Sihlalo ohloniphekileyo, Ngqongqoshe Wabasebenzi, malungu ePhalamende ahloniphekileyo, abasebenzi boMnyango ngokwezikhundla zabo. (Translation of isiZulu paragraph follows.)
[Ms F E KHUMALO: Hon Chairperson, Minister of Labour, hon Members of Parliament, workers of the department in their different portfolios.]
In 1994 the ANC government inherited a society that was underdeveloped by international standards and characterised by policy gaps, duplication in delivery and fragmented institutions. A social protection system did not exist and vulnerable groups faced risks such as poverty, ill health, disability, unemployment, injury on duty, etc. This resulted in their effective exclusion from participating in society.
Broadly speaking, South Africa has adopted a redistributive approach to labour market reform during its transformation to democracy since 1994. This approach is the result of the notion of equality, as contained in the Constitution. The adoption of the democratic Constitution, Act 108 of 1996, and specifically Chapter 2, sought to guarantee the rights of all citizens, including workers, and accorded a set of rights which cannot be tampered with albeit through a set of constitutional amendments. Constitutionally, the general rights afforded to citizens apply equally to workers' rights.
It is against this background of ANC policy and policy that has influenced the crafting of the Constitution of the Republic of South Africa that the Compensation Fund must be looked at. The ANC's approach to compensation, therefore, is a deep and fundamental approach of looking at workers' environmental conditions in a holistic manner and providing the necessary protection.
The legislative mandate that informs our engagement is the amended Compensation for Occupational Injuries and Diseases Act of 1997. Historically, the introduction of the Act in 1993 was part of the rich influence of the ANC's 1992 policy document "Ready to Govern", which looked at a number of social protection measures and compensation measures that needed to guide the labour market.
The first years of its operational functioning brought many challenges and, of necessity, brought about the amendments of 1997. Even at this stage the stakeholders that were invited to the public hearings on the then Bill contested a number of issues, all of which directly arose from their experience of working with the 1993 Act. Considerable restructuring of this fund has taken place since 1997, yet much more needs to be done.
Last year the Minister, in his Budget Vote speech, had this to say:
Whilst there has been a number of changes to the fund, I am not satisfied. There is a lot of dirt, and a lot of sweeping will have to take place at the Compensation Fund. The portfolio committee must still assist me to do this.
This was the challenge and a reflection on how far we have come over the past 12 months in achieving the necessary changes. The impact of the changes to the management structure and the piloted decentralised model of the Coida - Compensation for Occupational Injuries and Diseases Act - operations in the Eastern Cape and Limpopo needs examination.
Certainly, we welcome the fact that all Coida payments are being made electronically rather than by cheque. The Compensation Fund claims settlement rates still remain too low. Integrating compensation and health and safety competencies across government has continued, but some areas still need to be worked on.
The ANC sees the key challenges as administrative interventions. The impact assessment of these interventions needs to be debated. What was intended by these administrative interventions was agreeable. The impact assessment is what needs further review. Improving and aligning the administration in accordance with all related regulations and the fund's strategic objectives have been central in all of this.
The upgrading of the Compensation Fund's financial system so as to improve both the claims settlement rate and the turnaround times should, equally, be assessed, as must the progress in registering pharmacists, medical orthotics, prosthetic practitioners and designated providers on the Compensation Fund's database.
The measurable objectives of the Compensation Fund are the turnaround time for occupational injuries or diseases within 90 days of receipt of full documentation. These measurable objectives remain a challenge. Over the next 12 months we will need the close attention of this committee.
We welcome the increased number of compensation claims that have been finalised. One of the key challenges remains the turnaround time of medical aid claims. The ANC has, however, moved way beyond the legalities and the process administrative challenges.
The introduction of national health insurance will bring to an end the medical aid sector as we know it, and claims will be processed far easier through the streamlined national health insurance system.
As part of the overall ANC developmental policy perspective on comprehensive social protection, the development and implementation of the rehabilitation and reintegration policy framework is greatly welcomed. For those who suffer the pain of injury at work, this offers a way back into the labour market as a corrective measure, rather than a fatalistic approach of injury being a final and determining factor in ending a worker's life within the world of work.
Part of strengthening social protection must be the paying of attention to the strengthening of the institutional capacity of the Department of Labour. Central to this is not just an inward-looking approach on systems and structures, but an outward-looking approach which deals with the workplace environment. The necessary capacity-building in the terrain is highly technical and critical. It is an environment in which the wrong calculations can lead to someone who has already suffered physical injury further suffering financial loss. Clearly, for the Compensation Fund to offer the best service to those injured at work, its financial viability must be secured.
Proposals around increasing assessment revenue and increasing the number of registered employers, as well as better debt collection, will assist in securing the financial stability of the Compensation Fund in future.
Oversight of organisational restructuring will be necessary to ensure that the ongoing amendments to the organisational system and structures will bring about the stated outcomes and intentions. Equally, the committee will need to carefully monitor the decentralisation of the Coida services to provinces.
The Compensation Fund must be seen against the seven priorities of government, which include health. Occupational health and safety and the Compensation for Occupational Injuries and Diseases Act are priorities that form part of the ANC's priorities arising from the 2009 election manifesto.
The continued integration of the Compensation Fund with comprehensive social security reforms reflects an ANC decision. We welcome this progressive move and are very mindful of the fact that as the legislative arm of the state we are going to have to make necessary amendments to the Compensation for Occupational Injuries and Diseases Act. This must form part of the programme of this committee for the Fourth Parliament.
In conclusion, the Compensation Fund and the Budget Vote that we are considering today must be viewed against the department's purpose "to provide protection to the unemployed and the injured". It is this that must determine our views on the Budget Vote through a proper assessment of its performance. As the ANC, we support the Budget Vote. I thank you. [Applause.]