A presentation to the Portfolio Committee

DEPARTMENT OF LABOUR

CONTENTS:

1. Organisational structure

2. Results 2003/2004 Financial Year (DoL)

3. Roll-over to 2004/2005 Financial Year

4. Results 2003/2004 Financial Year (Stat)

5. Auditor-General’s report

6. Achievements per Programme

1. Organisational Structure

2. Financial Results:Department of Labour –2003/2004

Financial Results (DoL):2003/2004 (1)

Programme Original Adjustments Adjusted Actual Variance VarianceAppropriation Effected Appropriation Expenditure (over)/under as a %

2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004R'000 R'000 R'000 R'000 R'000

Administration 210,840 46,602 257,442 246,781 10,661 4.14%Occupational Health and Safety 26,481 (13,779) 12,702 12,548 154 1.21%Social Insurance 269,639 (250,609) 19,030 15,010 4,020 21.12%Employment & Skills Development Services 175,055 (35,664) 139,391 139,302 89 0.06%Labour Relations 185,544 4,568 190,112 190,090 22 0.01%Labour Policy 27,821 (636) 27,185 27,159 26 0.10%Service Delivery 373,787 6,148 379,935 356,556 23,379 6.15%Auxiliary & Associated Services 21,922 6,292 28,214 24,729 3,485 12.35%Special Functions - 127 127 127 - 0.00%

TOTAL 1,291,089 (236,951) 1,054,138 1,012,302 41,836 3.97%

Financial Results (DoL):2003/2004 (2)

Standard Item Original Adjustments Adjusted Actual Variance VarianceAppropriation Effected Appropriation Expenditure (over)/under as a %

2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004R'000 R'000 R'000 R'000 R'000

Personnel 371,928 (30,119) 341,809 337,965 3,844 1.12%Administrative 149,541 (17,704) 131,837 128,951 2,886 2.19%Inventories 27,714 (8,104) 19,610 19,566 44 0.22%Equipment 42,013 (29,252) 12,761 12,729 32 0.25%Land and Buildings 66,700 8,765 75,465 44,604 30,861 40.89%Professional & Special Services 99,795 74,660 174,455 174,359 96 0.06%Transfer Payments 519,932 (233,941) 285,991 285,938 53 0.02%Miscellaneous 13,466 (1,383) 12,083 8,063 4,020 33.27%Special Functions - 127 127 127 - 0.00%

TOTAL 1,291,089 (236,951) 1,054,138 1,012,302 41,836 3.97%

Financial Results (DoL):2003/2004 (3)

Desrcription ValueInvolved

R'000Roll-Over: 11,529 Repair and Maintenance Projects 10,360 Training and Development 1,169 E-Degree 984 PSLDP 185 Adjustments Estimate: (250,000) Deferal of UIF allocation (250,000) Improvement of Service Conditions 1,520 Higher than anticipated IOCS 1,520 TOTAL ADJUSTMENT (236,951)

3. Roll-Over to2004/2005

Roll-Over to:2004/2005

Description AmountR'000

Corporate imaging 18,900 Repair and maintenance projects 11,464 Ten Year Celebrations 6,600 TOTAL ROLL-OVER 36,964

4. Financial Results:Statutory Allocation –2003/2004

Financial Results (STAT):2003/2004 (1)

• The statutory allocation included in Vote 17: Labour emanates from the Skills Development Levies Act.

• The Skills Development Levy is collected by SARS and distributed by the DoL as a direct charge against the National Revenue Fund (NRF)

Financial Results (STAT):2003/2004 (2)

Description AmountR'000

Collected as per SARS reports: 3,777,008 Defrayed as follows: 80% SETAs 3,021,606 20% National Skills Fund 755,402

5. Auditor-General’s Report

Auditor-General’s Report:2003/2004 (1)

• The Auditor-General expressed an un-qualified opinion in respect of the Financial Statements of the Department of Labour for the 2003/2004 financial year.

• However, without qualifying the audit opinion, attention was drawn to the following matters:

Auditor-General’s Report:2003/2004 (2)

• Transport:

a) The utilisation of subsidised motor vehicle transport

b) Imperial Fleet Services versus the subsidised motor vehicle scheme

c) Imperial Fleet Services

Auditor-General’s Report:2003/2004 (3)

• Asset Management:

a) Information Technology (IT) equipment

i. Physical verification of assets

ii. Differentiation between DoL and UIF assets

Auditor-General’s Report:2003/2004 (4)

• Institute for the National Development of Learnerships, Employment skills and Labour Assessments (INDLELA):

a) Under utilisation of training centre

i. Adjustment of assessment fees

ii. Rental paid by tenants and candidates

6. Achievements per Programme

Programme 1: Administration

• Office of the Chief Financial Officer (CFO)

– All requirements indicated in NT guidelines achieved and due dates maintained

– No forced-closures effected – No more that one open month at any given time– Annual financial statement compiled and

submitted to AG on time

Programme 1: Administration

• Office of the CFO (cont.)

– Annual financial statements of Public Entities completed and submitted to AG

– A Public Entity survey undertaken and completed in conjunction with the DPSA

– Mini ENE inputs compiled for each Public Entity

– Specimen Annual Financial Statements for SETAs revised to ensure ease of consolidation

Programme 1: Administration

• Office of the CFO (cont.)

– A passive tracking system fitted to 80% of long term vehicles

– New air travel service provider appointed– Repair and maintenance programmes

established with DPW in respect of buildings– Corporate image implemented at 15 buildings

Programme 1: Administration

• Office of the Chief Communications Officer (CCO)

– 16 pamphlets, booklets or flyers, 6 posters and 9 banners produced aimed at ensuring that beneficiaries can access the benefits accruing from the Department’s policies

– 5 039 Website enquiries relating to the registration of domestic workers answered during the period March – May 2003

Programme 1: Administration

• Office of the CCO (cont.)

– 7 006 General enquiries received via the website and successfully answered

– 9 Videos produced for the NSDC as well as Ministerial Imbizos and other events

Programme 1: Administration

• Human Resource Management (HRM)

– Human resource Management policies aligned with relevant legislation

– Misconduct cases, appeals, grievances and conciliation and arbitration cases managed promptly

Programme 1: Administration

• HRM (cont.)

– New EE plan for the period June 2003 – May 2006 developed

– All buildings occupied by DoL assessed in respect of compliance with the Code of Good Practice on the employment of People with disabilities and the Occupational Health and Safety Act

Programme 1: Administration

• HRM (cont.)

– Workplace skills plan for 2003/04 developed and implemented

– The absorption of excess staff members in line with the Public Service Restructuring and Transformation initiative managed with only 5 of the initial 51 cases not yet resolved

Programme 1: Administration

• Office of the Chief Information Officer (CIO)

– Establishment of effective governance structures to manage and capitalise on the benefits of the IT PPP arrangement

– Implementation of Lesedi– Development of Siyaya– Development of the Children in the Performing

Arts (CIPA) system

Programme 1: Administration

• Office of the CIO (cont.)

– Establishment of an IT Call Centre– Development of an on-line registration

capability for the registration of domestic workers in terms of the Unemployment Insurance Act

Programme 1: Administration

• Internal Audit

– Co-sourcing agreements aimed at providing Internal Audit services to DoL, UIF, CC and the NSF finalised

– Audit software obtained by means of the co-sourcing agreement

– Amendment of the Department’s existing Good Governance Strategy in line with the King ll report

Programme 2: Occupational Health and Safety

• A draft programme/strategy for the elimination of silicosis developed

• 5 Meetings regarding silicosis held with stakeholders

• Silicosis workshops held in 3 provinces• Stakeholders in agriculture sector have

agreed to implement Health and Safety Committees as required by the Act

Programme 2: Occupational Health and Safety (cont.)

• Awareness campaigns on Construction Regulations conducted at all 10 Provincial offices

• Blitz inspections conducted by all 10 Provincial offices

• Training on Noise Induced Hearing Loss Regulations completed

Programme 3: Social Insurance

• The UIF and the CF publish their own Annual Reports in terms of the PFMA

Programme 4: Employment and Skills Development

Services (E&SDS)• 17 SETAs met or exceeded targets, 6 were

average performers and 2 were below average

• Transfer of funds and data to SETAs have improved

• The legal standard of 51 days has been exceeded and the current period of transfer is 30 days

Programme 4: E&SDS (cont.)

• 24 SETA annual reports containing audited financial statements tabled in August 2003

• 69 306 learners were in learnerships across 25 SETAs by end of March 2004

• 74,4% of NSF funds allocated to Provinces spent on 2003/04 contracts

• 4 NSDS synthesis reports produced• State of skills report produced and

published for NSDS conference

Programme 5: Labour Relations

• 369 Effectively and efficiently functioning collective bargaining councils registered as at March 2004

• 80% of all registered councils have SMME representation

• Sectoral determination in respect of the Security sector completed

Programme 5: Labour Relations (cont.)

• 107 Inspectors trained on HIV/AIDS and Employment of People with Disabilities Technical Assistance Guidelines

• EEA workshops conducted. This includes 70 employers in the private sector, the South African Vice Chancellor’s Association and the Department of Defence

Programme 6: Labour Policy

• 9 Research papers completed on Worker Co-operatives and employment creation

• A major research project undertaken on casualization and the changing nature of work

• Data on strikes, register of unemployment, work seekers, wage settlements and skills maintained and a report prepared

Programme 7: Service Delivery

• One (1) Information session held in each Provincial office to increase awareness in respect of the UIA, COIDA, claims procedures and fraud amongst stakeholders and beneficiaries

• A minimum of 3 information and briefing sessions at each Provincial office aimed at marketing the NSDS

Programme 7: Service Delivery (cont.)

• 161 Poverty alleviation projects specifically targeting the training of 5 870 rural communities identified and funded

• Placement verification study completed – 75% placement for 2002/03 and all equity targets met

Programme 7: Service Delivery (cont.)

• 187 187 inspections conducted representing an 113% increase on the previous year

• 75 773 or 74% of the 102 660 complaints lodged, settled within 60 days

• 6 920 Blitz inspections conducted in the following sectors:

Programme 7: Service Delivery (cont.)

– Agriculture: 360– Domestic: 1 073– Construction:

747– Wholesale and Retail: 2 712– Employment Equity: 2 028

Programme 8: Auxiliary and Associated Services

• Successfully coordinated President Mbeki’s visit and address to the ILC

• Attended and influenced policy positions of the AU Labour and Social Affairs Commission held in Mauritius during April 2003

• Successfully hosted the following delegations:

Programme 8: Auxiliary and Associated Services (cont.)

• Minister Tou – Minister of Employment and Youth: Burkina Faso

• Deputy Minister Wang – Vice Minister of Labour and Social Security: China

• Official delegations from:– Cuba– Lesotho– Malawi– Mozambique

THANK YOU