1. Nedlac Presentation to the Labour Parliamentary Portfolio Committee
18 March 2015

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. Overview of the APP
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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

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

25. MTEF Budget - 2015/16 – 2017/18 Income Estimates INCOME
Grant (Department of Labour)
Interest
Other income
Total income
29 331 000 24

26. 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

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

28. 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
1.2 Corporate Services
1.3 Finance Administration
1.4 Office Accommodation
1.5 General Office Administration
1.6 HR Management
Sub Total
Corporate services budget reduced in order to reduce expenditure on consultants
General Office Administration allocation in included the R13 million budget to renovate Nedlac House 27

29. 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 1 
2.2 Chambers - Public Finance
2.3 Chambers - Trade & Industry
2.4 Chambers - Labour Market
2.5 Manco Task Teams
2.6 Section 77
2.7 Communications and Outreach
Sub Total
Chamber budget have been increased in order to facilitate engagements by these structures
Increases are also in line with annual inflationary increases 28

30. 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
3.2 Community Constituency
3.3 Labour Constituency
Sub Total
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

31. MTEF Budget - 2015/16 – 2017/18 Summary of Expenditure EXPENDITURE
Capital expenditure
Programme 1
Programme 2
Programme 3
TOTAL EXPENDITURE
Revenue 30

32. Budget – APP 2015 -16 Expenditures Items Allocations ADMINISTRATION
Salaries and Wages
Social contributions
Staff training and development
Study grants
Accounting fees
Advertising
Audit fees
Bank charges
Building maintenance
Capital expenses 31

33. Budget – APP 2015 -16 Expenditures Items Allocations
Cell phone allowances
Cleaning
Consulting fees
Courier
Depreciation
Electricity, water, rates and taxes
General maintenance
Insurance
Legal fees 32

34. Budget – APP 2015 -16 Expenditures Items Allocations
Network maintenance
Photocopy costs
Security costs
Staff wellness
Stationary
Telephone
Vehicle running costs
Total 33

35. Budget – APP 2015 -16 Expenditures Items Allocations CORE OPERATIONS
International meetings
Chamber and task team meetings
Refreshments
Section 77 meetings
Labour Relations engagement process
Annual Report
Printing-publications
Public relations
Subscriptions
Website and internet
Travel and accommodation
Total 34

36. CAPACITY BUILDING FUNDS
Budget – APP
Expenditures Items
Allocations
CAPACITY BUILDING FUNDS
Business Constituency
Community Constituency
Labour Constituency
Total 35

37. Conclusion
Thank you 36