elrc budget review three-year strategic plan (2013-2015) & annual performance plan (2014-2015)

ELRC Budget ReviewThree-Year Strategic Plan (2013-2015)

& Annual Performance Plan (2014-2015)

08 July 2014

Honourable members of the Education Portfolio Committee:

Ms N Gina, Chairperson ANC

Ms NR Mokoto ANCMr TZM Khoza ANCMs JV Basson ANCMr HD Khosa ANCMr D Mnguni ANC

Ms A Lovemore DAMs 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

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Table of Contents

1. Introduction2. Legislative Mandates3. Situational Analysis

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

5. Overview of 2014/15 Budget & MTEF Estimates

6. ELRC Organogram

7. Conclusion

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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 ofbasic education); and

Is achievable within the mandate of the Council.

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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.

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Legislative Mandates

Constitutional: • Section 23• Section 28(2)• Section 29(1)

• 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

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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)

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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

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ELRC Programmes

• Programme 1: Administration Services

• Programme 2: Dispute Management Services

• Programme 3: Collective Bargaining Services

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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.

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Strategic Objectives:Administration Services

8.1.1 Minimise fruitless and wasteful expenditure

8.1.2 Eliminate irregular expenditure

8.1.3 Establish a SCM unit and provide training

8.1.4 Train and develop staff (WSP)

8.1.5 Introduce employee wellness programmes

8.1.6 Implement the Council’s Marketing Strategy to promote the image of the ELRC

8.1.7 Manage the property and assets of the Council with focus on increasing effectiveness, economical practices, transparency and

integrity

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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: 4 000 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.

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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%

8.3.2 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)

8 (staff members) 6 (staff members)

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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)



Research report compiled and findings presented to management

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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

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Programme 2:Dispute Management Services

PURPOSE:

To manage disputes proactively.

• Dispute Prevention

• Efficiencies: Special Disputes

• Training and Development

• Professional Development

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Strategic Objectives:Dispute Management Services

8.4.1 Provision of dispute resolution services

To conciliate disputes within 30 days.

8.4.2 Training of Dispute Resolution Practitioners

To provide Training to Dispute Resolution Practitioners.

8.4.3 Professional Development Services

To provide Professional Development to Panellists on special disputes.

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Annual Targets for 2014/15: Dispute Management Services


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)

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Quarterly Targets for 2014/15:Dispute Management Services



8.6.1 Provision of dispute resolution services Conciliations finalised within 30 days

100%107 (cases)

100%107 (cases)

100%107 (cases)

100%107 (cases)

8.6.2 Training of Dispute Resolution Practitioners Dispute Resolution Practitioners Trained

60 (Dispute Resolution

Practitioners trained)







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Quarterly Targets for 2014/15:Dispute Management Services



8.6.3.Panellists Professional Development Panellists Professionally developed

20 (Panellists developed)




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Programme 3:Collective Bargaining Services

PURPOSE:To promote collective bargaining at national and provincial levels andensure the development of effective policies in a non disruptiveenvironment.

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Strategic Objectives: Collective Bargaining Services

8.8.1. Collective bargaining

Conclude bargaining on identified matters of mutual interest in public education

8.8.2. Research Services

Evidence based teacher welfare and national development issues identified

8.8..3. 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.

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Annual Targets for 2014/15:Collective Bargaining Services


8.8.1. Collective bargaining Conclude bargaining on identified matters of mutual interest in public education

4 (matters of mutual interest identified)

8.8.2. Research Services Evidence based teacher welfare and national development issues identified

1 (research issue identified on ECD)

8.8..3. 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)

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Quarterly Targets for 2014/15: Collective Bargaining Services



8.10.1. Collective bargaining Bargaining on matters of mutual interest concluded

1 out of 4 issues placed on the agenda of Council achieved




8.10.2. Research Services Research report is available

Commission research (establish terms of reference)

Research report available

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Quarterly Targets for 2014/15:Collective Bargaining Services



8.10.3. 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





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Overview of 2014/15 Budget & MTEF Estimates

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Expenditure

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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.

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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.

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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.

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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.

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ELRC Organogram 2014/15

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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.

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THANK YOU.

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elrc budget review three-year strategic plan (2013-2015) & annual performance plan (2014-2015)

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