Nedlac Presentation to the Labour Parliamentary Portfolio Committee 18 March 2015

Content Overview of Strategic Plan 2015/16 – 2019/20 Overview of the Annual Performance Plan 2015 - 16 Budget Allocations 1

Overview of Strategic Plan 2015/16 – 2019/20 Over the next 5 years, Nedlac will strive to achieve its vision: Promote growth, equity and participation through social dialogue 2

Overview of Strategic Plan 2015/16 – 2019/20 Strategic outcome-oriented goals: 1. Promote economic growth, social equity and decent work Contribute to the achievement of the objectives and targets of the NDP and NGP, through effective social dialogue 2. Promote and embed a culture of effective social dialogue and engagement Support constituencies to build the necessary capacity to engage, including through research assistance and communications 3

Overview of Strategic Plan 2015/16 – 2019/20 3. Promote effective participation in socio-economic policymaking and legislation Ensure compliance with Nedlac’s frameworks, including the Nedlac Constitution and the Nedlac Protocol 4. Enhance governance and organisational effectiveness and efficiency Continue to build an efficient Secretariat, as well as strong governance structures 4

Overview of Strategic Plan 2015/16 – 2019/20 In order to achieve these strategic outcome-oriented goals, the strategic plan is structured around three core programmes Purpose is to enhance organisational efficiency and effectiveness Administration Purpose is to consider and engage on policy and legislation in Nedlac chambers, task teams and committees, and to create wider awareness of Nedlac’s work Core Operations Capacity Building Funds Purpose is to capacitate constituencies to engage effectively in Nedlac structures 5

Overview of Strategic Plan 2015/16 – 2019/20 The following outcomes will be focused on in respect of each programme: Programme Targeted Outcomes Administration Enhanced governance and oversight by governance structures Provision of efficient back office and administrative support services Strong and compliant financial and risk management Efficient and high-performing Secretariat 6

Overview of Strategic Plan 2015/16 – 2019/20 Programme Targeted Outcomes Core Operations Efficient engagement on policy and legislation that is tabled in each of the Nedlac Chambers Effective addressing of notices received in terms of Section 77 of the LRA Wider and more intensive communication of Nedlac’s work and achievements 7

Overview of Strategic Plan 2015/16 – 2019/20 Programme Targeted Outcomes Capacity Building Funds Strengthened constituency engagement in Nedlac – through resourcing to undertake research, workshops and other preparatory work Ensuring that constituency capacity building funds are spent in compliance with Nedlac’s finance policies 8

Content Overview of Strategic Plan 2015/16 – 2019/20 Overview of the Annual Performance Plan 2015 - 16 Budget Allocations 9

Overview of the APP 2015 -16 The APP 2015 – 15 builds on work already undertaken : Financial controls Supply Chain Management Unit established Comprehensive set of finance policies developed and implemented Independent Chairperson for the Audit and Risk Committee appointed Independent internal auditors appointed Finance Committee and the Audit and Risk Committee meet on a quarterly basis Audit Committee Charter concluded Quarterly finance reports are provided to the Exco and Manco Manco receives quarterly reports on procurement 10

Overview of the APP 2015 -16 Entity Governance Representation on these structures are aligned with the Nedlac Constitution Nedlac Constitution has been updated to ensure alignment with public sector regulations Risk Management Committee established Risk register developed, managed and maintained Document management system installed IT charter and policies developed Monitored and improved compliance with the Nedlac Protocol 11

Overview of the APP 2015 -16 Secretariat capacity Vacant posts filled (interviews conducted for ED post) Coordinators predominantly hold post-graduate qualifications Human Resources and Remunerations Committee established as a standing committee of Manco Performance management system implemented Quarterly stakeholder satisfaction surveys undertaken 12

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Administration Entity Management Summit held as per the Nedlac Act (1) Exco meetings held as per the Nedlac Constitution (4) Stakeholder satisfaction survey on the quality of meeting preparations and logistical arrangements (2) 13

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Administration Corporate Services Efficient voice and data services Server upgraded Virtual back-up system implemented 14

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Administration Finance Administration Unqualified audit opinion obtained from the A-G Finance reports submitted quarterly to governance structures for consideration Quarterly reviews of the risk register 15

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Administration Office Accommodation Maintenance of Nedlac House through regular maintenance inspections General Office Administration Staff satisfaction surveys Document management system maintained 16

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Administration Human Resource Management Quarterly performance appraisals conducted Performance improvement plans developed and implemented Staff Retention Plan developed 17

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Core Operations Chambers and Manco Task Teams One research report developed per Chamber One strategic session convened per Chamber Nedlac Reports concluded on draft legislation within six months of tabling Two Chamber satisfaction surveys on the quality of meeting preparations and logistical arrangements conducted 18

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Core Operations Section 77 Resolution of Section 77 notices in compliance with the Section 77 Protocol Communications and Outreach Press briefings , opinion pieces and news articles issued quarterly Monthly website updates Monthly monitoring of website visits Nedlac 20-year anniversary commemorated through a 20-year publication 19

Overview of the APP 2015 -16 Programme Sub-Programme Outputs/Activities Capacity Building Funds Business, Community and Labour Constituencies Expenditure monitoring through quarterly financial reports to the Finance Committee 20

Overview of the APP 2015 -16 2014 – 15 arising matters Labour Relations: A process has been established, under the leadership of the Deputy President, to address: Wage Inequality Broader labour relations issues This process reports into a specially convened Committee of Principals that is chaired by the Deputy President 21

Overview of the APP 2015 -16 2014 – 15 arising matters Protocol to Strengthen the Relationship between Parliament and Nedlac: Protocol has been drafted to structure a relationship between Nedlac and Parliament Aims are to facilitate: Consideration of Nedlac Reports in the relevant Portfolio Committees Participation of Nedlac constituencies in Portfolio Committees when relevant legislation is being considered Feedback on the progress of relevant engagement processes in Parliament Plan to finalise draft protocol in the new financial year 22

Content Overview of Strategic Plan 2015/16 – 2019/20 Overview of the Annual Performance Plan 2015 - 16 Budget Allocations 23

MTEF Budget - 2015/16 – 2017/18 Income Estimates INCOME Grant (Department of Labour) 27 447 000 28 791 000 30 317 000 31 833 000 Interest 410 000 415 000 420 000 430 000 Other income 112 000 125 000 132 000 139 000 Total income 27 969 000 29 331 000 30 869 000 32 402 000 24

MTEF Budget - 2015/16 – 2017/18 Annual increases over the MTEF period: 2015 – 16 budget: increased by 4.9% 2016 – 17: increased by 5.2% 2017 – 18: increased by 5% Interest: derived from funds in the investment account Other income: SETA reimbursements 25

MTEF Budget - 2015/16 – 2017/18 Expenditure Estimates CAPITAL EXPENDITURE Budget 2014/2015 Budget 2015/2016 Budget 2016/2017 Budget 2017/2018 Computer equipment 100 000 60 000 Furniture and Office equipment 50 000 Software 90 000 Building improvements/security   - Sub Total 200 000 Capital asset expenditure over the MTEF period will be focused on upgrading computers, software upgrades and office furniture procurement 26

MTEF Budget - 2015/16 – 2017/18 Expenditure Estimates PROGRAMME 1 - ADMINISTRATION Budget 2014/2015 Budget 2015/2016 Budget 2016/2017 Budget 2017/2018 1.1 Entity Management 1 275 000 1 347 000 1 420 000 1 491 000 1.2 Corporate Services 3 757 000 627 000 410 000 405 000 1.3 Finance Administration 1 371 000 1 443 000 1 523 000 1 594 000 1.4 Office Accommodation 2 502 000 1 163 000 1 227 000 1 285 000 1.5 General Office Administration 13 510 000 2 888 000 3 021 000 3 226 000 1.6 HR Management 11 914 000 12 561 000 13 229 000 13 905 000 Sub Total 34 329 000 20 029 000 20 830 000 21 906 000 Corporate services budget reduced in order to reduce expenditure on consultants General Office Administration allocation in 2014-15 included the R13 million budget to renovate Nedlac House 27

MTEF Budget - 2015/16 – 2017/18 Expenditure Estimates PROGRAMME 2 - CORE OPERATIONS Budget 2014/2015 Budget 2015/2016 Budget 2016/2017 Budget 2017/2018 2.1 Chambers – Development 700 000 1 130 000 1 275 000 1 325 000 2.2 Chambers - Public Finance 400 000 770 000 846 000 875 000 2.3 Chambers - Trade & Industry 777 000 1 000 000 1 105 000 1 175 000 2.4 Chambers - Labour Market 605 000 1 049 000 1 225 000 1 305 000 2.5 Manco Task Teams 176 000 433 000 470 000 500 000 2.6 Section 77 150 000 100 000 103 000 2.7 Communications and Outreach 1 282 000 900 000 Sub Total 4 090 000 5 382 000 5 921 000 6 183 000 Chamber budget have been increased in order to facilitate engagements by these structures Increases are also in line with annual inflationary increases 28

MTEF Budget - 2015/16 – 2017/18 Expenditure Estimates PROGRAMME 3 - CAPACITY BUILDING FUNDS Budget 2014/2015 Budget 2015/2016 Budget 2016/2017 Budget 2017/2018 3.1 Business Constituency 1 127 000 1 240 000 1 306 000 1 371 000 3.2 Community Constituency 3.3 Labour Constituency Sub Total 3 381 000 3 720 000 3 918 000 4 113 000 Increases are in line with annual inflationary increases Budget used to undertake constituency specific research, workshops and other capacity building initiatives Budget is spent in compliance with Nedlac’s Finance Policies 29

MTEF Budget - 2015/16 – 2017/18 Summary of Expenditure EXPENDITURE Capital expenditure 200 000 Programme 1 34 329 000 20 629 000 21 530 000 22 606 000 Programme 2 4 090 000 4 782 000 5 221 000 5 483 000 Programme 3 3 381 000 3 720 000 3 918 000 4 113 000 TOTAL EXPENDITURE 42 000 000 29 331 000 30 869 000 32 402 000 Revenue 27 969 000 30

Budget – APP 2015 -16 Expenditures Items Allocations ADMINISTRATION Salaries and Wages 12 757 878.00 Social contributions 61 440.00 Staff training and development 150 000.00 Study grants 35 000.00 Accounting fees 36 000.00 Advertising 20 000.00 Audit fees 1 359 400.00 Bank charges 30 000.00 Building maintenance 130 000.00 Capital expenses 583 000.00 31

Budget – APP 2015 -16 Expenditures Items Allocations Cell phone allowances 230 482.00 Cleaning 69 000.00 Consulting fees 627 000.00 Courier 44 500.00 Depreciation 940 000.00 Electricity, water, rates and taxes 993 247.00 General maintenance 215 625.00 Insurance 160 124.00 Legal fees 300 000.00 32

Budget – APP 2015 -16 Expenditures Items Allocations Network maintenance 100 000.00 Photocopy costs 548 804.00 Security costs 40 000.00 Staff wellness 200 000.00 Stationary 275 500.00 Telephone 320 000.00 Vehicle running costs 10 000.00 Total 20 229 000.00 33

Budget – APP 2015 -16 Expenditures Items Allocations CORE OPERATIONS International meetings 180 000.00 Chamber and task team meetings 1 226 178.00 Refreshments 875 737.00 Section 77 meetings 250 000.00 Labour Relations engagement process 285 000.00 Annual Report 220 000.00 Printing-publications 80 000.00 Public relations 426 598.00 Subscriptions 46 000.00 Website and internet Travel and accommodation 2 440 085.00 Total 5 382 000.00 34

CAPACITY BUILDING FUNDS Budget – APP 2015 -16 Expenditures Items Allocations CAPACITY BUILDING FUNDS Business Constituency 1 240 000.00 Community Constituency Labour Constituency Total 3 720 000.00 35

Conclusion Thank you 36