EPWP ECD — Conference 2012 East London Ministerial

EPWP ECD - Conference 2012 East London Ministerial Determination and Code of Good Practice issued in terms of BCEA

Lets just ground this discussion!!! q Set Government Priorities Decent Work is a central theme q 12 Government outcomes - Decent Employment through inclusive economic growth Overriding principles q EPWP employment must not displace formal employment q EPWP employment should benefit as many people as possible 2

Social Sector Compliance q For the 2 nd quarter of 2011/12 (1 April – Sept 2011): The average wage in the Social sector was R 57. 37 q Most of the Social Sector Programmes still do not comply with the minimum wage. q Further area of non- compliance Overtime and Sunday work: Services in programmes such as HCBC, Community Safety and Tourism (hospitality) are rendered at night and over weekends. The Ministerial Determination has not taken into cognisance of variance in EPWP Sectors programmes.

BCEA / Ministerial Determination o So where does it fit into the law!!! o Variation from provisions of the BCEA n Specific to EPWP n Extent n Conditions

Ministerial Determination

Which workers are covered? o All workers who are part of what is called the “Expanded Public Work Programmes” o “EPWP” means a programme to provide public or community assets or services n through labour intensive programmes and n initiated by government and funded from public resources

Which workers are covered? o Examples of programmes: n n n Environment and Culture Sector Programmes – Working for Water, Fire, Wetlands, People and Parks, Energy, Woodlands, Coast, Land care, Waste, Tourism, investing in Culture Programmes. Infrastructure Sector Programmes and Projects including construction, rehabilitation and maintenance of rural and lowvolume roads, storm-water drains, water reticulation, basic sanitation, footpaths, sidewalks, bicycle paths, schools and clinics Social Sector Programmes – ECD, Home & Community Base Care, Community Safety and other community based programmes All projects and programmes accessing the EPWP wage incentive (NGO, CBO and Community Works Programmes) Any other programme deemed to be part of EPWP by DPW

Extent Ministerial determination? o The Varied conditions are: n S 10(2) Overtime rate (Task based) n Task-rate worker may not work more that a total of 55 hours in any week to complete the tasks allocated (based on a 40 hr week) n S 14(3) Remuneration to be paid for meal intervals of longer than 75 minutes (May agree on longer breaks) n S 16 Pay for work on Sundays (May only perform emergency work on Sunday) This will change in the next few weeks for all EPWP programs)

Varied conditions cont. n S 29(n) to (p) n S 30 n S 37 n S 41 n S 51 – 58 - Written particulars of employment - Display of employee’s rights - Notice of termination (Fixed term contracts) - Severance pay (Fixed term contracts) - Sectoral Determinations o Do not apply to persons employed in supervision and management of EPWP

Conditions of variation o Weekly rest period – Two days p. w. o Family Responsibility leave - 3 days p. a. o Minimum wage R 63. 18 from 1 November 2012 – further CPI increase!!!!! o Termination: n Fair procedure must be followed n No severance pay (However current proposed amendments to the Labour legislation may have an impact down the line) n Qualify for UI benefits on termination by employer

Impo. MPORTANT REQUIREMENTS o Unemployment Insurance Contributions Act and OHSA applies to EPWP. There is no exclusion mechanism in these Acts YOU MUST COMPLY!!!! o Health and Safety n Employers must be registered with COIDA and records of employees must be kept in order for workers to be compensated in the event of an accident.

Code of Good Practice To assist with implementation of the Ministerial determination

Purpose and application o Provides guidelines on: n Working conditions n Payment and setting rates of remuneration n Disciplinary and grievance procedures o Promote uniformity o Applies to all employers and employees in EPWP o Is in line with all relevant legislation n BCEA, LRA, EEA, OHS, COIDA, UIA, SDA o Must be read in conjunction with Ministerial Determination

Beneficiaries of EPWP o Locally-based (as close as possible) prepared to work on specific EPWP o Spread benefits - one person per household o Not more than 20% skilled employees from other communities o Proposed targets: n 55% women n 40% youth (16 – 35) n 2% disabled

Selection and participation o Local community informed and consulted about the establishment of EPWP o Criteria to target the poorest of the poor n Where head of household has less than primary school education n Household with less than one full time person earning income n House where subsistence agriculture is the source of income o Provide as many people as possible with opportunity to participate o Distribute amongst the unemployed o Forced labour is prohibited

Payment o At least the prescribed minimum rate (R 63. 18 day Increase) o May be paid on number of tasks completed (“task-rated” workers) or daily rate o Paid on basis of time worked (“time-rated workers o If informed a day before that work will not take place the next day – not entitled to payment o Training allowance to be paid 100% when required to attend training o Written particulars to be provided o If project is completed earlier than anticipated - worker should receive agreed remuneration for the period in full.

Discipline and grievance o Must have disciplinary code and grievance procedure in place that apply to all o Disciplinary Procedures n Fair procedure o Steps – Verbal , Written warning, dismissal o Examples of offences that warrants warnings o Examples of serious offences that warrants dismissal o Poor work performance - counseling/guidance, training o Grievance Procedures n Sets out procedure for employee to follow o Contract of Employment for task-rated workers provided.

The significant changes o Removal of the absolute requirement for two days training per 20 days work and rather focusing on dedicated training strategies on a programme by programme basis o Removal of the requirement to exit beneficiaries after set time frame o Introduction of a minimum wage rate

Other changes…. o o Preamble (1) n DPW to maintain a list of approved EPWP projects Beneficiaries of EPWP (2) n Remove reference to exclude people on social security pension n Insert preference for local labour n Proposed targets Recommended exclusion (5) n Change age from 18 to 16 year Payment (10) n Introduce minimum wage of R 60 to be adjusted annually in line n n o with inflation Remove guideline for setting of wages Training allowance to paid only if participant undergoes training rate increased from 75% TO 100% of wage Training n Remove entitlement to training and replace with more strategic approach

Thank you