98/99 Budget: presentation by department
DEPARTMENT OF LABOUR
20 APRIL 1998
Overview By Guy Mhone (Chief Director: Labour Policy)


NATIONAL VISION
The vision and objectives of the department are based on the national vision:
democracy
full employment
global competitiveness
economic growth
social justice and human development
equitable society
eliminating inequality and discrimination in the work place
alleviating poverty in employment
the protection and enhancement of worker rights and benefits

VISION OF THE DEPARTMENT OF LABOUR
The department of labour will strive for a labour market which is conducive to economic growth, investment and employment creation and is characterised by rising skills, equity, sound labour relations, respect for employment standards and worker rights.

MISSION
The department of labour will play a significant role in reducing unemployment, poverty and inequality through a set of policies and programmes, developed in consultation with social partners, which are aimed at:
improved economic efficiency and productivity
skills development and employment creation
sound labour relations

DEPARTMENTAL OBJECTIVES
promote economic efficiency and productivity
promote the level of relevant skills in the labour market and prevent the loss of skills
support the creation of opportunities for employment
promote collective bargaining and sound labour relations
promote equity in employment and eliminate workplace discrimination
ensure reasonable wage levels and prevention of exploitation of labour in line with the level of development of the country

THE PRIORITIES OF THE DEPARTMENT
The compensation commission and unemployment commission are not included in this priority list as they operate on a separate budget.

HIGHER PRIORITY SERVICES
Skills development, including entrepreneur development and active labour market policies
prevention and settlement of disputes employment equity
harmonising labour market policies and providing labour market information
promoting collective bargaining
ensure health and safety in employment and adequate care and benefits for occupational illness or injury in employment
ensure efficient and adequate unemployment insurance

MEDIUM PRIORITY SERVICES
productivity improvement
employment standards and health and safety
apprenticeship and testing
services to unorganised labour
international relations
canvassing and placement disabled
career counselling - group and community based

LOWER PRIORITY SERVICES
sheltered employment - work centres for disabled
career counselling - individuals

FINANCIAL MANAGEMENT
By Chris Van Der Merwe (Director Financial Management)

COMPARISON OF BUDGET AND EXPENDITURE IN RESPECT OF 1997/98 FINANCIAL YEAR
[Ed. note: the graph has not been included]

BUDGET COMPARED TO EXPENDITURE: 1997/98 PER PROGRAMME
[Ed. note: the graph has not been included]

COMPARISON OF BUDGET AND EXPENDITURE: 1997/98 PER PROGRAMME.
[Ed. note: the table has not been included]

COMPARISON OF BUDGET AND EXPENDITURE: 1997/98 PER STANDARD ITEM.
[Ed. note: the graph has not been included]

COMPARISON OF BUDGET AND EXPENDITURE: 1997/98 PER STANDARD ITEM.
[Ed. note: the table has not been included]

MAIN FINANCIAL INITIATIVES
monthly expenditure reports monitoring monthly expenditure trends:
- per province
- per programme
monthly financial reporting to departmental management committee.
ongoing initiatives to improve the utilisation of the basic accounting system (bas).
-1996/97 no months closed on the bas
-1997/98 no more than two months not closed at any time
final closing of books for 1997/98 financial year scheduled for 30 April 1998.
training of finance personnel. During the 1997/98 financial
year training was given to 431 personnel by the directorate: financial management

INTERNAL AUDIT
By A V NAIDOO (Deputy Director: Internal Audit)

Legislation
Financial Regulation FI(1)(m), promulgated under section 38(1) of the Exchequer Act, 1975 on 1 November 1996, delegates the Director General to establish an Internal Audit Function and an audit committee to monitor the scope and effectiveness of the internal audit function.

To ensure that the following was complied with:
- The Composition of the Audit Committee was approved on 5 May 1997
- The draft terms of reference for this committee and the audit charter for4he Internal Audit Function was approved at the first audit committee meeting held on 4 November 1997.

Policy
To ensure that the Internal Audit Function is relevant to the needs of the Department a risk based audit approach is being followed.

Emphasis is being placed on value for money and computer auditing.

Staff
The Sub - Directorate has approximately 28 filled posts. Emphasis is being placed on the Development of staff. To ensure that staff are being able to perform effectively a Best Practice(s) Guide is being developed by staff

with the assistance of consultants Staff are being given training on the Audit Methodology.

Audits performed for the year
Audits were carried out in the following areas:
Labour Head Office and Provinces: 18
Unemployment Insurance Fund: Head Office and Provincial Processing Centres: 10
Special Investigations: 5

Audits performed dealt primarily with:
- The review of controls to ensure that all transactions in respect of core Departmental Activities comply with the specific Acts.
- This function further evaluated the reliability of controls over expenditure that is incurred in administration, and is provided for in the Act.
- Value for money audits were performed in respect of the receipting and banking of cash at the unemployment Insurance Fund and the Compensation Fund

PERSONNEL EXPENDITURE
[Ed. note: the table has not been included]

BUDGET PROCESS
By Deon Haasbroek (director: Administration)

strategic plan (1996)
business plans
work plans
budget committee (Sep. 1997)

COMPARISON OF BUDGET AND EXPENDITURE FOR THE LAST THREE FINANCIAL YEARS
[Ed. note: the table has not been included]

PROGRAMMES
1. Administration
2. Occupational health and safety of persons
3. Social insurance
4. Human resources development (including employment services)
5. Labour relations
6. Labour policy
7. Auxiliary and associated services

STRUCTURAL CHANGES
Programme 1
- HRM
- legal services
- communication

CORPORATE SERVICES
Human Resources Management
Administrative Services
- Internal Audit Services
- Financial Management
- Legal Services
- Communication Services
- Information Technology Services
- Provisioning Administration
- Security
- Office Administration
- Parliamentary Services

STRUCTURAL CHANGES
Programme 4
- HRD
- Employment services

Programme 6
- NPI

ALLOCATION PER PROGRAMME
[Ed. note: the table has not been included]

EXPENDITURE PER PROGRAMME
[Ed. note: the graph has not been included]

HUMAN RESOURCES MANAGEMENT
By Vuyi Raseroka (Chief Director: Human Resources Management

STRATEGIC PLANNING UNIT
Three year strategic plan developed and aligned with National Objectives
Provincial and Program, business plans aligned with objectives of the Department
A result oriented management system has been developed on programming, monitoring, evaluation and reporting (PMERS) developed
Bi-monthly reports submitted to continuously monitor progress on execution of plans

ORGANISATION AND WORK STUDY
The Decentralisation process and delegation of powers is in progress to ensure empowerment of provincial offices and labour centres

Restructuring of Labour Centres in progress to ensure
- accessibility of the Labour Centres and integration of work processes. 42 visiting points created (1996-1997)
- provision of single inspection service

Agency function taken over from magistrates to integrate services of the Department

Client orientation strategy has been developed to:
- Identify clients and stakeholders of the Department
- Identify and address client needs
- Ensure effective communication of services provided by the Department
- Ensure the publication of Programmes and Provincial Annual Work Plans with clear performance standards

A video on UI benefits and processes has been developed: Performance Management System of the Department

Performance Standards have already been set on the following:
- Time frames for processing of UI and CC claims/applications
- Time frames for processing of Labour Relations complaints
- Time frames for filling of vacancies, grievance and disciplinary cases and orientation of staff

Policy on performance contracts and job agreements has been finalised

TRAINING AND DEVELOPMENT
Training plans for Senior Managers developed and finalised. 70% of Senior Management trained on strategic management, budgeting and financial management and change management

60% of middle management have been trained on performance management and client orientation

A program on Adult Basic Education being implemented. 98 Employees involved

Bursary and Internship policy developed
400 Bursaries awarded for tertiary education for the period
1996 to 1998

Orientation and re-orientation of senior managers and staff in progress. 540 employees attended orientation programmes

Senior and middle management received re-orientation in 1997. Orientation booklets and manuals developed and distributed

DIVERSITY MANAGEMENT
Workshops conducted to sensitise staff on diversity management issues. 50% of management trained on how to manage diversity

RECRUITMENT AND SELECTION
Recruitment and selection policy, Affirmative Action and Employment Equity Policy

Representivity Profile
Race composition
Black: 3 467 (62%)
White: 2082 (38%)
Total: 5 549 (100%)

Gender composition
Male: 2 509 (45%)
Female: 3 040 (55%)
Total: 5 549 (100%)

SOUND LABOUR RELATIONS
Grievance and Disciplinary Policy developed
Bargaining Council restructured to ensure smooth collective Bargaining Machinery
Recognition Agreement finalised and signed (7 employee organisations)
A training programme for managers, supervisors and employee organisations on labour relations issues in under way

SERVICE BENEFITS
Provides administration services on monitoring leave, housing application, processing of retirement payments and severance packages

Number of employees retired and approved severance packages is as follows:
Retirement Severance Packages
1996 11 10
1997 10 60
1998 04 2