Presentation to the Portfolio Committee - Labour NEDLAC Presentation to the Portfolio Committee - Labour MID-YEAR REPORT 15 February 2017

TABLE OF CONTENTS INTRODUCTION NEDLAC STRATEGIC OBJECTIVES OVERVIEW OF PERFORMANCE PER PROGRAMME: QUARTER 1 & 2 2016-17 FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE CHALLENGES EXPERIENCED AND REMEDIAL ACTION IMPACT REALISED THROUGH NEDLAC’S WORK PRIORITIES FOR THE FINANCIAL YEAR 2016/17 – GOING FORWARD Chief Directorate Communication | 2011.00.00

NEDLAC STRATEGIC OBJECTIVES 3

NEDLAC STRATEGIC OBJECTIVES Nedlac has made progress towards realising its strategic objectives as set out in its APP 2016-17 in the first and second quarters of 2016-17 financial year. Nedlac’s strategic objectives are as follows: Effective governance and strategic leadership. Provision of efficient and reliable back office support services. Improved risk management and financial oversight. Improved facilities management. Office administration systems enhanced and monitored. Strengthening organisational culture and performance. 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. Promote social dialogue through communication, information and capacity building. Compliance with the Nedlac Policy on Constituency Capacity Building Budgeting and Expense The work to realise these objectives is undertaken through three programmes: namely: Administration, Core-Operations and Constituency Capacity Building.

OVERVIEW OF PERFORMANCE PER PROGRAMME: QUARTER 1 AND 2 2016-17 5

QUARTER 1– PERFORMANCE OVERVIEW PER PROGRAMME Programmes Annual Planned Indicators Targets reporting in Quarter 1 Achieved Not Achieved Overall Achievement 1: Administration 14 9 8 1 89% 2: Core Operations 34 10 91% 3. Constituency Capacity Building Funds 3 100% Summary of Performance 51 22 20 2 6

QUARTER 1 PERFORMANCE OVERVIEW ON ARISING MATTERS Programmes Number of matters tabled/ carried over from 2015-16 Number of matters achieved in Quarter 1 Number of matters on-going and not reporting in the Quarter 1 No of matters not achieved Section 77 4 3 1 7

QUARTER 2– PERFORMANCE OVERVIEW PER PROGRAMME Programmes Annual Planned Indicators Indicators with targets reporting in Quarter 2 Achieved Not Achieved Overall Achievement 1: Administration 14 10 4 71% 2: Core Operations 34 21 16 5 76% 3. Constituency Capacity Building Funds 3 100% Summary of Performance 51 38 29 9 8

QUARTER 2 PERFORMANCE OVERVIEW ON ARISING MATTERS Programmes Number of matters tabled in Quarter 2 of 2016/17 Number of matters achieved in Quarter 2 Number of matters on-going and not reporting in Q2 No of matters not achieved Section 77 3 2 1 9

FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE 2016/17 NEDLAC FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE 10

SOURCES FOR 2016/17 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) 11

BUDGETED INCOME FOR 2016/17 FINANCIAL YEAR Description of Income Amount Grant from Department of Labour R 30,317,000 Interest Received R 420,000 Sundry Income R 132,000 Total income R 30,869,000 12

ANNUAL BUDGET ALLOCATION ALLOCATION FOR 2016/2017 13

2016/2017 ECONOMIC CLASSIFICATION Q2 14

2016/2017 PROGRAMME 1: EXPENDITURE INFORMATION 15

2016/2017 PROGRAMME 2: EXPENDITURE INFORMATION Q2

2016/2017 PROGRAMME 3:EXPENDITURE INFORMATION Q2

2016/17 ALL PROGRAMME: EXPENDITURE INFORMATION . Programme Annual Budget Actual To Date Expenditure To Date % Programme 1 R21 030 000 R10 127 522 48% Programme 2 R5 921 000 R2 667 632 45% Programme 3 R3 918 000 R1 154 863 29% 18

CHALLENGES AND REMEDIAL ACTIONS Qualified audit opinion for 2015-16 An action plan to address the findings of the Auditor-General has been developed and is being implemented. Resignation of staff Positions for the TIC Senior Coordinator and Head: Programme Operations have been filled. A process to finalise the filling of the Administrator position is being finalised. Delays in the approval of staff benefits Deliberations to finalise the approval of staff benefits are underway. Capacity of the Finance Department The engagements with Exco are still underway on the recommended restructuring of the Finance Department to ensure optimal output and efficiency.

IMPACT REALISED THROUGH NEDLAC’S WORK 20

IMPACT REALISED THROUGH NEDLAC’S WORK The primary goal for Nedlac is for social partners to strive to reach consensus on key socio-economic and labour market issues in South Africa. Significant achievements have been, and continue to be made in respect of the work of Nedlac. These achievements, among other things, relate to: the quality of engagements on legislation that passes through Nedlac Time taken to conclude engagements on legislative matters; and Special sessions held by Chambers to address various issues facing South Africa. Key pieces of legislation have been finalised to bring about socio-economic and labour market transformation.

IMPACT REALISED THROUGH NEDLAC’S WORK: SPECIAL SESSIONS Nedlac, through social dialogue by social partners has contributed to growth and development. In the first two quarters of 2016-17, in addition to engagements on draft legislation, various sessions or engagements have been held by Chambers to address challenges facing the country. These include: Session on Medium Term Budget Policy: Provides inputs which are incorporated by National Treasury in the Medium Term Budget Policy Statement. Session on financial inclusion held with FinMark Trust (an NGO which helps financial institutions in policy making). The chamber comments are usually incorporated in FinScope, a research paper that FinMark produces and distributes to various institutions and public at large. Sessions with the Davis Tax Committee: Assist the Committee in preparation for its reports on various topics. These reports are submitted to the Minister of Finance for consideration. Inputs on regional and international trade agreements.

IMPACT REALISED THROUGH NEDLAC’S WORK: NMW & LABOUR RELATIONS The engagements on the National Minimum Wage and Labour Relations amendments, even though they are still in progress, they have sparked the interest for the general public to also engage on these issues. It is anticipated that the outcomes of these engagements will result in bridging the inequality gap, promote decent work and ensure effective, productive and stable labour market. These engagements are further expected to necessitate amendments in the legislation.

PRIORITIES FOR 2016-17 FINANCIAL YEAR 24

PRIORITIES FOR 2016/17 GOING FORWARD Finalise the Labour Relations Indaba engagement process. Enhance corporate governance through compliance with the Nedlac Act, Constitution, Protocols and other applicable Government regulations. Expedite the implementation of the Audit Action Plan Build capacity of the Secretariat and increase staff retention rate. Continue to improve achieving targets within the set timeframes. Expedite engagements on draft legislation and policy, tabled for consideration at Nedlac (including the Comprehensive Social Security and Retirement Reforms). 25

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