Questions & Replies: Labour
2013-03-15
THIS FILE CAN CONTAIN UP TO 25 REPLIES.
SEARCH ON THE TOPIC/KEYWORD YOU ARE LOOKING FOR BY SELECTING CTRL + F ON YOUR KEYBOARD
Reply received: December 2013
QUESTION 3118
3118. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
1. Why have bids for various service providers to assist the Compensation Fund in its turnaround processes not been awarded for the third quarter of 2014;
Minister of Labour reply:
Based on the outcome of the investigation by an external company, the process had to be cancelled.
2. Why was not awarding these bids reported to the Audit Committee of the Compensation Fund;
Minister of Labour reply:
There was an investigation commissioned by the Audit Committee on the supply chain management tender process followed.
3. What alternative strategies will the Compensation Fund now pursue in order to improve service delivery? NW3676E
Minister of Labour reply:
A turnaround strategy and plan has been developed. It was presented at SCOPA on the 5 November 2013.
Reply received: December 2013
QUESTION 3122
3122. Mr S Motau (DA) to ask the Minister of Labour:
(a) How many (i) disabled and (ii) able-bodied staff members were employed by sheltered employment factories during the period 31 March 2013 up to the latest specified date for which information is available and (b) what total amount was paid in remuneration to (i) disabled and (ii) able-bodied staff members in the 2012-13 financial year? NW3680E
Minister of Labour reply
The Information requested by the Honourable Member for financial year end 2012/2013 is as follows:
(a)
| No disabled employees | Remuneration paid |
| 03 | R371 719-41 |
(b)
| No of able bodied employees | Remuneration paid |
| 106 | R15 376 631-61 |
Reply received: December 2013
QUESTION 3120
3120. Mr S Motau (DA) to ask the Minister of Labour:
(1) (a) How and (b) by whom in her department was it discovered that there is a mere 5% data storage capacity, which resulted in the delay of implementing the Rand Mutual Assurance software at the Compensation Fund;
Minister of Labour reply:
The exponential data growth from internal system currently in production resulted in the storage capacity being depleted, and it is a temporary setback which is being attended to as a matter of priority.
The storage capacity required for the implementation of the RMA system has been provisioned by implementing a short term solution (removing of non-business related data and archiving of non-business critical data) with a long term solution of refreshing the storage solution and development of supporting data management strategy.
(2) has her department made enquiries about the industry norm for data storage capacity; if so, what is the industry norm;
Minister of Labour reply:
The norm is to ensure that instruments are put in place to manage storage when it reaches 80% utilization and this is done in line with capacity planning considerations, utilization of available storage and growth patterns including storage considerations for upcoming projects.
In this case, the time frame that was available to switch on the Rand Mutual Assurance System became a challenge as it was an emergency intervention.
(3) (a) what upgrades are needed to pilot the Rand Mutual Assurance software at the Compensation Fund, (b) how will this be funded and (c) how much will it cost? NW3678E
Minister of Labour reply:
There are no software upgrades required for the purposes of piloting the Rand Mutual IT system, however, all necessary software configuration and upgrades identified during the piloting process will be evaluated and costed prior to the roll out of the system to the rest of the processing sites.
Reply received: November 2013
QUESTION 2969
2969. Mr M Swart (DA) to ask the Minister of Labour:
(1) How much has (a) her department and (b) each of the entities reporting to her spent on advertisements placed on the Africa News Network 7 (ANN7) news channel;
(2) were these advertisements placed through the Government Information and Communications System? NW3477E
Minister of Labour reply:
The Department of Labour has never undertaken any advertising campaign with the Africa News Network 7 (ANN7).
Reply received: November 2013
QUESTION 2926
2926. Mr M Swart (DA) to ask the Minister of Labour:
(1) How much has (a) her department and (b) each of the entities reporting to her spent on advertisements placed on the Africa News Network 7 (ANN7) news channel;
(2) were these advertisements placed through the Government Information and Communications System? NW3477E
Minister of Labour reply:
The Department of Labour has never undertaken any advertising campaign with the Africa News Network 7 (ANN7).
Reply received: November 2013
QUESTION 2804
2804. Mr. D C Ross (DA) to ask the Minister of Labour:
(1) How much has (a) her department and (b) each of the entities reporting to her spent on advertisements placed on the SABC 24 hour news channel;
(2) Were these advertisements placed through the Government Communication and Information System? NW3309E
The Minister of Labour reply:
| NO. | ENTITY. | REPLY - QUESTION (1) (b) ONLY. |
| 1. | UIF | The UIF did not spend any funds on advertisements placed on the SABC 24 hour news channel. |
| 2. | CCMA | The CCMA did not spend any funds on advertisements placed on the SABC 24 hour news channel. |
| 3. | PSA | The PSA did not spend any funds on advertisements placed on the SABC 24 hour news channel. |
| 4. | CF | The CF did not spend any funds on advertisements placed on the SABC 24 hour news channel. |
| 5. | SEF | The SEF did not spend any funds on advertisements placed on the SABC 24 hour news channel. |
| 6. | NEDLAC | The NEDLAC did not spend any funds on advertisements placed on the SABC 24 hour news channel. |
| 7. | DoL | The DoL did not spend any funds on advertisement placed on the SABC 24 hour news channel. |
Reply received: November 2013
QUESTION 2781
2781. Mr N Singh (IFP) to ask the Minister of Labour:
(1) (a) How many disciplinary cases are outstanding in her department and (b) what is the nature of each case; (2) (a) how long have these cases been on-going and (b) when will most of them be concluded; (3) whether the persons who are being charged have been suspended; if not, why not; if so, for how long will they be suspended; (4)whether the specified persons are still receiving their salaries; if so, what is the total cost of their salaries to the State? NW3283E
The Minister of Labour reply:
a) The Department has 36 outstanding cases in total.
b) Cases vary from sexual harassment, internet abuse, absenteeism, insubordination, misrepresentation, misuse of state funds, fraud, irregular expenditure, bribery, failure to enter into performance agreement, failure to submit leave form, abuse of state vehicle and abscondment.
2. (a) The cases vary from 1 month up to 23 months
(b) Cases will be finalised by end of the financial year 2013/2014
3. Three (3) officials were suspended;
One for the period of 23 months and the other two for 2 months
4. The total cost of their salaries to the state is R95 488. 09 per month
Reply received: November 2013
QUESTION 2765
2765. Mr S C Motau (DA) to ask the Minister of Labour:
With reference to the action plan to turn around the Compensation Fund
(a) what (i)progress has been made, (ii) targets have been missed and (iii) still needs to be accomplished, (b) who is responsible for driving the plan and (c) when will the action plan be completed? NW3265E
Minister of Labour reply:
The Compensation Commissioner oversees the execution of the turnaround process and is ultimately accountable for its success. The Compensation Commissioner has delegated the project management responsibility to the Chief Financial Officer.
The first phase of the turnaround strategy was implemented as follows: -
The service delivery model was developed. Based on the service delivery model the organizational structure was approved in 2011 and is currently being implemented. SAP FI/ICM system was implemented in 2011 and was later enhanced to include Return of Earnings Website. The system is currently being enhanced to provide for the electronic submission of claims and reporting of accidents. The Call Centre system was upgraded in 2012 to improve service delivery by implementing multimedia service offering (sms, fax, email, social media, web chats) and queue management system. As part of the first phase, the Fund engaged in legislative amendment process. The process to amend COID Act was started to align it with other pieces of legislation such as the PFMA and the consultation process is underway.
As a second phase of the turnaround strategy, the DG of the Department initiated another process to appoint an external partner to help deliver on complex project. This process was put on hold due to challenges experienced in the procurement process. However, the Fund is still continuing with other turnaround initiative such as the piloting of the RMA system in an endeavor to improve the processing of claims and payments. The decentralization of COID services to all provinces is continuing and it is envisaged to be completed by 2016. The turnaround process is expected to realize its long term objectives by 2017.
Reply received: November 2013
QUESTION 2764
2764. Mr S C Motau (DA) to ask the Minister of Labour:
(1) (a) How many labour inspectors are in each province and (b) what training has been done in each province since 1 January 2013;
(2) what (a) skills were improved by training, (b) was the cost of the training in each province and (c) training is planned for labour inspectors in future? NW3264E
Minister of Labour reply:
(a) How many labour inspectors are in each province and
(b) What training has been done in each province since 1 January 2013?
| HEAD OFFICE OR PROVINCIAL OFFICE | TRAINING |
| HQ | · Electrical and Mechanical Engineering Regulations (MP and KZN) · Engineering Courses such Electrical, Civil, etc |
| LP | · Steam generators · BCEA training to CSO's · OHS Act |
| FS | |
| GP | |
| CT | · BCEA (14) · LRA (14) · COIDA (30) · NOSA (2) · ND Safety Management (7) · ND LLB (1) |
| EC | · |
| KZN | · Supervisory training · Report writing · Presentation skills · Computer training · |
| NW | · |
| MP | |
| NC |
| HEAD OFFICE OR PROVINCIAL OFFICE | TRAINING |
| HQ | · BCEA (39) · Train the Trainer (62) · Wits (8) · IES Case Management (118) · Asbestos Regulations (34) · Lead Regulation (12) · HCSR (32) · Engineering and Environmental Health |
| LP | · OHS Act (27) · GAR (27) · Investigation of incidents (27) · Investigation techniques (27) · GAR (27) · Prosecution Procedures (27) · COIDA (27) · Steam Generators (25) · BCEA to CSO's (68) |
| FS | · HCSR (2) · Construction Regulations (10) · NIHLR (1) |
| GP | |
| CT | · Lead Regulations (7) · Construction Regulations (5) |
| EC | · HCSR (1) · Construction Regulations (10) · NIHLR (4) · OHS enforcement (25) · OHS forensic investigation (41) |
| KZN | · Mechanical General Machinery Regulations (23) · SHE incident investigations (39) · MHI (23) · Explosive Regulations (23) · Asbestos Regulations (40) |
| NW | · OHS act (10) · Lead Regulations (1) · HCSR (2) · Construction Regulations (2) · MHI regulation (15) · Labour Court enforcement Process (35) · DG review follow up techniques (12) · UI calculations (7) · VIP Payrol (6) · BCEA/Sectoral determination (7) · IES Case Management (3) |
| MP | |
| NC | · OHS Act (2) · Asbestos Regulations (10) · HCSR (2) · Construction Regulations (12) |
(1) What (a) skills were improved by training.
| HEAD OFFICE OR PROVINCIAL OFFICE | Skills improved |
| HQ | · Understanding of the BCEA and Sectoral determinations · Skills to provide training to other employees · Occupational Health and Safety · Improve the knowledge on management of chemicals · Engineering skills and Environmental Health |
| LP | · Investigation of incidents · OHS inspection skills and its regulations · Better understanding of the Court process operation of steam generators · Better understanding of the BCEA and improvement in the resolutions of people complaints |
| FS | · Technical Knowledge improvement and practical exposure on the sites · Official were exposed to situations that could lead to hazardous conditions · Preventative measures implemented. |
| GP | · |
| WC | · Knowledge and information · Technical skills |
| EC | · Forensic investigation · OHS enforcement · Inspection skill and understanding of the regulations |
| KZN | · Inspection skill and understanding of the regulations |
| NW | · Forensic investigation · OHS enforcement · Inspection skill and understanding of the regulations · Financial skill |
| MP | |
| NC | · Inspection in the handling of asbestos · OHS inspection skills and its regulations |
'(b) What was the amount spent on the training?
| HEAD OFFICE OR PROVINCIAL OFFICE | Amount |
| HQ | · Travelling, accommodation and catering · R2.8m |
| LP | · R393 815.00 |
| FS | · R89 000.00 |
| GP | · |
| WC | · R12 580 |
| EC | · R140 830.00 |
| KZN | · Travelling, accommodation and catering · |
| NW | · R35 000.00 |
| MP | |
| NC |
(c) What training is planned for labour inspectors in the future?
| HEAD OFFICE OR PROVINCIAL OFFICE | Future training plan |
| HQ | · Induction training · Learnership · OHS Wits program · Occupational Hygiene training · Occupational Health Training · Engineering and Environmental Health |
| LP | · Enforcement process · UI act · SAP System |
| FS | · NPA prosecution course · Practical incidents investigation · Technical equipment utilization · All regulation under OHS Act |
| GP | · |
| WC | · Learnership · OHS Wits program |
| EC | · Employment Equity Act · OHS regulations · BCEA · UI Act · UI Act – auditors |
| KZN | · |
| NW | · Legal Enforcement · Financial statement Analytical training · Legal presumptions · Advanced Microsoft · OHS Act and Regulations |
| MP | |
| NC | · Induction training · Learnership · OHS Wits program · Occupational Hygiene training · Occupational Health Training · |
Reply received: November 2013
QUESTION 2763
2763. Mr S C Motau (DA) to ask the Minister of Labour:
(a) Which of her department's labour centres have been (a) burglarised or (b) vandalised since 1 January 2013 and (b) what (i) has been (aa) stolen or (bb) vandalised and (ii) is the her department doing to secure its (aa) staff and (bb) its premises? NW3263E
Minister of Labour reply:
i). What has been (aa) stolen or (bb) vandalised and (ii) is the her department doing to secure its (aa) staff and (bb) its premises?
| Province | Labour Centre | Vandalised/Burglarised | What was stolen | Safety Measures taken |
|---|---|---|---|---|
| 1. Kwazulu Natal | Provincial office | 1.PES Business Unit – 8th floor Door locking mechanism vandalised during burglary. Case no. 928/7/2013 2. LMIS & P Business unit – 7th floor, Door locking mechanism vandalised during burglary. Case o.415/08/2013 3. BS Business Unit – 4th floor. Case no. 179/09/2013 | Laptop removed. Laptop and Beamer removed. Laptop removed from car. | The Provincial office is processing the contract of the Electronic security system that will assist in securing staff and assets. A submission was made, reported to SAPS and a suspect handled. A case reported, a submission made to report. A request to replace lost item made. |
| Pietermaritzburg LCO | 1. Break-in through window. Case 709/5/2013 2. Window-pane removed. Case no. 423/09/2013 | Fujitsu monitor removed Computer removed | New contractor services employed: physical security put in place. Report compiled and a request to replace item made. | |
| Ulundi LCO | 1. Vehicle interfered with and item removed. Case 31/03/2013 | Petrol drained | CASE reported to SAPS. New physical security contractor employed. | |
| Richmond LCO | 1. Vehicle interfered with and item removed. Case no. 380/8/2013 | Laptop removed | Case reported to SAPS. Compilation of submission for the replacement of lost item. | |
| 2. Free State | Botshabelo Labour Centre | 02-Mar-13 | Computers x 3 | We have contracted security officers for 24 hours guarding of the premises. |
| Botshabelo Labour Centre | 25-May-13 | Computers x 2 | ||
| 3. North West | 26 August 2013. | 2x Fujitsu Computer Modems. | The incident was reported to SAPS on 26/08/2013 and to Provincial Office on 03 September 2013, and Head Office was made aware on 04/09/2013. The matter was referred to Security Services in H/O to investigate the matter. The department is in the process of procuring the service of Private Security Company, as the DPW terminated their contract without informing the department and the incident happened after the DPW withdrawn the service. | |
| 4. Eastern Cape | Eastern Cape Provincial Directorate did not have any burglary nor has any of its labour centres been vandalised as from 1 January 2013 to date. | |||
| 5. Western Cape | satellite office in Nyanga | Broken into in February 2013 | 5 computers and a fax machine were stolen. | We have private security services for day and night to secure both personal and property |
| 6. Mpumalanga | Standerton | 1 September 2013 | Two computers | · Investigation conducted by Security Services · Computers are in the process of being replaced. · Install alarm system |
| Standerton | 6 October 2013 | Two computers and telephone teltrace | · Investigation conducted by Security services · Replacement of PC requested · Burglary occurred whilst process of alarm system was still in progress | |
| 7. Limpopo | For this province, no burglary or vandalisation occurred at any of our labour centres for the period under review | |||
| 8. Northern Cape Province | There was no burglary reported from January 2013 to date | Security guards are employed at the Provincial Office and Labour Centre Kimberley where there is personnel of about 180. Labour Centre's have personnel of about an average of 16. The Province is currently going to re-install alarm systems at the centres after resolving a current dispute with suppliers where there was no contract. The nature of DoL services does attract criminals as there is nothing to gain for armed robbers. The offices do not deal with any cash. Equipment used by DoL (computers are not user friendly as personal computers). | ||
| Vanderbijlpark (11 June, 5 and 12 August 2013) | Vanderbijlpark x 2 | The Air Conditioner at the back of the office was stolen twice. They did not gain access into the office. | Vanderbijlpark Labour Centre: Has a 24 hour armed response in place. The Land owner has undertaken to install razor wire and palisades on the high rising walls to further secure the area. | |
| Labour Centre Pretoria (30/07/2013) | Pretoria They have gained access to the office and broke a couple of doors to gain further access. | They have stolen mostly IT equipment (computers, printers, monitors) Estimated value of R234 558.49 | Pretoria Labour Centre: They have 2 night security guards that are looking after the premises. We had meetings with Head Office Security Services to discuss the possibility of upgrading security measures at the office. We had information sessions with service providers to provide us with input and quotations what would be required at the office. The possibilities that were discussed were, security cameras, electric wires, burglar proving, laser beams and a full new access control at the entrance with a control room. We have obtained quotations from providers and it ranged between R2 – R4.8 million to upgrade security at the office. An e-mail dated 13 July 2013 was sent to the staff of the Pretoria Labour Centre acknowledging of their memorandum of 30 July 2013. The course of action to deal with their concerns and security matters was addressed. A meeting took place between the CD: PO, DD: LCO and staff on 23 August 2013. | |
| Kempton Park (3 April 2013) | Kempton Park They have thrown a brick through the front window and only took 1 monitor from the desk closes to the window. | Kempton Park The office has an alarm system with 24 hours armed response in place. The building has night guards in place protecting the building. | ||
| Johannesburg (17/09/2013). | Johannesburg The matter is still under investigation from Head Office. | When they moved their IT equipment from the safe and afterwards discovered that a UPS has disappeared. | Johannesburg They have security guards during the day and a 24 hour armed response in place. |
REPORTED CASES ON BURGLARIES AND THEFT AT LABOUR CENTRES
| LABOUR CENTRE | ASSET STOLEN | RECOMMENDATIONS |
| 3 x computer sets and 1 x teltrace. | |
| 2 x thin clients CPU and 1 x modem. | Investigation still on. |
| 11 x Monitors, 11 x CPUs, 2 x Printers, 1 x Plasma screen, 1 x private radio,1 x Voice recorder and 1 x laptop. |
|
| 5x Monitors, 3 X Keyboards and 1 x Fax machine. | Investigation still on. |
| 2 x Monitors |
|
| 1X Monitor. |
|
The above cases were reported to Head Office Security Services, investigation was conducted whereby findings with recommendations were made and send to the relevant CPDO for implementation.
Reply received: November 2013
QUESTION 2753
2753. Dr PJ Rabie (DA) to ask the Minister of Labour:
What steps have been taken against officials who were found responsible for (a) fruitless and wasteful expenditure within the department? NW3253E
Minister of Labour reply:
1. Upon the detection of fruitless and wasteful expenditure, the department follows the following process:
a. Fruitless and wasteful expenditure is identified and recorded in the irregular expenditure register.
b. The official identified to have incurred fruitless and wasteful expenditure is requested to provide, in writing, reasons for the incurrence of the fruitless and wasteful expenditure, as well as reasons why the expenditure should not be recovered from her/him in person.
c. The matter is submitted to the Employment Relations Directorate for investigation and to take disciplinary action if there is sufficient evidence that points to negligence on the part of the official concerned.
d. Should the official be found guilty of fruitless and wasteful expenditure, a letter of acknowledgement is obtained and forwarded to PERSAL Sub-Directorate to institute a process of recovery.
Reply received: November 2013
QUESTION 2687
2687.Mr D.A. Kganare (COPE) to ask the Minister of Labour:
What steps does her department intend to take to ensure greater employment opportunities by making the economy attractive for capital investment? NW3179
Minister of Labour reply:
The Department of Labour is aware that making the economy attractive for capital investment through labour market stability is one of the many critical issues for sustainable growth.
The Honourable Member will appreciate that Government through the Deputy President has taken a number of initiatives on issues relating to the labour market stability. Government has also facilitated a Peace & Stability Framework agreement in the mining sector which seeks to restore stability in the sector with a view to safeguard the existing and future employment opportunities.
I have raised the issue of violent strikes with labour on several occasions, the Department would like to meet with the trade union leadership to discuss the "adversarial nature" of the country's industrial relations and explore ways to arrest the "potential threat" to the system of collective bargaining.
Furthermore, the Department has, as part of its efforts to address the labour market industrial relations climate, planned to host a labour relations indaba. The purpose of the Indaba will be to identify the root-causes of the recent spate of labour unrests and craft interventions to remedy the situation.
Reply received: December 2013
2644. Dr S M van Dyk (DA) to ask the Minister of Labour:
(1) Whether, with reference to her reply to question 1208 on 24 June 2013, any performance bonuses were paid to any other staff in her department in the 2012-13 financial year; if so, what is the total (a) number of staff that received bonuses and (b) amount paid out by her department for these bonuses;
(2) what percentage of outputs were achieved by her department as measured against each target set in its Annual Performance Plan in the 2012-13 financial year? NW3133E
Attached: The Department of Labour Annual Report (Performance Information) for the Financial Year 2012/13
Reply received: September 2013
QUESTION 2580
2580. Mr D A Kganare (COPE) to ask the Minister of Labour:
Questions
1. How many working hours were lost as a result of strikes during the previous financial year?
2. How many of these were protected? How many of these were un-protected strikes?
3. How much did these strikes cost to the economy?
4. In how many of these strikes did the CCMA intervene? How many were resolved as a result of this intervention? How did this intervention affect the CCMA budget?
Minister of Labour reply:
The Department of Labour collects statistics on strikes, with critical issues including reasons for strikes, working hours lost, protected strikes, unprotected strikes and wages lost. The forms that are received at the department (LRA 9.2) result in the publication of the Annual Industrial Action report which is based on a calendar year (January to December) and not a financial year (April to March).[1] The first three answers below therefore apply to the previous calendar year.
- Regarding the number of working hours lost in the 2012 calendar year, the Department of Labour estimates that more than 24.5 million working hours were lost due to work stoppages.
- A total of 99 strikes were recorded over the last 12 months. Of these, 54 strikes were protected and 45 strikes were recorded as unprotected strikes. The unprotected strikes represent 45% of the total number of strikes in 2012.
- As a result of strikes in 2012, more than R6.6 billion were in lost wages.
- The Department does not currently have the details to match the strikes it records with those where the CCMA may make an offer of assistance in terms of section 150 of the Labour Relations Act. It is, however, possible to report that the CCMA made offers of assistance in resolving disputes in the public interest matters in 236 disputes during the period 1st April 2012 to 31st March 2013. In 224 cases, the CCMA offers were accepted and the CCMA was able to successfully conciliate disputes in 132 cases (56%). The number of disputes related to wages and conditions of employment (referred to as matters of mutual interest) that were received by the CCMA during the previous financial year totalled 3636, of which 2218 were settled (61%). In the best of my knowledge there was no financial impact on the CCMA for these dispute resolution services beyond what had already been budgeted.
[1] The Annual Industrial Action Report, once released, will be available at: www.labour.gov.za
Reply received: November 2013
QUESTION 2579
2579. Mr D J Stubbe (DA) to ask the Minister of Labour:
How much has (a) her department and (b) each of the entities reporting to her spent on promotional events organised by The New Age newspaper between 1 September 2012 and 30 August 2013? NW3066E
Minister of Labour reply
| NO. | ENTITY. | RESPONSES. |
| 1. | CCMA | The Commission for Conciliation Mediation and Arbitration (CCMA) did not spend any funds on promotional events organised by The New Age newspaper between 01 September 2012 and 30 August 2013. |
| 2. | PSA | Productivity SA (PSA) has not organised any event nor spent any monies on promotional events organised by The New Age newspaper between 1 September 2012 and 30 August 2013. |
| 3. | NEDLAC | NEDLAC did not spend any funds on promotional events organised by The New Age newspaper between 01 September 2012 and 30 August 2013. |
| 4 | Compensation Fund | The Compensation Fund has spent R7 108.20 for the Ministerial breakfast meeting held on 24 June 2013 |
| 5 | UIF | The Unemployment Insurance Fund spent R7 108. 20 for the Ministerial breakfast meeting held on 24 June 2013 |
| 6 | Sheltered Employment factories | The SEF did not spend any amount on promotional events with The New Age newspaper, or any event whatsoever, between 01 September 2012 and 30 August 2013 |
Reply received: October 2013
2484. Mr D A Kganare (COPE) to ask the Minister of Labour:
Question
(1) How many (i) new trade unions applied for registration in the past three financial years and (ii) were denied registration and (iii) what are the reasons for the refusal;
(2) How many (i) employer organisations applied for registration in the past three financial years and (ii) were denied registration and (iii) what were the reasons for the refusal? NW2973
Minister of Labour replied:
(1) (i) 297 new trade union applied for registration in the past three financial years;
(ii) 248 trade unions were refused registration;
(iii) Reasons for refusals:
a) Applications did not comply with the requirements of the Act and the registration guidelines;
b) Unions were found to be non-genuine trade unions, often established for the gain of individuals
(2) (i) 108 new employers' organisations applied for registration in the past three financial years;
(ii) 38 employers' organisations were refused registration
(iii) Reasons for refusals:
a) Applications did not comply with the requirements of the Act and the registration guidelines;
b) Employers' Organisations were found to be non-genuine employers' organisations, often established for the gain of individuals.
Reply received: October 2013
QUESTION 2482
2482. Mr D A Kganare (COPE) to ask the Minister of Labour:
(1) How many (i) new trade unions applied for registration in the past three financial years and (ii) were denied registration and (iii) what are the reasons for the refusal;
(2) How many (i) employer organisations applied for registration in the past three financial years and (ii) were denied registration and (iii) what were the reasons for the refusal?
Minister of Labour reply:
(1) (i) 297 new trade union applied for registration in the past three financial years;
(ii) 248 trade unions were refused registration;
(iii) Reasons for refusals:
a) Applications did not comply with the requirements of the Act and the registration guidelines;
b) Unions were found to be non-genuine trade unions, often established for the gain of individuals
(2) (i) 108 new employers' organisations applied for registration in the past three financial years;
(ii) 38 employers' organisations were refused registration
(iii) Reasons for refusals:
a) Applications did not comply with the requirements of the Act and the registration guidelines;
b) Employers' Organisations were found to be non-genuine employers' organisations, often established for the gain of individuals.
Reply received: October 2013
QUESTION 2437
2437. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) (a) How many funded positions existed in the information and communications technology section of her department on 31August 2013, (b) how many of these positions were (i) permanent and (ii) temporary;
(2) how many persons does her department estimate will be employed by the information and communications technology section by 31 December 2013;
(3) (a) what level of security classification is required for the incumbent of Chief Information Officer of her department and (b) what is the security classification of the incumbent Chief Information Officer? NW2922E
Minister of Labour reply
(1) (a) There were 131 funded posts in the Information and Communications Chief Directorate as at 31 August 2013. These posts were established based on the finalization of the ICT strategy, and are not filled as yet.
(b) All these are permanent posts.
(2) The number of people to be employed by the ICT section is estimated at 131.
(3) (a) The Chief Information Officer is classified at Top Secret.
(b) The current incumbent's security clearance was submitted on 6th December 2011, and as yet has not been finalized by the State Security Agency.
Reply received: October 2013
QUESTION 2436
2436. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) For the last three financial years at the Compensation Fund, (a) how much was invoiced to the employers as contributions, (b) how much was collected by the income section of the fund and (c) how much was written off as irrecoverable debts;
(2) for the last three financial years at the Compensation Fund, (a) what was the value of cases handed to outside debt collectors, (b) how much was collected by these companies, (c) how much was paid to these companies for their services and (d) how were these debt collector firms chosen;
(3) what was the amount of outstanding debt owed to the Compensation Fund by employers at the end of each of the last three financial years? NW2921E
Minister of Labour reply
QUESTION 1
a) Employer contributions invoiced
| 31 March 2013 | 31 March 2012 | 31 March 2011 |
| R 7,145,615,947.14 | R 3,806,583,547.96 | R 4,539,881,592.89 |
Note: The above figures exclude provision for assessment not raised but include Interest and Penalty charged.
b) Collections by Income Section
| 31 March 2013 | 31 March 2012 | 31 March 2011 |
| R5,279,138,332.85 | R3,074,342,303.05 | R3,118,606,929.30 |
c) Debt written off as irrecoverable debt
| 31 March 2013 | 31 March 2012 | 31 March 2011 |
| R19,871,452.90 | R14,708,624.97 | R 6,055,546.95 |
Question 2
a) Value of cases handed over
| 31 March 2013 | 31 March 2012 | 31 March 2011 |
| R5,332,495,696.81 | R4,893,356,669.29 | R3,993,381,552.27 |
b) Collections by the debt collector
| 31 March 2013 | 31 March 2012 | 31 March 2011 |
| R507,287,978.09 | R768,040,991.88 | R854,266,408.68 |
c) Commission paid
| 31 March 2013 | 31 March 2012 | 31 March 2011 | |||
| Commission (10%) | Commission VAT incl (14%) | Commission (10%) | Commission VAT incl (14%) | Commission (10%) | Commission VAT incl (14%) |
| R50,728,797.81 | R57,830,829.50 | R76,804,099.19 | R87,556,673.07 | R85,426,640.88 | R97,386,370.58 |
Question 3
Procurement process
The tender was advertised in the Government tender bulletin on 29 August 2008. The closing date for the tender was 19 September 2008. Thirteen (13) tender bids were received by the Compensation Fund on the closing date. Three companies were recommended by the Bid Evaluation Committee to be adjudicated by the Bid Adjudication Committee. New Integrated Credit Solutions (Pty) Ltd (NICS) was awarded the tender for debt collection and debtor control management centre services.
The appointment letter informing NICS as the successful bidder on Tender no dcc08/2008 as invited on 29 August 2008 was signed by the former Acting Chief Financial Officer, Ms Puzi, on 14 January 2010. The appointment letter was presented and accepted by NICS on 1 February 2010.
The service level agreement was entered into between Department of Labour – Compensation Fund and New Integrated Credit Solutions and became effective on 19 April 2010.
Question 4
Outstanding balance by employers (Debt Book) in the last three financial periods
| 31 March 2013 | 31 March 2012 | 31 March 2011 |
| R 8,792,068,951.50 | R 5,795,975,255.98 | R 4,979,627,593.77 |
Note: The above figures include interests and penalties as per the debtors' age analysis.
Reply received: October 2013
Reply received: October 2013
QUESTION 2380
2380. Mr D A Kganare (Cope) to ask the Minister of Labour:
(1) (a) What was the cost of auditing (i) her department and (ii) provincial Departments of Labour by the Auditor-General in the (aa) 2010-11, (bb) 2011-12 and (cc) 2012-13 financial years and (b) what was the cost of auditing entities reporting to her by the Auditor-General in the (i) 2010-11, (ii) 2011-12 and (iii) 2012-13 financial years;
(2) Whether any of these departments or entities get audited more than once in the same financial year; if so, what are the relevant details? NW2863E
Minister of Labour reply:
1 (a) As extracted from the Departments of Labour's (DoL) Annual Reports for the financial years in question the DoL and Sheltered Employment Factories (SEF) expended the following in respect of audit fees, which include the Head and Provincial Offices:
(aa) The DoL and SEF were invoiced R19, 048, 000.00 and R2, 415, 033.00, respectively by the Auditor-General in the 2010-11 financial year.
(bb) The DoL and SEF were invoiced R14, 014, 000.00 and R1, 768, 420.00, respectively by the Auditor-General in the 2011-12 financial.
(cc) The DoL and SEF were invoiced R14, 810, 000.00 and R1, 222,136.64, respectively by the Auditor-General in the 2012-13 financial year.
(b) Entities reporting to the Minister:
· Commission for Conciliation, Mediation and Arbitration (CCMA): -
o The audit fees by the Auditor- General, in respect of auditing, was as follows for the respective financial years:
(1)(b)(i) Financial Year 2010/11 – R 2.6m;
(1)(b)(ii) Financial Year 2011/12 – R 2.4m;
(1)(b)(iii) Financial Year 2012/13 – R 2.5m
· Productivity South Africa (PSA): -
o The audit fees by independent auditors, not the Auditor- General, in respect of audit fees was as follows for the respective financial years:
(1)(b)(i) Financial Year 2010/11 – R 522, 580.00.
(1)(b)(ii) Financial Year 2011/12 – R 558, 933.92.
(1)(b)(iii) Financial Year 2012/13 – R 724, 783.26.
· National Economic Development and Labour Council (NEDLAC): -
o The audit fees by the Auditor- General, in respect of auditing, was as follows for the respective financial years:
(1)(b)(i) Financial Year 2010/11 – R 334, 010.00;
(1)(b)(ii) Financial Year 2011/12 – R491, 051.00;
(1)(b)(iii) Financial Year 2012/13 – R 1, 2 million.
· Compensation Fund (CF): -
o The audit fees by the Auditor- General, in respect of auditing, was as follows for the respective financial years:
(1)(b)(i) Financial Year 2010/11 – R9, 797, 000.00.
(1)(b)(ii) Financial Year 2011/12 – R8, 621, 000.00.
(1)(b)(iii) Financial Year 2012/13 – R7, 814, 000.00.
· Unemployment Insurance Fund (UIF): -
o The audit fees by the Auditor- General, in respect of auditing, was as follows for the respective financial years:
(1)(b)(i) Financial Year 2010/11 – R9, 021, 036.25.
(1)(b)(ii) Financial Year 2011/12 – R8, 438, 539.01.
(1)(b)(iii) Financial Year 2012/13 – R4, 464, 354.40.
2.1 The Department of Labour is audited once a financial year by the Auditor-General, however the audit is split into two i.e. interim audit and final audit.
2.2 The SEF is audited once a financial year by the Auditor-General, however the audit is split into two i.e. interim audit and final audit.
2.3 The CCMA was not audited more than once in any of the respective financial years.
2.4 The PSA was not audited more than once in any of the respective financial years, by the independent auditor (not the Auditor-General).
2.5 The NEDLAC was not audited more than once in any of the respective financial years.
2.6 The CF is audited once a financial by the Auditor-General, however the audit is split into two i.e. interim audit and final audit.
2.7 The UIF was not audited more than once in any of the respective financial years.
Reply received: October 2013
QUESTION 2366
2366. Mr DA Kganare (COPE) to ask Minister of Labour
1) How many employees within the department performed remunerative work outside their employment in the department without written permission from the relevant authority as required by section 30 of the Public Service Act?
2) How many performed this work during official hours?
3) How much in total did they earn as a result of performing this remunerable work outside their employment in the department?
4) Has the department taken any action against these employees? If none, why not, If yes what were the details? NW2861
The Minister of Labour replied:
1) The Department during its investigation identified 13 officials who did not declare and were involved in other work outside their employment after working hours.
2) Not applicable.
3) The Department is still conducting investigations with regard to the total amount that each person earned.
4) Disciplinary steps have been initiated and processes are at different stages based on individual cases.
Reply received: October 2013
QUESTION 2345
2345. Mr N L Kwankwa (UDM) to ask the Minister of Labour:
Whether he has taken any steps to develop a social pact with the relevant stakeholders to deal with the strikes which hold back the economy and depress the currency and investor sentiment; if not, why not; if so, what steps? NW2836E
Minister of Labour reply
There are a number of initiatives that are aimed at countering further conflict in the labour market and strengthening social dialogue and collective bargaining. These include initiatives by the President in October 2012 leading to the release of the Full Package of issues to respond to the economic challenges agreed to at a high level dialogue on the Economy; the initiative by the Deputy President resulting in the Framework Agreement for a sustainable mining industry and similar initiatives by the Department of Mineral Resources in respect of the mining industry. The Department has been a participant in all these processes and is in discussion with organized business and labour to consider a Labour Relations Indaba to explore the challenges facing collective bargaining.
Reply received: October 2013
QUESTION 2333
2333. Adv A de W Alberts (FF Plus) to ask the Minister of Labour:†
(1) Whether her Department offers an agricultural producer an appeal process in terms of which an application for a review can be directed to her Department's review tribunal after her Department's adjudication committee amends an application for a corporate permit requesting to appoint a specific number of foreign migrant labourers for certain production processes during specific times in a year from 600 to 300 foreign migrant labourers, notwithstanding such an agricultural producer's compliance with all relevant labour legislation and regulations; if not, what other remedies does her Department offer to such an agricultural producer; if so, what are the relevant details;
(2) whether, in terms of the Immigration Act, Act 13 of 2002, the said agricultural producer must address such an appeal or revised application to the Director-General of the Department of Home Affairs, based on the same facts and motivation; if not, what is the position in this regard; if so, what are the relevant details?
NW2796E
Minister of Labour Reply:
(1) The final decision to issue a Corporate Permit is taken by the Department of Home Affairs after considering recommendations from various Departments based on their respective mandates. The Department of Labour recommendations are informed by the applicant's compliance to conditions of employment as set out in various legislations and our preference to ensure that South African citizens get first preference whenever work opportunities arise given the 25.2 % high unemployment rate that we are currently experiencing.
(2) In case any applicant including the said agricultural producer is dissatisfied with the decision of the Department of Home Affairs on his or her application for a corporate permit, that person should accordingly follow the due process as prescribed in the Immigration Amendment Act No 19 of 2004 to appeal the decision with the Director-General of Home Affairs.
Reply received: October 2013
QUESTION: 2317 NW2765E
2317. Mr S C Motau (DA) to ask the Minister of Labour:
Whether she was invited to the service on 16 August 2013 to commemorate the Marikana killings of 16 August 2012; if so, why did she not attend? NW2765
Minister of Labour replied:
Honourable Mr SC Motau, I was not invited to the service of 16 August on the commemoration of the Marikana killing. However, I was informed of the event and I personally thanked the Chief Executive Officer of Lonmin Platinum for keeping me posted on the developments and initiatives to promote healing and unity within his organisation and the society within which his company operates.
Reply received: October 2013
QUESTION 2313
2313. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) What was the total number of unprocessed claims received by the Compensation Fund on (a) 31 May 2013 and (b) 31 July 2013;
(2) (a) what was the average period to finalise claims submitted to the Compensation Fund by (i) employers, (ii) employees and (iii) medical service providers as at (aa) 31 March 2012 and (bb) 31 March 2013 and (b) what are the different steps in the finalisation of claims received by the Compensation Fund?
The Minister of Labour reply:
Question 1
As at the 31st May 2013 the total number of unprocessed claims received by the Compensation Fund was 25 965 and the total number of unprocessed medical invoices was 104 792.
And as at the 31st July 2013 the total number of unprocessed claims received by the Compensation Fund was 31 698 and the total number of unprocessed medical invoice was 98 567.
Question 2
The average period to finalize claims submitted to the Compensation Fund by employers and employees at the end of 31 March 2012 was 60 days and on the 31 March 2013 was 60 days respectively. For medical service providers as at 31 March 2012 was 60 days and at 31 March 2013 was 60 days
Average period to finalise claims will vary, depending on receipt of complete and correct reports to adjudicate upon liability and process payment of benefits.
Question 3
(a) The different steps in the finalization of claims received by the Compensation Fund is as follows:
1. It is the employers' duty to report all alleged occupational injuries or diseases
2. Once the reports are received, claims are registered, scanned and indexed
3. Claims are work flowed to adjudicators to adjudicate upon liability.
4. On adjudication, a claim may be accepted, repudiated or further information requested.
5. Once accepted a claim will be processed for payment of benefits.
Question 2264
2264. Mr D A Kganare (Cope) to ask the Minister of Labour:
(1) (a) How many bidders were awarded contracts and/or quotations without
submitting declarations of whether they were;
(b) How much did these contracts cost;
(2) whether any action has been taken against these bidders; if not, why
not; if so, what
Minister of Labour reply:
(a) (i) Contract of people employed by the State were three (3) (ii) Contracts of people connected to any person employed by the State were eight (8)
(b) Those contracts amounted to R436 707.64
2. The Department has not instituted action against the identified officials, due to the fact that at present, Financial Declaration is only applicable to members of the Senior Management Service (SMS), and not to other officials.
However, it must be noted that, in having identified the occurrence of such instances regarding own members of staff; the Department has developed an action plan to address this situation. The following has been put in place:
ü All Directors and higher levels declare their interests on an annual basis. Staff of the rank lower than a Director; submit requests for approval for remunerative and non-remunerative work performed outside the Public Service. The Department does not have any control over officials within the Public Service at large, and who are not on the establishment of the Department.
ü Policies and procedures in this regard have been communicated to all staff via the Department's Intranet and internal Email systems. In addition, the Department has referred its database of employees to ITC for evaluation against "CIPRO" records, and this will be performed twice a year.
ü The Department ensures that SBD4 Declaration Forms have been completed and refers the matter to the applicable Department if a false declaration is detected, once a test has been made on the Trans Union (ITC) system. Successful searches have been conducted. The SCM sub-directorate at the Head Office (HO) performed a download of the list of suppliers from the current iQual database for HO. This list of suppliers is to be verified / screened by ITC. Upon verifying HO suppliers – all Provincial Offices of the Department are to follow.
ü A Register for Remunerative/ Non Remunerative work is in place. Disciplinary action will be taken against all officials who have not applied for permission to conduct Remunerative Work. In respect of repeat offenders, stricter disciplinary action will be taken to ensure that a stricter sanction is applied. Reminders to staff of their obligations as employees in respect of requesting permission to conduct Remunerative /Non-remunerative Work, as per the applicable policy, will be continued with in 2013/14. A recommendation will be made to Internal Audit (H/O) to classify this issue as a risk area and incorporate it as part of their audit plan to test / check on CIPRO if staff has any registered businesses.
ü HRM in the Provincial Office's will also explore the possibility of engaging the State Security Agency (SSA) to check, when pre-screening is done during the appointment process, if newly appointed staff have businesses.
Reply received: September 2013
QUESTION 2216
2216. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) How was Siemens IT system given a fair chance by the Compensation Fund in terms of the agreement to develop and implement the missing functions in the SAP software before deciding to pilot another software system; (2) on what (a) study or (b) grounds did the Compensation Fund decide to pilot the Rand Mutual software system; (3) what is the breakdown of costs for piloting the Rand Mutual software system; (4) what is the breakdown of costs for piloting the Rand Mutual software system; (5) how has the Compensation Fund complied with the Public Finance Management Act, Act 1 of 1999, in the procurement of the Rand Mutual software system?
Minister of Labour reply:
- A post implementation audit of the system was performed and it was established that the system was not fully configured and this led to the Fund performing a dual processing of claims i.e on ICM and on Eclaims. The report also indicated that the outstanding work required more time to render the system functional and would cost more than was spent, and that it would be cheaper to procure a new system than finish the work.
- In 2007, the Compensation Fund Commissioner, instituted a commission to investigate a suitable IT system for the Fund, in the market.
The recommendation of the commission was that the RMA IT system was a best fit for the Compensation Fund, providing an end to end processing of claims and payment of benefits, based on the COID Act and its provisions.
- The pilot project was approved for a period of 6 months and will be undertaken at no cost except for incidentals e.g. the cost of travelling, training, etc.
- The costs have not been determined; the system is still to be piloted first for at least 6 months.
- Compliance is based on:
· Preferential Procurement Policy Framework, 5 of 2000, read with SCM Standard Operating Procedures ( section 3.7 and 404.3)
· National Treasury Practice Note No.11 of 2008/2009
Reply received: September 2013
QUESTION 2212
2212. Dr P J Rabie (DA) to ask the Minister of Labour:
Since 1 January 2009, (a) which consultants did her department use to assist sheltered employment factories in complying with Treasury regulation 16A 6.3(g) and (b) how much was each consultant paid? NW2630E
Minister of Labour Reply:
The "Sheltered Employment Factories" currently trading as Service Products, was assisted by consultants from companies as listed in the table below and each of those companies were paid out amounts as listed in the table below:
| No. | (a) Consultants Name | Period | (b) Amount spent |
| 1. | PWC (Assisted in the preparation of financial statements as SEF did not have a Chief Financial Officer [CFO]) | 2009/10 to 2010/11 | R905, 640 |
| 2. | Sifuna Consultants (Provided Chief Financial Officer Services) | 2010/11 to 2012/13 | R2, 472, 558 |
| 3. | KPMG (Appointed and paid by the National Treasury Technical Assistance Unit [TAU] on DOL's behalf to assist in the development of the Business Case) | 2009/10 to 2012/13 | R4, 888, 675 |
Reply received: October 2013
2136. Mr K S Mubu (DA) to ask the Minister of Labour:
(1) Whether any staff member in her department (a) performed work in addition to the responsibilities related to his or her work, outside normal working hours, in the (i) 2008-09, (ii) 2009-10, (iii) 2010-11, (iv) 2011-12 and (v) 2012-13 financial years and (b) has been performing such work during the period 1 April 2013 up to the latest specified date for which information is available; if not, how is it determined whether such work is being performed or not; if so, in each case, (aa) how many staff members and (bb) in what job or work categories are the specified staff members employed;
(2) whether approval for such work was obtained in each case; if not, what are the relevant details; if so, (a) what is the policy of her department in this regard, (b) by whom are such applications considered and approved, (c) how many contraventions of this policy were brought to the attention of her department in the (i) 2010-11, (ii) 2011-12 and (iii) 2012-13 financial years and (d) what steps have been taken against transgressors? NW2558E
The Minister of Labour reply:
(1) In the Department of Labour there are staff members who perform additional work outside normal working hours to their work (remunerated and non-remunerated work outside employment) during the following years:
(i) 2008 – 2009 = 25
(ii) 2009 – 2010 = 30
(iii) 2010 – 2011 = 138
(iv) 2011 – 2012 = 87
(v) 2012 – 2013 = 105
(b)(aa) On 01 April 2013 to date, a total number of 73 applications were received of which 58 were approved (bb) Employees who have applied for permission to perform remunerative work outside of the Department of Labour vary in ranks e.g. Managers, Secretaries, Messengers, Clerical staff, Inspectors, Career and Vocational Counsellors.
2. Approval for such work was granted and only in cases where the remunerated work has a conflict of interest with the Department that the applications were not approved.
(a) The policy in the Department is that a communication in a form of a circular is sent to all staff members requesting them to declare their remunerative and non-remunerative work outside employment in line with the Policy. Each Financial year officials have to re-apply and a new approval is granted. Cases that are identified by auditors are sent to Employment Relations to investigate.
(b) Applications are then signed by the Minister for approval in respect of remunerated work, and by the Director–General in respect of non-remunerative work that is being performed outside the department.
(2)(c)(i) In 2010/11 there were no contraventions, (ii) in 2011/12 there were 24 contraventions and, (iii) in 2012/13 there were 13 contraventions.
(c) Disciplinary steps were taken against the officials ranging from written warning, final written warning and one month's suspension without pay.
Reply received: September 2013
QUESTION 2103
2103. Mrs S V Kalyan (DA) to ask the Minister of Labour:
(a) Does her department prepare quarterly interim financial statements and
(b) are these statements considered by the Audit Committee?
NW2525E
Minister of Labour reply:
(a) The Department des prepare Interim Financial Statements on a quarterly basis. To date the department has prepared quarterly interim financial statements for the previous financial years as well as for the current financial year, of which the statements as at 30 June 2013 were submitted to National Treasury as prescribed by Instruction Note 1 of 2013/14 of the Office of the Accountant General, subsequent statements will be compiled as at the following dates:
· 30 September 2013,
· 31 December 2013, and
· 31 March 2014
(b) The Interim Financial Statements are made available for the Audit Committee meetings.
Reply received: September 2013
Reply received: August 2013
QUESTION 2013
2013. Mr D A Kganare (Cope) to ask the Minister of Labour:
(1) How many farms were visited by labour inspectors in the 2012-13 financial year. (2) How many of these visits were follow-up visits. (3) What are the top five main issues that were identified by the labour inspectors?
The Minister of Labour reply:
1) The Department of Labour in the financial year 2012/13 conducted 158 99 farms inspections and 95 88 farms establishment were found to be compliant.
2) In addition to the number of inspections on farms a further 6311 follow-up inspections were conducted.
3) The top 5 issues of non compliance identified during these inspections are:
1. Employers not complying with minimum wage
2. Written particulars of employment not kept by employers.
3. Farm workers working more than the stipulated ordinary hours of work.
4. Information about Remuneration not updated.
5. Employers not registered with the Unemployment Insurance Fund.
Reply received: September 2013
QUESTION 1932
1932. Mr A.P. van der Westhuizen (DA) to ask the Minister of Labour:
(1) What has been the average performance rating of senior managers in (a) her department and (b) each of the entities reporting to her for the last three financial years?
(2) What is being done to improve this performance?
The Minister of Labour reply:
(1) (a) and (b) The average performance rating for senior managers of the Department of Labour for the past three years has been is as follows: (on a 1 to 5 rating scale)
| 2010-2011 | 2011-2012 | 2012-2013 Average | Aggregated |
| 114% | 117% | In progress | 115% |
· The average performance of senior managers was 114% for 2010-2011, which is categorised as "fully effective" according to the performance ratings in the SMS handbook. However, 2 senior managers scored "above expectations" (130% - 149%) for this financial year.
· The average performance of senior managers was 117% for 2011-2012, which is categorised as "fully effective" according to the performance ratings in the SMS handbook.
· It is essential to point out that fully effective means that the SMS member performs at a satisfactory level and therefore meets the service delivery expectations for which she/he is employed for.
· The above average performance also includes the SMS members from the Unemployment Insurance Fund and from the Compensation Fund.
(2) The Department of Labour has instituted the following initiatives to enhance and strengthen executive performance:
(a) Measurement of performance against set strategic objectives and targets;
(b) Salary increases are based on performance;
(c) Executive Development Programme (EDP) facilitated by PALAMA
(d) Training and development opportunities at tertiary institutions through internal bursary schemes.
(e) Continuous governance and PFMA training;
(f) Attendance of Strategy and Leadership seminars and short courses ;
(g) International study and benchmarking opportunities.
Reply received: August 2013
QUESTION 1831
1831. Mr D J Stubbe (DA) to ask the Minister of Labour:
(1) How many consultants has her department (a) contracted and (b) appointed (i) in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (ii) since 1 April 2013;
(2) how many consultants (a) contracted and (b) appointed by her department (i) in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 and (ii) since 1 April 2013 are (aaa) former officials of her department and (bbb) former public servants? NW2179E
The Minister of Labour reply:
1. The Department has appointed consultants for the periods in question as follows:
Utilisation of consultants for the 2009-10 financial year:
| Total number of projects | Total individual consultants | Total duration: Work days | Total contract value in Rand |
| 15 | 15 | ±835 days | R12,868,269.12 |
Utilisation of consultants for the 2010 -11 financial year:
| Total number of projects | Total individual consultants | Total duration: Work days | Total contract value in Rand |
| 15 | 32 | 2 966 days | R15 549 179.21 |
Utilisation of consultants for the 2011-12 financial year:
| Total number of projects | Total individual consultants | Total duration: Work days | Total contract value in Rand |
| 7 | 53 | 3 404 days | 13 713 377.94 |
Utilisation of consultants for the 2012-13 financial year:
| Total number of projects | Total individual consultants | Total duration: Work days | Total contract value in Rand |
| 12 | 12 | 440 days | R 72 952 737.10 |
2. The Department has not appointed any consultants that were previously employed by either the Department of Labour or in the Public Service.
Reply received: August 2013
QUESTION 1797
1797. Adv L H Max (DA) to ask the Minister of Labour:
What (a) buildings under the administration of (i) her department or (ii) entities reporting to her are national key points and (b) criteria were used to classify them as such? NW2144E
The Minister of Labour reply:
The Department of Labour and its entities does not have any buildings declared as National Key Points.
Reply received: August 2013
QUESTION 1764
1764. Mrs S V Kalyan (DA) to ask the Minister of Labour:
What is the (a) make, (b) model, (c) year and (d) purchase price of each vehicle that was bought for official use by (i) her and (ii) the Deputy Minister since 1 January 2012? NW2111E
Minister of Labour reply:
There were no vehicles bought for the Minister of Labour since 2012.
Reply received: August 2013
QUESTION 1719
1719 . Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) With regard to her reply to question 1208 on 24 June 2013, what criteria are used for determining the awarding of bonuses to senior managers in :(a) her department and (b) each of the entities reporting to her;
(2) What are the specific reasons for no bonuses being given in the (a) 2011-12 and (b) 2012-13 financial years;
(3) why were only two persons given bonuses in the 2010-11 financial year;
(4) How many senior managers in (a) her department and (b) entities reporting to her are eligible for performance-linked evaluation in terms of their contracts:
(5) What role did underperformance play in the lack of bonuses received in the Department:
The Minister of Labour reply:
(1). (a) The criteria that is used for determining the awarding of bonuses to Senior Managers is based on Chapter 4 of Senior Management Service (SMS) Handbook paragraph 15.3 (1) – (8), which gives the guidelines on how to award cash bonuses to deserving SMS members. The paragraph states that for the performance to be regarded as "significantly above expectations" the total score must be 130% -149% and "outstanding performance" 150% -167% and the budget must be available for the payment of these bonuses. All SMS members have to satisfy this criterion before being awarded a performance bonus.
(1) (b) The same criterion that is used in the Department of Labour for determining the awarding of bonuses to Senior Managers is also used for the 2 entities namely, the Compensation Fund and the Unemployment Insurance Fund as they are part of the department.
(2) (a) and (b). The National Review Panel (NRP) which is a moderating body for performance of the SMS members in the Department has as yet not finalized the moderation process for the 2011-2012 and 2012-2013 financial years.
(3). The two SMS members who received bonuses in 2010-2011 worked in the Chief Directorate Financial Management of the Unemployment Insurance Fund (entity). The NRP as the moderating body was convinced that the criterion for awarding of bonuses was indeed met by the two SMS members and that there is sufficient evidence to justify the awarding of the bonuses to the two SMS members.
(4). (a) and (b). There are 83 SMS members in the Department and the two entities reporting to the Minister of Labour. These SMS members are all eligible for performance-linked evaluation.
(5). Under-performance did not play a role at all in the lack of bonuses received. SMS members in the Department and the two entities performed at a satisfactory level and they therefore qualified for pay progression, which is in itself a form of an incentive.
Reply received: August 2013
Reply received: July 2013
QUESTION NO.1592
1592. Mr A van der Westhuizen (DA) to ask the Minister of Labour:
1. (a) Which bargaining councils did not submit annual reports for the (i) 2010-11, (ii) 2011-12 and (iii) 2012-13 financial years and (b) what corrective action did she take in each case;
2. (a) what action is she taking against bargaining councils which collect and invest amounts larger than what is needed to cover liabilities and (b) against which bargaining councils are these actions being taken?
The Minister of Labour to reply:
1. There is no obligation in the Labour Relations Act (no 66 of 1995) for bargaining councils to submit annual reports to the Department. The bargaining councils are required to submit their audited financial statements to the Registrar of Labour Relations (section 54 of the LRA). Audited financial statements typically take some time to prepare after the close of the financial year and no bargaining councils have yet submitted financial statements for the 2012/13 financial year. No action has been taken in this regard as it would be premature at this point in time. For the previous financial year, that is 2011/12, all bargaining councils have submitted their audited statements, except for the following:
i. Metal & Engineering Industries Bargaining Council;
ii. Bargaining Council for the Jewellery and Precious Metal Industry, Cape;
iii. Bargaining Council for the Laundry, Cleaning and Dyeing Industry, Natal;
iv. Bargaining Council for the Grain Industry;
v. Public Health and Social Development Sectoral Bargaining Council;
vi. Motor Ferry Industry Bargaining Council;
vii. National Bargaining Council for the Clothing Manufacturing Industry.
The councils that have not submitted financial statements for the 2010/11 financial year area as follows:
i. Bargaining Council for the Jewellery and Precious Metal Industry, Cape;
ii. Public Health and Social Development Sectoral Bargaining Council;
iii. National Bargaining Council for the Clothing Manufacturing Industry.
Letters have been sent to all bargaining councils who have outstanding financial statements indicating that failure to submit financial statements and to comply with statutory requirements may be construed as ceasing to perform the functions of a bargaining council in terms of section 61(3) of the Labour Relations Act. In the case of the Jewellery and Precious Metal Industry bargaining council, the Registrar is considering cancellation of the registration of that council.
2. Bargaining councils are corporate bodies and are, in terms of the Labour Relations Act (no 66 of 1995), entitled to collect and invest funds collected from the public in the sector and area for which they are registered. They are governed in terms of their constitutions, by employers' organization(s) and trade union(s). To date, the Department has not had grounds to act against a bargaining council for financial irregularities.
Reply received: July 2013
QUESTION NO: 1591
1591. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) What are the findings of the forensic investigation into alleged credit card abuse by a certain person (details furnished) of the National Economic Development and Labour Council?
(2) (a) what actions have been taken based on the investigation and (b) when are these actions expected to be concluded;
(3) whether other persons have been implicated in the report; if so, (a) who are these persons and (b) what positions do they hold?
Minister of Labour reply:
1) I am advised that Nedlac conducted a forensic audit regarding an alleged misuse of a credit card and I am advised that the forensic report will be forwarded to me in my capacity as the Executive Authority for consideration in due course.
2) I will study the report when it is presented to me and decide on what course of action to take and when.
3) It is not possible at this stage to state with certainty the persons that are implicated in the forensic report until such time that I have gone through the report itself.c
1591. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) What are the findings of the forensic investigation into alleged credit card abuse by a certain person (details furnished) of the National Economic Development and Labour Council?
(2) (a) what actions have been taken based on the investigation and (b) when are these actions expected to be concluded;
(3) whether other persons have been implicated in the report; if so, (a) who are these persons and (b) what positions do they hold?
Minister of Labour reply:
1) I am advised that Nedlac conducted a forensic audit regarding an alleged misuse of a credit card and I am advised that the forensic report will be forwarded to me in my capacity as the Executive Authority for consideration in due course.
2) I will study the report when it is presented to me and decide on what course of action to take and when.
3) It is not possible at this stage to state with certainty the persons that are implicated in the forensic report until such time that I have gone through the report itself.
Reply received: July 2013
QUESTION NO:1590
1590. Mr A van der Westhuizen (DA) to ask the Minister of Labour:
Do medical doctors require pre-authorisation to perform certain medical procedures for patients seeking compensation from the Compensation Fund. (i) What are the specific procedures? (ii) What are the rules relating to obtaining authorisation? (iii) What are the difficulties that persons face in obtaining this authorisation?
Minister of Labour reply:
The Compensation Fund pays for reasonable medical aid for medical procedures for a period of not more than 2 years from the date of an occupational injury or commencement of a disease. If any further medical aid is required, a request for further medical treatment is required from the treating medical doctor (pre-authorisation), with motivation for such treatment.
The procedures requested are determined by the treating medical doctor according to the assessment of the patient's medical condition.
· The treating doctor is required to submit a request in a re-opening form to the Medical section of the Compensation Fund.
· The form and the address to which these forms have to be submitted are on the Department of Labour website.
· The enquiry numbers appears on the website in an event the treating medical doctor requires more information on how and where to submit the required form.
· When the request has been submitted, it is adjudicated on and the response faxed to the treating medical doctor.
· The response is sent within 10 working days, if all required medical information has been submitted.
· When there is inadequate medical information supporting the need for the requested procedure.
· When the treating medical doctors do not submit investigative reports.
· When treating doctors do not right legibly and the medical personnel cannot interpret the requests on the forms.
· When the requested procedure is not related to the original injury on duty.
· When the request is not submitted in the official form and not sent to Medical section of the Compensation Fund.
The above will cause delays in adjudicating the request for authorisation
Reply received: July 2013
QUESTION NO:1588
1588. Mr S C Motau (DA) to ask the Minister of Labour:
(a) What steps has she taken to ensure that the National Economic Development and Labour Council (Nedlac) is a forum of national dialogue and (b) which Bills left Nedlac in the 2012-13 financial year without consensus having been reached on all the clauses?
Minister of Labour reply:
(a) The National Economic Development and Labour Council (NEDLAC) remains the forum for national social dialogue in South Africa and has fulfilled this function since its inception in terms of the NEDLAC Act (no 35 of 1994) in February 1995.
(b) The deliberation by social partners at NEDLAC on particular bills does not always result in consensus on all the provisions of a bill. In such cases, the NEDLAC report contains the areas on which agreement has been reached as well as those areas on which there have been disagreements or a party has expressed or recorded a reservation. These NEDLAC reports are then submitted to the relevant portfolio committee at Parliament to be taken into account during its deliberations. In terms of the NEDLAC protocol, a party that has expressed disagreement may pursue the matter further in Parliament.
The following bills were dealt with by NEDLAC during 2012-13:
1. Basic Conditions of Employment Amendment Bill
2. Labour Relations Amendment Bill
3. Employment Equity Amendment Bill
4. Employment Services Bill
5. Merchant Shipping Amendment Bill
6. Customs Control Bill
7. Customs Duty Bill
8. Draft Tourism Bill
9. Independent System and Market Operator Bill
10. BBBEE Amendment Bill
11. Special Economic Zone Bill
12. Spatial Planning and Land Use Management Bill
13. Energy Regulator Act
14. National Electricity Generator Act
Reply received: July 2013
QUESTION NO:1580
1580. Dr P Rabie (DA) to ask the Minister of Labour:
Questions:
How many officials are currently under forensic investigation at (a) the Department and (b) the Compensation Fund;
1 How many consultants are currently being used by (a) the Department and (b) each entity reporting to the Department?
2 How much has been spent in consultants since the beginning of this 2013 by (a) the Department and (b) each entity reporting to it?
3 How much has been spent in consultants since the beginning of this 2013 by (a) the Department and (b) each entity reporting to it?
The Minister of Labour Reply:
1 (a) There are no officials currently under investigation in the Department
(b) Two (2) senior officials are currently under investigation at the Compensation Fund &
UIF has eight (8) officials who are currently under investigation for fraud allegations.
2 (a) There are six consultants that are currently being used by the Department
(b) There are three consultants that are currently being used by the Compensation Fund
There are nine companies rendering consultancy services that are currently being used by the Unemployment Insurance Fund
3 (a) the Department has spent a total amount of R 6 521 593.82 from January 2013.
| Description | Amount | Amount Spent | Names of Suppliers | Office | Duration of the contract |
| To conduct Organisation Design and Review for the Department of Labour, including UIF and CF | R25 573 000.00 | R5 463 297.23 | Deloitte & Touche | Human Resource Management | 01/08/2012-31/07/2015 |
| IT Audit | R2 028 897.36 | R1 058 296.59 | SAB & T | Internal Audit | 01/10/2011-30/09/2014 |
| Appointment of ICT Transaction Advisor | R 4 600 000.00 | R0.00 | Pricewaterhousecoopers | Office of the Chief Information Officer (OCIO) | |
| Preparation of Annual Financial Statement | R 120 270.00 | R0.00 | Sifuna Consulting | Sheltered Employment Factories | 01/03/2013-30/04/2013 |
| Extension contract with Sifuna Consulting for assisting SEF with the finalisation of Annual Financial Statements | R 171 342.00 | R0.00 | Sifuna Consulting | Sheltered Employment Services | 01/05/2013-31/05/2013 |
| Screening of suppliers | R 165 687.60 | R0.00 | Experian | SCM |
(b). UIF has spent a total amount of R 16'070'713.03 from January 2013.
| Description | Amount | Amount Spent | Names of Suppliers | Office | Duration of the contract |
| Actuarial Services | R1'467'468.00 | R0.00 | AON South Africa | Finance : Investments | 11 Oct 2012-10 Oct 2015 |
| AXSONE technical support services | R1'366'529.86 R2 445 300.00 R 698 106.09 | R3 484 619.99 | Computron South Africa | Finance : Systems | 13 Dec 2012-13 Dec 2015 |
| Technical Support Services | R844 216.58 | R 96 290.10 | CQS Technology Holdings | Risk Management | 01 Aug 2012- 01 Aug 2014 |
| Risk Management Services | R2'111'783.00 | R0.00 | Gobodo Incorperated | Risk Management | 24 Jan 2012 – 24 Jan 2015 |
| U-filing system(sub- contracting SARS) Internet filing | R43'217'405.00 | R 9 216 954.90 | Internet Filing (Pty)LTD | Finance | 20 Dec 2012- 13 Mar 2014 |
| Internal Audit Services | R2' 971031.00 | R1 321 888.04 | SAB & T | Internal Audit | Contract extended on a month to month basis until the new service provider is appointed. |
| Technical opinion and advice on GRAP standards | R694 764.00 | R0.00 | Price Waterhouse Coopers | Finance | 12 Feb 2012 -11 Feb 2016 |
| Developing minimum norms and standards | R2'171'400.00 | R1 085 700.00 | Productivity South Africa | Organizational Effectiveness | 01 may 2012- 31 Jul 2013 |
| Investment advisory services | R1'140'000.00 | R865 260.00 | Riscura Solutions | Finance : Investments | 01 Sept 2012 31 Aug 2012 |
The Compensation Fund has spent a total amount of R 36 376 888.09 from the January 2013 to date;
| Description | Amount | Amount Spent | Names of Suppliers | Office | Duration of the contract |
| New Integrated Credit Solution -To conduct Debt Collection | 10% of the collected amount | R28 537 985 .89 | New Integrated Credit Solution (NICS) | Income | 01/08/2012-31/07/2015 |
| KPMG - Accounting Services | R10 000 000 | R7 409 572.50 | KPMG | Office of the Chief Financial Officer | 01/10/2011-30/09/2014 |
| Alexander Forbes -Actuarial Services | R 4 600 000.00 | R429 329.70 | Alexander Forbes | Office of the Chief Information Officer (OCIO) | 01/04/2004-2013/08/31 |
Reply received: July 2013
QUESTION 1542
1542. Mr P J Groenewald (FF Plus) to ask the Minister Labour:
(1) What is the total amount in respect of overdue payments regarding orthopaedic services for occupational injuries in (a) 2000, (b) 2001, (c) 2002, (d) 2003, (e) 2004, (f) 2005, (g) 2006, (h) 2007, (i) 2008, (j) 2009, (k) 2010, (l) 2011 and (m) 2012; (2) (a) why are these amounts not being paid out and (b) when will overdue payments be made;
(3) Whether she will make a statement on the matter? NW1889E
The Minister of Labour reply:
Question 1
What is the total amount in respect of overdue payments regarding orthopaedic services for occupational injuries in (a) 2000, (b) 2001, (c) 2002, (d) 2003, (e) 2004, (f) 2005, (g) 2006, (h) 2007, (i) 2008, (j) 2009, (k) 2010, (l) 2011 and (m) 2012;
The Fund has a record of payments for orthopedic services as follows:
| Medical invoices | Amount | Year | |
| A | 53 330 | 46 551 396.74 | 2000 |
| B | 51 539 | 53 786 645.64 | 2001 |
| C | 64 742 | 79 295 896.44 | 2002 |
| D | 64 480 | 85 232 141.33 | 2003 |
| E | 45 605 | 71 734 066.30 | 2004 |
| F | 45 532 | 87 064 753.43 | 2005 |
| G | 59 238 | 116 468 362.22 | 2006 |
| H | 41 529 | 90 079 905.19 | 2007 |
| I | 49 093 | 110 880 706.38 | 2008 |
| J | 45 120 | 107 337 472.61 | 2009 |
| K | 48 313 | 130 198 693. 69 | 2010 |
| L | 51 591 | 150 609 898.58 | 2011 |
| M | 26 278 | 69 676 206.70 | 2012 |
Question 2
(a) Why are these amounts not being paid out?
The Fund has processed payments for reasonable medical expenses based on invoices submitted by the orthopedic services and the Fund will not know what is still outstanding unless it is submitted for payment.
(b) When will overdue payments be made?
The Fund is still receiving orthopedic medical invoices of the last four years (2010- 2012) and they are being processed as they are received.
Question 3
Whether she will make a statement on the matter?
The above is information as provided by the Compensation Fund.
Reply received: July 2013
QUESTION 1477
1477. Mr J Selfe (DA) to ask the Minister of Labour:
Whether, with reference to her reply to question 516 on 13 May 2013, her department has compiled a report of its inspections at correctional centers in the Eastern Cape; if so, (a) why did her department not furnish the Department of Correctional Services with this report and (b) what were the (i) findings and (ii) recommendations made by her department in the report; if not, why was a report never compiled? NW1820E
The Minister of Labour reply:
An inspection report of the inspections conducted in 11 correctional centers in the Eastern Cape was compiled by the Department of Labour. On 08 March 2013 the Regional Commissioner of Department of Correctional Services Eastern Cape Province was furnished with the inspection report. Furthermore the content of the report was tabled and discussed with the Regional Commissioner and the Heads of the Correctional Centers.
The inspections found a host of contraventions of the provisions of the Occupational Health and Safety Act and its Regulations across the 11 correctional centers. Furthermore a range of notices were issued; such as Contravention Notices; Improvement Notices and Prohibition Notices.
Amongst other things, the Department of Labour recommended that the Department of Correctional Service compile an action plan to correct the identified contraventions. It was further recommended that some of the issues and areas of concern which do not fall with the scope of enforcement of the Inspection and Enforcement Services be resolved by the Department of Correctional Services and the Trade Union concerned. A more detailed list of findings and the subsequent actions of the Department is clearly delineated in the report.
Reply received: June 2013
QUESTION 1451
1451. Mr D A Kganare (Cope) to ask the Minister of Labour:
(1) (a) How many companies lodged applications in terms of the Compensation for Occupational Injuries and Diseases Act, Act No. 130 of 1993, (COIDA) in the (i) 2010-11 and (ii) 2011-12 financial years and (b) how many of these applications were processed;
(2) whether there are any reasons affecting the efficient processing of the applications; if so, what are they;
(3) how much does each employer have to pay to register employees in terms of COIDA;
(4) whether the registration can be backdated; if so, under what conditions? NW1796E
Minister of Labour reply:
1. a)The number of new employer registrations for the financial years:
i.) 2010 – 2011 - 32512
ii) 2011 – 2012 - 24508
2. (a) All registrations were processed during the financial years.
(b) Efficiency problem are (i) incomplete registration forms, (ii) CIPC documents not attached to the registration forms and (iii) late registration of employer due to non-compliance with the COID Act.
3. There is no registration fee charged to employers.
Employers are assessed provisionally on the earnings they declare on the registration forms. Sec 83 stipulates that an employer shall be assessed or provisionally assessed by the Director General according to a tariff of assessment calculated on the basis of such percentage of the annual earnings of his, her or its employees as the Director-General with due regard to the requirements of the compensation fund for the year of assessment may deem necessary.
Employer registrations are not back dated, they are registered with the Fund on the date of receipt of registration forms, however, if the employer has been trading without being registered with the Compensations Fund this constitutes non-compliance. The fund then assesses employers for the last four years of them not been in compliance. In this case then the registration are backdated for four years in case of those who started some years ago and never registered.
Reply received: June 2013
QUESTION 1449
1449. Mr D A Kganare (Cope) to ask the Minister of Labour:
How many (a) labour inspectors are employed in each province and (b) employers have been inspected on average (i) in the 2012-13 financial year and (ii) since 1 April 2013? NW1794E
The Minister of Labour reply:-
In response to the honourable members request for information with regard to inspectors, the table below provides a provincial breakdown of the employment of inspectors in the Department of Labour
(a) Number of Inspectors as at 1st April 2013
| Province | Number of Inspectors |
| Limpopo | 90 |
| North West | 65 |
| Mpumalanga | 74 |
| Western- Cape | 107 |
| KwaZulu- Natal | 217 |
| Free- State | 77 |
| Northern - Cape | 42 |
| Eastern- Cape | 110 |
| Gauteng | 229 |
| Total | 1011 |
(b) Further in response to the honourable members second question:
(i) In the financial year 2012/13, 128594 inspections were conducted in both what is termed Problematic sectors and also High risk sectors. Furthermore. 58947 follow-up inspections were conducted in the problematic sectors and as well in the high risk sectors.
(ii) The inter reporting processes requires that province submit the requested information on a quarterly basis. The first quarter for the new financial will be at the end of June. The Department will then submit to the honourable member the required information for the first quarter.
Reply received: July 2013
QUESTION 1420
1420. Adv L H Max (DA) to ask the Minister of Labour:
What amount did her department spend on (a) promotional items and (b) cocktail receptions on the occasion of her 2013 Budget Vote debate? NW1762E
Minister of Labour reply:
The 2013 Department of Labour Budget Vote debate expenditure for both National Assembly and National Council of Provinces was as follows:
Promotional Items for both NA and NCOP: R99925-00
Lunch after the Budget speech in the NA: R64450-00
Cocktail dinner after the Budget speech in the NCOP: R61535-00
Total: R225 910-00
Reply received: July 2013
QUESTION 1355
1355. Adv A de W Alberts (FF Plus) to ask the Minister of Labour:
Whether she intends to amend section 18 of the Labour Relations Act, Act 66 of 1995, in order also to afford minority trade unions official representation in relation to employers; if not, why not; if so, what are the relevant details? NW1685E
Minister of Labour reply:
In the amendments to the Labour Relations Act that are currently before the National Assembly, there is no amendment proposed to section 18 of the Act. There are, however, two amendments proposed to section 21 of the Act which deals with the exercise of organisational rights in a workplace. The second proposed amendment to section 21 seeks to empower a commissioner in an arbitration to grant a registered trade union that is a minority trade union, certain organisational rights if no other union has been granted these rights and for as long as it is the most representative union in the workplace. The rights referred to are those relating to trade union representatives and disclosure of information.
Reply received: July 2013
QUESTION 1328
1328. Adv L H Max (DA) to ask the Minister of Labour:
(1) Whether (a) she, (b) any specified officials and (c) any other persons have been issued with a government or official credit card (i) in the (aa) 2011-12 and (bb) 2012-13 financial years and (ii) since 1 April 2013; if so, in each instance, what is the (aaa)(aaaa) name and (bbbb) job title of each person to whom a credit card was issued, (bbb) credit limit, (ccc) outstanding amount as at the latest specified date for which information is available, (ddd) monthly expenses incurred for each month since receiving the credit card, (eee) reason for such a person being issued with a credit card and (fff) uses that such a credit card is intended for;
(2) Whether the credit limit of any specified credit card was exceeded at any time since it was issued; if so, (a) whose credit cards are over the limit and (b) what is the reason for the credit card exceeding the limit? NW1658E
Minister of Labour reply:
1. The Department has not issued any official (s) with a Government or official credit card in the 2011/12 and 2012/13 financial years.
2. Given that no credit card was issued, there is no available information in respect of a credit card limit being exceeded or reason thereof.
Reply received: July 2013
QUESTION 1294
1294. Mr S C Motau (DA) to ask the Minister of Labour:
With reference to her reply to question 1639 on 27 July 2012, (a) how many new labour inspectors have been appointed? (b) how many specialist inspectors have been trained since 1 August 2012, and (c) in what areas have they been trained?NW1624E
Minister of Labour reply:
a) We have, in line with the implementation of specialization model, appointed seven (7) specialists in statutory services and two (2) technical assistants (health and hygiene).
We have created 57 specialist posts on our staff establishment and now commenced the process to recruit these specialists.
b) We have trained inspectors in the following areas of specialization;
· Construction/Civil – 75 Inspectors
· Regulators Course (Wits University) – 25 Inspectors
· Explosives Management – 25 Inspectors
· Chemicals Management – 18 Inspectors
· Freedom of Association (ILO) – 30 inspectors
Reply received: July 2013
QUESTION 1292
1292. Mr S Motau (DA) to ask the Minister of Labour:
Through which process, (b) when, (c) why and (d) at what cost did her department conclude a Public-Private partnership (PPP) with Siemens in 2002; what role did Mr. Matthews Phosa play in concluding the PPP? How many (a) staff has been trained since 1 January 2002 by Siemens and (b) how many staff have resigned from the Department and took up employment at Siemens? What is the current value of the infrastructure that her department inherited from the PPP?
Minister of Labour reply:
The Department followed the RFP process in 2001 guided by the National Treasury/PPP Manual, version 1 of 2001 which consists of series of steps as follows: (1) Public announcement, (2) Pre-qualification of bidders, (3) Issue the RFP package, (4) Pre-Bid conference, (5) Receive and evaluate Bids, (6) Negotiation, and (7) Award the project. The generic PPP project life cycle was adhered to, where the Department had to seek authorization from National Treasury in three stages (Affordability, Demonstrating 'value for money', and Financial closure).
The motivation for the PPP was to curb high turnover of public sector IT staff and also leverage on expertise/specialist knowledge and exploit international standards and best practice to improve/transform the Department IT capability. The contract was concluded at R1.2bn over a period of 10 years. The tender process was facilitated by the PPP unit of National Treasury and the conclusion of the process was guided by the generic PPP project life cycle, Treasury Authorisation iii: Financial Closure, which requires the submission of the proposed contract for approval of all budgetary commitments attendant to the agreement to the National Treasury. Mr Matthew Phosa was not an official of the Department to play any role that relates to procurement. Siemens have staff complement of about 190 personnel in different domains with different skills base. Staff from the Department has been transferred to Siemens in the beginning of the contract. The PPP as at March 2013 has left the Department with ICT Asset value of R531 617 million
Reply received: June 2013
QUESTION 1278
1278. Mr P F Smith (IFP) to ask the Minister of Labour:
(1) Whether she has been advised of job losses in the agricultural sector that could arise out of the new agricultural minimum wage; if so, what are the relevant figures;
(2) What was the average agricultural wage actually paid prior to the new determination;
(3) Whether emerging farmers have expressed themselves to her or her department on the consequences that the new minimum wage has for their commercial prospects; if so, to what effect?
Minister of Labour reply:
1. Before the Department of Labour can establish a sectoral determination for any sector, the Employment Conditions Commission conduct public hearings as a standard practice, to listen to employers and workers about their conditions and the impact that the minimum wage will have in the sector. The agricultural sector was no exception to this approach; the Employment Conditions Commission invited both employers and workers to make representations. During the public hearings the employers raised what they considered to be the impact that the minimum wage would have on them, similarly workers also raised the issues relating to their current exposure to low wages and the rampant exploitation that they are subjected to within the sector. As the Minister of Labour, I have the responsibility to listen to both parties and strike a balance between the diverse interests of both parties taking into account the socio-economic interests of the country including possible job losses.
Whilst the investigations did not show any negative impact on Jobs, I took comfort from the fact that those employers, who would genuinely not afford the new rates, would have recourse in the form of exemptions.
2. The actual average wage pre the introduction of the new Determination varied from one employer to the other and from one province to the other. The information collected through the public hearings showed without any doubt that the levels of wages that were paid in the sector were far from being ethically acceptable. The Honourable Member should note that the minimum wage is not determined in a vacuum. There are considerations done prior to the introduction of a minimum wage like the ability of the employer to continue to do business and the vulnerability of workers which may include amongst other things their living standard.
3. For employers that cannot comply with certain provisions of our labour laws, the Basic Conditions of Employment Act of 1995 provides for variation of certain conditions of employment including wages where employers cannot afford payment of such wages.
Reply received: June 2013
QUESTION 1259
1259. Mr. D A Kganare (Cope) to ask the Minister of Labour:
(1) Whether her department views the requests by Western Cape farmers and clothing factories in KwaZulu-Natal to be exempted from wage determination and bargaining councils as a matter of concern; if so, in what sense;
(2) Whether she intends reviewing the whole wage determination regime; if not, why not; if so, NW1506
Minister of Labour reply:
1. The Basic Conditions of Employment Act, 1997 makes provision for flexibility therefore should employers be unable to comply with the prescribed conditions, applications that comply with the pre-requisites as set out in the Act are considered. The pre-requisites include amongst others, financial information, proof of consultation with registered trade unions and/or employees concerned. Each application is considered on its own merits.
Collective bargaining is a system that allows parties to dialogue or negotiate on issues affecting their industries or sectors. What flows out of such interactions are agreements concluded by parties themselves without the interference of Government. It is the requirement of our labour laws that any collective agreement concluded by parties in the bargaining council system should contain clauses for exemptions so as to accommodate the needs of small enterprises as well as struggling employers.
The intention is to allow small employers and struggling enterprises to vary certain conditions of employment so as to remain viable including on wages where employers cannot afford payment of such wages. In terms of our labour laws, I cannot extend a collective agreement to non-parties if a collective agreement does not provide for an exemption clause so as to cater for the needs of small enterprises and struggling employers. Annually, bargaining councils are required to report to the Registrar of Labour Relations on how they have taken the concerns of small businesses into consideration, particularly on exemption applications that they have received from small businesses.
Our labour laws are predicated upon the concept of regulated flexibility which accommodates the needs of small enterprises and struggling employers. Therefore, there is no need for the Department to review the concept of wage determination.
Reply received: June 2013
QUESTION 1231
1231. Mrs P C Duncan (DA) to ask the Minister of Labour:
What amount has her department spent on (a) catering and (b) entertainment in the (i) 2012-13 financial year and (ii) since 1 April 2013? NW1477E
Minister of Labour reply:
(i) The following expenditure was incurred during the Job Summits and Jobs Fairs in all nine provinces and also during the Departmental Medium-Term Review meeting
(a) The expenditure incurred by the Department in respect of catering is R 5, 220, 596.63 for the 2012-13 financial year.
(b) The expenditure incurred by the Department in respect of Departmental Entertainment is R 276, 148.56 for the 2012-13 financial year.
(c) The expenditure incurred by the Department in respect of catering is R 297, 372.61 for the period 1 April 2013 to the 23 May 2013.
(d) The expenditure incurred by the Department in respect of Departmental Entertainment is R 31, 514.38 for 1 April 2013 to the 23 May 2013.
Reply received: June 2013
QUESTION 1208
1208. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
Did any senior managers of (a) her department or (b) any of the entities reporting to her receive performance bonuses in the (i) 2010-11, (ii) 2011-12 and (iii) 2012-13 financial years; if so, what amount was earned in each specified year by each person in each position held by senior managers? NW1454E
Minister of Labour reply:
The following were paid for 2010/11:
1. Mr Ferreira was paid an amount of R42, 780.15,
2. Ms. Briedenhann was paid an amount of R34, 777.38
No payment was made in 2011/12 and 2012/13
Reply received: June 2013
QUESTION 1128
1128. Mr T D Lee (DA) to ask the Minister of Labour:
(a) What total amount has (i) her department and (ii) each specified entity reporting to her spent on conferences in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) what (i) amount was spent on, and (ii) is the breakdown of the expenditure for, each specified conference? NW1361E
Minister of Labour reply:
Public Employment Services:
None
Corporate Services:
None
Labour Policy & Industrial Relations:
As per the attached, please find the relevant information for the DoL: LP&IR Branch inserted below – we are still awaiting inputs from the entities:
Amount spent on each conference:
(b)(i)(aa) – 2009-10 – Hosting of the 2009 Committee meeting of SADC Ministers responsible for Employment and Labour and Social Partners – R1,522,803.48
(b)(i)(cc) – 2011-12 – 12th International Labour Organisation (ILO) African Regional Meeting – R2, 650,115.98
Breakdown of expenditure on each conference:
(b)(ii)(aa) – 2009-10
Hosting of the 2009 Committee meeting of SADC Ministers responsible for Employment and Labour and Social Partners:
| Venues & Facilities | 1,072,153.89 |
| NIA | 67,342.59 |
| SAPS | 137,264.00 |
| Photocopy hire | 6,000.00 |
| Catering | 14,668.00 |
| Car rental | 115,560.00 |
| Overtime | 109,815.00 |
| 1,522,803.48 |
(b)(ii)(cc) – 2011-12
12th International Labour Organisation (ILO) African Regional Meeting:
| SAPS VIP Security | 584,504.10 |
| Dept. of Health: Emergency Services | 75,373.00 |
| Phakisaworld | 416,745.00 |
| Sandton Convention Centre | 579,341.88 |
| Garden Court | 146,499.00 |
| Sheltered Employment | 22,000.00 |
| Accommodation | 700,000.00 |
| Overtime | 125,653.00 |
| 2,650,115.98 |
Inspection and Enforcement Services:
(a)
1. What total amount has
(i) Her department: Department of Labour
(ii) Each specified entity reporting to her spent on the conferences in the: IES Branch
| No | Financial year | Amount spend | Conferences |
| (aa) | 2009/10 | none | |
| (bb) | 2010/11 | ±R3 500 000 | National inspectors conference (EC) |
| (cc) | 2011/12 | ±R4 500 000 | National Occupational Health and Safety Conference (Gauteng) |
| (dd) | 2012/13 | None | |
(b) What amount was spent on
| no | Amount spent on | |
| (i) 2010/11 | ±R1 600 000 | Venue |
| ±R1 900 000 | Travelling | |
| 2011/12 | ±R2 200 000 | Venue |
| ±R2 300 000 | Traveling | |
(c) Is the breakdown of the expenditure for each specified
| no | Amount spent on | |
| (ii) 2010/11 | ±R1 600 000 | Venue |
| ±R1 900 000 | Traveling | |
| 2011/12 | ±R2 200 000 | Venue |
| ±R2 300 000 | Traveling | |
Reply received: June 2013
QUESTION 1096
1096. Mr S C Motau (DA) to ask the Minister of Labour:
(1) What total amounts has (a) her department and (b) each specified entity reporting to her spent on (i) print and (ii) broadcast advertising in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years;
(2) in each case, (a)(i) by which radio or television station were the advertisements broadcast and (ii) in which newspapers were the advertisements published in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) at what cost in each specified case? NW1329E
Minister of Labour reply:
Unemployment Insurance Fund.
(1) What total amounts has (a) her department and (b) each specified entity reporting to her spent on (i) print and (ii) broadcast advertising in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years;
| Summary of amount spent by UIF on Print and Broadcast advertising | |||||
|
| Print | Print | Broadcasting | Broadcasting |
|
| 2009-2010 | 294,223.10 | 1,046,556.63 | 1,323,838.79 | 883,340.40 | 3,547,958.92 |
| 2010-2011 | 724,231.03 | 942,914.52 | 884,530.00 | 1,915,200.00 | 4,466,875.55 |
| 2011-2012 | 1,883,084.86 | 2,992,027.76 | 4,250,324.70 | 4,380,450.00 | 13,505,887.32 |
| 2012-2013 | 1,119,096.40 | 1,313,629.25 | 3,222,727.74 | 4,666,276.64 | 10,321,730.03 |
| Totals | 4,020,635.39 | 6,295,128.16 | 9,681,421.24 | 11,845,267.04 | 31,842,451.82 |
(2) in each case, (a)(i) by which radio or television station were the advertisements broadcast and (ii) in which newspapers were the advertisements published in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) at what cost in each specified case? NW1329E
See attached reply
COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION
REPLY
(a)(ii) The total amount spent each year on conferences is as follows:
(aa) – 2009-10: R604,245
(bb) – 2010-11: R973,341
(cc) – 2011-12: R1,017,225
(dd) – 2012-13: R1,384,236.
(b) (i) (ii)The amounts were spent on the following for each financial year: see attached
NEDLAC
· Attached as an acrobat doc.
SHELTERED EMPLOYMENT FACTORIES
See attached reply
COMPENSATION FUND .
| | BROADCACT | |
| 2009/10 | 647 874.00 | 2 039 211.96 |
| 2010/11 | 1 238 136.26 | 6 392 970.02 |
| 2011/12 | 2 692 587.70 | 8 483 312.90 |
| 2012/13 | 3 096 595.80 | 7 303 256.00 |
See attached info
PRODUCTIVITY SOUTH AFRICA
Amount Spent on Print and Broadcast advertising for ProductivitySA Awareness campaigns
2009-10 2010-2011 2011-2012 2012-2013
| R45 600-00 | R113 083-00 | R266 597-00 | |
| Business Day Financial mail R22 800-00 R22 800-00 24.com | Business Day Financial mail R93 083-00 Independent newspapers (The Star The Cape Times, The Mercury R20 000-00 | Business Day Financial Mail R105 316-00 Independent newspapers (The Star the Cape Times, the Mercury) R167 280 -00 | Magazines only to date |
BROADCAST MEDIA
2009-10 2010-2011 2011-2012 2012-2013
| R319 779-00 | R535 008-00 | R470 045-00 | |
| Radio 702 – R148 323- Kaya FM - R171 456 | Radio 702 – R139 757- Kaya FM R246 548 SABC R148 702 (RSG & SAFM) | SABC (RSG & SAFM) R503 543-00 |
NEDLAC:
(a) What total amount has (i) her department and (ii) each specified entity reporting to her spend on conferences in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) what (i) amount was spent on, and (ii) is the breakdown of the expenditure for, each specified conference? NW1361E
Nedlac hosts and Annual Summit in September of each year.
Total for each entity reported to DoL: NEDLAC
(a)(ii)(aa) – 2009-10 R792 884
(a)(ii)(bb) – 2010-11 R864 999
(a)(ii)(cc) – 2011-12 R579 651
(a)(ii)(dd) – 2012-13 R460 288
Amount spend on each conference: NEDLAC
(b)(i)(aa) – 2009-10 R792 884
(b)(i)(bb) – 2010-11 R864 999
(b)(i)(cc) – 2011-12 R579 651
(b)(i)(dd) – 2012-13 R460 288
Breakdown of expenditure on each conference: NEDLAC
(b)(ii)(aa) – 2009-10 Not Available
(b)(ii)(bb) – 2010-11 Not Available
(b)(ii)(cc) – 2011-12 Not Available
(b)(ii)(dd) – 2012-13 Venue, Travel & Accommodation: R374 746 and Public Relations: R85 542
Reply received: May 2013
QUESTION 1019
1019. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) In the last three financial years at (a) her department and (b) various entities reporting to her,:
(i) how many work hours of computer downtime were there,
Minister of Labour reply:
In response this question, it should be noted that there are number of incidents that can cause downtime of the computer environment which the Department does not have control over, such as cable theft, data line and power outages (electricity).
This response will cover the following two types of down time:
Planned Downtimes:
This is the downtime planned usually on an annual basis to carry out maintenance of the applications and computer environment. This is always done after hours not to impact the operations of the Department.
Unplanned Downtime – outages
This refers to the downtime suffered as a result of unexpected interference of the normal operations of the computer environment which have the potential of impacting the normal operations of the Department. This will cover downtime for major systems during business hours. These downtimes can be classified as follows:
· Full downtime – this is referred to as the total shutdown of the computer operations affecting all users of the Department.
· System specific or area specific downtime – this refers to the unavailability of a specific and sometimes affecting a specific area?
In the past, this was recorded as an incident with the service desk and not separately as an outage as there are Service Level Agreements in place for different service areas. Attached are the records of the new process that classify the recorded downtime incidents. See attached records:
(ii) what percentage of office hours were computer services interrupted;
| Financial Year | Hours Lost | Percentage |
| 2010 - 2011 | Not recorded | |
| 2011 - 2012 | Not recorded | |
| 2012 - 2013 | 112 Hours |
(2) whether computer downtime is recorded; if not, why not;
Computer downtime is recorded and also distinguished between planned/scheduled and unscheduled downtime. Refer to provided information to question 1(i) and 1(ii).
(3) What (a) minimum service levels and (b) penalties for computer downtime are in the contract that (i) her department and (ii) entities reporting to her have with Siemens IT Solutions;
Service Level Agreements (SLA) are in place to manage the performance of services providers. Those SLA's describe the acceptable levels of service to be provided and corrective measures to be taken in an event were service levels are not met. All service operations have their own SLA's based on their criticality to Department operations. Below is the description of the response time based on the criticality of the incident:
· Non critical service
· Critical service
Monthly meetings with the service provider are in place to manage and review performance of the service being delivered by the service provider including enforcing penalties as defined in the SLA.
(4) What is the current bandwidth for regional offices of her department?
The Department data lines have been standardized to start from 256 KB being the smallest line and others with varying bandwidth capacity based on required utilization capacity. See attached list detailing the site and their bandwidth capacity.
Reply received: June 2013
QUESTION 974
974. Dr D T George (DA) to ask the Minister of Labour:
(1) Since 1 January 2011, how many applications under the Promotion of Access to Information Act, Act 2 of 2000, were received by (a) her department and (b) entities reporting to her, and in each case, how many were (i) granted, (ii) refused and (iii) deemed refused under section 27; (2) since 1 January 2011, how many internal appeals under the Act were received by (a) her department and (b) entities reporting to her, and in each case, how many were (i) granted, (ii) refused and (iii) deemed refused under section 77(7); (3) who is the information officer for (a) her department and (b) each entity reporting to her, and in each case, what are the contact details of the officer? NW1197E
Minister of Labour reply:
1. For the Department including Compensation Fund and Unemployment Insurance Fund: 36; Application granted were: 21; Application refused were: 08; Application deemed refused were: 04; Pending: 03
2. Appeals received (Department including Compensation Fund and Unemployment Insurance Fund) were: 04 and they were all refused.
3. The Information Officer of the Department (including Compensation Fund and Unemployment Insurance Fund) is The Chief Information Office
Designation: Chief Information Officer
Postal Address: Private Bag X117,
Pretoria, 0001
Telephone No: +27 012 309 4551
Fax No. : (012) 322 3665
Reply received: May 2013
QUESTION 906
906. Mr D A Kganare (Cope) to ask the Minister of Labour:
Question
(a) How many unprotected or illegal strikes took place in the 2012-13 financial year, (b) which (i) industries and (ii) provinces were affected, (c) how many workers were involved in each case and (d) how many hours of production were lost as a result? NW1129E
Minister of Labour reply:
a. The Department of Labour searches and identifies strikes statistics through daily newspapers then follows up with companies to fill in the LRA 9.2 forms. In 2012 (using calendar year), a total of 99 strikes were recorded in the department strike data system. Out of 99 strikes, 45 strikes were classified as unprotected or unprocedural strikes.
b. b(i). Except in Finance industry, all other industries were affected by unprotected/unprocedural strikes in 2012 as shown in table 1 below.
b(ii). Except in the Free State province, unprocedural strikes were recorded in all the other provinces in the country.
c. The statistics on number of workers involved in each case are shown in table 1 below.
d. According to International Labour Organization (ILO) guidelines, the working hours lost are derived by multiplying the number of employees involved in each stoppage by the number of hours of the stoppage and summing the products thus obtained for all stoppages during the period. The working hours lost per industry are also show in the table below.
Table 1:
| Industry | No of unprotected/unprocedural strikes | Workers involved | Working hours lost |
| Agriculture, Hunting, Forestry and Fishing | 1 | 638 | 34 848 |
| Mining and Quarrying | 8 | 100 847 | 16 503 206 |
| Manufacturing | 10 | 9 138 | 195 959 |
| Community, social and personal services | 13 | 1 964 | 129 772 |
| Construction | 4 | 1 412 | 76 601 |
| Finance | - | ||
| Electricity, gas and water supply | 1 | 6 | 48 |
| Transport, storage and communication | 7 | 4 124 | 346 606 |
| Wholesale and retail: | 1 | 86 | 3 512 |
| 45 | 118 215 | 17 290 552 |
Reply received: May 2013
QUESTION 880
880. Mr S C Motau (DA) to ask the Minister of Labour (NW1099E):
(1) (a) Who was responsible for payment of rent at the Sebokeng Labour Office?
The Department of Public Works
(b) What action was taken against the person responsible for payment of rent?
Office was not closed for none payment. It was closed for the non-signing of a lease agreement. That responsibility lies with the DPW Head Office.
(c) Why was the office closed?
The non-signing of a lease agreement
(d) When was it closed and
The office is closed since 4 April 2013
(e) When will it be re-opened?
As soon as a lease agreement is signed between DPW and the Building owner
(2) How many persons since 1 January 2011 have visited the Sebokeng Labour Office?
Visitors
An average of 3 500 clients visits the Labour Centre per month.
(3) Currently, does a mobile labour office visit Sebokeng; if so,
The Mobile Unit is based at the office and will remain until the office re-0pens.
(a) Where does it operate and
The mobile unit is a truck that operates from Monday to Friday in front of the closed office in the shopping mall.
(b) How often does it visit Sebokeng?
The unit is currently at the office on a permanent basis until the office opens.
Reply received: May 2013
QUESTION 874
874. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) How many applications for exemption from the Wage Determination for Farm Workers were (a) received, (b) rejected and (c) granted respectively between (i) 1 January 2013 to 28 February 2013, (ii) 1 March 2013 to 31 March 2013 and (ii) 1 April 2013 to 30 April 2013;
(2) how many workers fall under exemptions that were (a) granted and (b) rejected from the Wage Determination for Farm Workers respectively between (i) 1 January 2013 to 28 February 2013, (ii) 1 March 2013 to 31 March 2013 and (iii) 1 April 2013 to 30 April 2013;
(3) what assistance is given to employers in applying for exemptions from the Wage Determination of Farm Workers;
(4) how many applications from 1 January 2013 were correctly submitted on the first submission for exemption;
(5) what is the average time for a decision to be made on the application for exemption? NW1093E
Minister of Labour reply:
Question 1
(i) 1 January 2013 to 28 February 2013
(a) 799 applications were only received in February 2013
(b) & (c) No applications were granted or refused between 1 January 2013 and 28 February 2013 as applications were only received in the last week of February 2013. The majority of these applications were received on the 28th of February 2013.
(ii) 1 March 2013 to 31 March 2013
(a) 1019 Applications were received from 1 to 31 March 2013.
(b) & (c) No applications were granted or refused between 1 March 2013 to 31 March 2013 as income statements and balance sheets were requested from applicants to establish affordability as well as proof of consultation and sworn statements stating that none of the employees belong to a registered trade union should no union be involved.
Received financial information and applications were then forwarded to the finance division for analysis and a recommendation.
The above the process was delayed due to the fact that reasonable time had to be allowed for applicants to submit the requested information.
(iii) 1 April 2013 to 30 April 2013
(a) 169 applications were received during this period – A total of 1988 applications for the period February – 30 April 2013.
(b) Out of the total applications received, 18 applications affecting 4991 workers were granted during April 2013; and
(c) 3 applications affecting 735 workers were refused during April 2013 due to affordability.
Total received per province:
| Eastern Cape | 115 |
| Free state | 260 |
| Gauteng Province | 37 |
| KwaZulu-Natal | 139 |
| Limpopo | 200 |
| Mpumalanga | 331 |
| Northern Cape | 147 |
| North West | 146 |
| Western Cape | 613 |
| Total | 1988 |
(2) On 3 May 2013, out of the total, a further 458 applications involving 31074 workers
were refused due to the failure to submit requested additional information i.e. proof
of consultation and/or financial statements within the time frame given.
505 applications from applicants, who submitted additional information as requested, were referred for recommendation on affordability.
(3) An instruction page explaining all requirements were made available on the Department's web-site. Application forms with an explanatory page were forwarded to farmers on request.
Applicants that did not submit proof of consultation and/or financial information were requested in writing to submit information within a reasonable time frame.
Officials responded to telephonic and electronic enquiries within 24 hours during this period and the processes were explained.
(4) None of the applications received, fully complied with the prescribed conditions on first submission. Either financial statements and/or sworn statements stating that none of the employees affected by the application belong to a registered trade union, had to be requested for all applications that were received.
(5) The average time for a decision to be made on an application to vary wages is approximately 8 to 12 weeks broken down as follows.
· Additional information is requested within 5 to 10 days of receipt.
· Reasonable time is granted to submit the requested information 7 - 21 days.
· Referral for a financial recommendation within 5 to 10 days of receipt of financial statements
Recommendation on affordability within 30 days
Reply received: May 2013
QUESTION 873
873. Mr S C Motau (DA) to ask the Minister of Labour (NW1092E):
(1) (a) How many Labour Offices have been closed since 1 March 2013, (b) what are the reasons for each closure, (c) when did each closure occur and (d) how is her department catering for the needs of persons affected by the closure;
(2) Whether she will reopen any of the labour centres that have been closed?
See the reply attached
1. Possible future closures;
- Labour Centre Taung was locked only for two days, namely Friday 01 Feb 2013 and Monday 04 Feb 2013 following a dispute between the Landlord and DPW on payments. It was however re-opened on 05/02/2013 after engaging the stakeholders and is operating normally. In the meantime, DPW is busy finalizing the procurement of alternative office accommodation for the Taung Labour Centre
- Labour Centre Bronkhorstspruit - threats of closure were received, but no action was taken.
- In KZN, there are no Labour centres that have been closed during this period except the change in premises for certain visiting points i.e. Paul Pietersburg; New Hanover and Howick as the leases expired.
- No closures in the following Provinces: Eastern Cape , Limpopo, Western Cape and Northern Cape
Reply received: May 2013
QUESTION 868
868. Mr S C Motau (DA) to ask the Minister of Labour:
How many persons will the proposed Mount Ayliff labour centre serve?
NW1087E
Minister of Labour reply:
Mount Ayliff Labour Centre is in the Alfred Nzo District Municipality, servicing Mount Frere, Ntabankulu, Matatiele and Mount Ayliff itself.
ü The total population of Alfred Nzo is - 832 121
ü Population of Economically active is - 441 078
ü Population of Employed people is – 39 253
Reply received: May 2013
QUESTION 820
820. Mr D A Kganare (Cope) to ask the Minister of Labour:
How many (a) new commissioners were trained by the Commission for Conciliation, Mediation and Arbitration during the past four years, in each province and (b) of these commissioners are (i) part-time and (ii) full-time employed? NW1036E
The Minister of Labour reply:
The Commission for Conciliation, Mediation and Arbitration trained new commissioners as follows in the past four years 2009 to 2012 as indicated below:
| Commissioners Trained over the Period 2009 to 2012 In Different Regions | |
| Region | Total |
| Ekurhuleni | 7 |
| Tshwane | 16 |
| JHB | 50 |
| Limpopo | 4 |
| Mpumalanga | 16 |
| N/West | 13 |
| Free State | 20 |
| KZN | 40 |
| E/Cape(PE &EL) | 28 |
| W/Cape | 40 |
| N/Cape | 6 |
| TOTAL | 240 |
| (a) Commissioners trained over the period 2009 to 2012,are employed as part-time and full time in the different regions is indicated below:
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reply received: May 2013
QUESTION 768
768. Mr P Ntshiqela (Cope) to ask the Minister of Labour:
How many persons who were included in the numbers of employed in the most recent Labour Market Survey were participants in the Work Programme?
Minister of Labour reply:
The Labour Market Survey is conducted by Statistic South Africa and it includes every person employed in South Africa. I am not sure what the Honourable member is referring to when he says number of employed in the recent Labour Market Survey were participants in the work programme, which programme is the Honourable member referring to? Sharing light to what the Honourable member is referring to will assist in answering the question.
Reply received: May 2013
QUESTION 760
760. Mr D A Kganare (Cope) to ask the Minister of Labour:
(1) How many applications have been made by farm owners requesting to be exempted from the recently promulgated wage determination affecting farmworkers have been (a)(i) received and (ii) processed by her department in each province and (b) how many requests were (i) granted and (ii) not granted exemption;
(2) whether there is any procedure in place for workers to follow in order to express their views in relation to the application of their employer for exemption; if not, why not; if so, what are the relevant details? NW970E
The Minister reply:
(a)(i) Since the 1st March 2013, the Department has received a total of 1737 exemption applications from farmers throughout the country.
Number of applications received as per the province:
Eastern Cape 105
Free state 169
Gauteng 32
KwaZulu Natal 130
Limpopo 184
Mpumalanga 313
Northern Cape 110
Western Cape 585
North West 109
(b) Of the 1737 applications received,
(b)(i) • 210 applications are currently under the scrutiny of the Departmental Finance section to determine the affordability of the minimum wages by farmers.
Per province:
Eastern Cape 6
Free state 7
Gauteng 5
KwaZulu Natal 11
Limpopo 14
Mpumalanga 21
Northern Cape 9
Western Cape 136
North West 1
Before the end of April, these applications would have been finalized and letters granting or refusing the applications will be posted to the farmers concerned. The delay in the finalization of these applications was due to the information coming in, incrementally.
(b)(ii) 1527 did not comply in terms of additional information which relates to sworn statements indicating that none of the employees affected by the application are members of a registered trade union or financial related information (income statement and balance sheet).
These employers were given until the end of April to submit additional information. Failure of which would be regarded as finalized and therefore refused.
(2) Regarding the procedure for workers to follow in order to express their views in relation to the application by their employer for exemption, the law clearly stipulates that an exemption may be issued if the application has the consent of every registered trade union that represents the employees in respect of whom the exemption is to apply. If no consent is obtained, an exemption may be issued if a copy of the application together with a notice stating that representations may be made to the Minister has been served on the trade union.
In case where the majority of employees are not represented by a registered trade union, an exemption may be issued if the employer has taken reasonable steps to bring the application and the fact that representation may be made to the Minister to the attention of those employees.
Should representations or objections be received, the points of dissension will be taken into account when assessing the application.
Reply received: May 2013
QUESTION 736
736. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) What business software system does the Compensation Fund use;
(2) (a) what procurement process was followed to choose the current system and (b) when was it implemented;
(3) how much has been paid to date for the current system in respect of (a) software licences, (b) support development and (c) staff training;
(4) (a) whether the Compensation Fund intends to change its business software system in the future, (b) how will it be procured and (c) what is its estimated cost? NW944E
MINISTER OF LABOUR'S REPLY :
(1) The Fund is currently using the SAP software for its claims and financials.
(2) (a) The current system was part of the deliverables of the Department's Public Private Partnership with Siemens and was designed and implemented by them.
(b) The systems were implemented in October 2011.
(3) The cost of the systems, support and training was bundled into the Public Private Partnership agreement and did not have separate cost allocations. The licensing for SAP is held by the Department of Labour and to date R12 million has been paid for licensing costs.
(4) (a) The Fund is currently looking to change the system and a pilot process is underway in this regard.
(b) The procurement process will be determined once the pilot has been finalised
(c) The costs will be determined once the pilot process has been completed and there is a fit to the Fund's requirements.
Reply received: June 2013
QUESTION 734
734. Mr S C Motau (DA) to ask the Minister of Labour:
(1) Who (a) are the members of the Treasury Task Team investigating the Compensation Fund and (b) is its head;
(2) which of these members is responsible for driving her action plan for the Compensation Fund? NW942E
Minister of Labour reply:
The Minister is not aware of the investigation being conducted by National Treasury however the Honorable Member may refer this question to the relevant department.
Reply received: June 2013
QUESTION 733
733. Mr SC Motau (DA) to ask the Minister of Labour:
1. What is she doing to stop fraudulent letters of good standing from the Compensation Fund
2. How many letters of good standing are awaiting to be cleared
3. When will this backlog be cleared?
Minister of Labour reply:
1. The Risk Management of the Fund is responsible for ensuring that no fraud is committed and where it is found that officials have committed fraud, the Fund institutes disciplinary action according to the laws and regulations governing Public Service
In the interim in order to minimise opportunities for fraud, the Fund have the following measures and controls:
1. Implemented new system controls
2. Reviewed the letter of good standing policy to close gaps and ensure that only complying employers are issued with the letter.
3. Conducted training for officials in the fund
4. Improve security.
2. The request to the Letter of good standing is done daily as and when employers request them. The Fund must ensure that all requests meet the requirements / criteria set out. Between Jan and April 2013 the fund has received and issued letters of good standings as follows:
| MONTH | GOODSTANDING LETTERS REQUESTS | GOODSTANDING LETTERS ISSUES |
| January | 2200 | 1323 |
| February | 2377 | 2351 |
| March | 1982 | 1975 |
| April | 735 | 643 |
| Total | 7294 | 6292 |
3. The turnaround times for issuing letter of good standing is 5 days, to allow the fund to quality assure all requests and to date all outstanding letters will be cleared once the employers have met the 2012 return of earnings compliance requirements. All efforts are being done to meet the customer expectations and provide high levels of customer experience.
J� a'0�i X�k > follow-up inspections were conducted in the problematic sectors and as well in the high risk sectors.
(ii) The inter reporting processes requires that province submit the requested information on a quarterly basis. The first quarter for the new financial will be at the end of June. The Department will then submit to the honourable member the required information for the first quarter.
Reply received: April 2013
QUESTION 663
663. Mr M G P Lekota (Cope) to ask the Minister of Labour:
Whether government measures to stimulate job creation has had any positive impact on unemployed young South African citizens in the 18-35 years age group during the period July 2009 to March 2013; if not, why not; if so, how many young South Africans, according to their respective qualifications, had (a) full-time employment, (b) part-time employment, (c) self-employment and (d) no employment? NW824E
Minister of Labour reply:
Youth unemployment amongst the 18 -35 years age group is both a South African National and an International problem that governments departments locally and across the world are implementing various policies, measures and interventions as part of their response to addressing this challenge.
Our government has implemented a number of major infrastructural projects across various Departments such as the EPWP, rebuilding of the 2010 stadiums, rehabilitation of old roads and building of new roads, Gautrain, Airports, electricity power stations etc, that have provided short term, full time and self-employment to youth and other work seekers. Departments and statutory bodies where relevant, have provided detailed information in their Annual Reports tabled at Parliament since 2009. As part of my department's contribution towards addressing youth unemployment problem and based on the resources and programs that fall within the ambit of the legislation that we oversee, we contributed as follows:
· During the 2009/10 financial year the Department of Labour, through its Employment and Skills Development Services provided training to 11 928 unemployed work seekers, 6 933 of whom received accredited training and various qualifications levels. A total of 232 939 work seekers who qualified during and before 2008/09 were placed in employment on most of the infrastructure projects that were underway at the time. The Umsobomvu Youth Fund was transferred from my Department and merged with the National Youth Commission to form the National Youth Development Agency whilst the skills development administration, powers, and functions were transferred through a Presidential Proclamation to the Ministry of Higher Education and Training with effect from 1st November 2009.
As from 2010, the Employment Services functions that remained with the Department continued to provide the following free services namely:
- Registration of work seekers, work opportunities & other placement opportunities, assessment, employment counseling and matching of work seekers with available placement opportunities.
- Provision of specialized services to specific categories of work seekers including youth, new entrants into the labour market, disabled persons & rural and urban communities who find it very difficult to enter the labour market.
- Facilitate the exchange of information amongst labour market participants including employers, work seekers, PEA's, SETA's & training providers.
During the 2010/11 financial year, a total of 483 038 work seekers with various qualification levels were registered on the Department's Employment Services System of SA (ESSA). 70% of those registered were referred to employment counselling, placement, and other services. The Department also subsidized the salaries of placement officials in various councils of people with disabilities to the tune of R681 000. As a result these councils registered a total of 1 746 unemployed people with disabilities and placed a total of 961 thereof.
During the 2011/12 financial year, a total of 553 883 work seekers were registered, of these, 222 956 of were provided with employment counseling and another 96 505 were referred and or placed in registered opportunities.
At the end of Quarter 3 of the 2012/13 financial year, a total of 427 349 work seekers were registered, of these 52 223 youth (that included 35 352 women and 1 221 people with disabilities) were referred to other opportunities or placed in employment.
Reply received: April 2013
QUESTION 642
642. Mrs. A. Schäfer (DA) to ask the Minister of Labour:
(1) How many claims were instituted against her department
(a) In the following financial years;
(i) 2007-08 =there were no systems put in place to track the number of cases received during this financial year.
(ii) 2008-09 = 4
(iii) 2009-10 = 7
(iv) 2010-11 = 6
(v) 2011-12 = 3
(b) during the period 1 April 2012 up to the latest specified date for which information is available; = 12
(2) In respect of each financial year
(a) What amount was claimed?
(i) 2007-08 =no systems put in place to track cases
(ii) 2008-09 = R389 176.33
(iii) 2009-10 = R2, 413 320.92
(iv) 2010-11 = R2, 144 123.60
(v) 2011-12 = R104 837.91
(b) How many claims were
(i) Finalised in Court = 0
(ii) Settled out of Court = 0
(iii) Are still outstanding = 12
(c) What amount has been paid to each plaintiff in each case that was
(i) Finalised in Court = 0
(ii) pending = R338 915.00
Reply received: April 2013
QUESTION 589
589. Mr S C Motau (DA) to ask the Minister of Labour:
What is she doing to encourage support for sheltered employment factories? NW744E
The Minister of Labour reply:
The following interventions have been initiated to encourage support for Sheltered Employment Factories:
1. I held discussions with the Minister of Basic Education regarding procurement of school furniture from SEF and this has resulted in the DG's of both departments concluding a three year Memorandum of Understanding. During the first 12 months of the MOU, three orders for school furniture with a total value of R76 million has been placed with SEF.
2. SEF exhibited in all Job Summit and Fairs that were conducted across 9 Provinces during the 2012/13 financial year. During my address and visit to the Job Fairs, I encouraged Job Summit attendees to visit and procure goods these factories.
3. I am planning to host Open Days during the first and second quarter of 2013/14 wherein I will invite key departments such as Basic Education, Health, Police, Public Works etc and the Private Sector to come and see products produced by these factories and where possible to establish future relationships.
4. I have submitted to National Treasury motivation for additional funding for these factories during the 2012/13 financial year to support the implementation of their business case. National Treasury has since allocated additional amount of R50 million during the 2013/14, R65 million during the 2014/15 and R68 million during the 2015/16 financial years.
Reply received: April 2013
QUESTION 576
576. Adv A de W Alberts (FF Plus) to ask the Minister of Labour:†
Whether, (a) given the use of the definition of African in labour legislation and (b) specifically in light of President J G Zuma's statement in 2008 that Afrikaners are the only white tribe in Africa, she can indicate how white men who were born in South Africa cannot be regarded as Africans? NW731
Minister of Labour replied:
It is important to highlight that there is no labour legislation that defines Africans. The Employment Equity Act of 1998, only defines the previously disadvantaged groups, i.e. the designated groups as black people, women and people with disabilities. The distinction between the various groups was made in order to address disparities and inequalities in the Labour Market that still exist, which stems from our historical past.
Reply received: April 2013
QUESTION 551
551. Mr D A Kganare (Cope) to ask the Minister of Labour:
(1) How many employers have been found not to abiding by the Employment Equity Act, Act 55 of 1998, for the past two financial years;
(2) whether any action was taken by her department in this regard; if not, why not, if so, what action? NW708E
Minister of Labour reply:
(1) It is important to first highlight to the Honourable member that this question appears to be similar to the one I responded to in detail during 2012. Therefore, the response will not differ, except that in this one, the focus will be placed on the past two financial years instead of the four years that were previously requested. Secondly, I deem it critical to clarify how different employers are required to comply with the various provisions of the Employment Equity Act, 1998 (the Act).
On one hand, Chapter 2 of the Act applies to all employers irrespective of the size of the organization in relation to the elimination of unfair discrimination in their workplaces based on any of the prohibited grounds, e.g. race, gender, disability, HIV status, etc. Therefore, any unfair discrimination disputes arising in workplaces are referred to the Commission for Conciliation, Mediation and Arbitration (CCMA) for conciliation, but adjudication of such cases will then be handled by the Labour Court.
On the other hand, Chapter 3 of this Act deals with the implementation of affirmative action measures to address the imbalances of the past, but it is applicable only to the designated employers.
"Designated employer" means- (a) an employer who employs 50 or more employees; and (b) employer who employs fewer than 50 employees, but has a total annual turnover that is equal to or above the applicable annual turnover of a small business in terms of Schedule 4 to the Act. Therefore, these designated employers are required in terms of section 21 of the Act to develop and implement Employment Equity Plans and thereafter, submit employment equity reports to my department on the progress made in the implementation of their EE Plans. The large designated employers (i.e. those employing 150 and more employees) are required to submit EE Reports annually and the small designated employers (i.e. those employing less than 150 employees) must submit every second year.
Therefore, in view of the above definition of designated employers, the total number of designated employers who have not complied varies over the financial years under the different provisions of this Act as the requirements are significantly different. The table below, outlines the number of employers that complied with the reporting requirements of section 21 of the Act and those that failed to comply over the stipulated two financial years as published in the 11th and 12th Commission for Employment Equity (CEE)'s Annual Reports. The 2012 October EE data covering 2012/2013 financial year is due to be published early in the next financial year:
| Financial years | The type of designated employers required to submit EE reports | Number of employers that submitted EE reports | Number of employers that complied with EE reporting requirements | Number of employers that failed to comply with EE reporting requirements |
| 2010/2011 (11th CEE Annual Report) | Both large and small employers | 18 534 | 16 698 | 1 836 |
| 2011/2012 (12th CEE Annual Report) | Large employers only | 4 492 | 4 370 | 122 |
Furthermore, it is important to note that as employee numbers or turnover in Rand terms move above and below the outlined thresholds, which may affect the designated status of an employer, the total population of employers required to comply with various provisions will continue to change, hence making it a moving target.
(2) In order to promote compliance with the Employment Equity Act, the Department has undertaken various enforcement mechanisms outlined in the Employment Equity Act. There are Employment Equity inspections that are conducted by Labour Inspectors in workplaces as per sections 36 and 37 of the Act. Where there has been non-compliance with any provisions of the Act, a Written Undertaking from an employer is secured; or a Compliance order is issued outlining the contravention and timeframes within which the employer must comply before the non-compliance can be referred to the Labour Court.
Furthermore, the Department also conducts Director General Reviews (DG Reviews) in terms of sections 43 to 45 of the Act to assess the compliance levels of designated employers with the requirements of the Act. Since the introduction of the DG Reviews in 2006, over 260 companies listed on the Johannesburg Securities Exchange (JSE) have been reviewed. After the review, the Director General issued recommendations to employers that were accompanied by time schedules for delivery. Failure to comply with the recommendations may result in the employer being referred to the Labour Court by the Director General.
We also believe that the proposed amendments to the Employment Equity Act, which are primarily aimed at strengthening the compliance and enforcement mechanisms in the Act will make it much easier for the Department to refer non-complying employers to the Labour Court, which will further motivate employers to comply with the requirements of the law and expedite transformation of our labour market.
Reply received: April 2013
QUESTION 526
526. Mr S C Motau (DA) to ask the Minister of Labour:
Has her department purchased products from sheltered employment factories since 2009; if so, (a) how much has been spent and (b) what are these products; if not, (i) why not and (ii) what will she do to encourage her department to purchase from these factories? NW683E
The Minister of Labour reply:
Yes, the Department of Labour and its two main entities .ie. the Unemployment Insurance Fund and the Compensation Fund have been supporting the Sheltered Employment Factories through the purchase of their products even before 2009.
(a) During the 2008/09 financial year the Department of Labour, and its entities purchased goods to the total amount of R3, 158,389.04
· During 2009/10 financial year the Department of Labour and its entities purchased goods to the total amount R4, 631,414.27
· During 2010/11 financial year the Department of Labour and its entities purchased goods to the total amount R5, 839,623.55
· During 2011/12 financial year the Department of Labour and its entities purchased goods to the total amount R8, 406,483.32.
· During 2012/13 financial year the Department of Labour and its entities purchased goods to the total amount R3, 857,532.15.
(b) The products purchased by the department and its entities included the following;
· Office furniture,
· Inspectors Uniforms and;
· Promotional items such as branded t-shirts and caps.
(ii) I have outlined in detail in my answer to Question No 744E by Honourable Motau dated 26 March 2013, on what is it that I am doing to encourage my Department and its entities, other departments and even members of the public to support the Sheltered Employment Factories.
Reply received: April 2013
QUESTION 525
525. Mr. S C Motau (DA) to ask the Minister of Labour:
When will she report to the National Assembly on the investigation by the Unemployment Insurance Fund to establish a provident fund for domestic workers? NW682E
Minister of Labour reply:
Honourable Member, let me first correct the statement that the Unemployment Insurance Fund (UIF) has to establish a provident fund for domestic workers. The UIF is not responsible for the establishment of the provident fund but unemployment and other benefits as set out in the UIF Act.
In 2012 I published a notice announcing the commencement of the study to determine the feasibility of a provident fund in the domestic workers sector. Inputs received to date indicated support for the establishment of a provident fund by both workers and employers in this regard. My Department is therefore continuing with the work in this regard.
Let me further indicate to the Honorable Member that government through National Treasury established an Inter-Departmental Task Team to consider the establishment of a National Social Security Fund which will provide benefits to low income earners including domestic workers and currently the process of developing such a fund is underway. My Department, in its work to establish such a fund will continuously monitor the progress in this regard.
Lastly, the establishment of the provident fund is a sectoral determination process through the Basic Conditions of Employment Act and the law does not require me to report to the National Assembly on the making of a sectoral determination.
Reply received: April 2013
QUESTION 524
524. Mr S C Motau (DA) to ask the Minister of Labour:
When will she report to the National Assembly on the investigation to include domestic workers in the Compensation for Occupational Injuries and Diseases Act, Act 130 of 1993? NW681E
THE MINISTER REPLY:
Domestic Workers have been included in the draft Amendment Bill that is currently under discussion by the department. It is envisaged that the said Bill will be presented in Parliament by the 3rd quota of the current financial year.
Reply received: April 2013
QUESTION 423
423. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
How can fee-charging schools verify with her department that parents applying for fee exemptions are registered as unemployed and seeking work? NW572E
Minister of Labour reply:
We don't have a policy in the Department of Labour that exempt people from paying any levies by virtue of their registration status as a work seeker on our data base and neither am I familiar with such policies in other departments.
Registered work seeker's personal information for both unemployed and underemployed is disclosed to a prospective employer after successful job matching process.
The Department can assist anyone who wants to confirm if any person is registered with us as a work seeker if they can send us the Identification Number of such a person to a Labour Centre nearest to them or the national Call Centre of the Public Employment Services (PES), at [email protected].
Reply received: May 2013
QUESTION 396
396. Mr D A Kganare (Cope) to ask the Minister of Labour:
The Department of Labour has only two entities which have investments, the Compensation Fund and the Unemployment Insurance Fund.
Regarding the Compensation Fund:
(1) Whether her department has guidelines for entities reporting to her concerning investment decisions; if not, why not; if so, what are the relevant details;
The Minister of Labour reply:
There are no guidelines regarding the reporting of investment decisions. However the Compensation Fund is guided by the Compensation of Occupational injuries and Diseases Act of 1993 section 18(a) which stipulates that "The Director-General may transfer any part of the moneys in the compensation fund and the reserve fund to the Public Investment Cooperation (PIC) for investment.
There is also an Investment Committee chaired by a member of the Advisory Board which meets on a quarterly basis. The fund's Investments are managed by the PIC in terms of clear mandates developed by the Board. The Mandate was signed by the Director – General of Labour on 23/02/2010 between the PIC and the Compensation Fund. In addition the Fund has Investment advisors (Alexander Forbes) who assist the Board in monitoring the performance of the PIC against its mandate. The investment strategy is updated on a regular basis following actuarial valuations of the Fund and the actuary's assessment of the Funds future liabilities.
The Board is able to report to the Minister directly should they have any concerns surrounding the Fund's investment decisions.
(2) how much was invested by each entity in the (a) 2007-08, (b) 2008-09, (c) 2009-10, (d) 2010-11, and (e) 2011-12 financial years and in which areas in each case;
The Minister of Labour reply:
For the years in question the Compensation Fund had invested as follows:
| Type of investment | 2007/08 | 2008/09 | 2009/10 | 2010/11 | 2011/12 |
| `000 | `000 | `000 | `000 | `000 | |
| 16,655,425 | 19,595,355 | 23,355,091 | 26,517,483 | 29,363,744 | |
| The money has been invested in the following areas | |||||
| Bonds | 12,231,620 | 15,117,122 | 17,810,740 | 18,888,352 | 19,663,463 |
| Domestic Equities | 757,023 | 547.640 | 768,898 | 2,565,307 | 3,227,691 |
| Cash and money market | 3,666,782 | 4,294,573 | 4,775,453 | 5,063,824 | 6,745,590 |
(3) What impact did the specified investments have on (a) job creation and (b) youth (i) development and (ii) job creation? NW548E
The Minister of Labour reply:
There are jobs created but the current Investment Mandate does not require the PIC to report on the number of jobs created through the investment decision. However the Fund is in the process of engaging PIC to invest in socially responsible investments which will create jobs in line with the State President vision to create sustainable jobs by 2014.
| Description | Strategic Asset Allocation | Permitted Range | Benchmark |
| Cash & Money Market | 25% | 10-40% | STEFI |
| Nominal Bonds | 40% | 10-50% | ALBI |
| CPI Linked Bonds | 15% | 10-30% | BESA INFLATION LINKED INDEX |
| Hedged Equity | 7.5% | 0-10% | CPI +2% |
| Unhedged Equity | 7.5% | 0-10% | SWIX40 |
| Socially Responsible Investments | 5% | 0-10% | To be determined on a case by case basis given the nature of the investment |
Regarding the Unemployment Insurance Fund:
(1) Whether her department has guidelines for entities reporting to her concerning investment decisions; if not, why not; if so, what are the relevant details;
The Minister of Labour reply:
The Investment guidelines and decisions of the UIF are made in line with requirements of Treasury Regulation 31.3. Treasury Regulation 31.3 requires the UIF to have an investment policy approved by the Accounting Authority. For the financial year 2012/13, the Accounting Authority has approved the following investment mandate:
(2) how much was invested by each entity in the (a) 2007-08, (b) 2008-09, (c) 2009-10, (d) 2010-11, and (e) 2011-12 financial years and in which areas in each case;
The Minister of Labour reply:
| Financial Instrument | 2007/08 R'000 | 2008/09 R'000 | 2009/10 R'000 | 2010/11 R'000 | 2011/12 R'000 |
| Capital Markets | 12,307,789 | 17,840,434 | 21,690,528 | 26,300,521 | 27,741,281 |
| Inflation Linked Bonds | 3,030,439 | 3,538,666 | 4,400,856 | 5,752,970 | 10,388,867 |
| Money Market Instruments | 10,139,658 | 13,178,274 | 14,320,718 | 12,420,525 | 15,582,575 |
| Equities | 1,386,302 | 1,428,490 | 3,280,657 | 8,150,882 | 10,219,950 |
| Trading Cash | 346,403 | 274,298 | 629,475 | 835,033 | 1,435,438 |
| Total | 27,210,591 | 36,260,162 | 44,322,234 | 53,459,931 | 65,368,111 |
(3) what impact did the specified investments have on (a) job creation and (b) youth (i) development and (ii) job creation? NW548E
The Minister of Labour reply:
The UIF plays a pivotal role in schemes aimed at creating and retaining jobs in the South African economy. These initiatives form part of overall government objectives of job creation and retention. In 2010, the UIF bought a R2 billion bond from the IDC. The R2 billion rand was to be used by the IDC in the UIF/IDC Bond Scheme. In this scheme, business to access funding from IDC at discounted rates (less than prime rate). One of the conditions for accessing the funding is that the businesses must create or retain existing jobs. In 2012, the funding for the scheme was increased through four additional bonds of R500 million.
As at end of March 2012, the scheme had resulted in 164 transaction being concluded to the value of R2,8 billion and they had created 15,222 new permanent jobs and retained 18,317 existing permanent jobs.
The funds of the UIF are also invested in government and parastatal bonds where they are used for infrastructure development thus impacting on the development of the economy.
Reply received: April 2013
QUESTION 328
328: Mr KP Sithole (IFP) to ask the Minister of Labour:
(1) Whether the Government has developed or intends developing policy focused on the employment of semi-skilled and lower-skilled workers; if not, why not; if so, what are the relevant details;
(2) Whether there is a special wage-rate dispensation for employees and employers in industries unable to afford the remuneration levels established via the bargaining council system; if not, what is the position in this regard; if so, under what circumstances an employee is entitled to receive, and an employer to pay, a rate that is lower than determined by such industry mechanisms?
MINISTER OF LABOUR REPLY:
(1) The Department of Labour, through its Public Employment Service, assists all work seekers to enter or re-enter the labour market. The Employment Services Bill was published in November 2012. The Bill outlines legal and policy framework for the operation of the public employment services. This Bill is now with the Portfolio Committee on Labour for consideration. While there is not a specific policy focused on the employment of semi-skilled and lower skilled workers in government, there are a number of interventions which aim to enhance employment for lower skilled workers, in particular. Examples of such interventions include, inter alia, the Expanded Public Works Programme and the Community Works Programme.
(2) Employers who are not able to afford wage levels contained in bargaining council agreements that are extended by the Minister of Labour to non-parties are able to apply for an exemption from their respective bargaining councils. The Labour Relations Act requires the constitution of each bargaining council to make provision for exemption procedures from collective agreements. The Act also requires a collective agreement that is to be extended to non-parties to contain criteria that must be applied by an independent body when it considers an appeal against the refusal of an exemption application. The specific criteria for exemptions will vary between councils but typically includes evidence of financial hardship and whether there has been consultation between employers and employees prior to applying for an exemption.
Reply received: April 2013
QUESTION 291
291. Mr P van der Westhuizen (DA) ask the Minister of Labour
Question 1 (a): What services has Siemens IT Solutions and Services SA (Pty) Ltd provided to the Department?
Answer: IT Architecture, Systems Development, IT Operations and Procurement of related hardware and software)
Question 1 (b): At what annual cost for the financial years? (i) 2010, (ii) 2011, and (iii) 2012;
Answer: Please see the below table
| Year | 2010 | 2011 | 2012 | Total for 3 years | |||
| Unitary Fee | R 219,218,864 | R 230,418,314 | R 229,589,000 | R 679,226,178 | |||
| Additional Services | R 12,248,944 | R 7,593,339 | R 6,447,000 | R 26,289,283 | |||
| Total including CPIX | R 241,559,804 | R 249,912,236 | R 247,837,800 | R 739,309,840 | |||
| CPIX | 4.36 % | 5.% | 5.% | ||||
Question 2 (a): When was the agreement entered into and on what date was the original contract set to expire?
Answer: The agreement was entered into on the 01st of December 2002 and expired on 30th of November 2012.
Question 2 (b): Why was the department not ready to take over the functions upon expiration of the contract, despite paying consulting firm Accenture to ensure a smooth takeover, especially with the department knowing that the contract was to expire at the end of November 2012.
Answer: The DoL was not ready to take over IT functions because it did not have IT capacity to take over these functions from the contractor at the end of the PPP contract in November 2012 due to the fact that DoL from inception of the PPP did not build IT relevant capacity. During the term of the PPP contract the DoL did not have sufficient IT Leadership and Competency to effectively manage the of the PPP contract including the preparation of the exit and termination period of this contract.
Question 3 (a): On what grounds was the contract extended?
Answer: The contract was never extended. The PPP contract expired on the 30th of November 2012. However, clause 13 of the PPP contract makes provision for the Termination Support. This clause was therefore invoked to provide continuity of ICT services whilst the DoL implementing its long term ICT support processes.
Question 3 (b): Why did the minister deem it necessary to ask for the contract with EOH Holdings (which bought Siemens IT Solutions and Services SA (Pty) Ltd) to be suspended?
Answer: The Honourable Minister indicated that she suspended the EOH services in order to satisfy herself about the process followed to invoke the termination support mentioned in 3a.
Question 4: How much has been paid to Accenture in total to date to facilitate the exit strategy?
Answer: The total amount for the R36 727 528.78 million and a total of R33 506 072.88 has been paid to date.
Question 5: When will the Department take over their own IT functions?
Answer: The Department will fully take over its IT function by June 2013
Reply received: March 2013
QUESTION 249
249. Adv A de W Alberts (FF Plus) to ask the Minister of Labour:†
Regarding the implementation of affirmative action, what criteria are applicable in determining whether a person (a) can or (b) cannot be classified as an African? NW267E
Minister of Labour's replied:
(a) It is important to first highlight that affirmative action is a measure designed to ensure that suitably qualified people from the designated groups (i.e. black people, women and people with disabilities ) have equal employment opportunities and are equitably represented in all occupational categories and levels in the workforce of a designated employer. Secondly, it is worth noting that these designated groups are people that were previously disadvantaged as a result of apartheid and discriminatory laws and practices that were in place then. Furthermore, the term 'black people' is clearly defined in the Employment Equity Act as a generic term which means Africans, Coloureds and Indians.
(b) Given the above explanation, it is therefore, clear that only Africans that were previously disadvantaged as a result of apartheid and discriminatory laws and practices that were in place then, qualify to be classified as Africans for the purpose of implementing Affirmative action.
Reply received: March 2013
QUESTION 148
148. Mr S V Motau (DA) to ask the Minister of Labour:
(1) How many legal matters were dealt with by her department (a) in the (i) 2009-10, (ii) 2010-11, (iii) 2011-12 financial years and (b) during the period 1 April 2012 up to which date information is available for;
Minister of Labour replies:
Legal Services' key output is to provide legal support services to the Department through litigation, debts and enforcement matters. During the said financial years, legal matters dealt with were as follows:
| (a) 2009-2010 | (b) 2010-2011 | (c) 2011-2012 | |
| Litigation | 132 | 45 | 30 |
| Debts | 67 | 127 | 61 |
| Enforcement cases | 25 | 237 | 62 |
(2) Of these, how many were dealt with by (a) the State Attorney and (b) private attorneys in each case;
Answer:
(a) All litigation and debt cases are dealt with by the State Attorney except for Enforcement cases. The Department has Senior Legal Administration Officers who handle enforcement matters with the assistance of Inspectors in the Provinces.
(b) No cases were dealt with by Private Attorneys
(3) What are the total amounts paid by the Department towards the (a) the State Attorney and (b) private attorneys in each case;
Answer:
(a) State Attorney costs = R5, 864, 783.80
2009-2010 = R63, 299.82
2010-2011 = R3, 275, 645.00
2011-2012 = R2, 525, 839.00
(b) Private Attorneys = R0
(4) In each matter where the Department was not represented by the State Attorney what are the reasons for not doing so?
Answer:
Not applicable as all cases of the Department are represented by the State Attorney
Reply received: March 2013
QUESTION 115 NATIONAL ASSEMBLY
115. Mr JRB Lorimer to ask the Minister of Labour:
(1) Whether (i) the Department and/or (ii) any entities reporting to it, paid any bonuses to senior officials in December 2012; if so, (a) to whom and (b) what amount was paid; (2) Whether these bonuses were performance-based; if not, how was each bonus justified; (3) Whether, in each case, (a) a performance agreement was signed with the official and (b) were regular performance assessments conducted; (4) From which budget were the performance bonuses paid?
Minister of Labour replied:
| ENTITY NAME | RESPONSE |
| COMPENSATION FUND (CF). | (1) Whether (i) the Department and/or (ii) any entities reporting to it paid any bonuses to senior officials in December 2012; if so, (a) to whom and (b) what amount was paid? Response: The CF did not pay bonuses to any senior official in December 2012. |
| (2) Whether these bonuses were performance-based; if not, how was each bonus justified? Response: Not applicable, as the CF did not pay bonuses to any senior official in December 2012. | |
| (3) Whether, in each case, (a) a performance agreement was signed with the official and (b) were regular performance assessments conducted? Response: Not applicable, as the CF did not pay bonuses to any senior official in December 2012. | |
| (4) From which budget were the performance bonuses paid? Response: Not applicable, as the CF did not pay bonuses to any senior official in December 2012. | |
| NEDLAC. | (1) Whether (i) the Department and/or (ii) any entities reporting to it paid any bonuses to senior officials in December 2012; if so, (a) to whom and (b) what amount was paid? Response: NEDLAC did not pay bonuses to any senior official in December 2012. |
| (2) Whether these bonuses were performance-based; if not, how was each bonus justified? Response: Not applicable, as NEDLAC did not pay bonuses to any senior official in December 2012. | |
| (3)Whether, in each case, (a) a performance agreement was signed with the official and (b) were regular performance assessments conducted? Response: Not applicable, as NEDLAC did not pay bonuses to any senior official in December 2012. | |
| (4) From which budget were the performance bonuses paid? Response: Not applicable, as NEDLAC did not pay bonuses to any senior official in December 2012. | |
| CCMA. | (1) Whether (i) the Department and/or (ii) any entities reporting to it paid any bonuses to senior officials in December 2012; if so, (a) to whom and (b) what amount was paid? Response: The CCMA did not pay bonuses to any senior official in December 2012. |
| (2) Whether these bonuses were performance-based; if not, how was each bonus justified? Response: Not applicable, as the CCMA did not pay bonuses to any senior official in December 2012. | |
| (3)Whether, in each case, (a) a performance agreement was signed with the official and (b) were regular performance assessments conducted? Response: Not applicable, as the CCMA did not pay bonuses to any senior official in December 2012. | |
| (4) From which budget were the performance bonuses paid? Response: Not applicable, as the CCMA did not pay bonuses to any senior official in December 2012. | |
| Unemployment Insurance Fund (UIF). | (1) Whether (i) the Department and/or (ii) any entities reporting to it paid any bonuses to senior officials in December 2012; if so, (a) to whom and (b) what amount was paid? Response: The UIF did not pay bonuses to any senior official in December 2012. |
| (2) Whether these bonuses were performance-based; if not, how was each bonus justified? Response: Not applicable, as the UIF did not pay bonuses to any senior official in December 2012. | |
| (3) Whether, in each case, (a) a performance agreement was signed with the official and (b) were regular performance assessments conducted? Response: Not applicable, as the UIF did not pay bonuses to any senior official in December 2012. | |
| (4) From which budget were the performance bonuses paid? Response: Not applicable, as the UIF did not pay bonuses to any senior official in December 2012. | |
| PRODUCTIVITY SA (PSA). | (1) Whether (i) the Department and/or (ii) any entities reporting to it paid any bonuses to senior officials in December 2012; if so, (a) to whom and (b) what amount was paid? Response: The PSA did not pay bonuses to any senior official in December 2012 over and above salary packages, which all employees, including senior officials themselves, make provision for in their structured salary packages. |
| (2) Whether these bonuses were performance-based; if not, how was each bonus justified? Response: Bonuses were not performance based, but part of structured salary packages, and therefore, at no additional cost to PSA. | |
| (3) Whether, in each case, (a) a performance agreement was signed with the official and (b) were regular performance assessments conducted? Response: Performance agreements were signed with officials, and (b) regular performance assessments were conducted. | |
| (4) From which budget were the performance bonuses paid? Response: Not applicable, as the PSA did not pay performance bonuses to any senior official in December 2012. |
Reply received: March 2013
QUESTION 82
82. Mr D C Smiles (DA) to ask the Minister of Labour:
(a) How many tickets did (i) her department and (ii) any of its entities purchase to attend business breakfasts hosted by a certain newspaper (name furnished) (aa) in the (aaa) 2010-11 and (bbb) 2011-12 financial years and (bb) during the period 1 April 2012 up to the latest specified date for which information is available and (b) what was the total cost in each case? NW13-88E
Minister of Labour reply:
(i). The Department of Labour did not participate in the business breakfasts
(ii). The entities did not participate in the business breakfasts
Reply received: March 2013
QUESTION 52
52. Mr S C Motau (DA) to ask the Minister of Labour:
Question (a) What assurances does she have that the recent sectoral determination agreed to for farm labourer wages will not collapse before the end of its three-year term.
The Minister of Labour replied:
a)Honourable Member, if you refer to the review of the sectoral determination before three years, according to the BCEA, the Minister may not publish a sectoral determination regulating any matter regulated by a sectoral determination for a sector and area which has been in effect for less than 12 months. This therefore mean that at any point in time after the sectoral determination has been in place for more than 12 months, the Minister may amend or change the sectoral determination by following the procedures spelt out in the law.
b). What factors were taken into account in adjusting the daily wage to R105
The Basic Conditions of Employment Act requires that the following issues amongst others be considered when determining the level of the minimum wage:
· The ability of employers to carry on their business successfully;
· Conditions of employment ;
· Alleviation of poverty;
· The cost of living; and
· Wage differentials and inequality
Furthermore, inputs received during the public hearings and also very critical, the report by the Bureau for Food and Agricultural Policy (BFAP)
c): what measures have been put in place to mitigate against potential job losses in the sector?
In my statement on the 4 February 2013 when announcing the new minimum wage, I have indicated to farmers that those who cannot afford to pay the new minimum wage can apply for exemption. The exemption will allow farmers to pay wages which they can afford until their economic situation has improved and thereby avoid retrenchments.
Reply received: March 2013
QUESTION 37
37. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) Whether (a) she and (b) senior officials met with specified representatives of (i) Cosatu and (ii) Bawusa (names furnished) and (iii) any other specified persons during the Western Cape farm unrests to explain the legal process that must be followed to determine sectoral determinations for wages; if not, why not, in each case; if so, in each case, (aa) on what dates and (bb) who was in attendance?
Minister of Labour replied:
1(a)(b)
The Department of Labour senior official (Chief Director: Labour Relations) met with the representatives of (i) The Congress of South African TradeUnions (COSATU) represented by Mr Tony Ehrenreich and
(ii) Building Wood and Allied Workers Union of South Africa (BAWUSA) represented by Nosey Pieterse; Farm workers Dwellers Forum; Food Sovereignty Campaign; Women on Farms Project; Mawubuye Land Rights; United Democratic Front; Food and Allied Workers Union; The Agricultural Workers Empowerment TradeUnion Council on the 13 November 2012.
(iii) On the 15 November 2012, a meeting was held with representatives of the following employer's organizations; AgriSA; Agri-Sector Unity Forum; African Farmers Association of South Africa; Landbou Werkgewers Organisasie employer's organization; and Transvaal Agricultural Union of South Africa.
Reply received: March 2013
QUESTION 36
36. Mr A P van der Westhuizen (DA) to ask the Minister of Labour:
(1) (a) Which sessions of the International Labour Organisation did she attend during her November 2012 visit to Geneva, (b) with whom did she meet and (c) which meetings did she attend as (i) keynote speaker and (ii) attendee;
Minister of Labour replied:
(a) The Minister of Labour attended the 316th Session of the International Labour Organisation (ILO) Governing Body from 12 to 16 November 2012, in Geneva.
(b) Mr Guy Ryder the newly elected ILO Director-General took office on 1 October 2012. It was prudent for South Africa to meet with the Director-General and articulates its views in terms of the ILO. The Minister of Labour was granted an audience with Mr Guy Ryder, ILO Director-General on 12 November 2012.
(c) The Minister attended the following meetings:
§ Working Party on the Functioning of the Governing Body and the International Labour Conference
§ High Level Section – Working Party on the Social Dimension of Globalisation
§ Government group meetings
(2) Whether she was required to sign any agreements during her November 2012 visit to Geneva; if so, what agreements;
No agreements were signed during the November 2012, ILO Governing Body.
(3) Whether she cut her November 2012 stay in Geneva short to attend to the farmworkers' strikes in the Western Cape; if not, why not;
No, the Minister of Labour travelled from Geneva to Paris (17 to 20 November 2012) because the Minister was invited to speak at a G20 round table on "Labour Market Regulation and Inclusive Growth".
During the absence of a Minister from the country the President appoints an Acting Minister. In this case the Minister for Basic Education was appointed to act. As the honourable member may recall the Acting Minister published the notice that initiated the process to review the Sectoral Determination.
(4) What were the (a) initial and (b) eventual (i) arrival and (ii) departure dates of her planned stay in Geneva? NW38E
The Minister of Labour travelled as scheduled. There was no deviation to the original flight scheduled.
| DATE | DESTINATION |
| 09 November 2012 | Johannesburg/ Frankfurt |
| 09 November 2012 | Frankfurt/ Geneva |
| 20 November 2012 | Paris/ Frankfurt |
| 20 November 2012 | Frankfurt/ Johannesburg |