MINISTER’S PROGRAMME OF ACTION AND STRATEGIC PLAN 2004-2009

Speech given by Minister MMS Mdladlana at Cape Town on 23 August 2004

 

Strategic Objective 1: Contribution to employment creation

It is generally understood that while labour market policies do contribute to the promotion of decent work, they cannot of themselves create jobs. A combination of properly harmonised macro-economic, industrial as well as labour market policies is necessary for ensuring that the economy generates enough employment opportunities in order to reduce the rate of unemployment.

Strategic Objective 2: Enhancing skills development

Based on the lessons learnt in implementing the first national skills development strategy and taking into account new challenges that have emerged, the Department will launch the second national skills development strategy. The new strategy, which takes into account feedback from interested parties, would build on the foundation laid by the first skills development strategy. The new strategy, that is to be implemented from 2005 to 2009, will seek to address existing weaknesses and bottlenecks.

Strategic Objective 3: Promote equity in the labour market

Since gender, race and discrimination based on disabilities and other irrational grounds continue to pervade the labour market in the third cycle of democracy, the Department of Labour will seek to eradicate such discrimination by vigorously implementing the employment equity legislation.

Further to these interventions and since all of the existing sectoral charters have an employment equity dimension; the Department will work with the relevant sectors to assist them in meeting their employment equity obligations arising from their respective charters. The Department will also monitor the impact of HIV/AIDS and continue to promote the implementation of the Technical Assistance Guidelines.

Strategic Objective 4: Protecting vulnerable workers

Several sectoral determinations were promulgated during the second cycle of our democratic rule. These sectoral determinations were necessary in order to protect workers whose unique work circumstances render them susceptible to the worst forms of abuse. The main challenge in the third cycle of the democratic government is to ensure that workers in the sectors governed by sectoral determinations benefit from these interventions.

The approach will include ensuring that in the first place, employers and workers understand their reciprocal rights and obligations. To this end, the Department will continue to embark on advocacy campaigns aimed at engendering the culture of voluntary compliance. Since there are those employers who will not comply with sectoral determinations unless they are forced to, the Department will during the period 2004-2009, increase its capacity to enforce sectoral determinations, especially in the domestic and agricultural sectors. It is also anticipated that during the period 2004-2009, more sectoral determinations will be promulgated in sectors in respect of which such interventions are deemed necessary.

While the notion of atypical or non-standard forms of employment is not a problem per se, it has been clear that certain types of atypical employment relations expose workers to unacceptable forms of vulnerability and exploitation. These forms of employment relations affect workers negatively and also contribute to growing precariousness and insecurity in the labour market. In order to respond to this challenge we shall conduct research into the full impact of casualisatian of labour and outsourcing and devise ways of dealing with their negative impact on workers and the economy as a whole.

Strategic Objective 5: Strengthening multilateral and bilateral relations:

After many decades of isolation as a result of its abominable policies of apartheid, South Africa now occupies an enviable place in the global arena, in both multilateral as well as bilateral relations. Over the next five years the Department will promote a collective multilateral approach to global challenges and work for the democratisation of global institutions that operate within its spheres of influence. To that end, South Africa will continue to participate in the SADC, ARLAC, African Union (AU), and in the ILO.

We have also signed several bilateral agreements with ministries of labour in countries that South Africa has an interest in. The challenge in the next five years is to ensure that we solidify our relationships with strategically placed countries and also extends our influence in the region so as to promote the "harmonisation of labour standards".

Strategic Objective 6: Strengthening social protection

In the past few years Parliament has passed a series of laws aimed at providing a social safety net, including the provision of social support to workers in the event of temporary loss of income due to unemployment or work related injuries. In the next five years, the Department will seek to strengthen these social support systems.

Strategic Objective 7: Promoting sound labour relations

It is generally agreed that the degree of adversarialism that characterised the pre-1994 period drastically declined during the first ten years of democracy, manifest in part by the decline in the number of person-days lost due to strike action. This was largely attributable to the efficacy of our labour market policies as well as the maturity of social dialogue – which is also regulated by labour legislation

At the dawn of the third cycle of democratic rule, new labour relations challenges are beginning to emerge. The labour relations environment is entering hitherto unchartered territory, whereby workers and management need to negotiate complicated issues such as methods of production. Global competition calls for a more enhanced degree of cooperation between labour and management. In other words, in respect of industries that face fierce international competition, management and labour need to redefine their relationships to enable them to jointly produce goods and services at globally competitive prices.

The challenge for the Department of Labour is that of facilitating the deepening of these relationships - in the first instance through NEDLAC.Bargaining councils as centres of social dialogue have been functioning effectively in the first two cycles of democracy.

However, the impact of bargaining councils on small business continues to be raised as one of the constraints of the growth of SMMEs. An empirical study shall be undertaken on this matter and interventions developed, should the results of the study suggest it necessary. At the same time, the tendency to casualise workers and create triangular labour relations undermines both the letter and the spirit of labour legislation - thus rendering workers vulnerable. As earlier indicated, comprehensive research on atypical forms of employment would be carried out with an intention to effect whatever interventions are required.

Strategic Objective 8: Strengthening the capacity of labour market institutions.

The Department of Labour created appropriate labour market institutions during the first cycle of democratic rule. Most of these institutions have been operational for about ten years, during which many lessons have been learned. It is now necessary to carry out an evaluation of these institutions, assess their strengths and weaknesses, and effect whatever interventions are required to increase their efficiency and enhance their effectiveness.

Strategic Objective 9: Monitoring the impact of legislation

During the second cycle of our democracy, government departments were structured into clusters in order to promote collaboration and improve coordination both at a policy as well as implementation level. While this intervention has improved the overall performance of government, it has also revealed a lack of synergy in relation to how macro-economic policies, industrial policies and labour market policies are harmonised in a bid to create an environment conducive to job creation.

During preparations for the GDS some of these policy contradictions became more pronounced. The GDS commitment to half unemployment by the year 2014 calls on all government departments to prioritise employment creation, not as a residual of other policies but as a key objective. This will inevitably mean that government departments should develop their capacity to explicitly illustrate how the policy positions they develop contribute to job creation.

The Department of Labour will, during the third cycle of democratic governance carry out research, monitoring, and evaluation aimed at determining the extent to which labour market policies are harmonised with other economic policies and contribute to the objective of creating work opportunities.

Strategic Objective 10: Strengthening the institutional capacity of the Department:

In 1999, the Department restructured provincial offices into business units in order to respond to the challenge of shifting focus from policy formulation to implementation. This has significantly improved the Department's service delivery record. Certain key functions have been decentralised from Head Office to provincial offices and others from provincial offices to labour centres.

During the period 2004-2009 the Department will undertake an evaluation of lessons learned in the last five years and identify areas of work that need to be strengthened in order to further increase the effectiveness of the institution in delivering its services.

Addendum: Monitoring and Evaluation (COSATU raised this as an issue in particular the monitoring of the GDS deliverables)

The first cycle of the Department's interventions in the labour market was largely a period of developing a new policy framework and institutions that would ensure its implementation. The second cycle was characterised largely by an increased focus on implementation and learning from the lessons that were emerging. The cycle beginning in 2004, which is the third cycle, has been appropriately characterised by President Thabo Mbeki, in his State of the Nation Address on 21 May 2004:

"The government is also in the process of refining our system of monitoring and evaluation, to improve the performance of our system of governance and the quality of our outputs, providing an early warning system and a mechanism to respond speedily to problems, as they arise. Among other things, this will necessitate an improvement of our statistical and information base and enhancing the capacity of the Policy Coordination and Advisory Services Unit".

To further consolidate the President's point, the Minister of Labour has already indicated that. "... We live in a rapidly changing world and in order to ensure that our labour market policies continue to address the real issues facing the people, it is essential that our understanding of the labour market is accurate. In this regard, we have strengthened the Department of Labour's research and statistical analysis capacity"

The policy context for South Africa's transformation agenda has been set, and a new set of challenges now faces the country. South Africa has gradually matured from the process of policy formulation and has begun the process of policy implementation: The next five years will have to grapple much more with the notion of policy impact.

Unlike the previous two Programmes of Action therefore, the high emphasis on implementation means that monitoring and evaluation will be a key component of the Programme of Action.

Three key issues arise when looking at mechanisms for measuring success. Firstly, the Department will use both internal and external mechanisms to measure success, thus utilizing both its internal structures and outside agencies as required. Secondly, within each of the two mechanisms, the Department will use processes that build on the strengths of both qualitative (rich text) and quantitative (hard data) aspects of measuring success.

Thirdly, processes of measuring success will build within them, intervention mechanisms that offer a feedback to the clients. Given that this Programme was developed through extensive consultation with the social partners, mechanisms will be established to enable social partners' involvement in the evaluation of impact of this programme.

Ultimately then, the ongoing monitoring and evaluation of the Department of Labour’s policy outcomes, remains a key ingredient that runs the full spectrum of all the ten Strategic Objectives in this 2004-2009 Ministerial Programme of Action.

Conclusion

The Minister’s Programme of Action, that covers the period 2004-2009, is an attempt to address the remnants of the apartheid legacy in the South African labour market. It is also firmly embedded within the context of increased levels of global competitiveness that do suggest a dynamic, yet at times onerous, working environment for employees and employers alike.

The Programme, in terms of the domestic policy environment, also recognizes that the challenges of long-term sustainable employment require a concerted, co-ordinated and multi-pronged approach that draws on the strengths of all government departments.

By putting in place a programme of action we set broad parameters indicating the direction we take in the next five years. The ten key focus areas highlighted here will be addressed on a phased basis using the Department's annual work plans based on the DoL Strategic Plan.

Unforeseen circumstances may emerge and justify adjustments to this Programme. That is in the nature of planning. This Programme of Action is a statement of commitment to deliver these services to the Public. It is the basis of what should be expected of the Department of Labour in the next five years.

 

Enquiries: Name Mr Monwabisi Maclean

Telephone 082 809 3195

Email [email protected]