Budget Vote - 31 elaboration, Deputy Minister for Employment and Labour, Mr Ntuthuko Mbongiseni Sibiya, National Assembly,11th July 2024

Honourable Chair
Honourable Minister
Honourable Deputy Minister
Honourable members
Director General
Senior management
Ladies and Gentleman 
Honourable Chairperson,

Thank you for the opportunity to address the house on this important occasion of the 7th
Administration’s maiden budget vote ( 31) for the Department of Employment and Labour. 
Mine is to elaborate on some of the salient points and issues that were raised by my Minister , 
Hon Meth.

One of the landmark achievements highlighting the critical role played by the Department of 
Employment and Labour in the 30 years of democracy, it can be better understood through its 
post-apartheid labour dispute resolution mechanism. To appreciate this, it is necessary to first 
paint the picture of the pre-1994 dispute resolution landscape. 

It was a statutory dispute resolution system that was lengthy, complex, and riddled with 
technicalities characterized the system. This led to a proliferation of disputes and heightened 
industrial action. Parties often viewed dispute resolution as obstacles to litigation rather than 
effective means of resolving disputes. Fewer than 30% of disputes referred to industrial councils 
resulted in settlement, with only 20% achieving resolution.

Commission for Conciliation, Mediation and Arbitration (CCMA)
The overhaul of labour market saw the 1996 establishment of the Commission for Conciliation, 
Mediation and Arbitration (CCMA) as an innovative way of addressing the challenges posed by 
dispute resolution. Its establishment provided the labour market with an accessible, userfriendly, and, above all, inexpensive labour dispute resolution system. Some of the main 
achievements of the CCMA include swift and efficient resolution of employment disputes. 

The overwhelming majority of cases concern unfair dismissal, followed by unfair labour 
practices, collective bargaining, and severance pay. Since its inception in 1996, the CCMA has 
dealt with four million thirty-nine thousand two hundred sixty-five (4,039,265) cases, and its 
settlement rate has consistently hovered around 70%. 

The average turnaround time for conciliation is 26 days, instead of the 30 days as stipulated in 
the Labour Relations Act and average turnaround time for arbitration is 31 days, compared to 
90 days. As part of strengthening CCMA's capacity, the Department has tabled a number of 
labour law proposals to ensure that CCMA's efficiencies are strengthened, such as empowering 
CCMA to establish rules to expedite certain processes.

In the past three decades of democracy, NEDLAC has consistently held a central position in 
fostering social dialogue. It serves as a vital mechanism through which the Government, 
Organised Labour, Organised Business, and Community constituencies collaborate, engaging 
in problem-solving and negotiation to tackle a spectrum of economic, labour, and 
developmental challenges confronting the nation. 
NEDLAC's pivotal role extends to influencing legislation and policy formulation, ensuring that 
diverse viewpoints and interests are considered in the decision-making process. It addresses a 

wide array of critical issues such as employment laws, trade dynamics, industrial policy, and 
development strategies, all aimed at fostering a more inclusive and equitable economy.
Among NEDLAC's significant achievements are the 1995 Labour Relations Act, the 1997 Basic 
Conditions of Employment Act, the 1998 Employment Equity Act, the 1998 Skills Development 
Act, and the revised Unemployment Insurance Act. Other notable legislative milestones include 
the 2019 Companies Bill, the 2018 Competition Amendment Bill, and the 2019 National 
Minimum Wage Act. During challenging times, NEDLAC has brought together various parties, 
such as during the Electricity Summit, which resulted in a NEDLAC Accord, the development 
of the Framework for South Africa’s Response to the International Crisis, and the Social 
Compact to support Eskom (2020). 

Additionally, NEDLAC coordinated social partners' responses to the Covid-19 pandemic, 
including implementing the Covid-19 Temporary Employee Relief Scheme (TERS), drafting 
Occupational Health and Safety Directions for safe workplace reopening, and facilitating a 
vaccination campaign once vaccines became available. In response to the July 2021 unrest in 
KwaZulu-Natal and Gauteng provinces, NEDLAC proposed a package of measures, including 
support for uninsured businesses and addressing unemployment.
To ensure NEDLAC's work strengthens, the organization has amended its funding protocols to 
remain fit for purpose. It is further heartening to know that social partners share a common 
vision of addressing current unemployment, inequalities, and poverty through a consensusdriven approach

Productivity SA is established in terms of the Employment services Act, No. 4 of 2014 improves 
productivity by diagnosing, advising, implementing, monitoring and evaluating solutions aimed 
at improving South Africa's sustainable growth, development and employment through 
increased competitiveness especially for companies that have but under administration or those 
that improve their productive. The NDP emphasises the need to create employment and drive 
economic growth as the means to uplift the lives of South Africans. It recognises that without 
productivity improvements, we cannot achieve these crucial objectives. 
 

As at December 2023, Productivity SA through its Business Turnaround and Recovery 
Programme (BT&R) programme had enrolled 250 companies for assistance in enabling the 
turnaround and sustainability of the companies. The programme effectively saved 20 723 jobs. 
The 250 companies that were enrolled in the BT&R programme were spread across the width 
and breadth of South Africa. 1 524 jobs were created resulting in 22 247 jobs being saved 
overall. 

Out of the 250 companies supported by the BT&R programme 93 were from Region 1 (Gauteng, 
North West, Limpopo), 63 from Region 2 (Western Cape, Northern Cape, Free State) and 94 
from Region 3 (KwaZulu-Natal, Eastern Cape, Mpumalanga). Out of the 20 723 jobs saved 7 
660 are in Gauteng, North West and Limpopo; 7 203 in Western Cape, Northern Cape and the 
Free State; and 5 860 in KwaZulu-Natal, Eastern Cape and Mpumalanga. Of the 2 431 Future 
Forum (FF) Members trained, 659 FF Members were trained in Region 1, 934 in Region 2, and 
838 in Region 3.

In conclusion, the achievements of CCMA, NEDLAC, and Productivity SA exemplify the 
dedication to fostering inclusive growth, equitable opportunities, and effective governance. The 
Department of Employment and Labour looks forward to continue to support these institutions 
in their mission to build a prosperous South Africa for all.
I support the Budget Vote