The Portfolio Committee on Labour, having conducted oversight visits to the Northern Cape and the North West from 4 to 8 October 2004, reports as follows:

Ms O R Kasienyane (ANC-Chairperson)

Mr T G Anthony (ANC)

Mr M Maduma (ANC)

Ms L N Moss (ANC)

Mr M J G Mzondeki (ANC)

Ms N D Ngcengwane (ANC)

Mr G G Oliphant (ANC)

Mr S M Rasmeni (ANC)

Ms B Tinto (ANC)

Mr R K Henderson (DA)

Prince N E Zulu (IFP)

Mr N T Godi (PAC)

Ms S Rajbally (MF)

Mr W D Spies (FF Plus).

Ms P Jayiya (Committee Secretary) and Ms C B Paulse (Committee Assistant) accompanied the delegation.

The terms of reference of the Committee were to:

* Exercise oversight over the DOL’s adherence to the strategic objectives as set out in its strategic plan for 2004-05, and to assess progress made with the implementation of the set objectives.

* Assess the level of compliance with the existing labour legislation by the DOL and employers.

* Ascertain whether targets set in relation to employment equity, learnerships, occupational health and safety and job creation were met.

* Establish progress and challenges faced at provincial level by the DOL and other stakeholders.

* Conduct oversight by interacting with the DOL, labour centres, employers and employees (including organised labour), the Commission for Conciliation, Mediation and Arbitration (CCMA), Umsobomvu Youth Fund, designated groups (Women, people with disabilities and the youth) and other stakeholders.

C. Itinerary

(1) Briefing at Northern Cape Provincial Office in Kimberley.

(2) Presentation at PPC Lime Mine.

(3) Departure to Kuruman.

(1) Presentation at Sishen Iron Ore Mine.

(2) Presentation by DOL and labour centre staff at Livingstone Lodge, Kuruman.

End of Northern Cape programme.

Depart for Vryburg.

(3) Meeting with staff from Vryburg and Taung Labour Centres

(1) Visit to two farms in Vryburg - interaction with farmers and farm workers.

Depart for Mafikeng.

Day four: 7 October 2004

(1) Briefing by provincial office (Mmabatho).

(2) Meeting with Provincial Skills Development Forum (PSDF), Umsobomvu Youth Fund, SANGOGO, and designated groups.

Depart for Klerksdorp.

(3) Meeting with CCMA.

(1) Meeting with North West Labour Market Co-ordinating Forum (NWLMCF).

(2) Media briefing.

End of visit.

D. Structure of the report

The report presents the daily activities undertaken by the delegation. It outlines the various presentations made to the delegates by the various stakeholders, site visits, salient issues and problems identified by the Committee while on site visits, and recommendations put forward by the Committee for action.

(1) Presentation by Northern Cape DOL Provincial Office

The Committee received a briefing from the management team comprising the following persons:

i Mr D Makhanda, Provincial Executive Manager;

ii Mr J Mphahlele, Head: Regional Office, Kimberley;

iii Ms P Ruwana, Business Unit Manager: Labour Market Information,

Statistics and Planning (LMIS&P);

iv Ms I Schoeman, Business Unit Manager: Management Support Services

(MSS);

v Mr A K Pillay, Business Unit Manager: Beneficiary Services;

vi Ms F Camphor, Business Unit Manager: Employment and Skills

Development Services (ESDS);

vii Mr R Geswint: Inspection and Enforcement Services (IES);

viii Mr G Sefotlho, Communications Officer.

The Provincial Executive Manager briefly introduced the organisational structure. The Business Unit Managers of the various programmes made presentations as follows:

(2) IES

The province has a total of seven labour centres and 42 inspectors. The labour centres are serviced by two assistant directors, two senior practitioners and three practitioners. The centres are located in Kimberley, Kuruman, Calvinia, De Aar, Springbok, Upington and Postmasburg.

Constraints

(a) Lack of subsidised 4x4 vehicles for areas that are not reachable by any other means. Areas mentioned were Noenieput, Mier, Van Zylsrus, etc. Most inspectors can only afford a Toyota Tazz or a VW Golf.

(b) Lack of facilities in remote areas.

(c) Distances traveled by inspectors within the respective regions. The concern expressed is that more time is spent on the road.

(a) The introduction of 4x4 mobile units can enhance service delivery in remote areas. The introduced mobile units could serve as labour centres.

(b) The DOL should investigate suitable affordable transport for level-five and level-six inspectors.

(a) Follow up on inspections conducted.

(b) The timeframe set for filling vacancies.

(c) Whether the DOL considered renting those 4x4 mobile units on an ad hoc basis.

(d) Whether the inspectors covered the inspection of seasonal workers.

(e) How does the DOL envisage servicing areas that are not accessible as a result of distances to be traveled?

(f) What role does organised business play?

(g) Progress on the integration of the inspectorate and learnerships in respect of inspections.

(h) Accessibility of CCMA offices.

(a) There have been successes in conducting follow-up inspections. Standards and timeframes have been set. Such an exercise is done within a specific period.

(b) All vacancies in the IES are in the process of being filled. All posts in the inspectorate are regarded as critical.

(c) The DOL is currently engaged in a special project of conducting inspections in the agricultural sector. The approach of the DOL in purchasing 4x4 mobile units is to assist inspectors in conducting inspections in remote areas.

(d) The DOL takes the issues of seasonal workers and child labour seriously. For example, a two-week blitz was conducted in the Kakamas area. The DOL is currently consolidating a report on those inspections. Provincial structures have adopted a collective approach in dealing with child labour.

(e) Regarding vast distances to be traveled, more emphasis is put on planning so that visits are conducted in almost all the regions. The DOL, however, is in the process of servicing the Orange Valley area to ascertain what is happening on those farms. Law enforcement is exercised where incidents are identified.

(f) Agri SA and government departments, including NOCCI from organised business, are role players who constitute the stakeholders’ forum.

(g) In relation to the integration of the inspectorate, the national office deals with the matter.

(h) Regarding learnerships and inspections, the province is currently finalising the curriculum and learning material for learners in each labour centre in the province.

(i) The offices of the CCMA are located closer to transport nodes, such as taxi ranks.

(3) ESDS

This Unit is assigned the responsibility of enhancing employment and skills development in the province.

Constraints

(a) Shortage and capacity of computers;

(b) Lack of space for learners;

(c) Implementation of the NSFDIS;

(d) Staff shortage;

(e) Shortage of pool cars.

Remedial action

(a) Write submission to the Business Unit Manager/Provincial Executive Manager for new computers.

(b) Siemens to install new server to increase the capacity and speed of old computers.

(c) The management to approve the submission on the allocation of office space.

(d) The responsible Deputy Director-General to fast track the response on the submission on the implementation of the NSFDIS.

(e) The filling of existing vacancies of ESPs to be prioritised.

(f) Feedback on applications for subsidised cars to be sped up.

Comments/Questions

(a) Is the impact of the support on social projects assessed?

(b) How well has the social plan been implemented?

(c) What is the attitude of the community towards the prison inmates who underwent training on various skills? Does the latter receive capital to pursue the acquired skills. How many get jobs after training?

(d) What is the relationship between the DOL and the SETAs? What is the role of the latter in reaching the remote areas, especially farms?

(e) For how long have the noted constraints on service providers been experienced?

(f) How does the DOL assist the retrenchees?

(g) To what extent does the DOL assist small business organisations?

(h) Is the training provided based on the skills required in the labour market?

(i) How has the consultation process progressed on the new National Skills Development Strategy (NSDS)?

Responses

With respect to the consultation process on the NSDS, it was mentioned that issues raised were compiled in a booklet. People were also given an opportunity to submit verbal inputs.

No constraints were mentioned on the targets set on skills needed.

Recommendations

(a) The DOL should provide a more comprehensive presentation on how the scourge of unemployment could be alleviated.

(b) Bottlenecks in the upgrading of computers should be identified.

(c) The DOL’s response to questions raised on this programme should be forwarded to the Committee in writing.

(4) Beneficiary Services

The approved budget for Unemployment Insurance and the Compensation for Occupational Injuries and Diseases for 2004/05 amounted to R10 236m and R1 482 m respectively.

Constraints

(a) Major stakeholders are experiencing problems around the unemployment insurance cheque payment method and the constitution of the regional appeals committee.

(b) Certain enquiry screens in the province relating to compensation for occupational injuries and diseases were inaccessible.

(c) Most staff leave the institution as a result of salary levels.

Remedial action

(a) Introduction of the TEBA Bank A-card.

(b) Shorten the Compensation for Occupational Injuries and Diseases Act enquiry system through the implementation of the Safika Project.

(c) The process of the regional committees is still at NEDLAC.

Comments/Questions

(a) What mechanism does the DOL use to remedy the problem of non-compliance with the Unemployment Insurance Act?

(b) What is the progress regarding reducing the delays in the processing of claims?

(c) How will the introduction of the TEBA card help people in areas without banking facilities?

(d) How much is known about NEDLAC in the province?

(e) How does the province ensure that it reaches its population, especially taking into consideration that the province is predominantly Afrikaans-speaking?

(f) Does the farming community form part of the main stakeholders covered? The delegation wanted more information on the payments relating to adoption benefits.

Responses

(a) The farming community is one of the main stakeholders.

(b) The duration of the claim process is 18 days, and the success rate of claimants is almost 98%.

(c) In relation to service points, the DOL is trying to reach all the areas.

(d) The DOL acknowledged that NEDLAC is not well understood by the communities.

(e) The issue of the language policy is adhered to. Forms on the Internet are also available in Afrikaans.

(5) MSS

Out of 231 existing posts, 178 are filled and 53 are vacant. Of the 53 vacancies, 17 are in the process of being filled.

Constraints

(a) Staff are poached by other provinces. It is a struggle to get disabled people in all levels, especially at senior management levels.

(b) There is lack of office accommodation.

Comments / Questions

(a) What strategy does the DOL have to address the problem of office accommodation? The Committee suggested a clustered approach, which encompassed the use of Multi-Purpose Community Centres (MPCCs) to alleviate this problem.

(b) Are there any time frames set for filling the vacant posts?

Concerns raised by the Committee

(a) The absence of disabled people at senior management levels in the DOL;

(b) No mention was made of the relationship between the DOL and the Expanded Public Works Programmes (EPWPs);

(c) The under-representation of Coloureds and Whites in the DOL, and the Indian representation that is not gender sensitive;

(d) The issue of over and under-representation.

Responses

(a) With regard to addressing the office accommodation problem, the DOL does make use of MPCCs, especially for the inspectorate and the UIF. Agreements were made with the Departments of Safety and Security, and of Justice to make use of their offices.

(b) Most disabled people in the province are at senior levels. The shortage lies in middle management. Communication remains a problem as a result of difficulties in getting service providers.

(c) With respect to equity figures, the national office is over-represented by Whites. The DOL is working towards getting provincial figures right. Advertisements for vacancies are inclusive. There is a lot of poaching of African and Coloured staff. The EE Forum targets the issue of Indian females. The gender representation in the Northern Cape is estimated at 55% male and 45% female. In relation to time frames set on filling vacant posts, the DOL has two months to finalise the matter.

(d) On the issue of over and under-representation, the DOL has certain targets to be reached.

(e) The DOL is not involved in the co-ordination of EPWPs. Its role is only related to training projects that are identified by the departments.

(6) PPC Lime Mine

The Committee, accompanied by officials from the DOL, met with the management and worker representatives. This mine has two divisions, namely, Barloworld and Portland Cement, and produces both calcitic and dolomitic lime. It supplies 95% of South African lime. The mine provides employment to 350 people, who are housed in company and private accommodation.

The presentation included the following:

* The background of PPC Lime;

* Kambuku process;

* Employment Equity;

* Skills Development;

* Learnerships;

* Occupational Health and Safety (OHS);

* The perception of employees.

Concerns raised by the Committee

(a) The employment equity figures reflect a need for more White workers. Was the Mining Charter covered by the figures? The DOL also raised a concern around the employment equity categories. It expressed a need for a more substantive approach and an interrogation of company plans and figures provided.

(b) The presentation on OHS made no mention of occupational diseases.

Responses

(a) The figures presented were derived from the Mining Charter. The supply and demand of labour is an agreement between the employer and the employee.

(b) The incident rate only applied to the injured. On the issue of occupational diseases, an annual fitness test was conducted on all employees.

Questions

(a) How organised are the workers?

(b) Does the training provided extend to the community?

(c) Are employees trained to reach higher levels?

(d) Has the company had any retrenchments in the past? Is any assistance given to the retrenchees?

(e) Does the company have a health and safety committee?

Responses

(a) In relation to training, the community benefits through ABET programmes and the bursary scheme provided.

(b) A BEE-owned and controlled company has been established. PPC has shares in the company.

(c) The recent retrenchments occurred in April 2004. Each of the retrenchees was offered R5 000 to register for training.

Recommendation

The DOL should facilitate that the Committee is provided with a comprehensive report on employment equity, inspections, learnership programmes and diseases and injuries at PCC Mine.

The Committee conducted an inspection of the invocom, mining and production areas.

(1) Sishen Iron Ore Mine

The Committee met with the management and labour representatives from the Solidarity Union and the National Union of Mineworkers. Presentations covered labour issues, wellness and HIV/AIDS programmes, and the UIF collection of levies.

The Committee commended Khumba for its role in training the unemployed. It also acknowledged the conversion of hostels into family units.

The Committee expressed a concern that the report given lacked information on how the company transforms its management structure, and its progress in meeting equity targets.

Questions

(a) Does the company have a health and safety committee?

(b) What is the rate of disease, its nature and the number of persons discovered on a monthly basis?

(c) What happens to employees who get to a stage of being non-productive?

(d) Was HIV/AIDS testing voluntarily or compulsory?

(e) Are retrenched persons linked with community projects?

(f) What time frames were set to meet employment equity targets on the placement of disabled persons?

(g) What is the percentage of TB in the area?

(h) Who are the beneficiaries of procurement opportunities?

(i) What yardstick does the company use to monitor compliance with labour standards by subcontractors?

(j) Are there any recreational facilities for employees and their families?

(k) Does the company liaise with its counterparts to find alternative jobs for retrenchees?

Responses

(a) In relation to the rate of disease, the most common problems related to skin sensitivity. These problems are caused by glue and dust in the mine. There are regular instances of finger injuries. The company has an annual routine health check of the entire body for every employee, as well as a six-monthly red-card testing. There is also a follow-up lung function check-up every six months.

(b) Identified non-productive persons are often accommodated on rehabilitation projects and/or by changing jobs. In instances where the latter is not applicable, an employee is put on a pension scheme.

(c) The time frame set for employment equity targets is 2008. Those targets that are not easy to meet will stretch to 2009. Consultation has taken place with special organisations or persons to identify all positions suitable for the disabled.

(d) Training programmes on entrepreneurship skills are provided to retrenchees. With regard to sharing information with other mines on the possible placement of retrenchees, the company provides names of such incumbents to its counterparts.

(e) The company has a procurement policy in place. There is a provincial screening committee that screens people who want to be contracted. All contractors are rated in terms of a Black-owned or managed company. There is an ongoing process of auditing contractors, and those who do not comply with labour and internal laws will be dealt with accordingly.

Resolution

The Committee resolved that the DOL facilitates that the company provide it with reports on nodal projects on irrigation and rice, the housing plan, the follow-up process of rehabilitation, and the company’s procurement plan.

The Committee also conducted an inspection of the ABET Skills Training Centre.

(2) Labour Centre - Kuruman

The delegation, accompanied by the Provincial Executive Director, met with staff from Kuruman Labour Centre. The City Manager of Kgasigonyane Municipality welcomed the role players.

The DOL presented a report that covered the period 1 July to 30 September 2004. The Committee noted that there were only two inspectors to service the vast region.

The briefing covered client services, inspection and enforcement, employment services, service providers and problems encountered and challenges faced.

Client services

A total of 760 domestic workers were registered during the period July to September 2004. An amount of 108 unemployment insurance claims were paid up. A total of 89 complaints were resolved at client services.

The constraints experienced are due to incomplete information provided by employees about their employers. Such cases are referred to IES.

(3) IES

Out of 35 inspections conducted during this period, 25 were finalised. A total of 53 blitz inspections were conducted in the domestic worker sector.

Problems encountered

(a) Most employers did not conduct the risk assessment and were issued with contravention notices;

(b) Transport for inspectors;

(c) Untraceable employers;

(d) Foreign business people, especially in the wholesale and retail sector.

(4) Employment Services

During the current financial year, an amount of R2 175 million was approved for the following projects:

(a) Kgalagadi Dipudi Co-operative Enterprise

(b) Livestock improvement & production projects

(c) Kgalagadi integrated energy centre

(5) Service providers

Out of five service providers, only two were registered. Three were in the process of registering. Most service providers were in the catering and cleaning sectors.

(6) The Committee commended the DOL on its report.

It raised a concern about the number of inspectors, the vastness of the area to be serviced, and the issue of foreign business people who are claimed to be taking over businesses in Kuruman.

Questions by the Committee

(a) Is there an organisation that represents domestic workers in the region?

(b) What is the percentage of untraceable employers and unemployed people?

Responses

(a) The majority of domestic workers is not organised. The DOL deals with most of their cases. CAWU sometimes gets involved.

(b) The unemployed in the region is estimated at 50-60%. The DOL, however, is currently creating a database for employers. The information captured on the database would reflect the number of employed people.

(c) The DOL, together with the provincial office, is working on a strategy to deal with untraceable employers. The DOL is embarking on the Siyaya project for beneficiary services. Such a project will link employers to the database and to SARS.

(d) With respect to foreign business people, the concern is the language barrier. This results in a communication problem.

(e) A number of training programmes are provided to the disabled to enable them to start their projects. Most disabled people in the Kgalagadi area had received computer literacy and business skills training. Some were absorbed into the local municipality. Others relocated to regions where chances of employment were good.

(f) The Committee noted the problem of the shortage of computers and transport. It was suggested that the general lack of resources should be quantified from time to time.

Resolution

The DOL should provide the Committee with reports on the stakeholder profile, the cause of such high vacancy levels, and how it hopes to deal with that problem, as well as a report on learnerships and child labour.

(7) Vryburg

The Committee met with the Provincial Executive Manager: Mr A Makaphela, managers and staff from the Vryburg and Taung Labour centres.

Challenges raised:

(a) There is a need to intensify the advocacy approach in farm areas as most of the people are vulnerable.

(b) There is a need to enhance co-operative governance.

(c) In respect of cross-border servicing, many cases that come to Taung are referred to Kimberley. This affected service delivery and turnaround time.

Questions

(a) What is the level of compliance by employers?

(b) Has the DOL approached the Department of Home Affairs (DHA) regarding the problem of foreign business people?

Responses

(a) There is a decrease in the prosecution mechanism. Reports from team leaders reflect a 50-70% compliance. The situation has improved since inspectors had been provided with subsidised vehicles. The capacity given to inspectors has had a positive impact on the operations. There are employers though who do not comply. The DOL is of the view that if procedural process can be reduced, the situation can improve even more. There is a need to get other partners on board, such as the Department of Trade and Industry (DTI). The route taken to prosecute foreign business people who flout the law is too long. There is a need to engage DTI to check the issuing of licenses. The legislative framework makes it difficult for the DOL to intervene in assisting local business people.

(b) The DHA was contacted regarding some Pakistanis who were inside the country illegally. The legislative framework does not make it easy for the DOL to intervene in cross-border labour migration.

Recommendations by the Committee

(a) The focus in addressing the problem of foreign business people should be on checking compliance with South African laws.

(b) There is a need for politicians to engage other colleagues on the matter.

(c) The DOL should interact with municipalities that issue licences willy-nilly. A report on such interactions should be made available to the Committee. Parliamentary Constituency Offices should also be used to circulate those reports.

(d) The Committee should investigate the procedural impediments in the prosecution of foreign business people who do not comply with legislation.

(e) The Committee should look into the issuing of licences.

Questions

(a) How often does the DOL meet with worker representatives?

(b) How does the DOL deal with closure of mines?

Responses

(a) SACCAWU is an active union in the region. There has been a concern that most of its members are losing their cases.

(b) The issue of rehabilitation happens as soon as the Department of Minerals and Energy issues a mine closure certificate.

Resolutions

(a) The Committee feels that there is a need for the DOL to ensure good relations with the Department of Minerals and Energy, especially on issues such as the closure of mines and mine rehabilitation.

(b) The Committee requested that it be provided with what was reported on in writing.

6 October 2004

The Committee met the staff in the provincial office and received a briefing from the five business units, namely, MSS, LMIS&P, BS, IES, and ESDS. Each presentation was based on achievements and challenges.

(1) MSS

The core business of this unit is to render support to business units. It is responsible for safety and security and the administration of IT services.

Challenges

(a) Commitment of staff;

(b) Lack of sense of urgency among certain staff members;

(c) Getting buy-in from staff to support the DOL’s initiatives;

(d) Effective communication.

(2) Business Services

Challenges

(a) The long turnaround time in the payment of claims;

(b) Employers who change their addresses continuously;

(c) Companies that have been liquidated;

(d) Untraceable employers;

(e) Incomplete information supplied by companies.

Solution

As a solution to the long turnaround time in the payment of claims, the Province formed a team to look into its processes. This resulted in the reduction in turnaround time by 92%. The is participating in Compensation Commission workshops directed at the new processes that will reduce backlogs.

(3) IES

The presentation covered inspections and enforcement, and compliance.

Challenges

(a) The protocol inhibits effective inspection;

(b) Access to farms, if no prior arrangements were made;

(c) Delays in the processing of cases by the Labour Court;

(d) Lack of knowledge of legislation of the DOL by the Labour Court;

(e) Accessibility to private household by inspectors.

In relation to the protocol problem, Agri SA needs to provide the DOL with its members’ names and contact details. It is sometimes difficult to establish where a certain farm is located. Not all farmers are members of Agri SA. This would make it difficult for the DOL to identify farms.

Questions raised by the Committee

(a) Was it possible for DOL to use the same inspectors to fight the backlogs?

(b) Does the DOL conduct inspections at employment agencies to monitor compliance?

(c) What are the experiences of inspectors on casualisation?

Response

(a) There has been a concern that putting too much responsibility on the inspectors could compromise the quality of inspections.

(b) The Province has no problems although it is not strong economically. Most problems related to subcontracting in the mining sector.

(c) Most employers use casualisation to escape their social responsibility. This practice is common with big enterprises, such as Pick n Pay, Checkers, etc. The wholesale and retail sector remained a problem.

The Committee sought clarity on the commitment of the DOL to ABET and raised a concern about the environment in which people in the provincial office worked, as well as the vacancy levels of inspectors.

(4) ESDS

The ESDS is a public employer agency and a skills development facilitator and implementer in the second economy.

The ESDS unit budgeted R27 million for training the unemployed. However, 2 452 persons were trained and placed in income-generating entities. Out of the trained incumbents, 1% was from the disabled. There was a need to increase the intake of the disabled in order to meet the 4% target set.

Challenges

(a) The cross-border labour migration in the Britz area;

(b) The visibility of SETAs in the Province to escalate consciousness and intake of learners into learnerships. The PSDF tried to engage sectors such the mining and agriculture, although they were reluctant;

(c) The relationship with the private sector is weak;

(d) The issue of leadership and ranks remained a problem. There was a need to upgrade the structure of the department;

(e) Changing the IT system to a secure one would ensure that there was a decreased chance of fraud;

(f) The challenge in assisting retrenchees according to the social plan is around companies that do not inform the DOL of intended retrenchments;

(g) Privileged service providers were still in the monopoly. The challenge is for the emerging service providers to undergo training in order to be linked with the SETAs;

(h) There was a problem with government departments who did not comply with legislation.

Way forward

(a) A meeting with the farming community and DHA officials around the Britz area should be convened.

(b) An all-sector consultative meeting with business and the SETAs in the Province will be convened

(c) Employers were encouraged to register with SETAs in order to claim grants.

Questions

(a) What is the average period of placement after completion of training?

(b) How many disabled people have benefited from the bursary fund and the list of projects that have been funded?

(c) Do foreigners benefit from the DOL’s social plan?

(d) Is success achieved in the area of the social plan, and the training of people who have been laid off? Were various sectors of the economy engaged in this endeavour?

Responses

(a) The average period of placement could be three months. Employers often come to the labour centres to seek workers.

(b) The bursary fund is centralised in Pretoria. The role of the Province was to sensitise people with disabilities to apply and to make recommendations. The Committee would be provided with the statistics. The Committee noted the issue of training providers who do not include disabled persons in their training. It suggested that the department look at the matter when contracts were issued. In relation to training, the Province was of the view that there was a need to monitor the aftercare of people after training.

(c) According to its policy, the DOL does not engage in the training of foreigners. It only gets involved in providing services in cases of retrenchments, for example through counseling. The issue is still being debated within the DOL.

(d) The successes in terms of the social plan depended upon all departments, and the Department of Provincial and Local Government should assist. In addition the ESDS unit had agreed that labour centres needed to identify all vulnerable sectors and be encouraged to team up a structure where there was an impending retrenchment.

Concern raised by Committee

The Committee was concerned about the non-visibility of SETAs. However, a meeting had been organised by the DOL to address the matter, including the impact of SETAs.

Clarity sought by Committee

The Committee sought clarity on whether the employment equity report fell within the ESDS domain. The response given was that although this is not its area of work, skills development could not be divorced from employment equity.

Questions

(a) Was training provided and skills development related to market demand? How did cross-border migration affect the local employment?

(b) Are problems experienced as result of employment agencies recruiting people to work outside of country?

Responses

(a) Training was based on the demand on the ground. In relation to cross-border migration, there were employers, especially in the agricultural sector, who were taking advantage of the legislation.

(b) No problems were raised. There were 13 employment agencies in the Province. This made it easy for the DOL to monitor.

Visit to farms

The Committee, accompanied by the departmental officials, visited two farms and interacted with farmers, farm workers and a domestic worker.

(1) Liliesfontein Farm

Findings

(a) Workers worked for eight hours a day, and were paid according to the minimum wage. Some workers worked overtime.

(b) The rate of illiteracy was high.

(c) Workers were not aware of their rights. In most cases they received information through correspondence sent to the employers.

(d) In cases where the employer paid for the medical expenses of employees, the former reclaimed the money. Dependants were not covered in such arrangements.

(e) Part of the deal during the start of employment was that one of the benefits would be groceries and meat. The current situation showed that they received groceries without meat.

(f) Each family had a four-roomed electrified house.

(g) In the event that workers had complaints, arrangements were made for the employer to meet with all of them.

(h) Families should report when expecting visitors.

(i) Spouses of other employees got casual jobs on the farm.

(a) In relation to housing, employees should be encouraged to access government grants so that they could have their own houses.

(b) Employees should be capacitated so that they could consider having their own farms and be self-sustaining.

(c) Employers should do something about the level of illiteracy through ABET programmes.

Responses and concerns from the employers

(a) Workers resisted the advice given by employers.

(b) Transport for school-going children was a problem.

(c) The minimum wage has caused some retrenchments as farmers could not afford to pay the employees at the promulgated rate.

(d) There were good relations between farmers and their employees, except in isolated cases where employers mishandled employees. Those cases were published in the media, and not all of them involve farmers.

(2) Drassybend New York Farm

(a) Employees received a minimum wage of R770.00 per month and a pay slip.

(b) Workers also received a 10% annual increase, 12 days’ leave and a bonus of R1000.00.

(c) Employees were responsible for their medical care. In some cases they had to find their own way to reach medical facilities.

(d) Workers were not aware of their rights. In most cases they received information through correspondence sent to their employers. No one came to educate or inform workers of things to look for.

(e) The money that should be paid for overtime was not reflected on the pay slip.

(f) No formal disciplinary hearings took place - the employer and employee resolved their problems.

(g) The level of illiteracy was a cause for concern.

(h) The workers were aware that the existing laws have brought positive changes.

(i) Ablution facilities, such as the toilet, were located in an awkward position and were not in good order.

(j) The Committee noted with great concern that there was still a lack of advocacy among farm and domestic workers. It was also concerned that facilities, such as toilets, were not in good condition.

(a) Employers should look into the possibility of improving toilet facilities for employees.

(b) Employers should address the issue of transport when employees are sick, rations should include meat and overtime payments should be reflected on pay slips.

(c) Illiteracy should be addressed through ABET programmes.

Responses from employers

(a) Employers tried to comply with the new laws and often attended training on labour issues.

(b) Workers had the privilege of buying sheep at a cost of R200.00.

(c) The new laws make it difficult for employers to institute disciplinary actions.

(d) Deductions are based on the loans made to employees.

(e) Landlords often exploit farm workers on rentals they pay for their children who attend school away from the farm.

(f) Working hours differ according to seasons.

(g) The inspector from the DOL alluded to the fact that the minimum wage has affected seasonal workers. There is a need to review and amend the legislation to address this problem.

The Committee noted that there was a level of compliance with the law by employers. An appeal was made to employers to re-instate paying above the minimum wage. Workers who received training on certain skills should receive more than the minimum wage.

7 October 2004

Presentation by North West Provincial Skills Development Forum (NWPSDF)

The NWPSDF was a strategic forum set up to identify skill needs in the Province. It comprises provincial government departments, the Premier’s Office, organised labour, non-governmental organisations (NGOs), and academic institutions.

The Committee received briefings from the following stakeholders: Office of the Status of Women (OSW), SANGOGO, the Disability Group, Umsobomvu Youth Fund and government departments

(1) NWPSDF

(a) NWPSDF members needed training on their responsibilities.

(b) ABET centres are flooded by matric repeaters who are not where they are supposed to be. Those centres are unable to offer subjects such as physics.

(c) There was also a problem of mainstreaming further education and training (FET) since matric repeaters flooded that area.

(d) There are problems that resulted from the merger of academic institutions, especially that some institutions had to be transformed.

(e) In respect of using funds contributed by the DOL, such funds were centralised, and therefore institutions that were supposed to access them did not.

(f) Young people were still caught up in the idea of being academics.

(2) SANGOGO

(a) Most members of NGOs bear the brunt of service providers who were not accredited.

(b) There was no guarantee of placement after training.

(c) Service providers designed training material without consulting the people.

(d) Most often skills acquired from training were not recognised.

(e) There was a gap between the curriculums provided by educational institutions and the skills required by the market.

(f) There was a need for an integrated skills development approach that would address the problem.

(3) COSATU

(a) There was a gap between the schools and skills training.

(b) There was a proliferation of ABET centres throughout the province.

(c) Skills development initiatives did not benefit the people on the ground.

(d) As a result of the nature of the province, there was a need to identify skills in which people should be trained.

(e) The vast number of people were not aware of the existence of the NWPSDF, legislation, training programmes, outcomes of the GDS and how to access learnerships. The plea was that the information should filter down to the people on the ground.

(4) UYF

(a) The UYF had embarked on projects that involved recruits from the province. Efforts should be made to enhance their visibility in the province.

2. National organisations were mostly based in Gauteng.
3. The UYF was in process of appointing a provincial co-ordinator to ensure sufficient integration of efforts.
4. There has been a vacuum between national and provincial levels.
5. The UYF was conscious that there should be an equitable distribution of resources within the province.
6. A submission on the review of the NSDS was made to the DOL.
7. The UYF was working with the DOL through the labour centres as access points for youth who wanted to access its services.

(h) The UYF was also working within the FET arena to enable young people to acquire skills according to the needs of the province. Four FET institutions were due to get funding to the value of R6m in this regard.

(5) Youth Commission

The Commission has participated in the process of developing learnerships that would be implemented by the public service. It was concerned that the province would not respond proactively to the learnerships.

The Commission was also concerned about the commitment from government and the poor co-ordination of activities that took place amongst the youth structures. Its view was that the integration of various youth organisations would exonerate the youth from this poor co-ordination. For the Commission, the issue of public service learnership programmes warranted political intervention.

(6) Disabled persons

Oral submissions were received from the North West Council for the Blind, the Ikageng Self Help Project and the Deaf Federation of the North West.

(a) According to the disabled groups, statistics reflected that since 2002, almost 1, 2 million disabled people have been unemployed.

(b) The other form of discrimination was the inaccessibility to facilities.

(c) Disabled people, especially from the deaf community, experienced problems when accessing public facilities such as hospitals. In most cases there was no interpreter to assist with sign language. It was suggested that support relating to sign language and interpreters be strengthened.

(d) Most people from the deaf and blind communities were unemployed.

(e) Most institutions when approached to assist the disabled claimed that they did not have people to assist.

The DOL was requested to monitor equity and affirmative action when the disabled applied. There was a plea for the DOL to intervene in problems raised by the disabled communities.

There was also an appeal for government to employ sign language interpreters to work in various offices.

The Committee wanted to know how many disabled persons were employed and whether they were happy. The provincial Department of Sport, Arts and Culture (DSAC) acknowledged that sign language interpretation was a scarce skill. It conceded that there has been a problem in training due to the unavailability of necessary equipment. It was suggested that SETAs ensure that service providers during the tender process undertake to have the necessary resources to cater for the blind.

The DOL alluded to the fact that the Health and Welfare SETA funded registered projects to train employees from the disabled sector. Five trainees from the province benefited from that project. Out of the 16 disabled people trained in computer skills, eight were deaf.

Comments/concerns by the Committee

The Committee noted with great concern that service providers did not always have the necessary resources and/or equipment to cater for the disabled. It also observed that there were no funds allocated to projects for the disabled. The Committee emphasised its role in monitoring and ensuring that the existing laws are implemented. The DOL realised that although not much had been done in respect to the disabled, there was progress and room for improvement.

(7) OSW

The OSW registered a concern about the institutional arrangements pertaining the gender focal areas in the DOL and its status in the appointment of the gender co-ordinator in the province.

Response

The DOL does have gender focal people at provincial offices and labour centres. The provincial office kept close contact with the Gender Desk in the Office of the Premier.

(8) Department of Agriculture, Conservation and Tourism

A concern was raised that there was no SETA that catered for conservation since the North West Province was a prime conservation area. A request was made to the UYF to assist in encouraging the youth to get into the mainstream of conservation.

(9) Siyasa Security Industry (SSI)

The majority of members of this organisation are employers who are in support of the skills training and empowerment. SSI was of the view that the Skills Development Act needed to focus on training people to be entrepreneurs, and that there was a need to pilot projects that were meant to empower people. SSI was concerned about SETAs that were sitting with surpluses on discretionary grants.

Recommendations by the Committee

(a) The Committee should be provided with a report on projects and programmes in which stakeholders were engaged.

(b) A skills audit should be conducted in the province.

(c) The NWPSDF should identify other stakeholders, including Parliamentary Constituency Offices, to assist in the dissemination of information.

(d) It should be provided with the information about the regularity of the meetings of the NWPSDF.

(e) It was crucial for members of the NWPSDF to be empowered.

(10) CCMA

The Committee met with Mr Kekana, Head of the CCMA in Klerksdorp.

One of the achievements highlighted was that the organisation had since managed to stabilise the labour market and had succeeded in its endeavour to make a paradigm shift from the old system.

(a) There were limited resources and facilities. The organisation cannot dictate on facilities to be provided. The province was faced with the problem that eight commissioners had to use five rooms in Rustenburg. The CCMA was unable to address those challenges as a result of resources.

(b) There was a shortage of commissioners. There was a need for three to five additional commissioners.

(c) There was an infiltration by consultants. The sophistication of parties made it impossible to handle cases speedily. However, with better resources people could be serviced optimally.

Questions/comments by the Committee

(a) Was there any relationship between the CCMA and the PCOs in the province?

(b) Were cases brought to the CCMA by domestic workers mainly as a result of victimisation, and how aware are they of their jurisdiction?

(c) Was there a database of people whose cases were referred by CCMA to the Labour Court?

(d) How frequently was the call-up process used?

(e) What was the level of case reviews?

(f) More clarity was sought on the enforcement of awards by the CCMA.

(g) How did the CCMA deal with cases that took place on the shop floor?

(h) Was the shortage of Commissioners the result of poaching?

(i) The Committee registered its concern over the issue of vulnerable workers who were not unionised, and the disability sector that was characterised by unfair labour practices.

Responses

(a) The CCMA acknowledged that it had no structured relationship with PCOs. It did have a relationship with the paralegals that operated through the advice offices, the DOL and heads of the labour centres. It has just established a relationship with the Department of Land Affairs on evictions. Commissioners have been capacitated to deal with such cases. No relationship had been established with the South African Police Service (SAPS) as yet.

(b) The impact of the minimum wage resulted in the dismissal of some domestic workers . However, the common type of victimisation may be related to people living with HIV/AIDS. The other problem was that domestic workers did not become organised. This, however, made it difficult to train them so that they could become aware of the services rendered by the CCMA.

(c) There was a database of enforcements and reviews that was sent to the Labour Court. However, the legal officer who was dealing with a particular case did not keep in contact with the worker until the CCMA received an outcome from the Labour Court.

(d) The call-up process was meant to assist in the backlog in processing of cases.

(e) Ten percent of referred cases go for review. About 80 to 100 cases handled monthly-required arbitration.

(f) The enforcement of awards to domestic and farm workers remained a problem. The difficulty lay with the enforcement of a writ of execution. The CCMA felt that although the amendments had assisted, the issuing of the writ of execution remained a problem.

Recommendations by the Committee

(a) The CCMA and the DOL should agree on issues that required education and advocacy.

(b) A follow-up report that reflected cases, their profiles, for example domestic, farm and mine workers, should be forwarded to the Committee.

The Committee also met with stakeholders of the LMCF in Klerksdorp.

(1) Education and Labour Institute

Concerns raised

(a) Not enough was done in consultation with the public representative bodies on legislation. An example was the consultative process during the sectoral determination on the minimum wage.

(b) The interpretation of legislation was not the same.

(c) Cases took a long time to be processed.

(d) Public hearings were not formulated in such a way that the public was able to make an input.

The time taken to resolve cases in the Labour Court needed attention.

(2) FEDUSA

FEDUSA appreciated and acknowledged that organised labour had access to legislators. An appeal was made for an amendment so that there could be a reason for conciliation not to take place.

Concerns raised

The Labour Relations Act (LRA) did not give direction to most employers on pre-arbitration. Certain sections in the LRA required the CCMA to use minimal powers.

Access to the Labour Court should be strengthened.

(3) Afrikaanse Handelsinstituut (AHI)

Concerns raised

(a) People did not receive notices on time, which resulted in employers being served with execution orders;

(b) Access to the Skills Development Fund;

(c) Client service process at the CCMA.

Responses by CCMA

(a) The CCMA acknowledged the limitation of resources, and that there is a need to look into intensifying the area of learnerships. A suggestion made was that the office should look into a possibility of utilising the facilities of the DOL.

(b) The servicing of notices differs from the High Court.

(c) The execution of the writ is the same as the process in the High Court.

(4) COSATU

COSATU acknowledged the role played by the DOL and the CCMA.

Concerns raised

(a) COSATU was concerned about processes relating to Labour Court cases, especially farm worker cases.

(b) Casual workers did not benefit from the Basic Conditions of Employment Act.

(c) NEDLAC did not do enough to ensure that skills development was enhanced.

(5) Black Management Forum

Concerns raised

1. Women and the disabled were not represented well.
2. The South African Revenue Services did not do enough to assist people in filling in the tax returns.

(c) Queues in the grants payment pay points were too long.

(6) NAFCOC

NAFCOC acknowledged the DOL for the legislation that was in place.

Concern raised

The DOL had not done enough in driving poverty alleviation programmes.

(7) SACWU

SACWU acknowledged the CCMA for empowering stakeholders through user forums. It was suggested that these forums be extended to other regions.

Concern raised

Only organised bodies benefited from the publicity of laws. There was a need to improve the role of the public broadcaster in order for the information to reach all the people.

Legislators should monitor the implementation of legislation.

(8) CCMA

Concerns raised

(a) Commissioners operated on a stringent budget, while having to deal with many cases.

(b) Grounds for review according to the legislation was very narrow, and was being widened by the Court. This was an area that needed to be tightened.

(c) Bogus trade unions wes a cause for concern. However, the registration of employee organisations needed to be looked at.

(9) Media briefing

The Committee held a media briefing with the SABC at the CCMA offices in the North West Province.

(10) Recommendations

(a) The Committee report should be sent to the DOL and to the two provinces concerned.

(b) The Committee should raise the concerns that arose from the visits with the DOL.