ATC201014: Report of the Select Committee on Petitions and Executive Undertakings on the Executive Undertakings made by the Deputy Minister Of Employment and Labour During the House Sitting of 28 July 2020, as Adopted on 14 October 2020

NCOP Petitions and Executive Undertakings

REPORT OF THE SELECT COMMITTEE ON PETITIONS AND EXECUTIVE UNDERTAKINGS ON THE EXECUTIVE UNDERTAKINGS MADE BY THE DEPUTY MINISTER OF EMPLOYMENT AND LABOUR DURING THE HOUSE SITTING OF 28 JULY 2020, AS ADOPTED ON 14 OCTOBER 2020

 

 

1. BACKGROUND

 

On 02 September 2017, the Honourable Deputy Minister of Employment and Labour (Minister) made the following executive undertakings during the Question and Answer Session: in the National Council of Provinces (House):

 

1.  Executive Undertaking 1: “Public Employment Services, in a joint programme with Higher Education, funded by the EU, will purchase 24 mobile units, to operate across all provinces."

 

1. Executive Undertaking 2: “The UIF is also committed to implementing its Section 5D obligations under the UI Act (as amended). It will set aside 10% of its assets for Labour Activation Programmes in support of jobs and training geared to the changing needs of the labour market.”

 

1. Executive Undertaking 3: “The UIF has committed R394 million to funding training for 26 000 – 5% to the youth and women. R5.9 million is committed to finance the interventions of the CCMA to preserve jobs.”

 

1.4    Executive Undertaking 4: “The UIF will provide R104 million to Productivity SA to support some 6 000 SMEs to improve productivity to preserve and create jobs.”

1.   Executive Undertakings 5: “The Fund is also focused on strengthening its online application system in advance of an uptick in claims. For those employers and healthcare practitioners who still experience challengers in accessing the CompEasy system, the Fund is embarking on a national campaign to assist stakeholders.”

 

 

 

1. PROCEDURE OF THE COMMITTEE

 

The concerned executive undertakings were referred to the Select Committee on Petitions and Executive Undertakings (Committee) by the Chairperson of the National Council of Provinces, on 06 August 2020, for it to scrutinise and subsequently report to the House on their implementation.

 

After their referral to the Committee, proceeded to extend an invitation to the Deputy Minister to appear before it and report on the progress made by the Department of Employment and Labour (Department) in implementing the concerned executive undertakings, which falls under its respective portfolio.

 

1. MEETING OF THE COMMITTEE

 

On 02 September 2020, the Deputy Minister and relevant officials of the Department appeared before the Committee to report on the progress made in implementing the executive undertakings under consideration.

 

The following Committee Members were present at the meeting with the Department:

 

3.1       Hon Z V, ANC, Eastern Cape (Chairperson);

3.2      Hon S Shaikh, ANC, Limpopo;

3.3      Hon T S C Dodovu, ANC, North-West;

3.4      Hon E M Mthethwa, ANC, KwaZulu-Natal;

3.5       Hon B M Bartlett, ANC, Northern Cape;

3.6      Hon I M Sileku, DA, Western Cape; and

3.7      Hon S E Mfayela, IFP, KwaZulu-Natal

 

The Committee Members present, at the meeting, were supported by the following Committee officials:

 

3.8       Mr N Mkhize, Committee Secretary;

3.9       Adv. T Sterris-Jaffer; Committee Research;

3.10    Mrs N Fakier; Executive Secretary; and

3.11      Mr M Dumezweni, Committee Assistance

 

The following representatives of the Department of Employment and Labour appeared before the Committee during the meeting:

 

3.12     Hon. B E Moloi, Deputy Minister,

3.13    Mr T Lamati; Director General;

3.14    Ms M Bronkhorst, Chief Operating Officer;

3.15    Mr S Morotoba; Deputy Director General-Public Employment Services;

3.16    Adv. M Yawa; Unemployment Insurance Fund (UIF) Corporate Head;

3.17    Mr K Mudumela, Chief of Staff-Ministry;

3.18    Mr Z Moweli; Head-Deputy Ministry Office;

3.19    Ms O Mjo, Ministry-Special Adviser;

3.20    Dr J Lewis, Ministry-Special Adviser; Mr S Mali;

3.21   Mr S Mali, Media Liaison Officer, Parliamentary Liaison Officer (PLO);

3.22   Ms K Magagane, PLO in DM Office;

3.23   Mr T Wababa, PLO; and

3.24   Mr W Dlwengu, DG’s Office 

 

1. PROGRESS REPORT BY THE DEPARTMENT OF EMPLOYMENT AND LABOUR

In their progress report to the Committee, the Deputy Minister and the Director-General reported as follows:

 

1.   Executive Undertaking 1:

The Department reported that a project plan and draw plan has been submitted to National Treasury for the 24 Mobile Units, and development of the mobile applications it is projected that the funding will be made available during the course of October 2020.

The Department is already working on a detailed implementation plan that includes amongst others:

• The allocation and rotation of staff at Provincial and Labour Centres to manage the Mobile Units
• Training of Staff to manage the Mobile Units
• Storage facility for the Mobile Units and
• The schedule of visiting points

 

1. Executive Undertaking 2:

The Department reported that the UIF intends to implement the undertaking within the timeframes as indicated in its Strategic Plan 2020/21 Annual Performance Plan. The undertaking shall be implemented over a period of 3 years. Table 1 – below tabulates the timeframes

 

Target	2020/21	2021/22	2022/23
% of Asset under management set aside to fund Employment Creation Schemes	1.6%	2%	4%
Number of jobs created through UIF funding and investment initiatives	5 000	10 000	1 500
Budgeted Amount in billions	R3 280	R3 444	R3 609

 

 

4.3 Executive Undertaking 3:

 

• Department reported that the UIF intends to implement the above undertakings within the timeframes as indicated in its Strategic Plan and the 2020/21 Annual Performance Plan. UIF plans to implement this undertaking over a period of 3 years. In Table 2 below are the timeframes.

The funds are already made available for the 2020/21 Financial Year. Applications for interventions are made through the CCMA under the Temporary Employer Employee Relief Scheme (TERS). The adjudication and approved or rejected process is done within 15 working days.

 

Table 2

Targets	2020/21	2021/2022	2022/23
Number of contributors provided with learning opportunities	27 000	40 700	40 700
Number of Youth Participating on Public Employment Programmes	6 000	12 210	12 210

 

4.4 Executive Undertaking 4:

The UIF in its plans to achieve this commitment during the course of this (2020/21) Financial Year concluded a Memorandum of Agreement (MoA) with Productivity SA. The 6 000 SMMEs are expected to be assisted by 31 March 2021 as part of the funding agreement and its One-Year-Project-Plan. As per the MoA the R104 million will be dispensed to Productivity SA in 3 Tranches as indicated in Table 3 below:

 

Tranches	Amount	Remarks
Tranche 1	R23 429 980.00	This tranche has been dispensed to Productivity SA to initiate work to be done
Tranche 2	R39 832 980.00	This tranche has not been dispensed yet, it will be dispensed in line with provisions of the MoA
Tranche 3	R41 308 040.00	The tranche has not been dispensed yet, it will be dispensed in line with provisions of MoA

 

   

    4.5 Executive Undertaking 5:

 

• Department reported that the fund has rolled out the CompEasy System by the South African Broadcasting Corporation Education (SABC) to roll out its National Campaign. The Funds National Campaign commenced at the end of July 2020 and it is anticipated that it will end at the end of September 2020.

 

1. OBSERVATIONS AND KEY FINDINGS

 

In noting the progress report given by the Department of Employment and Labour in relation to the implementation of the executive undertakings under review, the Committee made the following observations and key findings:

 

    5.1    The Department has a programme which falls under the Public Involvement Services, supporting people with disability. As well as an Employment Enterprises, which provides employment opportunities strictly to people with disability across the country (except Mpumalanga Province).

 

     5.2   The Department indicated that some of the challenges the SMMEs experiences is the unavailability of working capital. It reported that the Department has an instrument called the Impact Social Fund, administered by the Public Investment Corporation (PIC). The scheme ensures support mechanism and sustainability to SMMEs.

 

   

1. RECOMMENDATIONS

 

Further, in noting the progress report made by the Deputy Minister of Department of Employment and Labour, the Committee, lastly, observes that the executive undertakings have been adequately implemented and therefore recommends that they be closed.

 

Report to be considered.