Hon Chairperson, members of the Portfolio, Committee on Employment and Labour, Deputy Minister, leadership of organised labour, organised business and community organisations, the Director General and Senior Management of the Department, members of the media, hon guests and member of the public.
Let me start with a question; what are the implications of the reconfiguration and renaming of the Department? Clearly, this reflects that the priority for this 6th Administration is jobs.
The renaming and reconfiguration of the Department reflects the refocusing from purely labour regulation and labour relations to the transformation of the labour market, employment and conditions of employment. We cannot achieve this alone, we continue to depend on the private sector to propel employment. This is why the President's investment drive is so important.
So let me share with you our thinking on the role of the reconfigured Department. Firstly, where we can, we will leverage the resources of the department - and of our entities - which are our labour market instruments - the UIF, Unemployment Insurance Fund and the Compensation Fund, CF, to preserve jobs and to invest in job creating initiatives. Secondly, as the department, we provide coordination and seek to collaborate and align our efforts with other departments and agencies both to create jobs and to ensure that our people get the skills required in the market place. Thirdly, we intensify efforts to strengthen the labour market through the variety of tools at our disposal and in line with the vision of the department to quote "strive for a labour market
conducive for investment, economic growth, employment and decent work". This must include doing away with red tape; however, it does not mean reducing workers' rights as proposed by the opposition, which constantly exaggerates a perception of the supposed rigidity of the labour market. Indeed, research indicates that there is a relatively high level of re- allocation and easy movement of labour between firms. In the current situation of deep systemic unemployment and slow growth, government has to use its active labour market policies to improve access to jobs and skills. Let's go to specifics.
Our Public Employment Services Branch has been allocated
R611 million rand to drive the implementation of these active labour market policies - including providing free career counselling, retraining and upskilling, job placing, and providing subsidies to support workers with disabilities in employment. This includes 13 factories, under the Supported Employment Enterprises programme producing high quality furniture and linen. They need to be supported by all government structures, as well as the private sector. So, I'm lobbying now, hon members, no more going to the malls in town. Let's go to the factories we've built and then buy furnisher from there. And I will also be lobbying, minister.
In addition, we will establish ten specialised Youth Centres over the coming two years - in addition to our existing 126 Labour Centres. In fact, we are officially launching the first of the Youth Centres at 13hOO today, just nearby, at 22 Parade Street. The portfolio committee members, you are welcome to join us so that you can see what we are talking about.
In this financial year, we will also ensure that our passive labour market tools - mainly the Unemployment Insurance Fund, UIF, strengthen our Labour Activation Programme, LAP, to focus on the following vocational and remedial training for the unemployed; programmes for youth in transition from school to work, including apprenticeships and some 130 learnerships over three years; but these must be quality not fly by night, who just grab the money and go. Also, subsidized, targeted measures to provide employment including, hiring subsidies - paid to private-sector employers; and assistance to unemployed persons who wish to start their own businesses. As part of transformation, funds have been allocated to three new black Asset Management Companies. We are not just going to give people in the market, we must give it and say our people must also have something share. To achieve this, the UIF has budgeted R 7.9 billion rand over the next three years. The focus is to fund jobs, not just training.
The Department will form partnerships with employers and training institutions - particularly in collaboration with the Department of Higher Education and Training to address the future skills needs of the labour market. The President has said that we must train the youth for the digital jobs which are expected to be created in the wake of the Fourth Industrial Revolution. We must not just reduce this term FIR into just a technical term; it must have a human face.
The President has flagged the need for Social Dialogue and a Social Compact and National Economic Development and Labour Council, NEDLAC, is critical to this. The Department will consult with all social partners to review the constitution of the council to promote greater inclusivity; governance challenges at NEDLAC which resulted in disciplinary processes against senior officials are being firmly addressed.
Hon Chairperson, in October 2018, the Presidential Jobs Summit was convened by NEDLAC. Of the 77 commitments made, 70% are on track for implementation. I should mention that in contrast to previous summits, a monitoring and evaluation tool was put in place to track the outcomes.
Already these interventions have resulted in saving jobs,
through the Training Layoff Scheme, TLS, and via a sizeable investment from the UIF's High Social Impact Fund. R1.2 billion rand was invested in Edcon preventing the loss of 140,000 direct and upstream jobs. I should mention that the investment comes with strict conditions to guarantee the investment capital and a sustainable turnaround in the business.
Hon Chairperson, mamela man [listen] it is worth noting that the Ministers of Employment and Labour in Southern African Development Community, SADC have agreed to develop a Regional Labour Migration Policy, RLMP, by the end of 2019. In turn, the department will finalise a new national migration and employment policy in consultation with all social partners.
Hon Chairperson, we preserve jobs by improving the productivity and competitiveness of our businesses. Productivity South Africa, an entity of the department, has done sterling work in assisting Small, Medium and Micro Enterprise Business through its Turn Around Solution Programme. The Department is currently reviewing the funding model, so that Productivity South Africa can expand its work.
Hon Chairperson, a stable labour market is necessary for creating a conducive environment for investment. Recent amendments to the Labour Relations Act address strikes or Lock-outs those are intractable and violent. These provided for the establishment of an advisory arbitration panel. The Commission for Conciliation Mediation and Arbitration, CCMA, is responsible for implementing these measures.
This year marks 22 years of the existence of the CCMA, and saw the enactment of the long-awaited National Minimum Wage Act and Employment Law Amendments, expanding the jurisdiction of the CCMA to provide protection to the most vulnerable workers.
Hon Chairperson, some 194,000 cases were referred to the CCMA during 2018/19, compared to 187,000 referrals in 2017/18. This large caseload is indicative of the failure by both business and labour to moderate workplace conflict. Nevertheless, this institution continues to serve a critical role in stabilizing labour relations.
Hon Chairperson in pursuit of social justice and a transformed labour market, the department published the Employment Equity Amendment Bill 2018 for public comment. The 2018 Employment Equity report reflects that at top and senior management levels, women only
account for 23.5% and 34.5% respectively, whereas persons with disabilities remained at 1% across all sectors of the economy. The National Minimum Wage was initially set at R20 per hour.
This is not enough to lift people out of poverty, but it is an important start, and indications are that some 6 million workers will benefit. Inspections, to date, indicate a high compliance rate with only 7% of employers failing to pay the prescribed rate. Prophesies that wholesale retrenchments would follow the introduction of a National Minimum Wage were not borne out. An expected massive spike in CCMA cases has not occurred. By the end of September, the National Minimum Wage Commission will publish research into the impact of the changes on employment, poverty levels and wage differentials.
The Employment Equity Amendment Bill will be prioritised for tabling in Parliament - to regulate the setting of sector specific employment targets to address the gross under- representation of blacks, women and persons with disabilities. In addition, it will also ensure that an Employment Equity Certificate of Compliance becomes a precondition for access to state contracts. R1,2 billion rand has been budgeted for this programme.
IsiXhosa:
Asisayi kunika nje abantu imisebenzi singakhange sakuphonononga ukuba unalo utshintsho.
English:
Despite carrying out 167,000 inspections during the current year, we don't have adequate numbers of inspectors to reach every workplace. We rely on the activism of shop stewards and the public to be our eyes and ears, as well as the good will of responsible corporate citizens.
During the course of this financial year, we will be adding 200 inspectors to the current team that is working to ensure implementation of the national minimum wage. With the Deputy Minister and the Director General, we will be launching a blitz of inspections in the near future. Hon members of the portfolio committee are welcome to join us.