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Minister Kader Asmal
Minister Ngconde Balfour
Media representatives
Ladies and gentlemen.

THE ANC GOVERNMENT IS COMMITTED TO PEOPLE'S CONTRACT TO CREATE WEALTH AND FIGHT POVERTY

The people's contract for creation of work and alleviation of poverty builds on many of our achievements over the past ten years.

Due to deliberate exclusion of the majority of South Africans from access to decent education, the African National Congress government has made a concerted effort to skill South Africans. In order to address the skills needs of our people, we have passed laws ensuring that all social partners make a contribution to skills revolution.

The skills revolution is on track and gaining momentum, the benefits of the Skills Development Amendment Act - making sector education and training authorities (SETAs) more accountable to the Minister - are already being felt.

The fundamental centrality of skills development to economic growth and job creation was re-emphasised at the Growth and Development Summit (GDS), where targets were set. These targets, such as 72 000 young, unemployed people in learnerships by May 2004, complement those already set out in the National Skills Development Strategy.

A total of 45 898 young, previously unemployed people are in structured, workplace skills development programmes. The figure gives a deficit of just over 25 000 towards the GDS target.

Other targets set in the National Skills Development Strategy have been surpassed and focus for this year is defining a new strategy to come into effect in 2005.

At the level of Service Delivery on Skills Development by the department our focus was also on the promotion of skills for employability and sustainable livelihoods.

The Social Development Funding Window (SDFW) of National Skills Fund was used to train unemployed people to gain access to income generating opportunities. In the past year R172 195 606 was spent in training 117 392 unemployed people. A study that was done on placement within this reporting period indicates that 78% of trainees were placed in income generating opportunities.

Of the SDFW budget, we allocated R77 270 978 to poverty alleviation projects, which benefited about 23 670 people mainly rural women and youth.

To further enhance our drive to use SDFW to reduce poverty we identify and establish partnerships with the provincial and local economic development initiatives, thus linking our Provincial Skills Development Plans with these local initiatives. Examples of these partnerships are Working for Water project where the Department of Labour handles the skills development part. Another example at a local level is OR Tambo District Municipality partnership with the Department of Labour where R8 million has been allocated, targeting skills development in line with their IDP. This approach is relatively new but it has started to show the benefits of integrated planning and implementation.

Another key element of this is inspection and enforcement.

Proactive, reactive and blitz inspections were and are being conducted throughout the country, with an emphasis on the two "Es" namely Educate and Enforce.

Inspector visibility coupled with advocacy has increased awareness remarkably. The blitz innovation has improved inspector productivity beyond the set standard. Currently in average one inspector conducts 8,5 inspections per week. The number of inspections increased from 51 751 to 87 815 in 2002/3 financial year.

Between May 2003 and February 2004 we targeted agriculture, domestic and construction. This month will see a focus on the wholesale and retail sectors. Each month intensive advocacy work is followed by a month of national blitz inspections. In this campaign a total of 14 507 inspections were conducted. This figure excludes reactive inspections and other areas of focus.

In the agricultural sector compliance levels to the sectoral determination ranged from 65 to 90 percent in different parts of the country.

A total of 10 610 inspections were conducted on domestic worker sector during August. This was truly rewarding, as we experienced high levels of compliance - which can largely be attributed to the process of implementation, from consultations at the beginning to the advocacy work preceding the inspections. Domestic employers proved to be the friendliest sector to inspect. This is attributed to advocacy work that preceded the inspections. This experience in the domestic sector may be generalised for use in other sectors where possible.

The construction sector with its huge accident rates and in many instances a complete disregard for occupational health and safety (OHS), was not as rewarding but the department is making strides in ensuring that all workers, particularly those in this sector, enjoy safer conditions. During the 747 inspections over 1 100 contravention notices were issued and 175 prohibition notices issued.

These activities of inspection and enforcement are set to intensify, but I must emphasise that it is only the most recalcitrant of employers that need to fear the inspectors. Those reasonable bosses that are willing to enter into peoples contract with workers and government can expect our inspectors to assist with the implementation of labour legislation.

To ensure further effective implementation in addition to the existing 124 labour centres five more labour centres and 37 satellite offices will be initiated.

Other plans for the immediate future include:

• IES activities to be intensified and to focus on sectors such as wholesale and retail, and issues such as noise-induced hearing loss in the workplace.
• The intensification of learnership campaign, with a massive drive on the part of government, employers, workers and Setas to ensure that our GDS targets are met.
• To give annual increment to wholesale and retail as well as farm workers.
• The rollout of the lead employer pilot project, where the administrative burden of taking on learners is removed from small and medium enterprises. This project is a precursor to the introduction of the Employment and Skills Development Agencies (Esdas).
• The promulgation of a Sectoral Determination for Children in the Performing Arts.
• The final elements of the Sectoral Determination for the Taxi Sector are being knocked into shape and the determination should be ready for implementation at the beginning of the new administration after the election.

Issued: by Ministry of Labour
10 February 2004