Labour | PMG

2012-11-30

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Reply received: November 2012

QUESTION 2888

2888. Mr AP van der Westhuizen (DA) to ask the Minister of Labour:

(1) With reference to the 2011/2012 Auditor General findings regarding the department, how many employees have since then (i) applied for and (ii) obtained permission to perform remunerative work outside their employment with the Department.

(2) Whether any of these staff members engaged in 'outside work before applying for performing to undertake work outside of their employment with the department; if not, what is the position in this regard; if so what are the details of the disciplinary processes undertaken, including the sanction imposed? NW3564E

The Minister of Labour replied:

(1) For the financial year 2011/2012 91 officials applied and obtained permission. From 01 April 2012 to date 40 officials applied and obtained permission

(2) In cases where officials were engaged in outside work before applying for performing to undertake work outside of their employment with the Department they have been charged and issued with final written warnings. Any payments received by such officials have been raised as debts and the Department is recovering such payments in terms of section 31(1)(a)(i) of the Public Service Act of 1994 that deals with unauthorised remuneration.

Reply received: November 2012

QUESTION 2831

2831. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) How many persons have been employed in each labour sector for which ministerial sectoral determinations have been made (a) in the (i) 2008-09, (ii) 2009-10, (iii) 2010-11 and (iv) 2011-12 financial years and (b) since 1 April 2012;

Minister of Labour replied:

The table below reflects the number of employees employed as per each sectoral determination as from 2008 to date,

S D Number	Sectoral Determinations	Number of employees covered and years from 2008 to date
S D Number	Sectoral Determinations	(i)2008 - 2009	(ii)2009 - 2010	(iii)2010 - 2011	(iv)2011 - 2012
1.	Contract Cleaning Sector	72 000	100 000	100 000	100 000 to 120 000
2.	Civil Engineering Sector	105 000	130 000	100 000	70 000 to 90 000
6.	Private Security Sector	339 108	375 315	391 035	411 109
7.	Domestic Workers Sector	952 000	875 000	876 000	913 000
8.	Farm worker Sector	796 806	781 806	627 000	610 000
9.	Wholesale and Retail Sector	802 242	850 000	910 000	945 000
11.	Taxi Sector	121 224	106 314	129 173	117 708
12.	Forestry Sector	66 000	65 000	66 260	66 000
13.	Hospitality Sector	445 000	600 000	620 000	610 000

(2) how many applications for exemptions from the stipulations of these determinations have been (a) received, (b) granted and (c) partially granted (i) in the (aa) 2010-11 and (bb) 2011-12 financial years and (ii) since 1 April 2012?

Minister of Labour replied:

The following reflects the number of applications received and granted as from 2010 until 2012. No applications were partially granted as applications are either granted or refused. Most of the applications processed were in relation to overtime hours and few on the exemption from minimum wages.

(aa) 2010-11

(a) 67 applications were received,

(b) 43 were granted; and

(bb) 2011-12

(a) 66 applications were received,

(b) 31 were granted; and

(ii) Since 1 April 2012

(a) 39 applications were received,

(b) 15 were granted; and

The total number of applications received, granted and refused over the period (i) (aa) 2010-11 and (bb) 2011-12 financial years and (ii) since 1 April 2012 is as follows:

(a) 172 applications were received,

(b) 89 were granted and

Reply received: October 2012

QUESTION 2712

2712. Mr ND du Toit (DA) to ask the Minister of Labour:

(1) Whether her department has awarded any contracts to Kopano Ke Matla Investment Company (Pty) Ltd since its established in 1996; if so, in each case (a) when was the contract awarded and (b) what was the (i) nature of the contract and (ii) the total accumulative value of the tender? NW3330

Minister of Labour reply:

(1) The department never awarded any contract to Kopano Ke Matla Investement company (Pty) Ltd.

Reply received: October 2012

QUESTION: 2691

Mr S C Motau (DA) to ask the Minister of Labour:

(1) With reference to her statement (details furnished) regarding the failure to finalize proposed amendments to certain labour laws, (a) what specific aspects of the labour bills that are currently being discussed by the National Economic Development and Labour Council (Nedlac) could have averted the action against striking miners at the Lonmin Mine in Marikana, North West, and (b) what are the reasons for the delay of more than two years to process the bills;

(2) whether she has taken any steps to remedy the failure at Nedlac to meet the deadlines that she had set; if not, why not; if so, what are the relevant details;

(3) whether she has identified any measures to avoid such delays in the future; if not, why not; if so, what are the relevant details? NW3309E

MINISTER OF LABOUR REPLIED

Honourable SC Motau, I referred to the proposed amendment that seek to empower the CCMA commissioner in an arbitration to grant a registered trade union that does not have members as the majority of employees employed by an employer in a workplace, the rights referred to in sections 14 and 16.

While I expressed my unhappiness about the delays in the processes of engagements at NEDLAC, the parties have assured me that the time they took in the engagements was well spent. I think the honourable member will appreciate the fact that to engage in meaningful social dialogue, parties must be given that space and respect to find each other.

Yes, the process of negotiating the Bills at NEDLAC took longer as anticipated. However, parties at NEDLAC mutually agreed to extend deadlines so as to allow meaningful social dialogue and see whether parties could not find each other on issues where there were disagreements.

The Bills are now with Parliament as NEDLAC concluded its consideration thereof.

Reply received: October 2012

QUESTION 2665

2665. Mr SC Motau (DA) to ask the Minister of Labour:

(1) Whether her department intervened in the wildcat strike at the Lonmin platinum mine at Marikana, North West; if not, why not; if so, (a) on what date and (b) what are the details of her department's interventions since the commencement of the wildcat strike up to the latest specified date for which information is available;

(2) whether she intervened personally; if not, why not; if so, when;

(3) whether her department was involved with the arrangements for the official memorial service on 23 August 2012; if not, why not; if so, what were the costs;

(4) whether she intends to call for a CODESA-type intervention within the mining industry (details furnished); if not, why not; if so, what are the relevant details?

Minister of Labour replied:

(1) The Minister and senior officials of the Department have been involved in the process at the Lonmin Marikana mine as from the 16^th August 2012 and the establishment of a Task Team by President J Zuma. The Minister of Labour has herself been involved in a number of meetings with affected parties in Marikana including the trade unions, Lonmin management and religious leaders led by the President of the South African Council of Churches. Senior officials participated in daily meetings with the parties in the week 20^th to 24^th August and have been back to Marikana frequently since then for follow-up meetings and discussions.

(2) As indicated above, the Minister of Labour has personally attended a number of meetings with parties to the dispute and has been a member of the Inter-Ministerial Committee established by the President which has met on a number of occasions after 16^th August 2012 to discuss and monitor the situation in the platinum sector.

(3) The Department of Labour was not involved with the arrangements for the official memorial service on 23 August 2012 as it was not required to do so.

(4) At this stage, the Department is not considering a CODESA for the mining sector although this prospect has been raised. A number of options are possible and are being considered, although at this stage the priority is for the parties in the platinum industry to finalise a process for re-establishing collective bargaining and orderly industrial relations in the sector and on the affected mines.

Reply received: October 2012

QUESTION 2656

2656. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) What are the overarching outputs included in the Minister's Performance Agreement with the President?

(2) What steps has she taken to achieve the targets set out in the Performance Agreement and;

(3) To what extent does her Performance Agreement overlap with the Strategic Plans of (i) her Department and (ii) the entities reporting to her?

Minister of Labour replied:

(1) These are captured in Outcome 4 of Government's Priorities, and are:

Outcome 4: Decent employment through inclusive economic growth.

Outputs:

· Making our growth more labour absorbing

· Reducing youth unemployment

· Raising our international competitiveness

· Analysing the cost structure of the SA economy

· Reviewing support for small business and,

· Expanding our Public Works Programme

(2) The Minister has a Performance Agreement with the Director-General that is aligned with hers, and it is reviewed bi-annually over the five year term of the Administration.

(3) In the same way as alluded to in Question (2) above, as the Strategic Plans are also over the same five-year term of the Administration.

Reply received: October 2012

QUESTION 2515

2515. Mr D Kganare (COPE) to ask the Minister of Labour

1. Whether her department has developed any measures to deal with racism at workplace? If no, why not? If so, what are the details?

2. Is there any assistance offered by her department to unionised or non-unionised workers who falls victim to racism at work? If not, why not? If so, what are the details?

Minister of Labour reply:

(1) Yes, there are developments to deal with racism at the workplace because this is part of the department's mandate to fully implement the Employment Equity Act and achieve its objectives which, includes the elimination of unfair discrimination in workplaces or employment policy or practice based on one or more grounds, including race, gender, disability, religion, marital status, sexual orientation, etc or on any arbitrary ground.

In fact, in order to ensure that we increase accessibility to justice to most vulnerable groups of our population in dealing not only with racism in the workplace, but with all other cases of unfair discrimination, the department has put measures in place through the proposed amendments to the Employment Equity Act to empower the Commission for Conciliation, Mediation and Arbitration (CCMA) to not only conciliate on unfair discrimination cases, but to arbitrate as well. This amendment of the law will assist in ensuring that discrimination cases are handled expeditiously without any burden of having to worry about legal costs, which most workers cannot afford anyway. We believe that this measure will assist in providing the majority of workers with equal access to justice as far as cases of unfair discrimination are concerned.

(2) Yes, the department do offer assistance to all workers irrespective of whether they are unionised or not in dealing with their unfair discrimination cases as a whole and not only those based on racism. This assistance, include amongst others, advising or educating workers in relation to their rights in terms of the law and also on the procedures to be followed in referring their unfair discrimination cases to appropriate dispute resolution institutions like the CCMA or the Labour Court.

Reply received: October 2012

QUESTION 2576

2576. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) Whether (a) her department and (b) any of the state-owned entities reporting to her have a fraud hotline; if not, why not; if so,

(2) whether she has made an assessment of how (a) effective and (b) independent the hotline is; if not, what is the position in this regard; if so, what were the findings;

(3) (a) how is the existence of the hotlines advertised and (b) what is the normal protocol that is followed when allegations of fraud are registered with these hotlines? NW3184E

THE MINISTER REPLIED:

(1) Department of Labour has established a Fraud Hotline. The Hotline number is 0800 60 11 48.

(2) The Hotline is managed by the Risk Management Division and this unit is not responsible for daily operations in the organizations but fraud investigations. The assessment conducted in 2010/11 revealed that the Hotline is working effectively however there is room for improvements. In addressing the improvements, the Department has embarked on:

· regular awareness campaigns are conducted in line with the whistleblowing policy and procedures,

· Training and development programmes implemented

· Fraud risk assessments conducted regularly

(3) The Hotline is advertised through awareness campaigns and posters in our offices. As and when the Case workers/Hotline Operators receive a case, they then open a case file and refer the case for the investigations. If need be constant updates are given to the complainant.

Reply received: October 2012

QUESTION 2492

2492. Mrs S V Kalyan (DA) to ask the Minister of Labour:

(1) Whether (a) her Ministry, (b) her department and (c) any entity reporting to her plan to host end-of-year parties; if not, in each case, what is the position in this regard; if so, in each case, (i) for how many persons and (ii) at what cost;

(2) whether the cost of the specified end-of-year parties has been budgeted for in the current financial year; if not, from where will the funding be sourced; if so, (a) what amount has been budgeted and (b) from which part of the budget will it be incurred? NW3098E

Minister of Labour replies

1. (a – b) The Minister's office and the Department of Labour do not envisage hosting a year-end function.

In the event officials should attend / host a year-end function the officials would bear the cost thereof and under no circumstances will the expense be defrayed against the Department's budget.

ENTITY NAME	RESPONSE
Unemployment Insurance Fund (UIF).	1. C) The UIF does not plan, neither does the UIF host end-of-year parties. Different Sections are afforded the opportunity to arrange Christmas Lunches, and each employee is responsible for his/her own expenditure in this regard. 2. In light of the above, the UIF does not budget for end-of-year parties.
NEDLAC.	1. C) NEDLAC has no plans to host end of year parties. The position of the Council is that it will not host any year end parties. 2. NEDLAC has not budgeted for year-end parties because there are no plans to host end of year parties.
Sheltered Employment Factories [SEF].	1. C) SEF does not host any year end and or other functions. In the event that personnel do want to socialize informally – it is paid for from their own pockets.
COMPENSATION FUND (CF).	1. C) There are no plans to host end of year parties. The position of the Fund is that it will not host any year end parties. 2. The Fund has not budgeted for year-end parties because there are no plans to host end of year parties.
CCMA.	(1) C) the CCMA plans to host end-of-year functions to thank staff for their dedication and hard work throughout the year. (i) 567 persons. (ii) R170, 000.00. (2) The cost of the specified end-of-year parties has been budgeted for in the current financial year. (a) The full amount R170, 000.00 has been budgeted for in the current financial year. (b) this cost will be incurred from the Catering item.
PRODUCTIVITY SA (PSA).	(1) (c) Productivity SA will not be hosting end-of-year functions, but a strategic session, where staff will be given insight into the strategic processes of the organization, as well as feedback from both the strategic sessions of the PSA Executives and the Board. This is done to obtain buy-in into the strategic objectives and implementation thereof. At this session the Annual Performance will also be shared with staff. (i) 100 persons. (ii) R35, 000.00. (2) The cost of the specified strategic session has been budgeted for in the current financial year. (a) The full amount R35, 000.00 has been budgeted for in the current financial year. (b) This costs will be incurred from the Employee Wellbeing item.

In view of the response to question 1 (a – b), the Department does not budget for year-end functions.

Reply received: October 2012

QUESTION 2404

2404. Mr D A Kganare (Cope) to ask the Minister of Labour:

(1) Whether officials in her department purchased tickets to the New Age Business Briefing; if not, what is the position in this regard; if so,

(2) in terms of which provisions of the Public Finance Management Act, Act 1 of 1999, were the tickets procured;

(3) whether she will make a statement on the matter? NW2997E

The Minister of Labour reply:

The Department and its Entities did not purchase tickets to the New Age Business Briefings.

Reply received: October 2012

QUESTION 2251

2251. Mr AP van der Westhuizen (DA-Parliament) to ask the Minister of Labour:

(1) With reference to his reply to question 1602 dated 21 August 2012, Whether the department has contributed to any activities of COSATU during any previous financial year (a) 2009-10, (b) 2010-11 and (c) 2011-12 financial years; if not, if so; (a) (i) what were these contributions for and (ii) what were the amounts transferred to COSATU, (B) how were the opportunities to apply for funding advertised, (iii) were any other labour organisations funded by the department during this period and (iv) from what budget votes were these funds paid?

Minister of Labour's reply:

1. The Department of Labour does not contribute to the activities of COSATU or any other trade union federation except for the funding of the annual May Day celebration. This is done through the funding of the three major federations, namely NACTU, FEDUSA (as SACOTU) and COSATU. This is a practice that is in line with international practice of many countries and also the practice of other Government departments in South Africa who fund similar events that are within their mandate area, such as, Women's Day, Human Rights Day and Youth Day.

2. The allocations for the three federations were as follows:

· 2009/10: Two million (R2,000,000.00) was transferred to COSATU and one million (R1, 000,000.00) to SACOTU.

· 2010/11: Two million (R2,000,000.00) was transferred to COSATU and one million (R1, 000,000.00) to SACOTU.

· 2011/12: Two million (R2,000,000.00) was transferred to COSATU and one million (R1, 000,000.00) to SACOTU.

3. Every year these organisations submit proposals which are considered by the Committee of the Strengthening Civil Society Fund. After careful consideration, the Committee makes a recommendation for funding to the Director-General of the Department for his approval.

4. The funds are allocated through budget vote 18.

Reply received: October 2012

QUESTION 2305

2305. Mr Watson (DA) to ask the Minister of Labour:

a) What steps has she taken to give effect to the performance agreement that she signed with the President in 2010,

b) What outcomes have been measured and,

c) What follow-up steps has she taken with regard to each specified outcome?

MINISTER'S RESPONSE:

a) What steps have I taken to give effect to the performance agreement that I signed with the President in 2010?

i. The Ministerial Performance agreement signed with the President has been aligned with the Department of Labour's Strategic Objectives and has been incorporated into the regular monitoring and reporting mechanisms and activities of the Department, through its Strategic Plan, as well as its Annual Performance Plan.

ii. The Department's annual reports 2010/11 and 2011/12 capture in great details the steps that have been taken to give effect to the Performance Agreement therefore I will advise the honourable member to take some time out and go through these reports. Having said that I will respond, very briefly though, to the question by Honourable Watson.

iii. The Strategic Plans of the Department capture very succinctly the steps taken and action plans on each one of the outcomes in the Performance Agreement that are relevant to the Department. I must point out that these plans are dealt with in great details in the National Assembly Portfolio Committee on Labour and the National Council of Provinces Select Committee on Labour and Public Enterprises, where the DA is also represented

iv. In pursuit of the steps to give effect to the Performance Agreement, I advised the Department to ensure that our Strategic Plans incorporate the key aspects of the Performance Agreement, identify specific outcomes that fall within the remit of the Ministry and indicate actions that the department needs to undertake to give effect to the Performance Agreement.

v. The sum total of this is that the Performance Agreement and the envisaged outcomes are now incorporated in the department's work programme and we report on these in our annual report.

b) What outcomes have been measured?

i. Outcome 4: Decent Employment through inclusive economic growth;

The measurement of the Department's outcomes including Outcome 4 is done quarterly by the Department, with a review sitting bi-annually by the Department, chaired by the Minister. However, the evaluation of the Minster is the prerogative of the President of the Republic.

c) What follow-up steps have I taken with regard to each specified outcome?

Some of the key highlights of steps taken in pursuit of the Performance Agreement specified outcome include, but not limited to the following;

Noting that not only the Department of Labour works on OUTCOME 4, but also Trade and Industry, Economic Development and Finance as well; therefore there may be instances where other Ministers may, by default, have something to report on the same OUTCOME. [Possible double counting by default and not by design]

i. The Unemployment Insurance Fund, (UIF) supports job creation activities through collaborating with SETAs for UIF beneficiaries willing to avail themselves for further training in identified scarce trades to improve their prospects of re-employment. Summary of Learnerships and Internships intake for the period under review include:

Sector	Number of Learners
Metal Time Based Trades (MTBT)	240 learners
Motor Mechanics	24 learners
Plumbers	60 learners
Mining Qualifications Authority (MQA)	1000 learners
Manufacturing, Engineering and Related Services SETA (MerSETA)	1500 learners

ü The Unemployment Insurance Fund invested R2 billion for a 5-year private placement bond with the IDC in April 2010.

ü A total of 164 transactions with a value of R2.8 billion have been approved;

ü The approved transactions are expected to create jobs, based on business plans, 15 222 new permanent jobs and save 18 317 existing permanent UIF paying jobs;

ii. Department of Labour (DoL) provides free employment services support to employers regarding vacancy or opportunity registration, job-seeker registration, matching services, career counselling and information, referrals for placements and Immigrants work permits.

iii. As of end of March 2011, 652 611 job seekers were registered, of the 15 009 assessed, 2 412 were successfully placed in scarce skills employment, 12 708 were placed in other jobs; 25 814 were referred to placement opportunities, 65 347 were provided with career counselling, 451 950 were referred to UIF, 8 732 to the Compensation Fund and 7 217 were referred to DHET for further training opportunities.

iv. The Unemployment Insurance Fund allocated R 1.2 billion to the Training Lay-off Scheme assisting companies that are in distress due to the economic downturn. Companies such as BMW utilised the scheme to increase training capacity resulting in the company taking a decision to increase the production of the new BMW 3 Series in South Africa.

v. As of end of March 2011, R34m was spent in 130 companies and 15000 jobs were saved through turn around strategies in Agriculture, Steel and Manufacturing sectors, Construction, Printing.

vi. A total of 9207 jobs were saved from possible large scale retrenchments through the intervention of the CCMA.

vii. The CCMA managed, through mediation, to settle disputes and ensure that 710 workers were re-employed and offered jobs elsewhere within the same companies and 1073 workers were re- instated in their original employment positions.

viii. The UIF and the Compensation Fund are in a process of renegotiating their investment mandate with the PIC in order to ensure that it is more biased towards employment creation projects.

ix. I have introduced four (4) Labour Amendment Bills in Parliament namely; Labour Relations Amendment Bill, Basic Conditions of Employment Amendment Bill, Employment Equity Amendment Bill and the Employment Services Amendment Bill.

x. These Amendments seek to, among other things, address the abusive practices inherent in the atypical forms of employment, re-align our law with our international obligations, align the law with the wealth of jurisprudence at our disposal, introduce enabling provision to enhance better inspection and enforcement and strengthen protection for the vulnerable workers.

xi. These Amendments also seeks to find the delicate balance between protection and flexibility in order to ensure that employment creation efforts are not undermined. Examples of these can be gleaned in the text that is currently being deliberated on at the Portfolio Committee level.

xii. These Amendments are an attempt to give meaning to OUTCOME 4 of the Performance Agreement. We have made provisions in the proposed Amendments currently being deliberated on by the National Assembly Portfolio Committee that seek to exempt small businesses from certain obligations.

xiii. A Review of the Small Business Sectoral Determination has been completed and is currently being considered by the Employment Conditions Commission.

xiv. I am convinced that some of these legislative Amendments, if they were already Law, would have minimised, if not eliminated some of the issues that triggered the current Mining sector industrial unrests.

xv. The Department has embarked on Building Partnership with the Provinces, Local governments and the Private sector to facilitate placement of job seekers in skills and employment enhancing opportunities. This is done through provincial jobs Summits and Jobs Fairs.

xvi. The Jobs fairs brings together Government Departments, State Owned Enterprises, Private sector and other institutions to examine job opportunities and other employment enhancing opportunities for the job seekers in general and young people in particular.

xvii. The Department has contributed to discussion around a Multi-Pronged Strategy on Youth Employment chaired by the Department of Economic Development.

xviii. I have hosted more than four Jobs summits to date and am very pleased with the results so far. Big corporates have shown a huge appetite to work with government on this front.

xix. Social Partners have signed off on the Decent Work Country Programme for South Africa.

The details of these and other steps taken to give effect to the Performance Agreement can be gleaned in the Annual Reports of the Department.

Reply received: September 2012

QUESTION 2250

2250 . Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) What have been the findings of the study conducted on the (a) compliance by the taxi industry with labour legislation and (b) registration of employees under the Unemployment Insurance Act?

(2) Whether her department adjusted its (a) programmes and (b) inspections as a result of the outcome of the study; if not, why not; if so, what actions are planned?

MINISTER OF LABOUR REPLIED:

1 (a) The study has revealed that workers in the taxi industry continue to be vulnerable despite the Department's efforts of introducing a sectoral determination in the sector. There is a disregard for working hours and minimum wages in the industry. Some taxi drivers continue to earn below the minimum wage in the industry.

The study further indicated that there are low levels of compliance with regard to the UIF contributions. Some employers are not registered for UIF and some of the taxi drivers dislike the idea of contributing to UIF. The employers cited low profit margins, high staff turnover and uncertainty around UIF as the reason for noncompliance.

(b)The Department embarked on an awareness raising campaign in all nine provinces to raise awareness on the plight of taxi drivers. It further used TV adverts, Radio Adverts, Newspaper Adverts and Billboards to target employers for compliance.

2 (a) (i) The Unemployment Insurance Fund (UIF) embarked on a national taxi awareness campaign by visiting 5 taxi ranks in each province. In KwaZulu-Natal, Western Cape and Gauteng at least 10 taxi ranks each were visited.

The UIF also made use of TV adverts, Radio Adverts, Newspaper Adverts and Billboards to target all employers.

(b) The given the nature of the sector and the immediacy of the report, it is not possible for the Department of Labour to provide specific information on the number of inspections conducted or interventions given the nature of compliance of the sector. The content of the research was however noted by the Inspectorate especially the challenges around the volatility of the Taxi industry.

The Department will however engage with the sector at a provincial level as well as at a local level to improve awareness of the need to comply with labour legislation.

The Department is going to forward and give the demands of the broader South African economy that will determine the areas where inspections should be prioritized and what the appropriate intervention strategy should be.

Reply received: September 2012

QUESTION 2424

2424. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

Whether (a) she and/or (b) her department (i) received and (ii) attended to any requests regarding labour unrest in the platinum mining sector since 1 January 2012; if not, why did she choose not to act in accordance with the requests received; if so, (aa) what actions were called for, (bb) who made these requests, (cc) when were they received and (dd) what are the relevant details of her actions?

Minister of Labour replied:

(1) The Minister and senior officials of the Department have been involved in the process at the Lonmin Marikana mine since the death of 34 miners on 16^th August 2012 and the establishment of an Inter-Ministerial Committee by President J Zuma. The Minister of Labour has been involved in a number of meetings with affected parties in Marikana including the Trade Unions, Lonmin management, religious leaders led by the President of the South African Council of Churches and a delegation consisting of eight workers.

(2) The Commission for Conciliation Mediation and Arbitration (CCMA) has been involved in the dispute at Impala Platinum since January 2012 and most recently in efforts to conduct a verification exercise of union membership at that mine.

(3) The Minister of Labour was sent a letter by the Chief Executive Officer of Implats, dated 6^th September 2012, informing her of a deterioration in the situation at the Impala Rustenburg operation. This letter is receiving attention.

Reply received: September 2012

QUESTION 2391

2391. Mr D A Kganare (Cope) to ask the Minister of Labour:

(1) Whether her department has received reports about violence in the mines of Rustenburg recently; if not, why not; if so, what are the relevant details;

(2) what are the reasons for this violence;

(3) whether her department has intervened; if not, why not; if so, what are the relevant details?

Minister of Labour replied:

(1) The Department has not received any direct reports other than briefings by the Commission for Conciliation Mediation and Arbitration (CCMA) on their involvement with the Impala Platinum dispute earlier in 2012 and more recent information available to them relating to the dispute at the Lonmin Platinum mine. All the relevant information has also been available in the print media.

(2) The reasons for the violence in the mine seems to relate to dissatisfaction by employees with their wages and working conditions, conflict between members of the National Union of Mineworkers and the Association of Mineworkers and Construction Union as well as violence between employees and members of the South African Police. The full reasons are likely to be contained in the report of the Commission of Inquiry that has been established by President J Zuma.

(3) The Minister of Labour has herself been involved in a number of meetings with affected parties in Marikana including the Trade Unions, Lonmin management, 8 worker's delegation and religious leaders led by the President of the South African Council of Churches.

Following this Senior officials, religious leaders, trade unions and Lonmin management have been attempting to facilitate a process agreement and a peace process that will hopefully culminate in the signing of a peace accord, a return to work by the miners and a return to calm in the area. This process is ongoing at present.

Reply received: October 2012

QUESTION 2164

2164. Mr J R B Lorimer (DA) to ask the Minister of Labour:

Whether (a) her department or (b) any entity reporting to her makes use of private security firms; if so, in each case, (i) which firms and (ii) what is the (aa) purpose, (bb) value and (cc) duration of each specified contract? NW2687E

The Minister of Labour reply:

ENTITY NAME	RESPONSE
NEDLAC.	(b) NEDLAC makes use of a private security firm: - (i) which firm? = ADT Armed Response. (ii) what is the: - (aa) purpose? = security. (bb) value? = PER ANNUM - R10, 000.00. (cc) duration of each specified contract? = ongoing.
COMPENSATION FUND (CF).	(b) CF does not make use of any private security firm, as this service is conducted by the Fund's internal security staff.
CCMA.	(b) CCMA makes use of various private security firms throughout South Africa at regional offices in Provinces: (i) which firm? = Future Officers' Security-Guarding cc, Bopanang SP Catering and Cleaning Services cc, Enforce Security-Guarding Services, Salute Security, Red Alert, Jasco Trading Pty (Ltd) (Multivid), Nationwide Security-Guarding Holding and Chubb Electronic Security-Guarding. (ii) what is the: - (aa) purpose? = Security-Guarding, Armed Response, Access Control, CCTV & Security-Guarding systems. (bb) value? = PER ANNUM - R755, 327.69. (cc) duration of each specified contract? = Contracts run for 36 months, excluding: - · Future Officers Security-Guarding cc – 24 months. · Bopanang SP Catering and Cleaning Services cc – 16 months.
PRODUCTIVITY SA (PSA).	(b) PSA Does not make use of any private security firm.
Unemployment Insurance Fund (UIF).	(b) UIF makes use of a private security firm: - (i) which firm? = Fidelity Cash Solutions (Pty) Ltd. (ii) what is the: - (aa) purpose? = collect, convey, store and deliver cash from the UIF on a daily basis. (bb) value? = PER ANNUM - R44, 091.82. (cc) duration of each specified contract? = 36 months w.e.f. 1 February 2012.
Unemployment Insurance Fund (UIF).	(b) UIF currently finalising the following contract: - (i) which firm? = Fidelity Security Services (Pty) Ltd. (ii) what is the: - (aa) purpose? = provide armed response services at the UIF's Midrand building. (bb) value? = PER ANNUM - R4, 788.00. (cc) duration of each specified contract? = 24 months.

Reply received: September 2012

QUESTION 2139

2139. Dr P J Rabie (DA) to ask the Minister of Labour:

How many persons are categorised as being employed in the (a) informal sector and (b) grey economy? NW2659E

Minister of Labour replied:

The department does not collect employment statistics on informal sector/grey economy.

However, Statistics South Africa is the official statistical agency in the country. Thus, (a) the most recent Quarterly Labour Force Survey results (i.e Quarter 2:2012) reported approximately 2.1 million people to be employed in the informal sector. This is 15.1% of the total employment and a reduction of 1.4 percentage points compared to the same period last year.

(b) The term grey economy is not used in statistics and therefore not measured.

Reply received: August 2012

QUESTION 2140

2140. Dr PJ Rabie (DA-NW) ask the Minister of Labour:

How many work days were lost in the 2010-11 financial year due to work stoppages by striking workers demanding higher wages? NW2661E

Minister of Labour replied:

1. The Department of Labour is mandated to collect statistics on strikes, with critical issues including reasons for strike, work stoppages, wages lost and duration using the LRA 9.2 Form. In doing so, the department recorded more than 20 million work days (20 000 353) lost in the financial year 2010/11 where more than 1.1 million (1 160 507) workers participated in strike due to wages (more than 95% of strikes reported to wages, bonus and other compensation).

2. Furthermore, the department covers strike trends in two annual reports: Annual Labour Market Bulletin (based on the financial year) and Industrial Action (based on the calendar year). These reports can be accessed on the department website.

Reply received: September 2012

QUESTION 2120

2120. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) Whether, with reference to her reply to question 882 on 17 May 2012, she has found that the average inspection rate of fewer than 170 workplace inspections by each labour inspector per annum is an acceptable productivity rate for the inspectorate; if not, (a) why not and (b) what rate is acceptable; if so, what are the relevant details;

(2) whether she has drafted any plan to improve the productivity of the labour inspectorate; if not, why not; if so, (a) what plan and (b) when will it be rolled out? NW2639E

Written response by Minister of Labour:

1 (a and b)

The acceptable rate for an inspector per annum is 240 workplaces,

Even though the rate of 170 workplaces per annum is not a desirable one, there are contributing factors relating to the inadequacy of resources such as vehicles, public service strike. In our attempt to improve the enforcement capabilities, our inspectors spent a considerable time in training sharpenning their skills

2 (a and b) As reported before, our inspectorate is undergoing a process of capacity building to improve our enforcement capabilities. This process will result in more skilled inspectorate that will not only look at the quantity but also on the quality aspect. Focusing on quality may result in less inspection but more value for employers and emoyees. Our focus is now more on quality and impact than quantity.

Reply received: September 2012

Question 2119

2119. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) With reference to her reply to question 882 on 17 May 2012, (a) what is the content of the structural competency training programme for labour inspectors, (b) when will the training commence, (c) by what date does she envisage that the last group of inspectors who are currently employed by her department will have received this training and (d) who will conduct the training;

(2) whether the training programme will be registered on the National Qualifications Framework; if not, why not; if so, (a) when will it be registered and (b) at what level will it be pitched?

(3) Whether the training will benefit labour inspectors in terms of pay progression; if not, why not; if so, what are the relevant details? NW2638E

Written response by Minister of Labour:

(a) For 2012, the Department has engaged the University of Witwatersrand through its Centre for Sustainability in Mining and Industry (CSMI) to provide training through a Pilot project to its Occupational Health and Safety Inspectors. The course material is offered at an NQF level 7. Accreditation is currently in place for the course. The course material is being adapted for the Department's inspectors as it is currently being used to train the Department of Mineral Resources' inspectors. It is proposed that this Pilot will consider the following to courses short courses: The Occupational Health and Safety Act and Legal Enforcement (Part 1). This project will rely on the expertise within the CSMI. The CSMI has already successfully accredited and piloted many courses and, developed training manuals in-house.

The Department has also worked with PSETA to Register a qualification at NQF level 5 for inspectors who currently hold a Standard 10/Grade 12. The Registered Qualification is: QUAL ID QUALIFICATION TITLE: 49107 National Certificate: Inspection and Enforcement Services:

The Department will also implement an RPL process for those inspectors who wish to proceed to do an RPL process as opposed to going through the actual learnership. National Certificate: Inspectorate and Enforcement Services (NQF 5): Qualification ID: 49107; Qualification title: National Certificate: Inspection and Enforcement Services; NQF level: Level 5

The Learnership training and RPL process will commence in 2012.

(b) The training will commence during the course of 2012. The process is underway for this training to take place.

(c) Due to the volume of inspectors who do not possess a qualification past Grade 12, the Department envisages a process of training over the next seven (7) years to ensure that all inspectors in possession of a Grade 12 will then hold a formal qualification through either the RPL process or the learnership process

(d) External service providers will provide the Department's training.

2 (a and b)

The training for the learnership will be against a nationally recognised qualification.

The training to be provided by the University of Witwatersrand at this stage is not registered, but according to the University (CSMI) it is currently registering the qualification. It should be noted however that any inspector doing the course at this stage will be given a certificate after a successful assessment. Exact timeframe of registration could not be given at this time. The level will be at an "advanced diploma" level, 3^rd/4^th year, in the region of a NQF level 7.

3. The training will indeed benefit the labour inspectors in terms of payment in that when we implement the full specialization, the entry level of the inspector will be at SR 8. Through this training, the inspectors will obtain a recognised qualification which will enable them to meet the requisite requirement.

Reply received: October 2012

QUESTION 2112

2112. Mr AP van der Westhuizen (DA) asks the Minister of Labour:

1. With reference to the provincial imbizo's, (a) on what dates and (b) in which provinces have they been held;

2. (a) What was the total cost to the department for each of these events and (b) how many people have attended each of these imbizo's;

3. What was the break-down of the cost for these events in the (i) Free State and (ii) Western Cape that was held during the first semester of 2012;

4. (a) What other government departments have also taken part in these imbizo's and (b) what were their involvement with these imbizo's?

The Minister of Labour reply:

Please see the attached reply for IMBIZO

Reply received: September 2012

QUESTION 2072

2072. Mr J R B Lorimer (DA) to ask the Minister of Labour:

(1) Whether (a) she and (b) any official from an entity reporting to her will be attending or attended, the 2012 Olympic Games; if so, what is the (i)(aa) name, (bb) rank and (cc) position/designation of each specified person accompanying (aaa) her and (bbb) each specified person and (ii)(aa) nature and (bb) official reason for the visit;

(2) what (a) total amount will be spent or has been spent on the trip, (b) is the (i) description and (ii) detailed breakdown of the amounts that will be spent or have been spent on (aa) accommodation, (bb) travel and (cc) subsistence costs and (c) from which budget will these funds be incurred in each case? NW2552E

MINISTER OF LABOUR REPLIED:

No official from the Department or its Entities was sent to the 2012 Olympic Games.

Reply received: August 2012

QUESTION 2036

2036. Ms H Lamoela (DA) to ask the Minister of Labour:

(1) (a) How many persons with disabilities have benefitted from the Jobs Fund and (b) in what way;

(2) what measures are in place to ensure that funding can be accessed by persons with disabilities;

(3) how will persons with disabilities benefit from the proposed employment opportunities envisaged by Government? NW2515E

Minister of Labour response:

I am unable to provide that information as the Jobs Fund including its administration is under National Treasury. I am therefore not in a position to respond to the second and third question, I will refer them to the Minister of Finance.

Reply received: August 2012

QUESTION 2034

2034. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) (a) What range of furniture will be manufactured in the sheltered employment factories and (b) what is the difference between the cost of the specified furniture and similar products that can currently be procured on the open market;

(2) (a) which education departments have already placed orders for such furniture and (b) what is the total value of these orders;

(3) what steps do education departments have to take when they want to place orders for the range of school furniture;

(4) (a) which sheltered employment factories will be manufacturing the range of school furniture and (b) how many job opportunities are expected to be created from this project in each factory? NW2513E

Minister of Labour response:

(1)(a) The range of furniture manufactured at SEF factories include: School desks, Learner chairs, Teachers tables and chairs and Cupboards.

(b) The price range of furniture is determined by the types of materials or wood needed, sizes, quantities labour and operational costs. SEF also conducts regular surveys of current quality levels and rates in the market in order to reposition itself accordingly.

(2)(a) For the 2012/13 financial year, the SEF has already entered into a 36 months formal agreement with the Department of Basic Education to supply furniture to new school being built commencing with 64 schools in the Eastern Cape. There are other agreements with Provincial governments that focus on supply uniforms, hospital laundries, etc.

(b) The total transaction with the Department of Basic Education since 1^st April to end of July 2012 for orders placed and delivered amounts to R 14 188 409.22.

(3) The Departments follow their normal supply chain process and SEF has to compete like any other services provider as it no longer enjoys preferential procurement status. Some Departments normally approach SEF directly after assessing quotations as it is government component to secure an agreement and placement of orders.

(4)(a) Currently eight (8) out of the twelve (12) factories located in East London, Johannesburg, Pretoria, Potchefstroom, Kimberly, Bloemfontein, Durban and Pietermaritzburg are equipped to manufacture furniture.

(b) The 12 factories combined currently employ 1105 people i.e 125 Managers and support staff and 980 factory workers with disabilities. These factories have a combined capacity to employ up to 3000 workers with sufficient work. With the current agreed MOAs projections are that 3 additional Permanent jobs will be created and up to 400 temporary jobs in local communities where furniture is supplied and assembled and in maintenance of broken school furniture.

Reply received: August 2012

QUESTION 2033

2033. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) How many of the senior managers of her department (a) are required to have a valid security classification, (b) comply with this requirement and (c)(i) have submitted all the necessary documentation to be vetted, but are awaiting the outcome and (ii) have not submitted the documentation for vetting purposes as at 31 March 2012;

(2) for each of the senior managers who have not submitted the documentation for vetting purposes by 31 March 2012, (a) for how long have they been in office and (b) what period of time has passed since the previous term of clearance had lapsed? NW2512E

MINISTER OF LABOUR'S RESPONSE

1. a) 80 SMS members required to have security clearances

b) 77 SMS members are complying

i. 77 have submitted

ii. 03 not submitted

2. a) 1 official since July 2004, the other 2 are newly appointed officials.

b) The official was never cleared.

ye X� � provider as it no longer enjoys preferential procurement status. Some Departments normally approach SEF directly after assessing quotations as it is government component to secure an agreement and placement of orders.

Reply received: August 2012

QUESTION 2032

2032. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) What (a) has been the cost of managing the vehicle fleet of her department and (b) were the amounts paid to staff as subsidies in terms of the subsidised vehicle scheme in the (i) 2009-10, (ii) 2010-11 and (iii) 2011-12 financial year;

(2) whether her department's decision to terminate the outsourcing of its fleet management function was based on research showing that the current arrangement was not a cost-effective one; if not, why was the outsourcing of the said function terminated; if so, what were the main findings of the study;

(3) what are the expectations in terms of changes to the cost of operating the vehicle fleet of her department for the next few financial years? NW2511E

Response:

(1) (a) According to the financial statements of the Department , the following expenditure was recorded in respect of the current fleet contract:

· 2009/ 2010 - R49,173 Million

· 2010/2011 - R55,871 Million

· 2011/2012- R58,549 Million

(1) (b) According to the financial statements of the Department , the following expenditure was recorded in respect of the Subsidies paid to staff:

· 2009/ 2010 - R4,504 Million

· 2010/2011 - R3,192 Million

· 2011/2012- R1,484 Million

(2) The PPP fleet Solution contract managed by the Department of Transport came to an end in November 2011 and the user Departments had an option of extending and participating for a further period of two years.

The Department of Labour opted not to participate in a further extension but to explore all the transport solutions available to the Department

· Procure own fleet,

· Subsidized Vehicle {Scheme A and B}

(3) Given the fact that the Department is phasing in the "in-house" fleet of vehicles, and reducing the number of vehicles on the current contract concomitantly, the funding of the increase to the "in-house" fleet will be sourced from the reduced cost of the current contract. It is envisaged that the entire outsourced fleet will be replaced over the following two (2) years.

Reply received: September 2012

QUESTION 2017

2017. Mrs J D Kilian (Cope) to ask the Minister of Labour:

(1) How many employees in her department in the post level of deputy director to director general who have been appointed on a (a) permanent and (b) contract basis (i) have been suspended on full salary pending investigations or disciplinary action for periods exceeding three months, (ii) have resigned before the relevant investigations or disciplinary actions were concluded and (iii)(aa) have been found guilty of gross financial misconduct or negligence and dismissed and (bb) were dismissed following due process and disciplinary hearings in the (aaa) 2009-10 and (bbb) 2010-11 financial years;

(2) what total amount was paid in salaries and benefits to the employees while they were suspended;

(3) whether her department has laid criminal charges against any persons following investigations or disciplinary hearings where fraud or corruption was found to have taken place; if not, why not; if so,

(4) whether, subsequent to the specified findings of fraud and corruption, any amounts have been recovered in terms of the relevant provisions of the Public Finance Management Act, Act 1 of 1999; if so, what amounts; if not,

(5) how does she intend to comply with national legislation which was promulgated to prevent corrupt practices and compel authorities to report corrupt practices to law enforcement agencies? NW2493E

The Minister of Labour replied:

(1) No employees on the level deputy-director to director-general were suspended, found guilty or dismissed for financial misconduct or negligence during the financial years 2009-10 and 2010-11.

(2) N/A.

(3) N/A

(4) N/A.

(5) The Department is already complying with national legislation and all corrupt practices involving financial misconduct are reported to the law enforcement agencies.

END.

Reply received: September 2012

QUESTION 1975

1975. Adv H C Schmidt (DA) to ask the Minister of Labour:

Whether (a) her department or (b) any entity reporting to her has budgeted for (i) financial donations or (ii) sponsored services in the (aa) 2009-10, (bb) 2010-11 and (cc) 2011-12, (dd) 2012-13 financial years; if not, why not; if so, in each case, what amount was (aaa) budgeted and (bbb) spent? NW2364E

Minister of Labour replied:

ENTITY NAME	RESPONSE
NEDLAC.	(b) NEDLAC has not: - (i)budgeted for financial donations; and (ii) has not sponsored services; during the years under review.
COMPENSATION FUND (CF).	(b) CF has not: - (i)budgeted for financial donations; and (ii) has not sponsored services; during the years under review, as this is not part of CF's business as a Public Entity.
CCMA.	The CCMA did not provide any financial support in the form of donations or sponsored services to any political organization for the 2009/10, 2010/11, 2011/12 and year to date in the 2012/13 financial years. The CCMA did not budget for donations or sponsored services for the abovementioned financial years. With reference to the question, why no financial support provided? The government grant received by the CCMA was directed at the CCMA's mandated service delivery and operational expenditure requirements.
PRODUCTIVITY SA (PSA).	b) PSA has not: - (i)budgeted for financial donations; and (ii) has not sponsored services; during the years under review.
Unemployment Insurance Fund (UIF).	The Unemployment Insurance Fund: - The UIF did not make any financial donations, neither did the Fund sponsor any services for 2009-10, 2010-11, 2011-12 or 2012-13. The UIF only incurs expenditure as prescribed by the Unemployment Insurance Act.

Reply received: August 2012

QUESTION 1907

1907. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) What was the (a) monetary value of products that were bought by government departments from the Sheltered Employment Services in the 2011-12 financial year and (b) age analysis of amounts due by each specified client as at 31 March 2012;

(2) whether any amounts due were written off as irrecoverable since 1 January 2012; if not, why not; if so, what are the relevant details;

(3) whether she has found that it is necessary to improve the management of debtors of the Sheltered Employment Services; if not, why not; if so, what are the relevant details? NW2296E

Minister of Labour response:

(1)(a) The total monetary value of goods bought by government departments from SEF amounts to R49,355,000-00

(b) The total debt owed to Sheltered Employment Factories up to 31^st March 2012 dating back to 1999 amounted to R16,959,000-00. The age analysis is as follows:

120 days and older: R10,671,000-00

90 days : R 396,000-00

60 days : R 1,516,000-00

30 days : R 4,374,000-00

(2) A process has been initiated with the assistance of the Department's legal services and Treasury after to write off about R7,000,000-00. The reasons include insufficient documentation relating to Purchase orders, delivery, acknowledgement receipts, legal complexities around taking other departments to court and in some instances insufficient cooperation arising from years of staff changes in affected departments.

(3) A number of initiatives have been introduced and some are in their final stages to correct this situation. This includes:

· There has been drastic improvement in the SEF documentation management system and the 2011/12 auditor general's audit will attest to this.

· All new contracts are negotiated to be implemented with a 50% upfront deposit to avoid late cancellation and to assist the entity in the procurement of raw materials.

· A process was initiated to restructure the SEF entity with the assistance of the National Treasury Technical assistance Unit. I expect the final report to provide recommendations on a SEF Business Case that amongst others forward recommendations on how best we can adjust systems, the structure, processes and a roadmap to achieve that.

Reply received: August 2012

QUESTION 1814

1814. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) (a) Why did the Unemployment Insurance Fund (UIF) fund the training of learners in qualifications registered specifically with the Mining Qualifications Authority Sector Education and Training Authority (Seta) and not that of other Setas, (b) what is the total contribution by the UIF to this training initiative, (c) which service providers were contracted to facilitate the training of these learners and (d)(i) when, (ii) where and (iii) how were these learners (aa) recruited and (bb) selected for this training scheme;

(2) whether this procurement was done through competitive bidding; if not, why not; if so, what are the relevant details;

(3) what is the (a) level of training for this training initiative, (b) number of (i) learners enrolled and (ii) those that were found competent and (c) the number of previously unemployed learners who are placed in permanent employment since achieving their qualifications? NW2206E

MINISTER OF LABOUR REPLY:

(1) (a) The Unemployment Insurance Fund does not collaborate with the Mining Qualification Authority, only, it has also partnered with MICT Seta, and MERSETA. This financial year, 2012/2013 all SETA's will be invited to participate in the training.

(b) The total contribution made by the UIF to the MQA is R45m over three (3) years, and 1000 unemployed learners will benefit.

(d) (i) The recruitment of the learners started in January 2011; (ii) where recruited throughout the country; (iii) the participating employers are sourcing these learners fromthe Department of Labour's Employment Services of SA (ESSA) . The learners that are recruited are the beneficiaries of the Unemployment Insurance Fund

(2) The UIF does not play a role in the recruitment and selection of service providers, it only select the unemployed learners.

(3) (a) The learners will be qualified as artisans and (b) currently there are 1112 learners registered on the MQA system. The Honourable Member will remember that the training of the unemployed started last year and this is a three (3) year training programme (c) learners are still in the learning programme and far from being trade tested to determine who is competent.

Reply received: July 2012

Question 1714

1714. MR S C MOTAU ASKED THE MINISTER OF LABOUR:

(1) Whether her department has conducted studies on the (a) impact of minimum wages on the labour market and (b) growing unemployment in South Africa since 2008; if not, why not; if so, what were the (i) findings and (ii) recommendations in each case;

(2) Whether she has taken any steps in respect of the recommendations that have been made; if not, why not; if so, what are the relevant details?

MINISTER OF LABOUR REPLIED:

(1)(a) Has the Department of Labour conducted a study on the impact of minimum wages on the labour market?

Ø The study was conducted, namely "Addressing the Plight of Vulnerable Workers: The Role of Sectoral Determinations". The study investigated the effects of minimum wages on employment and earnings and also their impact on poverty levels. Firstly, the study investigated whether wage levels of covered workers have increased as a result of the introduction of minimum wage, and secondly, whether wage levels of covered workers have increased as a result of the introduction of minimum wages in the specified sectors.

(i) Findings:

Ø The study showed that overall, real wages of covered workers increased significantly at 2.1 percent per annum over the period studied. It further shows that there were sectors which experienced employment growth over the same period, especially the retail sector; this indicated that wage minima do not have negative effect on employment. However, there may be other factors influencing this result, such as economic growth, the relative price of capital versus labour, and so on, which may impact on labour demand trends.

Ø The study further showed that if everyone currently earning below the minimum wage were instead allocated their relevant minimum, poverty levels would decline. The poverty gap measure, that is, the distance below the poverty line, also shows a decline when full compliance is assumed. However, full compliance with the minimum wage is not enough to completely eradicate poverty. Even if the minimum wage were to be perfectly enforced, poverty levels would not decline to zero.

Ø However, we also learned from the study that enforcement needs to be strengthened in order for minimum wages to have their desired effect.

(ii) There were no specific Recommendations for the Department, however, the Department had commenced steps to strengthen and capacitate the inspection and enforcement services.

(1)(b) Have studies been done on the growing unemployment since 2008?

The Department of Labour has not conducted any studies on the "growing unemployment since 2008". Data on unemployment and employment is collected by Statistics South Africa through their Quarterly Labour Force Survey (QLFS). There were about 3. 9 million unemployed people in quarter 4 of 2008 and as a result of the global financial crisis unemployment increased to 4. 4 million in quarter 2 of 2010. However, the economy saw positive development as 365 000 jobs were created in the year to December 2011, growing employment from 13 132 000 in December 2010 to 13 497 000 in December 2011. While these are not enough jobs for the 4. 2 million people who were unemployed at the time, efforts are being made in creating more jobs.

Reply received: July 2012

QUESTION 1713

1713. Mr S C Motau (DA) to ask the Minister of Labour:

(1) Whether she has been informed of a certain organisation (name furnished) which includes a certain recruitment company (name furnished) that requires applicants' who are being considered for job placements to provide their fingerprints to verify the applicants' (a) identification, (b) qualifications and (c) criminal status for job placements; if so, what are the relevant details; if not,

(2) whether she intends to investigate this matter; if not, why not; if so, what are the relevant details? NW2068E

THE MINISTER OF LABOUR REPLIED

1. I am not aware of such an organisation or know about their recruitment practices.

2. Currently we do not have any legislation that regulates the taking of fingerprints of job seekers to verify their criminal records and therefore we are unable to pursue any such matters.

Reply received: July 2012

QUESTION 1639

1639. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) Whether her department has made any progress with regard to their commitment to the professionalization of the labour inspectorate as stated by a senior official (name furnished) last year; if not, why not; if so, what progress;

THE MINISTER OF LABOUR REPLIED:

The department is making progress with regards to commitment made to the professionalization. As part of the allocation of R60 million received from Treasury, we will be recruiting inspectors soon in line with our commitment. The department is also undertaking an organizational review to look at whether our inspectors are indeed appointed at an appropriate level.

(2) whether her department has made a contribution in respect of an appropriate formal qualification for labour inspectors; if not, why not; if so, what are the relevant details;

MINISTER OF LABOUR REPLIED:

The department has program whereby school leavers that qualify to study for engineering are absorbed into the system and study for a period of four years to qualify with a national Diploma and subsequently a B-tech engineering degree after completing their studies the turnover of this engineers is so high due to the low salary levels, within the department. The department has also internal courses (induction) for a period of six months. The Department has a bursary scheme that all officials can access.

(3) whether her department intends to undertake the (a) formal in-service training in the field of labour legislation and (b) sharing of best practices in terms of labour inspections; if not, why not; if so, what are the relevant details? NW1967E

MINISTER OF LABOUR REPLIED:

The department has the induction program for training the inspectors and in addition to this workshops / conferences / seminars are held where the best speakers on labour market matters are presented. In addition to this, the International Labour Organization has trained our inspectors using its modules which are internationally benchmarked. We have undertaken international study tours so that our inspectors could learn best practices. Each study tour team is made up of 20 inspectors from different provinces.

Reply received: August 2012

QUESTION 1638

1638. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

THE MINISTER OF LABOUR REPLIED:

(2) whether her department has made a contribution in respect of an appropriate formal qualification for labour inspectors; if not, why not; if so, what are the relevant details;

MINISTER OF LABOUR REPLIED:

Reply received: July 2012

QUESTION 1637

1637. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) What is the norm for the number of labour inspectors for each vehicle that should be available at the various labour centers around the country?

MINISTER OF LABOUR REPLIED:

The number of labour inspectors for each vehicle depends on the size of the entity to be inspected. If it is a small entity which require one or two inspectors, then it will be one or two inspector(s) in the car. However for bigger entities 4-5 inspectors per car due to the competence required to do such an inspection.

(2) Whether the subsidized transport scheme for labour inspectors is still available to these staff members; if not, why not; if so, what are the relevant details;

MINISTER OF LABOUR REPLIED:

The subsidized scheme for the inspectors is still available . Inspectors are therefore required to apply for a subsidized vehicle

(3) how does the cost in respect of each inspection compare when the cost of subsidised transport is compared with that of government transport?

MINISTER OF LABOUR REPLIED:

The department currently has a contract with AVIS rent a car at a cost of ±R10 000 per month per car. Subsidized car would work out cheaper for the department but the major problem is the low level of inspector's salaries and the metropolitan areas where the factories are close by therefore most of the inspectors cannot travel the required kilometres as per the Department of Transport Policy that we are currently using.

Reply received: July 2012

QUESTION 1601

1601. Mr M R Sayedali Shah (DA) to ask the Minister of Labour:

Whether any traffic fines were incurred with regard to any of her official vehicles in the (a) 2009-10, (b) 2010-11 and (c) 2011-12 financial years; if so, what (i) amount in fines was incurred in respect of each specified vehicle in each specified financial year and (ii) are the further relevant details in each case? NW1930E

MINISTER OF LABOUR RESPONSE:

Traffic fines relating driver error are received but immediately referred to the relevant driver.

(a) None

(b) None

(i) The amount is zero (0) due the aforementioned.

(ii) All traffic fines were redirected to the Minister's drivers.

Reply received: August 2012

QUESTION 1568

1568. Mr M G P Lekota (Cope) to ask the Minister of Labour:

Whether any register of first-time job seekers was being created and maintained by the

Government to help provide accurate and current information on such job seekers' (a)

Qualifications; (b) age; (c) gender; (d) success or failure to secure permanent employment

and (e) sectors where they were being absorbed; if not, why not; if so, what are the relevant

details? NW1892E

The Minister's Response

The Department of Labour does have an Employment Services System for South Africa (ESSA) that registers job seekers who present themselves to the Department of Labour Centres, visiting points or register online on the internet. ESSA also provides for employers and other organisations to register their vacancies and training opportunities.

(a - c) The ESSA database does have information on the job seekers qualifications, age and gender. In addition, the database has contact details and further information as per the job seeker's CV. The system is also able to match a job seeker with a registered vacancy or opportunity if the profiles correlate. The individual information is kept confidential and is only provided to potential employers who registered a vacancy in the form of a CV when they express an interest on a job seeker.

(d) & (e) ESSA does not provide information on a job seeker's immediate placement in permanent employment or sectors that they are being absorbed in. The future ESSA enhancement modules will incorporate these aspects.

Currently, the Department relies on the individuals or employers feedback. The Department also relies on the Unemployment Insurance Fund (UIF) employer Form U 19 Declaration in those instances where people are formally employed and are registered for UIF.

Reply received: July 2012

QUESTION 1541

1541. Mr A P van der Westhuizen (DA) to as the Minister of Labour:

(1) Whether her (a) department and (b) any of its entities have quality standards for customer support offices with regard to (i) minimum turnaround time for responses to (aa) correspondence and (bb) emails received and (ii) telephone services such as the maximum time to answer calls; if not, why not, in each case: if so, what are the relevant details, in each case;

(2) Whether her department has conducted any (a) studies and (b) auditing on the quality and levels of service rendered by the customer service offices of her (i) department and (ii) any of its entities; if not, why not, in each case: if so, what are the findings in each case?

The Minister of Labour replies:

(1) Indeed, the department is committed to providing a high quality service that is responsive to the needs of its clients. The department of labour renders services to clients through the 125 labour centres across all the nine provinces in the country. In this respect, the department has developed a service delivery standard in order to measure the effectiveness of our services to the clients. For example, my department ensures that each client is serviced within 5-10 minutes while on the queue at the labour centre; creditors are paid within 30 days from the date of receipt of final invoice; each correspondence (DG enquiries) has to be dealt within 14 days; emails are responded within 1-2 days of receipt; telephone should not ring for more than three times before it is answered. These norms and standards are basically in line with the "Batho Pele" principle.

(2) A number of survey reports were produced in the department to assess the level of satisfaction of clients against the service received in my department. Amongst others Client Satisfaction survey report which contains details with regard to the feedback and suggestion received from clients to improve service delivery. Where gaps were identified, provincial departments have also developed and implemented measures to improve on service delivery. However, the overall outcome indicates that more than 90% of clients were satisfied with the service rendered by the department of labour. All reports are posted in the department of labour websites: www.labour.gov.za

Reply received: July 2012

QUESTION 1529

1529. Mr AP van der Westhuizen (DA) to ask the Minister of Labour:

Whether any cases of transgression to the relevant sections in the Basic Conditions of Employment Act regarding the use of child labour, reported to the Department or identified by Labour Inspectors during each of the past three reporting years, if not, why not if so, what are the relevant details

The Minister of Labour replies:

The relevant section of the Basic Conditions of Employment Act that deals with child labour is section 42. Together with forced labour, child labour is one of only two matters where non compliance is criminalized. The relevant action therefore is to refer the matter for prosecution through the criminal court. However it is important to note that the main driving forces of child labour are poverty and lack of education and also important to realize that child labour is almost always hidden and it is at all times very difficult to deal with this matter since it is not only a labour inspection matter.

Therefore in order to deal holistically with child labour, the Department of Labour developed a Child Labour Programme of Action (approved by Cabinet) that seeks to address this issue in a more holistic manner that brings all the relevant role players (Departments of Education, Social development, Justice, SAPS and others) together. The approach therefore is not only premised on removing the child from child labour but also to address those factors that forced the child (family) into child labour. Since the two questions posed by the honourable member are interrelated, it will be dealt in a single answer. The details of cases of transgression either reported to or identified by inspectors are tabulated hereunder.

Table 1: Child Labour Cases

Province	Reporting periods	Reported	Identified	Action Taken / Outcome
KwaZulu Natal	2009/10	0	1	A criminal case was opened at the SAPS, *Outcome* Case finalised against the Department.
	2010/11	0	0
	2011/12	0	1	Investigation conducted *Outcome* Children united with parents and guardians were found for two boys. A case was opened at the nearest police station. Social Welfare as well as Education were involved Follow up is being made with the SAPS Case still pending
Western Cape	2009/10	0	0
	2010/11	1	0	Physical investigation conducted. *Outcome* It was found that the child was in the age group 15 to 18 years and that his conditions of employment adhered to, ad was more favourable than, the BCE Act and the Regulations
	2011/12	1	0	Investigation conducted, reported to Department of Social Development and SAPS. Child placed in a safe house. *Outcome* SAPS stopped proceedings as the child ran away from the place of safety.
Northern Cape	2009/10	0	1	Reported to Police and accepted by NPA for prosecution *Outcome* Guilty verdict: R2 500 fine or 8 months imprisonment, wholly suspended for 5 years.
	2010/11	0	1	Reported to Police and accepted by NPA for prosecution *Outcome* Guilty verdict:12 months suspended for 4 years
	2011/12	0	1	Reported to Police and accepted by NPA for prosecution *Outcome* Case still in process
Eastern Cape	2009/10
	2010/11
	2011/12
Free State	2009/10	0	0
	2010/11	0	0
	2011/12	0	0
Gauteng	2009/10	1	0	Employer prosecuted Case thrown out of court due to the children not available as witness, children send back to the country of origin
	2010/11	1	0	Employer prosecuted Case postponed to 29 Aug for trail
	2011/12	6	0	Cases refer for prosecution *Outcome* Currently with magistrate court
North West	2009/10	0	1	Investigation conducted on 01 July 2009. *Outcome* The matter could not be pursued with Public Prosecutors as the injured employee could not be traced after returning to Eastern Cape.
	2010/11	0	0
	2011/12	0	2	Case 1 A prohibition Notice was issued on the operation of the harvester Subpoena was also issued to the employer to submit investigation report as mandated by General Safety Regulation 9(OHSA Case 2 Matter referred to Department of Social Services for intervention. Directive was issued to the farm owner *Outcome* The cases are being followed up with the State Prosecutor.
Limpopo	2009/10	0	2	Case prosecuted *Outcome* R500.00 Fine
	2010/11	0	2	Case prosecuted *Outcome* No Prosecution from Magistrate Mokerong.
	2011/12	0	1	Case prosecuted *Outcome* Pending
Mpumalanga	2009/10	0	0
	2010/11	0	0
	2011/12	0	0

Reply received: July 2012

QUESTION 1497

1497. Mr L S Ngonyama (Cope) to ask the Minister of Labour:

Whether he intends to take any steps to remedy the exclusion of the unemployed from the National Economic Development and Labour Council (Nedlac) to allow all involved parties, particularly the unemployed, to have an equal say in helping to develop effective policies to promote economic growth, increase participation in economic decision-making to all role players and achieve social equity on a sustainable basis; if not, why not; if so, (a)(i) what steps and (ii) when, (b) how will the unemployed be allowed to take up their seats in Nedlac as the fourth partner and (c) what are the further relevant details? NW1776E

Minister of Labour replies:

Our view as the Department is that unemployed people are members of the society. NEDLAC constituency is made up of employers, organised labour, government and civil society. The civil society constituency is able to articulate the aspirations of the unemployed from the point of view of the society. It is for that reason that as the Ministry, we are content that there is sufficient representation at NEDLAC to deal with wide ranging societal issues.

Reply received: July 2012

QUESTION 1466

1466. Mr E J Marais (DA) to ask the Minister of Labour:

Whether the current Director-General of her department was appointed in (a) a permanent or (b) an acting capacity; if not, what is the position in this regard; if so, when? NW1743E

The Minister of Labour responds:

a) Directors-General in the public service are appointed on contract, not permanent. So the Director-General of Labour was appointed on 5 year contract effective from 10 May 2012.

b) There is no Director-General in an acting capacity in the Department of Labour.

Reply received: July 2012

QUESTION 1436

1436. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) Whether any monitoring mechanisms are in place to ensure that foreign nationals working with temporary work permits are employed in accordance with the conditions of their permits; if not, why not; if so, what are the relevant details;

(2) whether she has found that there are any benefits in expanding the mandate of labour inspectors to also inspect the validity of the work permits of foreign nationals; if not, why not; if so, what are the relevant details;

(3) whether she intends to enter into a memorandum of understanding with the Minister of Home Affairs to cooperate with regard to workplaces where foreign nationals are employed; if not, why not; if so, what are the relevant details? NW1712E

Minister of Labour Replies:

1. The mandate of the Department of Labour is to ensure that all employees irrespective of nationality are accorded the basic rights as provided for by the labour legislations that we administer viz BCEA, LRA, OHSA. Therefore monitoring of work permits of the foreign nationals rest squarely on the shoulders of the Ministry of Home Affairs.

2. Currently we don't envisage expanding the scope of labour inspectors mandate to also inspect the validity of the work permits of foreign nationals. The Department of Home Affairs has a dedicated unit of emigration officials that deal with immigration issues and the verification of foreign national work permits falls within the scope of this unit.

3. Yes we do intend to enter into a memorandum of understanding with the Department of Home Affairs to improve cooperation with regards to the enforcement of the laws that we are responsible for.

Reply received: May 2012

QUESTION 1300

1300. Mr. A P van der Westhuizen (DA) to ask the Minister of Labour:

(1) How many staff members of (a) her department and (b) any entities reporting to it have been disciplined through a formal disciplinary process on the grounds of (i) misconduct and (ii) poor work performance;

Minister's reply:

1.(a)(i) 230

1.(a)(ii) 0

(2) (a) how many of the staff members where poor job performance were ascertained, were assisted to improve their work performance and (b) in what ways were they assisted;

Minister's reply:

2. (a) 26

2. (b) Training interventions with close supervision, EHWP

(3) whether any staff members were dismissed as a result of poor performance; if not, why not; if so, how many staff members were dismissed?

Minister's reply:

3. None were dismissed as a result of poor performance ; they were given warnings

Reply received: July 2012

QUESTION 1217

1217. Mr S Esau (DA) to ask the Minister of Labour:

What amount has her department spent on (a) catering and (b) entertainment (i) in the (aa) 2007-08, (bb) 2008-09, (cc) 2009-10, (dd) 2010-11 and (ee) 2011-12 financial years and (ii) since 1 April 2012? NW1414E

RESPONSE: MINISTER OF LABOUR:

(1) The expenditure incurred for catering and entertainment were as follows:

Financial year	Catering Expense	Entertainment allowance
	R'000	R'000
2007/2008	R 4,934	R 368
2008/2009	R 4,172	R 297
2009/2010	R 5,156	R 345
2010/2011	R 3,089	R 270
2011/2012	R 5,276	R 306
2012/2013 but up to 2012/06/11	R 780	R 46
	R 23,407	R 1,632

Reply received: May 2012

QUESTION 1176

1176. Mr S C Motau (DA) to ask the Minister of Labour:

Whether unemployed persons are directly represented in one of the four main National Economic Development and Labour Council (NEDLAC) constituencies; if not, (a) why not, (b) what is being done to deal with this situation and (c) how can NEDLAC deal with the challenges of unemployment without direct participation of the unemployed; if so, what are the relevant details? NW1369E

Minister of Labour Replied

Unemployed persons are not directly represented in one of the four main NEDLAC constituencies.

(a) Why not?

It is important to first understand how representation at NEDLAC is dealt with:

(i) The National Economic, Development and Labour Council (NEDLAC) was established by the NEDLAC Act, Act 35 of 1994. In terms of the NEDLAC Act section 1 and the NEDLAC Constitution clause 1, the four NEDLAC constituencies are organised Business, organised Labour, the State (which means the Government of the Republic of South Africa) and organisations of community and development interest. This last group is commonly termed the "Community" constituency.

(ii) The NEDLAC Act section 1(e) defines the Community constituency and the NEDLAC Constitution clause 1.11 elaborates on this definition by defining the Community constituency as "those non-governmental organisations of community and development interests identified by the Minister without portfolio … as representing community interests with an interest in relating to development and reconstruction and which have been admitted as parties of the Council".
The terms "non-governmental", "organisations" and the admission requirement need to be noted in particular in the context of this reply.

(iii) The NEDLAC Act and Constitution does not allow Government to intervene in membership issues of any of the other three NEDLAC constituencies.

(iv) The NEDLAC Constitution gives the Community constituency equal representation to that of the other three constituencies at the NEDLAC Annual Summit, Executive Council, Management Committee, Development Chamber and any task teams where it is a member.

(v) No organisation has direct representation at NEDLAC as an individual organisation. All organisations are represented through constituencies whose representatives speak on behalf of the whole constituency, not on behalf of one member of that constituency.

(b) What is being done to deal with this situation?

Unemployed persons are represented through various organisations which form part of the Community Constituency, such as the Women's National Coalition, the South African National Civics Organisation, the South African Youth Council, Disabled People of South Africa, the South African National Apex Cooperatives and the Financial Sector Campaign Coalition.

(c) How can NEDLAC deal with the challenges of unemployment without direct participation of the unemployed?

The challenge of unemployment in the South African labour market is a key policy issue that is considered in many of the discussions about policy that take place in NEDLAC. Effective policy formation does not necessarily require direct representation by affected parties, but relies instead of a good understanding of the issues that a policy seeks to address. Examples of Chamber and task team deliberations that deal with unemployment are as follows:

· Employment task team under the Framework Response to the Economic crisis (Management Committee),

· Confronting Youth Unemployment task team (Management Committee), which deals with the Multi-Pronged Strategy on Youth Unemployment by Department of Economic Development, and the "Confronting Youth Unemployment: Policy options for South Africa" paper by National Treasury,

· International Labour Organisation/South African Decent Work Country Programme (Labour Market Chamber),

· Green Jobs aspects raised under the Climate Change and the Energy task teams (Trade and Industry Chamber),

· Community Health Workers Strategy (Development Chamber),

· Co-operatives Act and subsequent Amendment Bill (Trade and Industry Chamber, Development Chamber)

· Expanded Public Works Programme (Development Chamber in general, Labour Market Chamber regarding wage matters and conditions of work),

Reply received: May 2012

QUESTION 1175

1175. Mr S C Motau (DA) to ask the Minister of Labour:

Whether the targeted programme to clarify the National Economic Development and Labour Council's role among social partners has been launched (details furnished); if not, why not; if so, what are the relevant details with regard to (a) the nature of the programme, (b) who the persons are that was targeted and (c) the outcomes of the programme? NW1368E

Minister of Labour replied:

A critical and ongoing challenge for NEDLAC is how to ensure effective consideration of policy and draft legislation as expeditiously as possible. In other words how to optimise the seeking of consensus between social partners in the shortest a time as possible. This depends on a range of factors including the leadership and organisational capacity of social partners, the nature of the issue, its level of complexity and controversy and the willingness of social partners to seek consensus. The repositioning of NEDAC for more effective social dialogue therefore requires the promotion and fostering of a better understanding of the role and purpose of NEDLAC. It also requires that all Social Partners are committed to seeking consensus and to handle issues expeditiously.

It is within this context that the NEDLAC MANCO has tasked the Overall Convenors to review and finalise an updated NEDLAC protocol. The protocol is intended to govern the way that issues are tabled and addressed at NEDLAC and to ensure that issues are addressed constructively and within set time- frames.

It is anticipated that a Revised Protocol will be finalised by the NEDLAC Manco before the end of July 2012. This will be followed by a comprehensive programme to promote a better understanding of the role and purpose of NEDLAC and the NEDLAC protocol amongst all Social Partners including all relevant government departments and parliamentary bodies.

Reply received: July 2012

QUESTION 1098

1098. Ms. E More (DA) to ask the Minister of Labour:

(1) (a) What are the (i) yearly rental and (ii) floor space of the (aa) current and (bb) previous premises occupied by her department's head office and (b) when (i) was the current building occupied and (ii) does the current lease expire;

(2) Whether her department publicly invited tenders prior to the leasing of the current premises; if not, why not; if so, (a) when, (b) where was it published and (c) which (i) companies and (ii) properties were shortlisted;

(3) What (a) floor space was offered and (b) annual rental was tendered (i) by each shortlisted company and (ii) with regard to each shortlisted property?

NW1286E

RESPONSE: MINISTER OF LABOUR:

(1) Response to question one (1):

(a) (i) No rental is payable due to the fact that the Headquarters of the Department (Laboria House) is accommodated in a state owned building. However the Department pays a quarterly user charge to the Department of Public Works as is applicable for all state-owned buildings occupied.

(a) (ii) (aa) Laboria House is a state-owned building, with an estimated area of 24 262.89m² which consist of seven (7) floors, these including storage/filing space in the three (3) basements areas.

(bb)The previous building occupied by the Department is not known due to the fact that the current building has been occupied for more than 40 years.

(b) (i) The date of occupation of the building is also not known, but the building has been occupied for more than 40 years.

(ii) There is no lease agreement due to the fact that the building is owned by the state.

(2) No public tenders were issued as it is a state-owned building.

(3) Not applicable due to the aforementioned.

Reply received: May 2012

QUESTION 1013

1013. Mr S C Motau (DA) to ask the Minister of Labour:

(1) What was the average turnaround time for first-time applications for financial support from the Compensation Fund (CF) (a) in the (i) 2010-11 and (ii) 2011-12 financial year and (b) since 1 April 2012;

The Minister's response:

The average time for the processing of claims in the fund as per the strategic plan is supposed to be 80days. However due to the following reasons, this target is not always achieved;

· delays by employers to report accidents to the fund

· delays in the submission of medical reports which are crucial for the adjudication of claims and the determination of impairment and compensation payable to employees.

· the manual processing of claims as a result of desperate and un integrated IT systems contributes to further delays.

(a) (i) In the year 2010-11 the average processing time was 139 days

(a) (ii) In the year 2011-12 the average processing time was 149 days

(b) Since April 2012 the average time was 135 days

The decline in the processing time since October 2011 to date was due to the migration of the Fund's IT systems to SAP which happened in October 2011. Since then management have put measures to finalise the implementation of SAP and address all the challenges which amongst others migration of data, training of employees and the implementation of the Change Management processes.

It must further be brought to the attention of the honourable member that, according to section 47(3) of the Act, employers are liable to pay 75% of the employee's salary for the first three months from the date of the accident. After three months, the Compensation Fund reimburses employers and starts paying for loss of salary to the injured employees for the next months. Employees therefore do receive financial support from the first day of absence.

(2) How many applications were (a) received and (b)(i) processed and (ii) not processed (aa) in the (aaa) 2010-11 and (bbb) 2011-12 financial year and (bb) since 1 April 2012;

The Minister's response:

The following is the statistics relating to applications received, processed and not processed in the years in question;

Financial year

Claims Registered or received

Claims Processed /Adjudicated

Claims not processed/captured/adjudicated

Since April 2012

2010/2011

215 493

207 389

11163

168615

2011/2012

141 432 (E-Claims)

22 867 New system (SAP-ICM) from 01 October 2011

164 299 Total claims

149 778 (E-Claims)

10 701 New System (SAP-ICM) from October 2011

160 479 Total Claims

15083

b/f 15083 E-claims

4315 Received April 2012

19398 Total

5836 Processed

b/f 69209 SAP ICM

11299 SAP received

80508 Total

27636 SAP processed

15864 SAP accepted

(3) what (a) are the reasons (i) why all applications were not processed and (ii) for the delays and (b) is the average number of days for which applications were not processed (i) in the (aa) 2010-11 and (bb) 2011-12 financial year and (ii) since 1 April 2012;

The Minister's response:

The reasons as to why applications were not processed in the years in question are dealt with in the answer provided in paragraph 1 above.

(4) what (a) plans (b) measures and (c) strategies have been put in place to improve the turnaround time for CF applications?

The Minister's response:

The plans that have been put in place to improve the turnaround strategy of the fund are as follows:

1. New integrated SAP IT systems have replaced the old system since 01 October 2011 and the efficiencies and effectiveness will be realised.

2. Upfront scanning and indexing of documents

3. The Fund is currently restructuring and to take the services to the stakeholders by decentralising most of its functions to the Provinces.

4. Implementation of the new business processes.

5. Electronic submission of documents

6. Electronic communication and responses by SMS. Faxes and e mails directly to the claimant or the employer for further request of the information.

7. All functions for CF will be performed at the Processing centres based at the Provincial Offices country wide.

8. Implementation of the Provincial Compensation Approved organizational structure.

9. Integrated client data base with other government entities (Home affairs, UIF, SARS and DTI etc.)

Reply received: May 2012

QUESTION 1008

1008. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:

Minister of Labour respond:

Financial year	Accumulative Surplus R'000	Technical Reserve (Unearned Premium Reserve) R'000	Total Equity R'000
2007/2008	R 15,430,562	R 9,911,180	R 25,341,742
2008/2009	R 23,508,039	R 11,053,000	R 34,561,039
2009/2010	R 28,686,561	R 12,485,814	R 41,172,375
2010/2011	R 37,377,522	R 13,256,765	R 50,634,287
2011/2012	R 48,946,758	R 13,515,603	R 62,462,361

Please note that 2011/2012 figures are un-audited and subject to change based on the actuarial valuation report for 2011/2012 which is expected in May 2012.

(2) whether an actuarial calculation has been done on the risks and the amounts needed to cover possible claims against the fund; if not, why not; if so, what where the amounts for the (a) 2007-08, (b) 2008-09, (c) 2009-10, (d) 2010-11 and (e) 2011-12 financial years;

Minister respond:

An actuarial valuation is done annually by an independent actuary as prescribed by the Unemployment Insurance Act No. 63 of 2001, section 9. Calculations are done based on current and expected future economic conditions taking into account all possible risks and the payment history/historical data of the Unemployment Insurance Fund. Provision is made for the following, as per the Unemployment Insurance Fund's actuarial valuation:

Technical reserve for "unearned contribution revenue" (UCR)

The Technical Reserve represents that part of the current year's contributions that relates to risk periods that extend over the following four years. This is reflected as a technical reserve in the statement of financial position.

Based on actuarial valuation a portion of the net surplus is allocated to Technical Reserves on an annual basis as per the Statement of changes in Net Assets. The actuarial valuation is calculated at reporting date using a range of standard actuarial claim projection techniques. Based on empirical data, adjusted for wage inflation and current assumptions are taken into consideration, which may include a margin of adverse deviation.

The Fund adopted a policy on assessing required UCR reserves whereby a weighted average risk rate of 50/30/20 for the most recent three years subject to a minimum of 1.10% of the 2% contributions would be used in determining the applicable risk contribution rate.

Estimated reported benefits payable (ERBP)

Employees became unemployed claimants and started receiving payments during the period under consideration. Provision is made on a prudent basis for the estimated final cost of all claims that had not been settled at the reporting date, less amounts already paid.

The estimated reported benefits payable is calculated at the reporting date using a range of standard actuarial claim projection techniques, based on empirical data and current assumptions that may include a margin of adverse deviation. Adjustments to estimate reported benefits payable and the movement on reported benefits payable are recorded in the statement of financial performance at each reporting date.

The estimated reported benefits payable is calculated using the BCL-method (Basic Chain Ladder Method). The BCL-method involves projecting the total cumulative claim amounts. The liability is calculated by subtracting all amounts already paid to date. Claims handling expenses are taken into account. Actuarial calculations are not discounted for the time value of money.

The liability is derecognised when the beneficiaries' credit days are exhausted or the four year period lapse and a new credit cycle is started.

Claims incurred but not reported (IBNR)

Provision is also made for claims arising from insured events that occurred before the reporting date, but had not been reported by that date. The estimated claims incurred but not reported (IBNR) is calculated at the reporting date using a range of standard actuarial claim projection techniques, based on empirical data and current assumptions that may include a margin of adverse deviation. Adjustments to estimated claims incurred but not reported (IBNR) and the movement is recorded in the statement of financial performance at each reporting date. Actuarial calculations are not discounted for the time value of money.

The liability is derecognised when the beneficiaries' credit days are exhausted or the four year period lapse and a new credit cycle is started.

Financial Year	ERBP/IBNR R'000	UCR R'000	Total R'000
2007/2008	R 2,341,171	R 9,911,180	R 12,252,351
2008/2009	R 2,401,179	R 11,053,000	R 13,454,179
2009/2010	R 3,727,909	R 12,485,814	R 16,213,723
2010/2011	R 3,314,819	R 13,256,765	R 16,571,584
2011/2012	R 3,379,528	R 13,515,603	R 16,895,131

· ERBP = Estimated Reported Benefits Payable

· IBNR = (Claims) incurred but not reported

· UCR = Unearned Contribution Reserve

Please note that the current provision for 2011/2012 is based on the actuarial valuation for 2010/2011 and is subject to change on receipt of the actuarial valuation report which is due in May 2012.

(3) whether her department's projections show any increase in the number of claims compared to the number of claims during the last financial crisis; if not, why must the fund maintain its reserves at the levels that it has maintained in the past five years; if so, what are the relevant details?

MINISTER RESPOND:

As per the actuarial valuation report of 2010/2011, the effects of the economic crisis have subsided hence there has been an increase in surplus growth for the year 2011 when compared to 2010. The economic crisis led to a deeper recession and subsequently higher job losses than the actuaries had anticipated in their economic impact report for the year 2010. The claims in 2011 were however very close to those projected in a mild recession case scenario. In line with the actuaries' expectations, the unemployment claims have since stabilised well within the 24 months' time frame.

The Unemployment Insurance Fund's annual actuarial valuation report is only expected in May 2012. As indicated in (1), the reserves are re-assessed annually based on economic conditions and risks which are taken into account. The Unemployment Insurance Fund will revise its reserves for 2011/2012 based on the actuarial report for 2011/2012.

2012-11-30

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