ATC131120: Report of the Select Committee on Labour and Public Enterprises on the Employment Services Bill [B 38B – 2012] (National Assembly – sec 75), dated 20 November 2013:

NCOP Public Enterprises and Communication

Report of the Select Committee on Labour and Public Enterprises on the Employment Services Bill [B 38B – 2012] (National Assembly – sec 75), dated 20 November 2013:

The Select Committee on Labour and Public Enterprises, having considered the subject of the Employment Services Bill [B 38B – 2012] (National Assembly – sec 75), referred to it, reports that it has agreed to the Bill with proposed amendments:

CLAUSE 35

(1) On page 12, in line 23, after “office”, to insert “or until the Board appoints a new Chief Executive Officer”.

CLAUSE 45

(1)  On page 14, in line 23, after “functions”, to insert “or until the Minister appoints a new Chief Executive Officer”.

The Democratic Alliance proposed amendments to the Bill, which were rejected by the Committee, as follows:

Clause no.

Content

Our position

5

“The Department must provide the following public employment services free of charge ...”

We believe that the bill should also allow for alternative models to match work-seekers with work opportunities. These could include the provision of financial support to private job-placement agencies that will be competing with one-another in terms of effectiveness, etc.  Cost-effectiveness is seldom a driver for services rendered by public officials.

8

“The Minister may ... make regulations to facilitate the employment of foreign nationals ...”
(a) ... that there are no other persons in the Republic with suitable skills ...
(c) preparation of a skills transfer  plan ...

While all countries have measures to protect local labour, it is not always easy to compare the skills levels required for certain tasks, or to determine whether others (with the qualifications required) will be willing to accept the working conditions of a specific job. We fear that the regulations may be cumbersome (such as the requirement to prepare a skills transfer plan) and lead to expensive delays in the completion of major contracts. (Skilled) labour is becoming increasingly mobile. Some skills are only in short-term demand, others are closely linked to individuals, such as that of international sports people, artists, etc.

10.

(1) The Minister may ... make regulations requiring employers to notify the Department of -
(a) any vacancy ...

The ability to quickly and efficiently fill vacancies is essential to achieve productivity and economic growth. We fear that this requirement may lead to delays and the Department trying to improve on their dismal job-placement record, by interfering with the filling of vacancies in the private sector.

12.

(1) The provision of public employment services must be financed from the money ..., in addition, be financed from -
(a) money allocated from the UIF…
(b) ... Compensation Fund …
(c) money generated from the registration of private employment agencies ...

Both the UIF and CF are sitting with billions in contributions by employers and employees. The primary task of these entities is to provide insurance, and not to fund ineffective government initiatives. Private Employment Services should be encouraged, and not be “taxed” in order to create an unfair advantage for the public sector.

13.

(1) The Minister may ... prescribe criteria for the registration of private employment agencies.
(2) The criteria ... must differentiate between private employment agencies -
(a) that are registered as temporary employment services; of
(b) that only seek to perform other employment services ....

This is another stab at “labour brokers” and we find the forced differentiation between the two sets of regulations unnecessary and restrictive for a sector that is trying to match job-seekers with vacancies.
Many (private) training institutions have in the past, as a service to their graduates, assisted them to find jobs. This may in future be regulated in a way what will discourage such initiatives.

20.

The Employment Services Board is hereby established.

While we did not vote against this clause, we do note with concern the proliferation of Boards by government, with its associated costs of remuneration, administration, etc.

Report to be considered.

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Report of the Portfolio Committee on Health on the Mental Health Care Amendment Bill [B39B - 2012] (National Assembly – sec 76), dated 12 November 2013

The Portfolio Committee on Health, having considered the Mental Health Care Amendment Bill [B39B - 2012] (National Assembly – sec 76), classified by the Joint Tagging Mechanism as a section 76 Bill, referred to it, reports that it has agreed to the Bill.

Report to be considered.

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