Hon Madam Speaker, the committee having assessed the report of this department, made the observations so as to make the department to turn things around. We have also noted the decline in industrial actions and an increase in noncompliance to legislative instruments by the employers.

An upsurge of health and safety breaches in the productive sectors that is agriculture, mining and manufacturing and also the lack of inspectors to enforce labour regulations.

The Employment Equity Commission Report delineates some of these challenges in great clarity. The committee also stressed the urgency of funding the Commission for Conciliation, Mediation and Conciliation, CCMA, for the purpose of discharging its duties properly.

With the minimum wage coming into effect, we are likely to see employers seeking exemptions from the department. This process may end up requiring the CCMA to intervene or mediate.

We have also noted some of the employers failing to comply with the compensation for Occupational Injuries and Diseases Act. This must be acted upon immediately by the inspectors.

The National Economic Development and Labour Council Nedlac, has to improve its capacity. It has failed to

protect massive job retrenchments that resulted in the economy contracting.

In addition Madam Speaker, Nedlac has not intervened with great efficiency to mobilise the social partners to retain jobs.

There is a great need of co-operation between the Ministries of Employment and Labour and Mineral Resources and Energy whereas on section 54, work stoppages are warranted because some of the mining companies do not enforce safety regulations. There are major implications for companies and the workers alike as work stoppages turn to affect their profit margins and jobs respectively. We support this report. Thank you.