1. ELRC Budget Review Three-Year Strategic Plan (2013-2015) & Annual Performance Plan (2014-2015)
08 July 2014

2. Honourable members of the Education Portfolio Committee:
Ms N Gina, Chairperson ANC Ms NR Mokoto ANC Mr TZM Khoza ANC Ms JV Basson ANC Mr HD Khosa ANC Mr D Mnguni ANC Ms A Lovemore DA Ms D Van Der Walt DA Ms HS Boshoff (ALT) DA Ms NR Mashabela EFF Mr AM Mpontshane IFP Ms CN Majeke UDM Mr MS Mabika NFP Mr LM Ntshayisa (ALT) AIC

3. Table of Contents 1. Introduction Legislative Mandates
Situational Analysis
ELRC Programmes
Programme 1: Administration Services
Programme 2: Dispute Management Services
Programme 3: Collective Bargaining Services
5. Overview of 2014/15 Budget & MTEF Estimates
ELRC Organogram
Conclusion

4. Introduction The Annual Performance Plan, together with the Budget:
Was developed by the management of the ELRC under the guidance of the Accounting Authority;
Is in line with the current Strategic Plan;
Accurately reflects the performance targets which the ELRC will endeavour to achieve given the resources allocated in the budget for 2014/15;
Contribute towards the achievement of Outcome 1 (improved quality of
basic education); and
Is achievable within the mandate of the Council.

5. Introduction (Cont.)
The Council is confident that the strategic vision and the Annual Performance Plan will deliver improved services in the financial year 2014/15.
The strategic outcome oriented goals of the ELRC are:
Proactive dispute prevention and resolution;
Collective bargaining processes that maximizes the scope of the Parties’
shared interest;
Appropriate support and training for all involved in dispute resolution and
collective bargaining;
Sound communication strategies that support and complement the core
activities of the Council; and
Research, monitoring and evaluation activities that provide an
evidence base for improved policies and policy implementation in basic
education.

6. Legislative Mandates Constitutional: Section 23 Section 28(2)
Labour Relations Act (LRA) 66 of 1995
Employment of Educators Act (EEA) 76 of 1998
Other:
Service Delivery Agreement of the Minister of Basic Education
Action Plan to 2014

7. Situational Analysis
The Factors that influence plans and activities of Council:
Use of legal representatives influence dispute resolution process; and
Unavailability of children’s courts.
Performance Delivery Environment
ELRC is a Bargaining Council in terms of Section (37)(2) of the LRA of 1995.
Areas to be addressed in 2014/15:
Dispute Management Services
Dispute Prevention (Dispute Prevention Committees)
Facilitation and Intervention (minimise and resolve issues to circumvent potential conflict)
Dispute Resolution (venues for special cases, settling cases at conciliation)

8. Situational Analysis (Cont.)
Collective Bargaining Services
Temporary educators (monitor impact of proposed amendments to LRA)
Incentives for educators (monitor implementation on current policy on incentives)
Research (ECD)
Organisational Environment
Establishment of Supply Chain Management (SCM) Unit
Human Resource Management
FETC Bargaining Unit
Funding Model
Status of ELRC as Bargaining Council and Schedule 3A Public Entity

9. ELRC Programmes Programme 1: Administration Services
Programme 2: Dispute Management Services
Programme 3: Collective Bargaining Services

10. Programme 1: Administration Services
PURPOSE:
To provide support services to the core operational functions of the Council, to ensure that it delivers an efficient and effective service on its mandates.

11. Strategic Objectives: Administration Services
8.1.1 Minimise fruitless and wasteful expenditure Eliminate irregular expenditure Establish a SCM unit and provide training Train and develop staff (WSP) Introduce employee wellness programmes Implement the Council’s Marketing Strategy to promote the image of the ELRC Manage the property and assets of the Council with focus on increasing effectiveness, economical practices, transparency and integrity

12. Annual Targets for 2014/15: Administration Services
Strategic Objective
Annual Target
8.1.1 Minimise fruitless and wasteful expenditure
Reduce by 100%
8.1.2 Eliminate irregular expenditure
No irregular expenditure
8.1.3 Establish a SCM unit and provide training
SCM officials trained and developed
8.1.4 Train and develop staff
30 (out of 52 staff members)
8.1.5 Introduce and conduct employee wellness programmes
4 (wellness days)
8.1.6 Implement the Council’s Marketing Strategy to promote the image of the ELRC
Conduct survey research to measure how the Council is perceived by educators
(Sample: educators)
8.1.7 Manage the property and assets of the Council with focus on increasing effectiveness, economical practices, transparency and integrity
Property is maintained on a regular basis.

13. Quarterly Targets for 2014/15: Administration Services
Performance Indicator
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
8.3.1 Fruitless and wasteful expenditure minimised
Reduced by 50%
Reduced by 70%
Reduced by 90%
Reduced by 100%
Irregular expenditure eliminated
No irregular expenditure
8.3.3 A SCM unit established and training provided
Recruitment process for appointment of SCM officials
Appointment of SCM officials
Training of SCM officials
Evaluation: conduct performance assessment of SCM officials
8.3.4 Staff trained and developed
8 (staff members)
8 (staff members)
6 (staff members)

14. Quarterly Targets for 2014/15: Administration Services
Performance Indicator
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
8.3.5 Employee wellness programmes conducted
1 (wellness programme)
8.3.6 Research survey conducted on the image of the Council
1 400 (surveys completed by educators)
1 200 (surveys completed by educators)
Research report compiled and findings presented to management

15. Quarterly Targets for 2014/15: Administration Services
Performance Indicator
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
8.3.7 Property refurbished and maintained
Project Manager appointed
Bid specification for refurbishment of building finalised and tender issued
Adjudication and evaluation completed
Tender awarded
Building refurbishment commences
80% of refurbishment completed

16. Programme 2: Dispute Management Services
PURPOSE:
To manage disputes proactively.
Dispute Prevention
Efficiencies: Special Disputes
Training and Development
Professional Development

17. Strategic Objectives: Dispute Management Services
8.4.1 Provision of dispute resolution services To conciliate disputes within 30 days Training of Dispute Resolution Practitioners To provide Training to Dispute Resolution Practitioners Professional Development Services To provide Professional Development to Panellists on special disputes.

18. Annual Targets for 2014/15: Dispute Management Services
Strategic Objective
Annual Target
8.4.1 Provision of dispute resolution services
To conciliate disputes within 30 days
100%
428 (cases)
8.4.2 Training of Dispute Resolution Practitioners
To provide Training to Dispute Resolution Practitioners
240 (Dispute Resolution Practitioners)
8.4.3 Professional Development Services
To provide Professional Development to Panellists on special disputes
80 (Panellists)

19. Quarterly Targets for 2014/15: Dispute Management Services
Performance Indicator
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
8.6.1 Provision of dispute resolution services
Conciliations finalised within 30 days
100%
107 (cases)
8.6.2 Training of Dispute Resolution Practitioners
Dispute Resolution Practitioners Trained
60 (Dispute Resolution Practitioners trained)

20. Quarterly Targets for 2014/15: Dispute Management Services
Performance Indicator
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
8.6.3.Panellists Professional Development
Panellists Professionally developed
20 (Panellists developed)

21. Programme 3: Collective Bargaining Services
PURPOSE: To promote collective bargaining at national and provincial levels and ensure the development of effective policies in a non disruptive environment.

22. Strategic Objectives: Collective Bargaining Services
Collective bargaining Conclude bargaining on identified matters of mutual interest in public education Research Services Evidence based teacher welfare and national development issues identified Quality Learning and Teaching Campaign (QLTC) Establish and empower all-inclusive and functional QLTC structures on all levels i.e. provincial, district, circuit/ward and school levels.

23. Annual Targets for 2014/15: Collective Bargaining Services
Strategic Objective
Annual Target
Collective bargaining
Conclude bargaining on identified matters of mutual interest in public education
4 (matters of mutual interest identified)
Research Services
Evidence based teacher welfare and national development issues identified
1 (research issue identified on ECD)
Quality Learning and Teaching Campaign (QLTC) Establish and empower all-inclusive and functional QLTC structures on all levels i.e. provincial, district, circuit/ward and school levels.
27 (functional QLTC structures)

24. Quarterly Targets for 2014/15: Collective Bargaining Services
Performance Indicator
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Collective bargaining Bargaining on matters of mutual interest concluded
1 out of 4 issues placed on the agenda of Council achieved
Research Services
Research report is available
Commission research (establish terms of reference)
Research report available

25. Quarterly Targets for 2014/15: Collective Bargaining Services
Performance Indicator
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Quality Learning and Teaching Campaign (QLTC)
All-inclusive and functional QLTC structures on all levels i.e. provincial, district, circuit/ward and school levels established
7 (functional QLTC structures)
6 (functional QLTC structures)

26. Overview of 2014/15 Budget & MTEF Estimates

27. Expenditure

28. Budget for 2014/15
The core business of Dispute Management Services and Collective Bargaining Services has been allocated 70% of the total budget, up from 66%.
The approved budget for 2014/15 is R77 million, including capital expenditure.
The Council anticipates an increase in capital expenditure, which relates to the refurbishment of the Council owned building.

29. Relating Expenditure Trends to Strategic-Oriented Goals
The funding of the Council’s strategic outcome oriented goals has not been compromised.
The expenditure of the ELRC is closely aligned to the income generated.
The funding model is unique and challenging.

30. Relating Expenditure Trends to Strategic-Oriented Goals (Cont.)
Accumulation of surplus funds. These accumulated reserves are adequate over the MTEF period.
Revenue increases, excluding the transfer from transformation fund and accumulated reserves, from R53.8 million in 2010/11 to R58,6 million in 2013/14, are due to an increase in interest from investments and transfers from reserves.

31. Relating Expenditure Trends to Strategic-Oriented Goals
Expenditure increased from R50.2 million in 2010/11 to R58,6 million in 2013/14, at an average annual rate of 5,5 percent, mainly due to increase in the staff complement and the Quality Learning & Teaching Campaign in the 2013/14 financial year.
The Council projects that deficits will arise over the MTEF period, due to income remaining constant. However, the Council has sufficient reserves to cover this deficit.
It is anticipated that the levies would have to be increased to cover the deficit from the 2017/18 financial year, since the deficits are not sustainable in the long term.

32. ELRC Organogram 2014/15

33. Conclusion
The Council appreciates the oversight role of the Portfolio Committee, which ensures accountability for the utilisation of limited resources, employed to fulfill the strategic goals of the Council, which ultimately serves the public education sector.
Activities for the first quarter of the 2014/15 financial year demonstrates the Council’s commitment to the goals set out in the Annual Performance Plan, and displays a commitment to not only goals related to public education, but the broad governmental goals of good governance, anti-corruption and support of economic transformation programmes.

34. THANK YOU.