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Honourable Chairperson ,

Honourable Members of Parliament

Ministers and Deputy Ministers present

Honourable Members of the Portfolio Committee on Employment and Labour

Departmental Officials and those of our entities, present

Guests

Ladies and Gentlemen

Fellow South Africans ,

This year, we commemorate Nelson Mandela International Day on the 18th of July under the poignant theme: “It's still in our hands to combat poverty and inequity."

 These words are more than a call to action. They are a reminder of our collective responsibility.

The late President Nelson Mandela, revered globally and beloved as the father of our nation, once said: “It is in your hands to make our world a better one for all, especially the poor, vulnerable and marginalised." These words lie at the very core of our government's mandate and inform our approach to governance, service delivery, and fiscal responsibility.

As we gather here today to deliberate on this budget, we do so with a deep understanding that every rand we allocate, every programme we implement, must serve to uplift those most in need. 

In the spirit of Mandela Month, we are reminded that lasting change begins with individual action. Every effort, no matter how small, contributes to a ripple effect that can transform lives and strengthen the fabric of our society.

This is a moment to reaffirm our commitment, to fighting poverty, reducing inequality, and building inclusive communities rooted in justice and reconciliation. It is in our united pursuit of sustainable development and in our unwavering support for one another that we rebuild, restore, and reimagine our nation.

Let us therefore be intentional. Let us be bold. And above all, let us be guided by the values that Madiba championed, of dignity, compassion, and justice.

Chairperson, I would like to pick up this Debate on the issue of Inspection and Enforcement. It would be a cardinal error to underplay the role that is played by the inspectorate in the context of employment creation and job preservation. It is common knowledge that the unemployment rate has creeped to unacceptable levels. The Decent work agenda, which is at the centre of the work done by the inspectorate plays a significant role in preventing the haemorrhaging of jobs. The MTDP, which is a blueprint of the GNU, has singled out, amongst others, the matter of tackling poverty and reducing the cost of living. At the nucleus of Employment Laws, is the matter of ensuring that the sheer numbers of the vulnerable workforce do not toil in vain. The Basic Conditions of Employment Act and the National minimum Wage Act are pivotal instruments in fortifying the right of workers to fair renumeration and standards of employment that bode well with worker rights.

In the financial year 2024-2025, three hundred and ten thousand , seven hundred and ninety-eight (310 798) inspections were carried out. Of these, one hundred and sixty-eight thousand , eight hundred and eighty-four (168 884) were BCEA & NMWA whilst one hundred and seven thousand  , eight hundred and eight (107 808) were OHSA inspections. Whilst these numbers are not small, it is our desire to cast our net as wide as possible.

To ensure adequate social security to the workforce, our Employer Audit Services inspectors conducted thirty thousand and fifty-three (30 053) inspections to test compliance with the Compensation of Injuries and Diseases Act and the Unemployment Insurance Act. During all those inspections, one hundred and one million, three hundred and eighty-six thousand and five hundred and forty-one rand (R101 386 541) was enforced for various legislations. Seventy-eight million, six hundred and sixty-nine thousand, and eight hundred and forty nine rands  (R78 669 849), was recovered on behalf of vulnerable workers in the form of underpayment of wages and salaries. Effectively, that was money that went to the pockets of the employees. A demonstrating that we are obsessed with making a real difference in the lives of the workers of our country.

The compliance levels of employers/workplaces inspected during 2024/25 financial year were as follows per legislation:

• BCEA and NMWA on 89%
• OHSA on 65%
• Employer Audits on UIA and UICA on 40%
• Employment Equity Act on 38%
• COIDA on 31%
• Nationally for all labour legislation, compliance was at an average of 53%.
  
   
  
  To keep up with the ever-evolving labour market, we have fine-tuned our service delivery machinery and strategies. We have collaborated with sister departments and institutions such as the Department of Home Affairs, The South African Police Services, the South African Reserve Services, Bargaining Councils and municipal law enforcers to conduct national High Impact Blitz inspections. To date, we have expanded these inspections to the following sectors:
  
  Hospitality
  
  Construction
  
  Agriculture
  
  Textile and clothing
  
  Chemical and
  
  Wholesale and Retail.
  
   
  
  This approach has not only assisted us to make an impact, but to also complement each other at a policy implementation level. It has also aided us to amplify our visibility as a joint force of government.
  
   
  
  Through the IES, the Department has also signed a number of Memorandums of Understanding with various partners to address matters of compliance. Some Accords have been endorsed as an undertaking to deal with unsatisfactory levels of compliance with the Occupational Health and Safety Act. We are on course to harvest benefits of these partnerships.
  
   
  
  It will be remiss of us not to offer an olive branch where there is a genuine desire to comply. Hence the number of advocacy sessions that were held in the form of seminars and conferences. During the past financial year, we conducted 16 large scale advocacy initiatives nationally. A demonstration that a stick alone will not build the economy, we need to offer a carrot as well. We intend to continue with this approach as we believe that it will bear much needed fruit. Advocacy is one of the areas that the Department is paying attention to, in fact, it is one of the strategic pillars, in as far as the whole function of ensuring that labour laws are adhered to. It is firmly believed that increasing the knowledge base of employers and employees contributes towards self-regulation. Educating the public at a larger scale is essential in raising awareness of the Employment Laws and the potential value add thereof.
  
  We are living in rapidly changing times. That is why we should be continuously innovative. Inspectors should keep abreast of developments in the labour market and be adaptable and agile.
  
  From keeping abreast with employment law reforms to being nimble regarding approaches to rendering their services. In this respect, among others, the Department does attend to the whole issue of the continuous development of intellectual capacity of the inspectors. We also see mentoring and coaching of Departmental inspectors as something that should be a norm. Among others, participation and exposure to national and provincial roving teams provide that empowerment opportunity to the Departmental inspectors.
  
  Capacity in terms of numbers is desirable  but ,  its something that often eludes us due to fiscal constraints. Employers should continuously be lobbied towards voluntary compliance. Again, in keeping with strategic compliance, the need to intensify the incentivising of compliance should feature quite high on our list.
  
  Having said that, I must also hasten to state that, we are envisaging that the onboarding of 20 000 intern inspectors (over the next 5-years) will magnify the visibility of inspectors.
  
  We intend to continue to properly manage our information and data as these are key ingredients in the implementation of risk-based inspections. Inherently, these types of inspections targets areas of grave non-compliance characterised by a deficit in Decent Work. Typically, non-compliant workplaces are exploitative of their vulnerable workforce. Data driven enforcement strategies are intentionally adaptable and thrive on evolving service delivery mechanism.  Data is a rich source of implementation intelligence.
  
  Chairperson and Honourable Members, pursuit of an inclusive economic growth, involves the efforts that ensure economic transformation. Our collective mission should be the one that see to it that we leave no one behind. No one must be marginalised. No one must be discriminated against.
  
  Our interventions to the plight of people with disabilities ought to be intentional, purposeful and more importantly produce the desired outcomes. As a government, we must take decisive steps to place people with disabilities at the heart of inclusive economic growth. As such I urge all spheres of government, public agencies and the society at large to throw their weight in support of our Supported Employment Enterprises (SEE).
  
   
  
  Honourable Members, you are being lobbied for a very noble cause, we kindly request your support to the SEE, a brilliant government initiative of employing people with disabilities. SEE currently employs over 1 000 people with disabilities and has a potential to grow this to over 3 000 disabled persons , the most vulnerable in our society and nation.
  
  I challenge each organ of state, to commit on spending (at the very least) 5% of its office furniture, school furniture, textiles and hospital linen etc budget on the SEEs. If public procurement is meant to address inequality and empower vulnerable groups of our society, then it must boldly include disability empowerment in its design and execution. SEEs provides such an opportunity!! 
  
  So, start by supporting this budget.
  
   
  
  COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION (CCMA)
  
  The CCMA (our pride as a country) is entrusted with the important responsibility of creating an enabling labour dispute resolution environment to advance economic development, social justice, labour peace, and the democratisation of the workplace. Its legislative mandate gives effect to and regulates the fundamental rights conferred by Section 23 of the Constitution.
  
  The 2025–2030 Strategic Plan that is titled “The Momentum Empowering Progress, Embracing Change", is designed to meet evolving labour market demands and, is built on three strategic thrusts:

• Resource Optimisation
• Adaptation and Resilience
• User Experience
  
   
  
  Key Strategic Focus for 2025/26
  
  In the 2025/26 financial year, the CCMA will:
• Facilitate dispute resolution processes for referrals received under the Labour Relations Act and its related laws.
• Implement Dispute Management and Prevention strategies, including Section 150 interventions and pre-bargaining processes, to prevent industrial action and foster proactive resolution.
• Enhance outreach to vulnerable groups with targeted support for women, youth, persons with disabilities, and rural workers in line with equity and inclusion goals.
• Support economic resilience through collaborative interventions like the Temporary Employer/Employee Relief Scheme (TERS) and assistance to companies undergoing restructuring (Section 189A).
• Advance in digital transformation to improve service efficiency and accessibility. This includes expanding the online dispute resolution platform, enhancing the Case Management System (CMS), and broadening the reach of digital platforms to reduce turnaround times and enable wider access to services
• Maintain high governance standards, having achieved three consecutive clean audits (2021/22–2023/24), reflecting accountability and efficiency despite fiscal constraints.
  
  Impact on the Labour Market
  
  While the CCMA continues to fulfil its legislative mandate, the reduced grant has resulted in longer turnaround times for dispute resolution processes such as arbitrations (85 days for 2023/24 and 109 days for 2024/25). This is a challenge that we need to be frank about and tackle head-on!
  
  Honorable Chairperson and members,
  
  Despite the reality of poor economic outlook ; the labour market  that continues to grapple with rail, infrastructural challenges and tariffs that put pressures on businesses to reevaluate input costs and consider restructuring operations, the commitment and dedication of all role players in mitigating against job losses, saw  the CCMA facilitated processes resulting in 30 581 jobs being saved of those employees who were facing retrenchment (64 919).
  
   Honorable Chairperson and members,
  
  I have mentioned (with pride) that the CCMA is our Jewel and a centre of excellence!.  Its impact is felt domestically, in Africa and abroad!  Allow me now, Honourable Chairpeson and members to quickly reflect on the performance against the commitments made in the 2024/25 financial year.
  
  The CCMA delivered a strong overall performance (90% performance against set targets 28/31, awaiting audit outcome) despite operating in a constrained economic environment.

• The organisation surpassed its service delivery targets, reaching over 208,000 users in vulnerable sectors and saving 47% (30581 out of 64919) of jobs under threat through retrenchment processes.
• Labour market interventions were highly successful, with 185 targeted initiatives implemented and a 100% satisfaction rating from nearly 4,800 participants.
• The CCMA's Labour Advice Web Tool saw over 118,000 new users in its efforts to support small businesses and compliance.
•  At the same time, TERS preserved more than 13,000 jobs at a cost exceeding R1.4 billion, the highest recorded in five years.
  
  In the 2024/2025 financial year, the CCMA recorded a total of 193 069 case referrals, compared to the 2023/2024 financial year's total of 188 619. This represents a year-on-year increase of 2%.
  
  The total number of National Minimum Wage Act (NMWA) and Basic Conditions of Employment Act (BCEA) referrals (excluding severance pay) was recorded at 57 437.  A total of 54 809 were BCEA referrals, and 1 628 were NMWA referral. In comparison, the combined total number of BCEA and NMWA referrals received in the 2023/2024 year was 53 609. The increase in these referrals significantly contributed to the CCMA case load and negatively impacted the case disbursement budget.
  
  Financially, the CCMA managed a 6.3% reduction in its baseline budget by enhancing operational efficiencies and reprioritising resources. Expenditure was reduced by 5%, and a R28.4 million surplus rollover was secured to meet increased caseloads and contractual obligations.
  
  Through strong governance, proactive stakeholder engagement, and regional and international collaboration, the CCMA maintained its role as a high-performing institution committed to promoting labour stability and effective dispute resolution in South Africa.
  
  Honourable chairperson and members, public sector funding is faced with various challenges due to weak economic conditions.  The CCMA is reliant on government funding to execute its mandate and sits with the reality of reduced funding over the years. 
  
  Against the above cited realities, effective own revenue generation is crucial for ensuring the sustainability of public entities and government departments whose mandate permits. Recognising this imperative, the CCMA has started reviewed areas wherein its own revenue can be generated as enabled by the discretionary mandate bestowed upon the organisation by the Labour Relations Act No. 66 of 1995 and support the long-term financial health of our organisation.
  
  The alternative revenue generation streams identified , are based on three funding pillars:

• Ability to retain surplus funds generated.
• Increase revenue from investments.
• Increase revenue from services rendered.
• Reduce cost of operations.
  
   
  
  The market for CCMA services is large and the potential for CCMA to capture a part of that market is there; however, a fundamental shift in philosophy needs to take place if CCMA is to be truly successful in capitalising on its reputation, intellectual property and key skills to generate revenue.
  
  Guided by various laws and working with other partner departments and authorities, the CCMA will pursue further discussion on possible alternative revenue generation streams , within the confines of the set laws.   This, honourable  Chairperson and members  , will enable the CCMA to further enhance the effectiveness of  Labour Policies  by strengthen collective bargaining structures to promote fair employment practices and enhance labour market stability, especially in emerging and vulnerable sectors.
  
  I thank you!!
  
   
  
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