presentation to the portfolio committee on labour

Presentation

to the

Portfolio Committee on

Labour

10th February 2009

REVIEW OF 2007 / 2008 FINANCIAL YEAR

Portfolio Committee on Labour

10 – 02 - 2009

PRESENTATION OVERVIEW


10 – 02 - 2009

Tsoso Strategy( “ revive, re-awaken” )


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STRATEGIC GOALS


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STRATEGIC FOCUS AREAS


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TSOSO DASHBOARD

Measuring performance against Strategic Goals


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GOAL 1 - Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

1.1 In 2010, the external perception of the services delivered by the CCMA will have improved - from [baseline] PLUS x%.

Baseline plus x%

To determine baseline and % improvement

Baseline determined (68%)


10 – 02 - 2009

GOAL 1 - Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times

SCOREBOARD ITEM Target

2010

Target

2007/08

Achieved

2007/08

Status

1.2 By 2010, the CCMA will be recognised as a market leader in the field of Continuous Professional Development in the field of Labour Law. This will include defining standards for training, certifying providers of training and conducting training.

To be defined

Agree objectives with key

stakeholders

Engagement with Services SETA and other stakeholders; Have agreed process to determine objectives CCMA


10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

2.1 By 2010, 70% of all disputes will be settled at conciliation phase

70% 60% 61%

GOAL 2 - Ensure user-friendly, quality services that are delivered with speed


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SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

2.2 By 2010, there will be a material reduction in CCMA cases referred to the Labour Court (the target will be set once the 2007/08 baseline has been measured).

Baseline less x%

To determine baseline and % reduction

Baseline

determined (21%)



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

2.3 By 2010, all administrative rework will be 0% (relating to data integrity errors)

0% 10% 7%



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

2.4 By 2010, all process rework will be reduced by x% from the baseline set in 2007 (the target will be set once the 2007/08 baseline has been measured)

Baseline less x%

To determine baseline and % reduction

Baseline

determined

(11%)



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

2.5.1 By 2008, all conciliations will be conducted within the statutory time frame (30 days)

30 days 30 days 28 days

2.5.2 By 2010, the average

time to process an arbitration (from date of request to date closed) will be 60 days

60 days 74 days 42 days



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

2.6 By 2010, there will be no late awards (0%)

0% 0% Reduced from 6% to 3%



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

2.7.1 In 2010, 70% of all disputes of national interest where offers of assistance are made will be settled

70% 50% 53%

2.7.2 In 2010, 75% of all

offers of assistance in disputes of national interest will be accepted by parties

75% 50% 50%



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SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

3.1 By 2010, staff turnover will be halved from the 2006/07 baseline

Baseline * 0.5

To determine baseline

Baseline determined

(8% baseline

5% current year)

GOAL 3 – Maintain operational effectiveness while ensuring services are cost effective


10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

3.2 By 2010, key skills loss will not exceed 7%

7% 7% Management: 11%

Commissioners6%



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

3.3 By 2010, we will be able to meet case management demands with ‘normal’ resource levels. This means that the case management administration will be completed with a variance of no more than 5% of planned workload

5%

variance

5% 3%



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

3.4 By 2010, a budget model will be in place that will enable funding from government based on unit cost per projected number of services. Funding to be 100% of projected services to be rendered.

100% funding.

100% 97%



10 – 02 - 2009

SCOREBOARD ITEM

Target

2010

Target

2007/08

Achieved

2007/08

Status

3.5 By 2010, the ‘unit cost’ for delivery of compulsory services will have stabilised to ensure that there is not more than a 5% variance from budget allocation

5% variance

5% -14%

(improved operational efficiencies)



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KEY ACHIEVEMENTS AND NON-ACHIEVEMENTS


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Goal 1 - Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times

KEY ACHIEVEMENTS

• Implemented a structured approach to identify, offer assistance in and manage disputes of national interest.

• Sought to increase our Social Partners’ confidence in the CCMA and its processes by regularly reporting significant mediation successes in the media.

• Took a proactive approach to the interpretation of labour law through cases such as SIDUMO & ANOTHER V RUSTENBURG PLATINUM MINES LTD & OTHERS (2007) 28 ILJ2405 (CC) to ensure that the CCMA successfully re-affirmed the Commissioners discretional power to decide the fairness in dismissal disputes and successfully avoided substantial additional costs if the PROMOTION OF ADMINISTRATIVE JUSTICE ACT 3 of 2000 became applicable to CCMA processes.


10 – 02 - 2009


KEY ACHIEVEMENTS

• Finalised a process to determine the objectives the CCMA and other stakeholders regarding the delivery of certified skills programmes and qualifications in the Industrial Relations practice arena.

• A significant number of proactive, high impact outreach activities were conducted to raise awareness, to develop skills, to build partnerships. These were conducted with CCMA users and social partners across all South African regions.

• Greatly improved quality of CCMA education, training and development interventions for the CCMA staff (full-time and part-time) enhancing overall CCMA capacity to deliver a professional service.


10 – 02 - 2009


KEY NON-ACHIEVEMENTS

• Inadequate focus of dispute management / outreach interventions in vulnerable and high conflict sectors.

• Inadequate capacity to develop education and training materials, as well as inadequate capacity to develop assessment methods and tools.

• While recruitment processes have significantly improved the quality of Commissioners who have recently been recruited, there is a need to refine these processes further to ensure ongoing improved quality appointments of Commissioners.

• There needs to be a better emphasis placed on promoting the primary remedies of the Labour Relations Act.


10 – 02 - 2009

KEY ACHIEVEMENTS

• Significant improvement in operational efficiencies (response to queries and advisory services, execution of operational services). Key focus areas have been on settlement rate and late awards, and it has been a major success to bring the agreed targets within the range for both these measures.

• Improved focus on putting the customer at the centre of all operational processes, including the introduction of dedicated complaints facilities to enable speedy resolution of issues.

• Proactive approach to managing disputes of national interest led to resolution of a number of disputes in various sectors and jurisdictions.

Goal 3 - Ensure user-friendly, quality services that are delivered with speed


10 – 02 - 2009

KEY ACHIEVEMENTS

• A total of 61% of all disputes were settled through conciliation, the process of first instance. In excess of 98% of settlement agreements arising from these matters were complied with.

• Accessibility to CCMA services has been extended through the introduction of some additional venues in the outlying areas, as well as the implementation of services through the Department of Labour (provide information of cases to parties).



10 – 02 - 2009

KEY NON-ACHIEVEMENTS

• Despite a 50% improvement on last year, resulting from better management of awards rendered, the statutory target of 0% late awards for the year was not realised.

• Failed to ensure optimum turnaround time in the process of S143 applications (enforcement of settlement agreements and awards).



10 – 02 - 2009

DETAILED OPERATIONAL SCORECARDOPERATIONAL FOCUS

TARGET / OBJECTIVE 2005 / 06 2006 / 07

2007 / 08

Pre-Conciliations Heard Hear 10% or more of all jurisdictional referrals using the pre-conciliation process

15% 16% 13%

Pre-Conciliations Settled Settle 7% or more of all jurisdictional referrals using the pre-conciliation process

5% 7% 7%

Con/Arbs Heard Hear 50% or more of all jurisdictional referrals using the con/arb process

40% 38% 45%

Con/Arbs Finalised Finalise 80% or more of con/arbs heard 77% 82% 83%

Conciliations Heard and Closed

Close 90% or more of all conciliations heard (includes all ‘con’ type processes)

88% 92% 93%

Conciliations heard outside of 30 days

Statutory requirement to attempt to conduct all conciliation within 30 days

7% 0% 0%

Settlement rate Settle 70% or more cases across all processes

60% 63% 67%

Arbitrations finalised Finalise 90% or more of arbitrations heard 86% 89% 91%

Late Awards Statutory requirement to issue arbitration awards within 14 days

9% 6% 3%

Postponements / Adjournments

Allow for maximum of 5% postponement / adjournments of all processes heard

8% 8% 7%

Average turn around – Conciliation

Conciliation process to take place from ‘activation’ to ‘closed’ within a maximum of 30 days

45 30 28

Average turn around – Arbitration

Arbitration process to take place from arbitration referral date to ‘closed’ within a maximum of 74 days

79 48 42


10 – 02 - 2009

REGIONAL PERFORMANCE% of

EFFICIENCIES MET

CCMA OFFICE

> 70% Northern Cape

60 – 69% Free StateDurbanPietermaritzburgLimpopoMpumalangaWestern Cape

50 – 59% None

40 – 49% JohannesburgPretoriaNorth WestRichards Bay

30 – 39% Port ElizabethEast London


10 – 02 - 2009

REVIEW OF 2007/08 ANNUAL FINANCIAL STATEMENTSHIGHLIGHTS

Grant Income from the DoL increased 11% from a base of R234 million

Increase in funding used to:fund the increase in the case load of the CCMAaddress accessibility issuesacquire much needed Fixed Assets


10 – 02 - 2009

HIGHLIGHTS

Administrative Expenses increased 3% year on year below reported average inflation for the same period (8%)

Sub-inflation increase in Administrative expenses attributable to improved cost control in the CCMA

Operating expenses increased 8% year on year in line with reported average inflation for the same period (8%)

REVIEW OF 2007/08 ANNUAL FINANCIAL STATEMENTS


10 – 02 - 2009

HIGHLIGHTS

Staff costs and benefits increased 19% year on year

Increase in staff costs attributable to revision of the remuneration policy increase of 13% in permanent staff numbers from 400 to 452

Increase in staff complement is in part to address issues of accessibility and operational requirements.



10 – 02 - 2009

FINANCIAL PERFORMANCE2005 2006 2007 2008

Actual Actual Actual ActualR'000 R'000 R'000 R'000

Grant Income 176,655 208,780 234,582 260,263

Operating expenditure 181,648 210,444 239,482 268,522

Surplus for the year (2,874) 866 409 1,738

Interest Received 1,764 1,810 4,592 9,097

Investments and Cash 25,612 38,089 58,318 64,689

Subsidies to the Bargaining Councils 2,427 2,712 3,773 2,710

Average cost per case referred 1,417 1,682 1,938 2,020

Average cost per case settled 5,449 5,685 5,557 5,469 Staff costs and benefits as % of grant income 37% 41% 41% 44% Case disbursements costs as % of grant income 30% 33% 32% 30%

Total costs as % of grant income 103% 101% 102% 103%

Current ratio 1.01 0.92 0.98 1.41

COMPARATIVE FINANCIAL REVIEW


10 – 02 - 2009

Disclosures to the Annual Financial Statements for year ending 31 March 2008:

Note 23, the entity could be held liable by the South African Revenue Services (SARS) for taxation as per the statutory taxation rate applicable to individuals and possible interest and penalties thereon. The entity is actively engaging with SARS to determine an outcome on this matter and the amount of the obligation cannot be measured with sufficient reliability

Note 23, the CCMA is a defendant in a law suit. The CCMA is opposing the claim and the outcome of the case cannot presently be determined. No provision was made in the financial statements for any liability that might result however, a contingent liability of R3.5 million was disclosed in the notes to the financial statements.



10 – 02 - 2009

Thank you!

Revolutionising Workplace Relations

presentation to the portfolio committee on labour

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