1. Presentation to Parliament ELRC Annual Report 2014/15 Presentation to Parliament ELRC Annual Report 2014/15 14 October 2015 “Realising the importance of a unified determination to address labour imbalances that impedes progress in public education.”

2. Ms N Gina, ChairpersonANC Ms NR Mokoto ANC Mr TZM Khoza ANC Ms JV Basson ANC Mr HD Khosa ANC Mr D Mnguni ANC Ms A LovemoreDA Ms D Van Der WaltDA 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 Honourable members of the Education Portfolio Committee Hope Future 2

3. Table of Contents Hope Future 3 Section A Legislative and other Mandates Strategic Overview Strategic outcome-oriented goals Section B Service delivery environment Organisational environment Policy developments and legislative changes Performance information by Programme Programme 1: Administration Services Programme 2: Dispute Management Services Programme 3: Collective Bargaining Services Section C Annual Financial Statements Conclusion

4. SECTION A Strategic Overview SECTION A Strategic Overview Dedication 4

5.  The ELRC is delisted in terms of the Public Finance Management Act (PFMA) 1 of 1999 from 1 st April 2015. Applicable legislation  LRA 66 of 1995 (as amended)  PFMA 1 of 1999 (as amended)  EEA 76 of 1998 (as amended)  FETC Amendment Act 3 of 2012 Legislative and other mandates Hope Future 5

6. 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 (Cont.) Hope Future 6

7. 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 Hope Future 7

8.  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.) Hope Future 8

9. Strategic outcome-oriented goals Hope Future 9

10. Strategic outcome-oriented goals (Cont.) Hope Future 10

11. Strategic outcome-oriented goals (Cont.) Hope Future 11

12. SECTION B Performance Information SECTION B Performance Information Hope 12

13. Dispute Management Services Dispute Prevention and Facilitation  Proactive approach – a focus on prevention;  Functional Dispute Prevention Committees / Task Teams (all provincial chambers); and  Work of the Dispute Prevention Task Teams focussed on need for a comprehensive workshop on Discipline of Educators in KwaZulu-Natal and Gauteng. Service Delivery Environment Hope Future 13

14. Dispute Management Services Dispute Resolution  Improvement of efficiencies related to resolution of disputes on appointments and promotions;  Recruitment and training of Interpreters and Intermediaries;  Secured appropriate venues for special hearings;  Collective Agreement No. 1 of 2015 on the appointment of a panel of Conciliators and Arbitrators; and  Draft Collective Agreement on ELRC Guidelines for Promotion Arbitrations. Service Delivery Environment (Cont.) Hope Future 14

15. Collective Bargaining Services  Parties continued to monitor the implementation of the current policy on incentives;  Research: Conditions of service of ECD Practitioners in South Africa;  PAM task team concluded its work during period under review;  Draft Collective Agreement No. 1 of 2014: Quality Management System (QMS) for School- Based Educators. Service Delivery Environment (Cont.) Hope Future 15

16. Administration Services  Functional SCM unit;  Recruitment and Retention Strategy;  Total Reward Strategy, Salary Benchmarking and Remuneration Policy;  Council developed 5-year Employment Equity Plan;  In-house internal audit function to improve effectiveness of governance, risk management and control processes and ensure compliance;  Safety, Health and Environmental (SHE) Committee for staff; and  Draft Collective Agreement to address static revenue. Organisational Environment Hope Future 16

17. FETC Bargaining Unit  Council approved the FETCBU submission for the designation of the ELRC to include lecturers employed in terms of the Public Service Act and as per the FETC Amendment Act 1 of 2013. Policy developments & legislative changes Hope Future 17

18. ELRC delisting as Schedule 3A Public Entity  Council embarked on process to delist as Schedule 3A Public Entity in 2014/15 financial year;  Registrar of Labour Relations highlighted the Council’s non-compliance with the LRA 66 of 1995, sections 53 (1) and 53 (2)(b). Failure to delist in terms of PFMA, would have led to review of the Council’s registration as bargaining council;  Minister of Finance, acting in terms of Section 47 & 48 of the PFMA, 1999 – delisted the Council with effect 31 st March 2015. Policy developments & legislative changes (Cont.) Hope Future 18

19. Performance Information by Programme Dedication 19

20. 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. Strategic objectives:  Maintain and improve financial and administrative systems;  Procure goods and services within policies and guidelines;  Maintain good labour relations; Programme 1: Administration Services Hope Future 20

21. Strategic objectives:  Train and develop staff;  Ensure a healthy and safe work environment;  Maintain and improve the premises and security systems respectively; and  Provide reliable information technology and communication systems. Programme 1: Administration Services Hope Future 21

22. Performance for 2014/15 Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Administration Services Minimise fruitless and wasteful expenditure Reduce by 100%Not Achieved Objective not achieved due to Parties not attending scheduled meetings. Eliminate irregular expenditure No irregular expenditure Not Achieved Incurred due to non- compliance with the requirements of Treasury Regulations 16A3 & Practice note 8 of 2007/8. Establish a SCM unit and provide training SCM officials trained and developed Not Achieved Unit established during period under review & officials recruited in month of October – training to be in the new financial year. 22

23. Performance for 2014/15 Hope Future Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Administration Services Train and develop staff30Achieved 53 Introduce and conduct employee wellness programmes 4 Achieved 4 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: 4 000 educators) Achieved Survey research conducted and findings presented to management (Sample: 1 862 educators) 23

24. Performance for 2014/15 Hope Future Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Administration Services Manage the property and assets of the Council with focus on increasing effectiveness, economy, transparency and integrity 80% of refurbishment completed Not Achieved 100% demolition work done and excavation has commenced. 24

25. Finance and Administrative Systems  Council finalised process of changing banks;  SARS refunded the Council an amount of R920 675, in relation to R1,8-million that was incorrectly deducted. Information Technology  Majority of IT findings addressed in 2014/15;  IT Policies were updated (Disaster Recovery Plan and IT Policy on Hardware & Software); Overview: Administration Services Hope Future 25

26. Information Technology (Cont.)  New policies were drafted (IT Change Management Policy & Patch Management Policy). Communications  Survey research was conducted on how Council is perceived by educators. Recommendations of study has informed marketing activities for 2015/16; Overview: Administration Services Hope Future 26

27. Communications (Cont.)  Council’s profile was featured in the Education Handbook and message of support for the NTAs was placed in the Teacher supplement of Mail & Guardian;  Council participated in 10 provincial Party conferences (exhibitions);  Exhibition at Education Week; Inspired Teachers’ Conference and SA Basic Education Conference. Overview: Administration Services Hope Future 27

28. Building Refurbishment Project  Site was handed over to appointed contractor;  Project will be completed in November 2015. Overview: Administration Services Hope Future 28

29. Strategy to overcome areas of under performance Fruitless and wasteful expenditure  The Council will introduce a “Cost Order” process in the 2015/16 financial year in an effort to curb wasteful expenditure. SCM unit  The training of SCM Officials has been deferred to the 2015/16 financial year. Irregular Expenditure  Disciplinary actions instituted against the SCM officer. Overview: Administration Services Hope Future 29

30. Purpose:  To manage disputes proactively (prevention and resolution). Strategic Objectives:  Provision of dispute resolution services  Training of Dispute Resolution Practitioners  Panellists Professional Development Services Programme 2: Dispute Management Services Hope Future 30

31. Performance for 2014/15 Hope Future Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Dispute Management Services Provision of dispute resolution services Conciliations finalised within 30 days 100%Not Achieved 67% 464 disputes were in jurisdiction, 309 were conciliated within 30 days Training of Dispute Resolution Practitioners Dispute Resolution Practitioners Trained 240Achieved 345 Panellists Professional Development Panellists Professionally developed 80Achieved 94 31

32. Referrals:  762 disputes received  Predominantly related to ULP – Promotion and Appointments  Recruitment and training of interpreters Jurisdiction: Out of 762 referrals:  464 in jurisdiction  298 out of jurisdiction Overview: Dispute Management Services Hope Future 32

33. Overview: Dispute Management Services Hope Future Provincial Referrals: 33

34. Strategy to overcome areas of under performance  Continuation of process to recruit and train Interpreters and Intermediaries in an effort to overcome delays and postponements.  Appropriate venues for special hearings.  Continuous provision of training to both Panellists and Dispute Resolution Practitioners to improve the efficiencies in terms of the quality of outcomes. Overview: Dispute Management Services Hope Future 34

35. Purpose:  To contribute to the Council’s vision of a strengthened social contract between government, teacher unions and civil society.  To create a conducive environment for improved quality in teaching and learning.  To promote collective bargaining at national and provincial levels.  To ensure development of effective policies for quality public education in a non-disruptive environment for teaching and learning. Programme 3: Collective Bargaining Services Hope Future 35

36. Collective Bargaining – National Strategic objectives:  Collective bargaining  Research Services  QLTC Programme 3: Collective Bargaining Services Hope Future 36

37. Performance for 2014/15 Hope Future Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Collective Bargaining Services: National Collective Bargaining Conclude bargaining on identified matters of mutual interest in public education 4 Achieved 7 Research Services A report on the factors that promote labour peace, educator morale and wellbeing is available 1 research report availableNot Achieved Council approved the research concept document on the Policy and Conditions of Service for the Institutionalisation of Grade R Practitioners and the appointment of a researcher to conduct the research, but no report has been tabled at Council. 37

38. Performance for 2014/15 Hope Future Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Collective Bargaining Services: National Quality Learning & 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 structuresNot Achieved 13 structures The training of districts only commenced in the second quarter of 2014 and it impacted negatively on achievement of the set targets. 38

39.  One evidence-based teacher welfare and national development issue was identified: Conditions of service of ECD Practitioners;  Thirteen (13) delegates participated in ILO Conference in Geneva during period under review;  Three (3) national agreements were concluded; and  Five (5) provincial agreements were ratified. Overview: Collective Bargaining Services Hope Future 39

40. Three national agreements:  CA 1 of 2014: The Process of Acquiring Organisational Rights in the Education Sector.  CA 2 of 2014: Quality Management System (QMS) for School Based Educators.  CA 1 of 2015: Appointment of a Panel of Conciliators and Arbitrators. Overview: Collective Bargaining Services Hope Future 40

41. Five provincial agreements ratified:  Mpumalanga CA 1 of 2014: Transfer of Serving Educators in terms of Operational Requirements and permanent Appointment of Temporary Teachers in Vacant Substantive Posts.  KwaZulu-Natal CA 1 of 2014: Procedure for dealing with the placement of Further Education and Training (FET) College Lecturers who remain in Employment with the Department of Education KwaZulu-Natal in terms of Collective Agreement Numbers 4 and 5 of 2007. Overview: Collective Bargaining Services Hope Future 41

42.  KwaZulu-Natal CA 2 of 2014: Framework and Guidelines for Implementation of Educator Incentives in KZN.  Gauteng CA 1 of 2014: Collective Agreement 1 of 2014 on the Conversion of Temporary Appointment of Post Level 1 Educators into Permanent Appointment. North West CA 1 of 2014: The Provincial Procedures for Principals Displaced as a Result of Rationalisation, Merger and/or Closure of Schools in giving effect to Collective Agreement 2 of 2003. Overview: Collective Bargaining Services Hope Future 42

43. Strategy to overcome areas of under performance Proposed recommendations for considerations by the QLTC Coordinators to ensure the training programme is strengthened:  Close cooperation between QCT and provincial Coordinators;  Provincial coordinators to assist in the dissemination and advocacy of the training of districts and stakeholders;  Compilation of accurate data of all QLTC structures and stakeholders. Overview: Collective Bargaining Services Hope Future 43

44. Strategy to overcome areas of under Performance  Research on Conditions of Service for the Institutionalisation of Grade R Practitioners, will be concluded in the 2015/16 financial year. Overview: Collective Bargaining Services Hope Future 44

45. Provincial performance for 2014/15 Hope Future Strategic objectives Planned Target 2014/2015 Actual Achievement 2014/2015 Status Collective Bargaining Services: Provincial Consultation, Implementation and Monitoring of Collective Agreements and Policies Post Provisioning A consolidated report on the consultation process for post provisioning is available. 4 MeetingsAchieved 4 Provinces Not Achieved Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Incentives for Educators Monitoring reports on the implementation of incentives for educators are available. 4 MeetingsAchieved 4 Provinces Not Achieved Free State Gauteng KwaZulu-Natal Mpumalanga Western Cape 45

46. SECTION C Annual Financial Statements SECTION C Annual Financial Statements Success 46

47. Analysis of Levy Contributions Hope Future 47 DETAILS 2014/152013/142012/132011/12 TOTAL LEVIES (Rmil) 49,21349,32249,319 49,693 TOTAL NUMBER OF CONTRIBUTORS 409,236 410,816 410,991414,104 AVG INCREASE/(DECREASE) IN TOTAL LEVIES (Rmil) (109) 3 (374) 271 AVG INCREASE/(DECREASE) IN CONTRIBUTORS (6,931) (175)(3,113)2,254

48. Financial Performance Hope Future 48 2014/152013/142012/132011/12 R’000 TOTAL REVENUE49,21349,32249,31949,693 OTHER INCOME7,2765,6964,9494,492 PERSONNEL RELATED EXPENSES (19,988) (15,549) (14,555) (14,625) TOTAL OPERATING EXPEDITURE (31,667) (30,033) (29,350) (33,312) SURPLUS/(DEFICIT)4,8339,43610,3646,247

49. Financial Performance Hope Future 49

50. Financial Performance per Programme Hope 50 Programme NameBudgetActual Expenditure (Over)/Under Expenditure Actual % Dispute Management Services10,11512,712(2,597)126% Collective Bargaining Services30,60224,0286,574105% Executive Services4,4933,77272184% Corporate Services12,76412,938174101% Capital Expenditure9,8202,8596,96129% Total67,79456,30911,48583% Future

51. Financial Position Hope Future 51 2014/152013/142012/132011/12 R’000 TOTAL INCOME56,48955,01854,26854,185 CASH & CASH EQUIVALENTS136,541127,197109,74995,814

52. Conclusion Hope Future 52 The Council appreciates oversight role that the Portfolio Committee played over the years. Principles of good corporate governance will remain an integral part of the Council’s operations.

53. Hope Future 53 Thank You.