Report of the Portfolio Committee on Labour on Budget Vote 15: Labour and the Strategic Plan of the Department of Labour and its public entities dated 17 June 2009:

1. Department of Labour

The Portfolio Committee on Labour, having considered Budget Vote 15 and the Strategic Plan of the Department of Labour and its public entities, reports that it accepts the budget vote; but wishes to raise the following concerns:

· Although the Strategic Plan of the Department does not specify how the Department plans to contribute towards the achievement of the 500 000 job creation target as mentioned by the President of the Country in his State of the Nation Address, the Department should give details of how it actually intends to contribute to the creation of jobs e.g. casualization, labour brokers through its agencies and other departments

· There should be increased cooperation between the departments on various projects that are meant to address unemployment

2. Public Entities

The Committee also considered the strategic plans of the following public entities: Compensation Fund, Unemployment Insurance Fund (UIF), Umsobomvu/National Youth Development Agency (NYDA), National Economic Development and Labour (NEDLAC), Commission for Conciliation, Mediation and Arbitration (CCMA) and Productivity South Africa. With regard to Compensation Fund and NEDLAC, the Committee wishes to raise the following concerns:

2.1 Compensation Fund

· Whilst acknowledging the Fund’s efforts to address existing systemic challenges, there is a concern with the number of individuals who continue not to receive their payments due to delays

· There is concern around the Fund’s non-capacity to track claimants

· Whereas the Fund has developed strategic interventions to address challenges within the organisation, there are recurring problems over previous financial years and the unspecified time-frames on the strategic objectives

· The current strategic plan does not specify how the fund is planning to improve on delays in payments and also to improve on the current process of assessment

· The report by the commissioner on their excellent improvement on technology should not contribute to unemployment

2.2 NEDLAC

There is no formal arrangement between Parliament and NEDLAC with regard to tabling of bills in Parliament.

3. Conclusion

The Committee agreed that a meeting would be arranged between all the affected departments to discuss ways of cooperation on the issue of job creation.

The Committee further agreed that it would invite all the relevant public entities to brief it on the issue of funding.

4. Resolution

The Committee resolved that the Department should go back and restructure its strategic plan so that it reflects issues raised by the President in his State of the Nation Address. However, the Committee expects the Minister of Labour to give a clear direction as to what the role of the Department will be.

Report to be considered.