38% and 60% of gross monthly salary for 238 days (about ... · PDF file38% and 60% of gross...

38% and 60% of gross monthly salary for 238 days (about eight months). The monthly salary is

limited to a R12 478 earning ceiling. In this case, it is important to understand the seriousness of

this joblessness within the current global economic crisis. It could be difficult to exit this situation

if there is little hope of global economic recovery in the short-run. Thus, deteriorating growth

prospects in developing countries (in general) will further slow progress regarding poverty

reduction.

Figure 8: Growth in the number of domestic workers

Source: UIF data, 2008/09

• Despite the economic downturn currently experienced worldwide, the UIF data demonstrate a

constant increase in the number of domestic workers registered with the Fund, as shown in

Figure 8.

• In March 2009, about 7.6 million contributors (commercial 6 947 190 plus domestic 637 987)

were recorded on the UIF database. A steady increase in the number of contributors was

reported in both the domestic and commercial sectors. In the domestic sector, the increase

might be as a result of the impact of sectoral determination in domestic workers, e.g. personal

services.

23

632 000

633 000

634 000

635 000

636 000

637 000

638 000

639 000

March 2009

February 2009

January 2009

December 2008

November 2008

October 2008

September 2008

August 2008

July 2008

June 2008

May 2008

April 2008

634

277

634

583

634

903

635

321

635

709

636

205

636

619

636

873

636

946

637

330

637

618

637

987

2.6. Job advertisements

Figure 9: Trends in the number of job vacancies

Source: Department of Labour, Job Opportunity Index, 2008/09

• In the 2008/09 financial year, the Department of Labour processed more than 40 000 job

vacancies from the Sunday Times. The job vacancies provide a signal about changes in a

country’s labour market skills in demand

• Figure 9 shows the total number of job vacancies advertised in the media for the period April

2008 to March 2009 have been declining from quarter two to quarter four of the 2008/09

financial year. This signals a decline in the demand for labour as a result of the decrease in the

demand for a firm's product in the international market.

Figure 10: Advertised vacancies by occupational category

Source: Department of Labour, Job Opportunity Index, 2008/09

24

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000 January - March 2009

October - December 2008

July - September 2008

April - June 2008

Elementary workersMachinery operators and drivers

Sales workersClerical and

administrative workers

Community and personal

service workers

Technicians and trade

workers

ProfessionalsManagers

Num

ber o

f vac

anci

es

2 000

4 000

6 000

8 000

10 000

12 000

14 000

January - March 2009

October - December 2008

July - September 2008

April - June 2008

Num

ber o

f vac

anci

es

10 821

12 090

9 709

7 516

• Figure 10 shows the distribution of vacancies by occupational categories. High skilled

occupations, e.g. managers, professionals and technicians received a high number of vacancies

compared to low skill occupations. An explanation is the source of the vacancies used, which

mainly cater for skilled occupations. It has also been proved that employers mostly rely on

word of mouth for low-level skilled occupations

• Of the total of 40 136 job vacancies processed in the financial year 2008/09, about 43%

vacancies were from the professional category and 33% vacancies were for managers. The rest

of the vacancies were distributed in other occupational categories.

2.7. Work-seeker registration

Work-seekers statistics are generated from the Employment Services of South Africa (ESSA). It is

administered by the Department of Labour. The system brings work-seekers and employers

together by offering a matching function for quick and easy placement. In addition, the system

offers career guidance, skills development and specialised services for all citizens in the country.

Table 15: Work-seekers registered by gender

Source: Department of Labour, ESSA (figures exclude manual collection)

• According to data extracted from ESSA,Table 15 indicates that there were 232 515

work-seekers registered with the Department of Labour in the 2008/09 financial year, with

most (35%) registering in the last quarter of the financial year, but could unfortunately not be

assigned according to gender at the time of reporting because of system enhancement

• All in all more males were registered than females.

Table 16 : Level of education of registered work-seekers

Source: Department of Labour, ESSA (figures exclude manual collection)

25

Quarters Male Female Unassigned Total

Apr-Jun 2008 20 339 15 388 0 35 727

Jul-Sep 2008 33 965 24 213 2 58 180

Oct-Dec 2008 29 027 20 727 6 683 56 437

Jan-Mar 2009 0 0 82 171 82 171

Total 83 331 60 328 88 856 232 515

Educational level Apr-Jun 2008 Jul-Sep 2008 Oct-Dec 2008 Jan-Mar 2009 Total

None 11 410 25 388 24 293 0 61 091

Grade 1-3 282 427 320 0 1 029

Grade 4-7 1 693 2 654 2 055 0 6 402

Grade 8-9 2 350 3 466 2 795 0 8 611

Grade 10-11 5 494 9 755 7 579 0 22 828

Matric 10 255 16 490 12 703 0 39 448

Unassigned 4 243 0 6 692 82 171 93 106

Total 35 727 58 180 56 437 82 171 232 515

• Table 16 shows the number of work-seekers registered by the level of education. There was a

bulk of work-seekers in possession of a matric qualification, signalling at least an opportunity

for them to find some form of an opportunity in the formal and informal economy. There were

also many work-seekers without any formal education, which cast a lot of doubt on them ever

finding employment as the country urgently needs skilled workers. Overall, the level of skills of

the registered work-seekers is very low. Levinsohn argued that 16, the increase in labour supply

(unskilled labour) coupled with a decline in labour demand would have led to wage declines

that society found unacceptable, and the result has been a substantial increase in

unemployment.

Figure 11: Work permits received and approved

Source: Department of Home Affairs, Pretoria, South Africa

• Figure 11 shows the number of different work permit applications received by the

Department of Home Affairs over the reference period. Most of the permit applications were

in the General work permit category. It is observed that more applications were approved

(10 726) than received (9 641) in the general work permit category. The reason for the high

number of applications approved as opposed to received is due to a backlog of applications,

which have been outstanding and the Department is working tirelessly to process them.

• The second highest number of applications processed were for quota permits where 3 108

applications were received and 2 837 approved. With the lifting of trade barriers, intra-company

work permits are also increasing. Exceptional skills work permit applications were also received

and most of them were approved, with only 57 declined.

26

0

2 000

4 000

6 000

8 000

10 000

12 000Refused

Approved

Received

Intra-companyExceptional skillsGeneral work permit

Quota

________________________________________

16 Levinsohn, J (2007), Two policies to alleviate unemployment in South Africa, University of Michigan and

NBER, August 2007, p.1.

Section 3:

Industrial relationsIndustrial relations

The relationship between an employer and employees is very important in a company. Industrial

action can sometimes be an indication of the strength of that relationship, especially when it affects

issues other than wages. Section 64 of the Labour Relations Act, Act No.66 of 1995 recognises

every employee’s fundamental right to strike. However, the right is subject to certain limitations.

e.g., workers in essential services are not allowed to strike. This is also in line with the letter and

spirit of the Constitution of the Republic of South Africa. Industrial action on the other hand can

be a deterrent to potential investors who may view them as an undesirable state of affairs as

constant work stoppages disrupt production and hence the possibility of profits.

Strikes are monitored by the Department of Labour through the submission of the Labour

Relation Acts (LRA) 9.2 form, which is sent to the employers affected by the strike action to

complete after the strike action has ended. The information from these forms is captured on the

strikes monitoring database.

3.1. Brief analysis of industrial actions, April 2008 to March 2009

• There were 59 industrial action incidents during the period April 2008 to March 2009

compared to 63 in the preceding financial year. These involved 110 489 employees where

403 543 workdays and 2 978 387 working hours were lost

• Most of the strike incidents were in the community, social and personal services industry, and

wages seem to be the main reason for strike incidents that were experienced in the country.

Figure 12: Percentage distribution of strike incidents by industry

Source: Department of Labour, Strike Statistics, 2008/09

• According to Figure 12, most of the strike incidents experienced during the period under

review affected the community, social and personal services industry (36%). Following is the

27

Community and social

Finance

Transport

Wholesale and retail

Construction

Manufacturing

Mining

12%

20%

2%

8%

17%

5%

36%

manufacturing industry which was affected by 20% of the strike incidence; transport storage

and communication industry having been affected by 17% of the strikes; mining and quarrying;

wholesale and retail trade (8%); financial intermediation, insurance, real estate and business

services (5%) and construction (2%)

• The agriculture and the electricity, gas and water supply industries were relatively stable as

there were no industrial action incidents affecting these industries over the same period.

Table 17:Duration of strikes and employees involved


• Table 17 depicts the duration of strikes as well as the number of employees involved

• With regards to the effects of strikes, the number of employees taking part in the strikes was

110 489 where almost half (46 787) of the workers came from the mining and quarrying

industry, followed by the community, social and personal services industry which had 22 015

employees participating. The construction industry was the least affected with 115 employees

taking part in industrial action, as shown in Table 17

• Working hours lost are calculated by multiplying the number of hours that employees are

supposed to work, which are lost as a result of strike action by the number of workers

involved. Almost 3 million work-hours were lost as a result of work stoppages, with the

transport, storage and communication industry being severely affected losing 986 662

work-hours due to prolonged strikes

• Work-days lost is a result of the number of days lost and the number of employees

participating in strikes. The community, social and personal services industry had the most

work-days lost, losing 136 640 days; followed by transport, storage and communication

(128 995 days); mining and quarrying industry (69 009 days) and the manufacturing industry

(61 807 days).

28

Industries Employees involved Work-hours lost Work-days lost

Mining 46 787 741 366 69 009

Manufacturing 18 230 481 507 61 807

Construction 115 5 175 575

Wholesale and retail trade 6 446 45 348 3 657

Transport 16 591 986 662 128 995

Finance 305 30 940 2 860

Community 22 015 687 388 136 640

Total 110 489 2 978 387 403 543

Figure 13: Reasons for strikes


• Figure 13 shows that wages continue to be the single main reason for strike incidents as 44%

of the strikes were as a result of a deadlock in wage negotiations. Following this was the strike

around socio-economic and political conditions, which relates to the strike around rising food

and fuel prices called by COSATU during the middle of the previous year. Other reasons for

strikes point directly to the relationship between the workers and their employers mentioned

earlier.

3.2. Developments in dispute resolution environment

The Commission for Conciliation, Mediation and Arbitration (CCMA) provides a platform for the

prevention and resolution of industrial disputes, including industrial action, established in terms of

the Labour Relations Act, Act No. 66 of 1995. It aims to promote justice and economic growth,

with social partners, by transforming relations in the labour market. This is achieved by delivering

high quality, low cost dispute resolution and prevention services. The following are the main forms

of dispute resolution:

• Conciliation involves a third party (usually a Commissioner) meeting with the parties involved

in a dispute to explore ways to settle the dispute by agreement

• Mediation involves a third party taking an active role in the dispute resolution process and

making recommendations for the resolution of the dispute

• Arbitration takes place when conciliation fails, and either party requesting the CCMA to

resolve the dispute by arbitration. The Commissioner then issues an arbitration award, which is

legally binding on both parties after hearing both sides of the dispute.

29

Working conditions

Secondary action

Grievances

Wages

Union recognition

Refusal to bargain

Other

Disciplinary

Socio-economic

19%

7%

5%

3%

2%

44%

10%

3%7%

Table 18: Referral of cases by province

Source: CCMA, Review of Operations, 2008/09

• In Table 18, about 140 366 cases were referred to the CCMA during the 2008/09 financial

year. This represents a 6% increase when compared with the period preceding the period under

review. Generally, the number of cases referred is consistent with the industrial activity taking

place in the country, with Gauteng, KwaZulu-Natal, Western Cape and Mpumalanga having the

most referrals

• Only Limpopo and the Northern Cape offices have seen a reduction in the number of cases

referred to the CCMA in comparison with the previous period. All the other provincial offices

have had an increase in the cases referred to CCMA particularly the head office.

Figure 14: Referral of cases by issue


30

Region Apr 2008 –Mar 2009 Apr 2007–Mar 2008

Percentage change

between 2007/08 and

2008/09

Count % Count %

Eastern Cape 8 448 6 7 550 24

Free State 7 459 5 6 362 17

Gauteng 56 337 40 54 450 21

Head Office 2 326 2 1 312 77

KwaZulu-Natal 21 444 15 20 346 27

Limpopo 7 640 5 7 930 -4

Mpumalanga 8 642 6 7 737 12

Northern Cape 2 873 2 2 889 -1

North West 7 076 5 7 100 0

Western Cape 18 121 13% 17 192 5%

Total 140 366 100% 123 472 6%

0

20

40

60

80

1002007/08

2008/09

OtherSeverance pay

Collective bargaining

Mutual interest

Unfair labour practice

Unfair dismissal

82% 83%

7%3%

7%3% 3% 3% 2% 2% 4% 3%

• Figure 14 shows cases referred to the CCMA by issue. Unfair dismissals continued to account

for the largest percentage of issues in dispute. There was however a slight reduction in the

disputes referring to this issue at 82% in 2008/09 compared to 83% in 2007/08

• All the other issues remained the same in both financial years with the exception of other case

categories (made up of BCEA, EEA, SDA and UIA referrals), which had a slight increase

compared to the previous period.

Figure 15: Referral of cases by sector

Source: CCMA, Review of Operations, 2007/8 and 2008/9

• According to Figure 15, most of the cases referred to the CCMA were from the retail sector

(16%), which remained constant in the previous two reporting cycles. This pattern might be

attributed to the fact that the retail sector is home to most vulnerable workers (informal

economy). Following this were the business, professional services (12%), private safety and

security services and construction with 10% of the cases each, and the domestic sector with

9%. The agricultural sector had the lowest percentage of cases and the only sector with a

reduction in the cases reported compared to the previous reporting period.

31

0 2 4 6 8 10 12 14 16 18

2007/08

2008/09

Retail

Business/professional

services

Safety/security (private)

Building/construction

Domestic

Mining

Food/beverage (manufacture)

Agriculture/farming

%

3%4%4%4%4%4%

9%9%

10%9%

10%10%

12%12%

16%16%

Table 19: Conciliations conducted by province


• Table 19 shows that there were a total of 167 641 conciliations conducted, 92% of which were

heard and closed. This reflects a high level efficiency on the part of the staff. However this is 1%

down from the previous reporting cycle where 93% conciliations were heard and closed.

Table 20: Arbitrations conducted and settled by province


• Table 20 shows 40 229 arbitrations conducted and 36 871 settled in 2008/09 financial year.

The arbitrations settlement rate was 92% from those conducted. An increase of one

percentage point from 2007/08 financial year

• By provincial offices, most provinces surpassed the national efficiency rate of 80% of

arbitrations conducted. Head Office was below the efficiency rate of 80% and the national

32

ProvinceTotal conciliations

heard

Conciliations heard and closed

(90% of total conciliations heard)

Count % Previous year Difference

Eastern Cape 5 885 5 425 92% 90% 2%

Free State 4 999 4 680 94% 94% 0%

Gauteng 43 781 40 195 92% 93% -1%

Head Office 105 102 97% 0 97%

KwaZulu-Natal 16 216 14 849 92% 92% 0%

Limpopo 4 494 4 196 93% 93% 0%

Mpumalanga 6 056 5 581 92% 93% -1%

Northern Cape 1 939 1 866 96% 96% 0%

North West 5 210 4 803 92% 92% 0%

Western Cape 13 074 12 555 96% 96% 0%

Total 167 641 154 721 92% 93% -1%

ProvinceTotal arbitrations

conducted

Arbitrations finalised (Efficiency =

80% of arbitrations conducted

2008/09)

Arbitrations finalised (Efficiency =

80% of arbitrations conducted

2007/08)

Count Count Percentage Percentage Difference

Eastern Cape 2 987 2 673 89% 85% 4%

Free State 1 885 1 732 92% 93% -1%

Gauteng 18 122 16 713 92% 92% 0%

Head Office 34 24 71% 0 71%

KwaZulu-Natal 6 261 5 671 91% 90% 1%

Limpopo 2 120 1 860 88% 85% 3%

Mpumalanga 2 531 2 277 90% 92% -2%

Northern Cape 609 583 96% 96% 0%

North West 2 263 2 030 90% 88% 2%

Western Cape 3 417 3 308 97% 94% 3%

Total 40 229 36 871 92% 91% 1%

average rate of 92%.

Table 21: Awards rendered by participant

Source: CCMA Review of Operations 2008/09

• Table 21 shows total awards rendered to parties by region. A total of 24 370 were awarded

with 15 095 (62%) in favour of the employee party, while 9 139 (38%) were in favour of the

employer party. The remaining 136 was deemed to be non-jurisdictional.

33

Provinces Awards in favour of Other Total awards

Employee % Employer %

Eastern Cape 699 58% 501 42% 3 1 203

Free State 975 78% 282 22% 1 1 258

Gauteng 7 590 58% 5 432 42% 15 13 037

Head Office 1 25% 3 75% 0 4

KwaZulu-Natal 2 323 75% 738 24% 30 3 091

Limpopo 899 70% 386 30% 2 1 287

Mpumalanga 575 66% 290 33% 2 867

Northern Cape 206 59% 141 40% 4 351

North West 742 70% 311 29% 6 1 059

Western Cape 1 085 49% 1 055 48% 73 2 213

Total 15 095 62% 9 139 38% 136 24 370

The arbitrations settlement rate was 92% from those conducted.

Section 4:

Occupational healthOccupational health

and safetyand safety

The Occupational Health and Safety Act, Act No. 85 of 1993 aims to provide for the health and

safety of people at work and applies to all workplaces except for the mines and on sea. The Act

protects all people at work against hazards to health and safety arising out of activities carried

while at work.

Labour inspectors are mandated by the Act to inspect workplaces to determine whether they

comply with labour laws. When accidents happen inspectors investigate the incidents and report

on their findings. Incidents at the workplace can result in casualties and non-casualties, where

nobody suffers injuries. In the case of casualties, employees might become injured or lives may be

lost.

The reporting of incidents is compulsory for all employers, but there may be instances of

under-reporting especially when there are no casualties. This is due to the fact that where there

are injuries the affected people will need to claim for compensation and in the case of death the

police need to be involved, thus reporting may become necessary.

4.1. Incidents

Figure 16: Incidents reported by industry

Source: Department of Labour, Integrated Occupational Safety System, 2008/09

• Figure 16 shows the number of incidents that were reported to the inspectorate of the

Department. There were 1 561 incidents during the previous financial year, of which 1 509

resulted in casualties and 52 had no casualties reported

34

0 100 200 300 400 500 600

Non-casualtyCasualty

Agriculture

Mining and quarrying

Manufacturing

Electricity

Construction


Transport

Financial Intermediation

Community

Private household 723

2213

402

82

71

270

99

580

2

3

6

14

1851

690

• About 38% of the casualties happened in the manufacturing industry; 18% in the construction

industry; 15% in the community, social and personal services and 7% in the electricity, gas and

water supply industry. The high number of incidents is an indication of the non-compliance by

employers with health and safety regulations in the workplace, thus putting employees at risk of

injuries.

Figure 17: Incidents reported by provincial offices


• As indicated in Figure 17 most of the casualties occurred in the provincial offices where there

is a high concentration of manufacturing industries. Among these are Gauteng North and South,

KwaZulu-Natal, Eastern and Western Cape. The Free State provincial office recorded the least

number of incidents, which is commendable when comparing with the other provinces

mentioned above.

35

0

50

100

150

200

250

300

Non-casualtyCasualty

Gauteng North

Gauteng South

Northern Cape

MpumalangaLimpopoFree State

Eastern Cape

North West

KwaZulu-Natal

Western Cape

194

1

257

2

113

0

216

7 4 0

81

5

130

1831

0

262

13

221

6

4.1.1. Casualties

Figure 18: Casualties reported by industry


• In Figure 18 most of the casualties reported did not result in deaths of the employees. The 51

employees who lost their lives were in the construction industry, followed by the manufacturing

(38), agriculture (30), electricity, gas and water supply (26) industries and private households

(23)

• Of the injuries sustained at work, the majority of injuries occurred in the manufacturing

industry (543), followed by construction (221) and community, social and personal services

(207).

36

0 100 200 300 400 500 600

Non-fatalFatal

Agriculture

Mining and quarrying

Manufacturing

Electricity

Construction


Transport

Finance

Community

Private household23

4912

2079

3110

7510

6251

22168

2638

54323

3039

Of the injuries sustained at work, the majority of injuries occurred in the manufacturing industry (543),

followed by construction (221) and community, social and personal services (207).

Figure 19: Casualties reported by provincial office


• Of the casualties reported most fatalities (47) occurred within the Gauteng South provincial

office jurisdiction as illustrated in Figure 19. Following closely were Limpopo (30), Eastern

Cape (29), and the Gauteng North (28) provincial offices. There were no deaths reported in the

Free State provincial office

• Injuries reported were spread across in almost all the provincial offices in a relatively high

number.

37

0 50 100 150 200 250

Non-fatalitiesFatalities

Western Cape

KwaZulu-Natal

North West

Eastern Cape

Free State

Limpopo

Mpumalanga

Northern Cape

Gauteng South

Gauteng North28

19347

2156

2523

10730

510

429

18715

9814

24319

175

Of the casualties reported most fatalities (47) occurred within the Gauteng South provincial office

jurisdiction as illustrated in Figure 22.

38

Section 5:

ConclusionConclusion

This edition of the Annual Labour Market Bulletin is produced against the backdrop of an

economic recession, which has affected all economies globally. This recession has hit economies

world-wide very hard and its effects in the South African economy have been felt particularly in the

mining and manufacturing sectors. The general government services, personal services and

construction industries however posted some gains during this period. The gains posted by the

construction industries were as a result of the massive infrastructure investment as a result of the

FIFA world cup due to take place in the country in 2010.

Obviously the economic crisis has led to a decrease in the number of jobs created and an increase

in the number of the unemployed. The construction and the private households industries were

able to create some jobs during the course of the reporting period albeit not sustainable. This state

of affairs generally affects women although men were also victims of the crisis particularly those

sectors, which are traditionally male-dominated.

The number of industrial actions experienced has also dropped compared with the previous

period, and the CCMA has demonstrated some improvements in the resolution of some industrial

disputes as it has at times surpassed the efficiency targets it has set for itself.

With regard to the occupational health and safety of workers in workplaces, incidents still occur

especially where workers lose their lives. The continued presence of these incidents is by no means

accidental but points directly to the employers not complying with health and safety regulations at

work. The Department will always do its best in fulfilling its mandate by providing information and

inspection of the workplaces to eradicate this disturbing trend.

The continued presence of these incidents is by no means accidental but points directly to the

employers not complying with health and safety regulations at work.

5.1. Policy implications

The decrease in economic growth will mean reduced revenue and obviously reduced spending in

public programmes. The government will need to revise priorities in public spending amidst tight

fiscal control, while also mitigating the effects of the recession on particularly the poor and the

vulnerable. Retrenched workers will need re-training in new skills to enable them to re-enter the

labour market. The training in new skills should involve skills that are needed in the economy to

make them marketable. The challenge however is that the majority of the retrenched workers are

low-skilled.

Plans by the Department as announced by the Minister in his 2009 budget speech to increase the

amount and the period of payment of unemployment insurance are efforts to rescue the crisis

situation and widen the net for the unemployed. The country’s response to the global economic

crisis should also assist in reviving the economy and protecting the vulnerable sectors of the

economy based on the agreed plans by government, organised business and organised labour.

39

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