1. ELRC Annual Report 2012/13 Presentation to Parliament 10 October 2013 “Education as a fundamental service and the role of all stakeholders to ascertain labour peace in public education.” 1

2. Ms HH Malgas, ChairpersonANC Ms N GinaANC Ms NW Madikizela-MandelaANC Mr ZS MakhubeleANC Ms AC MashishiANC Ms FF MushwanaANC Mr JJ SkosanaANC Mr K MoepengANC Mr C MoniANC Mr DC SmilesDA Ms A LovemoreDA Ms L AdamsCOPE Mr W MadishaCOPE Mr AM MpontshaneIFP Ms HS MsweliIFP Mr MH HoosenID Mr RB BhoolaMF Mr KJ DikoboAZAPO Honourable members of the Education Portfolio Committee: 2

3. Section A Strategic Overview Strategic outcome oriented goals Legislative and Other Mandates Section B Service delivery environment Organisational environment Key policy developments Programme 1: Dispute Management Services Programme 1.2: Professional Development and Training Programme 2: Collective Bargaining Services – National Programme 2.1: Collective Bargaining Services – Provincial Programme 3: Executive Services Programme 4: Corporate Services Programme 5: Capital Expenditure Section C Annual Financial Statements Conclusion Table of Contents 3

4. Section A 4

5. 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;  Transparency: Ensure access to information by citizens; Strategic Overview 5

6.  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  Efficiency: Delivery of quality services economically. Strategic Overview (Cont.) 6

7. 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. Not Achieved: Item on ‘Research’ removed from the Council’s agenda. Goal 2: Equal importance is attached to proactive dispute prevention and dispute resolution. Achieved: Provided training to Dispute Practitioners. Goal 3: Collective bargaining processes maximise the scope of the parties’ shared interest. In Progress: Management Plan with set timeframes to address the Council’s underperformance. Recommendations of the Lekgotla to be implemented in the 2013/14. Goal 4: Provide appropriate support and training for all involved in dispute resolution and collective bargaining. Achieved: 72 panellists and commissioners trained. Goal 5: Sound communication strategies, special initiatives and campaigns support and complement the core activities of the Council. Achieved: Survey conducted on the effectiveness of the Council’s communication strategy 7

8. Applicable Legislation  Labour Relations Act 66 of 1995  Public Finance Management Act 1 of 1999  Employment of Educators Act 76 of 1998  Further Education and Training Colleges Amendment Act 3 of 2012 Other Mandates  Service Delivery Agreement of the Minister of Basic Education  Action Plan to 2014: Towards the realisation of schooling 2025 Legislative and Other Mandates 8

9. Section B: Performance Information 9

10. Service Delivery Environment EXCO Lekgotla held in December 2012 to improve performance 10 FOCUS AREAS FOR 2013/14 Dispute Management Services Dispute Prevention and Facilitation - Proactive approach – a focus on prevention - Training of Panellists and Parties (emphasis on Dispute Resolution Practitioners) - Establishment of Dispute Prevention Committees / Task Team (all provincial chambers) Dispute Resolution - Emphasis on: “Appointments and Promotions” - Emphasis on: Special disputes involving a child as a victim

11. Service Delivery Environment (Cont.) Collective Bargaining Services Temporary Educators Incentives Conditions of service for ECD practitioners Research (RPL and ECD) 11 FOCUS AREAS FOR 2013/14

12. Organisational Environment Supply Chain Management (SCM) unit. Career and Succession Planning Strategy will be employed to ensure that existing skills are developed and new talent is cultivated. Challenge: Fixed income. 12 FOCUS AREAS FOR 2013/14

13. Key Policy Developments & Legislative Changes  Higher Education and Training Laws Amendment Act 25 of 2010  FETC Amendment Act 3 of 2012 (Scope of the Council) Future considerations  LRA Amendment Bill of 2012  Basic Conditions of Employment Amendment Bill of 2013 13

14. Programme 1 Dispute Management Services 14

15. Dispute Management Services Purpose: To manage disputes proactively (prevention and resolution) Sub-programme: Professional Training and Development Strategic Objectives:  Provision of dispute resolution services  Resolution of special disputes  Prevention of disputes  Training and development services  Professional development and training 15

16. Dispute Management Services (Cont.) Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Provision of Dispute Resolution Services Conciliation finalised within 30 days from registration of dispute 100%97% Council could only schedule 88% of its cases in the first quarter. Resolution of ordinary arbitrations within 180 days from when conciliation failed 70% of arbitrations to be resolved51% Due to the large number of adjournments and postponements. Resolution of special disputes involving children Resolution of promotion arbitrations within 120 days from when conciliation failed 70% of arbitrations to be resolved51% Due to matters remaining part heard and not being finalised in a single sitting. Resolution of arbitrations where a child is a victim within 120 days from when conciliation failed 70% of arbitrations to be resolved51% Due to the complexity of the cases and the number of witnesses under subpoena. 16 Performance Information

17. Dispute Management Services (Cont.) Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Prevention of disputes 60% of grievances are finalised per province to prevent possible disputes 20% Only Free State, North West and Mpumalanga submitted reports on finalised grievances. Training and Development Training and development to 240 DRPs and Commissioners Training and development is provided to 240 Dispute Resolution Practitioners and Panellists 239 Due to non- availability of Panelists. Professional Development and Training Relevant professional development and training is provided to 70 DRPs in all Provinces Relevant professional development and training is provided to 70 DRP’s in all Provinces 72 Prospective Panellists were accommodated at no extra cost. 17

18. Dispute Management Services (Cont.) Referrals:  673 disputes received  Predominantly related to ULP – Promotion and Appointments Jurisdiction: Out of 673 referrals:  395 (59%) in jurisdiction  192 (29%) out of jurisdiction  86 (12%) determination through condonation 18

19. Dispute Management Services (Cont.) Provincial Referrals 19

20. Dispute Management Services (Cont.) Nature of disputes referred Out of 673 disputes referred:  193 (29%) ULP – Promotion and Appointments  253 (38%) Alleged Unfair Dismissals  97 (14%) Other ULP’s  70 (10%) Interpretation of Collective Agreements  42 (6%) Basic Conditions of Employment Act enforcements  17 (3%) Sexual offences involving a learner  1 dispute of mutual interest 20

21. Dispute Management Services (Cont.) Disputes by outcome Out of 415 disputes finalised:  161 arbitration awards  69 settled at arbitration  32 settled at conciliation  81 withdrawn 32 withdrawn at conciliation 49 withdrawn at arbitration  45 dismissed 22 at arbitration 23 at conciliation  27 rulings 21

22. Dispute Management Services (Cont.) Labour Court Reviews 22

23. Dispute Management Services (Cont.) Strategy to overcome areas of underperformance  Provision of practical training to DRS Practitioners.  Minimise postponements.  Encourage Panellists to enforce Clause 64.7 of the ELRC constitution.  Appropriate venues for hearings where a child is a victim.  Intermediaries appointed to protect the Rights of a Child.  Increase panel of Conciliators, Arbitrators and Interpreters.  Non-compliance of Panellists will be monitored. 23

24. Programme 1.2 Professional Development and Training 24

25. Professional Development and Training Purpose: To improve the quality of Panellists and Dispute Practitioners. Strategic Objective:  Improve qualifications of Dispute Resolution Practitioners. 25

26. Professional Development and Training (Cont.) 26 Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Professional Development and Training Improve qualifications of Dispute Resolution Practitioners 312311 Performance Information

27. Programme 2 Collective Bargaining Services: National 27

28. Collective Bargaining Services Purpose:  To contribute to the Council’s vision of a strengthened social contract between government, teacher unions and civil society.  To promote the best possible fit between good educational outcomes and a fair deal for the teaching profession.  To promote collective bargaining at national and provincial levels.  To promote respect for international conventions and labour legislation in the management of collective bargaining.  To support and facilitate special initiatives and campaigns. 28

29. Collective Bargaining Services (Cont.) Sub-programme: Collective Bargaining (Provincial) Strategic objectives:  Collective bargaining on matters of mutual interest in public education.  Provision of facilitation services to support collective bargaining at national and provincial levels; and  Research on teacher welfare and national development issues. 29

30. Collective Bargaining Services (Cont.) Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Collective Bargaining Conclude bargaining on identified matters of mutual interest in public education 20% of agreed matters of mutual interest are concluded successfully in bargaining meetings 10% Five (5) items are work in progress. One (1) item is going through mandating process. Two (2) items were taken off the agenda of Council as they were no longer considered a priority. Facilitation Services To ensure adequate post provisioning in all nine provinces 90% distribution of postsNot Achieved No adequate evidence received. Research Services Evidence based teacher welfare and national development issues identified Attend Education ConferenceNot Achieved No Education Conference was held during the financial year as Council had not identified any issues. 30 Performance Information

31. Collective Bargaining Services (Cont.) Overview Collective Agreements concluded:  Collective Agreement 1 of 2012: Occupation Specific Dispensation (OSD) For Education Therapists, Counsellors And Psychologists Employed In Public Education.  Collective Agreement 1 of 2013: Vote Weights of Trade Unions that are parties to Council.  5 Collective Agreements ratified (4 FETCBU and 1 Free State Chamber) 31

32. Collective Bargaining Services (Cont.) Strategy to overcome areas of underperformance  A Pre-Bargaining workshop is to be convened in 2013/14 to finalise the management plan on bargaining issues for approval by Council.  More emphasis to be placed on adherence to agreed time- frames as per the management plan. 32

33. Programme 2.1 Collective Bargaining Services: Provincial 33

34. Collective Bargaining Services: Provincial Purpose: To promote collective bargaining at provincial level. Performance IndicatorPlanned Target 2012/2013 Actual Achievement 2012/2013 Preparing for and managing collective bargaining To attend a national workshop for planning and evaluation of performance of chamber objectives Evaluation and planning done 8 provinces achieved Not Achieved: Limpopo To convene a workshop to identify issues of mutual interest for bargaining Issues of mutual interest identified 3 provinces achieved Not Achieved: FS, GP, KZN, Limpopo, NW and WC Post Provisioning To prepare for consultation process Consultation concluded in the 2 nd term 8 provinces achieved Not Achieved: Limpopo 34

35. Collective Bargaining Services: Provincial Performance IndicatorPlanned Target 2012/2013 Actual Achievement 2012/2013 Information Sharing Employee Wellness Program To see the improvement in the health and morale of employees Declining rate of absenteeism2 provinces achieved Not Achieved: FS, GP, Limpopo, MP, NC, NW and WC Disputes To minimise the number of disputes declared The number of disputes minimised 7 provinces achieved Not Achieved: GP and MP Safety at schools To ensure that safety at schools plan is adopted Plan analysed and adopted5 provinces achieved Not Achieved: KZN, Limpopo, MP and NC Skills development To ensure that skills gaps identified during evaluation process are addressed Identified educators with skills gaps trained 8 provinces achieved Not Achieved: KZN Employment Equity To contribute to the improvements in achievement of equity targets Equity targets improved 4 provinces achieved Not Achieved: FS, GP, KZN, NC and WC Performance Management IQMS To monitor the evaluation of educators in terms of the performance management system Educators are evaluated 6 provinces achieved Not Achieved: GP, KZN and Limpopo 35

36. Collective Bargaining Services: Provincial Performance IndicatorPlanned Target 2012/2013 Actual Achievement 2012/2013 Implementation and Monitoring of Collective Agreements Post Provisioning To monitor the distribution of additional posts to schools as per the staff establishment Reports received and analysed by chamber 8 provinces achieved. Not Achieved: EC Implementation of Collective Agreements i) IQMS ii) PMDS iii) WSE To monitor the evaluation of educators in terms of the performance management system Ensure that selected schools on national sample are evaluated in line with the nine (9) focus areas 8 provinces achieved. Not Achieved: KZN Policy on incapacity leave and ill health retirement (PILIR) To ensure that the number of PILIR cases drop and receive progress reports, analysed and adopted by chamber Reduction in number of PILIR cases 5 provinces achieved. Not Achieved: FS, GP, KZN and WC Temporary Educators To monitor the extent of utilisation of temporary educators Temporary educators utilised maximally and effectively Reduction in the pool of temporary educators 8 provinces achieved. Not Achieved: KZN 36

37. Programme 3 Executive Services 37

38. Executive Services Purpose:  Management of Council’s service;  Sound financial and risk management;  Sound corporate governance;  Build and maintain the corporate image of the ELRC. Sub-programmes:  Facilitation Services;  Financial management, accounting and compliance services; and  Communication services. 38

39. Executive Services (Cont.) Strategic Objectives:  Maintenance of labour peace;  Unqualified audit;  Develop and maintain internal communication;  Comply with the Promotion of Access to Information Act (PAIA) and PFMA. 39

40. Executive Services (Cont.) Performance Information Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Facilitation Services Prevention of disputes and promoting, collaboration and collective bargaining Capacity to prevent disputes is enhanced in collaboration with PEDs and unions; mediators are identified  Training on dispute prevention and resolution – 9 provinces.  Facilitation in Eastern Cape  Eastern Cape Collective Agreement No. 1 of 2012 – Appointment of Temporary Educators. Respond to requests by MECs, HODs and provincial trade union leadership for intervention and facilitation Satisfied parties and minimal disruption to teaching and learning Achieved No requests were received from provincial departments. 40

41. Executive Services (Cont.) Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Financial management, accounting and compliance services To ensure an unqualified audit opinion and no repeat audit findings 00 Communication Services Communication services Compile regular newsletters on current developments in labour law and collective bargaining Conduct market research on the level of awareness among teachers regarding the services offered by the Council and the quality of service offered by the Media and Communications Department to clients Provide relevant information services Promote the image of the teaching profession. Generally promote fraternal relationships with all stakeholders New Negotiator and Labour Bulletin published. Market research conducted. Information services provided. Attended events convened by stakeholders and participated in marketing events - Education Week and World Teachers Day. 41

42. Executive Services (Cont.) Strategy to overcome areas of underperformance Communication Services New marketing strategies for 2013/14:  Community newspapers  Radio stations (9 provinces)  Social media platforms  Improved website  Partnership with SOMAFCO Trust  New Negotiator and Labour Bulletin published on a quarterly basis 42

43. Programme 4 Corporate Services 43

44. Corporate Services Purpose: To provide financial, human resource and administrative support. Sub-programmes:  Financial Accounting;  Administration; and  Mobilising Employee Services 44

45. Corporate Services (Cont.) Strategic Objectives:  Maintenance of financial and administrative systems  Procurement  Train and develop staff  Healthy and safe work environment  Maintenance of premises and security  Information technology and communication system 45

46. Corporate Services (Cont.) Performance Information: Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Maintain and improve the finance and administrative systems No adverse impact on the operations Procure goods and services within policies and guidelines No major disruption to operations Maintain good labour relations Zero grievances Train and develop staff 80% of employees trained and developed 60% 20% were not trained as there was no workplace skills plan in place. Ensure a healthy and safe work environment Zero injuries at work Maintain and improve the premises and security systems respectively No major incident 46

47. Corporate Services (Cont.) Performance Information: Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Provide reliable information technology and communication systems Systems older than five years 80% Due Diligence Report from SITA has detected areas that needs attention. Awaiting plan from SITA on the implementation of recommendations. 47

48. Corporate Services (Cont.) Strategy to overcome areas of underperformance  Lack of SCM unit hinders procurement function  Underperformance caused by slow process of filling vacant positions  Vacant positions will be filled in 2013/14 financial year 48

49. Programme 5 Capital Expenditure 49

50. Capital Expenditure Purpose: To provide capital resources. Strategic Objectives:  Manage property and assets  Procurement Planned Target:  Building Refurbishment Project 50

51. Capital Expenditure (Cont.) Performance Information: Strategic objectivesPlanned Target 2012/2013 Actual Achievement 2012/2013 Manage the property and assets of the Council Property maintained on a regular basis Not Achieved EXCO revised specifications of refurbishment. Task team to start process in the new financial year. Timeous procurement to be delivered Services not hampered due to non delivery Services not hampered due to non delivery. 51

52. Section C: Annual Financial Statements 52

53. Financial Highlights Levies Received 201320122011 49,31949,69349,422 Number of Contributors 410,991414,104411,850 53

54. Financial Highlights (Cont.) 20132012 2011 R’000R’000 R’000 Total Income 49,32149,692 49,422 Total Expenditure 43,90447,938 50,266 Operating Surplus/(deficit) 5,417 1,755 (844) Interest Income 4,946 4,492 4,365 Surplus/(deficit) 10,363 6,247 3,521 FINANCIAL PERFORMANCE 54

55. Financial Highlights (Cont.) ACTUALBUDGET ACTUAL% BUDGET % DRS 5,833 6,330 14 10 TRAINING 2,157 3,353 5 6 DPSS (FTSS) 9,250 11,212 21 19 CBS 4,538 5,730 10 10 GOVERNANCE 1,322 1,539 3 2 RESEARCH 544 0 1 PROJECTS -28 483 0 1 SUPPORT SERVICES 6,185 9,680 14 16 STAFF COST 14,648 20,486 33 35 TOTAL 43,905 59,357 100 100 FUNDING OF OPERATIONS 55

56. Financial Position LIQUIDITY  Ability to pay short term debt  Ideal ratio >1  CASH 110  CURRENT LIAB. 52 SOLVENCY  Ability to survive in the long term  Avoid insolvency  Remain solvent 56

57. Future Challenges REVENUE  Revenue management  Budgetary constraints EXPENDITURE  Procurement and contract management  Expenditure management  Fruitless and wasteful expenditure – slight decrease OTHER  Performance audit  Pre-determined objectives 57

58. 2013/14 financial year heralds new period of sustained improvement. Council appreciates oversight role of Portfolio Committee. Conclusion 58