Minister Nomakhosazana Meth: Employment and Labour Dept Budget Vote 2024/25

Department of Employment and Labour Budget Vote 31 speech by  Minister Nomakhosazana Meth, 11 July 2024

Honourable Chairperson
Ministers and Deputy Ministers present
Members of the Portfolio Committee on Employment and Labour
The Acting Director-General and Senior Managers of the 
Department of Employment and Labour, and its entities
Ladies and gentlemen

As we take up this very important task and the baton of the 07th
Administration, it is my honor and pleasure to present to this House, 
Budget Vote 31 for the Department. Having just taken office, the Deputy 
Ministers and I, have hit the ground running to ensure continuity and 
service delivery, in partnership with our stakeholders we will ensure that 
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the important work of the department is on a path to improvement, focus 
is given to strategic and operational deliverables. It is against the above 
background that we participate in this budget vote debate, to increase 
social ownership of the budget and enhance the effective allocation of 
funds.

We are still faced with the mammoth task of ensuring that we move in 
earnest, continuing to usher in not only hope to our citizens, but 
substantive positive change in their lives. We are still struggling with the 
triple challenges of poverty, high unemployment, and inequality. 
Unemployment in the context of our country is structural, deep-seated,
systemic and stubborn. That is why agencies such as Statistics SA
continue to share disturbing data with us all. In its first quarter report of 
2024, the working-age population expanded marginally, yet 
unemployment rose, pushing our national unemployment rate to 32.9%. 
It is my considered view Honourable members, that sustainable solution 
for such a crisis, cannot come from one department, even from 
government alone, as it is a societal challenge that requires a collective 
approach. We plan to lead the department in upping the ante, pertaining 
to coordination work of all job creation initiatives, interventions and 
innovation, that are found in various departments, spheres of 
government and public agencies. It is also in our plans to raise the 
stakes when it comes to collaboration, partnerships, networks within the 
state, traditional leadership and the private sector. 
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As we embark on our term of office, the department strives to meet its 
mandate of improving economic efficiency, facilitating decent 
employment creation and providing adequate social security and safety 
for vulnerable workers in our country. 
As South Africa celebrates 30 Years of Freedom and Democracy, it is 
important to note that the Department over this period, has made great 
strides and contributed significantly to the upliftment of workers in the 
country towards the achievement of decent work, including through 
formalising a living wage, enhancing social partnerships through 
defined structures, and promulgating legislation for the work 
environment to be a safer workspace. In commemorating this 
milestone, the department and its entities conducted numerous service 
delivery events and campaigns, high impact inspections, advocacy and 
awareness sessions, combined with jobs and careers fairs in all 
provinces.

The highlight of this commemoration was the inaugural Elijah Barayi 
Lecture held in May 2024, to celebrate the life and times of the iconic 
activist in the fight for justice, equality, and democracy, which was led
by President Ramaphosa. Let me take this opportunity to salute my 
predecessor, former Minister TW Nxesi and previous Ministers in this 
department since 1994, as they laid a good foundation for our work.
On Social Justice
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Through the unrelenting interventions by the department for 
workers, who were affected by mercury exposure in Cato Ridge
dating back to the 80s, they finally got justice as the Thor 
Chemicals, officially committed to compensating the workers or 
their next of kin. I hail the work that was done by my department 
in partnership with all the stakeholders in this regard. 
The Inspectorate recovered R254 million from non-compliant 
employers. Over R120 million thereof, was money that was 
recovered on behalf of vulnerable workers. The balance, R134 million
was money recovered from companies, who failed to pay their dues to 
UIF and CF. Honourable members, non-compliant companies must 
watch out, our inspectors will be hard at work.
I have received a submission about the plight of ex-mine workers
presenting a case for my consideration. As a matter of priority, I will 
engage all the stakeholders towards resolution of the matters raised. 
On Employment

In our efforts of employment creation and supporting former 
contributors of the Unemployment Insurance Fund (UIF) to get back to 
the labour market, the budget which was set aside by UIF for the Labour 
Activation Programme (LAP) in the 2022-2023 financial year, was R3.1 
billion and R3.2 billion in 2023-2024 respectively.
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The 06th Administration announced and launched plans to further 
strengthen measures to mitigate unemployment in the country through 
our UIF - LAP - Training for Employment and Entrepreneurship 
programme. UIF allocated nationally an amount of R23.8 billion 
eventually, targeting over 2 million unemployed beneficiaries. 
Phase one targets 333 recommended projects provide training, small 
enterprise support and employment opportunities to 704,000 
unemployed people. These multi-year opportunities will continue to 
run between 12 and 36 months.

In the 2024-2025 financial year, the UIF through the LAP intends to:

1. Recruit 360 000 unemployed people into skills development and 
employability enhancement programmes that will guarantee their 
employment at the end of their training period. This total, when 
achieved, will bring the overall number of people recruited and 
trained to 1 640 000 in the Medium Term Expenditure Framework 
(MTEF) period.

2. Ensure that 50% of all training opportunities and subsequent 
employment goes to women and youth.

3. Monitor the implementation and performance of funded Labour 
Activation projects intended to build skills, enable economic 
participation, and alleviate unemployment.

4. Provide monetary and non-monetary support to business 
enterprises through a variety of interventions such as the 
Temporary Employer Employee Relief Scheme (TERS)

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administered through the CCMA, and Business Turnaround & 
Recovery implemented through Productivity South Africa. This 
support will result in increased productivity of business enterprises 
and the preservation of jobs and livelihoods. Productivity SA and 
the CCMA will continue to save jobs in companies that are facing 
economic distress, utilizing an allocated R413 million.
On the mandate of employment, the department will continue on the 
work done by the 06th Admin, focusing on the coordination, in line with 
the Intergovernmental Relations (IGR) Framework Act of 2005. We will 
build on interventions started by the strengthening efforts,
through the work stream on employment in the Presidents 
engagements with business and the Inter-Ministerial Committees 
on Employment, Skills Massification and Job Creation. This will be 
carried out through the following programmes:
- UIF Labour Activation Programme (LAP), R23.8 billion
- National Pathway Management Network (NPMN) and Innovation 
Fund, R230 million
- Jobs and Career Fairs, R33 million.
The 07th Administration will strengthen the coordination of the 
employment mandate, programmes and put together a strategic 
framework by establishing an IGR unit.
It must be noted that across the department, there is a limited capacity 
and capability, affecting the overall performance of the UIF and CF. 
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Enhancing these areas department-wide is crucial for improving 
efficiency and service delivery. Following the architecture review and 
diagnostic report on the fit for purpose assessment of the CF and 
the UIF, re-imagining a citizen led service transformation of the funds, 
presented to the 06th Parliament, the department, in our effort of 
strengthening the UIF and CF, is implementing the diagnostic 
assessment report and its recommendations. This will be focusing 
on stabilising, modernising, and repurposing the UIF and CF. Key areas 
of intervention have largely been focusing on stabilising the funds on 
critical areas that are customer facing for immediate and impactful 
results.
Employment creation for persons with disabilities
We have conducted a successful scheme in the past three years,
wherein, we funded 09 national organisations involved in the promotion 
of 1 041 employment of persons with disabilities. The Department 
has allocated R21 million to extend this scheme to all provinces and 
we will prefer new applicants in this regard.
The department has allocated an additional R184 million towards our 
13 Supported Employment Enterprises (SEE). These enterprises
currently employ 1 056 persons with disabilities. The SEE will also 
appoint an additional 150 people in the new financial year. 
Improved ESSA system 
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The department has just completed the quality assurance environment 
for the system. The newly revamped Employment Services of South 
Africa system (ESSA) can be accessed by walk-ins at our 126 Labour 
Centres, 441 visiting points, 14 mobile units, and remotely. 
Counselling Services to work seekers
On the 1st of August 2024, I will unveil a youth deployment project. 
This project will be employing 335 young people over an 8 months’ 
period, to assist in the provision of career counselling services at our 
service points across the country. 
REBRANDING AND REPOSITIONING OF INSPECTION AND 
ENFORCEMENT SERVICE (IES)

The rebranding and repositioning of the inspectorate remains a priority. 
As part of digitalisation and modernising the department, we have also 
seen global innovations, which we intend rolling out, through the use of 
drones, sensors, and wearable technology.
Recently, the department launched an Occupational Health and 
Hygiene laboratory. This is a game changer, to provide evidence 
based advice to employers, especially in the informal economy, where 
they do not afford to pay for Approved Inspection Authorities (AIAs). 
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International Labour Organisation (ILO) Recommendation 204 
(R204)
The ILO Recommendation R204, focuses on the transition from the 
informal to the formal economy. To give effect to the Recommendation 
R204, the department has initiated research based inspections in 
informal sectors. These interventions are meant to educate the informal 
economy on employment law. 
Building collapse investigation
34 lives were lost in the recent building collapse in George,
Western Cape on the 6th May 2024. We are currently busy with 
Section 31 investigation, the outcome of which will inform the way 
forward. We intend to leave no stone unturned, in getting to the 
bottom of this matter and welcome involvement from all relevant 
stakeholders.

LABOUR POLICY AND INDUSTRIAL RELATIONS (LP & IR) 
PROMOTING EQUITY IN THE LABOUR MARKET
Notable, is the release of the 24th Annual CEE Report and the Public 
Register. This Annual Report reminds us that as we celebrate 30 years 
into democracy and 26 years since the inception of the Employment 
Equity Act, 1998 (EEA), we should not forget that there are persisting 
remnants of discriminatory practices and inequalities that still need to 
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be addressed. It is against these disturbing trends of the slow pace of 
transformation, that the EE Amendment Act of 2022 was assented into 
law in April 2023, as a critical urgent policy imperative and a gamechanger in ensuring that the economic empowerment and the inclusion 
of the majority of our people in the labour market and the economy as 
a whole.
Employment Policy and National Labour Migration Policy
The Department has developed a National Labour Migration Policy, as 
per the resolutions of the Ministers of Employment and Labour in the 
SADC region. We will also approach Cabinet during September 
2024, to consider and approve the National Labour Migration 
Policy and the Draft Employment Services Amendment Bill for 
Parliament consideration. The policy aims to regulate and set limits 
on the number of foreign nationals that can be employed in our country. 
National Employment Policy

I intend to table the Draft National Employment Policy (NEP) to Cabinet 
to seek approval to commence with the public consultations process. 
PROMOTING SOUND LABOUR RELATIONS
Collective bargaining remains a better way to regulate wages and 
conditions of service. As a result, through the extension to non-parties,
lives of vulnerable workers previously excluded by collective 
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agreements, improved. For 2023/24, the Department had extended 
24 collective agreements to non-parties covering wages, 
conditions of services, and social security protection that 
benefited about 1.4 million workers. 
Business and organised labour, together with government are finalising 
amendments to labour laws at NEDLAC, which will make our laws more 
fit for purpose and our dispute resolution and collective bargaining 
institutions more efficient.
PROTECTING VULNERABLE WORKERS IN THE LABOUR 
MARKET

The introduction of a national minimum wage is a significant labour 
market intervention that was introduced as a platform to reduce 
inequality and huge disparities in income in the national labour market. 
The National Minimum Wage Act has benefited almost 6 (six) million 
workers and continues to play a role in reducing poverty and inequality 
and spurring domestic demand and productivity increases in the 
economy.

STRENGTHENING MULTILATERAL AND BILATERAL RELATIONS 
The geo-political environment is experiencing a quantum leap with the 
South African- Israel International Court of Justice case, introducing 
new postulations and dimensions to the country’s existent multilateral 
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and bilateral agreements. Despite these challenges, we continue to 
work with like-minded countries at the ILO, to pursue the 
democratization agenda as well as ensure clarity of mandates as we 
referred to the ICJ as a case of interpretation regarding the right to strike 
within Convention 87. 
Noting the plight of Palestine workers, SA as signatories of ILO 
Conventions, we committed and intend to ensure we keep alive the 
Israeli-Palestinian matter within ILO, and are consulting on the 
possible lodging of a case regarding the violation of ILO 
conventions by Israel.
Within the BRICS Employment and Labour Sector, we continue to 
support Russia’s Presidency and will pursue the implementation of the 
productivity ecosystem programme, a project adopted during our 
Presidency.
As SA, we have taken over our role as Troika Deputy Chair of the G20 
Employment Working Group which is a precursor to our Presidency in 
2025.
MONITORING THE IMPACT OF LEGISLATION
The department continues to focus on monitoring the impact of 
legislation through the production of statistical trend reports. The results 
provided in these reports are useful and relevant in the process of 
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developing evidence-based policy decisions that are favorable to 
improving workers' living conditions. 
ETHICS, ANTI-FRAUD AND CORRUPTION
The department subscribes to a culture of zero tolerance to fraud and 
corruption, and emphasizes a high level of awareness against any form 
of fraud, corruption, theft, or irregularities. 
BUDGET VOTE 2024 – VOTE 31

I therefore, present the Budget Vote 31. The Department of 
Employment and Labour, has been allocated an amount of 
R3.854 842 billion (three point eight billion, eight hundred and fifty-four
million, and eight hundred and forty-two thousand Rand) for the 
financial year 2024/2025. 
• R1.501 874 billion (one billion, five hundred and one million, eight 
hundred and seventy-four thousand Rand) is allocated for 
Compensation of Employees,
• R629.162 million (six hundred and twenty-nine million, and one 
hundred and sixty-two thousand Rand) for Goods and Services
• R1.615 316 billion (one billion, six hundred and fifteen million, 
three hundred and sixteen thousand Rand) for Transfers and 
Subsidies and,
• R108.490 million (one hundred and eight million, four hundred 
and ninety thousand Rand) for payments for Capital assets.
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I take this opportunity to thank Deputy Ministers Sibiya and Mgcina, the 
Acting Director-General, Ms Mjo, and the senior management and 
leadership of the Department of Employment and Labour and its 
entities, and look forward to a progressive, impactful and service 
delivery orientated 2024/25 financial year.
Ndiyabulela, Ngiyabonga, Thank you, Baie Dankie,