JOB CREATION IN PUBLIC WORKS PROGRAMMES AND THE
CONSTRUCTION INDUSTRY
Job creation in public works programmes
In May 1996, the Development Chamber convened a special session
on job creation. Arising from the session, a job creation panel was
established to develop a framework agreement on job creation in
public works with special reference to the community-based public
works programme. Subsequent to that, it was also agreed to
deliberate on job creation in the construction industry. Proposals
have also been made with respect to possible follow up on the job
creation programme of the National Economic Forum, which is now
close to completion. The framework agreement follows for Executive
Council consideration.
Attached: Way forward on job creation in public works and
the construction industry with special reference to community-based
public works programmes
Agreement on job creation in public works and the
construction industry with special reference to community-based
public works programmes
Problems and obstacles with the existing community-based
public works programmes and proposals
1. CONTINUATION OF THE COMMUNITY-BASED PUBLIC WORKS
PROGRAMME
It is recommended that the existing community-based public works
programme should be continued, in accordance with the proposals
made in the agreement on job creation in public works and the
construction industry.
2. CONSTRUCTION INDUSTRY BILATERALS
2.1. The agreement further proposes that government, labour,
private construction firms and communities should work on the
reaching of an accord.
2.2. In taking forward this issue, it should be noted that
bilaterals between government and the construction industry on
restructuring of the construction industry are currently being
undertaken.
2.3. The chamber should establish whether issues contained in
this agreement are considered in the bilaterals, and whether these
issues would be tabled at Nedlac.
2.4. The chamber will then establish ways to accommodate issues
proposed in this agreement within the existing bilaterals or
propose the expansion of the bilaterals.
3. FOLLOW-UP TO NATIONAL ECONOMIC FORUM (NEF) JOB CREATION
PROGRAMME
3.1. The Nedlac secretariat and the DBSA will undertake a joint
evaluation of the NEF job creation programme.
3.2. The NEF Job Creation Programme has equipped Nedlac
constituencies to play a meaningful role and the Development Bank
of Southern Africa (DBSA) has served as the secretariat for
implementing the programme.
3.3. It is agreed to explore a follow-up project to the NEF
programme, involving the Department of Public Works, the
Construction Industry and Nedlac constituencies.
AGREEMENT ON JOB CREATION IN PUBLIC WORKS AND THE CONSTRUCTION
INDUSTRY WITH SPECIAL REFERENCE TO THE COMMUNITY-BASED PUBLIC WORKS
PROGRAMME
1. BACKGROUND
1.1. In May 1996, the Development Chamber convened a special
session on job creation. Arising from the session, a job creation
panel was established to develop a framework agreement on job
creation in public works with special reference to the
community-based public works programme. Subsequent to that, it was
also agreed to deliberate on job creation in the construction
industry. The framework agreement follows.
1.2. The chamber intends to expand its consideration of job
creation issues to cover other areas raised in the special session
such as the broader national public works programme; SMMEs;
infrastructure investment and an evaluation of the NEF job creation
programme.
2. PREAMBLE
2.1. The current high level of unemployment in South Africa
makes job creation a critical challenge. The ongoing development
and implementation of macro economic strategies which provide
labour absorbing growth is therefore essential.
2.2. In the interim, there is a need to address the dire
consequences of unemployment. Micro-level programmes such as the
community-based public works programme could play a valuable role
in encouraging communities to get involved in job creation efforts
and at the same time kick-start local economic development.
2.3. This is particularly important in the short-term given that
the benefits of a successful macro economic strategy are likely to
be felt only in the medium to long-term.
2.4. This document seeks to identify some of the problems and
obstacles in the effectiveness of the existing community-based
public works programme in creating sustainable employment.
3. INTRODUCTION
3.1. The national public works programme (NPWP) was established
as an initiative to assist the unemployed. It is an enabling
framework that regulates the terms under which public contracts are
granted, including the question of wage rates. It does not actually
fund any employment programmes, but is the mechanism through which
the number of people employed through public sector contracts can
be increased.
3.2. The community-based public works programme was launched as
a presidential lead project within the NPWP. A grant of R250
million was allocated from the RDP fund to finance the CBPWP until
the end of the 1996 fiscal year and as yet there is no guarantee of
funding beyond this period.
PROBLEMS AND OBSTACLES WITH THE EXISTING COMMUNITY-BASED PUBLIC
WORKS PROGRAMMES AND PROPOSALS
1. EVALUATION AND MONITORING OF PROJECTS
1.1 Problem statement
1.1.1. The CBPWP lacks formal, built-in evaluation and
monitoring mechanisms.1.1.2. The lack of information means that it
is difficult to assess whether the CBPWP is creating jobs and
skills by delivering infrastructure through processes that are both
community driven and cost-effective. This situation was noted by
the presidential commission to investigate labour-market policy and
led to the commission's unwillingness to recommend an increased
commitment to the CBPWP at this stage.1.1.3. The lack of
information has meant that potentially successful job creation
projects may not have been highlighted, resulting in the mixed
perception of the CBPWP.
1.2. Proposals
1.2.1. The Public Works Department should establish a mechanism
for the independent, standardised evaluation and monitoring of its
projects. It should be noted that the Public Works Department has
commenced independent evaluation of their programmes.
1.2.2. Information obtained should be taken into account in
awarding subsequent contracts and allocating further funds to a
project.
1.2.3. Evaluation and monitoring procedures must be integral to
any programme from the earliest proposals, through to ongoing
monitoring of the project during its life and concluding with
post-project evaluation.
1.2.4. A periodic report should be made to the Development
Chamber of Nedlac for information and recommendation.
2. INSUFFICIENT SKILLS DEVELOPMENT AND UPGRADING THROUGH
TRAINING
2.1. Problem statement
2.1.1. Projects emanating from the CBPWP often have conflicting
objectives, e.g. the need to create an essential asset quickly
versus the need to adequately train the workers on the project.
2.1.2. Evidence thus far shows that the nature of programmes
instituted, do not allow sufficient skills development, upgrading
and training. This has a negative impact on the CBPWP's ability to
serve as a springboard for more sustainable employment in the long
run.
2.1.3. The short duration of many of the projects does not lend
them to training and capacity building.
2.1.4. Training facilities/organisations are:
(a) Insufficient in number.
(b) Inaccessible to rural areas.
(c) Not sufficiently well-known.
2.2. Proposals
2.2.1. Objectives of a specific project must be made explicit.
When there are conflicting objectives, they must be given clear
priority ratings.
2.2.2. Government should ensure that all job creation programmes
funded through the CBPWP have a satisfactory training component.
State funding of projects should be contingent on the integration
of an adequate training component into the project. It should be
noted however, that there are special instances where training is
not required due to the nature of the task at hand, e.g. digging a
trench.
2.2.3. Standards must be developed in keeping with the South
African Qualifications Authority in order to ensure that training
offered is of such quality that the beneficiaries are employable,
but this should not affect the process of delivery.
2.2.4. A list of training organisations prepared by the public
works programme exists. The Department has to ensure that an
effective communication strategy is developed to circulate this
information widely (e.g. to attach the list on tender forms).
2.2.5. The Department of Labour has to be engaged by the Public
Works Department in order to explore an integrated training
mechanism which include labour-intensive programmes.
3. SHORT-TERM NATURE OF PROJECTS AND OUTPLACEMENT INTO JOBS ON
COMPLETION
3.1. Problem statement
3.1.1. Existing projects are providing short term relief for the
unemployed and not providing further opportunities for
employment.
3.1.2. The temporary nature of the funding hinders appropriate
planning for existing programmes and new projects. This contributes
to the poor performance and high turnover rates amongst staff
members. It also prevents programmes being implemented more
effectively in a second round.
3.1.3. Job insecurity may have the effect that people engaged in
the project work less productively in an attempt to extend their
period of paid employment. By stalling a project in this way, costs
are increased and labour intensive methods are undermined. The
community who stands to benefit from the completion of the project
is prejudiced by its delay.
3.2. Proposals
3.2.1. Short term projects that do not allow sufficient time for
training, the acquisition of skills and the achievement of the
other benefits of labour intensive methods should be discouraged,
except in the special circumstances where training is not a
prerequisite.
3.2.2. Opportunities beyond the initial project must be
addressed in advance, with a focus on assistance regarding possible
career pathing by industry and development plans.
3.2.3. Training boards should develop learning pathways during
and after completion of job creation schemes. (For example, see the
electrification job creation schemes funded through the RDP leading
ultimately to the acquisition of skills credited by the relevant
training board.)
3.2.4. If continued, the CBPWP should allow for multi-year
programming through continuity in funding. (International
experience shows that programmes of this nature should run for a
period of at least four to six year period in order to kick-start
local economic activity.)
3.2.5. A full assessment of the programme should be undertaken
at regular intervals of each year of the funding period. If the
programmes can be shown to be performing efficiently, consideration
should be given to increasing the level of funding.
4. DESIGNING LABOUR INTENSIVE PROJECTS WITHOUT COMPROMISING
QUALITY OF SERVICES, SPEED OF DELIVERY AND COSTS
4.1. Problem statement
The choice of experts both within and outside of a community is
a course for considerable tension and conflict. This in turn has
the likely result of increased delivery time and subsequent
increases in project costs.
4.2. Proposals
4.2.1. A strong facilitation process must be established prior
to the commencement of a project.
4.2.2. The experience gained from successful projects and
expertise within government must be shared.
5. TARGETING THE MOST NEEDY: WOMEN, YOUTH, THE DISABLED AND
RURAL COMMUNITIES
5.1. Problem statement
5.1.1. Although the balance between women and men working in
these projects is still generally biased towards men, even those
women that participate in this employment perform menial tasks e.g.
carrying, making tea and assisting men.
5.1.2. Targeting of the most needy is difficult, in the first
instance because they are often difficult to reach given poor
channels of communication and inadequate access to labour market
information flows.
5.1.3. The inclusion of pregnant women and the disabled is
perceived to be counter productive to the cost effectiveness and
delivery time of the project.
5.2. Proposals
5.2.1. A monitoring system should be developed which can pick up
or anticipate problems and suggest corrective action.
5.2.2. A standard criterion for targeting poor women and youth
does not exist and should be developed.
5.2.3. Public works programmes should continue to target the
unemployed poor and marginalised sectors in keeping with the RDP
principles. When considering the costs of a project, the social
benefits of including the most needy should be given sufficient
weight. The allocation of funds should be made contingent upon
inclusion of these groups and reports on the project should include
the relevant information to evaluate this commitment.
5.2.4. SMMEs should be promoted in rural areas to focus on
marginalised groups, particularly the disabled people. To this
extent, the Development Chamber constituencies at Nedlac should
seek to influence debates on the promotion of small business. The
chamber should give specific attention to the following issues:
- Lack of resources.
- Inability to obtain credit.
- Lack of credibility.
- Lack of commercial, administrative, managerial and technical
skills.
5.2.5. The Department of Public Works, in collaboration with the
Department of Trade and Industry should aim to improve targeting of
marginalised sectors and the promotion of SMMEs in rural areas
through the current bill on SMMEs.
6. ALLOCATION OF FUNDS BY THE DEPARTMENT OF PUBLIC WORKS
6.1. Problem statement
6.1.1. The allocation of funds has not been sufficiently
transparent, neither has it taken place in terms of any published
policy.
6.1.2. Local government capacity to be involved in this
programme has not been fully investigated.
6.1.3. There is a lack of coordination between various
government departments and national, provincial and local
structures. In some instances government departments have directly
allocated funds to local communities creating problems of
duplication, additional costs and the division of communities.
6.1.4. There is a strong perception at community level that the
RDP principles are given insufficient weight in the allocation of
funds.
6.2. Proposals
6.2.1. Policy in regard to the allocation of funds needs to be
finalised and published.
6.2.2. The government should report to the chamber on progress
being made by the National Development Agency, currently developing
policy for the allocation of funds to CBOs and NGOs.
6.2.3. The guidelines for the establishment of local development
structures ratified by the chamber should be utilised to enhance
the identification, consultation and facilitation of programmes and
projects at community level.
6.2.4. Legitimate local level institutions should enact and
oversee the CBPWP, to the extent that local authority elections
have now made this possible. This should enhance greater community
participation and ensure that public works initiatives are
assimilated into community development plans.
6.2.5. In allocating funds, the department should, in keeping
with the RDP principles, prioritise education and housing needs in
the allocation of its budget. To this end, priority should be given
to the construction and maintenance of school buildings,
particularly in the rural areas and the accelerated delivery of
housing.
7. MAINTENANCE OF COMPLETED PROJECTS
7.1Problem statement
It is not always clear who must assume responsibility for
maintaining the finished asset upon completion. As maintenance
requires the allocation of funds, this is crucial for sustaining
the completed project.
7.2. Proposal
Maintenance responsibility, including issues of funding for
maintenance, needs to be established at the commencement of a
project..
8. SUPPLY MATERIALS
8.1.1. In many instances, materials required for the project are
manufactured at a considerable distance from the location of the
project. This not only increases the cost of transporting materials
but also operates against small contractors at the place of the
project.
8.1.2. In many instances there is nowhere to store large
quantities of materials within key communities. This necessitates
the transporting of small loads from the manufacturer. As this is
uneconomical, there is an unwillingness to supply materials to
projects.
8.2. Proposals
8.2.1. In awarding contracts, preference should be given to
contractors who are located within or near the community.
8.2.2. Appropriate facilities for the storing of large
quantities of building materials and the necessary security should
be considered by the private contractors and supported by
government, organised construction industry, labour, community and
the Public Works Department should negotiate mechanisms to realise
this objective.
9. THE USE OF THE CONSTRUCTION INDUSTRY AS ONE OF THE VEHICLES
FOR LABOUR INTENSITY
9.1. Problem statement
9.1.1. The community-based public works programme by it's nature
is located within the Construction Industry. Established practice
of the construction industry makes it difficult to embrace the
labour intensive construction methods due to a variety of problems
e.g.:
(a) Design of the project often doesn't encourage use of labour
intensive friendly methods of construction.
(b) The cost of labour intensive methods may be high due to
increased direct financial costs and indirect costs such as
increased time to complete projects.
(c) Perceived lower productivity on the project site.
9.1.2. The system of payment at a project level remains
controversial. The controversy is based on whether workers should
be paid on an hourly basis or by task.
9.2. Proposals
9.2.1. The NPWP should be a mechanism for creating employment in
the construction industry. The creation of an enabling environment
which encourages labour intensive methods should be considered.
Government should hasten a process which includes labour, private
construction firms and communities in arriving at an accord.
9.2.2. The Department of Public Works should assist in promoting
awareness in all the relevant departments on labour-intensive
methods of production. To increase understanding of, and support
for, labour intensive methods the Department of Public Works should
make information available demonstrating the successful utilisation
of labour intensive construction.
10. MONITORING
Projects implemented according to the agreement should be
monitored by the Public Works Department.