Nedlac and Productivity SA 2023/24 Annual Reports, with Minister

Video NEDLAC Productivity SA The Department of Employment and Labour briefed the Portfolio Committee on Employment and Labour on the 2023/24 Annual Report of the National Economic Development and Labour Council (Nedlac); and Productivity SA, with Minister Nomakhosazana Meth present from the Department. The Minister emphasised her commitment to creating an inclusive economy, outlining strategic priorities such as job creation, poverty reduction, and ethical governance. She highlighted the performance of Productivity SA, which met 77% of its targets, and praised Nedlac for achieving 92%, noting their roles in fostering social dialogue. She also announced the restoration of the Unemployment Insurance Fund (UIF) online services and initiatives to improve workplace safety following recent construction incidents. Over the next five years, the Department aims to strengthen regulations, enhance governance, improve service delivery, and promote public-private partnerships to drive job creation and economic growth. The meeting focused on improving job creation and economic growth through Public-Private Partnerships. Committee Members raised concerns about corruption and the need for systems to prevent it, emphasising employment in rural areas and suggesting the use of UIF resources for this purpose. Members also criticised the UIF for its inefficiencies, noting that many people could still not access its services. Minister Meth acknowledged these concerns, promising to review previous resolutions and reported an increase in funding for the Temporary Employer/Employee Relief Scheme (TERS). Presentations by Productivity SA highlighted the challenges it faces, such as financial constraints and high vacancy rates, despite its achievements in supporting small businesses and job preservation. Nedlac reported on its performance and ongoing issues, which included unclaimed assets, while acknowledging the need for better collaboration among stakeholders. Overall, the meeting stressed the importance of addressing challenges to enhance productivity and support economic growth in South Africa. The National State Enterprise Bill returned to Parliament for further discussion after being rushed previously. Nedlac highlighted the connection between the TISC chamber and climate initiatives, particularly in renewable energy and electric vehicles and how the Teselico committee focused on ensuring continued tariff-free exports to the US under the African Growth and Opportunity Act (AGOA). Several Section 77 matters arose, particularly concerning job losses in the mining sector due to energy changes and climate impacts. Nedlac's Chief Financial Officer reported a clean audit for the first time, despite an accounting deficit due to increased costs from the Presidential Climate Commission. Concerns were raised about Productivity SA's performance and its funding challenges, with calls for clearer strategies to support small businesses and informal traders. Overall, the meeting underscored the need for collaboration and effective policies to address economic challenges and improve productivity in South Africa. The Committee praised the Department’s presentations and stressed the importance of consultation in legislation for entities like Nedlac. Nedlac was questioned about its risk management strategies related to the social partner agreement, especially concerning the Economic Reconstruction and Recovery Plan (ERRP). It also discussed the financial challenges, stating that as Schedule 3A entities, they needed to generate more revenue beyond administrative costs to support SMMEs effectively. Capacity issues in the Research, Innovation, and Statistics unit hampered performance, with a hiring freeze limiting its output. Despite challenges, they successfully held research and advocacy seminars. A new programme was introduced aimed at enhancing sustainability and emphasised the need for strategic partnerships and digitalisation. Although it supported fewer SMMEs due to funding constraints, the program aimed to help 2,400 entrepreneurs. Compliance improvements and ongoing financial challenges were reported on, which had been exacerbated by budget cuts. Revenue generation was prioritised and options like fixed-term contracts to manage costs are being explored. Concerns about consensus-building in Nedlac and the importance of risk mitigation for effective discussions were considered by the Committee. The discussion highlighted the importance of issue-based social compacts for effective collaboration, particularly on the just transition. Rising challenges in the mining sector due to a sluggish economy, prompting increased support through TERS, together with the budget rising significantly are a cause for concern. The Committee stressed the role of Productivity SA in providing non-financial support and the need for cooperation to uphold Nedlac processes.