NATIONAL ECONOMIC DEVELOPMENT AND LABOUR COUNCIL NEDLAC Presentation

NATIONAL ECONOMIC DEVELOPMENT AND LABOUR COUNCIL (NEDLAC) Presentation to Labour Portfolio Committee for the period 01 April 2015 – 31 March 2016 12 October 2016

TABLE OF CONTENTS q INTRODUCTION q LEGEND q OVERALL ACHIEVEMENTS PER STRATEGIC OBJECTIVE AND PER PROGRAMME QUARTER 1, 2, 3 & 4 2015 -16 q CHALLENGES EXPERIENCED AND REMEDIAL ACTION TAKEN q FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE q PRIORITIES FOR THE FINANCIAL YEAR 2016/17 – GOING FORWARD Chief Directorate Communication | 2011. 00 2

INTRODUCTION THE CONSTITUTIONAL AND LEGISLATIVE MANDATE OF NEDLAC • Established through the Nedlac Act No. 35 of 1994. • Operates under the terms of the Nedlac Constitution. • Nedlac’s mandate is derived from the following: – – The Nedlac Act Labour Relations Act Nedlac Constitution Nedlac Protocols 3

NEDLAC’S OBJECTIVES IN TERMS OF THE NEDLAC ACT • Strive to promote the goals of economic growth, participation in economic decision-making and social equity • Seek to reach consensus and conclude agreements on matters pertaining to social and economic policy. • Consider all proposed labour legislation relating to labour market policy before it is introduced in Parliament. • Consider all significant changes to social and economic policy before it is implemented or introduced in Parliament. • Encourage and promote the formulation of coordinated policy on social and economic matters. 4

LEGEND Implication: Achieved Reflects complete implementation. Target achieved 100% + Complete Implication: Not Achieved Performance Indicator behind schedule. Target not achieved 0% - 99% Complete 5

NEDLAC OVERALL ACHIEVEMENTS PER STRATEGIC OBJECTIVE AND PER PROGRAMME QUARTER 1 - 4 2015 -16 6

COMPARATIVE ANALYSIS OF QUARTERS 1 -4 STRATEGIC OBJECTIVES 2015/16 Overall Achieved % Planned targets Overall Achieved % 2015/16 Planned targets 2015/16 % 2015/16 Overall Achieved 2015/16 Planned targets QUARTER 4 % QUARTER 3 Overall Achieved QUARTER 2 Planned targets STRATEGIC OBJECTIVES QUARTER 1 Effective governance and strategic leadership 1 0 0% 3 3 100% 1 1 100% 2 2 100% Provision of efficient and reliable back office support services 1 1 100% 1 0 0% 1 1 100% 3 1 33% Improved risk management and financial oversight 2 2 100% 3 2 67% 2 2 100% Improved facilities management 2 2 100% Office administration systems enhanced and monitored 1 1 100% 2 2 100% Strengthening organisational culture and performance 1 1 100% 2 2 100% 7

COMPARATIVE ANALYSIS OF QUARTERS 1 -4 STRATEGIC OBJECTIVES 2015/16 CONT. % Planned targets Overall Achieved 7 6 86% 16 15 94% 9 7 78% 20 18 90% - - - *4 100% - *** - - *** 1 1 100 *** % Overall Achieved 2015/16 Planned targets 2015/16 % 2015/16 Overall Achieved 2015/16 Planned targets QUARTER 4 % QUARTER 3 Overall Achieved Effective engagement on draft policy and legislation within the framework of the Nedlac Act, Constitution and Protocols Conclude matters under consideration within the framework of the Section 77 Protocol Conclude matters under consideration within the framework of the NEDLAC Protocol QUARTER 2 Planned targets STRATEGIC OBJECTIVES QUARTER 1 8

COMPARATIVE ANALYSIS OF QUARTERS 1 -4 STRATEGIC OBJECTIVES 2015/16 CONT. Planned targets Overall Achieved % QUARTER 4 2015/16 % Promote social dialogue through communication, information and capacity building Compliance with the Nedlac Policy on Constituency Capacity Building Budgeting and Expense QUARTER 3 2015/16 Overall Achieved STRATEGIC OBJECTIVES QUARTER 2 2015/16 Planned targets QUARTER 1 2015/16 3 3 100% 4 3 75% 3 3 100% 22 18 34 31 23 20 44 39 89% 11% Overall Performance 82% 100% 91% 100% 87% 89% 80% 9

COMPARATIVE ANALYSIS PER PROGRAMME QUARTER 1 - 4 QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 Planned targets Overall Achieved % Administration 8 7 88% 13 12 92% 8 8 100% 13 11 85% Core- Operations 9 9 100% 18 18 100% 9 7 70% 22 17 77% Core- Operations- Arising Matters 0 0 0% 3 1 33% 2 2 100% 5 6 120% Capacity Building 3 3 100% Total 19 17 90% 37 34 92% 22 20 91% 43 37 86% Programme

ANNUAL PERFORMANCE OVERVIEW ON SECTION 77 NOTICES- ARISING MATTERS Programmes 1: Administration 2: Core Operations 3. Constituency Capacity Building Funds Summary of Performance Number of matters Number of No of matters on- No of matters not tabled matters achieved going achieved n/a n/a 14 11 3 0 n/a n/a 0 14 11 3 0 11

NEDLAC. CHALLENGES EXPERIENCED AND REMEDIAL ACTION TAKEN 12

CHALLENGES EXPERIENCED AND REMEDIAL ACTION Key Performance Indicators QUARTERLY TARGET REASON FOR VARIANCE REMEDIAL ACTION 1. Number of Exco meetings held. 1 x Exco meeting held (in Quarter 1) Unavailability of key participants for the meeting in Quarter 1. This meeting was held in Quarter 2. Unqualified audit Unqualified opinion by the Auditor audit opinion -General. obtained The finding resulted from issues such as old uncleared creditors’ balances, account receivables from exchange transactions not raised, and old fully depreciated assets not revalued. Audit Action Plan implemented to address the identified root causes. 13

CHALLENGES EXPERIENCED AND REMEDIAL ACTION CONT. Key Performance Indicators 3. Virtual back-up system implemented QUARTERLY TARGET REASON FOR VARIANCE REMEDIAL ACTION Virtual back-up system in place The delays in the implementation of this system resulted from the adoption of new operational procedures, adopted by Government which required SITA’s involvement. The engagements are underway and the system is expected to be implemented in 2016/17. 14

CHALLENGES EXPERIENCED AND REMEDIAL ACTION Key Performance Indicators 4. Finalise Nedlac Report on Draft legislation QUARTERLY TARGET REASON FOR VARIANCE REMEDIAL ACTION Finalise Nedlac Report on the consideration of the report on Public Holidays vs Religious Cultural Holidays was tabled for engagement to the Development Chamber on 09 September 2015. The task team which engaged on this matter requested the Commission to provide a Socio-economic Impact Assessment report to inform the engagements. The report had not been received by the end of the financial year. The matter is expected to be finalised in 2016/17 financial year. 15

CHALLENGES EXPERIENCED AND REMEDIAL ACTION Key Performance Indicators 5. Number of progress reports to MANCO. 6. 20 Year publication developed QUARTERLY TARGET REASON FOR VARIANCE Progress reports to MANCO. Participants were unable to meet in Quarter 4. Publication developed Logistical difficulties in getting interviewees for the book, who were part of Nedlac Leadership. REMEDIAL ACTION The matter will be finalised in 2016 -17 financial year. Deadline shifted and book to be finalised in the 2016 -17 financial year. 16

CHALLENGES EXPERIENCED AND REMEDIAL ACTION Key Performance Indicators 7. Finalise Nedlac Report on Draft legislation QUARTERLY TARGET REASON FOR VARIANCE Finalise NEDLAC Report within 6 months of being tabled at NEDLAC The Private Member’s Bill was tabled on 09 April 2015. There were challenges in addressing this matter as it was tabled by a private member of Parliament. In this regard, there was no provision for this nature of engagement in the Nedlac Protocol. REMEDIAL ACTION The Nedlac Report was signed off by Manco on 24 March 2016. 17

CHALLENGES EXPERIENCED AND REMEDIAL ACTION Key Performance Indicators 8. Finalise NEDLAC Report on draft legislation QUARTERLY TARGET REASON FOR VARIANCE REMEDIAL ACTION Finalise NEDLAC Report on the Mine Health and Safety Amendment Bill within 6 months of being tabled at NEDLAC. Delays in agreement on various issues contained in the Bill. In the consideration of this Bill, social partners agreed to hold Bilateral engagements in order to maximise areas of agreement. The Nedlac Report was signed off by Manco in January 2016. 18

CHALLENGES EXPERIENCED AND REMEDIAL ACTION Key Performance Indicators 9. Finalise NEDLAC Report on draft legislation QUARTERLY TARGET REASON FOR VARIANCE Finalise NEDLAC Report on the Code of Good Practice on Equal Pay for Work of Equal Value within 6 months of being tabled at NEDLAC. The Nedlac Report could not be finalised within six months of being tabled as it took longer than expected for social partners to agree on their positions regarding this matter. REMEDIAL ACTION Concluded in Quarter 2 of 201516. A Nedlac Report was approved by Manco on 20 August 2015 19

CHALLENGES EXPERIENCED AND REMEDIAL ACTION Key Performance Indicators QUARTERLY TARGET 10. Finalise NEDLAC Report on Financial Report on draft Sector Regulations legislation Bill. REASON FOR VARIANCE REMEDIAL ACTION The Financial Sector Regulations The matter is expected to be Bill was tabled on 13 May 2015. finalised in 2016/17. Government at the task team meeting requested to engage internally (National Treasury and DTI) on the draft Bill and to then resubmit a revised version to the Task Team. The revised version however had not been submitted to Nedlac by the end of the 2015/16 financial year. 20

OTHER CHALLENGES EXPERIENCED AND REMEDIAL ACTION CHALLENGE REMEDIAL ACTION • The Acting Executive Director was seconded from Do. L. 11. Lack of human resources, especially, in • The position of the new Executive Director, Head: the finance department Programme Operations and Bookkeeper would be filled in and overall leadership of 2016 -17 financial year. the organisation. (Exacerbated by the resignation of the Bookkeeper and the Acting Executive Director, who was also the Head: Programme Operations). 21

CHALLENGES EXPERIENCED AND REMEDIAL ACTION . FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE 22

SOURCES FOR 2015/16 FINANCIAL YEAR 1. Grant from National Department of Labour (main source) 2. Interest earned from Call Account 3. Sundry Income (sale of old and unused assets, proceeds from Insurance, recoveries and other income)

NEDLAC BUDGETED INCOME FOR 2015/16 FINANCIAL YEAR Description of Income Amount Grant from Department of Labour R 28, 791, 000 Interest Received R 415, 000 Sundry Income R 125, 000 Retained Surplus (Budget Adjustment) R 2, 946, 000 Total income R 32, 277, 000

ANNUAL BUDGET ALLOCATION Chart Title R 3 720 000, 00 Programme 1 R 6 582 000. 00 Programme 2 R 21 975 000. 00 Programme 3

2015/2016 ECONOMIC CLASSIFICATION

2015/2016 PROGRAMME 1: EXPENDITURE INFORMATION

2015/2016 PROGRAMME 2: EXPENDITURE INFORMATION

2015/2016 PROGRAMME 3: EXPENDITURE INFORMATION

2015/16 ALL PROGRAMME: EXPENDITURE INFORMATION . Programme Annual Budget Actual Expenditure % Programme 1 R 21 975 000 R 23 176 000 105% Programme 2 R 6 582 000 R 6 256 000 95% Programme 3 R 3 720 000. 00 R 3 100 000. 00 83%

NEDLAC. FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE 31

PRIORITIES FOR 2016/17 GOING FORWARD Finalise engagements on the National Minimum Wage and Labour Relations Issues. Enhance corporate governance through compliance with the Nedlac Act, Constitution, Protocols and other applicable Government regulations. Promote accelerated economic growth, equity and job creation. Build capacity of the Secretariat and increase staff retention rate. Increase participation of constituencies’ senior leadership, properly informed and mandated delegates, in order to expedite decision making and the resulting meaningful impact in the country. Expedite engagements on draft legislation and policy tabled for consideration at Nedlac (including the Comprehensive Social Security and Retirement Reforms).

PRIORITIES FOR 2016/17 Promote best practices and stability in the labour market, through the development of coordinated, relevant and responsive policies and legislation. Enhance the institution’s profile by promoting awareness to the general public and also instill a sense of ownership and pride by all social partners. Build an institution that will be a reservoir of information on issues pertaining to labour, socio-economic development and growth- through research and effective knowledge management system. Secure adequate financial resources to effectively and efficiently pursue Nedlac’s mandate. Implement the action plan to achieve unqualified audit opinion.

CONCLUSION Nedlac remains committed to fulfil its mandate and continue to advance social dialogue.

Thank You… 35