Labour dept needs IT upgrade

The Department of Labour (DOL) has identified various problems at its labour centres, many IT-related, after paying visits to different provinces.

It says the objectives for these visits were broadly to assess the current services provided by the department, the extent of the demand of such services, and the major challenges faced by the department in discharging its mandate and servicing its clients.

At a Parliamentary portfolio committee meeting last week, the department said the various problems ranged from low morale among staff members, human resource problems, as well as problems with the labour law.

Major challenges to professionalising, skilling, and correctly tooling and equipping the inspectorate division of the department were also highlighted.

IT problems stemming from the failed interaction with Siemens were discussed at the meeting as well.

Members raised the fact that R1.9 billion had been set aside to assist provinces, and a similar amount was previously put aside to contract Siemens to correct IT functions.

They questioned what plans were in place that would avoid a repeat of problems with the Siemens contract.

It was also noted that Siemens said the department had not given the correct details and guidance for the project.

The DOL had not responded to Siemens' allegations, as well as matters of fraud and double claims. It also does not have the capacity to investigate these issues and so they should be passed on to the correct institutions such as the police services, said members.

Nkosinathi Nhleko, director-general of the DOL, said the Siemens contract had always been a problem in the department. He added that the DOL is definitely weak in the area of contract management and this is now being addressed.

In February, the IT contract between Siemens and the department - to deliver IT systems - was put under investigation.

At a committee meeting in March, the DOL said it would not renew its contract with Siemens to deliver its IT systems, and will negotiate an early termination of the contract for October 2011.

However, this has not happened, although DOL spokesperson Musa Zondi says an early termination is in the process of being achieved, and the contract will be concluded by year-end.

At the same time, the department has highlighted that IT systems need to be improved and integrated.

Other challenges identified by the department include its budget being inadequate.

Nhleko said there are acute shortages; for example, many inspectors are unable to adequately complete their work as they do not have laptops and vehicles.

He added that the labour law needs to be reviewed and labour broking is challenging, since enforcement capacity needs to be strengthened.

In light of this, professionalisation, especially of the inspectorate division, needs to be fast-tracked.

In July, labour minister Nelisiwe Oliphant said the department will get R60 million to hire additional inspectors to regulate the labour broking industry.

Draft amendments to the Labour Relations Act (LRA), Basic Conditions of Employment Act and Employment Equity Act, and a new piece of proposed legislation - the Public Employment Services Bill - were published in the Government Gazette in December.

The amendments propose a repeal of section 198 of the LRA, which regulates labour brokers.

The contentious matter is currently before the National Economic Development and Labour Council. Business says banning labour broking will result in a huge knock to the economy, while organised labour will settle for nothing less than a total ban.

Members asked if there is a cut off date for reviewing the Bills and labour law. Nhleko said there is a process of social dialogue that needs to be undertaken and so the period is difficult to predict.

The DG said he hopes there would be clear direction by the end of 2011, but he could not be certain.

Nhleko also said there is a need to overhaul the Employment Services for SA system, where there is a need for seamless registration of job seekers and then matching them to job opportunities.

Access to labour centres was repeatedly cited by committee members as a problem. The department was urged to address this issue, and to possibly look at establishing mobile labour centres.

The DG said the department has a strategic plan which needed to reflect some of the challenges cited, as well as interventions required to address those challenges.