Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698147283298.pdf (Namibia)
1 REPUBLIC OF NAMIBIA MINISTRY OF LABOUR AND SOCIAL WELFARE VOTE 14 (MLSW) Budget Motivation Statement 2013/14 By Honourable Doreen Sioka,MP, MINISTER 18 April 2013 2 Honourable Honourable Members Chair of the whole House in to Vote 14, of the Ministry of honour and privilege to rise in this August House, the budgetary allocations It is my distinct order to motivate Labour and Social Welfare, for the financial year 2013/14.
let me take this opportunity to Before I commence with my motivation, congratulate the Honourable Minister of Finance, the Director-General of the National Planning Commission and their technical staff members for coming up with this budget.

It is indeed, a people-centered and developmental oriented budget, the very principle on which the SWAPO'sgovernment collective agenda of national building has been premised on over the years.
Our country is faced with immense challenges of relatively high unemployment, inadequate living wages and intolerable conditions of employment in some sectors of our national economy.

Moreover wide spread vulnerability amongst the elderly and disabled persons, particularly in rural areas, is another still grappling with.
Given these national challenge that our nation is precarious circumstances facing our people, the role of the Ministry of Labour and Social Welfare has never before been more vital to the socio-economic development of our nation.

Honourable Chair of the whole House Honourable Members.

The Mandate of the Ministry is to provide labour, employment and social welfare services as per the Constitution of the Republic of Namibia.
task requires that the Ministry must ensure appropriate legal interventional This critical framework, creates conducive environment, and guarantees assistance that achieves the goal of decent employment for our people.

Ranking amongst the top priorities of the State, is the commitment to ensuring that our people obtain decent and meaningful employment and attain skills for self-employment.

This is a fundamental task entrusted with the Ministry of Labour and Social Welfare.
Needless to say, the Ministry is at the same time tasked to provide social protection to the vulnerable and marginalized segment of our society.

To achieve the above objectives, implementation of the followingActs: the Ministry IS thus responsible for the • Labour Act, 2007 (Act No.

11 of2007); • Affmnative Action(Employment) Act, 1998 (Act No.

29 Of 1998; 3 • National Pension Act, 1992 (Act No.

10 of 1992); • Social Security Act, 1994 (Act No.

34 of 1994); • Employee's Compensation Act, 1941 (Act No.
30 of 1941).

• Employment Services Act, 2011 (Act No.

8 of 2011) Honourable Chair of the whole House Honourable Members is As it undertakings customary, to highlight that were achieved during the previous financial year.

allow me some of the developmental Capital Projects In line with the government decentralization expand and bring government implementing Developmental Projects.

Thus construction Rehoboth, Enhana financial year.


The Rehoboth and Enhana Offices were officially inaugurated last year, while the Walvis Bay Labour Office will be inaugurated 2013. preparations policy, the Ministry continued to services closer to the people.

This is done by of Labour Offices at during the last on 22 April Ondangwa Labour Office was also completed two weeks ago and are underway for its inauguration in the immediate future.
and Walvis Bay, has been completed Labour Market Services Under this programme, the Namibia Labour Force Survey 2012, which was led by the Namibia Statistic Agency (NSA), was completed in November 2012.

The report and the results of the survey have been made public this month.

The Ministry outlines specifications to be adhered to by companies and individuals wishing to secure state contracts Employment Guidelines for goods and services.
drafted also that has to The Employment Service Act was partly implemented in August regulate employment agencies in the country.The Act aims at strengthening the Ministry's capacity to render services to the labour market by establishing an Advisory Employment Services Bureau.

However the regulations need to be finalized, to fully operationalize the of the of Employment Services Act, the Ministry Act.
As per the requirement system known as the Integrated has introduced and an Employment Services Committee a comprehensive computer last year 4 Employment the Office of Information System (IEIS).The system is hosted at the Prime Minister.

The first phase, which is installation of the system, has been completed and was piloted in Erongo Region toward the end of last year.
As my predecessor the system will job seekers and take stock of the needs of assist employers and employees in terms of vacancies and job opportunities available system is responsive to the in the country.

needs of the Labour market.

indicated in this August House last year, the Ministry to register It will ensure that the educational consultations have been finalized with the National Planning Furthermore, is to Commission on the Employment Creation Commission Bill.

The Bill promote in Namibia.


The Ministry has therefore requested the Chairperson of the Cabinet Committee on legislation to convene a meeting to discuss the bill.

the policy of government to accelerate employment creation The work to review the 1997 National Employment Policy is in good progress.

The new employment policy will have a national outlook which would be shared the social economic and endorsed by all issues on the national the key stakeholders socio-political agenda.
and will put in 2009 Cabinet directed the Ministry to promote As you may recall, financial year, again Cabinet productivity in the country.

During the last authorized the Ministry to seek assistance from other countries with well established centers.

A unit has been created in the Ministry and money is required to keep the project moving.

Labour Services last The Labour Amendment Act, No 2 of 2012 was implemented in August the issue of labour hire and problems year.
This piece of legislation addresses faced our people.

The of disguised and ambiguous in labour hire practice and widespread casualisation had caused labour unrest the country, particularly in the fishing, mining, wholesale and retail sectors.

The Amendment Act has defined the role of the private employment agencies and user enterprises, a thorny and slippery relationship that has been fuelling labour disputes for years.

Now the role of a middleman, known as labour hire, has been clarified.
relations that employment in August Upon its implementation lodged a court interdict opposed the matter, which was heard toward the end of September Judgment has been reserved since then.

programme that resources under last year, African Personnel Services (APS) the implementation of the Act.

The Ministry last year.

this there were 22 cases of Child Labour reported.


The majority of the this programme were pooled into investigation towards It was discovered in 2009 under to prevent 5 eradication of Child Labour.

An investigation carried out towards the end of last year confirmed that these cases were reduced to Six (6).

The programme was further gripped with enforcement of minimum wages in the security industry which was increased from N$3.80 to N$5.00 per hour last year.
Social Welfare Services The Ministry undertakes, as one of its core functions, the payment of social grants to senior citizens and people living with disability who hold Namibian residence permits.

The payment of the citizenship or holders of permanent grants is one of the social protection measures that our government has committed itself since independence.

As you may recall in the previous budget, the State Social Grants were increased from N$500 to N$550.

The increase was successfully implemented.


I am happy to commend the Honourable Minister of Finance, for making provisions to increase the State Social Grants to N$600 during this financial year.

During the 2011/12 financial year, the coverage for the Old Age grants was 90%.

Last year the coverage increased to 97%.

The disability coverage was 24% in 2011/12 and the percentage rose to 65% currently.
This high coverage rates were as a result of the Ministry's continuous outreach program which is undertaken annually.

Moreover, the Ministry administered Six Thousand Seven Hundred and Fifty the Funeral Benefit Program for beneficiaries that Six (6756) burials under the Ministry successfully engaged In addition, received Social Grants.

NAMPOSTto introduce Ministry Controlled Bank Accounts to which social grants would be paid.
This process will enable the Ministry to timely retrieve in the current information from the designated bank accounts whereas situation the process is tedious since the bank accounts are privately owned.

The Ministry approached the International Labour Organization (ILO)to assist the government in executing a social expenditure review that will improve the knowledge and information base on the coverage and performance of social protection in Namibia.
To this end, the Ministry has entered into a co-operation with ILO for which a Memorandum of Agreement was duly signed.

The project is scheduled to be undertaken over a six month period.

Decent Work Country Programme.

Our domestic workers continue to suffer at the hands of their employers.

In many instances, they are stripped of basic employment rights as enshrined in this back drop that a Wages Commission of the Labour Act.

It is against Domestic Workers was established in May last year.
The Commission investigated terms and conditions of employment of domestic workers to set a 6 rrummurn wage for them.

Following its launch, countrywide consultative public meetings that ended on 27 October 2012.

The report of the Commission with recommendations will be available in July 2013. the Commission engaged in Employment Equity.

opportunities suitability.


The Commission has The Office of the Employment Equity Commission was established to oversee the implementation of the Affirmative Action (Employment) Act, 29 of 1998.

The primary objective of the affirmative action law is to eliminate employment barriers against persons in designated groups so as to ensure that no person shall be denied employment to occupational steady progress towards equity in employment.
The apartheid administration left behind a legacy of inequities in employment with regard to the distribution of jobs, incomes and occupations.

Namibia is still regarded as one of the most skewed income distribution countries in the world and the income inequities are partly attributed to unfair discrimination in employment in terms of pay and employment opportunities.
These are, but some of the inherent challenges the Employment Equity Commission faces as it oversees the implementation of affirmative action in employment.

for reported slow but unrelated reasons Labour Relations and Labour Dispute Resolutions Through the Office of the Labour Commission, Namibia has established a labour dispute resolution process four years ago.

This process is functioning fairly well as many ordinary employees find it very helpful and fair.
Small and medium employers have also accepted the process as simple to understand, inexpensive and accessible in its operations.

the dispute resolution process is working well, However, despite the fact that the country experienced a surge in a number of industrial actions last year mainly in the form of strikes.

The strikes were a result of many socio-economic factors that underpinned the disputes.
Employees are feeling the effects of economic hardship as many of their wages are unable to take them through to the next payday.

Similarly, employers were affected by especially fuel prices and electricity costs.

These and other factors had a direct bearing on wages negotiations, some of which ended in stalemates, hence the strikes.

The Ministry is seriously considering the concept of a National Minimum Wage to stabilize wages in the country.
Although there has been a noticeable increase in collective bargaining process, the labour relations is still surrounded by mistrust and acute shortage of negotiations skills.

7 To address the above situation, the Ministry has consulted the International Labour Organization (ILO)to extend its technical expertise aimed at training social partners area of effective negotiations.
on best negotiation practices in the The Ministry has also embarked on capacity building efforts by engaging trade unions and employers on matters of mutual concern that are affecting their good labour relationship.

Honourable Chair of the whole House Honourable Members Let me now turn on motivating the budgetary request and allocations for this financial year.
to approve an amount Five Hundred of One Billion, Three Hundred and Four the Ministry is requesting this August For this financial year 2013/14, House, and thousand Namibia Forty Nine Million, Dollars.

(N$1 549 304 000).

This is Two Hundred and Twenty Million, Four Hundred and Forty Thousand Namibia Dollars (N$220, 440, 000) more than the budgetary allocations of the previous financial year.
One Billion, Five Hundred and Twenty Eight Million, Five Hundred and will be utilized for Ninety One thousands Namibia dollars (N$1 528591000) operational expenditure.

A marginal Twenty Million, Seven Hundred and Thirteen Million Namibia Dollars (N$20 713 000) goes to the development budget of the Ministry.
I now discuss individual programmes as follows: Labour Market Information and Employment Services Programme The purpose of this programme is to facilitate employment planning by providing quantitative and scientific information through the conducting of the labour market surveys and researches in Namibia.

The programme further provides vocational and occupational guidance; register job seekers and assist them to find suitable employment.
It also provides services aimed at ensuring decent work, promote employment creation, productivity and reduce poverty.

Under the Ministry starting from this year, will also commence with an annual national labour conference.

To ensure that all the above-mentioned activities are successfully undertaken and implemented, Fifty One Million, Nine Hundred and Forty Seven thousand Namibia dollars (N$51,947,000) this programme, is required.
Labour Services Protection 8 The main purpose of this programme is to ensure the implementation of and compliance with the Labour Act No.

11 of 2007.

This is done by conducting Labour inspections, investigation of workplaces complaints and enforcement of to ensure compliance orders.

Factory, boilers and elevator this occupational health and safety at workplace are also conducted under programme.
The programme technical also ensures information and advice to social partners on compliance with legal provisions such as minimum wages and other legal provisions.

To carry out this mandate, the Ministry requires an amount of Forty Two Million, Nine Hundred and Forty Four thousand Namibia dollars (N$42,944,000).
the provision of inspections Industrial Relations (Prevention and Settlement of Industrial Disputes) The Ministry has the Office of Labour Commissioner whose main purpose is to prevent and resolve labour disputes.

It promotes orderly collective bargaining.

The Office again promotes the principles of tripartism, enhances dispute resolution mechanism, procedures and established case management system.
In like manner, the Office promotes principles of employees basic rights at work places, monitors, manages and controls industrial actions in the country.

To effectivelyfulfill this essential mandate, an amount of Twenty Nine Million, 000 is Four Hundred and One thousand Namibia Dollars required.

(N$29, 401, Employment Equity in the country.


As indicated earlier, the primary objective of this programme, is to ensure full implementation of the AffirmativeAction (Employment)Act, 29 of 1998 by the Employment Equity Commission.

It makes sure that no person shall be denied employment opportunities for reasons unrelated to ability and guarantees that workforce are reflective of the demographics of Namibia.
Hence, for the realization of this mandate, an amount of Eight Million and Twenty Thousand Namibia dollars (N$8,020,000) is required.

Social Welfare Service safety nets.

This include amongst others, The purpose of this programme is to contribute to the social and economic upliftment of Namibians.

The aim is to reduce poverty through sufficient and sustainable strengthening the survival capacities of individuals, families and vulnerable groups of the society.
This programme administers old age and disability grants in accordance with the National Pensions Act, Act No.

10 of 1992 and the Funeral Benefits to those conforming to the said Act.

Currently, the beneficiaries of the Old Age Grant stands at Hundred and Forty Three Thousand and Seven (143,007), while stands at Twenty Seven Thousand Three that of the Disability Grant, 9 Hundred and Twelve (27,312).

This gives the total beneficiaries of Hundred and Seventy Thousand Three Hundred and Nineteen (170,319).
During the 2013/14 financial year, the Ministry contemplates to achieve a coverage rate of 98% for the Old Age Grants, and 67% for the Disability Grants.

Honourable Chair of the whole House Honourable Members As you have learnt from the Finance Minister, the Old Age grants shall be financial year.
Thus for the fulfillment of this increased by N$50 this the Ministry needs an amount of One Billion, Three Hundred undertaking, and Five Million, Namibia This is the lion share of the Ministry's budgetary Dollars(N$1,305.403,000).

allocations.

Four Hundred and Three thousand Planning and Administration and the organizational procedures.
This programme focuses on the formulation of policies and provision of administrative, personnel It provides logistics, material and equipment and transport services to the Ministry.It further provides other auxiliary services in addition to assisting the Minister in carrying out oversight responsibilities.

Ensuring capacity building programmes for social partners and other key stakeholders to improve social dialogue and strengthen tripartism also falls in this programme.
In addition, capital projects are also implemented under this programme.

This task will requires an amount of Seventy Six Million, Four Hundred and Sixteen thousand Namibia In addition, an amount of Twenty Million, Seven Dollars (N$76, 416, 000).

Hundred and Thirteen is required for Capital Projects of the Ministry.
thousand Namibia Dollars (N$20, 713, 000) Honourable Chair of the whole House Honourable Members In summary, the Ministry of Labour and Social Welfare implements six programs for which I am asking this August House to consider and approve N$1 549 304 000 Summary of programs and budget allocation for 2013/14 financial year.
10 Programme Office of the Minister Administration and Planning Labour Market Services Labour Service Office of the Labour Commissioner Social Welfare Employment Equity Commission Total Budget allocation N$ 14,460,000 76,416,000 51,947,000 42,944,000 29,401,000 1,305,403,000 8,020,000 1,528,591,000 Budget Allocation N$ 14,100,000 Capital Projects Programme Extension of the Ministry of Labour's Head Office Construction Eenhana Construction Ondanzwa Construction Walvis Bay.
Minor Renovations and Improvements of Satellite of Regional Office at 235,000 of Regional Office at 248,000 office at 267,000 5,863,000 20,713,000 1,549, 304,000 Total Grand Total I thank you