Commission for Conciliation, Mediation and Arbitration (CCMA) Presentation to the Labour Portfolio Committee Parliament, 12th June 2009

INTRODUCING THE CCMA

VISION In 2010 … We will be trusted by our social partners to lead and facilitate the transformation of labour relations in South Africa. We will be evaluated by the quality of our processes and the value of our mediation, judgements and decisions, as well as our ability to resolve disputes fairly. Our ideals of social justice, equity and shared prosperity are principles that will govern everything that we do. We will be proudly South African, and will be willing learn, and in turn to share our knowledge, skills and experience with our other African partners. We will hold dear the principles of professionalism, integrity, service and the value of sharing trustworthy relationships – our employees and associates will be proud to build careers that are associated with the CCMA. PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

MISSION The purpose of the CCMA is to promote social justice and fairness in the workplace. This will be done through the delivery of ethical, quality, innovative and cost-effective services of Dispute Prevention and Dispute Resolution that are in accordance with the law. PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

VALUES Integrity, Honesty and Ethics Diversity Transparency and Openness Quality Accountability, Responsibility and Commitment Respect and Trust PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

FUNCTIONS conciliate workplace disputes arbitrate disputes that remain unresolved after conciliation facilitate the establishment of workplace forums and statutory councils compile and publish information and statistics about its activities consider applications for accreditation and subsidy from Bargaining Councils and private agencies supervise ballots for unions and employer organizations give training and advice on the establishment of collective bargaining structures, workplace restructuring, consultation processes, termination of employment, employment equity programmes and dispute prevention. PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

Mr. Thembinkosi Mkalipi GOVERNING BODY CHAIRPERSON (VACANT) Ms Tanya Cohen (Interim) ORGANISED LABOUR Ms. Mary Malete Mr. Narius Moloto VACANT (Vacated by Mr. E. Patel) BUSINESS Ms. Tanya Cohen Mr. Elias Monage Mr. David Carson STATE Mr. Thembinkosi Mkalipi Mr. Ian Macun Ms. Ntsoaki Mamashela PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

ORGANISATIONAL STRUCTURE DIRECTOR NSC: Legal & Arbitration NSC: Capacity Building & Outreach NSC: Mediation GM: Corporate Services Chief Financial Officer GM: Operations 1 GM: Operations 2 Convening Senior Commissioners (x10) PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

THE TSOSO STRATEGY Tsoso (Sesotho): “Revive, Re-awaken”

THE TSOSO STRATEGY The creation of this strategic plan has built on previous plans as the basis for business continuity, and has included input from all key stakeholder groups (internal and external). This strategic plan sets out the Goals and Strategic Focus Areas & Measures for the CCMA for the next 3 years, taking CCMA to 2010. This strategic plan will determine the allocation of resources and will drive the performance management system of the CCMA. This strategic plan outlines the strategy for the CCMA as an entity and will be the basis for each team within the CCMA to determine their priorities in order that the overall organisational goals may be achieved. PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

STRATEGIC FOCUS AREAS Reposition the CCMA in the Labour Market (intensifying and broadening outreach), where social justice and restoring dignity are a focus of our processes High performance, high impact delivery of compliant services, where there is a balance between quality and quantity Reposition the organisation to meet the future strategic needs of the organisation Enhance and entrench internal processes and systems to ensure effective deployment of resources. PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

GOALS Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times Ensure user-friendly, quality services that are delivered with speed Maintain operational effectiveness while ensuring services are cost effective PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

TSOSO SCORECARD GOAL 1: Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times. # MEASURE TARGET 2010 ACHIEVED 2007 / 2008 STATUS 2008 / 2009 (Mid Term) 1.1 In 2010, the external perception of the services delivered by the CCMA will have improved - from [baseline] PLUS x%. Baseline plus x% Baseline determined (68%)  New measure planned for “Customer Satisfaction” (based on experience of the process): Tender currently in process 1.2 By 2010, the CCMA will be recognised as a market leader in the field of Continuous Professional Development in the field of Labour Law. This will include defining standards for training, certifying providers of training and conducting training. To be defined Engagement with Service Seta and other stakeholders; have agreed process to determine objectives CCMA Groundwork completed Process to develop the Commissioner / Panelist training course has started PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

TSOSO SCORECARD GOAL 2: Ensure user-friendly, quality services that are delivered with speed # MEASURE TARGET 2010 ACHIEVED 2007 / 2008 STATUS 2008 / 2009 (Mid Term) 2.1 By 2010, 70% of all disputes will be settled at conciliation phase 70% 61%  64 % 2.2.1 By 2010, there will be a material reduction in CCMA cases referred to the Labour Court (the target will be set once the 2007/08 baseline has been measured). Baseline less 21% baseline determined (21%) Reduced by 19% 2.2.2 By 2010, there will be a material reduction in the non-compliance of arbitration awards. Baseline less X% New measure PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

Not available due to problems with database TSOSO SCORECARD GOAL 2: Ensure user-friendly, quality services that are delivered with speed # MEASURE TARGET 2010 ACHIEVED 2007 / 2008 STATUS 2008 / 2009 (Mid Term) 2.3 By 2010, all administrative rework will be 0% (relating to data integrity errors) 0% 7%  Not available due to problems with database 2.4 By 2010, all process rework will be reduced by x% from the baseline set in 2007 (the target will be set once the 2007/08 baseline has been measured) Baseline determined at 11% less 3% Baseline determined 11% 2.5.1 By 2008, all conciliations will be conducted within the statutory time frame (30 days) 30 days 28 days 27 PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

TSOSO SCORECARD GOAL 2: Ensure user-friendly, quality services that are delivered with speed # MEASURE TARGET 2010 ACHIEVED 2007 / 2008 STATUS 2008 / 2009 (Mid Term) 2.5.2 By 2010, the average time to process an arbitration (from date of request to date closed) will be 60 days 60 days 42 days  40 days 2.6 By 2010, there will be no late awards (0%) 0% Reduced from 6% to 3% 1% 2.7.1 In 2010, 70% of all disputes of national interest where offers of assistance are made will be settled 70% 53% 63% 2.7.2 In 2010, 75% of all offers of assistance in disputes of national interest will be accepted by parties 75% 50% 61% PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

TSOSO SCORECARD GOAL 3: Maintain operational effectiveness while ensuring services are cost effective # MEASURE TARGET 2010 ACHIEVED 2007 / 2008 STATUS 2008 / 2009 (Mid Term) 3.1 By 2010, staff turnover will be halved from the 2006/07 baseline 4.15% Baseline determined (8% baseline 5% current year)  4% Total staff 3.2 By 2010, key skills loss will not exceed 7% 7% Management 11% Commissioners 6% Commissioners 6% NMC 5% Total staff 4% PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

TSOSO SCORECARD GOAL 3: Maintain operational effectiveness while ensuring services are cost effective # MEASURE TARGET 2010 ACHIEVED 2007 / 2008 STATUS 2008 / 2009 (Mid Term) 3.3 By 2010, we will be able to meet case management demands with ‘normal’ resource levels. This means that the case management administration will be completed with a variance of no more than 5% of planned workload 5% variance 3%  32.94% 3.4 By 2010, a budget model will be in place that will enable funding from government based on unit cost per projected number of services. Funding to be 100% of projected services to be rendered 100% funding. 97% 85.96% 3.5 By 2010, the ‘unit cost’ for delivery of compulsory services will have stabilised to ensure that there is not more than a 5% variance from budget allocation -14% (improved operational efficiencies) 8.17% PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

OPERATIONAL EFFICIENCIES

OPERATIONAL EFFICIENCIES Operational Focus Target / Objective 2005 / 06 2006 / 07 2007 / 08 2008/09 1 Pre-Conciliations Heard Hear 10% or more of all jurisdictional referrals using the pre-conciliation process 15% 16% 13% 2 Pre-Conciliations Settled Settle 7% or more of all jurisdictional referrals using the pre-conciliation process 5% 7% 6% 3 Con/Arbs Heard Hear 50% or more of all jurisdictional referrals using the con/arb process 40% 38% 45% 43% 4 Con/Arbs Finalised Finalise 80% or more of con/arbs heard – conducted ** Changed measure in 2008 to be ‘in jurisdiction’ 77% 82% 83% 36% 5 Conciliations Heard and Closed Close 90% or more of all conciliations heard (includes all ‘con’ type processes) 88% 92% 93% 6 Conciliations heard outside of 30 days Statutory requirement to attempt to conduct all conciliation within 30 days 0% 7 Settlement rate Settle 70% or more cases across all processes 60% 63% 67% 8 Arbitrations finalised Finalise 90% or more of arbitrations heard 86% 89% 91% 9 Late Awards Statutory requirement to issue arbitration awards within 14 days 9% 3% 1% 10 Postponements / Adjournments Allow for maximum of 5% postponement / adjournments of all processes heard 8% 11 Average turn around – Conciliation Conciliation process to take place from ‘activation’ to ‘closed’ within a maximum of 30 days 45 30 28 12 Average turn around – Arbitration Arbitration process to take place from arbitration referral date to ‘closed’ within a maximum of 74 days 79 48 42 41 PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

OPERATIONAL EFFICIENCIES: Comparison of CCMA Offices PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

SPECIAL FOCUS: GLOBAL ECONOMIC CRISIS

LARGE SCALE RETRENCHMENT MATTERS 50 or more employees PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

SMALL SCALE RETRENCHMENT MATTERS Less than 50 employees PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

FACILITATION RESULTS Period 01 Dec 08 - 30 May 09 PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

RISE IN CASE LOAD PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

DOL FUNDING (R 1,000’s) PRESENTATION TO THE LABOUR PORTFOLIO COMMITTEE 12th June 2009

“We will support the work of the Commission for Conciliation, Mediation and Arbitration (CCMA) to assist employers and workers to find alternatives to retrenchments through the relevant legal process. To date, CCMA commissioners have saved over four thousand jobs through facilitation processes, and provided ongoing advice and support to retrenched workers” President Jacob G. Zuma State of the Nation Address, 3rd June 2009