Deputy Minister Jomo Sibiya: Employment and Labour Dept Budget Vote 2025/26

Honourable Chairperson
Honourable Members of Parliament
Ministers and Deputy Ministers present
Honourable Members of the Portfolio Committee on Employment and Labour
Departmental officials and those of our entities present
Guests
Ladies and gentlemen
Fellow South Africans

This year, we commemorate Nelson Mandela International Day on the 18th of July under the poignant theme: “It’s still in our hands to combat poverty and inequity.”

These words are more than a call to action. They are a reminder of our collective responsibility.

The late President Nelson Mandela, revered globally and beloved as the father of our nation, once said: “It is in your hands to make our world a better one for all, especially the poor, vulnerable and marginalised.” These words lie at the very core of our government’s mandate and inform our approach to governance, service delivery, and fiscal responsibility.

As we gather here today to deliberate on this budget, we do so with a deep understanding that every rand we allocate, every programme we implement, must serve to uplift those most in need.

In the spirit of Mandela Month, we are reminded that lasting change begins with individual action. Every effort, no matter how small, contributes to a ripple effect that can transform lives and strengthen the fabric of our society.

This is a moment to reaffirm our commitment to fighting poverty, reducing inequality, and building inclusive communities rooted in justice and reconciliation. It is in our united pursuit of sustainable development and in our unwavering support for one another that we rebuild, restore, and reimagine our nation.

Let us therefore be intentional. Let us be bold. And above all, let us be guided by the values that Madiba championed, of dignity, compassion, and justice.

Inspection and enforcement

Chairperson, I would like to pick up this debate on the issue of inspection and enforcement. It would be a cardinal error to underplay the role that is played by the inspectorate in the context of employment creation and job preservation. It is common knowledge that the unemployment rate has creeped to unacceptable levels. The decent work agenda, which is at the centre of the work done by the inspectorate, plays a significant role in preventing the haemorrhaging of jobs.

The MTDP, which is a blueprint of the GNU, has singled out, amongst others, the matter of tackling poverty and reducing the cost of living. At the nucleus of employment laws, is the matter of ensuring that the sheer numbers of the vulnerable workforce do not toil in vain. The Basic Conditions of Employment Act and the National Minimum Wage Act are pivotal instruments in fortifying the right of workers to fair remuneration and standards of employment that bode well with worker rights.

In the financial year 2024–2025, 310 798 inspections were carried out. Of these, 168 884 were BCEA & NMWA whilst 107 808 were OHSA inspections. Whilst these numbers are not small, it is our desire to cast our net as wide as possible.

To ensure adequate social security to the workforce, our Employer Audit Services inspectors conducted 30 053 inspections to test compliance with the Compensation of Injuries and Diseases Act and the Unemployment Insurance Act. During all those inspections, R101 386 541 was enforced for various legislations. R78 669 849 was recovered on behalf of vulnerable workers in the form of underpayment of wages and salaries. Effectively, that was money that went to the pockets of the employees – a demonstration that we are obsessed with making a real difference in the lives of the workers of our country.

The compliance levels of employers/workplaces inspected during 2024/25 financial year were as follows per legislation:

• BCEA and NMWA on 89%
• OHSA on 65%
• Employer audits on UIA and UICA on 40%
• Employment Equity Act on 38%
• COIDA on 31%
• Nationally for all labour legislation, compliance was at an average of 53%

To keep up with the ever-evolving labour market, we have fine-tuned our service delivery machinery and strategies. We have collaborated with sister departments and institutions such as the Department of Home Affairs, SAPS, SARS, Bargaining Councils and municipal law enforcers to conduct national high-impact blitz inspections. To date, we have expanded these inspections to the following sectors:

• Hospitality
• Construction
• Agriculture
• Textile and clothing
• Chemical
• Wholesale and retail

Through the IES, the department has also signed a number of Memorandums of Understanding with various partners to address matters of compliance. Some accords have been endorsed as an undertaking to deal with unsatisfactory levels of compliance with the Occupational Health and Safety Act.

We also held 16 large-scale advocacy initiatives nationally in the past financial year. A demonstration that a stick alone will not build the economy, we need to offer a carrot as well. Advocacy is one of the strategic pillars of ensuring that labour laws are adhered to. Increasing the knowledge base of employers and employees contributes towards self-regulation.

We are living in rapidly changing times. That is why we should be continuously innovative. Inspectors should keep abreast of developments in the labour market and be adaptable and agile. The department attends to the continuous development of intellectual capacity of the inspectors. Mentoring and coaching, and participation in roving teams, provide empowerment.

We are onboarding 20 000 intern inspectors over the next 5 years to magnify inspector visibility.

We also continue to properly manage our information and data as these are key ingredients in the implementation of risk-based inspections. These target areas of grave non-compliance and are a rich source of implementation intelligence.

Inclusive economic growth and disability

Chairperson and Honourable Members, pursuit of an inclusive economic growth involves the efforts that ensure economic transformation. Our collective mission should ensure that we leave no one behind.

We must place people with disabilities at the heart of inclusive economic growth. I urge all spheres of government, public agencies and society to support our Supported Employment Enterprises (SEE).

SEE currently employs over 1 000 people with disabilities and has the potential to grow this to over 3 000. I challenge each organ of state to commit to spending at least 5% of its office furniture, school furniture, textiles and hospital linen budget on the SEEs.

Commission for Conciliation, Mediation and Arbitration (CCMA)

The CCMA is entrusted with the important responsibility of creating an enabling labour dispute resolution environment. Its legislative mandate gives effect to Section 23 of the Constitution.

The 2025–2030 Strategic Plan titled “The Momentum Empowering Progress, Embracing Change” is built on three strategic thrusts:

• Resource optimisation
• Adaptation and resilience
• User experience

In the 2025/26 financial year, the CCMA will:

• Facilitate dispute resolution processes for referrals under the Labour Relations Act and related laws
• Implement dispute management and prevention strategies
• Enhance outreach to vulnerable groups
• Support economic resilience through TERS and Section 189A
• Advance digital transformation
• Maintain high governance standards

While the CCMA continues to fulfil its legislative mandate, reduced grants have led to longer turnaround times (85 days in 2023/24 and 109 days in 2024/25).

Despite economic challenges, the CCMA facilitated the saving of 30 581 jobs out of 64 919 facing retrenchment.

The CCMA delivered 90% performance (28/31 targets met), reaching over 208 000 users, with 185 labour market interventions and 100% satisfaction from 4 800 participants.

The Labour Advice Web Tool saw over 118 000 new users. TERS preserved 13 000+ jobs at a cost exceeding R1.4 billion.

In 2024/25, CCMA recorded 193 069 case referrals (up 2% from 188 619 in 2023/24), including 54 809 BCEA and 1 628 NMWA referrals.

Financially, the CCMA reduced expenditure by 5%, secured a R28.4 million surplus rollover, and enhanced operational efficiencies.

The CCMA is exploring alternative revenue generation through:

• Retention of surplus funds
• Revenue from investments
• Revenue from services rendered
• Cost reduction

Guided by legislation and collaboration, the CCMA will pursue these to strengthen collective bargaining and promote fair employment practices.

I thank you.

#ServiceDeliveryZA