Millineum Development Goals: Progress Report February 2012 1 Portfolio Committee on Labour 8 February 2012 Portfolio Committee on Labour 8 February 2012

Millineum Development Goals: Progress Report February 2012

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Portfolio Committee on Labour

8 February 2012

Portfolio Committee on Labour

8 February 2012

Millennium Development GoalsProgress Report February 2012 Millennium Development GoalsProgress Report February 2012

Overall Responsibility: Director General: NPT Nhleko Overall Responsibility: Director General: NPT Nhleko


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8 Millennium Development Goals (MDG)8 Millennium Development Goals (MDG)

MDG’s relevant to DOLs Programmes:

MDG 1: Eradicate extreme poverty and hunger

MDG 2: Achieve universal primary education

MDG 3: Promote gender and equality and empower women

MDG 4: Reduce child mortality

MDG 5: Improve maternal health

MDG 6: Combat HIV/AIDS, malaria, and other diseases

MDG 7: Ensure environmental sustainability

MDG 8: Develop global partnership for development


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DoL Key Result Areas (KRA)DoL Key Result Areas (KRA)

The Strategic Plan (2011–2016) Key Result Areas (KRA’s):

KRA 1: Contribution to Employment Creation

KRA 2: Promote Equity in the Labour Market

KRA 3: Protecting Vulnerable Workers

KRA 4: Strengthening Multilateral and Bilateral Relations

KRA 5: Strengthening Social Protection

KRA 6: Promoting Sound Labour Relations

KRA 7: Strengthening the Capacity of Labour Market Institutions

KRA 8: Monitoring the Impact of Legislation

KRA 9: Strengthening the Institutional Capacity of the Department


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Millennium Development Goals (MDG) and DoL Key Result Millennium Development Goals (MDG) and DoL Key Result AreasAreas


Target 1.1: Halve the proportion of people whose income is less than 1$ per day.

Target 1.2: Achieve full and productive employment and decent workfor all.

Contribution by DoL to the MDG Targets


KRA 3: Protecting Vulnerable Workers

KRA 5: Strengthening Social Protection

KRA 6: Promoting Sound Labour Relations


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Millennium Development Goals (MDG) and DoL Key Result Millennium Development Goals (MDG) and DoL Key Result AreasAreas



MDG 6: Combat HIV/AIDS, malaria, and other diseases

MDG 8: Develop global partnership for development

Target 13: Address the special needs of the least developed countries.

Target 16: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth.

Contribution by DoL to the MDG Targets

KRA 4: Strengthening multilateral and bilateral relations


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MDG Country report MDG Country report

South Africa is expected to report on the progress towards attaining the MDGs as agreed by heads of states and adopted in the Millennium Declaration during the United Nations General Assembly in Sep 2000.

Statistics SA is an organ of state for official statistics that has been tasked with the coordination for drafting the report for the country.

The Millennium Development Goals country report has been released and the Minister in the Presidency-National Planning Commission made presentation to the legislatures in March 2011.

DoL representative was assigned to the group which dealt with the Poverty and Hunger indicators – MDG 1: Eradicate extreme poverty and hunger.


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MDG Country reportMDG Country report

Apart from participating in the sectoral working groups, government departments are expected to provide statistics at their disposal relevant to the MDG indicators including a certification of its credibility.

MDG1 indicators were available from Statistics SA and the Social Services Department, e.g.

- Proportion of population below $1 per day, poverty gap ratio. - Share of poorest quintile in national consumption. - Growth rate of GDP per person employed. - Employment to population ratio. - Proportion of employed people living below $1 per day. - Proportion of own account and contributing family workers in total employment. - Prevalence of underweight children under five years of age. - Proportion of population below minimum level of dietary energy consumption.


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Facts and figuresFacts and figures

Goal 1 and indicators

1994 baseline (or

closest year)

Current status 2010 (or

nearest year

2015 target

Target achievability

Indicator type

Proportion of population below $1

(PPP) per day

11.3 (2000) 5 (2006) 5.7 Achieved MDG

Poverty gap ratio ($1 (PPP) per day)

3.2 (2000) 1.1 (2006) 1.6 Achieved MDG

Poverty gap ratio ($1.25 (PPP) per

day)

5.4 (2000) 2.3 (2006) 2.7 Achieved DOMESTIC


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MDG Country report 2011MDG Country report 2011

Programme 2: Inspection and Enforcement Services

(IES)


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KRA 3: Promoting equity in the labour market

The IES Branch has implemented Employment Equity Act since its promulgation

Labour Inspectors are inspecting workplaces for procedural compliance

Cases of alleged unfair discrimination have been referred to the CCMA

In the past few years designated employers have been subjected to a DG Review process for substantive compliance to Employment Equity legislation

The reports show very little progress made to achieve equity in the workplace


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KRA 3: Promoting equity in the labour market

Technical Assistance Guidelines have been developed to assist in the implementation of the Act.

Employment Equity Road Shows have been conducted to create awareness and assist employers in reporting.

An Employment Equity system has been developed and employers can also submit their reports online.


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MDG Country report MDG Country report


KRA 4: Protection of vulnerable workers

Workers in specific sectors (Agriculture and domestic )of the Labour Market have been identified as vulnerable workers to which we focus our interventions.

Sectoral Determinations, which set minimum employment conditions and wages in these sectors have been promulgated for implementation.

Labour Inspectors are responsible for inspections and enforcing compliance to these determinations

In the past three years the department identified high risk and problematic sectors for blitz inspections.

Specific programs are also piloted and implemented to increase awareness on health and safety in these sectors.


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MDG 7: Ensure environmental stability

KRA 5: Strengthen Social Protection

The occupational Health and Safety regulations are promulgated and implemented in line with the OHS Act.

The Department works jointly with other government departments, Environmental Affairs, Mineral Resources etc. to ensure protection of the environment and workers.

Participation in technical committees and committees of experts both regionally and internationally to ensure regulation and environmental sustainability.


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012

Programme 3: Public Employment Services

(PES)


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The purpose of PES is to be achieved by :

Promoting employment of citizens.

Improving access to the Labour market for work seekers.

Providing opportunities for new entrants to the labour market to gain work experience.

Improving employment prospects of persons with disabilities.

Improving employment prospects of work seekers & employees facing retrenchment.

Facilitating access by work seekers to training.

Providing a regulatory framework for the operation of PEAs, registration of vacancies, employment of qualifying foreign workers and other related matters.

Promoting employment growth & workplace productivity.



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MDG 1 : Eradicate extreme poverty and hunger


Target 1: Halve between 1090 and 2015 the proportion of people whose income isless than US$1 per day

Target 2: Halve between 1990 and 2015 the proportion of people who suffer from Hunger

MDG 3 : Promote gender equality and empower women


Employment Services Bill was developed and will soon be approved for public comments and is currently at NEDLAC



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MDG 1 : Eradicate extreme poverty and hunger

KRA 1: Contribution to Employment Creation Jobseekers registered and placed in opportunities:

2010/11 2011/12

Jobseekers reported

for registration in different categories

497 714

Jobseekers registered 324 720 440 849

Jobseekers referred/placed

415407 69 109

Jobseekers assessed

and placed

13 928 366 949



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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012MDG 1 : Eradicate extreme poverty and hunger


Employer Services provided

2010/11 2011/12

No of companies registering opportunities on ESSA

1205 1825

No of PEAs registered 950 1053

No of opportunities registered 725 449 15 158

No of opportunities filled 7 324 6 400

Application for Corporate and general work permits received

161 – approved 101

- refused 60

79 – approved 38

- refused 41

No of companies assisted through DoL/DHET training lay-off scheme

19 companies

6 351 workers

14 companies

1344 workers


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012MDG 1 : Eradicate extreme poverty and hungerKRA 1: Contribution to Employment Creation

Products and services of assisted companies world class and competitive and jobs saved in distressed companies

2010/11 2011/12

No of companies assisted through workplace challenge programme

230 129

No of companies assisted with turnaround

83 51

No of SMME managers trained

2 245 2074

No of jobs saved 8 226 8038


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012MDG 3 : Promote gender equality and empower women


33 companies were assisted through the DoL/DHET training lay-off scheme:


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Programme 4: Labour Policy and Industrial Relations

(LP & IR)


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012MDG 1: Eradicate extreme poverty and hunger

Target: To halve the portion of proportion of people whose income is less than 1 USDollar per day:


South Africa increased the real wages of workers covered by sectoral determinations during the 2001 to 2011 period, particularly the wages of Domestic and Farm workers. Employment in sectors covered by minimum wage legislation also grew significantly over this period, at around 2.9 percent per annum, whilst output grew by 4.6 percent.

Overall, employment in South Africa of workers covered by minimum wage legislation grew at a rate of 2.9 percent per annum from nearly 3.5 million in 2001 to just over 4 million in 2007.


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012Proportion of households by poverty status and sectoral determination

of household

Sectors 2001 2007

Ultra poor Poor Non poor Ultrapoor

Poor Nonpoor

Total

Retail 12.6% 24.8% 66.1% 11.2% 24.8% 63.9% 100%

Domestic 45.3% 28.9% 22.5% 36.6% 28.9% 34.6% 100%

Farm 45.0% 44.1% 14.8% 34.8% 44.1% 21.0% 100%

Forestry 36.7% 41.6% 29.5% 32.5% 41.6% 25.9% 100%

Taxi 12.1% 28.0% 49.7% 26.7% 28.0% 45.3% 100%

Security 11.6% 33.0% 64.5% 14.7% 33.0% 52.3% 100%

Hospitality 19.0% 28.8% 57.9% 18.2% 28.8% 53.0% 100%

Contract cleaning 15.4% 28.7% 55.6% 24.3% 28.7% 47.0% 100%

Civil engineering 1.5% 0.0% 94.7% 3.1% 0.0% 96.9% 100%

Total (all workers covered) 33.3% 32.3% 34.4% 30.2% 33.0% 36.8% 100%


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012MDG 1: Eradicate extreme poverty and hunger (cont…)


The Labour Relations Act allows the Minister of Labour to extend collective agreements concluded by bargaining councils to non-parties.

By extending collective agreements to non-parties, it covers vulnerable workers who normally would have been excluded by these wage increases and social security benefits like pension funds and medical aid schemes.

Over a period of approximately 10 years average wage settlement rate in South Africa was around 8%.

The wage settlement rate was more than the average inflation rate of 6%.


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012MDG 3 : Promote gender equality and empower women


To create a conducive working environment for women participation and empowerment, the following legislation has been implemented:

Employment Equity Act, 1998, Regulations, Codes of Good Practice and Technical Assistance Guidelines that promotes equity in workplaces by:-

- promoting equal opportunities and fair treatment in employment through elimination of unfair discrimination; and

- implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups (i.e. black people, women and people with disabilities) tonsure their equitable representation in workplaces.


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MDG - DoL report - Feb 2012MDG - DoL report - Feb 2012MDG 3 : Promote gender equality and empower women (Cont…)


There has been progress in terms of representation of women in positions with decision making powers as follows:

Top management level- women constituted 18.2% in 2008 and 19.0% in 2011 of all positions at this level.

Senior Management level – women constituted 28.3% in 2008 and 29.3% in 2011 of all positions at this level.

Professionally qualified level – women constituted approximately 40% of all incumbents at the professionally qualified level in 2011 which serves as a feeder to senior and top management levels.


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Millineum Development Goals: Progress Report February

2012 28

Progress on the PCL RecommendationsProgress on the PCL Recommendations

Concerns Raised by the Committee:

Regarding South African companies preferring foreign workers over nationals:• The department has conducted an investigation into the driving force and extent of migrants in towns closer to the borders. •Currently the investigation was done in Musina and this will be followed by extensive research in order to get a better understanding of the rational behind the choice of the companies.

Regarding wage gaps:

• Minimum wage policy was developed and implemented, however research (Bhorat 2000) research reveal that this cannot be a panacea to poverty alleviation.


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Progress on the PCL Recommendations Progress on the PCL Recommendations (cont.)(cont.)

Responses to recommendationsResponses to recommendations

MDG 1: Eradicating extreme poverty

• DoL is currently looking at the possibility of extending social protection to categories of workers who are currently not covered by Unemployment Insurance. e.g Public Servants, Youth registered for leanerships, etc

• DoL is considering measures to ensure that vulnerable workers are covered as beneficiaries of the Compensation Fund

MDG 3: Promote gender equality and empower women:

• It was found that the enforcement and compliance mechanism in EEA made it easy for employers to circumvent certain provision of the legislation during implementation.

• As a result the act is now currently in the process of being amended in order to strengthen the enforcement and compliance provisions.

• This will assist in developing regulations that will advance the course of women. In addition, the entrenchment of equal pay of equal value “is now being entrenched in the EE Act through the amendment process in order to counter any disparities in remuneration based on gender or race.


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Progress on the PCL Recommendations Progress on the PCL Recommendations (ends.)(ends.)

Responses to recommendationsResponses to recommendations

MDG 6: Combat HIV/AIDS• The ILO adopted the Recommendation on HIV/AIDS in June 2010. DoL acted

immediately to bring its code of good practice on key aspects of HIV/AIDS in the workplace into line with each provision of the recommendations. The process is due to be completed at the end of March 2012 and will be supplemented by reviewing the Technical Assistance Guide line which is currently in operation.

MDG 7: Develop global partnership for development• South Africa strengthens partnership with SADC through various ways which

include being a members of the SADC ELS committee that deals with regional employment and labour issues.

• Several memorandum had been entered into with countries within the SADC region to ensure advanced socio-economic relations.


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Thank youThank you

Documents

Millineum Development Goals: Progress Report February 2012 1 Portfolio Committee on Labour 8 February 2012 Portfolio Committee on Labour 8 February 2012