PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR ROLE OF DEL IN THE

PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR ROLE OF DEL IN THE EXPANDED EMPLOMENT MANDATE 1

Presentation outline 1. 2. 3. 4. 5. 6. 7. Background on the new expanded Employment Mandate Employment and Labour definitions Employment and Labour Mandate Employment Context Employment and Labour Interventions Way Forward on Repositioning DEL Conclusion

Background on the reconfiguration of DEL The Department of Employment and Labour has always involve in employment creation, preservation and promotion Since the transfer of Skills Development responsibility from DEL to Department of Higher Education, a Branch called Public Employment Services was created. The was talked with the development of a legislation and the system that will enable the Department to play a meaningful role in employment 3

BACKGROUND ON THE RECONFIGURATION OF DOL TO DEL 29 May 2019, President announces 6th Cabinet Administration and a new Minister and Deputy Minister of Employment and Labour. During the June State of the Nation Address, The President further outlined that the department “will coordinate all government efforts to create jobs and reduce unemployment,” By extension, it meant that “the department will be required to change its approach from policy development, compliance enforcement to facilitating job creation.” This also by extension, brought to the fore (amplification) the importance of the role of Public Employment Services in ensuring that work seekers are registered and placed in employment (its vocational services program) Since that announcement, the Ministry of Employment and Labour engaged with the ILO, Presidency, GTAC and other labour market expects

The vision of the Department The amplification of the employment mandate required a revisit of our vision which is: “ Striving for a labour market conducive to investment, economic growth, employment creation and decent work” 5

Mission of the Department Promote employment and regulate the South African labour market sustainable economic growth through: Appropriate legislation and regulations Inspections and enforcement Protection of workers rights Provision of employment services Promoting equity Provision of social protection and social dialogue 6

2.2. What defines the role of DEL and its entities The Department of Employment and Labour Branches LP & IR, PES, IES and its entities, the Compensation Fund, UIF, the CCMA, Productivity SA, Supported Employment Enterprises and funded NGOs play a collective role in translating the vision into real programs aimed at: Employment creation; Employment preservation; Employment promotion; Employment security; Employment access; Employment retention 7

2.4. SUMMARY OF EMPLOYMENT SERVICES OFFERED BY DEL AND ITS ENTITIES Occupational Health and Safety Registration: Inspection and Enforcement Services Compliance, Monitoring and Enforcement Services. Training of Staff: Inspection and Enforcement Services Statutory and Advocacy Services Work seeker and opportunity registration Employment counselling Matching and Placement Designated PWD work subsidies Migration management Employment policy development Identify outstanding claims and backlogs in the area of service Registration of claims Payment of claims Collection of outstanding documentation Delivery of chronic medications to clients Hand over of health support devices (eg. prosthesis / wheelchairs / hearing aids) Advice to clients Provide information on outstanding claims Identify outstanding claims and backlogs in the area of service Registration of claims Payment of claims Collection of outstanding documentation Advice to clients on maternity benefits and other UIF services Provide information on outstanding claims 8

2.5. SUMMARY OF EMPLOYMENT SERVICES OFFERED BY DEL AND ITS ENTITIES conciliate workplace disputes; arbitrate certain categories of disputes that remain unresolved after conciliation; establish picketing rules; facilitate the establishment of workplace forums and statutory councils; Compile and publish information and statistics about CCMA activities Accredit and consider applications for subsidy by bargaining councils and private agencies Provide support for the Essential Services Committee Strive to promote the goals of economic growth, participation in economic decision making and social equity Seek to reach consensus and conclude agreements on matters pertaining to social and economic policy Consider all proposed labour legislation relating to labour market policy before it is introduced in Parliament Encourage and promote the formulation of coordinated policy on social and economic matters Consider all significant changes to social and economic policy before it is implemented or introduced in Parliament Consider Social Economic Disputes in terms of Section 77 of the Labour Relations Act 9

2.6. SUMMARY OF EMPLOYMENT SERVICES OFFERED BY DEL AND ITS ENTITIES SUPPORTED EMPLOYMENT ENTERPRISES SEE The factories manufactures the following product amongst others Furniture which includes: Office Chairs, Desk, Couches, Boardroom Tables, Filling Cabinets Textiles: Hospital Linen, Doctor’s Coats’ Nurses Uniforms, Patient gowns, Theatre wear, Blankets Metal products are; Safes, Gates, Desks & Chair frames and legs, Trailers, Build-in Braai and Burglar bars Strengthen Civil Society Collective Bargaining Employment Equity Employment Standards Research, Policy and Planning Labour Market Information and Statistics International Labour Matters National Economic Development and Labour Council (NEDLAC) Commission for Conciliation, Mediation and Arbitration (CCMA) 10

3.4. Working with Other Public Sector Employment interventions There are interventions in other Government Departments that DEL must collaborate with: Jobs Fund (DEL/GTAC Pathway Management) Industrial Development Corporation (UIF/PIC Investment with IDC) Employment Tax Incentive Small Enterprise Finance Agency (UIF Investment with IDC) Public Investment Corporation (Job creation interventions Arising from UIF and CF Reserves) The Public Employment Services (LAP,PYEI,EPWP, YES, NARYSEC) 28 11

Examples of public employment programs The legislative mandate for the work of LAP is the following: Section 48(1) of the Unemployment Insurance Act 63 of 2001 (“UI Act”) - the UIF Board may advise the Minister of Employment and Labour on policies for minimising unemployment and the creation of schemes to alleviate the effects of unemployment; Section 18 of the UI Act - Director General may refer UIF beneficiaries for vocational training as a pre-condition to qualify for unemployment benefits. Section 5(d) of the Unemployment Insurance Amendment Act, No.10 of 2016 – the Fund must be used for financing of the retention of contributors in employment and the re-entry of contributors into the labour market and any other scheme aimed at vulnerable workers.’’. 12

Objectives of LAP The objectives of the Labour Activation Programmes are to: o enhance employability of the unemployed – through the training of the unemployed o enable entrepreneurship – through enterprise development o preserve jobs - Temporary employer/employee relief scheme (at CCMA) for distressed companies and business reengineering process or turn-around solutions (at Productivity South Africa) 13

5.6.1. UIF LAP Projects No. 1 2 3 4 4 Category Funding Agreements Contracting Submissions compiled awaiting approval Submissions being finalised 4 Number of Learners 28 468 19 780 Budget over 3 years 4 120 R 440 548 416.00 6 660 59 028 R 367 706 591.05 R 3 131 482 617.38 R 879 484 376.25 R 1 443 743 234.08 14

Industrial Action Report 15

Industrial Action Report The IAR says there were 137 712 workers involved in labour disputes in 2018, close to 11% more than in 2017. South Africa's workers lost an estimated R266-million in wages in 2018 due to strike activities, and during the period work stoppages also reached a highest recording over the past five years. The number of work stoppages increased to 165 in 2018 from 132 in 2017 This represents 25% increase in strikes from the previous year. 16

Industrial Action Report 17

Impact of industrial action 18

5. Employment Interventions Labour Policy & Industrial Relations The published guidelines on the secret balloting for strikes or lockouts in terms of Section 95(9) of the Amended (LRA) 66 of 19953 also came into effect in July 2019. The purpose of these guidelines were simply to give effect to one of the key amendments relating to secret balloting. Currently, the registrar of labour is still in the process of measuring the effectiveness of secret ballots considering the commencement of its process. The Department through CCMA’s intervention has saved more than half of employee’s jobs who were likely to be retrenched from Covid-19 pandemic in April (53%) and November (63%) of 2021. In addition, the Department UIF payments made regarding to Covid-19 TERS are also regarded as other key strategic labour market interventions for employment growth. It has been implemented in line of poverty relief in particular amongst vulnerable economic sectors to sustain employment in the formal and informal sectors. In 2021 from January to July, an access of R1 billion was disbursed across provinces for TERS.

PATHWAY MANAGEMENT NETWORK The department receives additional allocation of R304.9 million in 2022/23 and R372.2 million in 2023/24 for the Pathway Management Network, which is at the centre of the Presidential Youth Employment Intervention comprises of an eco-system manger and an Innovation Fund. The Pathway Management Network will stimulate demand by creating more job opportunities, more effectively supporting increased access to relevant education and training interventions,assisting young people to make choices in terms of access to learning and/or earning based on their current profile and identifying barriers that young people are facing on entry to the labour market thereby informing systemic changes. 20

PATHWAY MANAGEMENT The targets for the eco-system manager is to ensure the active involvement of 360 000 young people in the pathway management network and 660 000 in Y3 with job opportunity targets in year 2 of 90 000 and in year 3 of 165 000. The innovation fund will both enable scale up of the different components of the PMN through the introduction of between 12-15 new partners over the medium term. 21

Major economic hub: 18 178 sq km Population 15 810 388, employed 4 448 000, unemployed 2 607 000 and 37.0% unemployment rate (Jul - Sep 2021) Annual Prov GDP 0.6%. Contribution to SA GDP 34% 4 122 854 Population: 104 882 land area sq km; 35.7 unemployment rate (472 000 unemployed); and 851 000 employed (Jul - Sep 2021). Annual Prov GDP -0.5% contribution to SA GDP 6% Smallest GDP growth & economic contribution with 1 303 047 people, 372 889 sq km, 24.9% unemployment rate (91 000 unemployed) and 275 000 employed (Jul - Sep 2021) Annual Prov GDP -0.6 %. Contrib. to SA GDP 2% Land area: 125 754 sq km; Pop. 5 926 724; 1 145 000 employed and 551 000 unemployed (32.5 % unemployment rate) (Jul - Sep 2021). Annual Prov GDP -0.2% Contribution to SA GDP 7% Population: 4 743 584; land area 76 495 sq km; 37.5% unemployment rate (663 000 unemployed); and 1 104 000 employed (Jul - Sep 2021). Annual Prov GDP -0.4% Contribution to SA GDP 8% Population: 2 932 441 land area 129 825 sq km 38.1 % unemployment rate(443 000 unemployed); and 720 000 employed (Jul - Sep 2021). Annual Prov GDP -0.4%. Contribution to SA GDP 5% 3 rd largest SA economy with 7 113 776 people living in 129 462 sq km, 2 225 000 employed, 26.3% unemployment rate (794 000 unemployed) (Jul - Sep 2021). Annual Prov GDP 0.4%. Contribution to Population: 6 676 590 land area 168 966 sq km; 2 nd largest 47.4% unemployment rate - SA economy with 94 361 sq km, 11 513 575 people, 2 297 000 1 098 000 unemployed); employed and 28.7% unemployment rate (924 and 1 216 000 employed 000 unemployed) (Jul - Sep 2021). Annual Prov GDP 0.1% (Jul - Sep 2021). Annual Prov GDP 0%

JUN JUL AUG SEP OCT NOV DEC YTD Employee likely to be retrenched 3 856 4 944 1 261 2 859 4 094 5 624 2 946 4 174 1 895 31 653 Job saved 1 384 2 558 1 280 2 622 381 13 858 2 032 1 774 Total retrenchments 1 643 2 878 Percentage (%) 53 36 431 1 396 825 1 416 34 49 2 602 3 032 1 649 1 530 34 45 43 63 1 187 16 762 20 44 Number APR MAY 35000 70 30000 60 25000 50 20000 40 15000 30 10000 20 5000 10 0 APR MAY JUN Employee likely to be retrenched JUL AUG SEP Job saved OCT NOV DEC Total retrenchments YTD 0 Percentage Percentage 5.1. CCMA National Job Saving Interventions

5.2. NEDLAC ERRP Achievements and impact of Phase One of the Presidential Employment Stimulus 319,482 young school assistants placed at over 22,000 schools Over 30,000 people in the creative industries supported to create new work. Over 25,000 people employed in environmental programmes 10,245 people employed to maintain rural roads. Production input vouchers 56,149 subsistence farmers Incentives created 10,499 jobs in global business services. Phase One Highlights October 2020 – June 2021 Over 518,000 people supported. Phase 2 just launched. 84% youth 66% women Unprecedented speed and scale of rollout

5.3. PES WORK SEEKERS REGISTERED, EMPLOYMENT COUNSELLING, OPPORTUNITIES AND PLACEMENT BY PROVINCE Findings Total number of work-seekers registered, employment counselling, opportunities registered and placement in Q3 is as follows: 50000 45000 40000 – – 35000 30000 25000 20000 15000 10000 5000 0 EC FS GP KZN LP MP NC NW WC – 197 198 work seekers registered, 209 487 work seekers provided with employment counselling, 105 914 opportunities registered, – 48 638 work seekers placed in opportunities . Opportunity rate against work seekers registered is 54%. Placement rate against work seekers registered is 25%, Placement rate against registered opportunities is 46% Provincial break downs are depicted in the graph. Online 25

5.4. PES SUBSIDY SCHEME FOR WORKSHOPS FOR PEOPLE WITH DISABILITIES Subsidies provided to workers with Disabilities employed in the NGOs QPR 3 PAYMENTS 1 .DREAMHOUSE WORKSHOP 2. JOHANNESBURG SOCI ETY FOR THE BLI ND R R 3. KWAZULU-NATAL SOCI ETY FOR THE BLI ND 4. I TEKENG DI SABLED CENTRE 5. CAPE MENTAL HEALTH 6. CAPE TOWN SOCI ETY FOR THE BLI ND 7. PI ETERMARI TZBURG MENTAL HEALTH 8. KWAZULU-NATAL BLI ND AND DEAF 9. I NSTI TUTE FOR THE BLI ND: KALEI DOSCOPE SA 10. EMPLOYMENT SOLUTI ONS FOR PEOPLE WI TH DI SABI LI TI ES TOTAL TOTAL BENEFI CI ARI ES RECEI VED SUBSI DY 118 100.00 COMMENTS 58 Pa ym e n t fo r QPR 3 & 4 ha s be e n put on h o l d , u n ti l i n ve s ti ga ti o n h a s b e e n co mp l e te d o f a l l e ge d fra u d e l a n t a cti vi ti e s - R 74 100.00 44 R R 601 600.00 698 600.00 110 130 R 649 400.00 45 R 1 077 600.00 216 R 338 600.00 54 R 795 600.00 151 R R 193 100.00 4 546 700.00 125 933 26

5.5. SEE Provision of work to PWDs PWDs additional work Terminations as at PWDs as at opportunities as at 31/12/2021 Province Factory 30/09/2021 31/12/2021 Total Free State Bloemfontein 58 58 0 0 Durban 77 77 0 0 KZN Pietermaritzburg 64 63 0 1 termination East London 69 69 0 0 Eastern Cape Port Elizabeth 69 71 2 0 Northern cape Kimberley 68 68 0 0 Ndabeni 148 152 4 0 Western cape Epping 113 113 0 0 North West Potchefstroom 41 39 0 2 retirement Limpopo Seshego 35 35 0 0 Pretoria 102 101 0 1 termination Gauteng Rand 105 108 4 1 retirement Springfield 75 70 0 5 termination TOTAL 1024 10 10 1024

5.5.1.SEE EMPLOYMENT EQUITY PROFILE PROVINCE Free State FACTORY Bloemfontein Durban KZN Pietermaritzburg East London Eastern Cape Port Elizabeth Northern cape Kimberley Ndabeni Western cape Epping North West Potchefstroom Limpopo Seshego Pretoria Gauteng Rand Springfield TOTAL AFRICAN 32 37 39 43 30 30 41 47 24 35 65 61 38 RACE COLOURED INDIAN 0 0 4 6 2 4 8 1 16 1 28 1 46 0 61 1 5 0 0 0 2 0 14 0 13 0 GENDER WHITE FEMALE MALE 26 23 35 30 21 56 18 26 37 17 24 45 24 31 40 9 24 44 65 62 90 4 32 81 10 18 21 0 20 15 34 39 62 33 66 42 19 20 50 TOTAL 58 77 63 69 71 68 152 113 39 35 101 108 70 1024

5.5.2. SEE QPR 3 EMPLOYMENT PERFORMANCE OUTPUT INDICATOR PLANNED ACTUAL ACHIEVEMENT TARGET REASON FOR VARIANCES REMEDIAL ACTION 10 PWD employed None N/A % annual increase of sales 3.75% revenue from goods and services by the end of March 90.43% increase in revenue from goods compared to prior quarter. Additional order received from WCDH and increased production output. N/A Number of customer agreements entered into annually 5 customer agreements entered into None by the end of December 2021 Priority: Economic Transformation and Job Creation Purpose: Provide work opportunities for People with Disabilities Number of additional persons with disabilities employed in the SEE factories by the end of March 10 24 N/A

5.6. UIF Labour Activation Projects A total of 26 projects were recommended for implementation One requested to withdraw leaving 25 for implementation with a duration raging from 12 months to 36 months in duration. Sectors covered by the projects include Agriculture, Construction, Hospitality, Enterprise Development, ICT, Retail, Security, Water and Sanitation. The Department’s approach towards funding of projects is that there must be guaranteed employment or enterprise development. One of the projects already resulted in the employment of over 14 000 participants. 30

5.7. COMPENSATION FUND EMPLOYMENT INTERVENTIONS ORTHOTICS AND PROSTHETICS YTD number of request for assistive devices vs approved: Target is 85% of requests for assistive devices approved within 15 days CUMULATIVE ASSISTIVE DEVICE 2021-2022 Province EC FS Received 59 Total Achieved 57 Total Achievement 97% Achieved within 15 working days 55 APPROVED ASSISTIVE DEVICE TO DATE Q3/JAN-2022 Province Achievement within 15 working days 93% EC LP MP NC NW WC 78 76 97% 75 96% 313 292 93% 285 91% KZN 202 198 98% 192 95% LP 90 86 95% 85 94% 114 113 99% 102 89% Total 2024-02-26 100% 24 96% 79 74 94% 74 94% NW 120 117 98% 116 97% WC 96 Total 1008 80 25 319 131 215 104 93 35 118 52 25 13 83 40 120 41 1113 504 NC 25 1038 Approved 25 MP 25 1080 Received 59 FS GP GP KZN YTD Number Request for Assistive devices requested vs approved (as per the KPI) to date: 93% 31

5.7.1. VOCATIONAL REHABILITATION Vocational Rehabilitation for CF Pensioners: YTD Number of learners funded annually at Post School Education and training institutions (Continuing Students) Target:366 and Achievement: 318 Out of 411 continuing students, 316 student's fees have been paid to date. YTD Number of learners funded annually at Post School Education and training institutions (New Students) Annual Target: 779 and Achievement: 526 The finalising of the payments for the 2021 Academic year is at the advanced stage. It is anticipated that the payments will be wrapped up in February 2022. The release of the student results and registration of students is not impacted. The Directorate continue to attend and resolve queries from students. YTD Number of Persons with Disabilities funded for Vocational Rehabilitation Programme (Continuing Students) Annual Target: 53 and Achievement: 100% YTD Number of Persons with Disabilities funded for Vocational Rehabilitation Programme (New) Annual Target:200 and Achievement: 41 24 CF Pensioners & PWDs contracted and awarded bursaries, and below is their status YTD Percentage of vocationally rehabilitated Persons with Disabilities returned to work/self-employed/Placed (AOP) Annual Target: 3% and Achievement: 84% Placement Status of readily available COID PWDs talent. It must be noted that all the placements besides self-employment are on a contractual basis. 2024-02-26 32

5.7.2. VOCATIONAL REHABILITATION Challenges Indicator Impacted Inherent issues: Accidents, Psychosocial, deteriorating health, physical wear and tear injuries, reasonable accommodation, accessibility Number of Persons with COID Persons Disabilities funded for Disabilities Vocational Rehabilitation Programme Unemployed Graduates Percentage of continuing students for Clients Youth Proposed Mitigation with Extensive recruitment from 1 February to 15 March Support the COID PWDs who are undecided or have not identified the programme of their choice or struggling to access the training institutions. Identify potential employers and send through letters notifying them about the available graduates for placement Action For Noting For Noting whom funding is provided monitored for academic progression 2024-02-26 33

5.8. PRODUCTIVITY SA EMPLOYMENT INTERVENTIONS Annual Planned Indicators Quarter 3 Planned Indicators Achieved Not Achieved Quarter 3 Aggregate Performan ce Strengthen the institutional capacity of Productivity SA to deliver on its mandate and be financially sustainable (CS & HRM) 3 1 1 0 100% To support government programmes aimed at sustainable employment and income growth (CIS) 2 2 2 0 100% To support enterprises facing economic distress and initiatives aimed at preventing job losses (BT&R) 3 3 1 2 33% 2 - - - - Strategic Objective 1. 2. 3. 4. Generation and dissemination of productivity related research and statistics (RIS) 5. To promote a culture of productivity and competitiveness in the workplace and community life (CIS & CR) 2 2 2 0 100% Overall Performance 12 8 6 2 75% 34

6. Way Forward in Repositioning DEL 1. Expand/leverage the existing employment dimensions of the Department: This include: 1.1. Improved coordination of DEL entities to maximize impact on employment interventions (PES, CCMA, UIF, Compensation Fund and Productivity SA and SEE); 1.2. Building on and expand existing SEE factories to generate increased employment; and increase subsidies to NGOs and People with Disabilities to increase uptake. 1.3. Revitalizing and expanding programs designed to preserve jobs, specifically the Labour Activation, Workplace Challenge, distressed sector funding and temporary employment and relief scheme, WAPU. 1.4. Maintaining standards, mediate and resolve emerging disputes and enforce compliance in identified sectors 1.5. Regular labour market research and Review to certain aspects of existing legislation. 1.6. Introduce organizational adjustments and fill positions where the need arise 35

6.1. Repositioning DEL . 2. Strengthen the role of Nedlac to facilitate greater business, labour; community, key government departments participation national strategic interventions such as: - Job Summit Resolutions - Economic Rapid Recovery Plans (ERRP) - Employment Temporary Relief and Long Term measures, - Social Compact 3. Re-asset the DEL and Presidential Program Management Office (PMO) Roles in coordinating youth employment programmes across government. - Provision of comprehensive services to young people - Mobilizing and overseeing resources used toward the Presidential Youth Employment Initiative 36

6.2. Policy and Legislative adjustments Engage ILO/GTAC to assist in conceptualizing the ‘End State’ for DEL and entities drawing on best international practices in the following: - Development of a New National Employment Policy to provide an overarching framework and direction - National Labour Migration Policy to improve migration management coordination, data management, address citizens concerns especially at low and medium skill levels, scarce and critical skills needed by the economy and citizens in dispora. - Introduce legislative amendments to strengthen the existing Employment Services Act. - Review existing legislation on impact to Small Business, New Platform Workers and those in the informal sectors 37

6.3.1. Draft NEP Vision 01 02 Achievement of 22.2 million jobs in the South African economy by 2030. At an unemployment rate of 24%, a labour force participation rate of 65% and 35% levels of economic inactivity and discouragement as a proportion of the workforce . SECRETE 03 This level of aggregate employment would require the creation of 7.257 jobs between the second quarter of 2021 and 2030. Or alternatively, a 35.4% rise in employment growth between 2020 and 2030, compared to a 16.2% rise in the working age population. 38

6.3.2. Proposed National Employment (NEP) Policy Vision NEP Policy vision Serves as coordinated policy response that aims to influence employment in the context of unprecedented technological, structural and social change. The need for an overarching and coherent policy framework that marshals the actions of all economic actors behind the goal of creating more and better employment for all South Africans with a vision to realize NEP Policy Vision 01 An inclusive employment growth trajectory. Harmonious and coordinated implementation of all policy activities and plans across government with direct and indirect bearing on employment creation. NEP Policy Vision 02 Promotion and encouragement of gender equality, structural transformation, and the defeat of discrimination in the work place. Work place training, skills development, and continuous learning that responds to shifts in key work processes. NEP Policy Vision 03 Improving and strengthening the South African labour market information systems (LMIS) framework. Improving and widening the access that workers and work-seekers have to basic floor of social protections smoothing the consumption and other shocks experienced by workers, firms and households in times of economic distress NEP Policy Vision 04 Strengthening the social dialogue in the workplace, and social dialogue institutions that bring together workers, employers, communities, and government. 39

6.3.3. Proposed NEP Policy Objectives A demand-led pro-employment macroeconomic policy framework Critical Actions in pursuit of the Vision 2030 The NEP objectives reflected in the focus of policy actions and interventions, and which are critical ‘actions’ in pursuit of the vision of 28 million jobs by 2030. Vision 2030 28 Million jobs Demand-led macro economic policy A vibrant & labour demandresponsive skills framework Employment centred macro economic policies Employment centred micro-economic (industrial, trade and social) policies enabling employment intensive investment A demand –led pro-employment macroeconomic policy framework promoting sustained and inclusive growth, full and productive employment, and decent work for all Employment intensive investment Vibrant & labour demandresponsive skills framework Accessible Support Ecosystem Accessible support ecosystem that promotes sustainable enterprise development and positive regulation of the informal economy to support: Self-employment The development of SMMEs, co-operatives and other social economy organizations Support ecosystem Confront household poverty Stakeholder Framework A vibrant and labour demand-responsive skills and educational framework with focus on the Future of Work and multiple and diverse pathways to learning, training and earning. Extension of social protection mechanisms Extension of social protection mechanisms to workers hitherto uncovered to improve coverage, confront household poverty and smooth the consumption shocks of economic crises. Intergovernmental and stakeholder co-ordination framework Development of an aligned and coherent intergovernmental and stakeholder coordination framework that ensures harmonized implementation across the co-operative governance framework 40

6.4. Sub-theme on National Labour Migration Policy Policy alignment in NLMP – e.g., with NEP’s section on (immigration, its labour market context and impact – – – – Migrant workers are more likely to be employed than South Africans; Are disproportionally represented in certain sectors; Are increasingly working in the informal economy; But are also more likely to be employed in an environment of precarity and vulnerability. They have poor access to decent work; – Empirical evidence on whether they displaced locals in employment varies Broader context of rising unemployment and informal employment in SA, and of skills shortages and skills mismatch South Africans to be prioritised in key sectors, but all workers should enjoy minimum protection re wages and work conditions 41

6.4.1. Rationale for NLMP South Africa’s labour migration policy should achieve a balance between – – SA population expectations regarding accessibility to work for South Africans, given worsening unemployment and a perception that (undocumented) foreigners are distorting labour market access – South Africa’s labour market needs, in particular the need for critical skills not locally available – The protection of migrant workers and their families, in accordance with international standards and guidelines – Regional integration and cooperation imperatives Modern-day approach: Harness the developmental potential of migration 42

Rationale for NLMP . Agreement at SADC level to develop labour migration policies – Eswatini, Lesotho, Namibia, Seychelles and Zimbabwe have already done so Need for guidance to DEL, DHA and other government departments Need to address insufficient and absent policy frameworks, e.g., concerning recruitment, data requirements, labour migration to and from South Africa Need to inform appropriate legislative framework (to accompany the Policy), serving as a mandate for State interventions Need to inform the reconsideration of the current bilateral labour agreements 43

6.4.2. Migration context Racially-oriented policy framework informed responses to labour migration in the previous political dispensation Migrants constitute about 4% of the population and 7% of the labour force Especially since 2000, the influx largely of undocumented migrant workers has increased dramatically in an ever-expanding range of sectors Migrants are in particular concentred in informal sector – a worrying trend Several legal and policy responses have been developed – e.g., the Immigration Act, Refugees Act, White Paper on International Migration; special dispensation (regularisation) regimes 44

6.4.3. Consultation Road map Action Responsible Entity Timeframe 1. Presentation of the final draft NLMP and proposed Amendments to the Employment Services Act (the Bill) to give effect to the policy to the Social partners ES Board April 2021 2. Presentation of the final draft NLMP and proposed Amendments to the Employment Services Act (the Bill) to give effect to the policy to relevant Ministers for sign off DEL, DHA May 2021 IMCM May 2021 DEL, Presidency August 2021 DEL OSLA August/September 2021 6. Undertake Government cluster consultations DG DEL October 2021 7 Presentation to Cabinet committee/Cabinet Minister November 2021 DEL Dec 2021 – Mid February 2022 End Feb 2022 DEL End Feb 2022 Minister March 2022 DEL April 2022 3. Securing internal government support of the Policy and Bill through the Inter-Ministerial Committee on Migration 4. Conduct socio economic impact assessment system on the policy 5. Interact with state law advisors to secure pre-certification on the Bill 8 Undertake Public and NEDLAC social partners consultation 9. Consolidation of comments and adjustment of the Policy and the Bill accordingly and submit same again to Cabinet in the event of fundamental changes 10. Consolidation of comments and adjustment of the Policy and the Bill accordingly and submit same again to Cabinet in the event of fundamental changes 11. Table the final adjusted Policy and Bill to CABINET 12. Referral of NEDLAC report and adjusted Policy and Bill to Parliament for consideration 45

6.5. Adjustment to the existing Organisational structure and Entities As we conclude a major Policy e.g NEP or NLMP, DEL will introduce Pilot projects, capacity building Initiatives on new roles and functions, Systems development and changes to the DEL Organisational structure in line ILO/GTAC recommendations, internal and Public Sector Collective Bargaining Agreements and Regulations The ILO conducted extensive reviews and undertook DEL comparisons with similar Departments like DEL in the EU, Asia, America etc, and are proposing a number of adjustments that we are currently considering. It is our view that that these significant shift in government policies and programmes will align the Department more towards assisting the country to achieve its National Development Plan 2030 Vision. 46

Thank You 47