1. ELRC ANNUAL REPORT 11 OCTOBER 2005

2. VISION To strive towards the continuous maintenance and promotion of labour peace, accomplished in the spirit of parties to the Council working together and contributing towards the transformation and development of a quality South African Public Education sector.

3. To be the leading provider of quality, effective, efficient and non-partisan administration and facilitative mechanisms for Labour Peace and for the development of a quality South African Public Education sector. MISSION

4. As an organisation, the ELRC is guided by the following Batho Pele principles and values: We value people that we serve and those with whom we work; We commit ourselves to be fair, ethical, trustworthy and accountable in all of our work; We endeavour to be customer-service oriented, striving to meet the needs of our clients; ORGANISATIONAL VALUES

5. We aim to work together as a team, encouraging co-operation both from ourselves and others around us; We strive to achieve and maintain excellence; always meeting the highest standards of performance at all levels of service outputs and professionalism in all of our work; We strive to promote communication between ourselves and our clients; ORGANISATIONAL VALUES (Cont.)

6. We commit to the development and capacity building of our staff through learning and growth; We encourage innovation as a means to continually address new issues and seek better ways to achieve our goals; We commit to our work and to the vision and mission of the ELRC. ORGANISATIONAL VALUES (Cont.)

7. To facilitate administratively and effectively in the negotiation and consultation process as a bargaining chamber; To facilitate and provide for a non- partisan forum for the prevention and resolution of disputes. CORE BUSINESS

8. Our initiatives to promote this core business will be: To promote communication between parties; To provide Human Resources Development for all staff members; To provide research services to parties on professional and education labour relations issues; CORE BUSINESS (Cont.)

9. To interact with stakeholders on behalf of Council; and To assist in the implementation of resolutions and the enforcement of agreements and awards. CORE BUSINESS (Cont.)

10. Negotiation Support Services National Achievements Conducted research into factors that impact on Post Provisioning Norms and to revise the PPN Model. Concluded a collective agreement on an IQMS for School-based Education Therapist and Psychologists, and Public FET College Based Educators

11. Concluded an agreement on the Vote Weights for the employee parties to the Council Collective Agreement 1 of 2004 Collective Agreement 1 of 2005 An agreement reached on the payment of backlogs in salary progression Collective Agreement 2 of 2005 Negotiation Support Services National Achievements (Cont.)

12. An agreement reached on the appointment of Full Time Shop Stewards (FTSS) Collective Agreement 3 of 2005 Negotiation Support Services National Achievements (Cont.)

13. Dispute Resolution Services Statistics 2004/2005 A total number of 671 disputes referred to the Council. 467 were successfully dealt with through conciliation/arbitration. A total number of 44 cases were either withdrawn, did not proceed or were removed due to lack of jurisdiction. 160 cases are still in process. Kwazulu Natal account for almost 41 %. Western Cape has overtaken Limpopo for second place.

14. Statistics of Disputes Referred per Issue in the Year 2004/2005

15. Dispute Resolution Services Eastern Cape 77 Referrals

16. Dispute Resolution Services Free State 44 Referrals

17. Dispute Resolution Services Gauteng 69 Referrals

18. Dispute Resolution Services KwaZulu Natal 266 Referrals

19. Dispute Resolution Services Limpopo 64 Referrals

20. Dispute Resolution Services Mpumalanga 16 Referrals

21. Dispute Resolution Services Northern Cape 8 Referrals

22. Dispute Resolution Services North West 23 Referrals

23. Dispute Resolution Services Western Cape 91 Referrals

24. Dispute Resolution Services National Department of Education 13 Referrals

25. Dispute Resolution Services Condonations – 2004/2005 A total number of 105 application for condonations were received. 48 Application for condonations were granted. 27 were refused.

26. Dispute Resolution Services Total Number of Disputes per Province (2004-2005)

27. Annual Financial Statements Management Report Important Policy decisions and strategic issues facing Council NPDE and SADC Significant events that have taken place during the year World Teachers Day Major projects undertaken during the year Research on workload of teachers – HSRC Research on Post Provisioning Norms - CEPD

28. Spending trends The core business of Dispute Resolution and Negotiations consumed about 60 % of the budget Service rendered Number of cases handled by Council Meetings facilitated Capacity constraints if any Staff turnover Annual Financial Statements Management Report

29. Public / Private Partnership Corporate Governance New / Proposed Activities IIRA Congress Events after the Reporting Date Financial Management Post of CFO filled Annual Financial Statements Management Report

30. Reporting Separate financial statements: Council Transformation Annual Financial Statements Management Report

31. External Audit Unqualified Auditor-General Annual Financial Statements Management Report

32. Compliance PFMA Audit Committee Internal Audit Annual Financial Statements Management Report

33. Performance Information Decrease in revenue Stagnant levies Use of reserves Decrease in expenditure Excess expenditure Sustainability Annual Financial Statements Management Report

34. Balance Sheet 31 March 2005 Assets 20052004 RR ASSETS Non Current Assets Property, plant and equipment8,629,792 8,677,767 Current Assets 25,375,954 27,952,712 Trade and other receivables4,969,253 3,383,487 Cash and cash equivalents20,406,701 24,569,225 TOTAL ASSETS34,005,74636,630,479

35. Balance Sheet 31 March 2005 Liabilities 20052004 RR ASSETS Non Current Assets Property, plant and equipment8,629,792 8,677,767 Current Assets 25,375,954 27,952,712 Trade and other receivables4,969,253 3,383,487 Cash and cash equivalents20,406,701 24,569,225 TOTAL ASSETS34,005,74636,630,479

36. Income Statement for the year ended 31 March 2005 20052004 RR CONTINUING OPERATIONS Revenue13,518,80615,634,450 Other income17,2831,752,517 Total income 13,536,08917,386,967 Administration expenses7,953,1926,011,359 Other operating expenses10,124,02213,556,352 Deficit from operations (4,541,125) (2,180,744) Investment income1,399,498 1,815,313 Deficit for the year(3,141,627) (365,431)

37. Cash Flow Statement for the year ended 31 March 2005 20052004 RR CASH FLOW FROM OPERATING ACTIVITIES Cash receipts from contributors13,536,089 17,386,967 Cash paid to suppliers and employees(18,075,971) 11,736,281 Cash generated from operations(4,539,882) 5,650,686 Investment income1,399,498 1,815,313 Net cash (outflow)/inflow from operating activities (3,140,384) 7,465,999 CASH FLOW FROM INVESTING ACTIVITIES Fixed assets acquired(1,022,140) (853,787) Net cash (outflow) from investing activities (1,022,140) (853,787) Net decrease in cash and cash equivalents(4,162,524) 6,612,212 Cash and cash equivalents at the beginning of year24,569,225 17,957,013 CASH AND CASH EQUIVALENTS AT END OF YEAR20,406,701 24,569,225

38. Transformation Fund Balance Sheet 31 March 2005 - Assets 20052004 RR ASSETS Non Current Assets Property, plant and equipment67,524 139,363 Current Assets 33,277,07642,887,594 Trade and other receivables113,431 281,745 Bank balances and cash33,163,645 42,605,849 TOTAL ASSETS33,344,60043,026,957

39. Transformation Fund Balance Sheet 31 March 2005 - Liabilities FUNDS AND LIABILITIES Equity Trust Funds19,892,429 28,426,331 Current Liabilities Trade and other payables13,452,171 14,600,626 TOTAL FUNDS AND LIABILITIES33,344,600 43,026,957

40. Transformation Fund Income Statement for the year ended 31 March 2005 20052004 RR INCOME 2,603,5388,783,094 Interest received - Transformation Fund2,603,538 8,783,094 EXPENDITURE 11,137,44093,591,074 Transformation Fund241,02778,419 Research and Development Fund11,599,72242,430,221 Shop Stewards Fund383,8811,420,538 National Professional Diploma in Education Fund(4,130,941) 46,678,320 Special Programmes Fund3,043,7511,983,576.00 Public Service Co-ordinating Bargaining Council Fund- 1,000,000.00 Deficit for the year(8,533,902) (84,807,980)

41. Transformation Fund Cash Flow Statement for the year ended 31 March 2005 20052004 RR CASH FLOW FROM OPERATING ACTIVITIES Cash applied to operations(12,045,742) (89,872,706) Investment income2,603,538 8,783,094 - Net cash (outflow)/inflow from operating activities (9,442,204) (81,089,612) Net decrease in cash and cash equivalents(9,442,204) (81,089,612) Cash and cash equivalents at the beginning of year42,605,849 123,695,461 CASH AND CASH EQUIVALENTS AT END OF YEAR33,163,645 42,605,849