ELRC BudgetThree-Year Strategic Plan (2013-2015)

& Annual Performance Plan (2014-2016)

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Presentation to Parliament

16 April 2013

Ms HH Malgas, Chairperson ANC

Ms N Gina ANCMs NW Madikizela-Mandela ANCMr ZS Makhubele ANCMs AC Mashishi ANCMr C Moni ANCMs FF Mushwana ANCMr JJ Skosana ANCMr D Smiles DAMs A Lovemore DAMs L Adams COPEMr W Madisha COPEMr AM Mpontshane IFPMs HS Msweli IFPMr MH Hoosen IDMr NM Kganyago UDMMr RB Bhoola MFMs C Dudley ACDPMr KJ Dikobo AZAPO

Honourable members of the Education Portfolio Committee:

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1. Introduction2. Legislative Mandates3. Situational Analysis4. Strategic Objectives

3. ELRC Programmes Programme 1: Dispute Management Services Programme 2: Collective Bargaining Services Programme 3: Administration Services Programme 4: Capital Expenditure

6. Overview of 2013/14 Budget & MTEF Estimates

7. ELRC Organogram

Table of Contents:

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The Annual Performance Plan, together with the Budget: Was developed by the management of the ELRC under the guidance of the Accounting

Officer;

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 2013/14;

Contribute towards the achievement of Outcome 1 (improved quality ofbasic education); and

Is achievable within the mandate of the Council.

An Executive Committee Lekgotla was held in December 2012 with the aim of identifying matters that will contribute towards the continuous improvement of the Council’s performance.

Introduction

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The Council is confident that the strategic vision and the Annual Performance Plan will deliver improved services in the financial year 2013/14.

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 core activities of the Council; and•Research and monitoring and evaluation activities that provide an evidence base for improved policies and policy implementation in basic education.

Introduction (Cont.)

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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

Legislative Mandates

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Legislative Amendments

• Further Education & Training Colleges (FETC) Amendment Act 3 of 2012

• Higher Education & Training Laws Amendment Act 25 of 2010

Other Mandates

• ELRC Constitution

• Labour Appeal Court (LAC) Rulings

Revision to Legislation & Other Mandates

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• Performance Delivery Environment

Executive Committee Lekgotla

FETC Amendment Act of 2012

Dispute Resolution Efficiencies

Dispute Prevention

Research

Situational Analysis

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• Organisational Environment

Supply Chain Management Unit

Dispute Resolution Practitioners

Special Disputes

Succession Planning

Funding Model

Situational Analysis (Cont.)

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• Strategic Goal 1: Provide efficient resolution of disputes within prescribed and pre-approved time limits.

• Strategic Goal 2: Assist Provincial Departments of Education in the improvement of resolving grievances by decreasing the number of grievances registered.

• Strategic Goal 3: Strengthen the arbitration and conciliation skills of dispute resolution practitioners by providing relevant pre-approved training and development to all parties concerned.

Strategic Objectives

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• Strategic Goal 4: Facilitate and Promote the collective bargaining process on matters of mutual interest.

• Strategic Goal 5: Monitor the implementation of Collective Agreements.

• Strategic Goal 6: Maintain good corporate governance and promote organisational effectiveness and efficiency.

Strategic Objectives (Cont.)

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As a way of trying to improve the performance of the Council, theAccounting Authority (EXCO) developed the following strategic goals,that emanated from the EXCO Legotla of December 2012:

Strategic Goal 1: To rebuild sound relations between the parties tothe Council.

Strategic Goal 2: To review structures and strengthening processesof collective bargaining.

Strategic Goal 3: To monitor, evaluate and ensure compliance tocollective agreements.

Strategic Goals

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Strategic Goal 4: To develop and implement a dispute preventionstrategy.

Strategic Goal 5: To enhance good governance with thedevelopment and implementation of a risk management strategy,effective performance management of the organization and aninvestment in human capital development.

Strategic Goals (Cont.)

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• Programme 1: Dispute Management Services

• Programme 2: Collective Bargaining Services • Programme 3: Administration Services

• Programme 4: Capital Expenditure

ELRC Programmes

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PURPOSE:

To manage disputes proactively.

• Dispute Prevention

• Efficiencies Special Disputes

• Training and Development

• Professional Development

Programme 1: Dispute Management Services

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• Strategic Objective 4.1.1 (a): Provision of dispute resolution services

• Strategic Objective 4.1.1 (b): Resolution of special disputes involving children

Strategic Objectives: Dispute Management Services

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Performance Indicators and Annual Targets

Annual Targets for 2014: Dispute Management Services

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PURPOSE:To ensure the development of effective policies in a nondisruptive environment.

• National

• Promotion of collective bargaining

• Research

Programme 2: Collective Bargaining Services

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PROVINCIAL

• Information sharing

• Consultations

• Implementation and monitoring of collective agreements

• Dispute prevention

Programme 2: Collective Bargaining Services (Cont.)

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• Strategic Objective 5.1.1 (a): Collective bargaining on matters of mutual interest in public education

• Strategic Objective 5.1.2:Research on teacher wellfare and national development issues

Strategic Objectives: Collective Bargaining Services

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Performance Indicators and Annual Targets

Annual Targets for 2014: Collective Bargaining Services (National)

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Performance Indicators and Quarterly Targets

Quarterly Targets for 2014: Collective Bargaining Services (Provincial)

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Performance Indicators and Quarterly Targets

Quarterly Targets for 2014: Collective Bargaining Services (Provincial)

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Performance Indicators and Quarterly Targets

Quarterly Targets for 2014: Collective Bargaining Services (Provincial)

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Performance Indicators and Quarterly Targets

Quarterly Targets for 2014: Collective Bargaining Services (Provincial)

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PURPOSE:Provide support services to core operational functionsof Council.

Programme 3: Administration Services

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• Strategic Objective 6.1.1: Maintain and improve the finance administrative system

• Strategic Objective 6.1.2: Procure goods and services within policies and guidelines

• Strategic Objective 6.1.3: Maintain good labour relations

• Strategic Objective 6.1.4: Training and development

• Strategic Objective 6.1.5: Ensure a healthy and safe work environment

Strategic Objectives: Administration Services

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• Strategic Objective 6.1.6: Maintain and improve the premises and security systems respectively

• Strategic Objective 6.1.7: Provide reliable information technology and communication systems

Strategic Objectives: Administration Services

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Annual Targets and Performance indicators for 2014: Administration Services

Performance Indicators and Annual Targets

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Annual Targets and Performance indicators for 2014: Administration Services (Cont.)

Performance Indicators and Annual Targets

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Annual Targets and Performance indicators for 2014: Administration Services (Cont.)

Performance Indicators and Annual Targets

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Annual Targets and Performance indicators for 2014: Administration Services (Cont.)

Performance Indicators and Annual Targets

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PURPOSE:Provide necessary capital resources to ensure effective andefficient delivery on Council’s mandates.

Programme 4: Capital Expenditure

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• Strategic Objective 7.1.1: Manage the property and assets of the Council with focus on increasing effectiveness, economy, transparency and integrity.

• Strategic Objective 7.1.2: Timeous procurement to be delivered.

Strategic Objectives: Capital Expenditure

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Annual Targets and Performance Indicators for 2014: Capital Expenditure

Performance Indicators and Annual Targets

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Overview of 2013/14 Budget & MTEF Estimates

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Expenditure

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• The core business of Dispute Resolution and Collective Bargaining Services has been allocated 66% of the total budget, up from 56%.

• 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.

Relating Expenditure Trends to Strategic-Oriented Goals

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• 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 R56.5 million in 2009/10 to R65, 8 million in 2012/13, are due to an increase/decrease in interest from investments and transfers from reserves.

Relating Expenditure Trends to Strategic-Oriented Goals (Cont.)

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• Expenditure increased from R46 million in 2009/10 to R58,4 million in 2012/13, at an average annual rate of 8,3 percent , mainly due to increase in the staff complement and depreciation in the 2012/13 financial year in anticipation of the increased capital expenditure of refurbishing the Council owned building.

• 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 2016/17 financial year, since the deficits are not sustainable in the long term.

Relating Expenditure Trends to Strategic-Oriented Goals (Cont.)

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ELRC Organogram 2013/14

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Mobilising Employee Services

PURPOSETo provide a framework in which recruitment and retentionstrategies as well as succession plans are developed andimplemented within the Council.

POLICY STATEMENT• The Council recognises that its most valuable asset is its

Human Resources.

• A great deal of time and money is invested in recruitment, training and development of employees and as such every effort should be made to retain those employees who have critical skills.

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Mobilising Employee Services (Cont.)

OBJECTIVES• To provide for special programs to support the

recruitment and retention strategy.

• To ensure staff retention through succession plans and training and development is implemented.

• To ensure that the natural attrition rate is reduced by employing various retention strategies.

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THANK YOU.

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