Presentation to Parliament ELRC Annual Report 201415 14

Presentation to Parliament ELRC Annual Report 2014/15 14 October 2015 “Realising the importance of a unified determination to address labour imbalances that impedes progress in public education . ”

Honourable members of the Education Portfolio Committee Future Ms N Gina, Chairperson ANC Ms NR Mokoto Mr TZM Khoza Ms JV Basson Mr HD Khosa Mr D Mnguni ANC ANC ANC Ms A Lovemore Ms D Van Der Walt Ms HS Boshoff (ALT) DA DA DA Ms NR Mashabela EFF Mr AM Mpontshane IFP Ms CN Majeke UDM Mr MS Mabika NFP Mr LM Ntshayisa (ALT) AIC Hope 2

Table of Contents Section A Legislative and other Mandates Strategic Overview Strategic outcome-oriented goals Section B Service delivery environment Organisational environment Policy developments and legislative changes Performance information by Programme 1: Programme 2: Programme 3: Future Administration Services Dispute Management Services Collective Bargaining Services Section C Annual Financial Statements Conclusion Hope 3

SECTION A Strategic Overview Dedication 4

Legislative and other mandates § The ELRC is delisted in terms of the Public Finance Management Act (PFMA) 1 of 1999 from 1 st April 2015. Applicable legislation § LRA 66 of 1995 (as amended) § PFMA 1 of 1999 (as amended) § EEA 76 of 1998 (as amended) § FETC Amendment Act 3 of 2012 5 Futur e Hope

Legislative and other mandates (Cont. ) Other mandates § Service Delivery Agreement of the Minister of Basic Education § Action Plan to 2014: Towards the Realisation of Schooling 2025 Futur e 6 Hope

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; Futur e § Transparency: Ensure access to information by citizens; 7 Hope

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 Futur e § Efficiency: Delivery of quality services economically. 8 Hope

Strategic outcome-oriented goals Strategic Outcome Oriented Goals Progress Goal 1: Research and monitoring and evaluation activities provide an evidence base for improved policies and policy implementation in basic education. Council approved research concept document on Policy and Conditions of Service for the Institutionalisation of Grade R Practitioners and appointment of a researcher to conduct in-country research. Goal 2: Equal importance is attached to proactive dispute prevention and dispute resolution. § Dispute prevention committees in 9 provinces played role in resolving grievances related to promotional posts. § Pool of Panellists & intermediaries was increased. § Appropriate venues were secured for special disputes. Futur e Hope 9

Strategic outcome-oriented goals (Cont. ) Strategic Outcome Oriented Goals Progress Goal 3: Collective bargaining processes maximise the scope of the parties’ shared interest. Three (3) national collective agreements were concluded: CA 1 of 2014: The Process of Acquiring Organisational Rights in the Education Sector. CA 2 of 2014: Quality Management System (QMS) for School Based Educators. CA 1 of 2015: Appointment of a Panel of Conciliators and Arbitrators. § No incidences of labour unrest reported in any of the nine provinces during period under review. Futur e Hope 10

Strategic outcome-oriented goals (Cont. ) Strategic Outcome Oriented Goals Progress Goal 4: Provide appropriate support and training for all involved in dispute resolution and collective bargaining. Training for Panellists (94) and DRPs (345) Goal 5: Sound communication strategies, special initiatives and campaigns support and complement the core activities of the Council. Marketing initiatives: § Education Handbook; NTA Message of Support in Mail & Guardian; Education Week exhibition and national and at provincial party conferences. § Survey research 11 Futur e Hope

SECTION B Performance Information Hope 12

Service Delivery Environment Dispute Management Services Dispute Prevention and Facilitation § Proactive approach – a focus on prevention; § Functional Dispute Prevention Committees / Task Teams (all provincial chambers); and § Work of the Dispute Prevention Task Teams focussed on need for a comprehensive workshop on Discipline of Educators in Kwa. Zulu -Natal and Gauteng. 13 Futur e Hope

Service Delivery Environment (Cont. ) Dispute Management Services Dispute Resolution § Improvement of efficiencies related to resolution of disputes on appointments and promotions; § Recruitment and training of Interpreters and Intermediaries; § Secured appropriate venues for special hearings; § Collective Agreement No. 1 of 2015 on the appointment of a panel of Conciliators and Arbitrators; and § Draft Collective Agreement on ELRC Guidelines for Promotion Arbitrations. 14 Futur e Hope

Service Delivery Environment (Cont. ) Collective Bargaining Services § Parties continued to monitor the implementation of the current policy on incentives; § Research: Conditions of service of ECD Practitioners in South Africa; § PAM task team concluded its work during period under review; § Draft Collective Agreement No. 1 of 2014: Quality Management System (QMS) for School. Based Educators. 15 Futur e Hope

Organisational Environment Administration Services § Functional SCM unit; § Recruitment and Retention Strategy; § Total Reward Strategy, Salary Benchmarking and Remuneration Policy; § Council developed 5 -year Employment Equity Plan; § In-house internal audit function to improve effectiveness of governance, risk management and control processes and ensure compliance; § Safety, Health and Environmental (SHE) Committee for staff; and § Draft Collective Agreement to address static revenue. Futur e Hope 16

Policy developments & legislative changes FETC Bargaining Unit § Council approved the FETCBU submission for the designation of the ELRC to include lecturers employed in terms of the Public Service Act and as per the FETC Amendment Act 1 of 2013. Futur e 17 Hope

Policy developments & legislative changes (Cont. ) ELRC delisting as Schedule 3 A Public Entity § Council embarked on process to delist as Schedule 3 A Public Entity in 2014/15 financial year; § Registrar of Labour Relations highlighted the Council’s non-compliance with the LRA 66 of 1995, sections 53 (1) and 53 (2)(b). Failure to delist in terms of PFMA, would have led to review of the Council’s registration as bargaining council; § Minister of Finance, acting in terms of Section 47 & 48 of the PFMA, 1999 – delisted the Council with effect 31 st March 2015. 18 Futur e Hope

Performance Information by Programme Dedication 19

Programme 1: Administration Services Purpose: § To provide support services to the core operational functions of the Council to ensure that it delivers an efficient and effective service on its mandates. Strategic objectives: § Maintain and improve financial and administrative systems; § Procure goods and services within policies and guidelines; § Maintain good labour relations; 20 Futur e Hope

Programme 1: Administration Services Strategic objectives: § Train and develop staff; § Ensure a healthy and safe work environment; § Maintain and improve the premises and security systems respectively; and § Provide reliable information technology and communication systems. Futur e 21 Hope

Performance for 2014/15 Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Administration Services Minimise fruitless and wasteful expenditure Eliminate irregular expenditure Establish a SCM unit and provide training Reduce by 100% Not Achieved Objective not achieved due to Parties not attending scheduled meetings. No irregular expenditure SCM officials trained and developed Not Achieved Incurred due to noncompliance with the requirements of Treasury Regulations 16 A 3 & Practice note 8 of 2007/8. Not Achieved Unit established during period under review & officials recruited in month of October – training to be in the new financial year. 22 Status

Performance for 2014/15 Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Administration Services Train and develop staff 30 Achieved 53 Introduce and conduct employee wellness programmes Implement the Council’s Marketing Strategy to promote the image of the ELRC 4 Conduct survey research to measure how the Council is perceived by educators (Sample: 4 000 educators) Achieved 4 Achieved Survey research conducted and findings presented to management (Sample: 1 862 educators) 23 Futur e Hope

Performance for 2014/15 Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Administration Services Manage the property and assets of the Council with focus on increasing effectiveness, economy, transparency and integrity 80% of refurbishment completed Not Achieved 100% demolition work done and excavation has commenced. Futur e 24 Hope

Overview: Administration Services Finance and Administrative Systems § Council finalised process of changing banks; § SARS refunded the Council an amount of R 920 675, in relation to R 1, 8 -million that was incorrectly deducted. Information Technology § Majority of IT findings addressed in 2014/15; § IT Policies were updated (Disaster Recovery Plan and IT Policy on Hardware & Software); 25 Futur e Hope

Overview: Administration Services Information Technology (Cont. ) § New policies were drafted (IT Change Management Policy & Patch Management Policy). Communications § Survey research was conducted on how Council is perceived by educators. Recommendations of study has informed marketing activities for 2015/16; 26 Futur e Hope

Overview: Administration Services Communications (Cont. ) § Council’s profile was featured in the Education Handbook and message of support for the NTAs was placed in the Teacher supplement of Mail & Guardian; § Council participated in 10 provincial Party conferences (exhibitions); § Exhibition at Education Week; Inspired Teachers’ Conference and SA Basic Education Conference. 27 Futur e Hope

Overview: Administration Services Building Refurbishment Project § Site was handed over to appointed contractor; § Project will be completed in November 2015. Futur e 28 Hope

Overview: Administration Services Strategy to overcome areas of under performance Fruitless and wasteful expenditure § The Council will introduce a “Cost Order” process in the 2015/16 financial year in an effort to curb wasteful expenditure. SCM unit § The training of SCM Officials has been deferred to the 2015/16 financial year. Irregular Expenditure § Disciplinary actions instituted against the SCM officer. 29 Futur e Hope

Programme 2: Dispute Management Services Purpose: § To manage disputes proactively (prevention and resolution). Strategic Objectives: § Provision of dispute resolution services § Training of Dispute Resolution Practitioners § Panellists Professional Development Services Futur e Hope 30

Performance for 2014/15 Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Dispute Management Services Provision of dispute 100% resolution services Conciliations finalised within 30 days Training of Dispute Resolution Practitioners Trained Status Not Achieved 67% 464 disputes were in jurisdiction, 309 were conciliated within 30 days Achieved 345 240 Panellists 80 Professional Development Panellists Professionally developed Achieved 94 Futur e 31 Hope

Overview: Dispute Management Services Referrals: § 762 disputes received § Predominantly related to ULP – Promotion and Appointments § Recruitment and training of interpreters Jurisdiction: Out of 762 referrals: § 464 in jurisdiction § 298 out of jurisdiction Futur e 32 Hope

Overview: Dispute Management Services Provincial Referrals: Futur e Hope 33

Overview: Dispute Management Services Strategy to overcome areas of under performance § Continuation of process to recruit and train Interpreters and Intermediaries in an effort to overcome delays and postponements. § Appropriate venues for special hearings. § Continuous provision of training to both Panellists and Dispute Resolution Practitioners to improve the efficiencies in terms of the quality of outcomes. 34 Futur e Hope

Programme 3: Collective Bargaining Services Purpose: § To contribute to the Council’s vision of a strengthened social contract between government, teacher unions and civil society. § To create a conducive environment for improved quality in teaching and learning. § To promote collective bargaining at national and provincial levels. § To ensure development of effective policies for quality public education in a non-disruptive environment for teaching and learning. 35 Futur e Hope

Programme 3: Collective Bargaining Services Collective Bargaining – National Strategic objectives: § Collective bargaining § Research Services § QLTC Futur e 36 Hope

Performance for 2014/15 Strategic objectives Planned Target 2014/2015 Collective Bargaining Services: National Collective Bargaining Conclude bargaining on 4 identified matters of mutual interest in public education Actual Achievement 2014/2015 Status Achieved 7 Research Services 1 research report available A report on the factors that promote labour peace, educator morale and wellbeing is available 37 Not Achieved Council approved the research concept document on the Policy and Conditions of Service for the Institutionalisation of Grade R Practitioners and the appointment of a researcher to conduct the research, but no report has been tabled at Council. Futur e Hope

Performance for 2014/15 Strategic objectives Planned Target 2014/2015 Collective Bargaining Services: National Quality Learning & 27 structures Teaching Campaign (QLTC) Establish and empower all-inclusive and functional QLTC structures on all levels i. e. provincial, district, circuit/ward and school levels Actual Achievement 2014/2015 Not Achieved 13 structures The training of districts only commenced in the second quarter of 2014 and it impacted negatively on achievement of the set targets. Futur e Hope 38

Overview: Collective Bargaining Services § One evidence-based teacher welfare and national development issue was identified: Conditions of service of ECD Practitioners; § Thirteen (13) delegates participated in ILO Conference in Geneva during period under review; § Three (3) national agreements were concluded; and § Five (5) provincial agreements were ratified. 39 Futur e Hope

Overview: Collective Bargaining Services Three national agreements: § CA 1 of 2014: The Process of Acquiring Organisational Rights in the Education Sector. § CA 2 of 2014: Quality Management System (QMS) for School Based Educators. § CA 1 of 2015: Appointment of a Panel of Conciliators and Arbitrators. 40 Futur e Hope

Overview: Collective Bargaining Services Five provincial agreements ratified: § Mpumalanga CA 1 of 2014: Transfer of Serving Educators in terms of Operational Requirements and permanent Appointment of Temporary Teachers in Vacant Substantive Posts. § Kwa. Zulu-Natal CA 1 of 2014: Procedure for dealing with the placement of Further Education and Training (FET) College Lecturers who remain in Employment with the Department of Education Kwa. Zulu-Natal in terms of Collective Agreement Numbers 4 and 5 of 2007. 41 Futur e Hope

Overview: Collective Bargaining Services § Kwa. Zulu-Natal CA 2 of 2014: Framework and Guidelines for Implementation of Educator Incentives in KZN. § Gauteng CA 1 of 2014: Collective Agreement 1 of 2014 on the Conversion of Temporary Appointment of Post Level 1 Educators into Permanent Appointment. • North West CA 1 of 2014: The Provincial Procedures for Principals Displaced as a Result of Rationalisation, Merger and/or Closure of Schools in giving effect to Collective Agreement 2 of 2003. Futur e Hope 42

Overview: Collective Bargaining Services Strategy to overcome areas of under performance Proposed recommendations for considerations by the QLTC Coordinators to ensure the training programme is strengthened: § Close cooperation between QCT and provincial Coordinators; § Provincial coordinators to assist in the dissemination and advocacy of the training of districts and stakeholders; § Compilation of accurate data of all QLTC structures and stakeholders. 43 Futur e Hope

Overview: Collective Bargaining Services Strategy to overcome areas of under Performance § Research on Conditions of Service for the Institutionalisation of Grade R Practitioners, will be concluded in the 2015/16 financial year. Futur e 44 Hope

Provincial performance for 2014/15 Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Collective Bargaining Services: Provincial Consultation, Implementation and Monitoring of Collective Agreements and Policies Post Provisioning 4 Meetings A consolidated report on the consultation process for post provisioning is available. Achieved 4 Provinces Incentives for 4 Meetings Educators Monitoring reports on the implementation of incentives for educators are available. Achieved 4 Provinces Not Achieved Free State Gauteng Kwa. Zulu-Natal Limpopo Mpumalanga Not Achieved Free State Gauteng Kwa. Zulu-Natal Mpumalanga Western Cape 45 Futur e Hope

SECTION C Annual Financial Statements Success 46

Analysis of Levy Contributions DETAILS 2014/15 2012/13 2011/12 49, 213 49, 322 49, 319 49, 693 409, 236 410, 816 410, 991 414, 104 (109) 3 (374) 271 (6, 931) (175) (3, 113) 2, 254 TOTAL LEVIES (Rmil) TOTAL NUMBER OF CONTRIBUTORS 2013/14 AVG INCREASE/(DECREASE) IN TOTAL LEVIES (Rmil) AVG INCREASE/(DECREASE) IN CONTRIBUTORS Futur e 47 Hope

Financial Performance TOTAL REVENUE 2014/15 2013/14 2012/13 2011/12 R’ 000 49, 213 49, 322 49, 319 49, 693 7, 276 5, 696 4, 949 4, 492 PERSONNEL RELATED EXPENSES (19, 988) (15, 549) (14, 555) (14, 625) TOTAL OPERATING EXPEDITURE (31, 667) (30, 033) (29, 350) (33, 312) OTHER INCOME Futur e SURPLUS/(DEFICIT) 4, 833 48 9, 436 10, 364 6, 247 Hope

Financial Performance FINANCIAL PERFORMANCE 60 000 50 000 40 000 30 000 20 000 10 000 Futur e 0 2014/15 Total revenue 2013/14 2012/13 Total expenditure 49 Employee cost 2011/12 Surplus for the year Hope

Financial Performance per Programme Name Budget Actual Expenditure (Over)/Under Expenditure Actual % Dispute Management Services 10, 115 12, 712 (2, 597) 126% Collective Bargaining Services 30, 602 24, 028 6, 574 105% Executive Services 4, 493 3, 772 721 84% Corporate Services 12, 764 12, 938 174 101% Capital Expenditure 9, 820 2, 859 6, 961 29% 67, 794 56, 309 11, 485 83% Total 50 Futur e Hope

Financial Position 2014/15 2013/14 2012/13 2011/12 R’ 000 Futur e TOTAL INCOME CASH & CASH EQUIVALENTS 56, 489 55, 018 54, 268 54, 185 136, 541 127, 197 109, 749 95, 814 51 Hope

Conclusion The Council appreciates oversight role that the Portfolio Committee played over the years. Principles of good corporate governance will remain an integral part of the Council’s operations. Futur e 52 Hope

Thank You. Futur e 53 Hope