Millennium Development Goals Progress Report April 2011 Portfolio

Millennium Development Goals Progress Report April 2011 Portfolio Committee on Labour 25 th May 2011 Overall Responsibility: Director General: Mr N Nhleko Millineum Development Goals: Progress Report April 2011 1

Millennium Development Goals (MDG) Country report 2011 Ø South Africa (SA) is expected to report on the progress towards attaining the Millennium Development Goals (MDG’s) as agreed by heads of states and adopted in the Millennium Declaration during the United Nations General Assembly in Sept 2000. Ø Statistics SA as an organ of state for official statistics has been tasked with the coordination for drafting the report for the country. Ø The Millennium Development Goals country report has been released and the Minister in the Presidency-National Planning Commission had made presentation to the legislatures in March 2011. Ø The Department of Labour (Do. L) representative was assigned to the group which dealt with the Poverty and Hunger indicators – MDG 1: Eradicate extreme poverty and hunger. Millineum Development Goals: Progress Report April 2011 2

MDG Country report 2011 Ø A part from participating in the sectoral working groups, government departments were expected to provide statistics at their disposal relevant to the MDG indicators. Departments have to provide these statistics including a certification of its credibility. Ø Statistics for the MDG 1 indicators were mainly available from Statistics SA and the Social Services Department, e. g. - Proportion of population below $1 per day, poverty gap ratio - Share of poorest quintile in national consumption. - Growth rate of Gross Domestic Product person employed. - Employment to population ratio. - Proportion of employed people living below $1 per day. - Proportion of own account and contributing family workers in total employment. - Prevalence of underweight children under five years of age. - Proportion of population below minimum level of dietary energy consumption. Millineum Development Goals: Progress Report April 2011 3

8 Millennium Development Goals (MDG) Those marked in red are relevant to the Do. L’s Programmes: q MDG 1: Eradicate extreme poverty and hunger q MDG 2: Achieve universal primary education q MDG 3: Promote gender and equality and empower women q MDG 4: Reduce child mortality q MDG 5: Improve maternal health q MDG 6: Combat HIV/AIDS, malaria, and other diseases q MDG 7: Ensure environmental sustainability q MDG 8: Develop global partnership for development Millineum Development Goals: Progress Report April 2011 4

Department of Labour (Do. L) Key Result Areas (KRA) The Strategic Plan (2011– 2016) consists of the following Key Result Areas (KRA’s): KRA 1: Contribution to Employment Creation KRA 2: Promote Equity in the Labour Market KRA 3: Protecting Vulnerable Workers KRA 4: Strengthening Multilateral and Bilateral Relations KRA 5: Strengthening Social Protection KRA 6: Promoting Sound Labour Relations KRA 7: Strengthening the Capacity of Labour Market Institutions KRA 8: Monitoring the Impact of Legislation KRA 9: Strengthening the Institutional Capacity of the Department Millineum Development Goals: Progress Report April 2011 5

Millennium Development Goals (MDG) and Do. L Key Result Areas q MDG 1: Eradicate extreme poverty and hunger Ø Target 1. 1: Halve the proportion of people whose income is less than 1$ per day. Ø Target 1. 2: Achieve full and productive employment and decent work for all. § Contribution by Do. L to the MDG Targets KRA 1: Contribution to Employment Creation KRA 3: Protecting Vulnerable Workers KRA 5: Strengthening Social Protection KRA 6: Promoting Sound Labour Relations Millineum Development Goals: Progress Report April 2011 6

Millennium Development Goals (MDG) and Do. L Key Result Areas q MDG 3: Promote gender and equality and empower women KRA 2: Promote Equity in the Labour Market q MDG 6: Combat HIV/AIDS, malaria, and other diseases q MDG 8: Develop global partnership for development Ø Target 13: Address the special needs of the least developed countries. Ø Target 16: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth. § Contribution by Do. L to the MDG Targets KRA 4: Strengthening multilateral and bilateral relations Millineum Development Goals: Progress Report April 2011 7

Facts and figures Goal 1 and indicators 1994 Current status baseline (or 2010 (or closest nearest year) 2015 target Target achievability Indicator type Proportion of population below $1 (PPP) per day 11. 3 (2000) 5 (2006) 5. 7 Achieved MDG Poverty gap ratio ($1 (PPP) per day) 3. 2 (2000) 1. 1 (2006) 1. 6 Achieved MDG Poverty gap ratio ($1. 25 (PPP) per day) 5. 4 (2000) 2. 3 (2006) 2. 7 Achieved DOMESTIC Millineum Development Goals: Progress Report April 2011 8

MDG Country report 2011 Programme 2: Inspection and Enforcement Services (IES) Millineum Development Goals: Progress Report April 2011 9

MDG Country report 2011 MDG 3: Promote gender and equality and empower women q KRA 3: Promoting equity in the labour market Ø The Inspection and Enforcement Services (IES) Branch has implemented Employment Equity Act since its promulgation. Ø Labour Inspectors are inspecting workplaces for procedural compliance. Ø Cases of alleged unfair discrimination have been referred to the Commission for Conciliation Mediation and Arbitration (CCMA). Ø In the past few years designated employers have been subjected to a Director General (DG) Review process for substantive compliance to Employment Equity legislation. Ø The reports show very little progress made to achieve equity in the workplace. Millineum Development Goals: Progress Report April 2011 10

MDG Country report 2011 MDG 3: Promote gender and equality and empower women q KRA 3: Promoting equity in the labour market Ø Technical Assistance Guidelines have been developed to assist in the implementation of the Act. Ø Employment Equity Road Shows have been conducted to create awareness and assist employers in reporting. Ø An Employment Equity system has been developed and employers can also submit their reports online. Millineum Development Goals: Progress Report April 2011 11

MDG Country report 2011 MDG 1: Eradicate extreme poverty and hunger q KRA 4: Protection of vulnerable workers Ø Workers in specific sectors (Agriculture and domestic )of the Labour Market have been identified as vulnerable workers to which we focus our interventions. Ø Sectoral Determinations, which set minimum employment conditions and wages in these sectors have been promulgated for implementation. Ø Labour Inspectors are responsible for inspections and enforcing compliance to these determinations Ø In the past three years the department identified high risk and problematic sectors for blitz inspections. Ø Specific programs are also piloted and implemented to increase awareness on health and safety in these sectors. Millineum Development Goals: Progress Report April 2011 12

MDG Country report 2011 MDG 7: Ensure environmental stability q KRA 5: Strengthen Social Protection Ø The occupational Health and Safety regulations are promulgated and implemented in line with the Occupational Health and Safety (OHS) Act. Ø The Department works jointly with other government departments, Environmental Affairs, Mineral Resources etc. to ensure protection of the environment and workers. Ø Participation in technical committees and committees of experts both regionally and internationally to ensure regulation and environmental sustainability. Millineum Development Goals: Progress Report April 2011 13

MDG Country report 2011 Programme 3: Public Employment Services (PES) Millineum Development Goals: Progress Report April 2011 14

MDG Country report 2011 MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation Target 1: Halve between 1090 and 2015 the proportion of people whose income is less than US$1 per day Target 2: Halve between 1990 and 2015 the proportion of people who suffer from Hunger MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market Ø Employment Services Bill was developed and will be presented to Parliament after the NEDLAC negotiations. Millineum Development Goals: Progress Report April 2011 15

MDG Country report 2011 MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation q As of end of December 2010, Jobseekers registered and placed in opportunities: Ø 497 714 jobseekers reported for registration in different categories. Ø 324 720 (65%) were registered. Ø 401 479 (81%) jobseekers were referred for career guidance, work placement, Unemployment Insurance Fund (UIF), Compensation Fund (CF) and skills development. Ø 13 928 unemployed were assessed for job opportunities with Sp. EEX and 1294 placed. Millineum Development Goals: Progress Report April 2011 16

MDG Country report 2011 MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation q As of December 2010, Employer Services provided Ø 1205 companies registered opportunities on Employment Services for South Africa (ESSA) database. Ø 950 Private Employment Agencies (PEA’s) registered. Ø 725 449 opportunities registered. Ø 7 324 opportunities filled. Ø 161 applications were received (corporate and general work permits), 101 approved and 60 disapproved. Ø 19 companies were assisted through the Do. L /Department of Higher Education and Training (DHET) training lay-off scheme and a total of 6 351 workers benefited from the scheme. Millineum Development Goals: Progress Report April 2011 17

MDG Country report 2011 MDG 1 : Eradicate extreme poverty and hunger KRA 2: Promote Equity in the Labour Market q As of end of December 2010, Number of work seekers placed in employment: Millineum Development Goals: Progress Report April 2011 18

MDG Country report 2011 MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market q As of end of December 2010, 19 companies were assisted through the Do. L/DHET training lay-off scheme: Millineum Development Goals: Progress Report April 2011 19

MDG Country report 2011 MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation q As of end of December 2010, Designated groups special services Ø An amount of R 681 000 was budgeted to address the plight of People With Disabilities (Pw. D)’s for the 2010/11 financial year. Ø An amount of R 403, 346 was transferred to National Councils of Pw. D’s for the placement in employment. Ø Total number of people registered – 1020. Ø Total number of people placed – 511. Millineum Development Goals: Progress Report April 2011 20

MDG Country report 2011 MDG 1 : Eradicate extreme poverty and hunger KRA 1: Contribution to Employment Creation q As of end of December 2010, Products and services of assisted companies world class and competitive and jobs saved in distressed companies Ø 230 companies were assisted through workplace challenge programme. Ø 83 companies were assisted with turn around solutions and future forums were established. Ø Capacitated Small Medium Micro Enterprises (SMME’s) contribute to sustainable employment creation. Ø 2 245 SMME managers trained on management and matters related to intellectual property. Ø 8 226 jobs were saved through social plan interventions. Millineum Development Goals: Progress Report April 2011 21

MDG Country report 2011 MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market q As of end of December 2010, Number of women assisted to access the employment services interventions: Millineum Development Goals: Progress Report April 2011 22

MDG Country report 2011 ØMDG 1 : Eradicate extreme poverty and hunger KRA 2: Promote Equity in the Labour Market q As of end of December 2010, Number of young people assisted to access the employment services interventions: Millineum Development Goals: Progress Report April 2011 23

MDG Country report 2011 MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market Number of people with disabilities assisted to access the employment services interventions: q As of end of December 2010, Millineum Development Goals: Progress Report April 2011 24

MDG Country report 2011 Programme 4: Labour Policy and Industrial Relations (LP & IR) Millineum Development Goals: Progress Report April 2011 25

MDG Country report 2011 MDG 1: Eradicate extreme poverty and hunger Target: To halve the portion of proportion of people whose income is less than 1 US Dollar per day: q KRA 1: Contribution to Employment Creation South Africa increased the real wages of workers covered by sectoral determinations during the 2001 to 2010 period, particularly the wages of Domestic and Farm workers. Employment in sectors covered by minimum wage legislation also grew significantly over this period, at around 2. 9 percent per annum, whilst output grew by 4. 6 percent. Overall, employment in South Africa of workers covered by minimum wage legislation grew at a rate of 2. 9 percent per annum from nearly 3. 5 million in 2001 to just over 4 million in 2007. Millineum Development Goals: Progress Report April 2011 26

MDG Country report 2011 Proportion of households by poverty status and sectoral determination of household Sectors 2001 2007 Ultra poor Poor Non poor Total Retail 12. 6% 24. 8% 66. 1% 11. 2% 24. 8% 63. 9% 100% Domestic 45. 3% 28. 9% 22. 5% 36. 6% 28. 9% 34. 6% 100% Farm 45. 0% 44. 1% 14. 8% 34. 8% 44. 1% 21. 0% 100% Forestry 36. 7% 41. 6% 29. 5% 32. 5% 41. 6% 25. 9% 100% Taxi 12. 1% 28. 0% 49. 7% 26. 7% 28. 0% 45. 3% 100% Security 11. 6% 33. 0% 64. 5% 14. 7% 33. 0% 52. 3% 100% Hospitality 19. 0% 28. 8% 57. 9% 18. 2% 28. 8% 53. 0% 100% Contract cleaning 15. 4% 28. 7% 55. 6% 24. 3% 28. 7% 47. 0% 100% Civil engineering 1. 5% 0. 0% 94. 7% 3. 1% 0. 0% 96. 9% 100% Total (all workers covered) 33. 3% 32. 3% 34. 4% 30. 2% 33. 0% 36. 8% 100% Millineum Development Goals: Progress Report April 2011 27

MDG Country report 2011 MDG 1: Eradicate extreme poverty and hunger (cont…) q KRA 1: Contribution to Employment Creation Ø The Labour Relations Act allows the Minister of Labour to extend collective agreements concluded by bargaining councils to non-parties. Ø By extending collective agreements to non-parties, it covers vulnerable workers who normally would have been excluded by these wage increases and social security benefits like pension funds and medical aid schemes. Ø Over a period of 13 years average wage settlement rate in South Africa was around 8%. Ø The wage settlement rate was more than the average inflation rate of 6%. Ø The average wage settlement has been higher than the inflation rate by 2%. This indicates that workers living standards in South Africa has been improved gradually. Millineum Development Goals: Progress Report April 2011 28

MDG Country report 2011 MDG 1: Eradicate extreme poverty and hunger (Cont…) q KRA 1: Contribution to Employment Creation Ø Over a period of 5 years average wage settlement rate in bargaining council system indicates the following for: - Skilled workers: 9% - Semi skilled workers: 9% - Unskilled workers: 9% Ø The lowest wage income of unskilled worker in South Africa compared to US$1 per day was US$ 9 per day. This indicates that the lowest wage income for the lowest paid worker in the bargaining council system across all sectors is above the US$1 per day. Millineum Development Goals: Progress Report April 2011 29

MDG Country report 2011 MDG 3 : Promote gender equality and empower women KRA 2: Promote Equity in the Labour Market q To create a conducive working environment for women participation and empowerment, the following legislation has been implemented: Ø Employment Equity Act, 1998, Regulations, Codes of Good Practice and Technical Assistance Guidelines that promotes equity in workplaces by: - promoting equal opportunities and fair treatment in employment through elimination of unfair discrimination; and - implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups (i. e. black people, women and people with disabilities) tonsure their equitable representation in workplaces. Millineum Development Goals: Progress Report April 2011 30

MDG Country report 2011 MDG 3 : Promote gender equality and empower women (Cont…) KRA 2: Promote Equity in the Labour Market q There has been progress in terms of representation of women in positions with decision making powers as follows: Ø Top management level- women constituted 18. 2% in 2008 and 19. 0% in 2010 of all positions at this level. Ø Senior Management level – women constituted 28. 3% in 2008 and 29. 3% in 2010 of all positions at this level. Millineum Development Goals: Progress Report April 2011 31

MDG Country report 2011 MDG 6: Combat HIV & AIDS q In order to assist both employers and employees on how to manage the impact of HIV & AIDS in workplaces, HIV & AIDS Code of Good Practice and its Technical Assistance: Ø Technical Assistance Guidelines (TAGs) were published in 2000 & 2001 respectively. Ø Key principles covered by both Code and TAGs: q Elimination of unfair discriminatory based on HIV status; Ø Dealing with HIV testing, confidentiality and disclosure of HIV status and how to provide equitable employee benefits. Millineum Development Goals: Progress Report April 2011 32

Conclusion Millennium Development Goals (MDG’s): World Progress Ø The World Bank released a report on worldwide efforts in advance of progress in achieving the goals and the report says, Ø “African countries are having mixed results in attempts to meet the (MDGs)”. Ø “The food, fuel and financial crisis experienced by developing countries has retarded the significant progress made in overcoming poverty, access to education and trying to bring women into the work force, into the main stream of the economy. ” Ø The challenge between now and 2015 is to re-double the effort, commit more resources from the World Bank and have agencies do the same to help as many countries as possible to achieve these MDGs. ” Ø The bank will boost support to agriculture to about $8. 3 billion a year and increase zero interest grant investment in basic education by extra $750 million, targeting 35 countries particularly in Africa, East and South Asia. ” Millineum Development Goals: Progress Report April 2011 33

Conclusion Millennium Development Goals: African Progress 2010 marked the end of the first decade of the MDGs and with five years remaining to the target date of 2015, the evidence shows that: Ø Africa has made significant progress since 2000. Notable advances have been made in social indicators, such as: - net primary education enrollment, - childhood immunization, - stemming the spread of HIV/AIDS and TB, and - gender empowerment, including the representation of women in decision-making. Millineum Development Goals: Progress Report April 2011 34

Conclusion Millennium Development Goals: African Progress Ø However, progress in these key areas remains disappointing - poverty reduction, - employment, and - most health-related goals Ø A high degree of inequity characterizes access to many social services in Africa, including health and education Particularly in rural areas. Ø The continent is moving in the right direction, but at a slow pace when compared to other developing regions. Ø Still high population growth relative to other regions masks some of the progress that the continent has made in improving human development indicators. Ø Further, the development challenges confronting the African continent are unique and require much greater expenditure of resources and efforts in order to overcome them. Millineum Development Goals: Progress Report April 2011 35

Conclusion Millennium Development Goals: South African Progress In some cases, South Africa has achieved its MDGs more than five years before 2015, while in others South Africa is far from achieving these MDG targets. South Africa’s Strengths: Ø A sophisticated infrastructure, Ø a well-developed private sector and Ø a stable macro-economy. Weaknesses: Ø Inequality in education, specifically as regards access to quality education Ø Access to quality health care. Ø The high prevalence of HIV and AIDS, (South Africa has not achieved some targets for those MDGs related to outcomes such as employment and income levels (these are impacted on directly by education), as well as life expectancy which is impacted by health conditions). Millineum Development Goals: Progress Report April 2011 36

Conclusion Millennium Development Goals: South African Progress Ø The macro-economic environment of benign inflation holds promise for SA. Ø Growth reached a plateau at 5% in an economy requiring at least 7% to achieve both its employment and redistributive consequences. South Africa has experienced a decline in poverty largely as a result of: Ø A significant income transfer programme, Ø Massive reallocation of pro-poor expenditure, e. g. - on housing, - water, - electricity and - sanitation Ø South Africa has achieved or is close to achieving the dollar-based purchasing power parity adjusted targets. Millineum Development Goals: Progress Report April 2011 37

Way forward Millennium Development Goals: Broad Actions Ø Maintain sound and stable macroeconomic policies; Ø Improve national capacity to monitor and report on the MDGs. This will include strengthening national statistical systems; Ø Strengthen MDG-based planning at all levels (tiers) of government; countries should cascade planning to lower tiers of government and build appropriate MDGrelated capacity at those levels; Ø Countries should scale up public sector investments to achieve the MDG’s while promoting active private sector, CSO and NGO involvement. (South Africa is of the view that In order to make bold statements on progress or lack of it, we need statistics as the basis for evidence based policy making). Millineum Development Goals: Progress Report April 2011 38

Thank you Millineum Development Goals: Progress Report April 2011 39