Minister Meth commits to strengthen the coordination of the employment mandate as she tables Budget Vote

 

The Department of Employment and Labour through the Unemployment Insurance Fund (UIF) plans to recruit a further 360 000 unemployed people into skills development and employability enhancement programmes that will guarantee their employment at the end of their training period, said Minister Nomakhosazana Meth.

She said this total, when achieved, will bring the overall number of people recruited and trained to 1 640 000 in the Medium Term Expenditure Framework (MTEF) period.

During the 06th Administration the Department announced and launched plans to further strengthen measures to mitigate unemployment in the country through our UIF – Labour Activation Programme (LAP) – Training for Employment and Entrepreneurship programme, Meth said.

The Minister was speaking during the tabling of Department of Employment and Labour Budget Vote for 2024/25. The Department was allocated an amount of R3.854 842 billion for the current financial year.

She reminded the members of the committee that the UIF had allocated nationally an amount of R23.8 billion through LAP, targeting over 2 million unemployed beneficiaries. She said 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.

“Unemployment in the context of our country is structural, deep-seated systemic and stubborn. That is why agencies such as Statistics South Africa continue to share disturbing stats 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 that sustainable solution for such a crisis, cannot come from one department. In actual fact, it cannot even come from government alone, 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, creativity and innovation, that are found in various government departments, spheres of government as well as public agencies,” Meth said.

She commended the Inspection and Enforcement Services (IES) branch for recovering R254 million from non-compliant employers. Meth said over R120 million money that was recovered on behalf of vulnerable workers and the balance, R134 million was made up of money recovered from companies who failed to pay their dues to Unemployment and Insurance Fund and Compensation Fund (CF). He cautioned companies that were not compliant.

Although the Department’s current 2 200 inspectors are not adequate, she said: “we will make serious strides in ensuring that all funded vacancies of the inspectors are filled expeditiously. Furthermore, the inspectorate will continue to conduct national high impact inspections that target both problematic and high risk area”.

The Minister said the rebranding and repositioning of the inspectorate remains a priority, “requisite tools of trade will be procured for the inspectors. 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, to improve occupational health and safety, as well as the use of virtual reality and simulation training to enhance the skills of Health and Safety representatives in workplaces, so that they assist in preventing workplace injuries and diseases”.

Meth said the Department, in its effort of strengthening the UIF and CF, was implementing the recommendations of an unbundling process. She said this will be focusing on stabilising, modernising, and repurposing the UIF and CF.

Commenting on policy – She was disturbed by the slow pace of transformation of the labour market. The implementation and enforcement of the proposed Employment Equity Amendments becomes a critical policy tool and a game-changer, Meth said.

She said the Department will during September 2024, consider and approve the National Labour Migration Policy and the Draft Employment Services Amendment Bill for Parliament consideration. Furthermore, she said she intend to table the Draft National Employment Policy (NEP) to Cabinet to seek approval to commence with the public consultations process.

Employment and Labour Deputy Minister, Ntuthuko Mbongiseni Sibiya reflecting on the work of entities he said the Commission for Conciliation, Mediation and Arbitration (CCMA), since its establishment in 1996 has dealt with (4,039,265) cases, and its settlement rate has consistently hovered around 70%.

Sibiya said the majority of cases concern unfair dismissal, followed by unfair labour practices, collective bargaining, and severance pay.

The average turnaround time for conciliation is 26 days, instead of the 30 days as stipulated in the Labour Relations Act and average turnaround time for arbitration is 31 days, compared to 90 days, he said.

According to Sibiya as part of strengthening CCMA’s capacity, the Department has tabled a number of labour law proposals to ensure that CCMA’s efficiencies are strengthened, such as empowering CCMA to establish rules to expedite certain processes.

Sibiya said the National Economic Development and Labour Council (NEDLAC) had over the past three decades of democracy, consistently held a central position in fostering social dialogue between social partners – the Government, Organised Labour, Organised Business, and Community constituencies – in problem-solving and negotiation to tackle a spectrum of economic, labour, and developmental challenges confronting the nation.

“To ensure NEDLAC’s work strengthens, the organization has amended its funding protocols to remain fit for purpose,” Sibiya said.

Reflecting on Productivity SA, Sibiya said the organisation established in terms of the Employment Services Act, No. 4 of 2014 has as at December 2023, through its Business Turnaround and Recovery Programme (BT&R) programme enrolled 250 companies for assistance in enabling the turnaround and sustainability of the companies.

“The programme effectively saved 20 723 jobs. The 250 companies that were enrolled in the BT&R programme were spread across the width and breadth of South Africa. 1 524 jobs were created resulting in 22 247 jobs being saved overall,” he emphasised.

“The achievements of CCMA, NEDLAC, and Productivity SA exemplify the dedication to fostering inclusive growth, equitable opportunities, and effective governance. The Department of Employment and Labour looks forward to continue to support these institutions in their mission to build a prosperous South Africa for all.

Employment and Labour Deputy Minister, Phumzile Mgcina reiterated the need to establish partnerships in the quest to reducing high unemployment levels.

She said in contributing to employment, especially that of people with disability: “We are currently exploring the establishment of one more factory in Mpumalanga. These Supported Employment Enterprises (SEEs) employ youth, men and women of different races with various disabilities and produce very good quality furniture, linen and steel products”.

Mgcina said the Department would work closely with the Presidency in the Presidential Youth Employment Initiative, to coordinate public employment programs and to search for innovative solutions that can bring about tangible changes in this area.