Minister of Employment and Labour Budget Speech

Protocol

• Honourable Speaker
• Ministers and Deputy Ministers present
• Members of the House
• The Director-General and Senior Managers of the Department of Employment and Labour, and its entities
• Ladies and gentlemen

It is my honor and pleasure to be afforded an opportunity to add on what the Minister of Employment and Labour presented to this House. I have joined a moving train and hope to make a contribution in improving the working and living conditions of the workers of our country and also improve relations between employers and their employees.

 The Minister, made reference to the “Unemployment in the context of our country as structural, deep-seated systemic and stubborn" and referred to Stats SA Quarter 4 4 figures that I don't have to repeat and the partnerships that we are forging in our quest to reducing these high unemployment levels.

 The Department has a number of entities that are established in terms of various laws and work collaboratively to contribute to employment entry, employment retention, employment safety, employment security, employment cushioning.

It is within this context that we have the Public Employment Services that we established to assist work seekers and companies to adjust to changing labour market trends through the following interventions:

 - Registration of work seekers and work opportunities and facilitating placement after performing matching and counseling services. This work is done through the 126 Labour Centres, the youth centres, the 440 visiting points that we access through our mobile units and cars and our online systems.

- Retension of employment through Productivity promotion and Turn Around Solutions to ailing companies through our Productivity South Africa to improve work place relations and change.

 - Rolling out special employment programs for persons with disabilities in our quest not to leave anyone behind. We do this through the 13 Supported Employment Enterprises that we have in 08 of the Nine Provinces. We are currently exploring the 3 establishment of one more in Mpumalanga. These SEEs employ youth, men and women of different races with various disabilities and produce very good quality furniture, linen and steel products. We also subsidize 09 National organisations that promote the employment of people with disabilities.

- We provide funding through the Unemployment Insurance Fund, Labour Activation Program, to support scheme that places people in employment.

- We have established special Rehabilitation and re-integration programs for people injured at work to continues with their lively hood under the Compensation Fund.

 - We assist companies in distress through the UIF/CCMA and Productivity SA to minimize levels of retrenchments.

- We set minimum standards and basic condition of employment through the Ministerial determinations to protect workers involved in public and private employment programs.

 - We are active players in the growth of this country through massive investments that we make on the UIF and Compensation Fund reserves to employment creation projects overseen by the Public Investment Cooperation.

- We are working with the Presidency in the Presidential Youth Employment Initiative, to coordinate public employment programs and to search for innovative solutions that can bring about tangible changes in this area. And finally

- We are working on policies such as the National Labour Migration, the National Employment Policy, Reviewing our laws to accommodate the Platform Workers, Small Business and 4 IR.

Honorable members, all these interventions require all of us and DEL will not succeed without the support of the labour, community and employers.

 I thank you​

 Honourable Chair

Honourable Minister

Honourable Deputy Minister

Honourable members

Director General

Senior management

Ladies and Gentleman

Honourable Chairperson,

 Thank you for the opportunity to address the house on this important occasion of the 7th Administration's maiden budget vote ( 31) for the Department of Employment and Labour. Mine is to elaborate on some of the salient points and issues that were raised by my Minister , Hon Meth.

One of the landmark achievements highlighting the critical role played by the Department of Employment and Labour in the 30 years of democracy, it can be better understood through its post-apartheid labour dispute resolution mechanism. To appreciate this, it is necessary to first paint the picture of the pre-1994 dispute resolution landscape.

It was a statutory dispute resolution system that was lengthy, complex, and riddled with technicalities characterized the system. This led to a proliferation of disputes and heightened industrial action. Parties often viewed dispute resolution as obstacles to litigation rather than effective means of resolving disputes. Fewer than 30% of disputes referred to industrial councils resulted in settlement, with only 20% achieving resolution.

Commission for Conciliation, Mediation and Arbitration (CCMA)

 The overhaul of labour market saw the 1996 establishment of the Commission for Conciliation, Mediation and Arbitration (CCMA) as an innovative way of addressing the challenges posed by dispute resolution. Its establishment provided the labour market with an accessible, user[1]friendly, and, above all, inexpensive labour dispute resolution system. Some of the main achievements of the CCMA include swift and efficient resolution of employment disputes.

 The overwhelming majority of cases concern unfair dismissal, followed by unfair labour practices, collective bargaining, and severance pay. Since its inception in 1996, the CCMA has dealt with four million thirty-nine thousand two hundred sixty-five (4,039,265) cases, and its settlement rate has consistently hovered around 70%.

The average turnaround time for conciliation is 26 days, instead of the 30 days as stipulated in the Labour Relations Act and average turnaround time for arbitration is 31 days, compared to 90 days. As part of strengthening CCMA's capacity, the Department has tabled a number of labour law proposals to ensure that CCMA's efficiencies are strengthened, such as empowering CCMA to establish rules to expedite certain processes.

 NEDLAC

In the past three decades of democracy, NEDLAC has consistently held a central position in fostering social dialogue. It serves as a vital mechanism through which the Government, Organised Labour, Organised Business, and Community constituencies collaborate, engaging in problem-solving and negotiation to tackle a spectrum of economic, labour, and developmental challenges confronting the nation.

NEDLAC's pivotal role extends to influencing legislation and policy formulation, ensuring that diverse viewpoints and interests are considered in the decision-making process. It addresses a 3 wide array of critical issues such as employment laws, trade dynamics, industrial policy, and development strategies, all aimed at fostering a more inclusive and equitable economy.

Among NEDLAC's significant achievements are the 1995 Labour Relations Act, the 1997 Basic Conditions of Employment Act, the 1998 Employment Equity Act, the 1998 Skills Development Act, and the revised Unemployment Insurance Act. Other notable legislative milestones include the 2019 Companies Bill, the 2018 Competition Amendment Bill, and the 2019 National Minimum Wage Act. During challenging times, NEDLAC has brought together various parties, such as during the Electricity Summit, which resulted in a NEDLAC Accord, the development of the Framework for South Africa's Response to the International Crisis, and the Social Compact to support Eskom (2020).

Additionally, NEDLAC coordinated social partners' responses to the Covid-19 pandemic, including implementing the Covid-19 Temporary Employee Relief Scheme (TERS), drafting Occupational Health and Safety Directions for safe workplace reopening, and facilitating a vaccination campaign once vaccines became available. In response to the July 2021 unrest in KwaZulu-Natal and Gauteng provinces, NEDLAC proposed a package of measures, including support for uninsured businesses and addressing unemployment.

To ensure NEDLAC's work strengthens, the organization has amended its funding protocols to remain fit for purpose. It is further heartening to know that social partners share a common vision of addressing current unemployment, inequalities, and poverty through a consensus -driven approach

Productivity SA

Productivity SA is established in terms of the Employment services Act, No. 4 of 2014 improves productivity by diagnosing, advising, implementing, monitoring and evaluating solutions aimed at improving South Africa's sustainable growth, development and employment through increased competitiveness especially for companies that have but under administration or those that improve their productive. The NDP emphasises the need to create employment and drive economic growth as the means to uplift the lives of South Africans. It recognises that without productivity improvements, we cannot achieve these crucial objectives.

As at December 2023, Productivity SA through its Business Turnaround and Recovery Programme (BT&R) programme had enrolled 250 companies for assistance in enabling the turnaround and sustainability of the companies. The programme effectively saved 20 723 jobs. The 250 companies that were enrolled in the BT&R programme were spread across the width and breadth of South Africa. 1 524 jobs were created resulting in 22 247 jobs being saved overall.

Out of the 250 companies supported by the BT&R programme 93 were from Region 1 (Gauteng, North West, Limpopo), 63 from Region 2 (Western Cape, Northern Cape, Free State) and 94 from Region 3 (KwaZulu-Natal, Eastern Cape, Mpumalanga). Out of the 20 723 jobs saved 7 660 are in Gauteng, North West and Limpopo; 7 203 in Western Cape, Northern Cape and the Free State; and 5 860 in KwaZulu-Natal, Eastern Cape and Mpumalanga. Of the 2 431 Future Forum (FF) Members trained, 659 FF Members were trained in Region 1, 934 in Region 2, and 838 in Region 3.

In conclusion, the achievements of CCMA, NEDLAC, and Productivity SA exemplify the dedication to fostering inclusive growth, equitable opportunities, and effective governance. The Department of Employment and Labour looks forward to continue to support these institutions in their mission to build a prosperous South Africa for all.

I support the Budget Vote​