ELRC Annual Report 201213 Presentation to Parliament 10

ELRC Annual Report 2012/13 Presentation to Parliament 10 October 2013 “Education as a fundamental service and the role of all stakeholders to ascertain labour peace in public education. ” 1

Honourable members of the Education Portfolio Committee: Ms HH Malgas, Chairperson ANC Ms N Gina Ms NW Madikizela-Mandela Mr ZS Makhubele Ms AC Mashishi Ms FF Mushwana Mr JJ Skosana Mr K Moepeng Mr C Moni Mr DC Smiles Ms A Lovemore Ms L Adams Mr W Madisha Mr AM Mpontshane Ms HS Msweli Mr MH Hoosen Mr RB Bhoola Mr KJ Dikobo ANC ANC DA DA COPE IFP ID MF AZAPO 2

Table of Contents Section A Strategic Overview Strategic outcome oriented goals Legislative and Other Mandates Section B Service delivery environment Organisational environment Key policy developments Programme 1: Programme 1. 2: Programme 2. 1: Programme 3: Programme 4: Programme 5: Dispute Management Services Professional Development and Training Collective Bargaining Services – National Collective Bargaining Services – Provincial Executive Services Corporate Services Capital Expenditure Section C Annual Financial Statements Conclusion 3

Section A 4

Strategic Overview Vision To improve the quality of teaching and learning through labour peace. Mission Quality services for excellence in teaching. Values The ELRC has adopted the following values: § Professionalism: Promote behaviour that is generally accepted to be correct and proper; § Transparency: Ensure access to information by citizens; 5

Strategic Overview (Cont. ) § Independence: The right to making informed decisions independently that minimise or avoid conflict of interest; § Accountability: Accepting responsibility for actions and decisions taken with allowance for corrective action and penalty for wrong doing; § Fairness and equity: Adjudication of grievances and disputes; § Social Responsibility: Respond to the social issues of the day; and § Efficiency: Delivery of quality services economically. 6

Strategic Outcome Oriented Goals Goal 1: Research and monitoring and evaluation activities provide an evidence base for improved policies and policy implementation in basic education. Progress Not Achieved: Item on ‘Research’ removed from the Council’s agenda. Goal 2: Achieved: Provided training to Dispute Practitioners. Equal importance is attached to proactive dispute prevention and dispute resolution. Goal 3: In Progress: Management Plan with set timeframes to Collective bargaining processes maximise address the Council’s underperformance. the scope of the parties’ shared interest. Recommendations of the Lekgotla to be implemented in the 2013/14. Goal 4: Achieved: 72 panellists and commissioners trained. Provide appropriate support and training for all involved in dispute resolution and collective bargaining. Goal 5: Achieved: Survey conducted on the effectiveness of Sound communication strategies, special the Council’s communication strategy initiatives and campaigns support and complement the core activities of the Council. 7

Legislative and Other Mandates Applicable Legislation § § Labour Relations Act 66 of 1995 Public Finance Management Act 1 of 1999 Employment of Educators Act 76 of 1998 Further Education and Training Colleges Amendment Act 3 of 2012 Other Mandates § Service Delivery Agreement of the Minister of Basic Education § Action Plan to 2014: Towards the realisation of schooling 2025 8

Section B: Performance Information 9

Service Delivery Environment EXCO Lekgotla held in December 2012 to improve performance FOCUS AREAS FOR 2013/14 Dispute Management Services Dispute Prevention and Facilitation - Proactive approach – a focus on prevention - Training of Panellists and Parties (emphasis on Dispute Resolution Practitioners) - Establishment of Dispute Prevention Committees / Task Team (all provincial chambers) Dispute Resolution - Emphasis on: “Appointments and Promotions” - Emphasis on: Special disputes involving a child as a victim 10

Service Delivery Environment (Cont. ) FOCUS AREAS FOR 2013/14 Collective Bargaining Services Temporary Educators Incentives Conditions of service for ECD practitioners Research (RPL and ECD) 11

Organisational Environment FOCUS AREAS FOR 2013/14 Supply Chain Management (SCM) unit. Career and Succession Planning Strategy will be employed to ensure that existing skills are developed and new talent is cultivated. Challenge: Fixed income. 12

Key Policy Developments & Legislative Changes § Higher Education and Training Laws Amendment Act 25 of 2010 § FETC Amendment Act 3 of 2012 (Scope of the Council) Future considerations § LRA Amendment Bill of 2012 § Basic Conditions of Employment Amendment Bill of 2013 13

Programme 1 Dispute Management Services 14

Dispute Management Services Purpose: To manage disputes proactively (prevention and resolution) Sub-programme: Professional Training and Development Strategic Objectives: § Provision of dispute resolution services § Resolution of special disputes § Prevention of disputes § Training and development services § Professional development and training 15

Dispute Management Services (Cont. ) Performance Information Strategic objectives Provision of Dispute Resolution Services Conciliation finalised within 30 days from registration of dispute Resolution of ordinary arbitrations within 180 days from when conciliation failed Resolution of special disputes involving children Resolution of promotion arbitrations within 120 days from when conciliation failed Resolution of arbitrations where a child is a victim within 120 days from when conciliation failed Planned Target 2012/2013 Actual Achievement 2012/2013 100% 97% Council could only schedule 88% of its cases in the first quarter. 70% of arbitrations to be resolved 51% Due to the large number of adjournments and postponements. 70% of arbitrations to be resolved 51% Due to matters remaining part heard and not being finalised in a single sitting. 70% of arbitrations to be resolved 51% Due to the complexity of the cases and the number of witnesses under subpoena. 16

Dispute Management Services (Cont. ) Strategic objectives Prevention of disputes 60% of grievances are finalised per province to prevent possible disputes Training and Development Training and development to 240 DRPs and Commissioners Professional Development and Training Relevant professional development and training is provided to 70 DRPs in all Provinces Planned Target 2012/2013 Actual Achievement 2012/2013 60% of grievances are finalised per province to prevent possible disputes 20% Only Free State, North West and Mpumalanga submitted reports on finalised grievances. Training and development is provided to 240 Dispute Resolution Practitioners and Panellists 239 Due to nonavailability of Panelists. Relevant professional development and training is provided to 70 DRP’s in all Provinces 72 Prospective Panellists were accommodated at no extra cost. 17

Dispute Management Services (Cont. ) Referrals: § 673 disputes received § Predominantly related to ULP – Promotion and Appointments Jurisdiction: Out of 673 referrals: § 395 (59%) in jurisdiction § 192 (29%) out of jurisdiction § 86 (12%) determination through condonation 18

Dispute Management Services (Cont. ) Provincial Referrals 19

Dispute Management Services (Cont. ) Nature of disputes referred Out of 673 disputes referred: § 193 (29%) ULP – Promotion and Appointments § 253 (38%) Alleged Unfair Dismissals § 97 (14%) Other ULP’s § 70 (10%) Interpretation of Collective Agreements § 42 (6%) Basic Conditions of Employment Act enforcements § 17 (3%) Sexual offences involving a learner § 1 dispute of mutual interest 20

Dispute Management Services (Cont. ) Disputes by outcome Out of 415 disputes finalised: § 161 arbitration awards § 69 settled at arbitration § 32 settled at conciliation § 81 withdrawn ü 32 withdrawn at conciliation ü 49 withdrawn at arbitration § 45 dismissed ü 22 at arbitration ü 23 at conciliation § 27 rulings 21

Dispute Management Services (Cont. ) Labour Court Reviews 22

Dispute Management Services (Cont. ) Strategy to overcome areas of underperformance § Provision of practical training to DRS Practitioners. § Minimise postponements. § Encourage Panellists to enforce Clause 64. 7 of the ELRC constitution. § Appropriate venues for hearings where a child is a victim. § Intermediaries appointed to protect the Rights of a Child. § Increase panel of Conciliators, Arbitrators and Interpreters. § Non-compliance of Panellists will be monitored. 23

Programme 1. 2 Professional Development and Training 24

Professional Development and Training Purpose: To improve the quality of Panellists and Dispute Practitioners. Strategic Objective: § Improve qualifications of Dispute Resolution Practitioners. 25

Professional Development and Training (Cont. ) Performance Information Strategic objectives Professional Development and Training Improve qualifications of Dispute Resolution Practitioners Planned Target 2012/2013 312 Actual Achievement 2012/2013 311 26

Programme 2 Collective Bargaining Services: National 27

Collective Bargaining Services Purpose: § § § To contribute to the Council’s vision of a strengthened social contract between government, teacher unions and civil society. To promote the best possible fit between good educational outcomes and a fair deal for the teaching profession. To promote collective bargaining at national and provincial levels. To promote respect for international conventions and labour legislation in the management of collective bargaining. To support and facilitate special initiatives and campaigns. 28

Collective Bargaining Services (Cont. ) Sub-programme: Collective Bargaining (Provincial) Strategic objectives: § Collective bargaining on matters of mutual interest in public education. § Provision of facilitation services to support collective bargaining at national and provincial levels; and § Research on teacher welfare and national development issues. 29

Collective Bargaining Services (Cont. ) Performance Information Strategic objectives Planned Target 2012/2013 Actual Achievement 2012/2013 Collective Bargaining Conclude bargaining on identified 20% of agreed matters of mutual interest in interest are concluded successfully in public education bargaining meetings Facilitation Services To ensure adequate post provisioning in all nine provinces Research Services Evidence based teacher welfare and national development issues identified 10% Five (5) items are work in progress. One (1) item is going through mandating process. Two (2) items were taken off the agenda of Council as they were no longer considered a priority. 90% distribution of posts Not Achieved No adequate evidence received. Attend Education Conference Not Achieved No Education Conference was held during the financial year as Council had not identified any 30 issues.

Collective Bargaining Services (Cont. ) Overview Collective Agreements concluded: § Collective Agreement 1 of 2012: Occupation Specific Dispensation (OSD) For Education Therapists, Counsellors And Psychologists Employed In Public Education. § Collective Agreement 1 of 2013: Vote Weights of Trade Unions that are parties to Council. § 5 Collective Agreements ratified (4 FETCBU and 1 Free State Chamber) 31

Collective Bargaining Services (Cont. ) Strategy to overcome areas of underperformance § A Pre-Bargaining workshop is to be convened in 2013/14 to finalise the management plan on bargaining issues for approval by Council. § More emphasis to be placed on adherence to agreed timeframes as per the management plan. 32

Programme 2. 1 Collective Bargaining Services: Provincial 33

Collective Bargaining Services: Provincial Purpose: To promote collective bargaining at provincial level. Performance Indicator Planned Target 2012/2013 Preparing for and managing collective bargaining To attend a national workshop for planning and evaluation of performance of chamber objectives Evaluation and planning done To convene a workshop to identify issues of mutual interest for bargaining Issues of mutual interest identified Actual Achievement 2012/2013 8 provinces achieved Not Achieved: Limpopo 3 provinces achieved Not Achieved: FS, GP, KZN, Limpopo, NW and WC Post Provisioning To prepare for consultation process Consultation concluded in the 2 nd term 8 provinces achieved Not Achieved: Limpopo 34

Collective Bargaining Services: Provincial Performance Indicator Information Sharing Employee Wellness Program To see the improvement in the health and morale of employees Planned Target 2012/2013 Actual Achievement 2012/2013 Declining rate of absenteeism 2 provinces achieved Not Achieved: FS, GP, Limpopo, MP, NC, NW and WC Disputes To minimise the number of disputes declared The number of disputes minimised 7 provinces achieved Not Achieved: GP and MP Safety at schools To ensure that safety at schools plan is adopted Skills development To ensure that skills gaps identified during evaluation process are addressed Employment Equity To contribute to the improvements in achievement of equity targets Plan analysed and adopted 5 provinces achieved Not Achieved: KZN, Limpopo, MP and NC 8 provinces achieved Not Achieved: KZN 4 provinces achieved Not Achieved: FS, GP, KZN, NC and WC Performance Management IQMS To monitor the evaluation of educators in terms of the performance management system Educators are evaluated Identified educators with skills gaps trained Equity targets improved 6 provinces achieved Not Achieved: GP, KZN and Limpopo 35

Collective Bargaining Services: Provincial Performance Indicator Planned Target 2012/2013 Implementation and Monitoring of Collective Agreements Post Provisioning Reports received analysed by To monitor the distribution of additional chamber posts to schools as per the staff establishment Ensure that selected schools Implementation of Collective on national sample are Agreements evaluated in line with the nine i) IQMS (9) focus areas ii) PMDS iii) WSE To monitor the evaluation of educators in terms of the performance management system Reduction in number of PILIR Policy on incapacity leave and ill health cases retirement (PILIR) To ensure that the number of PILIR cases drop and receive progress reports, analysed and adopted by chamber Temporary Educators To monitor the extent of utilisation of temporary educators Temporary educators utilised maximally and effectively Reduction in the pool of temporary educators Actual Achievement 2012/2013 8 provinces achieved. Not Achieved: EC 8 provinces achieved. Not Achieved: KZN 5 provinces achieved. Not Achieved: FS, GP, KZN and WC 8 provinces achieved. Not Achieved: KZN 36

Programme 3 Executive Services 37

Executive Services Purpose: § § Management of Council’s service; Sound financial and risk management; Sound corporate governance; Build and maintain the corporate image of the ELRC. Sub-programmes: § § § Facilitation Services; Financial management, accounting and compliance services; and Communication services. 38

Executive Services (Cont. ) Strategic Objectives: § § Maintenance of labour peace; Unqualified audit; Develop and maintain internal communication; Comply with the Promotion of Access to Information Act (PAIA) and PFMA. 39

Executive Services (Cont. ) Performance Information Strategic objectives Planned Target 2012/2013 Actual Achievement 2012/2013 Facilitation Services Prevention of disputes and promoting, collaboration and collective bargaining Capacity to prevent disputes is enhanced in collaboration with PEDs and unions; mediators are identified § Training on dispute prevention and resolution – 9 provinces. § Facilitation in Eastern Cape § Eastern Cape Collective Agreement No. 1 of 2012 – Appointment of Temporary Educators. Respond to requests by MECs, HODs and provincial trade union leadership for intervention and facilitation Satisfied parties and minimal disruption to teaching and learning Achieved No requests were received from provincial departments. 40

Executive Services (Cont. ) Strategic objectives Planned Target 2012/2013 Financial management, accounting and compliance services To ensure an unqualified audit 0 opinion and no repeat audit findings Communication Services Communication services Actual Achievement 2012/2013 0 Compile regular newsletters on current developments in labour law and collective bargaining New Negotiator and Labour Bulletin published. Conduct market research on the level of awareness among teachers regarding the services offered by the Council and the quality of service offered by the Media and Communications Department to clients Market research conducted. Provide relevant information services Information services provided. Promote the image of the teaching profession. Generally promote fraternal relationships with all stakeholders Attended events convened by stakeholders and participated in marketing events - Education Week and World Teachers Day. 41

Executive Services (Cont. ) Strategy to overcome areas of underperformance Communication Services New marketing strategies for 2013/14: § Community newspapers § Radio stations (9 provinces) § Social media platforms § Improved website § Partnership with SOMAFCO Trust § New Negotiator and Labour Bulletin published on a quarterly basis 42

Programme 4 Corporate Services 43

Corporate Services Purpose: To provide financial, human resource and administrative support. Sub-programmes: § Financial Accounting; § Administration; and § Mobilising Employee Services 44

Corporate Services (Cont. ) Strategic Objectives: § § § Maintenance of financial and administrative systems Procurement Train and develop staff Healthy and safe work environment Maintenance of premises and security Information technology and communication system 45

Corporate Services (Cont. ) Performance Information: Strategic objectives Planned Target 2012/2013 Actual Achievement 2012/2013 No adverse impact on the operations Maintain and improve the finance and administrative systems No adverse impact on the operations Procure goods and services within policies and guidelines No major disruption to operations Maintain good labour relations Zero grievances Train and develop staff 80% of employees trained and developed 60% 20% were not trained as there was no workplace skills plan in place. Ensure a healthy and safe work environment Zero injuries at work Maintain and improve the premises and security systems respectively No major incident 46

Corporate Services (Cont. ) Performance Information: Strategic objectives Provide reliable information technology and communication systems Planned Target 2012/2013 Systems older than five years Actual Achievement 2012/2013 80% Due Diligence Report from SITA has detected areas that needs attention. Awaiting plan from SITA on the implementation of recommendations. 47

Corporate Services (Cont. ) Strategy to overcome areas of underperformance § § § Lack of SCM unit hinders procurement function Underperformance caused by slow process of filling vacant positions Vacant positions will be filled in 2013/14 financial year 48

Programme 5 Capital Expenditure 49

Capital Expenditure Purpose: To provide capital resources. Strategic Objectives: § Manage property and assets § Procurement Planned Target: § Building Refurbishment Project 50

Capital Expenditure (Cont. ) Performance Information: Strategic objectives Manage the property and assets of the Council Planned Target 2012/2013 Property maintained on a regular basis Timeous procurement to be delivered Services not hampered due to non delivery Actual Achievement 2012/2013 Not Achieved EXCO revised specifications of refurbishment. Task team to start process in the new financial year. Services not hampered due to non delivery. 51

Section C: Annual Financial Statements 52

Financial Highlights Levies Received 2013 2012 49, 319 49, 693 2011 49, 422 Number of Contributors 410, 991 414, 104 411, 850 53

Financial Highlights (Cont. ) FINANCIAL PERFORMANCE 2013 R’ 000 2012 R’ 000 2011 R’ 000 Total Income 49, 321 49, 692 49, 422 Total Expenditure 43, 904 47, 938 50, 266 Operating Surplus/(deficit) 5, 417 1, 755 (844) Interest Income 4, 946 4, 492 4, 365 Surplus/(deficit) 10, 363 6, 247 3, 521 54

Financial Highlights (Cont. ) FUNDING OF OPERATIONS ACTUAL BUDGET ACTUAL% BUDGET % DRS TRAINING DPSS (FTSS) CBS GOVERNANCE RESEARCH PROJECTS SUPPORT SERVICES STAFF COST 5, 833 2, 157 9, 250 4, 538 1, 322 544 -28 6, 185 14, 648 6, 330 3, 353 11, 212 5, 730 1, 539 0 483 9, 680 20, 486 14 5 21 10 3 1 0 14 33 10 6 19 10 2 TOTAL 43, 905 59, 357 100 1 16 35 55

Financial Position LIQUIDITY § Ability to pay short term debt § Ideal ratio >1 § CASH 110 § CURRENT LIAB. 52 SOLVENCY § Ability to survive in the long term § Avoid insolvency § Remain solvent 56

Future Challenges REVENUE § Revenue management § Budgetary constraints EXPENDITURE § Procurement and contract management § Expenditure management § Fruitless and wasteful expenditure – slight decrease OTHER § Performance audit § Pre-determined objectives 57

Conclusion 2013/14 financial year heralds new period of sustained improvement. Council appreciates oversight role of Portfolio Committee. 58