ATC180523: Report of the Portfolio Committee on Labour on the SECOND Quarterly Report regarding the Performance of the Department of Labour and its entities in meeting Strategic Objectives for 2017/18, dated 23 May 2018

Labour

Report of the Portfolio Committee on Labour on the SECOND Quarterly Report regarding the Performance of the Department of Labour and its entities in meeting Strategic Objectives for 2017/18, dated 23 May 2018
 

The Portfolio Committee on Labour, having considered the Second Quarterly Report on the performance of the Department of Labour (DoL) and its entities in meeting strategic objectives for 2017/18, reports as follows:

 

  1.   Introduction

 

The Portfolio Committee on Labour considered the Second Quarterly Report on the performance of the Department of Labour and its entities in meeting strategic objectives for 2017/18 as presented in the meeting held on 31 January 2018.

 

This report gives an overview of the presentations made by the Department of Labour (Department) and its entities, focusing mainly on its achievements, output in respect of the performance indicators and targets set for 2017/18 and the financial performance. The report also provides the Committee’s key deliberations and recommendations relating to the Department’s and entities’ performance.

 

  1.   Performance per Strategic Objective

 

The Department reported on its performance per strategic objective as follows:

Table 1

Strategic Objectives

Annual Planned Indicators

Indicators with targets reporting in Q2

Achieved

Overall Achievement %

Strengthen occupational safety and protection

This strategic objective is covered in terms of indicators that are applicable in strengthening occupational safety protection.

Promote equity in the labour market

1

**

-

-

Strategic Objectives

Annual Planned Indicators

Indicators with targets reporting in Q2

Achieved

Overall Achievement %

Protecting vulnerable workers

5

5

2

40%

Strengthen multilateral and bilateral relations

1

1

1

100%

Contribute to employment creation

4

4

4

100%

Promote sound labour relations

3

3

1

33%

Monitoring the impact of legislation

2

**1

0

0%

Strengthening the institutional capacity of the Department

4

4

2

50%

Total number of indicators

20

18

10

56%

Overall Performance

 

56%

Source: Presentation to the Portfolio Committee on Labour dated 31 January 2018

⃰ There was no target for “Promote equity in the labour market” reporting for Q2

 

  1.   Performance per Programme

 

The overall performance per programme was reported as follows:

 

Table 2

Branch

Annual Planned Indicators

Indicators with targets reporting in Q2

Achieved

Achievement %

Administration

4

4

2

50%

Inspection and Enforcement Service

4

4

2

50%

Public Employment Services

4

4

4

100%

Labour Policy and Industrial Relations

8

6

2

33%

Total

20

18

10

56%

Source: Adapted from the presentation to the Portfolio Committee on Labour dated 31 January 2018

 

  1.   Inspection and Enforcement Services’ Performance per Province in Quarter 2

 

Table 3

Province

Planned Indicators

Achieved

Overall Performance

Eastern Cape

4

3

75%

Free State

4

3

75%

Gauteng

4

3

75%

KwaZulu-Natal

4

3

75%

Limpopo

4

2

50%

Mpumalanga

4

1

25%

Northern Cape

4

3

75%

North West

4

3

75%

Western Cape

4

3

75%

Source: Adapted from the presentation to the Portfolio Committee on Labour dated 31 January 2018

 

  1.   Public Employment Services’ Performance per Province in Quarter 2

 

Table 4

Province

Planned Indicators

Achieved

Overall Performance

Eastern Cape

4

4

100%

Free State

4

4

100%

Gauteng

4

4

100%

KwaZulu-Natal

4

4

100%

Limpopo

4

4

100%

Mpumalanga

4

4

100%

Northern Cape

4

4

100%

North West

4

4

100%

Western Cape

4

4

100%

Source: Adapted from the presentation to the Portfolio Committee on Labour dated 31 January 2018

 

 

 

  1.   Financial Report

 

First quarter expenditure for 2017/18 is reflected in the following table:

 

Table 5

Economic Classification

Budget

Expenditure

Variance

% Variance

Current Payments

450 024

388 620

61 404

14%

Compensation of Employees

307 175

257 936

49 239

16%

Goods and Services

142 849

130 684

12 165

9%

Transfers and Subsidies

275 446

241 031

34 415

12%

Payments for Capital Assets

29 064

3 703

25 361

87%

Total

754 534

633 354

121 180

16%

Expenditure %

 

84%

 

 

Source: Presentation to the Portfolio Committee on Labour dated 31 January 2018

 

  1.   Supported Employment Enterprises

 

Services rendered by the Supported Employment Enterprises (SEE) are:

  • Supplying a significant number of government hospitals with hospital linen and protective clothing, and
  • Supplying different departments with office furniture, as well as school furniture.

 

  1.   Direct Permanent Employment Creation for People with Disabilities

 

SEE created 997 direct permanent jobs for people with disabilities during the period under review. Most of the jobs were created in Gauteng, Western Cape and KwaZulu-Natal.

 

  1.   Financial Performance of SEE

 

The revenue from exchange transactions amounted to a loss of R45.9 million. This was constituted as follows: R25.8 million for sale of goods and services and cost of sales amounting to R71.6 million. Other revenue amounted to R6.1 million comprising, among others, interest earned from external investments and interest earned from outstanding receivables. Revenue from non-exchange transactions amounted to R67.5 million consisting of transfers and sponsorships. This resulted in a net revenue of R27 760 275.00.

 

Operating expenditure amounted to R21 063 771.00, consisting of R6 million for general expenses, R8 162.00 loss on disposable assets, R14.7 million on employee costs and R337 465.00 on depreciation and impairment.

 

This resulted in an operating surplus of R6 696 504. Finance costs amounted to R3 457.00, leading to a profit of R6 693 045.00 during the period under review. This amounts to a reduction of 84% from the profit of R41 915 926.00 recorded at the end of March 2017.

 

The total assets of the entity amounted to R253.8 million comprising non-current assets of R5.6 million and current assets of R248.2 million. This equals total equity and liabilities also at R253.8 million.

 

  1.   Second Quarter Performance of Entities of the Department Of Labour

 

The entities that report to the Department of Labour are:

  • Compensation Fund
  • Productivity South Africa
  • Commission for Conciliation, Mediation and Arbitration
  • National Economic Development and Labour Council
  • Unemployment Insurance Fund.

 

  1.   Compensation Fund (CF)

 

The strategic objectives of the CF are:

  • To provide an effective and efficient client oriented support services.
  • To provide faster, reliable and accessible COID services by 2020.

 

CF reported second quarter performance per strategic objectives of 2017/18 financial year as follows:

 

 

Table 6

STRATEGIC OBJECTIVES

PLANNED INDICATORS

ACHIEVED

NOT ACHIEVED

OVERALL PERFORMANCE

Provide an effective and efficient client oriented support services

2

0

2

0%

Provide faster, reliable and accessible COID services by 2020

5

3

2

60%

Overall Performance

7

3

4

43%

Source: Presentation to the Portfolio Committee on Labour dated 31 January 2018

 

The activities of the CF are structured into three programmes, namely: Administration, Compensation for Occupational Injuries and Diseases Act (1993) operations and Provincial operations: Compensation for Occupational Injuries and Diseases Act (1993).

 

CF reported second quarter performance per programme as follows:

 

Table 7

PROGRAMMES

PLANNED INDICATORS

ACHIEVED

NOT ACHIEVED

OVERALL ACHIEVEMENT

Administration

2

0

2

0%

Compensation for Occupational Injuries and Diseases Act (1939) operations

3

1

2

33%

Provincial operations: Compensation for Occupational Injuries and Diseases Act (1993)

2

2

0

100%

Overall performance

7

3

4

43%

Source: Presentation to the Portfolio Committee on Labour dated 31 January 2018

 

CF has registered constant improvement in performance of 38% and 50% in 2015/16 and 2016/17. However, a decline in performance of 43% was registered in the second quarter of 2017/18.

Some reported achievements include:

  • An amount of R1.9 billion (R1 859 600 534.69) was paid for approved benefits sent to the financial system.
  • Ninety-six of compensation benefit claims received were adjudicated within 60 days of receipt (100 697 claims adjudicated out of 105 374 lodged during the financial year).
  • Ninety-three of medical claims were finalized within 60 days of receipt (396 409 claims finalized out of 472 783 submitted).
  • Of the 36 cumulative projects on the risk-based audit plan, 12 were implemented by 30 September 2017. This translates to 33% achievement against the target of 45% by quarter two.
  • Of the 386 083 active registered employers, 164 012 or 42% were assessed by 30 September 2017 against the target of 75% at the end of quarter two.
  • Of the 527 requests received for prosthetic and assistive devices, 279 or 53% were adjudicated within 15 working days against the target of 85%.
  • Of the 704 received preauthorization requests, 520 or 74% were responded to within 10 working days against the 85% quarter two target.

 

  1.   2017/18 second quarter performance linked to budget

 

CF reported as follows:

 

 

Table 8

PROGRAMMES

Planned Indicators

Achieved

Overall Performance

Budget

 

 

R’000

Actual Spent

 

R’000

Variance

 

 

R’000

% Spent

Administration

2

0

0%

1 468 716

482 211

986 506

33%

Compensation for Occupational Injuries and Diseases Act (1939) operations

3

1

33%

7 769 936

1 333 564

6 436 372

17%

PROGRAMMES

Planned Indicators

Achieved

Overall Performance

Budget

 

 

R’000

Actual Spent

 

R’000

Variance

 

 

R’000

% Spent

Provincial operations: Compensation for Occupational Injuries and Diseases Act (1993)

2

2

100%

68 401

27 058

41 343

40%

Overall performance

7

3

43%

9 307 053

1 842 833

7 464 221

20%

Source: Adapted from the Presentation to the Portfolio Committee on Labour dated 31 January 2018

 

The overall spending for CF was at 20% during the second quarter of 2017/18.

 

8.2          Productivity SA

 

Productivity SA is established in terms of section 31 of the Employment Services Act (Act 4 of 2014) as a juristic person and schedule 3A Public Entity in terms of the PFMA (Act 1 of 1999), as amended. It is governed by a tripartite board consisting of 7 members appointed in terms of section 33 of the Act. The vision of the PSA is to lead and inspire a productive and competitive South Africa.

 

8.2.1.      Highlights of performance per strategic objectives

 

The entity reported as follows:

  • 4 762 jobs were saved in companies facing economic distress since the beginning of the financial year.
  • 3 630 SMMEs and cooperatives on Enterprise Development Programmes were trained against the target of 2 300.
  • 236 Productivity Champions; Education, Training and Development (ETDs); Skills Development Facilitators (SDFs) were trained across the business, labour and government spectrum against the target of 120.
  • 177 companies in industry sectors SEZs and industrial parks were supported through Productivity and competitiveness enhancement programmes against the target of 155.

 

8.2.2.      Under-performance per programme in the second quarter of 2017/18

 

Productivity SA has identified under-performance on non-financial targets per programme, reasons for non-achievement of targets and devised corrective measures.

 

The entity had a target of supporting 97 companies facing economic distress through turn-around strategies to retain jobs. Instead, it only managed to support 32 companies. The reason for the deviation of 65 was reported to be a slow intake of clients due to limited market exposure. Productivity SA has resolved to appoint Portfolio Managers with Project Management and Business Development competencies; and embarking on recruiting more service providers to increase the pool as well as client intake.

 

Productivity SA planned to support 15 companies that were contemplating retrenching workers through microenterprise development and self-employment support programmes. It did not train any of the companies due to proposal to UIF not being resulting in the programme not being funded. The entity has resolved to request the board to remove this target from the 2017/18 annual performance plan.

 

8.2.3.       Quarterly performance report per programme

 

Performance per programme in the second quarter of 2017/18 was reported as follows:

Table 9

PROGRAMMES

Annual Planned Indicators

Q1 planned Indicators

Achieved

Aggregate Performance

Corporate Services

5

3

2

67%

Human Resource Management

5

3

3

100%

Marketing and Communication

5

4

3

75%

Productivity Organisational Solutions

3

3

3

100%

Value Chain Competitiveness

8

4

2

50%

Turnaround solutions

3

2

0

0%

Overall Performance

29

19

13

68%

Source: Adapted from the Presentation to the Portfolio Committee on Labour dated 14 February 2018

 

The aggregate performance was an improvement of 5% from 63% performance in the first quarter of 2017/18.

 

One of the targets of the Human Resource Management programme was to fill vacancies within a period of four months after being advertised. The programme managed to achieve a turn-around time of one month for the filling of vacancies.

 

Productivity Organisational Solutions programme had a target of supporting 1 350 SMMEs and cooperatives on ESD programmes through productivity and operational efficiency enhancement programmes. It managed to support 2 150 companies resulting in 3 630 companies reflected in performance highlights when first quarter performance is included. This programme also planned to train 60 productivity champions, ETDs and SDFs across the business, labour and government spectrum. It trained 228 personnel resulting in 236 reflected in performance highlights when 8 personnel trained in the first quarter are included.

 

Value chain competitiveness programme had a target of supporting 155 companies in industry sectors including SEZs and industrial parks through productivity and competitiveness enhancement programmes. It managed to support 177 companies as reflected in the performance highlights. This programme managed to support eight black industrialists through productivity and competitiveness enhancement programmes against a target of three. When the support provided in the first quarter is included, 18 black industrialists were supported in the first two quarters of 2017/18.

 

8.2.4.      Finance Report for second quarter of 2017/18

 

Operational expenditure for the second quarter of 2017/18 was reported as follows:

 

Table 10

OPERATIONAL EXPENDITURE

Budget Year to Date

R’000

Actual Year to Date

R’000

Variance Amount

R’000

Variance %

Employee Costs

22 188

18 261

3 927

18

OPERATIONAL EXPENDITURE

Budget Year to Date

R’000

Actual Year to Date

R’000

Variance Amount

R’000

Variance %

Goods and Services

20 563

10 249

10 314

50

Total Expenses

42 751

28 510

14 241

33

(Deficit)/ Surplus

1 995

(994)

2 989

 

Source: Adapted from the presentation made to the Portfolio Committee on Labour dated 14 Frebruary 2018

 

The entity had spent a cumulative R28.5 million at the end of the second quarter against a budget of R42,8 million, resulting in a variance of R14.2 million or 33 per cent.

 

  1.   National Economic Development and Labour Council (Nedlac)

 

  1.    Nedlac’s Strategic objectives

 

Nedlac’s strategic objectives are as follows:

  • Effective governance and strategic leadership.
  • Provision of efficient and reliable back office support service.
  • Improved risk management and financial oversight.
  • Improved facilities management.
  • Office administration systems enhanced and monitored.
  • Strengthening organizational culture and performance.
  • Effective engagement on draft policy and legislation within the framework of the Nedlac Act. Constitution and protocols.
  • Conclude matters under consideration within the framework of the Section 77 protocol.
  • Conclude matters under consideration within the framework of the Nedlac protocol.
  • Promote social dialogue through communication, information and capacity building.
  • Compliance with Nedlac policy on Constituency Capacity building budgeting and expense.

 

  1.   Nedlac programmes

 

The work to realise the above-mentioned objectives is structured into three programmes, namely:

  • Administration;
  • Co-operation; and
  • Constituency Capacity Building.

 

Nedlac performance per programme was reported as follows:

 

Table 11

PROGRAMMES

Total No. of annual indicators

Indicators with targets reporting in Q2

No. of targets achieved

Overall Performance

%

  1. Administration

14

14

12

86%

  1. Core Operations

31

21

19

90%

  1. Constituency Capacity Building Funds

3

3

3

100%

Overall Performance

48

38

34

90%

Source: Adapted from the Presentation to the Portfolio Committee on Labour dated 14 February 2018

 

Table 11 reflects an overall performance of 90% in quarter two of 2017/18, which is a slight regression from the 91% of quarter one.

 

  1.   Consideration of Section 77 notices

 

Section 77 of the Labour Relations Act deals with protest action to promote or defend socio-economic interests of workers. Table 12 reflects the number of section 77 applications dealt with by Nedlac during the period under review.

 

Table 12

Section 77

No. of matters tabled/ carried over from 2016/17

No. of matters achieved in Q2

No. of matters on-going and not reporting in Q2

No. Of matters not achieved

No. of matters carried over from 2016/17

5

0

4

0

No. of matters tabled by end of Q2, 2017/18

9

3

4

0

Overall Performance

14

3

8

0

Source: Adapted from the Presentation to the Portfolio Committee on Labour dated 14 February 2018.

 

Table 12 reflects that of the nine matters were tabled by the end of quarter two of 2017/18, three were resolved and four were on-going matters not reporting in quarter two. This translates to a performance of 33% on matters tabled by the end of quarter two.

 

  1.   Matters under consideration in Q1 and Q2

 

Some of the matters that were considered by Nedlac during the above-mentioned period and are relevant to the Labour portfolio include:

  • Compensation for Occupational Injuries and Diseases Amendment Bill.
  • National Skills Development Plan.
  • Minimum Wage Bill.
  • Basic Conditions of Employment Amendment Bill.
  • Comprehensive Social Security and Retirement Reform Proposals.
  • Decent Work Country Programme.

 

  1.   Nedlac Financial Performance for Quarter 2

 

Nedlac total income amounted to R32.4 million, comprising mainly of Grant from DoL at R31.8 million. The total budget was allocated to programmes as follows:

 

  1. Administration: R21 854 182
  2. Co-operations: R6 434 400
  3. Constituency Capacity Building: R4 113 018

Total Budget: R32 401 600

 

Budget allocation and expenditure by economic classification at the end of quarter two was reported as follows:

 

 

Table 13

ECONOMIC CLASSIFICATION

BUDGET

2017/18

ACTUAL EXP AS AT 30 SEP

2017/18

VARIANCE

OVER/UNDER EXP

2017/18

COMPENSATION OF EMPLOYEES

R13 905 000

R7 516 324

R6 388 676

GOODS AND SERVICES

R18 296 600

R9 695 825

R8 600 775

PAYMENTS FOR CAPITAL ASSETS

R200 000

R0

R200 000

PAYMENTS FOR FINANCIAL ASSETS

R0

R0

R0

TOTAL

R32 401 600

R17 212 149

R15 189 451

Source: Presentation to the Portfolio Committee on Labour dated 14 February 2018

 

Financial performance per programme was reported as follows:

 

Table 14

PROGRAMME

ANNUAL BUDGET

ACTUAL EXP TO DATE

EXP TO DATE %

ADMINISTRATION

R21 854 182

R11 752 238

54%

CO-OPERATIONS

R6 434 400

R3 891 355

60%

CONSTITUENCY CAPACITY BUILDING

R4 113 018

R1 010 171

25%

TOTAL

R32 401 600

R16 653 764

51%

Source: Adapted from the Presentation to the Portfolio Committee on Labour dated 14 February 2018

 

Table 14 reflects that by the end of the second quarter, 51% of the allocated budget had been spent. This is just 1% above the expected average expenditure of 50% by the end of the second quarter.

 

  1.   Unemployment Insurance Fund

 

The Constitutional mandate of the Unemployment Insurance Fund (UIF) is to provide adequate social security nets to protect vulnerable workers.

 

The policy mandate of the UIF is:

  • Creation of decent employment.
  • Providing adequate social safety nets to protect vulnerable workers.

 

The purpose of the UIF is to establish a fund to which employers and employees contribute; and from which employees who become unemployed or their beneficiaries, as the case may be, are entitled to befits and in so doing to alleviate the harmful economic and social effects of unemployment.

 

The purpose of the Unemployment Insurance Contributions Act (No. 4 of 2002) is to provide for:

  • The payment of contributions for the benefit of the UIF; and
  • Procedures for the collection of such contributions.

 

The UIF contributes towards the achievement of the following National Development (NDP) outcomes:

  • Outcome 4: Decent employment through an inclusive economic growth
  • Outcome 12: An efficient, effective and development oriented public service and an empowered and inclusive citizenship.
  • Outcome 13: An inclusive and responsive social protection system

 

Priorities of the UIF

The priorities of the Fund are:

  • To increase contributions collected by at least a rate equal to the prevailing Consumer Price Index.
  • To increase the rate of processing claims in order to pay within the targeted service levels and turnaround times.
  • To contribute in the various schemes designed to alleviate the harmful effects of unemployment which includes investing mandated funds in Social Responsibility Investments.
  • To maintain effective systems of internal control as required by the Public Finance Management Act.

 

 

 

 

 

 

  1.   UIF performance per strategic objective

Table 15

STRATEGIC OBJECTIVES

ACTUAL OUTPUT VALIDATED

OVERALL ACHIEVEMENT

%

Planned Indicators

Achieved

Improve financial management

3

3

100%

Improve service delivery

5

2

40%

Improve compliance to the Unemployment Insurance Act

2

1

50%

Fund poverty alleviation schemes

2

1

50%

OVERALL PERFORMANCE

12

7

58%

Source: Adapted from the Presentation to the Portfolio Committee on Labour dated 14 February 2018

 

Table 15 reflects an overall achievement of 58%, which is an improvement of 8% from the 50% achieved in the first quarter of 2017/18.

 

  1.   Performance per programme

 

The UIF execute its activities towards the achievement of the above-mentioned strategic objectives through the following programmes:

  • Administration
  • Business Operations
  • Labour Activation Programmess

 

Table16

STRATEGIC OBJECTIVES

ACTUAL OUTPUT VALIDATED

OVERALL ACHIEVEMENT %

Planned Indicators

Achieved

Administration

3

3

100%

Business Operations

7

3

43%

Labour Activation Programmes

2

1

50%

OVERALL PERFORMANCE

12

7

58%

Source: Developed from the information obtained from the presentation to the PC: Labour dated 14 February 2018

  1.   Commission for Conciliation, Mediation and Arbitration

 

  1.   Performance per Strategic Objective

 

CCMA performance per strategic objective was reported as follows:

 

Table 17

STRATEGIC OBJECTIVE

ACTUAL OUTPUT

OVERALL ACHIEVEMENT

Planned Indicators

Achieved

Enhancing the labour market to advance stability and growth

1

1

100%

Advancing good practices at work and transforming workplace relations

2

2

100%

Building knowledge and skills

1

1

100%

Optimising the organization

5

1

20%

OVERALL PERFORMANCE

9

5

56%

Source: Developed from the information obtained from the presentation to the PC: Labour dated 14 February 2018

 

The overall non-financial performance per strategic objective was at 50% in the second quarter of 2017/18, which is a year on year decline from the 68% achieved in the second quarter of 2016/17.

 

  1.   Under-performing non-financial targets for the 2017/18 second quarter

 

  • CCMA heard 99.98% (36 779 out of 36 787) registered cases at first event within 30 days, excluding agreed extension.
  • It managed to send 99.37% (4 894 out of 4 925) arbitration awards to parties by the 14th day after completion of the arbitration process.
  • It delivered 15 training interventions to capacitate the workforce for efficient and effective delivery of the CCMA mandate, out of a target of 16.
  • Four sectoral determinations and minimum service agreements were monitored and report produced

 

  1.   2017/18quarter 2 dashboard

 

  • 47 311 cases were referred to the CCMA during the period under review compared to 46 308 of the same period last year.
  • On average the CCMA took 23 days to deal with conciliation cases as compared to the legislated target of 30 days.
  • On average the CCMA took 52 days to deal with arbitration cases against a target of 60 days.
  • The CCMA settled 35 public interest matters.
  • The CCMA settled 76% of cases that it heard by conciliation.
  • 30% jobs were saved compared to employees facing retrenchments.

 

  1.   Committee observations

 

The Committee made the following observations:

  • Productivity SA was inconsistent in reporting on the strategic objectives’ highlights in that it reported cumulative results for quarter one and two for programme 4 (Productivity Organisational Solutions); and reported only quarter 2 results for programme 5 (Value Chain Competitiveness).
  • Productivity SA did not provide financial performance information per programme in its presentation.
  • Nedlac presentation does not reflect performance per strategic objectives.
  • Some entities like CCMA used year-on-year as the comparator while others used quarter-to-quarter.
  • It was specifically pointed out by the Committee that the country is now in its most disastrous stage of unemployment, with over 50% unemployment recorded among the youth component of the workforce.
  • One of the most specific requirements of the DoL is to ensure that there is a conducive environment to create employment.
  • We still have enormous inequity in the labour market.
  • Health and safety is still a major issue, especially in the small businesses and informal businesses.
  • The promotion of sound labour relations is at an all-time low.
  • The DoL does not have the wherewithal and the number of inspectors to monitor the impact of legislation.
  • The DoL sets itself very low performance targets in all its areas so as to ensure that it either reaches 75% or 100% in most cases.
  • The IES programme reported great achievements in most provinces except in Mpumalanga province. Despite this, the inspectorate is completely under resourced, under staffed and clearly does not have a proper budget.
  • The PES programme seems to have indicated an overall performance of 100%, but they are not making even the slightest dent in the unemployment figures.
  • SEE are losing approximately R50 million in this quarter. It is strongly suggested that the R50m could be put to far better use and could be more efficient in running the procurement and sale of goods.
  • Direct employment of under 1 000 jobs by SEE is certainly not acceptable. However, this is reported as acceptable.
  • The CF reported only 43% overall performance. This is expected to improve probably in the next quarter.
  • The PSA was only able to save less than 5 000 jobs. In a country that has youth unemployment rate of 50%, this is a mere drop in the ocean and might not even be worth spending money on their institutions.
  • NEDLAC has a total income of R32.5 million and it appears that most of the monies are for goods and services. Is this purely for outsourcing?
  • UIF is still reporting enormous queues and long waits and their website and phone number being offline even though this has been a problem for over 20 years, it still has not been sorted out.

 

  1.         Recommendations

 

The Committee recommends that the Minister of Labour ensures that:

 

  • entities be consistent in their reporting e.g. Productivity SA reported specific quarter performance on some programmes and cumulative performance on others.
  • entities follow a standard format of reporting e.g. Productivity SA did not report financial performance while other entities did.
  • the IES programme be properly resourced in terms of inspectors and tools of trade to monitor the impact of legislation.
  • the Department sets itself realistic targets based on available resources and service delivery requirements.
  • the CF reports as to why after 2 years of having changed the nature of the computer system, only 43% achievement is reported.
  • the PSA has to be properly capacitated in order to be able to save more jobs.
  • the UIF devises a plan for dealing with the long-standing problems of long queues and connectivity. Such a plan has to be presented before the Committee as part of the annual performance plan.

 

 

Report to be considered.

 

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