Inaudible.]
South Africa has a very high unemployment rate; we cannot deny
that, but we have a massive shortage of plumbers,

 
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electricians, carpenters, shoemakers, welders. What is this
department doing to assist ... [Inaudible.] ... very little or
nothing is being by this particular department.
Let’s look at the issue of the Unemployment Insurance Fund,
UIF. The corruption, the time period that people have to wait,
to get their benefits which they have paid for years, more
often than not they don’t get on time. Some people actually
die waiting for the benefit from this particular department.
Very little or nothing has been done to improve this
situation.
And, I noticed many departments, like the Labour, Home Affairs
and many others continue to concern about the identity
documents, ID system which I am told is the responsibility of
State Information Technology Agency, SITA, don’t think it’s
time you realise that this not working, that you need to do
something different about it.
How much more must the South Africa labour force who have been
paying for so long go through, before you decide that you need
to pay them. But no you wouldn’t do that. Let me tell you that
many, many of the labourers on the ground that are employed.

 
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Do you what shocking condition some of them are employed
under, particularly in the farms? You have done very little or
nothing to go out there and inspect and look at the living
condition of this people on the farms. Why you not done
anything about it.
These are of the issues I think you need to raise. Eighty
percent of the youth in this country are unemployed and yet
your department does very little about ensuring that you put
in programmes and policies. Let give an ideal example. You
have state employees that are employed and hold two positions,
one as councillors and the other as teachers in a school, but
yet we such a high level of unemployment in this country. But,
you do absolutely nothing about it. How do you do justice,
being a councillor, which is like a full time position at
moment, if you can look what is required by the community, at
the same time you supposed to do justice a school. Where is
the department to discuss with Public Service Commission to
put policies in place so that more people can be employed,
rather have one having two jobs and 20 not having a job? Why
is the department not looking at this? So these are of things
I think the department needs to look at.

 
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Eleven million people of this country are currently unemployed
it’s getting worse by the day. We are sitting on a ticking
time bomb. Thank you very much House Chairperson.
The ACTING CHAIRPERSON (Ms R M M Lesoma): Thank you very much
hon member. I’ve just been checking on the platform; it seems
like hon Hendricks is not on the platform but for completeness
I recognise hon Hendricks, from Al Jama-ah. Yes, I am correct.
We shall proceed hon members, I recognise now hon Bagraim of
the DA. Over to you, sir.
Mr M BAGRAIM: House Chairperson, on behalf of the DA, I stand
here to express my absolute disgust. We have an unemployment
rate at almost 50%, youth at 80% and it’s growing. The Arab
Spring in 2011 was caused by an unemployment rate of 30%. The
Minister has the gaul to expect political parties to approve
and endorse a budget which is not working.
Every entity within the department has failed. Even the entity
that demonstrates excellence, the Commission for Conciliation,
Mediation and Arbitration, CCMA, has had its budget cut
destroying its efficacy. One could imagine that we are living
through “Alice through the Looking Glass”. “Don’t keep him

 
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waiting, child! Why, his time is worth a thousand pounds a
minute”. This is not our current Minister of Employment and
Labour but the guard on this fictional train trip.
The Minister expects an endorsement for a department that
presides over the second worst productivity in the world and
almost the highest unemployment in the world. This is the very
department that failed the workforce during COVID-19 and
largely refuses to help injured workers through the
Compensation Fund.
We are not living in Alice in Wonderland but South Africa in
2022. The government wants to blame the unemployment crisis
on foreign workers who make up less than 2% of the actual
workforce. Meanwhile we have almost twelve million unemployed
South Africans who are willing and able to join the job
market. Even the long-time trusted sweetheart trade union
movement Congress of South Africa Trade Unions, COSATU, have
at last found their members to have woken up and realised that
the ANC and President Ramaphosa are using them as voting
fodder. It is clear that the government is doing nothing for
the unemployed and it is becoming more and more obvious that
they are doing nothing for those who are currently in jobs.

 
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The workers of South Africa must know by now their numbers are
dwindling and with the current system under an ANC government
those jobs are being threatened. I appeal to the workers of
South Africa to have a careful look at their alliance partners
and see both the ANC and the Communist Party don’t even pay
their own direct workers. To the workers of South Africa; how
can you trust the ANC and their circumstances. Your members
have spoken out loud and clear this year in the May Day
celebrations.
It in fact turns out that May Day in South Africa in 2022 was
not a celebration but a declaration of a dead alliance. Every
year they applaud what they themselves have done and ask South
Africans to spend hard earned income on broken entities within
the Department Employment and Labour. It was Mark Twain who
said: “Get your facts first, then you can distort them as you
please”. The problem here is that the Minister hasn’t got the
facts but he is even distorting the Director General’s fantasy
of performance.
It is a crying shame to see that the unemployed of South
Africa have no voice at all. Government set up a talk shop,
the National Economic Development and Labour Council, Nedlac,

 
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which does not represent the twelve million unemployed hungry
people. We have been told time and time again that it is small
business that will be the engine room for job creation.
The ANC government refuses to deregulate small business an
uncouple them from the bargaining councils. Our previous
Minister of Finance, Mboweni, called for this uncoupling and
he was rudely condemned. It would have cost us nothing and
created a million jobs. Cosatu’s post May Day statement talks
of the growing frustration among workers in South Africa.
They are pushing for change.
The first step is to rid ourselves of the ANC government,
2,2 million workers lost their jobs in the last two years.
Even this fell on deaf ears in the ANC government. Cosatu
calls for a dismantling of the system of power and says, “If
workers sit down and do nothing, it will mean that they accept
the death sentence that is being handed to them by the
political and business power structure”.
I call on the workers of South Africa to join hands with the
DA and to talk to a political party that they can trust. Our
President a decade ago was a director of Lonman. We all

 
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recall the murder of 34 miners and the wounding of 78 workers.
This happened just after our President call the police to act
firmly against these dastardly criminal “trade unionists”.
Workers must also remember the three-year wage agreement
signed by the ANC government and the ANC Administration. After
honouring the first two years this cowardly government hid
behind a technical point to try and save them from the
embarrassment of an increase which they couldn’t afford. This
duplicitous behaviour become the hallmark of an ANC
government.
A DA government in 2024 will negotiate in good faith and will
create jobs. A DA government in the Western Province can point
to fair treatment, honest negotiation and job creation. I
thank you, House Chairperson.
The ACTING CHAIRPERSON (Ms R M M Lesoma): Thank you, hon
member. I now recognise hon Wolmarans of the ANC. While he
moving towards the platform, hon members you are courtesy urge
as much as possible that the background that you use should
reflect Parliament or a blank wall because you are deemed to

 
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be in Parliament and the decorum of the House must be
preserved. Over to you, hon Wolmarans of the ANC.
Mr M J WOLMARANS: Thank you hon Chair, hon Minister Nxesi, hon
Deputy Minister Moloi, chairperson of the portfolio committee,
Whip of the committee, committee members and hon members on
the platform, ladies and gentlemen good evening.
The ANC stands to support the budget vote 31 of the
department. Hon Chair, amongst its mandate, the Department of
Employment and Labour is also tasked with saving existing jobs
and creating new jobs through various programmes and its
entities.
Now hon Bagraim, some employers in South Africa exploiting the
lack of a clearly articulated policy framework in the
management of labour migration. This generates anger, creates
tension and causes conflict in many communities.
We are pleased that the department is developing a national
labour migration policy. We see this as an intervention to
address the inadequacy of the existing policy framework. This
policy aims to regulate the labour market and bring about

 
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stability to workplaces as well as the communities where
migrant workers are employed, where they do business and where
they live.
In some instances, communities decide to take it upon
themselves and deal with the situation and unfortunately not
in a manner that enhances social cohesion. We are looking
forward to the department’s conclusion of public consultation
that have been done throughout the country on this policy by
the end of this month and further consultations in Nedlec.
Hon Minister, it is important to set aside sufficient time and
resources for this purpose and process. The ANC would not want
to pay leap service to the consultation process. This process
needs genuine consultation and proper communication with all
stakeholders we think you would be in a position to manage.
Hon Chairperson, the CCMA, Commission for Conciliation,
Mediation and Arbitration, has been kept very busy as record
numbers of workers approached it over labour disputes amid
jobs [Inaudible.]. We welcome that the budget of the CCMA
increase by R56 million in the 2022/23 financial year.

 
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However, we are concerned that the budget is projected to
decrease to R1,060 billion in 2023/24.
We are also worried that the suspension of the utilisation of
part-time commissioners due to budget constraints has had an
impact on the capacity of the commission to deal with all the
referrals.
The budget vote 31 in spite of the fiscal constraints, the
CCMA was able to save 58 165 or 42% of the jobs of the 138 816
jobs that would have been lost due to the retrenchment and
challenges brought by Covid-19 last year.
It had 99,8% of the concealable cases within 30 days at first
event and 99,95% arbitration awards rendered were sent to
parties within 14 days. Now, that’s a little bit of efficacy
and capability that must also be commended.
The CCMA recorded its highest number in large scale
retrenchment of our section 89(a) referrals in our 2020/21
financial year which represents an increase of 54% from the
729 to 1124.

 
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Indeed, we accept the tremendous difficulties faced by many
companies during the various stages of national lockdown.
However, there is evidence that some trigger happy employers
tend to see retrenchment of workers as the option or first
resort rather than the last.
These are people who find refuge in the DA and FF Plus. The
proud political descendants of H.A Verwoerd and Eugene Terre
Blanche. We call on the DA and the FF Plus to persuade their
constituencies that keeping South African jobs is good for
social stability and we all benefit as a nation when people
have work.
Hon members, we heard from hon Wessels of the FF Plus that
there is a loud noise that comes the department when there’s a
transgression from the farmers. In essence he says the
department is on farmers’ side and the department cries the
loudest when there’s a transgression. I commend him for this
observation. However, it is also a true revelation of who he
is and what his party stands for. They are very loud in their
silence when the same transgressions are committed by both
farmers and big businesses.

 
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This happens to a lot of our defenceless workers and the
majority of which are black. We are happy that the CCMA will
continue to enhance its digital offering to ensure increased
accessibility and lessen the time and cost of travel for
vulnerable users in terms of travelling to the CCMA offices.
The CCMA will also pursue strategic partnerships with other
public entities and state organs to increase advocacy and
awareness as part of its social protection programmes. This
will also help in saving jobs. When it comes to retaining
jobs, all spheres of government have to work together with
workers, businesses and communities to resolve problems of
service delivery. We’ve heard the calls by the organised
working class to the government to focus on resolving the
challenges facing the local sphere of government.
If these are not dealt with, we face the risk of private
sector companies leaving certain regions thus deepening the
crisis of unemployment, underdevelopment particularly in the
more rural provinces.
Cosatu, the largest federation of workers in the country has
described the deteriorating state of basic services is the

 
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biggest threat in the jobs of millions of workers as a
possibility of companies closing down their operations and
relocating to better service sites growths.
Equally concerning are the energy infrastructure logistics and
transportation services provided by the state owned
enterprises such as Eskom, Transnet and Prasa. SOEs, state
owned enterprises, should therefore play a key role in saving
and creating jobs in mining, manufacturing and agricultural
sectors amongst others.
An efficient metro rail will enable workers to get to work
safely at an affordable price and on time and a strong
Transnet will assist to move coal efficiently to the coast to
meet the demand of our trading partners.
All our public and private financial resources must be
mobilised to stimulate economic growth and make our country
work. These efforts must include a massive buy local campaign
that includes government SOEs, business workers and consumers
and target locally produced goods. Pension and investment
funds must play their part in supporting investment in local
companies.

 
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The National Planning Commission’s report titled The Digital
Futures, South Africa’s digital readiness for the Fourth
Industrial Revolution as highlighted that there have been
institutional failures in the state when it comes to digital
transformation. There’s also has shortage of skills and fear
that new technologies will lead to loss of jobs and less
skilled workers.
These concerns must be addressed in social compact and just
transitions. The truth is that none of us can stop the wheel
of technology advancements. If we try to stop modernisation
the world will leave us behind and our economy will be less
competitive.
The float paid state of employees wellbeing barometer 2022
launched two weeks ago, measured and analysed the experience
of a sample South Africans working population. We show that in
South Africa, losses in productivity equated to 128 billion
days which accounted for R38 billion or around 2% of the GDP,
gross domestic product.

 
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Productivity South Africa must enhance its role of promoting
employment, growth and productivity and contribution to South
Africa’s socio economic development and competitiveness.
It is sad to know that our country was ranked position 62 out
of 63 countries in terms of World Competitiveness Index.
Productivity South Africa will help us drive the national
productivity strategy. As a country we need to promote a
culture of productivity in the workplace, maintain a database
of productivity, and competitiveness systems and publicise
such and undertake productivity related research.
The UIF, Unemployment Insurance Fund, had challenges and some
allegations. However, hon Mkhonto, it is not all doom and
gloom as the EFF would like us to believe. The UIF achieved
some unprecedented fits in our fight to save lives and
livelihoods during the world’s outbreak of Covid-19 pandemic.
We must praise the ingenuity of the UIF for finding innovative
ways to support millions of workers and hundreds of thousands
of companies in distress. However, we condemn those who abuse
this period to lie in the pockets with public funds.

 
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We congratulate the Hawks and other law enforcement agencies
for apprehending many suspects in recovering and returning
millions of stolen public funds to the state.
[Inaudible.] follow the money process which entails auditing
all Covid-19 payments has added the capacity of government and
must be replicated in other entities that award grants and
loans to companies.
We call on the department to get to the bottom of the
scandalous reports of UIF monies that have been lost owing to
questionable investments involving the PIC, Public Investment
Corporation in a number of companies.
Our interaction as the committee with the department shows
signs of this budget going a long way in executing the mandate
and mitigating the challenges in the department. For this
reason, the ANC supports this budget. I thank you.
The MINISTER OF EMPLOYMENT AND LABOUR: Chairperson, let me
thank the hon members for their contribution and also thank
others or some with their empty rhetoric; at least they’ve
said something.

 
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Hon Cardo, I must respond to this. The unemployment challenge
of our beloved country is linked to centuries of depravation
of the indigenous people. The reason why this unemployment
challenge is deep seated, systemic and structural, it is
because it was designed to be so by the erstwhile, brutal,
vicious, cruel white minority government. And, hon Cardo, this
unemployment that was created by that white racist government
ensured that those whose colour is black should never get
skills, they must never get trained and they must never be
developed, thy must never be empowered. The black majority in
this country were deprived a quality education. This is the
reason, hon Cardo, we have this unemployment rate, which keeps
on rising. And the politics of the DA which brand the words
like equality and transformation does not assist the country
to move away from what that white racist government created.
And there was a stage, hon Cardo, that as a country we were
second to Brazil, in terms of inequality, but now we are
leading in that particular respect.
Let me also say this, the government through the President has
presented an Economic Reconstruction and Recovery Plan with a
number of pillars: energy, security, industrialization and
localization, employment stimulus, infrastructure development,

 
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macro-economic intervention, the green economy, agriculture
and land reform, tourism and so on. Instead of critiquing the
plan and strengthen it by showing the gaps and weaknesses, and
monitor that it’s being implemented, you come with all these
empty accusations. Jobs will come from this particular plan. I
think you need to understand that very well; by a
collaboration of the different departments, different spheres
of government and also the private sector. I think you need to
understand that.
Let me also say this, on an issue which has been raised by hon
Comrade Nontsele. Just about Sibanye, where there’s a big
strike as we speak, and give some perspective that this is the
time of the year when, typically, across many sectors, wage
negotiations take place and some of them lead to strikes. But
one positive thing that South African has, a robust collective
bargaining, which in the majority of the cases heads to
settlements of the disputes. The issue here is extraordinary
length of the strike and intransigents of the parties. They
need to agree on a process of facilitation to find reasonable
common ground. This is a process issue which can be addressed;
and when we have to intervene as government and department in
particular, we will do so. Clearly, this needs to be addressed

 
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before the situation degenerates further. It does not seem to
be just about money. If Sibanye can afford, and you are right
hon Nontsele, to pay the chief executive officer, CEO,
R300 million at a time like this, what is difficult to pay the
workers a thousand rand, which does not collectively come to
that R300 million? These are the inequalities and the wage gap
we’ve talking about. I’m just listing ... what a contradiction
from calling for the workers, from hon Bergman, to work with
the DA, when they fundamentally are anti-trade unionism. Even
what they were saying here today, they are anti-trade
unionism. So, there are deeper issues involved here, the
historical legacy of massive in equality, which still makes us
as one of the most unequal countries in the world. There are
few places in the world where the wage gap between the CEO and
the worker is as vast as South Africa. This is part of the
apartheid legacy and clearly continues to haunt us. The
products of apartheid today, product of apartheid privilege
like hon Wessels and hon Cardo are trying by all means to
defend the apartheid inherited privileges. Turkeys ...
[Inaudible.] did not vote for Christmas.
On the issue of deregulation. Responsible employers realize
that regulating the labour market is beneficial to all

 
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concerned, in terms of health and safety, basic labour right,
decent working conditions and wages, and the provision of the
social protection through the Unemployment Insurance Fund,
UIF, and all those. So, responsible employers’ relations to
stabilize the labour market.
The National Economic Development and Labour Council, Nedlac,
processes have produced results in this particular country.
The legislation which we are having has been produced by those
Nedlac processes. I don’t understand the people who all of a
sudden now are saying we don’t need the Nedlac. So, the DA
does not agree. Seemingly it longs for the past conditions,
the slave labour, the starvation wages and workers stripped of
their basic labour rights, that is not going to happen,
certainly not under the ANC.
I don’t want to even say anything about what the hon member
from the EFF was saying, because they continue to flip-flop
from this position to the other. They went to inspect for the
foreign workers and when they came back they changed their
positions. I don’t even want to say because there’s nothing
they’ve ever supported. Thank you very much.

 
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Ms H O MKHALIPHI: Minister, stop saying those things because
they are not true.
The ACTING CHAIRPERON (Ms R M M Lesoma): Hon Mkhaliphi, order!
Ms H O MKHALIPHI: [Inaudible.] ... EFF labour desk, we are
fighting.
The ACTING CHAIRPERON (Ms R M M Lesoma): Hon Mkhaliphi,
please. Order, hon members!
Debate concluded.
The mini-plenary rose at 18:23.

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