(ABRIDGED VERSION)
As we take up this very important task and the baton of the 07th Administration, it is my honor and pleasure to present to this House, Budget Vote 31 for the Department. Having just taken office, the Deputy Ministers and I, have hit the ground running to ensure continuity and service delivery, in partnership with our stakeholders we will ensure that the important work of the department is on a path to improvement, focus is given to strategic and operational deliverables. It is against the above background that we participate in this budget vote debate, to increase social ownership of the budget and enhance the effective allocation of funds.
We are still faced with the mammoth task of ensuring that we move in earnest, continuing to usher in not only hope to our citizens, but substantive positive change in their lives. We are still struggling with the triple challenges of poverty, high unemployment, and inequality.
Unemployment in the context of our country is structural, deep-seated, systemic and stubborn. That is why agencies such as Statistics SA continue to share disturbing data with us all. In its first quarter report of 2024, the working-age population expanded marginally, yet unemployment rose, pushing our national unemployment rate to 32.9%.
It is my considered view Honourable members, that sustainable solution for such a crisis, cannot come from one department, even from government alone, as it is a societal challenge that requires a collective approach. We plan to lead the department in upping the ante, pertaining to coordination work of all job creation initiatives, interventions and innovation, that are found in various departments, spheres of government and public agencies. It is also in our plans to raise the stakes when it comes to collaboration, partnerships, networks within the state, traditional leadership and the private sector.
As we embark on our term of office, the department strives to meet its mandate of improving economic efficiency, facilitating decent employment creation and providing adequate social security and safety for vulnerable workers in our country.
As South Africa celebrates 30 Years of Freedom and Democracy, it is important to note that the Department over this period, has made great strides and contributed significantly to the upliftment of workers in the country towards the achievement of decent work, including through formalising a living wage, enhancing social partnerships through defined structures, and promulgating legislation for the work environment to be a safer workspace. In commemorating this milestone, the department and its entities conducted numerous service delivery events and campaigns, high impact inspections, advocacy and awareness sessions, combined with jobs and careers fairs in all provinces.
The highlight of this commemoration was the inaugural Elijah Barayi Lecture held in May 2024, to celebrate the life and times of the iconic activist in the fight for justice, equality, and democracy, which was led by President Ramaphosa. Let me take this opportunity to salute my predecessor, former Minister TW Nxesi and previous Ministers in this department since 1994, as they laid a good foundation for our work.
On Social Justice
Through the unrelenting interventions by the department for workers, who were affected by mercury exposure in Cato Ridge dating back to the 80s, they finally got justice as the Thor Chemicals, officially committed to compensating the workers or their next of kin. I hail the work that was done by my department in partnership with all the stakeholders in this regard.
The Inspectorate recovered R254 million from non-compliant employers. Over R120 million thereof, was money that was recovered on behalf of vulnerable workers. The balance, R134 million was money recovered from companies, who failed to pay their dues to UIF and CF. Honourable members, non-compliant companies must watch out, our inspectors will be hard at work.
I have received a submission about the plight of ex-mine workers presenting a case for my consideration. As a matter of priority, I will engage all the stakeholders towards resolution of the matters raised.
On Employment
In our efforts of employment creation and supporting former contributors of the Unemployment Insurance Fund (UIF) to get back to the labour market, the budget which was set aside by UIF for the Labour Activation Programme (LAP) in the 2022-2023 financial year, was R3.1 billion and R3.2 billion in 2023-2024 respectively.
The 06th Administration announced and launched plans to further strengthen measures to mitigate unemployment in the country through our UIF - LAP - Training for Employment and Entrepreneurship programme. UIF allocated nationally an amount of R23.8 billion eventually, targeting over 2 million unemployed beneficiaries. Phase one targets 333 recommended projects provide training, small enterprise support and employment opportunities to 704,000 unemployed people. These multi-year opportunities will continue to run between 12 and 36 months.
In the 2024-2025 financial year, the UIF through the LAP intends to:
On the mandate of employment, the department will continue on the work done by the 06th Admin, focusing on the coordination, in line with the Intergovernmental Relations (IGR) Framework Act of 2005. We will build on interventions started by the strengthening efforts, through the work stream on employment in the Presidents engagements with business and the Inter-Ministerial Committees on Employment, Skills Massification and Job Creation. This will be carried out through the following programmes:
The 07th Administration will strengthen the coordination of the employment mandate, programmes and put together a strategic framework by establishing an IGR unit.
It must be noted that across the department, there is a limited capacity and capability, affecting the overall performance of the UIF and CF. Enhancing these areas department-wide is crucial for improving efficiency and service delivery. Following the architecture review and diagnostic report on the fit for purpose assessment of the CF and the UIF, re-imagining a citizen led service transformation of the funds, presented to the 06th Parliament, the department, in our effort of strengthening the UIF and CF, is implementing the diagnostic assessment report and its recommendations. This will be focusing on stabilising, modernising, and repurposing the UIF and CF. Key areas of intervention have largely been focusing on stabilising the funds on critical areas that are customer facing for immediate and impactful results.
Employment creation for persons with disabilities
We have conducted a successful scheme in the past three years, wherein, we funded 09 national organisations involved in the promotion of 1 041 employment of persons with disabilities. The Department has allocated R21 million to extend this scheme to all provinces and we will prefer new applicants in this regard.
The department has allocated an additional R184 million towards our 13 Supported Employment Enterprises (SEE). These enterprises currently employ 1 056 persons with disabilities. The SEE will also appoint an additional 150 people in the new financial year.
Improved ESSA system
The department has just completed the quality assurance environment for the system. The newly revamped Employment Services of South Africa system (ESSA) can be accessed by walk-ins at our 126 Labour Centres, 441 visiting points, 14 mobile units, and remotely.
Counselling Services to work seekers
On the 1st of August 2024, I will unveil a youth deployment project. This project will be employing 335 young people over an 8 months' period, to assist in the provision of career counselling services at our service points across the country.
REBRANDING AND REPOSITIONING OF INSPECTION AND ENFORCEMENT SERVICE (IES)
The rebranding and repositioning of the inspectorate remains a priority. As part of digitalisation and modernising the department, we have also seen global innovations, which we intend rolling out, through the use of drones, sensors, and wearable technology.
Recently, the department launched an Occupational Health and Hygiene laboratory. This is a game changer, to provide evidence based advice to employers, especially in the informal economy, where they do not afford to pay for Approved Inspection Authorities (AIAs).
International Labour Organisation (ILO) Recommendation 204 (R204)
The ILO Recommendation R204, focuses on the transition from the informal to the formal economy. To give effect to the Recommendation R204, the department has initiated research based inspections in informal sectors. These interventions are meant to educate the informal economy on employment law.
Building collapse investigation
34 lives were lost in the recent building collapse in George, Western Cape on the 6th May 2024. We are currently busy with Section 31 investigation, the outcome of which will inform the way forward. We intend to leave no stone unturned, in getting to the bottom of this matter and welcome involvement from all relevant stakeholders.
LABOUR POLICY AND INDUSTRIAL RELATIONS (LP & IR)
PROMOTING EQUITY IN THE LABOUR MARKET
Notable, is the release of the 24th Annual CEE Report and the Public Register. This Annual Report reminds us that as we celebrate 30 years into democracy and 26 years since the inception of the Employment Equity Act, 1998 (EEA), we should not forget that there are persisting remnants of discriminatory practices and inequalities that still need to be addressed. It is against these disturbing trends of the slow pace of transformation, that the EE Amendment Act of 2022 was assented into law in April 2023, as a critical urgent policy imperative and a game-changer in ensuring that the economic empowerment and the inclusion of the majority of our people in the labour market and the economy as a whole.
Employment Policy and National Labour Migration Policy
The Department has developed a National Labour Migration Policy, as per the resolutions of the Ministers of Employment and Labour in the SADC region. We will also approach Cabinet during September 2024, to consider and approve the National Labour Migration Policy and the Draft Employment Services Amendment Bill for Parliament consideration. The policy aims to regulate and set limits on the number of foreign nationals that can be employed in our country.
National Employment Policy
I intend to table the Draft National Employment Policy (NEP) to Cabinet to seek approval to commence with the public consultations process.
PROMOTING SOUND LABOUR RELATIONS
Collective bargaining remains a better way to regulate wages and conditions of service. As a result, through the extension to non-parties, lives of vulnerable workers previously excluded by collective agreements, improved. For 2023/24, the Department had extended 24 collective agreements to non-parties covering wages, conditions of services, and social security protection that benefited about 1.4 million workers.
Business and organised labour, together with government are finalising amendments to labour laws at NEDLAC, which will make our laws more fit for purpose and our dispute resolution and collective bargaining institutions more efficient.
PROTECTING VULNERABLE WORKERS IN THE LABOUR MARKET
The introduction of a national minimum wage is a significant labour market intervention that was introduced as a platform to reduce inequality and huge disparities in income in the national labour market. The National Minimum Wage Act has benefited almost 6 (six) million workers and continues to play a role in reducing poverty and inequality and spurring domestic demand and productivity increases in the economy.
STRENGTHENING MULTILATERAL AND BILATERAL RELATIONS
The geo-political environment is experiencing a quantum leap with the South African- Israel International Court of Justice case, introducing new postulations and dimensions to the country's existent multilateral and bilateral agreements. Despite these challenges, we continue to work with like-minded countries at the ILO, to pursue the democratization agenda as well as ensure clarity of mandates as we referred to the ICJ as a case of interpretation regarding the right to strike within Convention 87.
Noting the plight of Palestine workers, SA as signatories of ILO Conventions, we committed and intend to ensure we keep alive the Israeli-Palestinian matter within ILO, and are consulting on the possible lodging of a case regarding the violation of ILO conventions by Israel.
Within the BRICS Employment and Labour Sector, we continue to support Russia's Presidency and will pursue the implementation of the productivity ecosystem programme, a project adopted during our Presidency.
As SA, we have taken over our role as Troika Deputy Chair of the G20 Employment Working Group which is a precursor to our Presidency in 2025.
MONITORING THE IMPACT OF LEGISLATION
The department continues to focus on monitoring the impact of legislation through the production of statistical trend reports. The results provided in these reports are useful and relevant in the process of developing evidence-based policy decisions that are favorable to improving workers' living conditions.
ETHICS, ANTI-FRAUD AND CORRUPTION
The department subscribes to a culture of zero tolerance to fraud and corruption, and emphasizes a high level of awareness against any form of fraud, corruption, theft, or irregularities.
BUDGET VOTE 2024 – VOTE 31
I therefore, present the Budget Vote 31. The Department of Employment and Labour, has been allocated an amount of R3.854 842 billion (three point eight billion, eight hundred and fifty-four million, and eight hundred and forty-two thousand Rand) for the financial year 2024/2025.
I take this opportunity to thank Deputy Ministers Sibiya and Mgcina, the Acting Director-General, Ms Mjo, and the senior management and leadership of the Department of Employment and Labour and its entities, and look forward to a progressive, impactful and service delivery orientated 2024/25 financial year.
Ndiyabulela, Ngiyabonga, Thank you
© 2019 - The South African Department of Employment & Labour
