ATC210513: Report of the Portfolio Committee on Employment and Labour on Budget Vote 31: Employment and Labour, the Strategic Plan of the Department and Entities 2020/21 – 2024/25 and the Annual Performance Plan of the Department and Entities 2020/21, Dated 12 May 2021

Employment and Labour

Report of the Portfolio Committee on EMPLOYMENT AND LABOUR on Budget Vote 31: EMPLOYMENT AND Labour, the Strategic Plan of the Department AND ENTITIES 2020/21 – 2024/25 AND the ANNUAL PERFORMANCE PLAN of THE DEPARTMENT AND ENTITIES 2020/21, dated 12 may 2021

The Portfolio Committee on Employment and Labour, having considered the budgets of the Department and its entities in line with their 2020 - 2025 strategic plansand annual performance planswhich were presented on 5 and7May 2021, reports as follows:

1. INTRODUCTION

The Department of Employment and Labour derives its legislative mandate from the Constitution, particularly the Bill of Rights. Some of the relevant sections include section 9-Equality; section 10-Human dignity;section13-Slavery, servitude and forced labour; section 16-Freedom of expression; section 17 - Assembly, demonstration, picket and petition; section 18-Freedom of association; section 22-Freedom of trade, occupation and profession; as well as section 23-Labour relations. These Constitutional rights are given effect through various pieces of legislation, including the Labour Relations Act (1995); the Basic Conditions of Employment Act (1997); the Employment Equity Act (1998); the Occupational Health and Safety Act (1993);the Employment Services Act (2014); and the National Minimum Wage Act (2018).

This report covers the Strategic Plan of the Department 2020-2025, Annual Performance Plan 2021/22 and the Budget Review of the Department and its entities. It is based on presentations made to the Portfolio Committee on Employment and Labour on 5, and 7 May 2021.

2. THE STRATEGIC PLAN OF THE DEPARTMENT OF EMPLOYMENT AND LABOUR 2020- 2025

2.1. Programmes and entities of the Department

The functions of the Department are structured into four programmes, namely:

Programme 1: Administration
Programme 2: Inspection and Enforcement Service
Programme 3: Public Employment Services
Programme 4: Labour Policy and Industrial Relations

The following entities report to the Department:

Unemployment Insurance Fund (UIF)
Commission for Conciliation, Mediation and Arbitration (CCMA)
Compensation Fund (CF)
National Economic Development and Labour Council (NEDLAC)
Productivity South Africa (PSA)

2.2. The Department and Medium Term Strategic Framework (MTSF) 2020 - 2025

In the medium term the Department will contribute to the following government service delivery MTSF priorities:

Priority 1: A capable, ethical and Developmental State
Priority 2: Economical transformation and job creation
Priority 3: Education, skills and health
Priority 4: Consolidating the social wage through reliable and basic services
Priority 6: Social cohesion and safer communities
Priority 7: A better Africa and a better world

2.3. Strategic plan per government MTSF priorities

2.3.1. Priority 1: A capable, ethical and developmental State

The outcome for this priority is to have a functional, efficient and integrated government. The five-year target is to fill all funded vacant posts within 4 months of becoming vacant. The current vacancy rate for the Department is 10%. The five-year target is to maintain a 3% vacancy rate.

With regard to ICT, the Department aims to ensure 98% system availability through acquisition, maintenance and improvement of ICT services. The availability of ICT system currently stands at 90%.

2.3.2. Priority 2: Economic transformation and job creation

The first outcome for Priority 2 is more decent jobs created and sustained, with youth, women and persons with disabilities prioritised. The five-year target is to monitor and report on the target of creating 275 000 jobs per year, which was set by the Presidential Job Summit agreement.

To create 256 050 jobs for the youth in contribution to the Job Summit Agreement target of creating 1 million jobs through the Presidential Comprehensive Youth Employment interventions by 2024.

Furthermore, the Department plans to have the Employment Policy finalised and implemented by 2024. The policy aims to regulate employment of foreign nationals, without being xenophobic.

The second outcome for this government priority is to invest for accelerated inclusive growth. The five-year target is to inspect 18 420 workplaces, inclusive of 1 820 DG reviews and ensuring that these workplaces are transformed.

The third target is to ensure increased economic participation, ownership, access to resources, opportunities and wage equality for women, youth and persons with disabilities. The five-year target is to inspect 838 560 workplaces to enforce compliance with the National Minimum Wage Act and the Basic Conditions of Employment Act.

2.3.3. Priority 3: Education, skills and health

The five-year target for this objective is to inspect 421 620 workplaces for compliance with Occupational Health and Safety legislation. The Department conducted 23 844 inspections in the previous financial year and 397 776 are planned for the 2021/22 to 2024/25 financial years.

2.3.4. Priority 4: Consolidating the social wage through reliable and basic services

The outcome for this priority is to have comprehensive social security coverage. This would be achieved through enforcement of compliance to Unemployment Insurance Act, Unemployment Insurance Contributors Act and Compensation for Occupational Injuries and Diseases Act. The five-year target is to inspect 131 580 employers so as to improve coverage for employees.

2.3.5. Priority 6: Social cohesion and safer communities

The outcome for this government priority is to achieve equal opportunities, inclusion and redress. To this end, the Department is in the process of amending the Employment Equity Act, so as to set sector targets. The ultimate aim is to have the Employment Equity Act amended, enacted and enforced by 2024.

The Department’s five-year target is to achieve at least 50% representation of Africans at middle and senior management levels and 2.5% representation of persons with disabilities in employment by 2024.

The Department also aims to develop and implement anincomedifferential data collection tool (EEA4 form) for designated employers by 2022.

2.3.6. Priority 7: A better Africa and a better World

The five-year target for this government priority is to fulfil 90% of the country’s obligations to SADC and AU as well as ensuring that South Africa’s participation in international organisations is secured to advance national interest.

2.4. The Annual Performance Plan of the Department of Employment and Labour

Table 1: Budget allocation of the Department 2021/22

Programme		Revised Estimates	Medium Term Expenditure Estimate
R-thousand		2020/21	2021/22	2022/23	2023/24
1.	Administration	926 814	1 003 867	1 026 754	1 030 432
2.	Inspections and Enforcement Services	613 449	633 801	637 206	638 357
3.	Public Employment Services	588 664	610 157	618 939	621 554
4.	Labour Policy and Industrial Relations	1 170378	1 257 888	1 276 404	1 280 891
Total		3 299 305	3 505 713	3 559 303	3 571 234
Economic Classification
Current Payments		1 942 196	2 076 461	2 101 928	2 104 802
Compensation of Employees		1 364 452	1 375 657	1 384 089	1 384 763
Goods and Services		577 744	700 804	717 839	720 039
Transfers and Subsidies		1 292 282	1 362 061	1 385 731	1 392 088
Payment for Capital Assets		64 827	67 191	71 644	74 344
Total		3 299 305	3 505 713	3 559 303	3 571 234

Source: Presentation to the PC on Employment and Labour dated 5 May 2021

2.4.1. Programme 1: Administration

The purpose of this programme is to provide strategic leadership, management and support services to the Department.

The budget allocation for Programme 1 amounted to R1 billion in 2021/22 financial year. This is the second highest programme budget allocation after Programme 4.

The annual performance plan of the programme includes:

Vacant funded posts maintained at 3% or less every quarter.
A gender responsive recruitment process. To have 45% of SMS positions occupied by women.
To increase systems availability to 98%.
Resolution of 93% reported incidents of corruption in the Department by disciplinary and criminal interventions.
Compile one Annual Financial Statement by 31 May 2021 and three Interim Financial Statements 30 days after each quarter. The financial statements must comply with guidelines issued by the National Treasury.
Reporting of all detected irregular and unauthorised expenditure cases to the Accounting Officer.
Reporting of all detected fruitless and wasteful expenditure cases to the Accounting Officer.

2.4.1.1. Risks and Mitigation

Key Risks

Inability of modernisation programme to meet intended objectives.

Risk Mitigation

Business process reengineered.
Business process mapping.
Stakeholder engagement.

Key Risk

Structural deficiencies/ inadequate organisational structure to service the Department.

Risk Mitigation

Facilitate review of the existing Departmental structure.
Engage National Treasury to secure funding through the OCFO.

Key risk

Increase in vacancy rate.

Key Mitigation

HR audits to be conducted.
Reconciliation of approved structure and PERSAL information.
Monitoring of vacancy rate.
Advocacy sessions twice a year.

Key Risk

Increase in fraud and corruption.

Key Mitigation

Management to sensitize officials about the stance of zero tolerance to fraud and corruption during staff meetings.
Implementation of consequence management.
Frequent improvement on system controls.
Continuous reporting of all suspicions to Risk Management Unit.
Continuous conducting fraud and ethics awareness.
Every report/ transaction to be scrutinised prior to being signed-off.
Conduct monthly verification including (monthly reconciliation, statistics verification, etc.)

Key Risk

Budget spending not aligned with performance targets and structures.

Key Mitigation

Engage departmental executives to reconfigure MSS across the branches to monitor the budget spending.
Follow up and report progress on procurement plans.

Key Risk

Non-submission of financial statements as per stipulated time frames.

Key Mitigation

Distribute financial circulars with dates for timely submission and compliance.

Key Risk

Failure to detect and report irregular expenditure.

Key Mitigation

Separation of finance and SCM functions to be headed by specialists in the Provinces.
Capacity building of the newly appointed personnel.
Induction and training of finance on circulars.

Key Risk

Poor, below standard security services and outdated security infrastructures.

Key Mitigation

Security assessment to be conducted per province.
Upgrading security systems.
Support procurement of contract security services and alarms systems at the provinces.

Key Risk

Exposure of the department to litigation.

Key Mitigation

Development and implementation of the litigation strategy.
Advocacy sessions with business.
MOUs signed with business units.

2.4.1.2. Budget Cuts Implications

The ICT plan to improve on the current ageing infrastructure and services will not be fully implemented.

The Department will implement the priority areas that urgently need to be attended to.

The full rollout of tools of trade to enable staff to work remotely.

Prioritise the key personnel and revisit the current specification of the mobile devices without compromising on quality and ensuring that the coverage is widened.

The network will not be upgraded to meet the required standards of the SAP applications.

Explore the use of mobile network to lessen the burden on the SITA network.

The Department will not be able to capacitate its disaster recovery site to meet the minimum required standards, the current measures are not adequate according to the set industry standards.

Explore cloud disaster recovery solutions.

Attracting requisite appropriate skills within the ICT environment

Reskilling the existing personnel to cover the shortcomings in the skills set.

The inability to capacitate the department and address emerging governance issues such as ethics management, human resources needs, OHS and Employee Health and Wellness matters, which have become very critical since the existence of COVID 19.

The creation of contract, non-permanent positions in the short-term to deal with the capacity deficiencies in the needy areas.

2.4.2. Programme 2: Inspection and Enforcement Services

The purpose of this programme is to realise decent work by regulating non-employment and employment conditions through inspection and enforcement, to achieve compliance with all labour market policies.

The budget allocation for this programme amounted to R633.8 million in the2021/22 financial year.

The annual performance plan of this programme includes:

To inspect 296 904 employers in 2021/22 financial year to determine compliance with employment law. Of these inspections, 60 696 and 62 688 will be conducted in Gauteng and KwaZulu-Natal respectively. The majority of the inspections (168 384) will be to determine compliance to the Basic Conditions of Employment Act.
To serve 90% of non-compliant employers with notices in terms of relevant labour legislation within 14 calendar days of the inspection.
To refer 65% of non-compliant employers for prosecution within 30 calendar days.
To conduct 4 seminars and 2 conferences in 2021/22 financial year to enhance awareness of employment law.

2.4.2.1. Key Risks and Mitigation

Key Risk

Non-compliance by employers and users with labour legislation.

Key Mitigation

Strengthening of sector specific advocacy by utilising various platforms at both the provincial and national level.
Improve the conducting of follow-up inspections to strengthen monitoring in areas of non-compliance.
Effective implementation of existing MOUs.
Establish and maintain partnerships in key sectors where there are no MOUs.
Provinces to commission blitz inspections in targeted problematic or high risk areas.
Improve on referring all employers who fail to comply with expired notices for prosecution.

2.4.2.2. Budget Cut Implications

There will be reduction of visits to workplaces as travelling may have to be curtailed.
Inspectors may not be provided with tools of trade, especially in reference to refreshing of laptops and provision of cars.
Advocacy and outreach campaigns will be affected. The objective of empowering stakeholders in terms of the offering of our employment laws may not be realised.
Theirs is likely to be decrease in the rate of enforcing compliance of employers/ entities who are flouting the law.
The training and development programme of inspectors may not be fully realised.

The following are mitigating strategies:

Improving stakeholder relations to ease funding needs and collaborate on areas of agreement as regulated by various MOUs.
Taking advantage of technology so that we are enabled to conduct remote inspections where possible, training, advocacy sessions.
Streamlining some processes to build in efficiencies e.g. Conducting only DG reviews and reassessments in the space of EEA instead of conducting procedural inspections.
Exploring models that would improve self-regulation. This could free up resources that will focus only in areas of concern.

2.4.3. Programme 3: Public Employment Services

The purpose of this programme is to provide assistance to companies and workers to adjust to changing labour market conditions and to regulate private employment agencies.

The budget allocation for this programme amounted to R610.2 million in the 2020/21 financial year.

The annual performance plan of this programme includes:

To register 800 000 work-seekers on the Employment Services of South Africa (ESSA) database. Of these, 208 000 and 136 000 work-seekers will be registered in Gauteng and KwaZulu-Natal respectively.
To register 100 000 employment opportunities on ESSA. Of these, 19 158 and 15 790 opportunities will be registered in Gauteng and KwaZulu-Natal.
To provide 230 000 work-seekers with employment counselling in 2021/22 financial year. Of these 47 460 and 29 206 work-seekers provided with employment counselling will be in Gauteng and KwaZulu-Natal respectively.
To fill 50 000 registered employment opportunities with registered work-seekers. Of these, 9 579 and 7 895 registered employment opportunities will be filled with registered work-seekers in Gauteng and KwaZulu-Natal.
To conclude 20 partnership agreements with various stakeholders.
To develop and approve one policy in the year 2021/22.

2.4.3.1. Key Risks and Mitigation

Risks

Insufficient placement of registered work-seekers in registered opportunities.

Risk Mitigation

Collaboration with the Presidency Programme Management Office, UIF, other departments and entities, the private sector and NGOs in providing a range of work seeker services.
Further development of ESSA online services.
Establishment of youth centres and roll-out of 24 PES mobile units.
Conclusion of strategic partnership agreements with employers and institutions to use ESSA for recruitment.
Development and implementation of National Employment Policy (sub-themes of amendments to employment services legislation).
Provision of funding to entities assisting PES inemployment promotion (SEE, Productivity SA, CF, NGOs, UIF)

2.4.3.2. Budget Cuts Implications

The budget reductions of R25,000m in 2021/22, R45,000m in 2022/23 and R77,000m in 2023/24 over the MTEF period were effected on PES.
The budget reduction on CoE, Goods and Services, Transfers and Subsidies have negative impact on service delivery.
Procurement of Goods and Services for additional recruited staff as well as, tools of trade to assist them to carry out their functions got limited.
Attempt to close gap on work-seekers to access the labour market, were restricted, including PES ability to assist work-seekers with job search and placement.
Plans were put in place to obtain external funding for the procurement of goods and services.
Donor funding were accessed to establish employment services mobile units to enhance work seekers employability and placement.
Implementation of section 12 of the Employment Services Act by UI and CF is on process.

2.4.4. Programme 4: Labour Policy and Industrial Relations

The purpose of this programme is to facilitate the establishment of an equitable and sound labour relations environment and the promotion of South Africa’s interests in international labour matters through research, analysis and evaluating labour policy, and providing statistical data on the labour market, including providing support to institutions that promote social dialogue.

The budget allocation for this programme amount to R1.3 billion in 2021/22 financial year. This is the highest programme budget allocation of the Department of Employment and Labour.

The annual performance plan of this programme includes:

To finalise Employment Equity Act amendments by 31 March 2022
To publish the 2020-2021 Annual Employment Equity Report and Public Register by 30 June 2021.
To develop2021-2022 Annual Employment Equity Report and Public Register by 31 March 2022.
To publish the Code of Good Practice on elimination of harassment and violence in the world of work by 31 March 2022.
To review the National Minimum Wage level by 31 March 2022.
To assess and verify 100% of collective agreements within 180 working days of receipt by 31 March 2022.
To approve or refuse 100% of labour organisations’ applications for registration within 90 working days of receipt by 31 March 2022.
To have two reports on the implementation of bilateral cooperation and multilateral obligations signed off by the Minister by 30 April 2021. The annual implementation report will be signed off by the Minister by 30 April 2021 and the mid-term implementation report signed off by the Minister by 31 October 2021.
To produce four annual labour market trend reports on the impact of labour legislation. Two will be produced by end of June 2021 and two by end of March 2022.
To produce two research reports and two data collection instruments in line with RME Agenda by 31 March 2022.

2.4.4.1. Key Risks and Mitigation

Key Risks

Insufficient labour market research conducted in terms of monitoring the impact of legislation.

Risk Mitigation

Developing a monitoring and evaluation agenda which lists a number of research topics that would be outsourced and conducted over a period of 24 months.
Limit number of research that requiring tender procurement and increase procurement through RFQ.
Procure an online survey tool to facilitate more research conducted internally by departmental staff.

2.4.5. Supported Employment Enterprises (SEE)

The purpose of the SEE is to:

Facilitate supported employment for people with disabilities;
Provide work opportunities for persons with disabilities;
Develop and implement programmes that promote the employability of persons with disabilities, including persons with permanent disablement as defined in the COIDA (Act No. 130 of 1993), in the light of their evolving needs in a changing economy; and
Perform any other function as may be prescribed by the Minister.

2.4.5.1. SEE Strategic Plan

SEE contributes to government priority 2, which is economic transformation and job creation. The first outcome of this priority for the SEE is to provide additional job opportunities for people with disabilities. The outcome indicator is the number of jobs created through the presidential comprehensive youth employment interventions. SEE currently employs over 1 250 people with disabilities.

The five-year target is as follows:

25 additional persons with disabilities employed in the SEE factories by the end of March 2021.
25 additional persons with disabilities employed in the SEE factories by the end of March 2022.
120 additional persons with disabilities employed in the SEE factories by the end of March 2023.
130 additional people with disabilities employed in the SEE factories by the end of March 2024.
100 people with disabilities employed by 31 March 2025.

The second outcome of priority 2 is to increase the sales revenue. The outcome indicator is the percentage sales increase to ensure financial viability and growth.

SEE currently generates R61 million and receives R141 million in transfer funding. Its strategic intent is to generate over R200 million per annum by strengthening relationships and

SEE five-year target is as follows:

5% annual increase of sales revenue from goods and services by the end of March 2021.
5% annual increase of sales revenue from goods and services by the end of March 2022.
25% annual increase of sales revenue from goods and services by the end of March 2023.
35% annual increase of sales revenue from goods and services by the end of March 2024.
40% annual increase of sales revenue from goods and services by the end of March 2025.

The third outcome of priority 2 is to increase the SEE’s market share. The outcome indicator is to establish customer agreements for sustainable income to implement the SEE mandate. SEE has entered into three customer agreements.

SEE five-year target for this outcome is as follows:

Three customer agreements entered into by the end of March 2021.
Five customer agreements entered into by the end of March 2022.
Seven customer agreements entered into by the end of March 2023.
Ten customer agreements entered into by the end of March 2024.
Five customer agreements entered into by the end of March 2025,

2.4.5.2. SEE Annual Performance Plan 2021/22

The annual performance targets for 2021/22 are as follows:

To employ 25 additional persons with disabilities in the SEE factories by the end of March 2022.
To achieve an annual increase of 5% in sales revenue from goods and services by the end of March 2022.
To enter into five customer agreements by the end of March 2022.

2.4.5.3. Key Risks and Mitigation

Key Risk

Inability to generate work opportunities.

Risk Mitigation

Improved marketing.
Develop new innovative products.
Secure five new customer agreements.
Increase sales by 5%.

The entities reporting to the Department of Employment and Labour made their presentations to the Portfolio Committee on Employment and Labour in the order outlined below.

3. ENTITIES OF THE DEPARTMENT OF EMPLOYMENT AND LABOUR

The entities reporting to DEL are:

3.1. Unemployment Insurance Fund (UIF)

3.2. Commission for Conciliation Mediation and Arbitration (CCMA)

3.3. National Economic Development and Labour Council (NEDLAC)

3.4. Productivity South Africa (PSA)

3.5. Compensation Fund (CF)

3.1. Unemployment Insurance Fund (UIF)

The Constitutional mandate of the UIF is derived from section 27(1)(c) of the Constitution of the republic of South Africa.

The UIF provides social security to its contributors in line with section 27(1)(c); which states:

“everyone has the right to have access to social security, including, if they are unable to support themselves and their dependants, appropriate social assistance”.

The UIF administers the following legislation:

The Unemployment Insurance Act (Act No. 20 of 2001) as amended, which empowers the UIF to register all employers and employees for unemployment insurance benefits.
The Unemployment Insurance Contributions Act (Act No. 4 of 2002), which provides for the imposition and collection of contributions for the benefit of the UIF.

The Unemployment Insurance Fund (UIF) contributes to the following government priorities:

Priority 1: A capable, ethical and developmental State
Priority 2: Economic transformation and job creation
Priority 4: Consolidating social wage through reliable and basic service
Priority 6: Social cohesion and safe communities.

3.4.1. Strategic Plan of the 2020 - 2025

3.4.1.1. Five year indicators and targets per government priority

Priority 1: A capable, ethical and developmental State.

Table 2: Indicators and targets per Priority 1

Outcome	Outcome Indicator	Baseline	Five year target
Functional and efficient UIF	Improved audit opinion obtained from the Auditor-General	Obtained a qualified audit opinion in 2018/19	Clean audit opinion obtained by March 2024
	Wasteful, fruitless and irregular expenditure reduced	Fruitless and wasteful expenditure: R79 897 326.14 as at January 2020 Irregular expenditure (confirmed): R92 777 as at January 2020	100% elimination of wasteful and fruitless expenditure and 75% reduction of irregular expenditure by March 2024
	Improved turnaround time to pay suppliers	99.98% (6 654/6 655) within 30 calendar days as at March 2020	100% valid invoices paid 30 calendar days after receipt by March 2024
	Improved resolution of reported incidents of fraud and corruption.	69.5% (16/23) as at January 2020	95% resolution of reported incidents of corruption in UIF by March 2024
	COVID-19 interventions implemented.	No baseline information.	90% of COVID-19 TERS applications with valid, accurate and complete information paid within 5 working days after receipt by March 2021.
	COVID-19 TERS ICT system implemented	No baseline information	COVID-19 TERS ICT system developed and deployed by March 2021.
	Identified COVID-19 cases verified.	No baseline information	100% of identified COVID-19 cases verified by march 2024
	Functional ethics structure	No baseline information	Ethics committees established and terms of reference adhered to by March 2024
Financially sustainable UIF	Sustainable administrative expenditure	13.7% (750 336/ 5 460 507) as at March 2020	≤15% by March 2025
Financially sustainable UIF	Improved return on listed investments	Benchmark: -10.88% Performance: -8.25% 2.63% achievement as at March 2020	Percentage returns on listed investments ≥ the benchmark by March 2025
Strengthened institutional capacity of the Fund	Improved human resource capacity	Vacancy rate was 6.6% (45 posts/602 establishment) as at April 2020	≤5% by March 2025

Source: Presentation to the PC: Employment and Labour dated 5 May 2021

Priority 2: Economic transformation and job creation

Table 3: Indicators and targets per Priority 2

Outcome	Outcome Indicators	Baseline	Five year target
Moe decent jobs created.	UIF assets and management funds set aside for funding employment creation schemes	Budgeted R7.6 billion for next three years	10% set aside by March 2025

Source: Presentation to the PC: Employment and Labour dated 5 May 2021

Priority 4:Consolidating the social wage through reliable and quality basic services

Table 4: Indicators and targets per Priority 4

Outcome	Outcome Indicator	Baseline	Five year target
An inclusive and responsive social security coverage	Integrated Claims Management System (ICMS) implemented, support and maintenance provided	Request for handover submission has been approved by the National Treasury	Support and maintenance of the ICMS by March 2023
	An inclusive and responsive social security coverage	Registered 795 178 new employees as at March 2020.	4 600 000 new employees registered by March 2025
		Registered 59 984 new employers as at March 2020	4 500 000 newly registered employers by march 2025
		96% (57 394/ 59 984) new companies were created with registration document (UI54) within 1 working day as at March 2020	100% of new companies created with registration document (UI54) within 5 working hours by March 2024
		93% (8-98/ 8 677) applications with complete information were issued with compliance certificates, tender letters or non-compliance letters within 10 working days as at March 2020.	98% unemployment benefit claims with complete, accurate and verified information approved or rejected within 8 working days by March 2022.
		92% (126 442/ 136 897) of in-service benefits; maternity illness and adoption benefits were approved or rejected within 10 working days as at March 2020.	98% of in-service benefits; maternity illness and adoption benefit claims with complete, accurate and verified information approved or rejected within 5 working days by march 2022.
		95% (14 539/ 15 337) of deceased benefit claims were approved/ rejected within 20 working days as at March 2020.	98% of deceased benefit claims with complete, accurate and verified information approved or rejected within 10 working days by March 2022.

Source: Presentation to the PC: Employment and Labour dated 5 May 2020

Priority 6: Social cohesion and safer communities

Table 5: Indicators and targets per Priority 6

Outcome

Outcome Indicators

Baseline

Five year target

Equal opportunities, inclusion and redress.

Improved representation of the designated groups across occupational levels

87% (69/79) as at April 2020. ≥75% of Africans in middle and senior management level by Marc 2024

2.8 % (16 officials/ 562) of employees with disabilities employed within the UIF as at 2020

≥2.5% of persons with disabilities between the age of 15 and 65 employed in line with EEA by March 2024

3.4.2. Annual Performance Plan 2021/22

Table6: 2020/21 Budget and MTEF Estimates

Programme		Revised Estimate	Medium Term Expenditure Estimate
		2020/21	2021/22	2022/23	2023/24
		R’000	R’000	R’000	R’000
1.	Administration	2 973 475	3 278 842	3 419 105	3 526 909
2.	Business Operations	97 039 920	43 895 962	28 053 390	21 818 841
3.	Labour Activation Programme	2 757 777	2 931 272	3 060 248	3 194 899
Total		102 771 171	50 106 076	34 532 743	28 540 649

Source: Presentation to the PC: Employment and Labour dated 5 May 2021

Annual Performance Plan per Programme

3.4.2.1. Programme 1: Administration

The purpose of the Administration programme is to provide management, strategic and administrative support services to management. This programme received a budget of R3.278 billion in 2021/22 financial year.

The annual performance targets for this programme are:

To reduce wasteful and fruitless expenditure by 30%.
To reduce irregular expenditure by 20%.
To maintain cost of administrative expenditure at no more than 15 percent.
To pay all valid invoices within 30 calendar days after receipt.
To maintain a vacancy rate of no more than nine percent.
To employ two percent of persons with disabilities in line with EEA.
To have not less than 75% representation of Africans in senior and middle management levels maintained in line with EEA.
To replace Siyaya with SAP system.
To create 5000 jobs through UIF funding and investment initiatives.
To resolve all internal and external audit findings.
To finalise simple cases of fraud within 30 working days, complex cases within 90 working days and COVID-19 cases within 60 working days.
To establish ethics and transformation committee and produce two reports on the functioning of the Committee and have reports approved by UIC.

3.4.2.2. Programme 2: Business Operations

The purpose of this programme is to collect contributions and pay benefits. This programme is allocated R50.561 billion in 2021/22 financial year.

The annual performance targets for this programme are:

To register 80 000 new employers
To register 860 000 new employees.
To create 95% new companies with complete, accurate and verified information with registration documents (UI54) within one working day.
To issue compliance certificates, tenders letters or non-compliance letters to 90% of applications with complete, accurate and verified information within ten working days.
95% of complete, accurate and verified benefit payment documents created after receipt within five working days.
To approve or reject 90% of valid claims (unemployment benefit) with complete, verified and accurate information within 15 working days.
To approve or reject 92% of valid claims (in-service benefits, maternity, illness and adoption benefits) with complete, verified and accurate information within 10 working days.
To approve or reject 92% of valid claims (deceased benefits) with complete, verified and accurate information within 20 working days.

3.4.2.3. Programme 3: Labour Activation Programme

The purpose of this programme is to enhance employability, enable entrepreneurship and preserve jobs through labour market integration measures that seek to retain or reintroduce contributors into employment. This programme is allocated R2.931billion in the 2021/22 financial year.

The annual performance targets of this programme are:

To increase the number of youths participating on Public Employment Programmes for enhanced employability to 12 210.
To approve or reject 90% of Temporary Employer Employee Relief Scheme (TERS) applications within 15 working days.
To provide 40 700 UIF contributors with learning opportunities.
To support 30 cooperatives and 15 SMMEs.

3.2. Commission for Conciliation Mediation and Arbitration (CCMA)

The CCMA’s constitutional mandate is drawn directly from section 23 of the Constitution of the republic of South Africa that deals with labour relations.

The CCMA is a statutory body established in terms of section 112 of the Labour Relations Act (LRA).

In terms of section 113 of the LRA, the CCMA is independent of the State, any political party, trade union, employer, employers’ organisation, federation of trade unions or federation of employer’ organisations.

The CCMA contributes to the following priority areas of government:

Priority 1: Capable, ethical and developmental State
Priority 2: Economic transformation and job creation
Priority 3: Education, skills and health
Priority 4: Consolidating the social wage through reliable and basic services
Priority 6: Social cohesion and safer community
Priority 7: a better Africa and world

The work of the CCMA is structured into the following five programmes:

Administration
Proactive and relevant labour market intervention
Special interventions and support
Efficient and quality dispute resolution and enforcement services
Effective strategy management and governance

3.2.1. Annual Performance Plan 2021/22

3.2.1.1. Programme 1: Administration