3.4 The EPWP as a job creation government strategy
3.4.4 EPWP framework
b) Performance management processes shall link to broad and consistent staff development plans and be aligned with the department’s strategic goals;
c) Performance management processes shall be developmental but shall allow for effective responses to consistent inadequate performance and for recognizing outstanding performance;
d) Performance management procedures should minimize the administrative burden on supervisors while maintaining transparency and administrative justice.
According to the Employment Performance Management and Development System (2001), the general purpose of the system is to enable employees to account for their actions and the resources expended and, in particular, for employees to become autonomous decision makers and accountable officers for the management of all resources, human, financial, technological or material. It is therefore important that this study examine this aspect of the EPWP to establish whether service delivery to the poor is effective and efficient and whether there is accountability for the use of taxpayers’ money.
In the EPWP the following frameworks guide the above processes; each has a significant role to play in its respective field. In this regard, one of the objectives of the study is to assess the compliance level in order to decide on the weaknesses and achievements of the programme and the management processes.
3.4.4.1 Code of Good Practice
The Code of Good Practice for Special Public Works Programmes (SPWPs) was formally gazetted by the Department of Labour (DoL) in 2002. It established a Public Works Programme (PWP) employment framework based on the PWP model to provide unemployed people with work experience coupled with training. It included the following provisions (Code of Good Practice, 2002):
a) Targets for the employment of youth, women and people living with disabilities on PWPs;
b) A requirement that relevant community-based organizations (CBOs) be consulted regarding the selection of workers to be employed on contracts;
c) Special conditions of employment for workers employed by contractors on labour-intensive projects, including the use of task-based payment systems, and the setting of payments for tasks based on consideration of the local going rate for unskilled labour; and
d) A limit on the duration of employment under the special conditions; and that PWP workers are entitled to training.
In view of the above, it is apparent that the Code of Good Practice (2002) is the cornerstone of the employment framework. The GDS Agreement (2003) also emphasized that relevant and targeted training should form a central component of the EPWP to ensure that workers attain relevant and marketable skills. The GDS Agreement suggested that training programmes should focus on the following:
· Adult basic education training (ABET);
· HIV/AIDS awareness;
· Health and safety;
· Social entrepreneurship;
· Industrial relations;
· Vocation skills, e.g. construction and agriculture;
· Life skills;
· Entrepreneurship;
· Project management;
· Community development;
· Project-specific skills; and
· Cooperatives training.
The issue of training is clearly crucial to the EPWP; hence, it is scrutinized in this study.
3.4.4.2. EPWP Guidelines
The EPWP Guidelines (2005) serve as a guiding framework for the implementation of labour-intensive projects. They set guidelines for the implementation of labour- intensive works under the most common delivery model, namely “design by employer” (i.e. the contractor undertakes construction on the basis of full designs issued by the employer). In addition, the EPWP Guidelines (2005:2) provide guidance in respect of the:
· Identification of suitable projects;
· Appropriate design for labour-intensive construction;
· Specification of labour-intensive works; and
· Compilation of contract documentation for labour-intensive projects.
According to the EPWP Guidelines (2005:2-3), the employment of local, temporary workers on all EPWPs labour-intensive infrastructure projects has to be in line with the Code of Good Practice for Employment and Conditions of Work for Special Public Works Programmes issued in terms of the Basic Conditions of Employment Act, 1997 (Act No 75 of 1997) and promulgated in Government Gazette, Notice No 6 of January 2002. In this regard the public body has the following responsibilities.
i) Selection of projects
The public body must implement the following types of civil infrastructure projects in a labour-intensive manner:
· Low-volume roads;
· Sidewalks and non-motorized transport infrastructure;
· Storm water drainage; and
· Trenching.
The EPWP Guidelines apply where such projects involve a significant proportion of the construction activities for which the use of labour is specified in the Generic Labour Intensive Specification, i.e. excavation, loading, short distance hauling, off- loading, spreading, grassing and stone-pitching. However, it should be noted that the EPWP Guidelines may be used for labour-intensive projects other than the types of civil infrastructure projects specified above, as long as such projects involve a significant substitution of labour for machinery.
The public body must be satisfied that sufficient local labour (i.e. people willing to work) is available for the project, before proceeding with the project as a labour- intensive project. The public body is encouraged to send its relevant managers on applicable skills training programmes in labour-intensive construction.
ii) Setting the rate of pay
In accordance with the Code of Good Practice for Employment and Conditions of Work for SPWPs, the public body must set a rate of pay (task-rate) for workers employed on labour-intensive projects. The following factors should be considered when setting rates of pay:
· The rate set should take into account wages paid for comparable unskilled work in the local area, per sector if necessary.
· The rate should be an appropriate wage to provide an incentive to work, to reward effort and to ensure a reasonable quality of work. It should not be more than the average local rate in order to ensure that people are not recruited away from other employment and jobs with longer-term prospects.
· Men, women, disabled persons and the aged must receive the same pay for work of equal value (EPWP Guidelines, 2005:2).
iii) Appointment of consulting engineers and contractors
According to the EPWP Guidelines (2005:3), the public body must ensure that:
· The design of the labour-intensive works by consultants is overseen by persons in their employ who have completed the necessary skills training;
· Works contracts are administered by persons in the employ of consultants who have completed the necessary skills training; and
· Works contracts are awarded to contractors who have managers in their employ who have completed the necessary skills training.
Furthermore, the EPWP Guidelines (2005:4-5) stipulate the following important provisions:
· The consultant shall not perform any significant portion of a project involving labour-intensive works under the direction of a staff member who has not completed the National Qualification Framework (NQF) level 7 unit standard 4.
· An employee of a consultant who is responsible for the administration of any works contract involving labour-intensive works must have completed the NQF level 5 unit standard.
· The consultant must provide the employer with satisfactory evidence that staff members comply with the above-mentioned requirements.
· The consultant must design and implement the construction works in accordance with the Guidelines for the Implementation of Labour Intensive projects under the Expanded Public Works Programme (the Guidelines) published by the National Department of Public Works.
· The consultant shall, for monitoring purpose, keep monthly records of, and transmit to the client, data on the following indicators with regard to workers employed:
- Project budget;
- Actual project expenditure;
- Number of job opportunities created;
- Demographics of workers employed (disaggregated into women, youth and persons with disabilities);
- Minimum day-task wage rate earned on project;
- Number of person-days of employment created; and
- Number of persons who have attended a standard EPWP ten-day accredited training course.
Furthermore, the consultant shall certify that the works have been completed in accordance with the requirements of the guidelines and the contract, namely:
a) Whenever a payment certificate is presented to the employer for payment;
and
b) Immediately after the issuing of a practical completion certificate that signifies that the whole of the works has reached a state of readiness for occupation or use for the purpose intended, although some minor work may be outstanding.
1V) Required skills programmes
The EPWP Guidelines (2005:4-5) prescribe a skills programme for both client/employer staff and supervisory and management staff. These are presented in Tables 3.6 and 3.7.
Table 3.6: Skills programme for client/ staff
Personnel NQF Unit standard titles Skills programme description Senior
management and
professionals
7 Develop and promote labour-skills and intensive construction strategies
Skills programme against this single unit standard Middle
(technical)
5 Manage labour-intensive skills programme against management construction
Projects
Skills programme against this single unit standard Middle
(admin)
5 Manage labour-intensive management projects
Skills programme against
this single unit standard Source: Adapted from EPWP Guidelines (2005:25).
Table 3.6 indicates that senior management and professionals must have NQF 7, middle (technical) staff requires NQF 5 and middle (admin) staff should have NQF 5.
This is important as the above staff categories constitute some of the participants in this study.
V) Labour intensive competencies of supervisory and management staff
Table 3.7 displays skills requirements for the management of the EPWP; it indicates that a Team Leader/Supervisor must have NQF 2, a Foreman/ Supervisor NQF 4 and Site Agent/Manager NQF 5. Foremen also participated in this study.
Table 3.7: Skills Programme for supervisory and management staff
Personnel NQF Unit standard titles Skills
Programme description Team leader/
Supervisor
2 Apply Labour-Intensive Construction systems and techniques to work activities
This unit standard must be
completed, and
any one of the 3 unit standards Use Labour-Intensive Construction Methods to
construct and maintain roads and storm- water drainage
Use Labour-Intensive Construction Methods to construct and maintain water and sanitation services
Use Labour-Intensive Construction Methods to construct, repair and maintain structures Foreman /
Supervisor
4 Implement Labour-Intensive Construction systems and techniques
This unit standard must be
completed, and
any one of the 3 unit standards Use Labour-Intensive Construction Methods to
construct and maintain
Roads and storm water drainage
Use Labour-Intensive Construction Methods to construct and maintain
Water and sanitation services
Use Labour-Intensive Construction Methods to construct, repair and maintain structures Site agent /
Manager
5 Manage Labour-intensive Construction processes
Skills Programme against this single unit standard Source: EPWP Guidelines (2005:13).
It can thus be concluded that the EPWP Guidelines provide clear guidance during the planning and implementation phases. The KZN EPWP is managed in line with the EPWP Guidelines. This framework was therefore used to measure the achievements of the programme and therefore forms the basis of this study.
Reference will be made to this framework during data analysis.
3.4.4.3 EPWP training framework
According to the NDPW EPWP Five-Year Report (2009), the NQF and Sector Education and Training Authorities (SETAs) were put in place in 1994. This national training framework enabled the implementation of the EPWP; in 2004, the Construction SETA (known as the CETA) funded the development of unit standards for the design, supervision and management of labour-intensive construction at NQF levels 2, 4, 5 and 7 for small contractors, lower level supervisors, higher level supervisors, technicians, undergraduate engineers and postgraduate engineers. The unit standards were subsequently accredited by the relevant accreditation body;
hence they are taken as a credit towards a formal qualification in the field of civil engineering. Some of these standards are indicated in Tables 3.6 and 3.7, while the discussion of the above skills requirements is limited to the focus groups of this study.
In line with the objectives of the EPWP discussed in Sections 3.2 (EPWP Concept) and 3.4 (EPWP as a Job Creation Government Strategy), training is critical for the successful implementation of the programme. According to the Code of Good Practice for Special Public Works Programmes, gazetted by the DoL, beneficiaries should receive at least two days of training for every 22 days worked. The Guidelines for the Implementation of Labour-Intensive Infrastructure Projects also require that managers of labour-intensive projects be trained in order to build capacity to manage EPWP projects at the required scale (DPW EPWP Third Quarterly Report, 2006).
Training for both staff and beneficiaries is examined in this study.
3.4.4.4 Expansion in the infrastructure sector
According to the NDPW’s EPWP Five-Year Report (2009), the DPW identified two complementary mechanisms for achieving expansion in the infrastructure sector, viz:
· Attaching special conditions to the annual conditional infrastructure grants transferred from National Treasury to the provinces and municipalities; and
· Implementing a labour-intensive contractor learnership programme in partnership with willing provinces and municipalities.
3.4.4.5 Division of Revenue Act
According to the NDPW’s EPWP Five-Year Report (2009), EPWP conditions were imposed on Provincial Infrastructure Grants (PIGs) and Municipal Infrastructure Grants (MIGs) via the 2004 Division of Revenue Act (DORA), which required provinces and municipalities to execute all low volume roads, storm water drains and trenching work in a labour-intensive way in accordance with guidelines produced by DPW, and approved by the South African Local Government Association (SALGA) and National Treasury.
The DORA PIG and MIG schedules 4, 5, 6 and 8 set out the manner in which implementing bodies should implement the EPWP, viz:
· Adhere to the labour-intensive construction methods in terms of the EPWP Guidelines agreed among the DPW, National Treasury and SALGA, and
· Create job opportunities through the EPWP.
According to the EPWP Guidelines (2005), compliance with DORA is compulsory for all implementing bodies; this study will therefore assess the level of departmental compliance.
3.4.4.6 EPWP Logical Framework
The EPWP Logical Framework (2004) outlines the goal, purpose and objectives of the EPWP; this is reflected in Table 3.8.
Table 3.8: Outline of the EPWP Logical Framework Aspect Description
Goal To alleviate unemployment for a minimum of one million people in South Africa, of which at least 40% should be women, 30% youth and 2% disabled, between 2004 and 2009.
Purpose To achieve this goal, the government would:
· Over the first five years of the programme create temporary work opportunities and income for at least one million unemployed people;
· Provide needed public goods and services, through the use of labour intensive methods, at acceptable standards, through mainly public sector resources, private and public sector implementation capacity; and
· Increase the potential of participants to earn a future income by providing work experience, training and information related to local work opportunities, further education and training and SMME development.
Objectives This would be achieved by creating work opportunities in the following four sectors:
· Increasing the labour intensity of government-funded infrastructure projects;
· Creating work opportunities in public environmental programmes (e.g. Working for Water);
· Creating work opportunities in public social programmes (e.g.
community care workers); and
· Utilizing general government expenditure on goods and services to provide the work experience component of small enterprise learnership/incubation programmes.
Target The programme would target the unemployed and marginalized, among others, namely:
· Unemployed, able and willing to work
· Largely unskilled;
· People not receiving social grants;
· The poor;
· Women;
· People living with disabilities; and
· Youth, of which an estimated 70% were unemployed at the time.
Source: Adapted from EPWP Consolidated Programme Overview and Logical Framework (2004).
3.4.4.7 EPWP legal framework
In addition to the policies discussed in section 2.7.2 (EPWP Legislative and Policy Frameworks), the eThekwini EPWP (2007:4) stipulates the following cross-cutting EPWP legal framework:
a) The Inter-governmental Relations Framework Act 13 of 2005;
b) The Integrated Development Plan (IDP);
c) The Division of Revenue Act; and
d) The Code of Good Practice for Special Public Works Programmes.
All EPWP sectors, including the infrastructure sector, comply with the above legislation.
In line with the above EPWP Frameworks, the EPWP’s broad objectives and the EPWP in relation to the spheres of government outlined in Section 2.6, the KZN DPW made the commitments tabulated in Table 3.9.
Table 3.9: EPWP departmental commitments Departmental commitments
Vision “To become leaders in job creation and empowerment of historically - disadvantaged individuals.”
Mission “To provide the construction of infrastructure through labour-intensive methods of construction.”
EPWP Broad Objectives
Earn an income:
To enhance the ability of workers to earn an income, either through the labour market or through entrepreneurial activities.
Gain work experience:
· To provide unemployed people with work experience;
· To create a number of temporary job opportunities for 2009/ 10; and
· To create a number of full time equivalent (FTE) decent jobs in 2009/
10.
Acquire job related training & skills development:
To provide education, on the job training and skills development programmes to targeted beneficiaries.
Diversify the Expanded Public Works Programme:
· To promote the implementation of EPWP principles in other non- infrastructure sectors within the department.
· To promote the sustainability of the impact of the programme through the adoption of an Infrastructure Maintenance Programme.
EPWP Department al
Objectives:
· To integrate the EPWP Programme with other operations within the Department of Public Works.
· To provide contractors with relevant training to comply with EPWP requirements.
· To ensure that consultants involved in the implementation of the EPWP comply with EPWP requirements.
· To capacitate beneficiaries with the necessary technical and life skills.
· To provide regular feedback to stakeholders on the departmental implementation of the EPWP.
· To develop a poverty alleviation programme with clear objectives, targets and informed budget in line with ASGISA and JIPSA.
Outputs: · Developed and promoted a labour-intensive construction programme.
· Trained and capacitated emerging contractors and historically disadvantaged individuals on the EPWP.
· Appointed relevant consultants that comply with EPWP requirements.
· Empowered HDIs (women, youth and the disabled) with technical skills, knowledge of HIV/AIDS and life skills.
· Developed a poverty alleviation programme with clear objectives and an informed budget which is in line with ASGISA and JIPSA.
· Conducted an impact assessment of the EPWP.
· Produced services based on preferential procurement and the Provincial Spatial Economic Development Strategy.
Source: KZN EPWP Annual Performance Plan (2009).