Education Labour Relations Council...Education Labour Relations Council | 2012/13 Annual Report 7 3....

Education Labour Relations CouncilAnnual Report

2012/13

1Education Labour Relations Council | 2012/13 Annual Report

CONTENTSPART A: GENERAL INFORMATION

1. ELRC GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2. LIST OF ABBREVIATIONS/ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3. STRATEGIC OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.1 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.3 Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.4 Strategic outcome orientated goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4. LEGISLATIVE AND OTHER MANDATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

5. ORGANISATIONAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

6. MESSAGE BY THE MINISTER OF BASIC EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

7. MESSAGE BY THE DIRECTOR-GENERAL OF BASIC EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

8. FOREWORD BY THE CHAIRPERSON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

9. ACCOUNTING OFFICER’S OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

PART B: PERFORMANCE INFORMATION

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3. OVERVIEW OF ELRC’S PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.1. Service Delivery Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.2 Organisational Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3.3 Key policy developments and legislative changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3.4 Strategic Outcome Oriented Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

4. PERFORMANCE INFORMATION BY PROGRAMME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4.1. PROGRAMME 1: DISPUTE MANAGEMENT SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4.2. PROGRAMME 2: COLLECTIVE BARGAINING SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

4.3. PROGRAMME 3: EXECUTIVE SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

4.4. PROGRAMME 4: CORPORATE SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

4.5. PROGRAMME 5: CAPITAL EXPENDITURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

5. SUMMARY OF FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

5.1. Revenue Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

5.2. Programme Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

5.3. Capital investment, maintenance and asset management plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

2 Education Labour Relations Council | 2012/13 Annual Report

PART C: GOVERNANCE

1. INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

2. PORTFOLIO COMMITTEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

3. EXECUTIVE AUTHORITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

4. THE ACCOUNTING AUTHORITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

5. RISK MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

6. INTERNAL CONTROL UNIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

7. INTERNAL AUDIT AND AUDIT COMMITTEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

8. COMPLIANCE WITH LAWS AND REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

9. FRAUD AND CORRUPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

10. MINIMISING CONFLICT OF INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

11. CODE OF CONDUCT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

12. HEALTH SAFETY AND ENVIRONMENTAL ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

13. COMPANY /BOARD SECRETARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

14. SOCIAL RESPONSIBILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

15. AUDIT COMMITTEE REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

PART D: HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

2. HUMAN RESOURCE OVERSIGHT STATISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

PART E: FINANCIAL INFORMATION

1. STATEMENT OF RESPONSIBILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

2. REPORT OF THE ACCOUNTING OFFICER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

3. REPORT OF THE EXTERNAL AUDITOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

4. ANNUAL FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

PART AGENERAL INFORMATION


1. ELRC GENERAL INFORMATION REGISTERED NAME: Education Labour Relations CouncilREGISTRATION NUMBER: LR2/6/6/110PHYSICAL ADDRESS: 261 West Avenue Centurion 0046POSTAL ADDRESS: Private Bag X126 Centurion 0046TELEPHONE NUMBER/S: +27 12 663 7446FAX NUMBER: +27 12 663 9604EMAIL ADDRESS: [email protected] ADDRESS: www.elrc.org.zaEXTERNAL AUDITORS: Auditor-General BANKERS: Nedbank COMPANY/ BOARD SECRETARY: Not Applicable


2. LIST OF ABBREVIATIONS/ACRONYMSAET Adult Education and Training

AGSA Auditor General of South Africa

ANA Annual National Assessment

APP Annual Performance Plan

BCEA Basic Conditions of Employment Act

CAPS Curriculum and Assessment Policy Statements

CCMA Commission for Conciliation, Mediation and Arbitration

CFO Chief Financial Offi cer

CHE Council on Higher Education

CTU-ATU Combined Trade Union – Autonomous Trade Union

DBE Department of Basic Education

DoH Department of Health

DPS Dispute Prevention Strategy

DRPs Dispute Resolution Practitioners

DSD Department of Social Development

ECD Early Childhood Development

ECDoE Eastern Cape Department of Education

ETDP-SETA Education Training and Development Practices Sector Education and Training Authority

ESSP Education School Support Programme

EXCO Executive Committee

FPP Fraud Prevention Plan

FSDoE Free State Department of Education

GDE Gauteng Department of Education

GEPF Government Employees Pension Fund

GRAP Generally Recognised Accounting Practice

GS General Secretary

HEDCOM Heads of Education Departments Committee

KZNDoE KwaZulu-Natal Department of Education

LDoE Limpopo Department of Education

LSE Learner Support Education

LSEN Learners with Specialised Educational Needs

LTSM Learner Teacher Support Material

MEC Member of Executive Council

MoU Memorandum of Understanding

MDoE Mpumalanga Department of Education

MTEF Medium Term Expenditure Framework

NAPTOSA National Professional Teachers Organisation of South Africa


NATU National Teachers Union

NCDoE Northern Cape Department of Education

NCS National Curriculum Statement

NPDE National Professional Diploma in Education

NQF National Qualifi cations Framework

NWDoE North West Department of Education

OSD Occupation Specifi c Dispensation

PED Provincial Education Department

PELRC Provincial Education Labour Relations Council

PEU Professional Educators Union

PFMA Public Finance Management Act

PILIR Policy on Incapacity Leave and Ill-Health Retirement

PMDS Performance Management Development System

PPN Post Provisioning Norms

PSA Public Servants Association

PSCBC Public Service Coordinating Bargaining Council

QLTC Quality Learning and Teaching Campaign

IQMS Intergrated Quality Management System

RBP Relationship Building Process

RPL Recognition of Prior Learning

SACE South African Council for Educators

SACPO South African College Principals’ Organisation

SADTU South African Democratic Teachers Union

SAOU Suid-Afrikaanse Onderwysersunie

SARS South African Revenue Service

SBA School Based Assessment

SCM Supply Chain Management

SIP School Improvement Plan

SITA State Information Technology Agency

SOMAFCO Solomon Mahlangu Freedom College

TPA Teacher Performance Appraisal

TR Treasury Regulations

TSUD Teacher Supply, Utilisation and Development

ULP Unfair Labour Practice

UNISA University of South Africa

VSP Voluntary Severance Package

WCDoE Western Cape Department of Education

WSE Whole School Evaluation

WSP Workplace Skills Plan


3. STRATEGIC OVERVIEW

3.1 Vision

To improve the quality of teaching and learning through labour peace.

3.2 Mission

Quality services for excellence in teaching.

3.3 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;

• Independence: The right to making informed decisions independently that minimise or avoid confl ict 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;

• Effi ciency: Delivery of quality services economically.

3.4 Strategic outcome orientated goals

Goal 1: Research and monitoring and evaluation activities provide an evidence base for improved policies and policy implementation in basic education.

Goal 2: Equal importance is attached to proactive dispute prevention and dispute resolution.

Goal 3: Collective bargaining processes maximise the scope of the parties’ shared interest.

Goal 4: Provide appropriate support and training for all involved in dispute resolution and collective bargaining.

Goal 5: Sound communication strategies, special initiatives and campaigns support and complement the core activities of the Council.


4. LEGISLATIVE AND OTHER MANDATES

APPLICABLE LEGISLATION

The ELRC is listed as a Schedule 3A public entity in terms of the Public Finance Management Act (PFMA).

Applicable Legislation

• Labour Relations Act (LRA) 66 of 1995

• Public Finance Management Act 1 of 1999

• Employment of Educators Act 76 of 1998

• Further Education and Training Colleges Amendment Act 3 of 2012

Other Mandates:

• Service Delivery Agreement of the Minister of Basic Education

• Action Plan to 2014: Towards the realisation of schooling 2025


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6. MESSAGE BY THE MINISTER OF BASIC EDUCATIONThis Annual Report of the Education Labour Relations Council (ELRC) is an important record of achievements during the 2012/13 fi nancial year. I commend this report to Parliament and all those with an interest in education.

The Education Labour Relations Council plays an extremely important role in South Africa’s often-fraught labour relations environment in education. It has for many years been a model internationally. It has set the standard for democratic approaches to labour relations through its emphasis on institutionalising negotiated solutions. It is critical that the ELRC retains this reputation. It will only be achieved through the performance of Parties to Council and the ELRC staff and the careful and meticulous attention they

pay to the work of the Council. The Council’s commitment to the department’s resolve to uplift the teaching profession and focus on improvement in teaching and learning in public schools, was evidenced by its conclusion of Collective Agreement 1 of 2012: Occupation Specifi c Dispensation (OSD) For Education Therapists, Counsellors And Psychologists Employed In Public Education. This agreement introduces an occupation specifi c remuneration and career progression for these educators. The Council also monitored the consultation process on the creation and distribution of educator posts in all nine provinces, and this is to be commended.

The Council’s fi nalisation of the amendments to Personnel Administrative Measures (PAM) supports the DBE’s process of revising the terms and conditions of employment of educators and implicitly reinstates confi dence in the teaching profession.

We commend the Council for its positive contribution to our collective goal to attain quality learning and teaching in public schools, amidst the many challenges that we currently face in education. We urge the Council to strive for ever-better performance in the maintenance of its reputation and role and achievement of its targets.

On behalf of the Ministry of Basic Education, I extend a warm word of gratitude for all the Council’s eff orts and wish the ELRC well in all future endeavours.

Mrs A Motshekga, MPMinister of Basic Education


7. MESSAGE BY THE DIRECTOR-GENERAL OF

BASIC EDUCATIONI am pleased to introduce the Education Labour Relations Council’s Annual Report for the 2012/13 reporting period. The Department of Basic Education is pleased to be party to the Council, and welcomes the achievements of the Council during the period under review.

The Council continues to show its commitment to the children of our country, by protecting their fundamental rights, as enshrined in our Constitution. The Council’s plan to increase its panel of Conciliators, Arbitrators and Interpreters in the 2013/14 fi nancial year in Limpopo, Mpumalanga, North

West, Northern Cape and Free State, is a testament of its commitment to the achievement of quality education in South Africa.

We commend the Council for its concerted eff orts to eliminate its case backlog, and encourage it to continue to pursue dialogue as the best way to ensure stability within the public education sector.

I would like to thank the General Secretary of the ELRC and the staff of the Council for their continued dedication to the realisation of quality public education.

Mr B SoobrayanDirector-General of Basic Education


8. FOREWORD BY THE CHAIRPERSONIt is with great pleasure that on behalf of the Executive Committee (EXCO) I present the Education Labour Relations Council’s Annual Report for the fi nancial year 1 April 2012 to 31 March 2013, which demonstrates our commitment to quality education in the public education sector.

The year under review was typifi ed by challenges to achieve on all the predetermined objectives of the Council for the 2012/13 fi nancial period. Although there is slight improvement in collective bargaining, I have observed that the performance of Council in this regard is not at the level it should be, and this could be attributed to the lack of commitment from parties. I therefore wish to implore the parties to Council to restore collective bargaining and the dignity of Council by ensuring that there is commitment

from all, so as to achieve the ELRC’s broad mandate of promoting and maintaining labour peace within public education.

The projected outcome of the Lekgotla recommendations, which will be realized in the 2013/14 fi nancial year, includes improved performance of provincial chambers, the enforcement of correct dispute resolution procedures, the establishment of a Dispute Prevention Strategy, appropriate guidelines for Unfair Labour Practice disputes and amendments to the Council’s constitution to take account of legislative changes. I am therefore confi dent that the new fi nancial period will mark an epoch of positive change that supports our core mandate to ensure labour peace within public education. The concerted eff orts of EXCO to identify areas of non- performance and implement a management plan to address these areas is evidence of dedication to this process.

I extend my profound gratitude to the ELRC management and staff for the strides made during the 2012/13 reporting period to fulfi ll the Council’s mandate and for their fi rm commitment to improve performance in the next fi nancial year.

Ms D SekabateELRC Chairperson


9. ACCOUNTING OFFICER’S OVERVIEWIt gives me great pleasure to present the Annual Report and achievements of the Education Labour Relations Council (ELRC) for the fi nancial year 1 April 2012 to 31 March 2013.

The Council’s performance in terms of its core services was satisfactory during the period under review. However, the Council has identifi ed strategies to overcome areas of underperformance in Dispute Management Services and Collective Bargaining at national and provincial level. The EXCO Lekgotla that was convened during the period under review addressed the Council’s underperformance. The resolutions taken at the Lekgotla will inform the strategic direction of the Council for the next three years and seeks to improve the overall performance of the Council.

In terms of Dispute Management Services, the Council remained committed to its distinctive focus on special disputes involving the child as victim or witness. Only 17 special disputes were referred during the period under review, as compared to 30 in the previous year. A total of 29 special disputes were fi nalised during the period under review. The Council will continue to implement strategies to preserve the rights of the child in the 2013/14 fi nancial year. Appropriate venues will be arranged for special hearings where a child is a victim or witness. Intermediaries in each province will also be appointed to protect the rights of the child.

The Council continued to train and develop Dispute Resolution Practitioners and Panellists in the year under review, to improve their performance and the quality of arbitration awards for Panellists.

The performance for Collective Bargaining improved considerably, compared to the 2011/12 fi nancial year, where the predetermined targets for bargaining were not met and the Executive Committee expressed concern over the slow process of fi nalising bargaining matters.

A signifi cant achievement for Collective Bargaining Services for the 2012/13 fi nancial year was the consolidation of Personnel Administrative Measures (PAM), which includes all collective agreements from 2003 to 2013.

The Council concluded Collective Agreement 1 of 2012: Occupation Specifi c Dispensation (OSD) For Education Therapists, Counsellors

and Psychologists Employed in Public Education; Collective Agreement 1 of 2013: Vote Weights of Trade Unions that are parties to

Council and Collective Agreement No. 1 of 2012 of Free State: Guidelines for Advertising and Filling of Educator Posts at Institutions.

The Council’s planned targets for 2013/14 are to successfully conclude eight (8) of the agreed 11 matters of mutual interest in public education and to conduct research on evidence based welfare and national development issues. The Management Plan that was adopted during the period under review will ensure that the identifi ed issues of mutual interest are achieved in the 2013/14 fi nancial year.

The Council also focused on improving the performance of its provincial chambers through the strategic workshops convened in all nine provinces.

In a bid to minimize disputes at provincial level, the Council is establishing dispute prevention committees in all nine provincial chambers with the aim to analyse statistics on promotion and appointment disputes.


No evidence based reasearch was conducted during the period under review, as no issues of mutual interest were identifi ed. The Council intends to place greater emphasis on research in the 2013/14 fi nancial year, in line with Priority Outcome 1: Improved

quality of basic education. The specifi c areas identifi ed are conditions of service for Early Childhood and Development (ECD) Practitioners and Recognition of Prior Learning (RPL).

As the Accounting Offi cer of the ELRC, I am satisfi ed with the output and delivery of the core business services of the Council. This report demonstrates the commitment of the Council to the principles of transparency, accountability and service delivery.

Ms NO FocaAccounting Offi cer

PART BPERFORMANCE INFORMATION


1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE

INFORMATION

Statement of Responsibility for Performance Information for the year ended 31 March 2013

In my opinion, the performance information fairly refl ects the actual achievements against planned objectives, indictors and targets as per the strategic and annual performance plan of the ELRC for the fi nancial year ended 31 March 2013.

The ELRC performance information for the year ended 31 March 2013 have been examined by the external auditors and their report is presented on page 128.

The performance information of the ELRC set out on page 22 to page 104 was approved by the Executive Committee of the Council.


Date: 08 August 2013


2. AUDITOR’S REPORT: PREDETERMINED OBJECTIVESThe Auditor-General of South Africa currently performs the necessary audit procedures on the performance information to provide

reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is

included in the report to management, with material fi ndings being reported under the Predetermined Objectives heading in the Report

on other legal and regulatory requirements section of the auditor’s report.

3. OVERVIEW OF ELRC’S PERFORMANCE

3.1 Service Delivery Environment

The ELRC is a bargaining council composed of the Department of Basic Education as the Employer and the admitted Teacher Unions.

It operates in the public education labour relations environment and over the years has managed to contribute towards labour peace in public education. In order to improve the delivery of services over the next three years, the Council has taken steps to improve the effi ciencies in dealing with matters of mutual interest by revisiting its mandate and provide strategic direction.

Identifi ed factors that negatively aff ect the performance of the Council will be addressed with the objective of improving areas considered important in contributing to Outcome 1: “Improved quality of basic education”.

The Executive Committee held a Lekgotla in December 2012 and resolved to implement an action plan agreed upon by parties to Council. It has been established that both core functions need to be addressed in order to improve the performance of Collective Bargaining Services and Dispute Resolution effi ciencies over the Medium Term Expenditure Framework (MTEF) period.

The following key areas will be addressed in the 2013-2014 fi nancial period:

1.1 Dispute Management Services

1.1.1. Dispute Prevention and Facilitation

Dispute Prevention

The objective of Council in dispute prevention is to employ a proactive approach and intervene to resolve grievances, before they develop into disputes. Council provides training for panellists and Parties. Another mechanism put in place by the Council to prevent disputes is the establishment of Dispute Prevention Committees in all provincial chambers.

In engaging in dispute prevention activities, Council will always guard against taking the position of any of the parties involved in the grievance. This ensures that the Council’s neutrality and objectivity are maintained at all times.

The development of dispute resolution practitioners will continue to be an area of greater focus in the 2013/14 fi nancial year to improve on the effi ciencies relating to the prevention of disputes.

Facilitation and Intervention

Council recognises the impact of factors in the communities that impacts labour peace in education and necessitates intervention. These factors include displaced educators, violence and temporary educators.

Over the past few years Council provided intervention and facilitation, in the main in two provinces, namely KwaZulu-Natal and the Eastern Cape on displaced educators and temporary educators.

Council has set aside a budget for intervention and facilitation in the 2013/14 fi nancial year.


1.1.2. Dispute Resolution

In the rendering of Dispute Resolution services, greater focus will be placed on improving the effi ciencies relating to the resolution of disputes relating to Appointments and Promotions.

Proactive measures in place to deal with disputes:

• The Council is establishing dispute prevention committees in all nine provincial chambers with the aim to analyse statistics on the above disputes in a bid to address these issues.

• The Council is in the process of amending its constitution.

1.1.2.1. Ordinary Disputes of rights (Appointments and Promotions) Role of School Governing Bodies

The ELRC is in the process of amending its Constitution and will be amending clause 14.3. For this purpose the Legal Sub Committee has been tasked to prepare these amendments.

1.1.2.2. Special disputes involving the child as a victim

Section 28(2) of the Constitution of the Republic of South Africa, Act No. 108 of 1996, enshrines the principles of the child’s “best interest” and “paramountcy”. This means that the rights of the child should be paramount in all matters aff ecting the child.

The ELRC deals with unfair dismissals as provided for in section 186 of the LRA of 1995 to determine the substantive and procedural fairness of such dismissals. Amongst these unfair dismissal disputes are special disputes that involve children. In order to balance the rights of the child and that of the educator, the Council has to take into account Section 28 of the Constitution. In doing so, Council has to appoint an intermediary, especially in matters involving sexual abuse. This is one measure to ensure that there is an even balance between the rights of the educator and the rights of the child.

The Council has adopted the following strategies to ensure that the rights of the child are protected:

• The Council has established partnerships with other organisations to further support its endeavour to protect the rights of the child. The Council has collaborated with Moompi, which is a national child protection programme. The programme is off ered in schools as part of Life Orientation and the following areas are addressed: personal safety, hygiene and HIV/AIDS. Moompi will assist the ELRC with the appointment of qualifi ed intermediaries in all provinces.

• Moompi will also assist the ELRC with the creation of child-friendly venues in each of the nine provinces. These special venues are necessary to conduct cases where the child is a victim or witness.

• The Council also collaborated with SACE to assist with the implementation of the Educator Professional Assistance Facility Policy.

1.1.2.3. Enforcement of awards, rulings, orders and conciliation agreements

The function of enforcing awards, rulings, orders and conciliation agreements has been located within the realm of the labour court. The Council will invoke the dispute prevention mechanisms to encourage parties to comply with awards, rulings, orders and settlement agreements. This will protect the Council’s mandate of ensuring that education in the public sector is not disrupted.


1.2 Collective Bargaining Services

1.2.1 Reduction in the pool of temporary educators

In order to address the inconsistencies in dealing with the permanent appointment of temporary educators, there is a need to conclude a national agreement on the permanent appointment of temporary educators.

Inconsistencies in this area results in impasse between the employer and employee parties. To address this, a national collective agreement that deals with the conversion of temporary educators to permanent status, has been added to the Council’s agenda and will be addressed in the 2013/14 fi nancial period.

1.2.2 Incentives for Educators

The purpose of the policy on incentives for educators is to provide for the payment of incentives to qualifi ed educators who qualify for incentives by meeting prescribed criteria. This policy is implemented by the Heads of Provincial Education Departments.

Part of the Council’s mandate is to monitor the implementation of collective agreements and policies at provincial level. Reports received from the ELRC provincial chambers indicate inconsistencies and challenges in relation to the implementation of the policy. Parties to Council are considering, as part of its target for the 2013/14 fi nancial year, to conclude a collective agreement on the same issue.

1.2.3. Conditions of Service for ECD Practitioners/Educators

The Council recognises that the ECD sector is challenged by a lack of qualifi ed teachers and provision of quality learning and teaching support materials. According to the DBE’s Annual Performance Plan for 2013/14, areas of action in 2013 will include the quality of provision especially in terms of practitioner and teacher skills for Foundation Phase and Pre-Grade R teachers, provision of Grade R workbooks and improved monitoring of reading in the Foundation Phase. These issues are particularly critical and have been highlighted as a priority in the Action Plan to 2014, the National Development Plan and the State of the Nation Address.

The Council further recognises that the provision of ECD programmes in South Africa is an inter-sectoral responsibility, shared among the Department of Social Development (DSD), the Department of Health (DoH) and the DBE, with the Ministry of Women, Children and People with Disabilities playing a monitoring role.

The ELRC’s contribution to ECD will take the form of a Plan on the institutionalization of the ECD sector; in as far as conditions of service are concerned.

1.2.4. Research

The Council recognises the importance of research into teacher issues and intends to place greater emphasis on this important area in line with priority Outcome 1. Specifi c areas that are identifi ed for research for the year 2013/14 are, “conditions of service for ECD practitioners” and “RPL”.


3.2 Organisational Environment

The structures and processes of the Education Labour Relations Council are well established and mature and have remained stable despite recent changes, which the Council has undergone. There are changes that will be introduced in the 2013/14 year relating to the establishment of a Supply Chain Management (SCM) unit and improving the capacity of offi cials in the unit by providing the necessary training.

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 eff ort is made to retain these employees who have critical skills.

In order to achieve its objectives, the ELRC must cultivate existing talent and grow new talent rather than rely on recruitment alone. A Career and Succession Planning Strategy will be employed to ensure that existing skills are developed and new talent is cultivated.

The 2012/2013 Annual Report indicates staff turnover of 16% and that there were 15 vacant positions out of 58 in the Council. Out of the 15 vacant positions, seven (7) were as a result of resignations during the fi nancial year and to date fi ve (5) of these positions have been fi lled. The other eight (8) are funded posts that were never fi lled as a result of the decision that was taken by EXCO to have these positions properly evaluated and graded before they were fi lled, in an eff ort to ensure that the ELRC is better positioned to attract the right calibre of applicants. As such a service provider will be appointed in the 2013/14 fi nancial year to conduct a work-study that will entail job evaluation and grading as well as the revision of the current organogram of the Council. It is envisaged that this exercise will be completed by July 2013 for the Executive Committee to consider recommendations from the work-study.

Going forward, the ELRC has undertaken to adopt a recruitment and retention strategy to provide a framework that will ensure that the Council is properly resourced with human capital, which will contribute to the achievement of its strategic objectives.

With the promulgation of the FETC amendment Act in March 2012, the future of the FETC bargaining unit looks uncertain, but since no clear guidelines have been issued by the Department of Higher Education and Training (DHET) in relation to the location of this sector, the budget has continued to accommodate the operations of the FETC sector.

The funding model of the Council poses a challenge in that income is generated through contributions by the Employer and deductions from the educators. Although the rate of contributions is determined through negotiations by the parties to Council, there is no provision for annual increases. This results in a static and fi xed fl ow of secured income in an environment of increasing costs due to infl ation. A proposal to address this challenge will be tabled to parties to Council for consideration.

The Council has managed, through prudent fi nancial management, to allocate and utilise these limited resources in the achievement of its objectives.

3.3 Key policy developments and legislative changes

The Higher Education and Training Laws Amendment Act 25 of 2010, in the main has implications for the ELRC Constitution, as it gives the Minister of Higher Education and Training the powers to determine salaries and conditions of service for educators teaching at Public Education and Training Centres. This was previously a function of the Minister for Education (Executive Authority of the ELRC), but after proclamation 44 was issued by the President in 2009, the Adult Education and Training (AET) Sector became a function of the Minister of Higher Education and Training.

This necessitated the request from the Minister of Higher Education and Training to the Council to amend its constitution to provide for two bargaining units; one for Basic Education and one for Higher Education (FET and Adult Education and Training).

The FETC Amendment Act 3 of 2012, makes provision for the lecturers who were transferred in terms of the FETC ACT 16 of 2006 from the State to the Colleges, to be migrated to the employ of the State in terms of the Public Service Act 103 of 1994, which subsequently implies that their conditions of service will be dealt with in another Bargaining Council (GPSSBC), whilst those


previously employed by the College prior the enactment of the FETC Act 16 of 2006, remains in the College employ and their Bargaining Council continues to be the ELRC.

3.4 Strategic Outcome Oriented Goals

Strategic Outcome Oriented Goals Progress

Goal 1:

Research and monitoring and evaluation activities provide an evidence base for improved policies and policy implementation in basic education.

No achievement for Goal 1 as the item on ‘Research’ was removed from the Council’s agenda as no new research factors were identifi ed for the period under review.

Goal 2:

Equal importance is attached to proactive dispute prevention and dispute resolution.

This objective was achieved in the period under review through the training that the Council provided to Dispute Practitioners to enable them to eff ectively deal with disputes at the initial disciplinary phase.

Goal 3:

Collective bargaining processes maximise the scope of the parties’ shared interest.

A Management Plan was adopted with set timeframes. An EXCO Lekgotla was also convened in 2012 to address the Council’s underperformance. The recommendations of the Lekgotla will be implemented in the 2013/14 fi nancial year.

Goal 4:

Provide appropriate support and training for all involved in dispute resolution and collective bargaining.

Workshops were conducted during the 2012/13 reporting period to improve the performance of Panellists. The target for training for the 2012/13 period was 70 and the Council trained 72 panellists and commissioners.

Goal 5:

Sound communication strategies, special initiatives and campaigns support and complement the core activities of the Council.

A survey study was conducted in the 2012/13 fi nancial year to measure the eff ectiveness of the Council’s communication strategy in reaching its target audience and marketing its core services. This study identifi ed weaknesses in the Council’s current communication strategies and a follow-up study will be conducted in the 2013/14 fi nancial period to address these areas.


4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 Programme 1: Dispute Management Services

Purpose

The purpose of Programme 1 is to manage disputes proactively. This includes prevention of disputes by, for example, defusing confl icts that can disrupt teaching and learning; it also includes dispute resolution. Professional development and training is included in Programme 1 to ensure that Dispute Resolution Practitioners (DRPs) and Panellists operate eff ectively.

Sub-programme

• Professional Development and Training

Strategic Objectives

• Provision of dispute resolution services

• Resolution of special disputes

• Prevention of disputes

• Training and development services

• Professional development and training

Strategic objectives

Dispute Management Services


Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation from planned

target to Actual

Achievement for 2012/2013

Comment on deviations

Provision of dispute resolution services

Conciliation fi nalised within 30 days from registration of dispute

90% 100% 97% 3% The expectation is that 100% of all jurisdictional disputes received must be conciliated within 30 days of receipt. The target was not met in this instance as a negative variance of 3% was experienced. This was due to the ELRC only being able to schedule 88% of its cases in the fi rst quarter. This is due to the school and public holidays, which falls within this period, that impacted on the availability of parties.




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013


target to Actual



Resolution of ordinary arbitrations within 180 days from when conciliation failed

60% of arbitrations

resolved

70% of arbitrations to

be resolved

51% 19% There was a deviation of 19% from the acceptable targeted effi ciency. This is due to the large number of adjournments and postponements due to the matters being of a complex nature. As a result matters remain part heard and can only be rescheduled depending on the availability of the parties and the panellist.

Resolution of special disputes involving children

Resolution of promotion arbitrations within 120 days from when conciliation failed

60% 70% of arbitrations to

be resolved

51% 19% This is due to matters remaining part heard and not being fi nalised in a single sitting, due to the complexity of the cases and the number of witnesses under subpoena. Where matters are part heard, it requires a co-ordinated eff ort between the parties to the dispute as well as the panellist in order to fi nd a suitable date to continue the hearing. Due to the non-availability of parties or the panellist, the time period often extends beyond the 120 days.

Resolution of arbitrations where a child is a victim within 120 days from when conciliation failed

Not Applicable 70% of arbitrations to

be resolved

51% 19% As with the other arbitrations, a negative variance of 19% has also been realised with this output. This is due to matters remaining part heard and not being fi nalised in a single sitting, due to the complexity of the cases and the number of witnesses under subpoena. Where matters are part heard, it requires a co-ordinated eff ort between the parties to the dispute as well as the panellist in order to fi nd a suitable date to continue the hearing. Due to the non-availability of parties or the panellist, the time period often extends beyond the 120 days.




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013


target to Actual



Prevention of disputes

60% of grievances are fi nalised per province to prevent possible disputes

Capacity to prevent disputes

(grievances) is enhanced in collaboration

with PEDs and unions

60% of grievances

are fi nalised per province

to prevent possible disputes

20% 40% Only three (3) Provincial Departments of Education (Free State, North West and Mpumalanga) submitted their reports on fi nalised grievances.

Training and development

Training and development to 240 DRPs and Commissioners

Dispute Resolution

Practitioners in eight (8) provinces trained on

dispute management and case law

Training and development is provided to 240 Dispute Resolution

Practitioners and Panellists

239 1 Target was not met due to the non-availability of panelists as training and development workshops are conducted on weekends.

Professional Development and Training

Relevant professional development and training is provided to 70 DRPs in all Provinces

The ELRC completed the Practical Labour Law course for the unions and started another

Labour Law course for the

employer

Relevant professional

development and training

is provided to 70 DRP’s in all

Provinces

72 2 Potential / prospective panellists were accommodated at no extra cost.


Key performance indicators, planned targets and actual achievements


Performance Indicator

Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013


target to Actual



Provision of dispute resolution services

Conciliation fi nalised within 30 days

88% 100% 97% 3% The expectation is that 100% of all jurisdictional disputes received must be conciliated within 30 days of receipt. The target was not met in this instance as a negative variance of 3% was experienced. This was due to the ELRC only being able to schedule 88% of its cases in the fi rst quarter. This is due to the school and public holidays, which falls within this period, that impacted on the availability of parties.

Resolution of ordinary arbitrations within 180 days

60% of arbitrations

resolved

70% of arbitrations to

be resolved

51% 19% There was a deviation of 19% from the acceptable targeted effi ciency. This deviation is excessive in this instance. This is due to the large number of adjournments and postponements due to the matters being of a complex nature. As a result, matters remain part heard and can only be rescheduled depending on the availability of the parties and the panellist.




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013


target to Actual



Resolution of special disputes involving children

Resolution of promotion arbitrations within 120 days

Not Applicable 70% of arbitrations to

be resolved


Resolution of arbitrations where a child is a victim within 120 days

Not Applicable 65% of arbitrations are

resolved


Prevention of disputes

60% of grievances are fi nalised per province to prevent possible disputes.

Capacity to prevent disputes

(grievances) is enhanced in collaboration

with PEDs and unions

60% of grievances

are fi nalised per province

to prevent possible disputes

20% 40% Only three (3) Provincial Departments of Education (Free State, North West and Mpumalanga) submitted their reports on fi nalised grievances.




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013


target to Actual



Training and development

Training and development provided to 240 Dispute Resolution Practitioners and Commissioners

Training and development provided to

at least 240 of the Dispute Resolution

Practitioners and

Commissioners

Training and development provided to

at least 240 of the Dispute Resolution

Practitioners and

Commissioners

239 1 Target was not met due to the non-availability of panelists as training and development workshops are conducted on weekends.


Relevant professional development and training is provided to 70 DRPs in all Provinces

The ELRC completed the Practical Labour Law course for the unions and started another

Labour Law course for the

employer

Relevant professional

development and training

is provided to 70 DRPs in all

Provinces

72 2 Potential / prospective panellists were accommodated at no extra cost.

Overview of the Dispute Management Services Department’s performance for the 2012/13 fi nancial year

Disputes Referred by Financial Year

A total of 673 disputes were received by the Council for the 2012/2013 fi nancial year. This marked a reduction of 68 disputes, compared to the 2011/12 fi nancial year. The disputes referred to the ELRC over the past eight (8) years clearly refl ect that the number of disputes referred vary year on year. Thus, there is no steady projection in terms of the number of disputes that are received year on year. The nature of disputes referred to the Council during the period under review predominantly relate to Unfair Labour Practices relating to “Promotion and Appointments”. These type of disputes are dependent on the number of gazettes that are published per annum, advertising promotional and other posts within the sector and therefore would vary from year to year.

Disputes Referred by Jurisdiction

For the period under review, the ELRC received a total of 673 disputes. This amounted to 68 less disputes, compared to the 2011/12 fi nancial year. Of these, 395 (59%) were deemed to be “In Jurisdiction”, 192 (29%) were found to be “Out of Jurisdiction” and 86 (12%) had to be determined through condonation.


Disputes referred by Province

The Gauteng province referred the highest number of disputes, which is 20% of the total disputes referred. This was closely followed by KwaZulu-Natal with 19% and Western Cape with 15%. Combined, Gauteng, KwaZulu-Natal and Western Cape accounted for 54% of all disputes referred. The remaining 46% was spread amongst the remaining provinces, with Free State at 7%, Eastern Cape at 11%, North West at 8%, Limpopo at 10% and Northern Cape and Mpumalanga at 5% each. One (1) dispute was received which was considered to be a National dispute.

Compared to the previous fi nancial year, Western Cape and KwaZulu-Natal experienced a reduction in disputes referred at 73 (41%) and 37 (22%) respectively. This accounts for a signifi cant reduction in these provinces. Gauteng on the other hand experienced an increase of 45% in the number of disputes received. This increase can be attributed to the high rate of misconduct cases resulting in dismissals or sanction short of dismissal.

The following provinces: Northern Cape; Eastern Cape; Mpumalanga; Limpopo; Free State; and North West, remained fairly consistent with the number of disputes referred as compared to the previous fi nancial year.

Nature of disputes referred

Of the 673 disputes that were referred to the Council, 193 (29% ) related to Unfair Labour Practices (ULP) - Promotion and Appointments. Alleged Unfair Dismissals accounted for 253 (38%) of all disputes referred, 97 (15%) related to Other ULP’s, 70 (10%) to Interpretation of Collective Agreements and 42 (6%) concerned Basic Conditions of Employment Act (BCEA) and enforcements. Only 17 (3%) disputes received related to sexual off ences involving a learner, and one dispute of mutual interest.

In the period under review, Unfair Dismissal disputes accounted for the highest number of disputes referred. This can be attributed to the high number of misconduct cases, the non-renewal of fi xed-term contracts of educators and absenteeism. In previous fi nancial years Unfair Labour Practice disputes related to Promotion/Appointment were highest number of disputes referred. In the previous fi nancial year, ULP – Pomotion/Appointments accounted for almost 42% of the disputes referred. In the current fi nancial year, it only accounted for 29%, a decrease of 13%. Unfair dismissal disputes in the previous fi nancial year accounted for 13% of disputes referred. In the current fi nancial year there is a signifi cant increase of 25% in the number of Unfair Dismissal disputes received.


Condonation

A total of 86 applications for condonation were received. Of this 28 were granted, 49 were refused and nine (9) still remain, pending a decision and was carried over to the 2013/14 fi nancial year.

In Jurisdiction as per Nature of Dispute

Of the 673 disputes that were received by the Council, 395 (59%) were found to be jurisdictional. Of the 395 that were jurisdictional, 112 related to ULP – Promotion and Appointments, 133 to Alleged Unfair Dismissal, 63 to Other ULP’s, BCEA enforcements and Interpretation of Collective Agreements accounted for 25 and 44 disputes respectively. A total of 17 disputes involved a learner and one (1) dispute dispute of mutual interest was received.

Out of Jurisdiction as per Nature of Dispute

Provinces ULP Promo/

App

Other

ULP

Unfair Dismissal

Special Disputes

involving a learner

BCEA Interpretation Mutual Interest

Total

EC 9 5 5 0 2 2 0 23

GP 7 6 28 0 6 2 0 49

FS 2 4 1 0 0 2 0 9

LP 3 2 7 0 1 1 0 14

MP 0 3 0 0 0 0 0 3

NW 3 0 6 0 0 1 0 10

NC 7 0 4 0 0 0 0 11

WC 19 5 11 0 0 5 0 40

KZN 15 6 11 0 0 1 0 33

NAT 0 0 0 0 0 0 0 0

Total 65 31 73 0 9 14 0 192

Of the 192 disputes found to be out of jurisdiction, 73 related to Unfair Dismissal, 65 related to ULP-Promotion and Appointments, 31 were Other ULP’s, nine (9) were BCEA related and 14 related to Interpretation of Collective Agreements.

Events Conducted for the Financial Year

Provinces Conciliation/Pre Arbitration

Total PSESNumbers

Arbitration Total PSESNumbers

Total

KZN 104 103 221 164 325

GP 73 73 168 103 241

FS 33 33 70 58 103

EC 35 33 63 45 98

WC 58 58 87 73 145

NC 26 26 33 24 59

MP 28 28 44 39 72

NW 31 31 42 35 73

LP 60 42 76 67 136

NAT 2 1 1 1 3

Total 450 428 805 609 1255


A total of 1 255 events (days) were conducted for the 2012/13 fi nancial year. Of these 450 were conciliations and 805 related to arbitration events. The statistics reveal that the majority of conciliations were concluded in a single event. The arbitrations conducted for this period have an average of 1.3 events per arbitration. The implication is that the majority of arbitrations have had a single event, whilst 20-30% of arbitration cases have had more than one event. This is acceptable as some of the disputes are complex and would require more than a day to fi nalise through arbitration.

There was an increase in the number of arbitration events that were scheduled in the current fi nancial year, compared to the previous fi nancial year, although the number of disputes referred to the ELRC during the 2012/13 fi nancial year was less than the previous fi nancial year. This can be attributed to the fact that the ELRC dealt eff ectively with the arbitrations which were carried over from previous fi nancial years, in the 2012/13 fi nancial year.

Disputes by Outcomes

The ELRC fi nalised a total of 415 disputes during the 2012/13 fi nancial year. A total of 161 arbitration awards were rendered. A total of 69 disputes were settled at arbitration, whilst 32 were settled at conciliation. Withdrawn disputes almounted to a total of 81with 32 being withdrawn at conciliation and 49 withdrawn at arbitration. A total of 45 cases were dismissed, 23 at conciliation and 22 at arbitration. A total of 27 rulings were handed down during this period.

Outcome of Special Disputes

These disputes involved learners and were referred during the current fi nancial year. A total of 29 disputes were fi nalised. Three (3) were withdrawn, whilst 19 disputes had awards issued. Of the 19 awards issued six (6) were in favour of the applicant and 13 were in favour of the respondent.

Carried over cases per fi nancial years

A total of 184 cases are to be carried over to the next fi nancial year. Of these 163 are from the 2012/13 fi nancial year and 21 are from previous fi nancial years. The case carry over from previous fi nancial years has reduced signifi cantly. The case carry over for the current fi nancial year amounts to 24%. This is a signifi cant reduction as compared to the previous fi nancial year where the cases carried over stood at 38%.

Postponements and Adjournments

A total of 107 cases were postponed for the period under review and 169 adjournments took place. The 169 adjournments related to a total of 133 disputes. The implication was that of the 133 disputes, the majority of these disputes were adjourned more than once. The postponement rate amounted to 8.5% of events conducted, whilst the adjournment rate amounted to 13.5% of events conducted.


Labour Court Reviews

In the period under review, a total of 32 Arbitration Awards/Rulings were referred to the Labour Court on review in terms of Clause 71 of the ELRC Constitution or Section 145 of the Labour Relations Act of 1995 as amended, as per the graph below.

The Council received fi ve (5) Labour Court orders / judgements, namely:

• WC – The court referred the matter back to the Council as de novo (anew) using another Panellist. The matter was subsequently settled.

• GP – The court referred the matter back to the Council as de novo (anew).

• EC – The applicant’s review application of the ELRC award was dismissed and the Council’s ruling was upheld.

• KZN – The applicant’s review application was dismissed with costs and the Council’s arbitration ruling was upheld.

• FS – The applicant’s review application was dismissed and the Council’s award was upheld.

There were no Labour Court judgements rendered on ELRC cases taken on review for the 2012/13 fi nancial year. This could be attributed to the illegibility of arbitration records, as the court would then order the reconstruction of these records. The Labour Court also takes more than three (3) years to deliver judgements.

Strategy to overcome areas of under performance

The Council will continue to provide Practical Training to Dispute Resolution Practitioners on how to deal eff ectively and effi ciently with disputes in public education.

The Council plans to minimise frivolous requests for Postponements from parties in a bid to reduce the high number of adjournments in hearings. The Council will also encourage Panellists to award costs in terms of Clause 64.7 of the ELRC Constitution to parties who come to hearings uprepared and apply for frivolous requests for postponements as they are not adequately prepared for formal arbitration hearings.


In hearings where a child is a victim or a witness, the Council and parties will make sure that appropriate venues are booked for these special hearings, e.g. Magistrate Court, Children’s Court or Teddy Bear Clinic (Johannesburg). The Council will also ensure that Intermediaries are appointed to protect the Rights of a Child as stipulated in Section 28 of the Constitution, “The Right of the child is of paramount importance in all matters concerning the child”.

The Council plans to increase its Panel of Conciliators, Arbitrators and Interpreters in the 2013/14 fi nancial year in Limpopo, Mpumalanga, North West, Northern Cape and Free State.

Non-compliance of Panellists will be monitored in the next fi nancial year to ensure that they submit arbitration awards to the Council within 14 days of the conclusion of the arbitration proceedings in terms of Clause 25.8 of the ELRC Constitution.

Changes to planned targets

No changes were made to planned targets.

Linking performance with budgets

2012/13 2011/12

Programme Name

Budget Actual

Expenditure

(Over)/Under Expenditure

Budget Actual

Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


13 144 10 167 2 977 13 762 12 631 1 131

Total 13 144 10 167 2 977 13 762 12 631 1 131

DISPUTE MANAGEMENT SERVICES – HIGHER EDUCATION AND TRAINING (FET)

Cases referred

During the period under review, a total of 39 FETC disputes were referred to the ELRC. Of these, 21 were found to be jurisdictional, 16 were out of jurisdiction and two (2) had condonation application.

Referrals in jurisdiction by issue in dispute

The ELRC received a total of 39 disputes in the FET Sector. Of these eight (8) related to Promotion and Appointment, 13 related to Dismissals, ten (10) to Other ULP’s, seven (7) BCEA Enforcement disputes and one (1) related to Interpretation of Collective agreements.

ULP- Promotion/App

Other ULP Unfair Dismissal BCEA Interpretation /Application

Total

8 10 13 7 1 39

Events Conducted

During the period under review a total of 56 events were conducted as follows:

Conciliation Arbitration Total

20 36 56


Settlement Rate

The ELRC heard 56 disputes during the period under review and a 20% settlement rate was achieved.

Condonation:

A total of two (2) applications for condonation were received for the period under review. Of these one (1) was granted and the other remained pending.

Dispute Outcomes

Withdrawn Conc

Dismissed Conc

SettledConc

WithdrawnArb

DismissedArb

SettledArb

Award Rendered

Total

2 1 4 1 4 4 9 25

During the period under review a total of 25 cases were fi nalised. Nine disputes were fi nalised via arbitration (award rendered), eight (8) were settled four (4) at arbitration and four (4) at conciliation), fi ve (5) were dismissed and three (3) were withdrawn.

Postponements and adjournments

During the period under review one (1) request for postponement was received and granted. There were six (6) adjournments to matters which were convened for a hearing.

PROGRAMME 1.2: PROFESSIONAL DEVELOPMENT AND TRAINING

Purpose

The purpose of Professional Development and Training is to improve the quality of our Panellists and Dispute Practitioners. For this reason, Panellists and Dispute Practitioners are being professionally trained and developed to keep abreast of new developments in the fi eld of Labour Law and to improve the quality of arbitration awards.


• Improve qualifi cations of Dispute Resolution Practitioners




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013


target to Actual Achievement for

2012/2013


Training and development provided to 240 Dispute Resolution Practitioners and Commissioners

286 312 311 1 Potential / prospective

panellists were accommodated at

no extra cost.




Performance Indi-cator

Actual Achievement 2011/2012

Planned Target2012/2013

Actual Achievement2012/2013

Deviation from planned target to

Actual Achievement for 2012/2013


Professional Development and Training of Panellists

Improve qualifi cations of Dispute Resolution Practitioners

240 312 311 1 Potential / prospective panellists were accommodated at no extra cost.

Professional Development and Training Workshops 2012 for Panellists

During November and December 2012, one day workshops on Professional Development were held for panellists in Bloemfontein, Port Elizabeth, Durban, Centurion and Cape Town. A total number of 72 (seventy-two) panellists attended the workshops.

The purpose of these workshops was to improve the quality of the Council’s Panellists by discussing relevant legislation, case law, new developments, and problematic issues in the education sector.

Professional Development and Training Workshops 2012/2013 for Dispute Practitioners

During 2012 and 2013 dispute resolution training for dispute practitioners was conducted.

The training of dispute resolution practitioners is an important component of the mechanism of the dispute resolution function of the ELRC. The programme focussed on the improvement of the skills of practitioners, expanding the knowledge base of practitioners in so far as the case law in the education sector is concerned and consolidating the understanding of practitioners in relation to the constitution of the ELRC.

The programme also served as a platform for discussion on possible amendments to the ELRC constitution in relation to streamlining the dispute resolution procedure. The focus being on eff ective dispute prevention and management. The need for the eff ective resolution of grievances in the workplace would ensure a signifi cant decrease in the number of disputes referred to the ELRC. This would in turn contribute to a more stable education sector.


No under performance exist regarding Professional Development and Training of Dispute Practitioners, as the target of 240 was met and 61 Practitioners were trained in excess.




4.2 Programme 2: Collective Bargaining Services

PROGRAMME 2.1: Collective bargaining - National

Purpose

• To contribute to the Council’s vision of a strengthened social contract between government, teacher unions and civil society that helps to create a conducive environment for improved quality in teaching and learning.

• To maximise the scope of the parties’ shared interest, promoting the best possible fi t between good educational outcomes and a fair deal for the teaching profession.

• To promote collective bargaining at national and provincial levels to ensure the development of eff ective policies for quality public education in a non-disruptive environment for teaching and learning.

• To promote respect for international conventions, constitutional rights and values and labour legislation in the management of collective bargaining.

• To support and facilitate special initiatives and campaigns.


• Collective bargaining on matters of mutual interest in public education;

• Provision of facilitation services to support collective bargaining at national and provincial levels; and

• Research on teacher welfare and national development issues.


Collective Bargaining Services


Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


Collective Bargaining

Conclude bargaining on identifi ed matters of mutual interest in public education

Not Applicable 20% of agreed matters of mutual interest are concluded successfully in bargaining meetings

10% 10% Five (5) items are work in progress.

One (1) item is going through mandating process.

Two (2) items were taken off the agenda of Council as they were no longer considered a priority.




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


Facilitation Services

To ensure adequate post provisioning in all nine provinces

Provincial consultations on MTEF concluded in all nine chambers

90% distribution of posts

Not Achieved None No adequate evidence received

Research Services

Evidence based teacher welfare and national development issues identifi ed

Not Applicable Attend Education Conference

No Education Conference was held

100% No Education Conference was held during the fi nancial year as Council had not identifi ed any issues


Collective Bargaining Services: National



Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation from planned target to Actual Achievement for 2012/2013


Preparing for and managing collective bargaining

Bargaining on matters of mutual interest concluded

Not Applicable 20%

2 out of 10 matters

10%

1 out of 10

10% Five (5) items are work in progress.

One (1) item is going through mandating process.

Two (2) items were taken off the agenda of Council as they were no longer considered a priority.


Adequate posts are distributed to schools

Provincial consultations on MTEF concluded in all nine chambers

80% Not Achieved 100% No adequate evidence received.


Collective Bargaining Services: National



Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation from planned target to Actual Achievement for 2012/2013


Research services

Factors which promote labour peace, educator morale and educator wellbeing are identifi ed

Not Applicable Attend Education Conference

No Education Conference was held

100% No Education Conference had taken place during the fi nancial year as Council had not identifi ed issues.

Performance Overview of Collective Bargaining Services: National for the 2012/13 fi nancial year

The Council achieved its objective to monitor and implement collective agreements and policies during the period under review. The ELRC, through its provincial chambers, monitored the consultation process on the creation and distribution of educator posts (PPN) in all nine provinces.

In monitoring the implementation of the Teacher Incentives Policy (Improvement in Conditions of Service for Educators employed in terms of the Employment of Educators Act), Council received progress reports from the nine (9) provincial chambers.

A signifi cant achievement was the fi nalisation of the Amendments to Personnel Administrative Measures (PAM). The amendments would be published as soon as the internal processes at the Department of Basic Education are concluded.

The Council’s planned targets for 2013/14 under collective bargaining are: to successfully conclude eight (8) of the 11 agreed matters of mutual interest in public education and to conduct reasearch on evidence based teacher welfare and national development issues.

The identifi ed matters of mutual interest identifi ed for the 2013/14 fi nancial period will help to restore the image of the teaching profession, enhance educator morale and accordingly impact the quality of teaching in public schools.

The following Collective Agreements were concluded during the period under review:

1. Collective Agreement 1 of 2012: OSD for Education Therapists, Counsellors And Psychologists Employed In Public Education.

2. Collective Agreement 1 of 2013: Vote Weights of Trade Unions that are parties to Council.

The following FETCBU Collective Agreements were ratifi ed:

1. Collective Agreement 1 of 2013: Generic contract of employment for post level 1 lecturers appointed in the public further education and training colleges.

2. Collective Agreement 2 of 2013: Permanent appointment of serving temporary and contract lecturers who have been in the employ of further education and training colleges for a period of 12 months or longer.

3. Collective Agreement 3 of 2013: Establishing parity between conditions of service (benefi ts) of college appointed lecturers in public further education and training colleges with those employed in the public service.

4. Collective Agreement 4 of 2013: Policy on recruitment and selection for lecturing staff in the public further education and training colleges.


The following Provincial Collective Agreement was ratifi ed:

1. Collective Agreement No. 1 of 2012 of Free State: Guidelines for advertising and fi lling of educator posts at institutions


A Pre-Bargaining workshop is to be convened in the 2013/14 fi nancial year to fi nalise the management plan on bargaining issues for approval by Council.




2012/13 2011/12

Programme Name

Budget Actual

Expenditure


Budget Actual

Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


27 858 22 424 5 434 32 342 21 738 10 604

Total 27 858 22 424 5 434 32 342 21 738 10 604

HIGHER EDUCATION AND TRAINING COLLEGES SECTOR

The 2012/13 fi nancial year saw the promulgation of the Further Education and Training Colleges Amendment Act, 3 of 2012. The Act was assented to on the 3rd of May 2012 and came into operation on the 11th May 2012. With the Act coming into operation; the functions previously assigned to the MECs were transferred to the Minister and those previously assigned to HODs were transferred to the Director-General with the exception of Sections 11, 12, 13, 14, 28(3) and 32(b).

In terms of the Further Education and Training Colleges Amendment Act No. 3 of 2012; the Education Labour Relations Council, through its Further Education and Training Colleges Bargaining Unit, continues to be the Bargaining Council to determine salaries and conditions of employment of lecturers employed by a public college in accordance with section 20(4)(b) of the principal Act as amended by FET Amendment Act, until the parties agree to establish a new structure relevant to staff of public colleges employed under that section.

In order to eff ectively manage the transition, the DHET in consultation with role players drafted the following plans: Migration Plan, Operational Plan and the Communication Plan. For the period under review there was a series of engagements with the stakeholders such as Principals, Provincial Directorates, College Councils, Organised Labour and the next step was the direct sessions with the aff ected employees.

Parties to the FETC Bargaining Unit took a lead role in advocating the process of engaging staff , and to this eff ect all nine (9) provinces were visited by the two (2) teams from the FETCBU over a period of two (2) weeks, from 4th February to 15th February 2013.

On 31st August 2012, the Minister of Higher Education and Training, Dr. Blade Nzimande published a notice calling for public comments on the Draft Policy on Professional Qualifi cations for FET College Lecturers in Government Gazette No. 35643. The policy was drafted in consultation with key role-players in the fi eld including universities involved in the off ering of professional qualifi cations for college lecturers; teacher unions; South African College Principals’ Organisation (SACPO); Education Training and Development Practices Sector Education and Training Authority (ETDP-SETA); Council on Higher Education (CHE); JET Education


Services; principals of public FET Colleges and sections within the Department of Higher Education and Training responsible for FET colleges and conditions of service of college lecturers.

The training and development of well-qualifi ed and competent college lecturers is an important requirement in ensuring that the Further Education and Training Sector produces qualifying learners with the necessary competence and vocational skills required by the labour market and society and is a high priority for government.

Of major highlight for the 2012/13 fi nancial year, was the signing and ratifi cation of the following four (4) collective agreements, which had been on the agenda of the bargaining unit for a while:

• Collective Agreement 1 of 2013: Generic Contract of Employment for Post Level 1 educators appointed in the Public Further Education and Training Colleges.

• Collective Agreement 2 of 2013: Permanent Appointment of serving Temporary and Contract Lecturers who have been in the employ of Further Education and Training Colleges for a period of 12 months or longer.

• Collective Agreement 3 of 2013: Establishing Parity between conditions of service (Benefi ts) of college appointed lecturers in Public Further Education and Training Colleges with those employed in the Public Service.

• Collective Agreement 4 of 2013: Policy on Recruitment and Selection for Lecturing Staff in the Public FET Colleges.

As indicated in the above mentioned paragraphs, 2012/13 was a year full of changes and achievements not only for the FETCBU but for the Higher Education and Training Sector as a whole.


A Pre-Bargaining workshop is to be convened to fi nalise the management plan on bargaining issues for approval by Council.




Programme 2.2: Collective Bargaining – Provincial

Purpose

The purpose of the provincial chambers is to promote collective bargaining at provincial level to ensure the development of eff ective policies for quality public education in a non-disruptive environment for teaching and learning.

2.2.1 Eastern Cape


Collective Bargaining Services: Eastern Cape


Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013



To attend a national workshop for planning and evaluation of performance of chamber objectives

Not Applicable Evaluation and planning done

Evaluation and planning done

None

To convene a workshop to identify issues of mutual interest for bargaining

One (1) workshop Issues of mutual interest identifi ed

Not Achieved 100% Chamber has just been resuscitated and Parties were focusing on the PPN 2013 consultation.

Post Provisioning

To prepare for consultation process

Not Applicable Consultation concluded in the

2nd term

Consultation concluded by October 2012

None

Information Sharing

Employee Wellness Program

To see the improvement in the health and morale of employees

Not Applicable Declining rate of absenteeism

Declining rate of absenteeism

None




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


Disputes

To minimise the number of disputes declared

Not Applicable The number of disputes minimised

The number of disputes minimised

None

Safety at schools

To ensure that safety at schools plan is adopted

Not Applicable Plan analysed and adopted

Plan analysed and adopted

None

Skills development

To ensure that skills gaps identifi ed during evaluation process are addressed

4 749 Identifi ed educators with

skills gaps trained

Identifi ed educators with

skills gaps trained

None

Employment Equity

To contribute to the improvements in achievement of equity targets

Not Applicable Equity targets improved

(80 731 educators)

Equity targets improved

(80 731 educators)

None

Performance Management IQMS

To monitor the evaluation of educators in terms of the performance management system

Not Applicable Educators are evaluated

Educators evaluated

None

Implementation and Monitoring of Collective Agreements

Post Provisioning

To monitor the distribution of additional posts to schools as per the staff establishment

Not Achieved Reports received and analysed by

chamber

Not Achieved 100% The meeting that was convened for the distribution of posts could not sit as unions rejected the declaration.




Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


Implementation of Collective Agreements

i) IQMSii) PMDSiii) WSE


Not Achieved Ensure that selected schools

on national sample are evaluated in

line with the nine (9) focus areas

Ensure that selected schools

on national sample are evaluated in

line with the nine (9) focus areas

None

Policy on incapacity leave and ill health retirement (PILIR)

To ensure that the number of PILIR cases drop and receive progress reports, analysed and adopted by chamber

Not Applicable Reduction in number of PILIR

cases

Declined from 524 to 232

None

Temporary Educators

To monitor the extent of utilisation of temporary educators

Not Achieved Temporary educators utilised

maximally and eff ectively

Reduction in the pool of temporary

educators

Temporary educators utilised

maximally and eff ectively

Reduction in the pool of temporary

educators

None


Overview of the Eastern Cape Chamber’s performance for the 2012/13 fi nancial year

In the period under review, the Eastern Cape Chamber mainly attended to matters relating to the appointment of temporary educators. A facilitation process resulted in the signing of Collective Agreement No. 1 of 2012 on the Appointment of Temporary Educators.

The Parties then devoted themselves to monitoring the implementation of Collective Agreement No. 1 of 2012, focusing on the Appointment of Temporary Educators and Post Provisioning Norms 2013. The Eastern Cape Chamber convened and facilitated PPN 2013 consultation meetings on behalf of the MEC’s offi ce, as per its constitutional obligation. The consultations ended with a declaration by the MEC of 60 820 posts in the province for the 2013 academic year. Labour unions rejected the declaration and declared a dispute in this regard at the ELRC level and court cases were opened against the Employer and the matter was found to be out of the ELRC jurisdiction.

The appointment of temporary educators increased the number of educators in the system and consequently minimised the number of vacancies. These temporary educators assisted with eff ective teaching and learning in public schools.


A Strategic Planning Workshop is planned for the 2013/14 fi nancial period to inform districts of their role in achieving the objectives as set out in the Council’s Annual Performance Plan. The Chamber will provide training to districts on how to report on these objectives.




2.2.2 Free State


Collective Bargaining Services: Free State


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013






None


One (1) workshop Issues of mutual interest identifi ed

Not Achieved 100% Workshop did not take place due to the disengagement of one Party.

Post provisioning


Consultation fi nalised before 30 September 2011

Concluding consultation in the 2nd term

Consultation concluded by August 2012

None

Information Sharing

Employee Welleness Program


33 referrals Declining rate of absenteeism

Not Achieved 287 Department is conducting investigation to establish causes of absenteeism.

Disputes


41 cases The number of disputes minimised


None

Safety at schools

To ensure that safety at school plan is adopted



None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Skills development


CAPS training was provided

Identifi ed educators with skills gaps trained


None

Employment Equity

To contribute to the improvement in achievement of equity targets

Targets were not achieved


Not Achieved 100% Strategies to achieve the targets were recently approved, thus no record of improvement.

Performance Management – IQMS



Educators evaluated

None


Post Provisioning


Posts were distributed

Reports received and analysed by chamber


None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



i) IQMSii) PMDSiii) WSE

To monitor the evaluation of educators in terms of the performance managements system


Ensure that selected schools on national sample are evaluated in line with the nine (9) focus areas

(22 778 educators)

Educators evaluated

Ensure that selected schools on national sample are evaluated in line with the nine (9) focus areas

(22 778 educators)

None



Not Applicable Reduction in number of PILIR cases

Not Achieved 100% PILIR cases could not be reduced due to the lapsed contract with Health Risk Manager.

Temporary Educators


Educator contracts were extended/renewed quarterly until the end of the fi nancial year

Temporary educators utilised maximally and eff ectively

Reduction in the pool of temporary educators



None


Targets that are unique to the Free State Chamber



Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Information Sharing

Grievances

To monitor the implementation of DPS and improve turn-around time in resolution of grievances

Not Applicable Finalising and adopting the Dispute Prevention Strategy

Dispute prevention strategy was adopted

None

Curriculum

To monitor implementation of the reviewed curriculum

Not Applicable Eff ective implementation of the reviewed curriculum

Eff ective implementation of the reviewed curriculum

None

Inclusive Education

To monitor the provision of inclusive education in the FSED

Not Applicable Eff ective implementation of the reviewed curriculum in the FSDoE

Eff ective implementation of the reviewed curriculum in the FSDoE

None

Early Childhood Development

To monitor the provisioning of ECD in the FSDoE

Not Applicable Eff ective provisioning of early childhood development in the FSDoE

Eff ective provisioning of early childhood development in the FSDoE

None

Advertising and fi lling of educator posts

To provide a forum for consultation on the advertising and fi lling of educator posts

936 posts advertised and fi lled

Advertise and fi ll educator posts on a quarterly basis, especially promotional posts

Not Achieved 462 A number of posts were not fi lled due to processes pending declared disputes and other posts being withdrawn.




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



Permanent Appointment of temps

To monitor the conversions of temporary educators in terms of FSCA 1 of 2009

68 were converted Monitoring conversion of temporary educators

Not Achieved 171 temporary educators were converted

The number of conversions increased due to the number of posts that were advertised.


Post Provisioning

To conclude a Provincial Collective Agreement on Post Provisioning

Not Achieved Provincial Draft Collective Agreement adopted and submitted to the Council for ratifi cation

Not Achieved 100% The matter was deferred to task team to discuss post provisioning issues that are critical in the Free State.

Overview of the Free State Chamber’s performance for the 2012/13 fi nancial year

Parties worked hard and were committed to contributing towards the achievement of targets as set out in the Annual Performance Plan for the 2012/13 fi nancial year. The overall performance for the 2012/13 fi nancial year is 72%.

The following achievements contributed to improvement in the quality of education in public schools in the province:

Parties reached consensus on the signing of Free State Collective Agreement No. 1 of 2012 on the fi lling of institution based educator posts. Implementing this agreement reduced possible disputes on promotional posts and those that could have emanated from lack of a uniform approach and clear procedures in terms of the selection criteria, having such guidelines minimised disruptions and improved quality education in schools. Continuous advocacy and training on the collective agreement will strengthen and further improve implementation and the smooth running of this process.

Post provisioning consultation 2013 on the creation of posts was successfully completed within prescribed timeframes in accordance with regulations and the process was concluded on 25 July 2012. Whereupon preliminary post provisioning letters were issued out to schools

Signifi cant progress has been recorded on the implementation of Free State Collective Agreement No. 1 of 2009, wherein the conversion for temporary educators as in the 4th quarter statistics revealed that of 561 temporary educators; 171 qualifi ed for conversion. This made a huge impact and contributed positively towards the provisioning of secure jobs for temporary educators. Furthermore, the extent of utilisation of temporary educators stabilised learning and teaching as it resulted in the eff ective management of schools in the province.


The placement of excess educators posed serious challenges in as far as eff ectively managing the process was concerned, as some of the role-players were reluctant to accept excess educators who had been identifi ed for placement in their schools. In spite of these challenges, the matter was attended to with the seriousness it deserved. Intervention strategies had been put in place to reduce the number of excess educators in the system, to manage the matching and placement process and properly implement Collective Agreement No. 2 of 2003.

Additional to the above, a huge improvement has been recorded on the implementation of Collective Agreement No. 8 of 2003: Integrated Quality Management System (IQMS), where reports stipulated that 2012 summative evaluation was submitted by schools. Out of 22 778 educators, 21 972 were evaluated, whereas 806 were not evaluated due to reasons ranging from educators being on sick leave, long incapacity leave as well as temporary disability.

Parties made an enormous contribution in the achievement of objectives and further recommitted themselves to improved performance in the new fi nancial year.


Employee Wellness (Reducing the rate of absenteeism)

The Department is conducting an investigation which include other directorates such as the leave section to fi nd other causes of absenteeism. The fi ndings will assist with workable strategies.

Disputes (Minimising number of disputes)

Dispute Prevention Committees have been established in all districts. Such committees have been established to centralise the resolution of grievances.

Equity (Improve the achievement of equity targets)

District Employment Equity Consultative Forums have been established in all Districts. An Equity and Diversity Management Plan 2012-2015 has been approved. The plan focuses on the employment and career progression opportunities for equity groups identifi ed as being considerably under- represented in the workplace. Offi cials and Senior Education Specialists have been assigned to drive this project.

PILIR (Reduction in the number of cases)

The Free State Education Department cannot reduce the number of cases but is speeding-up the process of boarding educators by following Schedule 1 of the Employment of Educators Act.

Bargaining on Identifi ed Matters of Mutual Interest

A Strategic Plan Workshop has been confi rmed for 27th and 28th May 2013.




2.2.3 Gauteng


Collective Bargaining Services: Gauteng


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Preparing for and Managing Collective Bargaining


One (1) meeting Evaluation and planning done


None


One (1) workshop convened

Issues of mutual interest identifi ed

Not Achieved 100% This item has not been on the Chamber’s agenda. However, it has been included in the agenda of 2013/2014.

Post Provisioning


One (1) meeting Consultation concluded in 2nd term

Consultation concluded in 2nd term

None

Information Sharing

Employee Wellness program

To see improvement in the health and morale of employees

Reports received and analysed by Chamber


Not Achieved 100% The Provincial Department of Education did not provide baseline statistics on the rate of absenteeism.

Disputes


Not Applicable To minimise the number of disputes

Not Achieved 100% While disputes have been attended to in the Department, the chamber did not develop mechanisms to monitor the performance.




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Safety at Schools




None

Skills Development





None

Employment Equity



Not Achieved 100% The objective was not achieved as there was no Equity Plan. The Plan will be adopted and implemented in the 2013/14 fi nancial year.


To monitor the evaluation of educators in terms of performance management system

Reports were presented in line with the 2011/12-performance plan. The chamber concentrated on the implementation of IQMS

Educators are evaluated

Educators evaluated

None


Post Provisioning


One (1) meeting Reports received and analysed by chamber


None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Implementation of Collective Agreements [IQMS, PMDS, WSE]


Reports presented to chamber as per the 2011/12 performance plan


Educators evaluated

None

Policy on incapacity

Leave and ill health Retirement [PILIR]



No Achieved 100% The objective was not achieved as there was no monitoring of developments. The objective will be achieved in the 2013/14 fi nancial year.

Temporary Educators


Reports received and analysed by Chamber and submitted to council





None


Targets that are unique to the Gauteng Chamber



Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Information Sharing

National Curriculum Statement (NCS) Training

To provide a forum for consultation on the training plan

Training plan endorsed by the chamber



None

Advertising and Filling of Promotional Posts

To provide forum for consultation on the advertisement and fi lling of educator posts

Not Applicable Management Plan endorsed by the chamber

Management Plan endorsed by the chamber

None

Inclusive Education

To receive reports on the implementation of inclusive education (LSEN) policies in schools

Not Applicable Reports received and analysed by chamber


None

Appointment of foreign educators

To provide a forum for consultation on the principles and provisions that governs recruitment and employment of foreign educators

Not Applicable Reports and circular tabled and endorsed in the chamber

Not Achieved 100% Regulating recruitment of foreign educators was not realised.

It has emerged through legal counsel that the matter could best be resolved at National level. The matter is in many ways beyond the jurisdiction of Chamber.


Overview of the Gauteng Chamber’s performance for the 2012/13 fi nancial year

The Gauteng Chamber convened a number of productive meetings and workshops during the period under review. This includes a meeting on the Medium Term Expenditure Framework (MTEF). This consultative meeting took place on 6th March 2012 where the indicative budget was discussed, which informs the post-provisioning model in the allocation of human capital and resources.

A meeting was also convened on Grade R universalisation. The focus of this meeting was on the rollout of Grade R to all schools in Gauteng by 2014. The Chamber is well on its way to clear the path on Grade R practitioners and their conditions of service, which will have a bearing on the preparation of our learners in that critical stage.

A Teacher Development Strategy and Plan Workshop was convened to interact on matters related to improving the quality of teaching and learning in schools by strengthening SMTs and district specialists in terms of monitoring and evaluation of curriculum management, as well as the learning and teaching environment.

The Chamber has for some time been pre-occupied with the objective to have Learner Support Educators detached from specifi c learning institutions in favour of being shared by a cluster of schools. The Chamber has through the Learners with Specialised Education Needs (LSEN) Task Team fi nally produced a Memorandum on the scope and utilisation of Learner Support Education (LSE). The team has further agreed to proceed with utilising employees within the Gauteng Department of Education (GDE) to perform job evaluation with a view to fi nd the most appropriate post level for the LSEs in the province.

The Chamber mandated the Educator Resourcing Task Team to revise the Guidelines on the fi lling of vacancies that continuously arise in the system. The guidelines sought to remain consistent with the provincial Collective Agreement No. 2 of 2005, in its prescription on the minimum number of candidates to be shortlisted.

The Gauteng Chamber encountered a few hurdles towards the end of the 2012 academic year, which was in the main caused by unsettling signals from the Heads of Education Departments Committee (HEDCOM) on the matter related to a competency test for Grade 12 markers, which labour perceived to be hostile. The Chamber was complimented for the maturity of our partners in fi nding an amicable resolve to the impasse. The instruction stated above aims to set clear guidelines in the appointment of markers for Grade 12 and the monitoring of the examination process.

The Educator Development Task Team that sat on 6th November 2012, resolved that a meeting be convened with the Matthew Goniwe Leadership Institute. The objective was to raise concerns in relation to the Advanced Certifi cate in Education (ACE) programme advanced to Principals and Deputy Principals with a view to amplify their managerial skills. The Institute responded well and further produced an impact analysis research outcome on the ACE progress.

A workshop on the Recapitalisation of Technical High Schools was conducted on 14th March 2013. The ultimate aim of the workshop was to establish technical high schools, which would be responsive to the skills development demand in our labour market. The workshop resolved to recommend to Chamber the establishment of a task team. The task team would work to ensure the establishment of these envisaged institutions. It would guide the Chamber on the staffi ng and learner enrolment in these schools. The Chamber anticipates tangible results in the 2013/2014 fi nancial year.

The item on realignment remains a standing item of Chamber, with a view to monitor its implementation. The Special Chamber that sat on 28th January 2013, caused the employer to release the fi nal approved realignment document to labour parties, to which the employer obliged.

The Gauteng province has absorbed by the end of February 2013 no less than 2 000 temporary educators. The employer reported that only 20% of Fundza Lushaka bursary holders have been successfully placed in the province. The high turnover of the bursary holders is in sync with the geo-economic content and outlook of our province, which makes it a pulling force. However, the task team on Educator Resourcing recommended to Chamber that bursary holders be absorbed in the growth posts.

The programmes implemented in the period under review made a positive impact in realising our objective of attaining public quality education. The training rolled out to heads of schools and the establishment of the Learner Support Educators directly impacted on functional schools and learners who receive added attention from educators from within the LSE unit.


It is noteworthy that the establishment of Grade R classes in all our primary schools will yield good results in learner achievement. The Chamber’s facilitation of these processes places it in a critical position to enhance our apex objective of attaining quality education in public schools. The 2012 matric results clearly indicate that all the programmes actualised through bargaining in the Chamber, cannot be viewed in silos but are intrinsically interwoven to our apex objective of quality education in public schools.


Stanco agreed through Chamber to establish relevant task teams, which will focus on areas of underperformance. The task teams specifi cally relating to Dispute Prevention, Employee Assistance coupled with that of PILIR will be established in the new fi nancial year and will respond to the objectives as set out in the Annual Performance Plan.




2.2.4 KwaZulu-Natal


Collective Bargaining Services: KwaZulu-Natal


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013






None


Not Achieved Issues of mutual interest identifi ed

Not Achieved 100% Not tabled and discussed. Parties focussed on other important issues which aff ected the delivery of quality education such as dealing with a huge backlog of displaced educators, payment of Grade R Educators and fi lling of vacant management posts at schools.




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Post Provisioning


Not Achieved Consultation concluded in 2nd term

Not Achieved 100% Preparatory meetings were not achieved. Parties focussed on other important issues which aff ected the delivery of quality education such as dealing with a huge backlog of displaced educators, payment of Grade R Educators and fi lling of vacant management posts at schools.

Information Sharing

Employee wellness programme To see the improvement in the health and morale of employees

Not Achieved Declining rate of absenteeism


100% Not tabled and discussed. Parties focussed on other important issues which aff ected the delivery of quality education such as dealing with a huge backlog of displaced educators, payment of Grade R Educators and fi lling of vacant management posts at schools.

Disputes


Achieved

202 cases of displaced educators was lodged



None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Safety at schools

To ensure that safety schools plan is adopted

Not Achieved Plan analysed and adopted

Not Achieved 100% Not tabled and discussed. Parties focussed on other important issues which aff ected the delivery of quality education such as dealing with a huge backlog of displaced educators, payment of Grade R Educators and fi lling of vacant management posts at schools.

Skills development


Not Achieved Identifi ed educators with skills gaps trained

Not Achieved 100% Not tabled. Parties focussed and dealt with other priority issues which aff ected education in KwaZulu-Natal, eg. clearing a huge backlog of displaced educators, fi lling of vacant management posts and payment of Grade R Educators.

Employment Equity

To contribute to the improvements in achievement of equity targets

Not Achieved Equity targets improved

Not Achieved 100% Scheduled meetings could not take place due to the unavailability of all Parties.




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Performance Management

IQMS – To monitor the evaluation of educators in terms of the performance management systems

Not Achieved Educators are evaluated

Not Achieved 100% Not tabled and discussed. Parties focussed on other important issues, which aff ected the delivery of quality education such as dealing with a huge backlog of displaced educators, payment of Grade R Educators and fi lling of vacant management posts at schools.


Post Provisioning


Achieved

Two (2) consultation meetings held which focussed on post creation



None

Implementation of collective agreements –

IQMSPMDSWSE


Not Achieved Educators are evaluated

Not Achieved 100% Not tabled and discussed. Parties focussed on other important issues, which aff ected the delivery of quality education such as dealing with a huge backlog of displaced educators, payment of Grade R Educators and fi lling of vacant management posts at schools.




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Policy on Incapacity leave and ill health retirement (PILLR) –

To ensure that the number of PILLIR cases drop and receive progress reports analysed and adopted by chamber

Not Achieved

Individual cases were not reported on

Reduction in number of PILIR cases

Not Achieved 100% Cases not fi nalised and no report tabled and discussed at Chamber.

Temporary Educators -


Not Achieved Temporary educators utilised maximally and eff ectively

Reduction in the pool of temporary education

Not Achieved 100% Broad in principle discussion / decision at chamber on the use and protection of more than

10 0000 temps.

Overview of the KwaZulu-Natal Chamber’s performance for the 2012/13 fi nancial year

During this period the core work of the Chamber dealt with the fi nalisation of the backlog on displaced educators and additional items which were:.

• Seven (7) preparatory meetings were held in lieu of preparing for World Teachers Day held on 05 October 2012.

• Agreement and decision on payment of incentives for educators teaching in quintile one schools.

• Agreement to pay Grade R practitioners a once-off gratis payment. In addition, parties agreed to investigate ways to improve conditions of service for Grade R Practitioners.

• Release of HRM 67 of 2012 – Directive to schools on (i) the implementation of the educator post establishment for 2013 (ii) conditions on which temporary educators were to be terminated (iii) placement of bursary holders (iv) submission of profi le list on surplus educators (v) placement and payment of temporary educators;

• Advertisement of school based promotion posts (HRM 40 and 48 of 2012)

Whilst most of the predetermined objectives as per 2012/2013 annual performance plan had not been dealt with, the parties had acknowledged the need for chamber to nevertheless deal with issues which made a contribution to the improvement in the delivery of quality public education.

The overall contribution made by Chamber in this respect can be described as taking place in three areas:


1. To promote labour peace:

• There was an unacceptably high number of backlog on displaced educators which created uncertainty and anxiety to the aff ected educators whose security of tenure was in doubt and to the Employer, because of the huge costs associated with having to pay replacement educators and of qualifi ed displaced educators not being gainfully utilised. Whilst the Parties initially dealt with 202 educators, this number almost doubled when the process of placement got underway.

• The payment of temporary educators was of concern to many educators who were disgruntled to render their services, sometimes for a few months and had not been timeously paid. The employer has undertaken to ensure that temporary educators were paid on time.

• The payment of incentives to educators teaching in quintile one schools.

• Parties have also committed themselves to deal with temporary incapacity /medical boarding backlog cases. Chamber has created a task team to deal with outstanding cases. Even though none of the nine (9) offi cial cases reported on had been resolved, the parties continue to meet at task team level to explore creative ways and means to resolve queries. Parties acknowledge that the number of offi cial queries would be signifi cantly increased, as unions have undertaken to provide a composite list of all aff ected members.

2. To ensure eff ective management at schools:

• This was achieved by ensuring that vacant management posts at schools had been identifi ed, advertised and fi lled and that there is constant monitoring of the processes.

3. Staffi ng of schools to ensure every classroom has an educator:

• The eff ective staffi ng of schools (especially level one posts) is dependent on a balance being found in ensur-ing the services of temporary educators were not unnecessarily terminated and the need to place surplus educators and to ensure that newly qualifi ed bursary holders are found places in the system. Parties have ensured that this balance in working towards eff ective staffi ng at schools was achieved and after agreement at chamber, a directive was sent to all schools to ensure eff ective implementation.


There has been evident contribution by Chamber to the delivery of quality education. However, the Parties acknowledged the need to ensure that all pre-determined objectives as per the performance plan is dealt with and achieved. This would ensure that Chamber becomes even more productive in its pursuit to contribute to the delivery of quality public education.

At the operational planning review workshop, Parties committed themselves to work together to ensure that regular sub-committee meetings and Chamber meetings are held and that objectives which are identifi ed on the operational plan are dealt with. Parties formulated a pledge to jointly work together in ensuring that Chamber becomes productive.

Parties have now confi rmed their availability for meetings. A Stanco meeting is planned for 23 May 2013 to discuss inter alia, the revised operational calendar for the KwaZulu-Natal Chamber; the new approved annual performance plan for 2013/14 for parties to identify respective committees to deal with objectives and report to chamber in time for reporting in the fi rst quarter of the 2013/14 fi nancial year; and identifi cation of a date for the workshop on the indicative budget for post provisioning.




2.2.5 Limpopo


Collective Bargaining Services: Limpopo


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



To attend the national workshop for planning and evaluation of performance chamber objectives


Not Achieved 100% The national workshop was not convened due to provincial parties’ unavailability.


The budget workshop was dealt with outside of Chamber and the outcomes thereof were adopted by chamber

Issues of mutual interests identifi ed

Not Achieved 100% The meeting to identify issues of mutual interest for bargaining was postponed by Parties.

Post Provisioning


One

consultative meeting was held


Not Achieved 100% Parties implemented Collective Agreement No.1 of 2012 to deal with post provisioning.

Information Sharing



Chamber received the reports and adopted them as per the 2011/12 performance indicator


Not Achieved 100% The Employer tabled reports without statistics on absenteeism.

Dispute


59 The number of disputes minimised


None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Safety at schools



Not Achieved 100% The Employer tabled reports without statistics on incidents.

Skills Development


Reports were received and analysed by chamber



25 536 Reason for overachievement was due to the fact that a new policy was introduced, therefore more educators had to be trained.

Employment Equity


Reports received did not specify the actual achievement



None

Performance Management- IQMS


Reports were received and analysed by Chamber as per the performance plan



5.2% Some educators were on diff erent types of leave and others retired.


Post Provisioning

To monitor the distribution of additional posts to school as per the staff establishment

400 additional posts were allocated to schools



None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



(i) IQMS(ii) PDMS(iii) WSE



Educators evaluated

None

Policy on Incapacity leave and ill health Retirement

To ensure that the number of PILIR cases drop and progress reports are received, analysed and adopted by chamber



None

Temporary educators


4 429 temporary educators were employed





None


Targets that are unique to the Limpopo Chamber



Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Information Sharing

Curriculum

To monitor the implementation of the curriculum in various learning areas

Four (4) meetings Reports tabled and adopted in Chamber

Reports tabled and adopted in Chamber

None

Inclusive Education

To receive report on the implementation of Inclusive Education (LSEN) policies in school

Not Applicable Reports received and analysed by Chamber


None

Early Childhood Development

To receive report on the development in ECD (Recruitment employment and training of ECD practitioners)

Not Applicable Reports received and analysed by Chamber


None


Capped Leave

To monitor progress made in the auditing of educators’ capped leave days

100% of submitted cases of Educators’ capped leave days were attended to



None

Incentives for Educators

To monitor the implementation of incentives for educators

Reports were tabled and analysed by Chamber



None


Overview of the Limpopo Chamber’s performance for the 2012/13 fi nancial year

The Limpopo Chamber achieved 72% of its objectives during this reporting period, compared to the 86% achieved in the previous fi nancial year.

The Chamber revived and revitalised the functionality of District Task Teams through advocacy workshops. The ELRC was also represented at the Quality Learning and Teaching Campaign (QLTC) meeting for the Sekhukhune district.

The Programme performance indicator on Post Provisioning did not apply to the Limpopo province as it was addressed in Collective Agreement No. 1 of 2012, which extended the 2012 post establishment to 2013. Parties signed Collective agreement No.1 of 2012, which helped to facilitate and regulate the redeployment of excess educators and the permanent appointment of identifi ed categorised temporary educators. Chamber monitored the distribution of additional posts to schools as per the staff establishment. Chamber adopted a management plan to monitor the fi lling of the advertised vacancy lists No.1 Vol. 1 of 2012 and No. 2 Vol. 1 of 2012 for principals, No. 2 Vol. 2 of 2012 for Deputy Principals and No.1 Vol.3 of 2012 for HOD posts. The above ensured that schools were staff ed with educators with required skills and that most funds that were unnecessarily used to pay excess educators were deployed where they were needed most. Collective Agreement No.1 of 2012 also reduced the large pool of temporary educators and ensured their job security.

Another signifi cant achievement for the Limpopo Chamber was the monitoring of payment of rural allowance to identifi ed school posts in remote areas. These incentives were discontinued in December 2012, reportedly because of fi nancial challenges. The rural allowance assisted with the recruitment of educators in identifi ed rural schools. This ensured that rural schools attracted educators qualifi ed in the requisite skills.

The Chamber also monitored the implementation of the Employee Wellness Programs, which included HIV counselling and testing and the PILIR. Educators were encouraged to know their status and counselled on how to take good care of themselves. Some of those who applied for PILLIR were approved. This contributed to improvement in educator health and morale and indirectly to the delivery of quality education in public schools.

The Chamber concluded advocacy and training for the district dispute prevention task teams on their terms of reference and monitored the number of disputes and grievances lodged. This was to ensure that districts were in a good position to reduce the number of disputes and grievances. The reduction of disputes helped educators to focus mainly on teaching and thus enhanced the achievement of quality education.

The Limpopo Department of Education’s (LDoE’s) Skills Development program was monitored by the Chamber to ensure that skills gaps identifi ed were addressed. Educators were trained among others on the new school curriculum (CAPS) and school leadership. This ensured that educators were off ering quality education in line with the new curriculum. The Chamber further monitored the implementation of the LDoE’s Employment Equity plan for improvement in the achievement of equity targets.

The Educators’ Performance Management (IQMS and PMDS) was also monitored by the Limpopo Chamber during the period under review. Educators improved their teaching standards because they were motivated by the expectation of evaluation and the incentive attached to good achievement.

The Chamber also monitored, for the fi rst time, the implementation of the Policy on Incapacity leave and ill-health retirement (PILIR) to ensure that the number of submitted PILIR cases decrease. The approved educators would be rehabilitated, re-skilled or appropriately retired. The output of this exercise takes longer than a year. However, it boosts the morale of aff ected educators as they know that their plight was being attended to.


Strategy to overcome areas of underperformance

A strategic planning meeting is planned for the fi rst quarter of the 2013/14 fi nancial year to address identifi ed areas of underperformance.


Post Provisioning: The 2012 Post Establishment was extended to 2013.


2.2.6 Mpumalanga


Collective Bargaining Services: Mpumalanga


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013






None


Not Applicable Issues of mutual interest identifi ed


None

Post Provisioning


Not Applicable Consultation concluded in 2nd term


None

Information Sharing



Chamber received reports as per the 2011/2012 performance indicator and adopted them


Not Achieved 100% The Provincial Department of Education did not provide baseline statistics on the absenteeism rate.


Disputes

To minimise the number of dispute declared

Not Applicable Number of disputes minimised

Not Achieved 100% The Provincial Department of Education did not provide reports on the number of disputes declared.




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Safety at Schools

To ensure that safety at school plan is adopted


Not Achieved 100% The plan is currently in circulation amongst parties to chamber and awaits presentation for ratifi cation as well as adoption by chamber.

Skills Development


Not Applicable Identifi ed educators with skills gaps be trained

Identifi ed educators with skills gaps be trained

None

Employment Equity




None

Performance Management – IQMS Management System

To monitor the evaluation of educators in terms of performance management system

Reports were presented in line with 2011/12 performance plan. The chamber concentrated on the implementation of IQMS


Educators evaluated

None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



Post Provisioning




None



Reports presented to chamber as per 2011/12 performance plan


Educators evaluated

None

Policy on incapacity leave and ill health Retirement [PILIR]

To ensure that the number of PILIR cases drop and progress reports are received, analysed and adopted by chamber

The objective was not achieved as reports presented were without statistics

Reducing the number of PILIR cases


None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Temporary Educators


The report presented as per 2011/12 performance plan. In 2011/12 the number of temporary educators converted to permanent status was 2 299





None

Overview of the Mpumalanga Chamber’s performance for the 2012/13 fi nancial year

The Mpumalanga chamber managed to convene all scheduled meetings. Task teams were established to look at various matters on Teacher Education and Employment Equity. The Quality Learning and Teaching Campaign is currently operational and supported by all Parties serving in the Chamber. Both the Employer and employee Parties were in a position to deliberate with a common understanding.

The chamber managed to discuss the long awaited and refi ned employment equity plan and an agreement was reached that this plan should be implemented as a matter of urgency to assist in addressing equity matters. Parties successfully consulted and accepted the re-employment of 2 334 temporary educators as of January 2013 to December 2013, and further agreed that the remaining 218 are also addressed.

The Parties had consultations and endorsed the establishment of an Academy for Mathematics, Science and Technology and a Teacher Education Training College, which serves as a long term solution to the shortage of educators in the concerned learning areas. Briefi ngs were made on an induction programme of newly appointed SMT members, which is currently running in the province. This programme is aimed at developing and empowering all newly appointed Head of Departments (HODs) and Principals with regard to Management and Leadership skills.

Parties were able to share information on reports that payments for pay progression to all 28 000 qualifying educators was made by end of November 2012 for skills development, Performance Management Development System (PMDS) and PILIR.

The chamber did not receive reports on disputes. A presentation was done on the safety plan in schools.

The smooth functioning of the chamber contributed to the achievement of quality learning and teaching in the province as there was no disruption of classes in public schools. The improvement of the 2012 matric results can also be attibuted to the Council’s contribution to the quality of education in the province.



The Chamber agreed to have the integrated strategy on safety and security in schools presented and analysed and the Employer committed to ensuring that statistics and reports on the rate of absenteeism and disputes and grievances are provided.




2.2.7 Northern Cape


Collective Bargaining Services: Northern Cape


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



To attend a workshop for planning and evaluation of performance of chamber objectives

Not Achieved Evaluation and planning done


None


Achieved Issues of mutual interest identifi ed


None

Post Provisioning


Consultation fi nalised before 30 September 2011

Consultation concluded

in the 2nd term

Consultation concluded

in the 2nd term

None

Information Sharing


Improvement in the health and morale of employees

Not Achieved Declining rate of absenteeism

Not Achieved 100% The Employer did not table a report.

Disputes


38 cases Number of disputes minimised

Number of disputes minimised

100%




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Safety at Schools

To ensure that safety at schools plan is adoption


Not Achieved 100% For the 2012/13 fi nancial year, there was a lack of support measures for safety in schools but the Employer committed to prioritise the matter in the 2013/14 fi nancial year.

Skills Development

Ensure skills gaps identifi ed during evaluation process are addressed

CAPS training was provided



None

Employment Equity

Contribute to the improvement in achievement of equity targets

Targets were not achieved


Not Achieved 100% The Employer was still consulting on the draft Equity Plan.


Monitor the evaluation of educators in terms of the performance management system

Achieved Educators are evaluated

Educators evaluated

None


Post Provisioning

Monitor the distribution of additional posts to schools as per the staff establishment

Posts were distributed



None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



IQMSPMDSWSE


Achieved Educators are evaluated

Educators evaluated

None





None

Temporary Educators







None


Targets that are unique to the Northern Cape Chamber



Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Information Sharing

Early Childhood Development (ECD)

To interact with reports on the development in ECD

The focus areas are recruitment, employment and training of ECD practitioners

Not Achieved Progress Reports submitted and endorsed by Chamber

Progress Reports submitted and endorsed by Chamber

None

Curriculum

Provide a forum for consultation on the imple-mentation of the National Curriculum Statements

Monitor the Dinaledi Schools programme with special focus on learner achievement, recruitment of Maths, Science and indigenous languages educators in all Dinaledi Schools

To provide a forum to develop mechanisms that will ensure that the objectives of the Annual National Assessment [ANA] are achieved

Achieved Reports on training of educators and provision of LTSM submitted and endorsed by Chamber

Reports on learners performance and resourced by Chamber

Mechanisms developed and endorsed by Chamber

Reports on training of educators and provision of LTSM submitted and endorsed by Chamber

Reports on learners performance and resourced by Chamber

Mechanisms developed and endorsed by Chamber

None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Advertising and Filling of Educator Posts

Provide a forum for consultation on the advertisement and the fi lling of educator posts

Achieved Agreement reached on vacant funded posts

Endorsement of the management plan

Vacancy List published

Agreement reached on vacant funded posts

Endorsement of the management plan

Vacancy List published

None

Overview of the Northern Cape Chamber’s performance for the 2012/13 fi nancial year

During the 2012/13 fi nancial year, both the Employer and employee parties worked hard towards achieving the objectives as stipulated in the Annual Performance Plan.

Labour was aff orded the opportunity to give input on the circular that was sent to schools on the School Based Assessment (SBA) and Curriculum Coverage.

The merger and closure of small and non-viable schools for 2012 progressed well, as opposed to the 2011 process, which had not gone smoothly due to the uncertainties with regards to the status of the educators of the merged schools in some districts. The matter was however resolved amicably with both parties working together.

The Teacher Incentives Policy was fi nalised with the understanding that it would be implemented from January 2013 to March 2013, backdated. It was further agreed that the implementation would be fi nalised by 31st May 2013, as there were still contracts that had to be completed by the teachers in the qualifying posts. The process relating to April 2013 to March 2014 would also be managed.

The post provisioning norms (MTEF) consultation began in July 2012 and was concluded in time for the staff establishments to be sent to the schools.

The activities of the Northern Cape chamber in the third quarter of the 2012/13 fi nancial year focused on the provision of Learner Teacher Support Material (LTSM) and the transition of the Learner Transport Function. A report illustrated that the learner transport function was migrated to the Safety and Liaison Department, which implies that the Department of Education would only be responsible for monitoring the service provided to learners.

With regard to the delivery of learning and teaching support material, a 99.11% rate was achieved. It is envisioned that if the Department of Basic Education sends the catalogue to the provincial departments of education by 15th October 2013 as promised, a 100% delivery rate would be reported for the next fi nancial year.

The promotional post vacancy list 2/2012 was released on 22nd October 2012 and the assumption of duty would be 1st January 2013.

A signifi cant achievement had been recorded on the conversion of temporary educators, as 115 educators were converted with eff ect from 1st January 2013.



Parties pledged their committment to work together to achieve the chamber’s strategic objectives as set out in the annual performance plan for the 2013/14 fi nancial year.




2.2.8 North West


Collective Bargaining Services: North West




Actual Achievement

2012/2013



2012/2013






None



Not Achieved 100% The workshop could not be convened because of the impasse between the Employer and Sadtu.

Post Provisioning


Two meetings Consultation concluded in 2nd term


None

Information Sharing


To see improvement in the health and morale of employees

Chamber received reports as per the 2011/2012 performance indicator and adopted reports


Not Achieved 100% The Provincial Department of Education did not provide baseline statistics on the absenteeism rate.

Disputes

To minimise the number of dispute declared

Eleven Number of disputes minimised

Number of disputes minimised

None

Safety at Schools




None






Actual Achievement

2012/2013



2012/2013


Skills Development

To ensure that skills gaps

identifi ed during evaluation process are addressed

4 521

3 624 trained



None

Employment Equity


Designated group (89%)

Women (50%)

People with disability (2%)



None





Educators evaluated

None

Implementation of Policies and Monitoring of Collective Agreements

Post Provisioning


Two meetings Reports received and analysed by chamber


None






Actual Achievement

2012/2013



2012/2013






Educators evaluated

None






None

Temporary Educators


305 Temporary educators utilised maximally and eff ectively




None This achievement was due to the correct implementation of provincial Collective Agreement No. 1 of 2010, on the conversion of temporary educators.


Targets, which are unique to North West Province Chamber



Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Advertising and Filling of Educator Posts

To provide forum for consultation on the advertisement and fi lling of educator posts

Not Applicable Agreement reached on vacant funded posts

A circular and management plan on recruitment and selection processes presented and adopted

Vacancy list published

Agreement reached on vacant funded posts

A circular and management plan on recruitment and selection processes presented and adopted

Vacancy list published

None

Information Sharing

Quality Learning and Teaching Campaign

To share information on progress made provincially

Not Applicable Information received and analysed by chamber

Gaps identifi ed and assistance provided

Information received and analysed by chamber

Gaps identifi ed and assistance provided

None

Implementation and Monitoring of Collective Agreements / Policies

Payment of Capped Leaves

To monitor progress in the auditing of educators’ capped leave days

Not Applicable Reports received, analysed and adopted by chamber

Reports received, analysed and adopted by chamber

None

Incentives for Educators

To monitor the correct implementation of incentives for educators



None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Pension Pay-Outs

To monitor the implementation of and progress made on pension payouts

Not Applicable Progress reports on payouts received, analysed and adopted by chamber

Not Achieved 169 Pension payouts are made through the Government Employee Pension Fund (GEPF) and not the Employer.

Phasing out of Middle Schools

To consult on and monitor implementation of phasing out of Middle schools

Not Applicable Reports presented, analysed and adopted by chamber

Reports presented, analysed and adopted by chamber

None

Merging of Schools

To develop a strategy on how to deal with personnel aff ected by merging of schools

Not Applicable Progress reports received and analysed by chamber

Progress reports received and analysed by chamber

None

Overview of the North West Chamber’s performance for the 2012/13 fi nancial year

The 2012/13 fi nancial year has been a successful year for the North West Chamber as all Parties to chamber showed commitment and dedication in achieving the set standardised objectives and the unique objectives as identifi ed by parties to the chamber.

In the period under review, the chamber recorded a 91% achievement rate of the standardized annual objectives, compared to the 87% achievement rate of the previous fi nancial year. The standardised annual performance plan consisted of 11 objectives and the North West Chamber successfully achieved on ten (10) objectives. Only one (1) objective was not achieved and this accounts for the 9% not achieved by the chamber.

The postponement of scheduled meetings at times destabilised the smooth running of the chamber. However, Parties were able to deal with this challenge successfully. The chamber held numerous task team meetings, which resulted in a draft provincial collective agreement on job security for temporary teachers and a draft provincial collective agreement on procedures to deal with principals aff ected by the merger and closure of institutions. The two draft provincial collective agreements are still to be signed by Parties to the chamber. The chamber was also able to hold MTEF meetings according to the year plan. However, the last MTEF did not produce the desired results and Parties resolved that a special MTEF would be convened during the fi rst quarter of the 2013/14 fi nancial year to fi nalise the monitoring of correct post distribution to schools.


The smooth functioning of the chamber in the 2012/13 fi nancial year enabled the Chamber to contribute to quality education in public schools as the province did not experience disruptions to teaching and learning. The fact that the provincial matric results for 2012 were good is a clear indication of the cooperation of all Parties to the Chamber. The involvement of the Provincial Manager and representatives of all Parties to the chamber in the Quality Learning and Teaching Campaign (QLTC) throughout the fi nancial year, also assisted in making sure that schools in the province implemented the objectives of the campaign.


A special MTEF meeting is to be convened in the fi rst quarter of the 2013/14 fi nancial year to fi nalise monitoring on the correct implementation of staff establishment.




2.2.9 Western Cape


Collective Bargaining Services: Western Cape




Actual Achievement

2012/2013

Deviation from planned target

to Actual Achievement

for 2012/2013



To attend a National workshop for planning and evaluation of performance of chamber objectives



None

To convene a workshop to identify issues of mutual interests for bargaining


Not Achieved 100% Strategic Planning Workshop held, but no new mutual issues were identifi ed.

The Plan was only reviewed.

Post Provisioning To prepare for consultation process

Two meetings Consultation concluded in 2nd term


None

Information Sharing



Chamber received reports as per the 2011/2012 performance indicator and adopted reports


Not Achieved 100% The Provincial Department of Education did not provide the baseline statistics on absenteeism rate.

Disputes

To minimize the number of dispute declared

176 The number of disputes minimised


None

Safety at Schools




None






Actual Achievement

2012/2013



for 2012/2013


Skills Development


Reports were presented in line with the 2011/12-performance plan. The chamber concentrated on the implementation of the Skills Development Act



None

Employment Equity


Reports were presented in line with the 2011/12-performance plan


Not Achieved 100% The baseline statistics on absenteeism rate was not available





Educators evaluated

None


Post Provisioning


Two consultation meetings were held and 421 additional posts were added



None






Actual Achievement

2012/2013



for 2012/2013






Educators evaluated

None



To ensure that there is reduction in the number of PILIR cases drop and receive progress reports analysed and adopted by chamber


Not Achieved 100% The Employer party presented reports without statistics on the number of PILIR cases.

Temporary Educators


Not applicable Temporary educators utilised maximally and eff ectively




142 were not converted

The non-conversions are due to the following reasons:

Not in service for more than 12 months

Not having REQV 13

Medically boarded/early retirement

Foreigners not having SA citizenship.


Overview of the Western Cape Chamber’s performance for the 2012/13 fi nancial year

Labour peace was maintained through common understanding between the Employer and the employee parties. This is evident through the recent conversion of temporary educators to permanent appointments in substantive vacant positions. Task team meetings and special chamber were convened to oversee this process, which saw a total number of 189 educators being converted from temporary status to permanent status. Collective Agreements were successfully implemented by the Employer and monitoring of such policies and collective agreements are monitored in the chamber meetings.

The Employer also trained educators on CAPS. The Chamber also monitored the placing of Fundza Lushaka bursary holders. Of the 669 Fundza Lushaka bursary holders, the province managed to place 599 and addressed the eff ect that it may have on the 465 excess educators and temporary educators in the Western Cape province.

In some areas the chamber has witnessed a very slow pace in terms of productivity; after lengthy discussions and workshops held, the Parties have adopted a common understanding on the management of the Policy on incapacity Leave and ill Health Retirement (PILIR). Notwithstanding the fact that the implementation of Collective Agreement No. 8 of 2003 started a few years back, the Employer is continuously giving training on the Integrated Quality Management System (IQMS) and Whole Schools Evaluation (WSE), which focused on the School Self Evaluation (SSE) process and the School Improvement Plan (SIP) processes.

The challenges that the chamber faced during the period under review related to the cancellation of a few meetings. To ensure that non-achievement is addressed, Parties assessed the Chamber’s performance plan on a quarterly basis. Despite non-achievement in some areas of operation, Parties have managed to sustain a partnership approach in support of quality public education and service delivery. This was mainly done through the QLTC steering committee where issues were addressed to enhance the performance of education at public schools in the province.

The identifi ed objectives by chamber were successfully achieved. This is plausible as Parties were committed to ensuring that burning issues were addressed in the interest of all to enhance labour peace and improve the quality of learning and teaching in line with the QLTC principles.


Not Applicable.




4.3 Programme 3: Executive Services

Programme 3.1: Management, Intervention And Facilitation Services

Purpose

The purpose of Programme 3 is:

• To manage all the service divisions of the Council to ensure that stakeholders derive maximum value from all the activities of the Council and to intervene in order to circumvent labour unrest, nationally and provincially.

• To ensure the sound fi nancial and risk management of the Council.

• To ensure sound governance of the Council.

• To support continuous quantifi able productivity of knowledge eff orts internally.

• To build the corporate image of the ELRC.

Sub-programmes

• Facilitation Services

• Financial management, accounting and compliance services

• Communication services


• To promote cooperation and dialogue between key ELRC stakeholders to enhance the maintenances of labour peace through special interventions

• To ensure an unqualifi ed audit opinion and no repeat audit fi ndings

• To promote and coordinate dialogue with employees to develop and maintain internal communication.

• To coordinate external communication and marketing services by designing, implementing and maintaining systems to promote the image of the ELRC, complying with the Promotion of Access to Information Act and the PFMA, and to promote the image of the teaching profession.



Executive Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



Prevention of disputes and promoting, collaboration and collective bargaining

Capacity to prevent disputes is enhanced in collaboration with PEDs and unions; mediators are identifi ed


Training on dispute prevention and resolution was provided in all nine provincial chambers. Facilitation was done in the Eastern Cape, which resulted in the conclusion of Eastern Cape Collective Agreement No. 1 of 2012 – Appointment of Temporary Educators

None

Respond to requests by MECs, HODs and provincial trade union leadership for intervention and facilitation

Not Applicable Satisfi ed parties and minimal disruption to teaching and learning

Achieved

No requests were received from provincial departments

None

Financial management, accounting and compliance services

To ensure an unqualifi ed audit opinion and no repeat audit fi ndings

9 0 0 None


Executive Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Communication Services

Communication services

Two (2) New Negotiator

One (1) Labour Bulletin

• Compile regular newsletters on current developments in labour law and collective bargaining

• Conduct market research on the level of awareness among teachers regarding the services off ered by the Council and the quality of service off ered by the Media and Communications Department to clients

• Provide relevant information services

• Promote the image of the teaching profession. Generally promote fraternal relationships with all stakeholders

One New Negotiator and one (1) Labour Bulletin was published

Market research was conducted

Attended Education Week and World Teachers Day to market the Council

None



Management, Intervention and Facilitation Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013



Prevention of disputes and promoting, collaboration and collective bargaining



Training on dispute prevention and resolution was provided in all nine provincial chambers. Facilitation was done in the Eastern Cape, which resulted in the conclusion of Eastern Cape Collective Agreement No. 1 of 2012 – Appointment of Temporary Educators

None

Respond to requests by MECs, HODs and provincial trade union leadership for intervention and facilitation

Satisfi ed parties and minimal disruption to teaching and learning

No requests were received from provincial departments

None

Overview of the Executive Services Department’s performance for the 2012/13 fi nancial year

Dispute Prevention

The objective of Council in dispute prevention is to employ a proactive approach and intervene to resolve grievances, before they develop into disputes. Council provides training for practitioners, both panellists and Parties. Another mechanism put in place by the Council to prevent disputes is the establishment of Dispute Prevention Committees in all provincial chambers.

In engaging in dispute prevention activities, Council will always guard against taking the position of any of the parties involved in the grievance. This ensures that the Council’s neutrality and objectivity is maintained at all times.


The development of dispute resolution practitioners will continue to be an area of greater focus in the 2013/14 fi nancial year to improve on the effi ciencies relating to the prevention of disputes.

Facilitation and Intervention

Council recognises the impact of factors in the communities that impacts labour peace in education and necessitates intervention. These factors include displaced educators, violence and temporary educators.

Over the past few years Council provided intervention and facilitation, in the main in two provinces, namely KwaZulu-Natal and the Eastern Cape on displaced educators and appointment of temporary educators.

Council has set aside a budget for intervention and facilitation in the 2013/14 fi nancial year.

Strategies to overcome underperformance

Not Applicable




2012/13 2011/12

Programme Name

Budget Actual Expenditure


Budget Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Executive Services

7 216 3 972 3 244 14 526 6 175 8 351

Total 7 216 3 972 3 244 14 526 6 175 8 351


Programme 3.2: Financial And Risk Management (Compliance And Investigation Services)

Key Performance Measures

Financial and Risk Management


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Financial Management, Accounting and Compliance Services

To ensure an unqualifi ed audit opinion and no repeat audit fi ndings

9 0 0 None


Not Applicable.




Programme 3.3: Communication Services




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Compliance with PFMA

To compile quarterly reports in compliance with the PFMA, approved by the Accounting Authority and Executive Authority

To compile an annual report in compliance with the PFMA, approved by the Accounting Authority and Executive Authority

Four (4) quarterly reports

One (1) annual report





None

None




Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Publications

To compile the Labour Bulletin in association with Nelson Mandela Metropolitan University (NMMU) and UP2SPEED

To compile the New Negotiator on current developments in collective bargaining in the public education sector

To compile the ELRC staff newsletters to ensure staff is kept updated on ELRC activities

One (1) Labour Bulletin published

One (1) New Negotiator published

Eleven (11) Staff Newsletters published

Two (2) Labour Bulletins

Two (2) New Negotiators

Eleven (11)

One (1) Labour Bulletin

One (1) New Negotiator published

9 (nine)

One (1)

One (1)

Two (2)

Articles were collected for one publication during the 2012/13 fi nancial period, but could not be published due to urgent operational obligations. The Council resolved to publish four (4) issues in the 2013/14 fi nancial year.

Only one (1) New Negotiator was not published in the 2012/13 fi nancial years as no new developments could be reported on. The Council resolved to publish four (4) issues in the 2013/14 fi nancial year.

Only nine (9) issues were published during the 2012/13 fi nancial period, due to urgent operational obligations. This ojective will be achieved in the 2013/14 fi nancial year.


Overview of the Communication Services Department’s performance for the 2012/13 fi nancial year

The Communications Department achieved its objectives as set out in the Annual Performance Plan for 2012/13. The Council’s annual report and quarterly reports for the period under review were prepared and submitted in compliance with the PFMA. The staff newsletter and external publications (New Negotiator and Labour Bulletin) were also published during the period under review to promote dialogue with employees and keep stakeholders abreast of developments in collective bargaining and labour law, respectively.

The Communications Department also conducted a survey study during the period under review to determine if public schools in all provinces are aware of the Council’s existence and the services that it off ers. Ninety-one (91) schools were contacted in the nine provinces and only 36 schools were aware of the Council’s existence. Information was provided to 86 schools on the services that the Council off ers and these schools were added to the Council’s mailing list. The study proved worthwhile as it indicates that there are a great number of schools in the public education sector that are not aware of the valuable services that the Council off ers. School principals were contacted for this study and a follow-up study will be conducted in the 2013/14 fi nancial year to determine the level of awareness amongst teachers themselves and to ascertain how they rate the services that the Council off ers.

The ELRC participated in Education Week and World Teachers’ Day during the period under review.


New marketing strategies were identifi ed to intensify the Council’s marketing campaign in the 2013/14 fi nancial year. Community newspapers and radio stations in each province have been identifi ed to promote the Council in provinces and create awareness of the services that it off ers to educators. The Council will also market its services on social media platforms. The Council’s website will be enhanced in the 2013/14 fi nancial to improve navigation on the site and will have links to social media sites. The Council will also partner with education organisations like Somafco Trust, which is a South African youth development organisation that draws its inspiration from the history of Solomon Mahlangu Freedom College (SOMAFCO), a college which was established by the African National Congress (ANC) on land donated to it by the Tanzanian government in 1977. The SOMAFCO Trust empowers youth through its programs namely:

1. SOMAFCO Prize Initiative

2. SOMAFCO Dialogues

3. SOMAFCO Enterprise Development

The Council’s involvement in the project will serve a dual purpose. The Council representative (Media Offi cer) will be an adjudicator for the SOMAFCO annual Prize Initiative. This competition is geared at the youth and also South African schools. A culture of reading and writing is encouraged through the competition, contributing to the quality of learning in schools, as literacy is the stimuli for success in all subject areas. This will also generate exposure for the ELRC not only in South Africa, but also in African countries like Tanzania and Mozambique.

The New Negotiator and Labour Bulletin will be published on a quarterly basis in the 2013/14 fi nancial year.




4.4 Programme 4: Corporate Services

Purpose

The purpose of Programme 4 is to provide fi nancial, HR and administrative support to the core operational functions to deliver an effi cient and eff ective service on its mandates.

Sub-programmes

• Financial and accounting services

• Administration services which include Information Technology

• Mobilising employees services


• Maintain and improve fi nancial and administrative systems

• Procure goods and services within policies and guidelines

• Maintain good labour relations

• Train and develop staff

• Ensure a healthy and safe work environment

• Maintain and improve the premises and security systems respectively

• Provide reliable information technology and communication systems


Corporate Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Maintain and improve the fi nance and administrative systems

No adverse impact on the operations



None

Procure goods and services within policies and guidelines

No major disruption to operations



None

Maintain good labour relations

Two (2) Zero grievances Zero grievances None


Corporate Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Train and develop staff

55% of employees trained and developed

80% of employees trained and developed

60% 20% 60% of employees were trained.

20% were not trained as there was no workplace skills plan in place.

Ensure a healthy and safe work environment

Zero injuries at work



None

Maintain and improve the premises and security systems respectively

Four (4) break- ins on the premises resulting in theft of equipment

No major incident No major incident None

Provide reliable information technology and communication systems

Systems older than fi ve years

Systems older than fi ve years

80% 20% Due diligence report from the State Information Technology Agency (SITA) has detected areas that needs attention. Awaiting plan from SITA on the implementation of recommendations.


Corporate Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Maintain and improve the fi nance and administrative systems

Accounting systems in line with PFMA and GRAP

Not Applicable 100% 100% None


Corporate Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


90% of debt collected

100% 100% 0% 100% South African Revenue Service (SARS) debt reported to Auditor-General. Other debt pending fi nalisation of provident fund reconciliation.

Surplus funds invested in compliance with requirements


Procure goods and services within policies and guidelines

Supplier data base updated and approved

Not Applicable 100% 80% 20% Data base updated but not yet approved due to position of SCM manager not fi lled.

SCM practitioner trained

Not Applicable 100% 0% 100% SCM unit not established.

Ensure and maintain good labour relations

HR policies reviewed and updates approved

Not Applicable Review 2 times a year and approve changes

Not Achieved 100% The review is still residing with the HR committee.

HR plan Not Applicable Review, updated and implementation of plan

Not Achieved 100% HR Manager appointed in the last quarter of the fi nancial year.

Improve equity targets


Grievances and complaints investigated and resolved

0 0 0 None

Train and develop staff

Staff performance assessments completed

0% 90% 25% 75% Deadline not met due to Senior Management positions being vacant.


Corporate Services


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Training and development plan implemented

0% 80% 0% 100 % No HR plan in place.

Ensure a healthy and safe environment

No injuries reported

0 0 0 None

Three wellness days conducted

Not Applicable Three (3) Two (2) One (1) Position of HR Manager vacant for most of the year.

Maintain and improve the premises and security systems respectively

Adequate and timeous maintenance of building to prevent deterioration

Not Applicable Twice a year Twice a year None

Alterations completed according to management plans

Not Applicable 100% 0% 100% EXCO revised specifi cations of refurbishment. Task team to start process in the new fi nancial year.

No negative security incidents

100% 100% 75% 25% Theft incident reported in the fourth quarter.

Provide reliable information technology and communication systems

Council operations and programme fully supported

100% 100% 80% 20% Due diligence report from SITA has detected areas that needs attention. Awaiting plan from SITA on the implementation of recommendations.

The programme’s performance has contributed to the Council’s achievements for the period under review by providing support to the core operational functions to deliver on time an effi cient and eff ective service on its mandate.



The procurement function has not been meeting targets due to a lack of a SCM unit. The establishment of a SCM unit under the offi ce of the CFO is in the process of being established and all areas of underperformance will be addressed and eliminated.

In all cases of underperformance the real cause has been the slow process of fi lling vacant positions. The majority of vacant positions will be fi lled in the new fi nancial year and this will contribute towards an effi cient and eff ective administration programme.




2012/13 2011/12

Sub- programme name

Budget ActualExpenditure


Budget ActualExpenditure


R’000 R’000 R’000 R’000 R’000 R’000

Finance & Acc. Services

8 935 6 187 2 748 8 989 7 394 1 595

Mobilising employees

2 203 1 388 815

Total 11 138 7 575 3 563 8 989 7 394 1 595


4.5 Programme 5: Capital Expenditure

Purpose

The purpose of Programme 5 is to provide necessary capital resources to ensure eff ective and effi cient delivery of operations to Council to deliver on their mandate.


• Manage the property and assets of the Council with focus on increasing eff ectiveness, economy, transparency and integrity.

• Timeous procurement to be delivered.

Strategic objectives, performance indicators planned targets and actual achievements

Capital Expenditure


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Manage the property and assets of the Council

Not Applicable Property maintained on a regular basis

Not Achieved 100% EXCO revised specifi cations of refurbishment. Task team to start process in the new fi nancial year.

Timeous procurement to be delivered

Not Applicable Services not hampered due to non delivery

Services not hampered due to non delivery

None


Capital Expenditure


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Manage the property and assets of the Council with focus on increasing eff ectiveness, economy, transparency and integrity

Property maintained and repairs undertaken

Not Applicable 30% of plan completed

0% 100% EXCO revised specifi cations of refurbishment. Task team to start process in the new fi nancial year.


Capital Expenditure


Actual Achievement

2011/2012


Actual Achievement

2012/2013



2012/2013


Tenders advertised Not Applicable Fair, transparent tender and procurement process

Not Achieved 100% No procurement done over R500 000.

Timeous procurement to be delivered

Resources procured and are eff ective

Not Applicable Services not hampered due to non-delivery or procurement

Services not hampered due to non-delivery or procurement

None

The required resources for the procurement of the necessary assets were provided to support the operations of the Council.


The underperformance was due to a change in the terms of reference.


There were no changes to planned targets.


2012/13 2011/12

Programme Name

Budget Actual

Expenditure


Budget Actual

Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Capital Expenditure

7 464 292 7 172

Total 7 464 292 7 172


5. SUMMARY OF FINANCIAL INFORMATION

5.1 Revenue Collection

2012/13 2011/12

Sources of revenue

Estimate Actual

Amount Collected

(Over)/Under Collection

Estimate Actual

Amount Collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000

Levies 48 960 49 319 (359) 48 960 49 693 (733)

Total 48 960 49 300 (340) 48 960 49 693 (733)

Revenue from levies is collected through deductions from salaries of contributors through the Persal system and a corresponding contribution from the employer and transferred into the bank account of the ELRC on a monthly basis.

The plans for revenue are agreed upon by the parties to the council and the number of contributors are in line with the employer’s plans for the provisioning of staff , which plans are fi nalised through a consultative process. Deviations from the plan are mainly infl uenced by the number of temporary employees who are in turn dependent on the availability of resources.

There are no new measures to be instituted in the near future to raise additional revenue apart from the normal increases in levy contributions.

5.2 Programme Expenditure

2012/13 2011/12

Programme Name

Budget Actual

Expenditure


Budget Actual

Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


13 144 10 599 2 545 13 762 12 631 1 131


27 858 21 759 6 099 32 342 21 738 10 604

Executive Services

7 216 3 972 3 244 14 526 6 175 8 351

Corporate Services

11 138 7 575 3 563 8 989 7 394 1 595

Capital Expenditure

7 464 292 7 172

Total 66 820 44 197 22 623 69 619 47 938 21 681


5.3 Capital investment, maintenance and asset management plan

Not Applicable.


Not Applicable.


Not Applicable.

PART CGOVERNANCE


1. INTRODUCTIONThe overall performance of the Council for the 2012/13 fi nancial period does not refl ect signifi cant improvement as all the predetermined objectives as set out in the Annual Performance Plan were not met. However, as an intervention strategy to improve the performance of the Council and maintain a standard of satisfactory achievement, the Executive Committee convened an EXCO Lekgotla in December 2012, comprising of national and provincial leaders of parties. The objectives and outcomes of the EXCO Lekgotla were amongst others to review the mandate of Council, to identify the causes for non-performance and to address the slow process of fi nalising bargaining matters.

Five strategic goals were identifi ed:

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

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

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

Strategic Goal 4: To develop and implement a dispute prevention strategy.

Strategic Goal 5: To enhance good governance with the development and implementation of a risk management strategy, eff ective performance management of the organisation and an investment in human capital development.

The Executive Committee adopted the recommendations from the EXCO Lekgotla. A Management Plan was also adopted to implement these recommendations in the 2013/14 fi nancial year.

2. PORTFOLIO COMMITTEES Dates of Meetings:

ELRC Budget Review and Strategic Plan (2013-2015) and Annual Performance Plan (2013/14)

• Date of meeting: 13th March 2013

ELRC Annual Report Briefi ng for 2011/12

• Date of meeting: 11 October 2012

3. EXECUTIVE AUTHORITYThe following reports were submitted to the Executive Authority during the period under review:

Quarterly Reports 2012/2013

• 1st Quarter Report submitted on 1st August 2012

• 2nd Quarter Report submitted on 31st October 2012

• 3rd Quarter Report submitted on 30th January 2013

• 4th Quarter Report submitted on 6th May 2013

ELRC Strategic Plan (2013 to 2015) and Annual Performance Plan (2013/14)

• Submitted on 23rd January 2013

Annual Report 2011/12

• Submitted on 31st August 2012


4. THE ACCOUNTING AUTHORITY

Committees

Committee No. of meetings held No. of members Name of members

Executive Committee 16 10 Department of Basic EducationMr S GeyerMr A W KutumelaMr R PretoriusMr S FakerMs K J Moshotle

SADTUMr N DolopiMr M GaloraleMs J Peane

CTU-ATUMr H HendricksMr D Lerm

Audit Committee (new) 3 5 Ms T G MoeengMr M MahongaMr S Z HlopheMr M MalulekeMr N Maluleka

Audit Committee (old) 3 5 Mr Z MyesaMs N SondloMs M NkomoMs L MotshwaneMs K Mahlangu

Finance Sub Committee 5 10 Department of Basic EducationMs S GeyerMr S TshabalalaMr M MahlareMr A W Kutumela

SADTUMr M GaloraleMr J PeaneMr M Jacobs

CTU-ATUMr D LermMr W SmithMr Z Sinuka


Committee No. of meetings held No. of members Name of members

Human Resources Sub Committee

12 8 Department of Basic EducationMs L MundayMr N NgcoboMr M V Seshibe

SADTUMr M GaloraleMr B ShanduMr S Thwala

CTU-ATUMr O LebepeMr Z Sinuka

Legal Sub Committee 3 9 Department of Basic EducationMs S GeyerMr C LeukesMr S TshabalalaMr R PretoriusMr A W Kutumela

SADTUMr D HeradienMr F Ntathu

CTU-ATUMr D LermMr C Scorgie

Remuneration of board / committee members

Members of committees receive no remuneration.

5. RISK MANAGEMENTThe ELRC has a Risk Management Policy to ensure that risks are managed in a coordinated and systematic manner in line with National Treasury guidelines and generally accepted standards.

The entity is in the process of developing a risk management strategy and implementation plan. A fraud prevention plan has been developed and was updated during the year under review.

A risk assessment workshop for management was held during the year under review where the identifi cation, categorisation and ranking was completed. Detailed operational risk registers were also developed.

Managers are responsible for addressing the identifi ed risks and report regularly to the Management Committee on progress made. Risk management is a standing item on the agenda of the committee.


6. INTERNAL CONTROL UNITInternal control is the responsibility of management and used as a tool to monitor, assess and ensure adherence to prescribed management policies and procedures in order to achieve the objectives and goals of the organisation.

The following objectives were achieved during the year under review:

• Ensuring the reliability and integrity of both fi nancial and performance information;

• Promotion of eff ective and effi cient operations;

• Safeguarding of assets; and

• Ensuring compliance.

7. INTERNAL AUDIT AND AUDIT COMMITTEES

Internal Audit

Internal audit is responsible for the overall preparation and execution of the audit plan and for coordinating the internal audit service. It therefore evaluates and contributes to the improvement of risk management, internal control and governance systems.

The scope of work and coverage is approved by the Audit Committee and contained in the annual internal audit plan.

A risk-based audit methodology was adopted in conducting the internal audit for the 2012/13 fi nancial year and the scope covered the following areas:

• HRM and Payroll

• Dispute Resolution

• Revenue Management

• Fixed assets

Audit Committee

The committee of the ELRC is independent and fulfi ls a vital role in corporate governance by, amongst others, ensuring the integrity of integrated reporting and internal fi nancial controls and the management of risk.

The Audit Committee complies with its responsibilities arising from the PFMA and Treasury Regulations and has adopted appropriate formal terms of reference as its charter.

The audit committee meets at least four times a year and hold offi ce for three years. The year under review is its fi rst year in offi ce having been appointed at the AGM in August 2012.

The Audit Committee has discharged its responsibilities in terms of its charter and section 38(1)(a) of the PFMA and Treasury Regulation 3.1.13 and 27(1)(10).


The table below discloses relevant information on the audit committee members:

Name Qualifi cations Internal or external

If internal, position in the public

entity

Date appointed

Date Resigned

No. of Meetings attended

Mr Z Myeza MBAB COM (Accounting and Auditing)

External 14 August 2008 26 July 2012 3

Ms N Sondlo • B.Com – Fort Hare

• B. Com Honours in Industrial Pyschology – Fort Hare

• B. Com Honours in Accounting – University of KZN

• CA (SA)


Ms M Nkomo • B Comm. - University of South Africa - 1988

• B Comm. Honors – University of South Africa - 1990

• Senior Executive Program – Harvard University and

• University of the Witwatersrand – 2000

• M Com Organisational Strategy – University of KwaZulu-Natal - 2009


Ms L Motshwane Representing SADTU External 27 July 2011 26 July 2012 3

Ms K Mahlangu External 14 August 2008 26 July 2012 1

Ms T G Moeeng • B. Iuris Degree

• LLB

• Post Graduate Programme in Executive Development (Public Management and Administration)

• Advanced Management Development Programme

External 16 August 2012 Not Applicable

3


Name Qualifi cations Internal or external

If internal, position in the public

entity

Date appointed

Date Resigned

No. of Meetings attended

Mr S Z Hlophe • Masters in (MBL)

• Bcom Honours (ACC)

• National Diploma Cost and Management Accounting


1

Mr M Mahonga • Diploma in Business Studies

• Higher Diploma Tax Law

• Forensic Investigation Certifi cate

• Labour Law Certifi cate

• Advanced Certifi cates Labour Law

• Certifi cate in Internal Auditing & Internal Controls

• Financial Management Diploma

• Certifi cate in Fraud Investigation


3

Mr M Maluleke Representing SADTU 16 August 2012 3

Mr N Maluleka Representing the Employer

16 August 2012 2

8. COMPLIANCE WITH LAWS AND REGULATIONSThe Audit Committee monitors, on a quarterly basis, compliance with laws and regulations as part of the quarterly review of the performance of the entity.

9. FRAUD AND CORRUPTION A Fraud Prevention Plan (FPP) for the ELRC has been revised at the time that a risk assessment was done. A fraud and corruption policy statement exist and is signed by the Accounting Offi cer.

A tasks and responsibilities matrix for implementation of the FPP has been developed with components and areas. A fraud prevention strategy still has to be developed and approved.

10. MINIMISING CONFLICT OF INTERESTAt the beginning of each calendar year all staff are required to sign a declaration form on confl ict of interest.


11. CODE OF CONDUCT The employee is obliged to immediately report, to the Accounting Offi cer, the following acts of fellow employees, offi cials and/or representatives of Council and/or any other person;

• Theft

• Fraud

• Malicious damage to COUNCIL property

• Abuse of COUNCIL property or facilities

• Other criminal act/s

If the acts as contemplated above apply to the conduct of the Accounting Offi cer, then the employee is obliged to report such to the Executive Committee of Council. Other than the Acts above, the employee accepts that the General Secretary is the Accounting Offi cer of the Secretariat and shall, upon instruction of the Accounting Offi cer and/or Council, account for any function of the Secretariat to a prescribed forum.

An employee who will be found to have breached the ELRC’s Code of Conduct will face disciplinary action as set out in the HR Policy.

12. HEALTH SAFETY AND ENVIRONMENTAL ISSUESOccupational health and safety in the ELRC is aimed at the promotion and maintenance of the physical health of employees, the protection of workers in their employment from risks resulting from factors adverse to health and the placing and maintenance of the worker in an occupational environment adapted to their physiological and psychological capabilities.

The main focus in occupational health is on three diff erent objectives: (i) the maintenance and promotion of workers’ health and working capacity; (ii) the improvement of the work environment to become conducive to safety and health and (iii) the development of work organisations and working cultures in a direction which supports health and safety at work, and in doing so also promotes a positive social climate and smooth operation and may enhance productivity.

13. COMPANY/BOARD SECRETARY Not Applicable.

14. SOCIAL RESPONSIBILITYThe entity does not have a policy on social responsibility. However, staff members are encouraged to participate in activities of social responsibility. During the year under review a home was identifi ed in a township in Pretoria and donations were made.


15. AUDIT COMMITTEE REPORTWe are pleased to present our report for the fi nancial year ended 31 March 2013. The Audit Committee commends the management and staff of the ELRC for their eff orts in improving the performance of the entity to achieve its organisational goals.

Audit Committee Members and Attendance

The Audit Committee consists of the members listed hereunder and meets at least four times per annum as per its approved terms of reference. During the current year, fi ve (5) meetings were held.

NAME OF MEMBER DATE OF APPOINTMENT

MEETINGS MEETINGS

Scheduled Attended

Mr. Z Myeza Chairperson (Member) August 2008 3 3

Ms. L Motshwane Member July 2011 3 3

Ms. K Mahlangu Member April 2008 3 1

Ms. M Nkomo Member August 2008 3 3

Ms. N Sondlo Member April 2008 3 2

NAME OF MEMBER DATE OF APPOINTMENT MEETINGS MEETINGS

Scheduled Attended

Ms T Moeeng Chairperson (Member) August 2012 2 2

Mr M Maluleke Member August 2012 2 2

Mr M Mahonga Member August 2012 2 2

Mr S Z Hlophe Member August 2012 2 1

Mr N Maluleka Member August 2012 2 2

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from section 38(1) (a) of the PFMA and Treasury Regulations 3.1.13 and 27(1) (10). The Audit Committee also reports that is has adopted appropriate formal terms of reference as its Audit Committee charter, has regulated its aff airs in compliance with this charter and has discharged its responsibilities as contained therein.


The Effectiveness of Internal Control

Our review of the fi ndings of the Internal Audit work, which was based on the risk assessment conducted, and found weaknesses in the following areas:-

1. Supply Chain Management.

No SCM unit

2. Strategic Objectives

Lack of achievement of strategic objectives

The following internal audit work was completed during the year under review:

1. Supply Chain Management

2. Collective Bargaining

3. PFMA Compliance

4. Financial Management systems


The following fi ndings were made:

1. Supply Chain ManagementPayments not made within 30 daysDefi ciencies in declaration of interest formsSeparate SCM unit not established under the offi ce of the CFOOutdated supplier SBD4 formsNo contracts register in placeThree quotations not obtainedInsuffi cient supporting documents

2. Collective BargainingLack of review of the Committee Work Procedures

3. PFMA ComplianceBank reconciliations not conducted on a weekly basisRisk Management strategy not communicated to staff members

4. Financial Management systemsImprovement identifi ed in fi nancial processes

5. Strategic Objectives PaymentLack of achievement of strategic objectives.


In-Year Management and Quarterly Report

The entity has submitted quartley reports to the Executive and the Audit Committee has reviewed such reports.

Evaluation of Financial Statements

The Audit Committee did:

• review the audited annual fi nancial statements prepared by the entity.

• review and discuss the unaudited annual fi nancial statements to be included in the annual report, with the Auditor-General and the Accounting Offi cer.

• review of any changes in accounting policies and practices.

• review of the information on predetermined objectives to be included in the annual report.

• review of signifi cant adjustments resulting from the audit.

• review the Annual Report.

• review the Auditor-General’s report.

Auditor’s Report

We have reviewed the entity’s implementation plan for audit issues raised in the prior year and we are satisfi ed that the matters have been adequately resolved except for the issues relating to the following:

1. Supply Chain Management

2. Collective Bargaining

3. PFMA Compliance

4. Financial Management systems


The Auditor-General Mangement Report

The management report of the Auditor-General was reviewed and an expenditure incurred without appropriate supporting documentation was noted. The Auditor-General reported that the entity does not have supporting documentation to verify that an expenditure to the amount of R46 909.36 related to the business of the ELRC. The validity of the expenditure remains unconfi rmed and the matter will be followed-up in the next fi nancial year.


Conclusion and Finding

1. The Audit Committee impress upon the Governing Body, EXCO, to, without delay, implement the outcome of the investigation report on the forensic audit conducted in relation to the expenditure incurred without appropriate supporting documentation by the entity to the amount of R46 909.36.

2. The Audit Committee concurs and accepts the Auditor-General of South Africa’s conclusions on the annual fi nancial statements and is of the opinion that the audited annual fi nancial statements be accepted and read together with the report of the auditor.

Recommendation

The Audit Committee recommends for the adoption of audited fi nancial statements and the Annual Report by EXCO.

________________________________

Ms T Moeeng, Chairperson of the Audit Committee

Date: 08 August 2013

PART DHUMAN RESOURCE MANAGEMENT


1. INTRODUCTION The knowledge and experience that employees bring to their work is the greatest driver of an organisation’s success. What employees know helps to build an organisation as well as to preserve, maintain and improve it. Employees are part of an organisation’s productive capacity, because the future of the organisation depends on what they know rather than what the organisation owns. An organisation is intimately tied to the knowledge and experience of its employees.

Overview of the Human Resources Department’s performance for the 2012/13 fi nancial year

The Human Resources report summarises the employment relations activities of the ELRC during the period 1 April 2012 to 31 March 2013. Human Resource issues include: recruitment, resignations (turnover), vacancies, employment equity, and personnel expenditure, training expenditure, skills development and labour relations.

The Council has 70 positions on the approved establishment and 58 funded positions. Due to cost implications, during the fi nancial year 2012/13, the Accounting Authority of the ELRC mandated the Human Resource Sub-Committee to review the organisational structure. This will be undertaken through a process of work-study, job evaluation and job grading exercises, utilising the EQUATE system of the public service. The review shall consider job creation, critical skills and positions required by the ELRC to effi ciently and eff ectively utilise its human capital to deliver on its various program objectives. The ELRC has appointed a service provider, who will conduct the work-study, job evaluation and job grading project.

Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce is based on the premise that our organisation can be staff ed more effi ciently if we forecast our talent needs as well as the actual talent supply that is or will be available. The ELRC has therefore taken a decision to employ training and development, recruitment and selection, performance management and succession planning strategies as retention drivers to reduce the natural attrition rate.

All staff in the ELRC have developed performance standards and agreements in collaboration with their Managers/Senior Managers. The objective of the performance management framework is to assist the ELRC to achieve sustainable improvements in servicing the Education Sector.

The Council recognizes that employees may experience personal or social problems which may adversely aff ect their job performance and/or health. During the fi nancial year 2012/13, the ELRC conducted two wellness days in the fi rst and third quarters.

The ELRC’s policies are currently being reviewed and this will ensure that we address our organisation’s evolving mission and goals, as well as changing workforce trends, economic conditions and legislation. During the fi nancial year 2012/13 the HR, communication, hardware and software policies were developed to ensure that employees are guided through standard operating procedures in the ELRC.

The HR Department is facing challenges when it comes to the interpretation of the HR Policy due to the fact that the HR policy has been silent on some issues. The ELRC will implement an induction and re-orientation program that will sensitise employees and management of the organisational policies and procedures.

The future goal of the HR Department is to adopt and implement the concept of talent management, which will assist in the recruitment and retention of employees within the Council.


2. HUMAN RESOURCE OVERSIGHT STATISTICS

Personnel expenditure for the fi nancial year 2012/2013.

Personnel Cost by programme

Programme Total

Expenditure for the entity (R’000)

Personnel Expenditure

(R’000)

Personnel exp. as a % of total exp.

(R’000)

No. of employees

Average personnel cost per employee

(R’000)


21759 6678 45% 21 318

Dispute Resolution 10599 2608 18% 5 522

Corporate Services 7575 3178 22% 10 318

Executive Services 3972 2184 15% 7 364

Total 43905 14648 100% 43 349

Personnel cost by salary band

Level Personnel Expenditure (R’000)

% of personnel exp. to total personnel

cost (R’000)

No. of employees

Average personnel cost per employee

(R’000)

Top Management 2074 14% 2 1037

Senior Management 1676 12% 0 0

Professional qualifi ed 3311 22% 13 276

Skilled 3972 27% 21 189

Semi-skilled 3200 22% 4 800

Unskilled 415 3% 3 138

Total 14648 100% 43 349

Performance Rewards

Programme Performance rewardsPersonnel Expenditure

(R’000)

% of performance rewards to total personnel cost

(R’000)

Top Management R 42,258.00 2074 0,3%

Senior Management R 64,415.00 1676 0,4%

Professional qualifi ed R 160,444.00 3311 1,1%

Skilled R 82,610.00 3972 0,6%

Semi-skilled R 78,927.00 3200 0,5%

Unskilled R 0.00 415 0%

Total R 428,654.00 14648 2,9%


Training Costs

Directorate/ Business Unit

Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Training Expenditure as a % of Personnel

Cost.No. of employees

trainedAvg training cost

per employee

Executive Services 2184 41 2% 3 13,7

Collective Bargaining 6678 64 1% 10 6,4

Corporate Support 3178 10 0% 3 3,3

Dispute Resolution & Prevention 2608 70 1,3% 5 14

Totals 14648 185 1,3% 21 8,8

Employment and vacancies

Employment levels per program

Programme2011/2012

No. of Employees2012/2013

Approved Posts2012/2013

No. of Employees

2012/2013

Vacancies% of vacancies

Executive Offi ce 5 15 7 8 53%


20 29 21 8 28%

Corporate Support 11 16 10 7 44%

Dispute Resolution & Prevention

7 10 5 5 50%

Total 43 70 43 28 40%

Employment and vacancies per level

Programme2011/2012

No. of Employees

2012/2013 Approved

Posts

2012/2013No. of

Employees

2012/2013

Vacancies% of vacancies

Top Management 3 3 2 1 33%

Senior Management

3 5 0 5 100%

Professional qualifi ed

12 23 13 10 43%

Skilled 19 29 21 10 34%

Semi-skilled 3 4 4 1 25%

Unskilled 3 6 3 1 17%

Total 43 70 43 28 40%


The Council has advertised all Senior Management and highly skilled supervision positions. Whilst all critical position are in the process of being fi lled, some internal staff members have been given an opportunity to act in such position, which will enable them to gain experience in such levels and better position them to compete for the advertised position. The Council currently does not have a succession planning strategy in place which makes it diffi cult to identify, develop and nurture internal potential successors for positions that become vacant.

The Council has drafted a recruitment and retention strategy, which will be tabled for approval by the Executive Committee in an eff ort to ensure that the Council has a good talent pool to succeed in positions that may become vacant in future. The turnaround time for fi lling critical vacancies in the Council is three months, which is the time that is required to complete the administrative requirements before the employee’s commencement date. The other positions have been vacant for a period of three years pending the fi nalisation of the work-study, job evaluation and job grading process, following which all positions will be fi nalised.

Employment changes

Information on changes in employment over the fi nancial year. Turnover rates provide an indication of trends in employment profi le of the ELRC.

Salary Band Employment at beginning of period

Appointments Terminations Employment at end of the period

Top Management 3 1 2 2

Senior Management 3 0 3 0

Professional qualifi ed 12 3 2 13

Skilled 19 2 0 21

Semi-skilled 3 1 0 4

Unskilled 3 0 0 3

Total 43 7 7 43

Reasons for staff leaving

Reason Number % of total no. of staff leaving

Death 0 0%

Resignation 7 8%

Dismissal 0 0%

Retirement 0 0%

Ill health 0 0%

Expiry of contract 0 0%

Other 0 0%

Total 7 8%

The number of resignations that were received was due to better remuneration off ered by other employers in the market and career progression. All critical positions that were vacated in the fi nancial year 2012/13 have been advertised and are in the process of being fi lled.


Labour Relations: Misconduct and disciplinary action

Nature of disciplinary Action Number

Verbal Warning 0

Written Warning 1

Final Written warning 0

Dismissal 0

Total 1

Equity Target and Employment Equity Status

Levels MALE

African Coloured Indian White

Current Target Current Target Current Target Current Target

Top Management 1 0 0 0 0 0 0 0

Senior Management 0 0 0 0 0 0 0 0

Professional qualifi ed 6 0 0 0 1 0 0 0

Skilled 7 0 0 0 1 0 0 0

Semi-skilled 2 0 0 0 0 0 0 0

Unskilled 2 0 0 0 0 0 0 0

Total 18 0 0 0 2 0 0 20

Levels FEMALE

AFRICAN COLOURED INDIAN WHITE

Current Target Current Target Current Target Current Target

Top Management 1 0 0 0 0 0 0 0

Senior Management 0 0 0 0 0 0 0 0

Professional qualifi ed 3 0 1 0 0 0 1 0

Skilled 8 0 2 0 2 0 1 0

Semi-skilled 2 0 0 0 0 0 0 0

Unskilled 1 0 0 0 0 0 0 0

Total 15 0 3 0 2 0 2 22

Levels Disabled Staff

Male Female

Current Target Current Target

Top Management 0 0 0 0

Senior Management 0 0 0 0

Professional qualifi ed 1 1 0 0

Skilled 0 0 0 0

Semi-skilled 1 1 1 1

Unskilled 0 0 0 0

Total 2 2 1 1

PART EFINANCIAL INFORMATION


1. STATEMENT OF RESPONSIBILITY

Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2013

In my opinion, the fi nancial statements fairly refl ect the operations of the public entity for the fi nancial year ended 31 March 2013.

The external auditors are engaged to express an independent opinion on the AFS of the public entity.

The Education Labour Relations Council annual fi nancial statements for the year ended 31 March 2013 have been audited by the external auditors and their report is presented on page 128.

The Annual Financial Statements of the public entity set out on page 131 to page 152 have been approved.


Ms D SekabateELRC Chairperson


2. REPORT OF THE ACCOUNTING OFFICER

General fi nancial review of the public entity The 2013 fi nancial year experienced an improvement in the achievement of performance objectives mainly due to eff ective leadership, ethical business practices and good governance in enhancing the interests of the Council. Targets set for revenue were achieved and the entity did not incur a defi cit. The fi nancial performance was satisfactory and the entity will remain sustainable for the foreseeable future.

Spending trends of the public entity The overall spending has come down from the previous fi nancial year and ended the year under review in underspent and surplus territory.

The trend in dispute management decreased in line with the decrease in the number of events conducted. It must be noted that the spending cannot be predicted with much accuracy since the number of disputes referred is diffi cult to forecast and outside the control of Council.

The entity applied to roll over surplus funds and approval was obtained

Supply chain managementThere were no unsolicited bid proposals for the year under review. The entity did not have a dedicated SCM unit through which all procurement takes place. This resulted in some challenges relating to compliance with legislation. The entity is in the process of establishing this unit in order to address defi ciencies experienced and ensure that proper SCM processes and systems are in place.

Audit report matters in the previous yearManagement is satisfi ed with the progress made in addressing audit report fi ndings. Except for matters relating to SCM, all others were either implemented or are in progress.

Economic Viability Overall, the fi nancial health of the Council is in a healthy situation. No defi cit was incurred, net cash fl ows from operating activities were positive, creditor payment period is below the legislated norm and a net current asset position was realised.

AppreciationThe achievements of the ELRC during the year under review would not have been possible without the support of parties, and the hard work of management and staff . I thank everyone for their invaluable contribution.

The year ahead promises to be another challenging and rewarding one and I look forward to working together as we take the Council to new heights.

Ms NO FocaAccounting Offi cerDate: 08 August 2013


3. REPORT OF THE EXTERNAL AUDITOR

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE EDUCATION LABOUR RELATIONS COUNCIL

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the fi nancial statements of the Education Labour Relations Council (ELRC) set out on pages 131 to 152, which comprise the statement of fi nancial position as at 31 March 2013, the statement of fi nancial performance, statement of changes in net assets and the cash fl ow statement for the year then ended, and the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Accounting Authority’s responsibility for the fi nancial statements

2. The accounting authority is responsible for the preparation and fair presentation of these fi nancial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa ,1999 (Act No. 1 of 1999) (PFMA) , and for such internal control as the accounting authority determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. My responsibility is to express an opinion on these fi nancial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

5. I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of the Education Labour Relations Council at 31 March 2013 and its fi nancial performance and cash fl ows for the year then ended in accordance with SA Standards of GRAP and the requirements of the PFMA.


REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

7. In accordance with the PAA and the general notice issued in terms thereof, I report the following fi ndings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

8. I performed procedures to obtain evidence about the usefulness and reliability of information as set out on pages 22 to 104 of the annual report.

9. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defi ned, verifi able, specifi c, measurable and time bound) and relevant as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately refl ects the facts (i.e. whether it is valid, accurate and complete).

10. There were no material fi ndings on the annual performance report concerning the usefulness and reliability of the information.

Additional matters

11. I draw attention to the matters below. These matters do not have an impact on the audit fi ndings on predetermined objectives reported above.

Achievement of planned targets

12. As disclosed in the annual performance report, 59 of the 200 targets planned for the year were not achieved during the year under review. This represents 30% of the total planned targets that were not achieved during the year under review. This was mainly due to the fact that appropriate indicators and targets were not developed during the strategic planning process and the institution did not consider relevant systems and evidential requirements during the annual strategic planning process.

Compliance with laws and regulations

13. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key applicable laws and regulations as set out in the general notice issued in terms of the PAA are as follows :

Procurement and Contract Management

14. Goods and services of a transaction value above R500 000 were procured without inviting competitive bids as per the requirements of TR 16A.6.4 and PN 8 of 2007/08, resulting in irregular expenditure.

Procurement process – Quotations

15. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by Treasury Regulation 16A6.1.

Revenue management

16. The levy income not collected from the Further Education and Training (FET) colleges constitutes non-compliance in terms of the founding agreement, dated 9 June 2009, section 4(11) to (18) and PFMA sections 51(1) (b) (I) and 51(2).


Internal control

17. I considered internal control relevant to my audit of the fi nancial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the signifi cant defi ciencies that resulted in the fi ndings on compliance with laws and regulations included in this report.

Leadership

18. The public entity has not established a separate SCM unit under the offi ce of the Chief Financial Offi cer (CFO), with the relevant skills and experience. As a result, numerous instances of irregular expenditure and non-compliance with SCM legislation have occurred.

19. Action plans have not been implemented by management to address the defi ciencies in SCM and this has resulted in recurring irregular expenditure.

Governance

20. The accounting authority did not adequately monitor compliance with laws and regulations. As a result, the risks relating to procurement were not regularly evaluated and numerous instances of irregular expenditure and non-compliance with other SCM requirements have consequently occurred. Internal and external audit recommendations were not adequately monitored, which has led to recurring fi ndings.

Pretoria 31 July 2013


4. ANNUAL FINANCIAL STATEMENTS

EDUCATION LABOUR RELATIONS COUNCIL(Registration number LR2/6/6/110)

FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2013


Education Labour Relations Council

Financial Statements for the year ended 31 March 2013

Index Page

Statement of Responsibility for the year ended 31 March 2013 133

Statement of Financial Position as at 31 March 2013 134

Statement of Financial Performance for the year ended 31 March 2013 135

Statement of Changes in Net Assets for the year ended 31 March 2013 136

Cash Flow Statement for the year ended 31 March 2013 137

Accounting Policies 138 - 141

Notes to the Financial Statements for the year ended 31 March 2013 142 - 151

Detailed Income statement 152


Education Labour Relations CouncilFinancial Statements for the year ended 31 March 2013

STATEMENT OF RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31MARCH 2013

The Accounting Authority is responsible for the preparation of the public entity’s annual fi nancial statements and for the

judgements made in this information.

The Accounting Authority is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the annual fi nancial statements.

In my opinion, the fi nancial statements fairly refl ect the operations of the public entity for the fi nancial year ended 31 March 2013.

The external auditors are engaged to express an independent opinion on the AFS of the public entity.

The Education Labour Relations Council annual fi nancial statements for the year ended 31 March 2013 have been audited by the external auditors and their report is presented on page 128.

The Annual Financial Statements of the public entity set out on page 131 to page 152 have been approved.

_________________________ _________________________

NO Foca MD SekabateAccounting Offi cer Chairperson of Council



Statement of Financial Position as at 31 March 2013Figures in Rand Notes 2013 2012

ASSETS

Current AssetsTrade and other receivables 5 2 188 966 537 350Cash and cash equivalents 6 109 748 930 95 814 355

111 937 896 96 351 705

Non-Current AssetsProperty, plant and equipment 2 6 592 076 7 071 232Intangible assets 3 236 804 285 948

6 828 880 7 357 180Total Assets 118 766 776 103 708 885

LIABILITIES

Current LiabilitiesOperating lease liability 4 59 932 69 939Trade and other payables 8 50 389 177 46 047 760Provisions 7 1 187 993 825 021

51 637 102 46 942 720Total Liabilities 51 637 102 46 942 720Net Assets 67 129 674 56 766 165

NET ASSETSFundsBuilding reserve fund 7 185 918 7 185 918Capital reserve fund 1 376 649 1 376 649Dispute resolution fund 5 000 000 1 644 530Training & development and research 3 382 538 3 382 538Current Funds 50 184 569 43 176 530Total Net Assets 67 129 674 56 766 165



STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2013Figures in Rand Notes 2013 2012

Levies 9 49 318 954 49 692 528Other income 3 385 -Operating expenses (23 908 295) (25 983 064)Arbitration and mediation (5 349 285) (6 444 430)Staff cost (14 647 634) (15 509 728)Operating surplus 10 5 417 125 1 755 306Interest income 11 4 946 384 4 491 607Surplus for the year 10 363 509 6 246 913

Attributable to:Owners of the controlling entity 10 363 509 6 246 913


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5 00

0 00

03

382

538

16 9

45 1

0550

184

569

67 1

29 6

74



CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2013Figures in Rand Notes 2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES

ReceiptsLevies 49 300 373 49 684 433Investment income 4 946 384 4 491 607

54 246 757 54 176 040

PaymentsEmployee costs (14 554 796) (15 127 615)Suppliers (25 494 516) (24 485 163)

(40 049 312) (39 612 778)

Net cash flows from operating activities 14 14 197 445 14 563 262

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment 2 (275 325) (338 304)Proceeds from sale of property, plant and equipment 2 29 162 21 866Purchase of other intangible assets 3 (16 553) (61 666)

Net cash flows from investing activities (262 716) (378 104)

Net increase/(decrease) in cash and cash equivalents 13 934 729 14 185 158Cash and cash equivalents at the beginning of the year 95 814 355 81 629 196

CASH AND CASH EQUIVALENTS AT END OF YEAR 6 109 749 084 95 814 354



ACCOUNTING POLICIES

1. Presentation of Annual Financial Statements

The annual financial statements have been prepared in accordance with the Standards of Generally RecognisedAccounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting StandardsBoard.

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance withhistorical cost convention unless specified otherwise. They are presented in South African Rand.

These accounting policies are consistent with the previous period.

1.1 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in theproduction or supply of goods or services, or for administrative purposes, and are expected to be used during more thanone period.

The cost of an item of property, plant and equipment is recognised as an asset when:it is probable that future economic benefits or service potential associated with the item will flow to the entity; andthe cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset tothe location and condition necessary for it to be capable of operating in the manner intended by management. Tradediscounts and rebates are deducted in arriving at the cost.

Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost totheir residual values over their estimated useful lives, as follows:

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Useful lifeBuildings 25 yearsFurniture and fittings 10 yearsMotor vehicles 7 yearsOffice equipment 8 yearsComputer equipment 8 yearsOther fixed assets 8 years

The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reportingdate. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no furthereconomic benefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficitwhen the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipmentis determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.



ACCOUNTING POLICIES

1.2 Intangible assets

An asset is identified as an intangible asset when it:is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged,either individually or together with a related contract, assets or liability; orarises from contractual rights or other legal rights, regardless whether those rights are transferable or separatefrom the entity or from other rights and obligations.

An intangible asset is recognised when:it is probable that the expected future economic benefits or service potential that are attributable to the asset willflow to the entity; andthe cost or fair value of the asset can be measured reliably.

Intangible assets are initially recognised at cost.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful lifeComputer software 8 years

Intangible assets are derecognised:on disposal; orwhen no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between thedisposal proceeds and the carrying amount and is included in surplus or deficit when the item is derecognised.

1.3 Financial instruments

Classification

The entity has the following types of financial assets as reflected on the face of the statement of financial position or in thenotes thereto:

Class CategoryTrade and other receivables Financial asset measured at fair valueCash and cash equivalents Financial asset measured at fair value

The entity has the following types of financial liabilities as reflected on the face of the statement of financial position or inthe notes thereto:

Trade and other payables Financial liability measured at fair value

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the ELRC becomes aparty to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directlyattributable to the acquisition or issue of the financial asset or financial liability.



ACCOUNTING POLICIES

1.3 Financial instruments (continued)

Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories:Financial instruments at fair value.Financial instruments at amortised cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value isrecognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus ordeficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets

The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or groupof financial assets is impaired.

If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, theamount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimatedfuture cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s originaleffective interest rate. The carrying amount of the asset is reduced directly or through the use of an allowance account. Theamount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to anevent occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly or byadjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that exceeds whatthe amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. Theamount of the reversal is recognised in surplus or deficit.

Presentation

Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense insurplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue orexpense in surplus or deficit.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial positionwhen the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on anet basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset thetransferred asset and the associated liability.


1.4 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A leaseis classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The differencebetween the amounts recognised as an expense and the contractual payments are recognised as an operating lease assetor liability.

1.5 Provisions

Provisions are recognised when:the entity has a present obligation as a result of a past event;it is probable that an outflow of resources embodying economic benefits or service potential will be required tosettle the obligation; anda reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation atthe reporting date.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if itis no longer probable that an outflow of resources embodying economic benefits or service potential will be required, tosettle the obligation.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating deficits.

1.6 Revenue

The levy income is recognised when it is probable that future economic benefit will flow to the ELRC and these benefits canbe measured reliably. This occurs when the department of basic education (DBE) either makes a payment to the ELRC orwhen the money is due as per collective agreement section 4(1)(b).

Interest income is accrued on a time proportion basis, taking into account the principal outstanding and the effective interestrate over the period to maturity.

1.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonablecare been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financialperformance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature ofthe expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.8 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred incontravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or(c) any provincial legislation providing for procurement procedures in that provincial government.


ACCOUNTING POLICIES



Notes to the Financial Statements for the year ended 31 March 2013Figures in Rand 2013 2012

2. PROPERTY, PLANT AND EQUIPMENT

2013 2012Cost /

ValuationAccumulateddepreciation

andaccumulatedimpairment

Carrying value Cost /Valuation

Accumulateddepreciation


Carrying value

Land 1 000 000 - 1 000 000 1 000 000 - 1 000 000Buildings 8 740 006 (4 682 709) 4 057 297 8 729 657 (4 335 792) 4 393 865Furniture and fittings 2 213 686 (2 061 799) 151 887 2 212 059 (2 034 236) 177 823Motor vehicles 151 421 (151 421) - 151 421 (151 421) -Office equipment 2 440 393 (2 020 681) 419 712 2 322 538 (1 947 222) 375 316Computer equipment 3 216 616 (2 267 240) 949 376 3 107 003 (1 999 717) 1 107 286Other fixed assets 167 509 (153 705) 13 804 167 509 (150 567) 16 942Total 17 929 631 (11 337 555) 6 592 076 17 690 187 (10 618 955) 7 071 232

Reconciliation of property, plant and equipment - 2013

Openingbalance

Additions Disposals Depreciation Total

Land 1 000 000 - - - 1 000 000Buildings 4 393 865 10 349 - (346 917) 4 057 297Furniture and fittings 177 823 1 627 - (27 563) 151 887Office equipment 375 316 117 855 - (73 459) 419 712Computer equipment 1 107 286 145 494 (26 102) (277 302) 949 376Other fixed assets 16 942 - - (3 138) 13 804

7 071 232 275 325 (26 102) (728 379) 6 592 076

Reconciliation of property, plant and equipment - 2012

Openingbalance

Additions Disposals Transfers Depreciation Total

Land 1 000 000 - - - - 1 000 000Buildings 4 747 627 - - - (353 762) 4 393 865Furniture and fittings 215 915 47 483 - - (85 575) 177 823Office equipment 433 617 8 998 (422) - (66 877) 375 316Computer equipment 1 088 363 281 823 (24 134) 10 763 (249 529) 1 107 286Other fixed assets 20 083 - - - (3 141) 16 942

7 505 605 338 304 (24 556) 10 763 (758 884) 7 071 232

Land

Erf 62, die Hoewes extension 26 township, Registration Division

J. R., province of Gauteng, in extent 3019 square metres.




3. INTANGIBLE ASSETS

2013 2012Cost /

ValuationAccumulatedamortisation


Carrying value Cost /Valuation

Accumulatedamortisation


Carrying value

Computer software 800 048 (563 244) 236 804 783 495 (497 547) 285 948

Reconciliation of intangible assets - 2013

Openingbalance

Additions Amortisation Total

Computer software 285 948 16 553 (65 697) 236 804

Reconciliation of intangible assets - 2012

Openingbalance

Additions Transfers Amortisation Total

Computer software 311 414 61 666 (10 763) (76 369) 285 948

4. OPERATING LEASES

The Operating lease liability of R 59 932 (2012: R 69 939) is the difference between actual payments and straight -lining asrecognised in the statement of financial performance.

Operating lease rentals are payable as follows:

Up to 1 year - R 475 496 2 to 5 years - R 163 537

The ELRC leases a number of premises for office use under operating leases. The leases typically run for a period of 3 - 5years, with an option to renew the lease after the expiry date. Lease payments are increased on an annual basis as per therental agreement.

During the year an amount of R 822 562 (2012: R 998 928) was recognised as an expense in the statement of financialperfrmance in respect of operating leases.


6. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of:

Current account and cash 10 448 568 13 226 909Call deposits 99 300 362 82 587 446

109 748 930 95 814 355

7. PROVISIONS

Reconciliation of provisions - 2013

OpeningBalance

Additions Utilisedduring the

year

Total

Other provisions 825 021 1 187 179 (824 207) 1 187 993

Reconciliation of provisions - 2012

OpeningBalance

Additions Utilisedduring the

year

Total

Other provisions 223 465 605 418 (3 862) 825 021

Other provisions comprise of travel and accommodation charges to be claimed for services rendered by a party to councilbut for which claims have not been received. A reliable estimate is made based on the number of meetings attended.



5. TRADE AND OTHER RECEIVABLES

Sundry debtors 1 953 512 330 719Provision for doubtful debts - Sundry debtors (50 128) (89 839)Prepayments 217 617 225 058Rental Deposits 49 540 41 590Receivable FETC levies - 356 020Provision for doubtful debts - FETC levies - (356 020)Investment interest accrued 18 425 29 822

2 188 966 537 350

The receivables are unencumbered.

Sundry debtors include amounts which have been impaired and considered irrecoverable. An appropriate allowance forestimated irrecoverable amounts has been raised under provision for doubtful debts - sundry debtors R 50 128(2012 : R 89 838).

Receivable FETC levies relate to levies not deducted from the contributors salaries and there is no prospect of applying thedeductions retrospectively, these amounts have been impaired and are considered irrecoverable. An appropriate allowancefor estimated irrecoverable amounts has been raised under provision for doubtful debts - FETC levies R Nil(2012 : R 356 020).


8. TRADE AND OTHER PAYABLES

Trade payables 11 302 412 14 256 644Accruals 37 552 755 30 207 106National Teaching Awards 1 534 010 1 584 010

50 389 177 46 047 760

~ Accruals comprise of amounts for which services have been rendered but for which invoices were received after yearend.

9. REVENUE

Discount received 325 -Interest received - investment 4 946 384 4 491 607Levies 49 318 954 49 692 528

54 265 663 54 184 135

Other incomeDiscount received 325 -Interest received - investment 4 946 384 4 491 607

Total levies received for the periodLevies 49 318 954 49 692 528

Average number of educators is 410,991 (2012: 414,104).

Contribution from the employee is R5 per month.Contribution from the employer is R5 per month.

All levies received bear no credit risk and are paid from salary deductions.

10. OPERATING SURPLUS

Operating surplus for the year is stated after accounting for the following:

RentalsPremises

Office buildings 822 562 998 928

Gain/ Loss on disposal of fixed assets 3 060 (2 690)Depreciation and amortisation 794 235 835 251Staff costs 14 647 634 15 509 728

11. INTEREST INCOME

Investment interest 4 712 916 4 154 099Other interest 233 468 337 508

4 946 384 4 491 607






12. TAXATION

The Council is exempt from the payment of income tax in terms of section 10(1) (CA) (I) of the Income Tax Act, No. 58 of1962.

13. AUDITORS' REMUNERATION

Fees - Statutory audit 951 321 1 047 020

14. CASH GENERATED FROM OPERATIONS

Surplus 10 363 509 6 246 913Adjustments for:Depreciation and amortisation 794 235 835 251(Gain)/ Loss on disposal of fixed assets (3 060) 2 690Bad debts written-off 50 128 136 256Movements in operating lease (10 007) 114 903Movements in provisions 362 972 601 556Changes in working capital:Trade and other receivables (1 651 616) (90 814)Bad debts written-off (50 128) (136 256)Trade and other payables 4 341 412 6 852 763

14 197 445 14 563 262

15. RELATED PARTIES`

Relationships

Transactions with Public Entities within the national sphere ofgovernment

Telkom

Transactions with Public Entities within the national sphere ofgovernment

South African Revenue Services

Related party transactions

Expenditure from (sales to) related partiesTelkom 472 085 523 643South African Revenue Services 2 793 251 3 578 366




16. KEY PERSONNEL REMUNERATION

Key personnel remuneration

2013

Basic Salary Bonus &Performance

Payments

ProvidentFund

Contributions

Other Travel andHousing

Total

NO Foca 483 921 67 068 84 972 8 640 67 449 712 050M J Moshakga 638 340 89 915 101 926 - 29 999 860 180L Padayachee 468 690 83 260 81 951 34 874 - 668 775M Govender 183 193 15 266 32 975 39 451 - 270 885FW Hugo 441 263 47 654 77 798 38 075 100 000 704 790

2 215 407 303 163 379 622 121 040 197 448 3 216 680

2012

Basic Salary Bonus &Performance

Payments

ProvidentFund

Contributions

Other Travel andHousing

Total

M Govender 693 079 107 069 122 984 - 14 000 937 132M J Moshakga 544 574 71 136 96 098 - 27 971 739 779L Padayachee 461 878 79 703 78 886 6 668 - 627 135NO Foca 413 627 71 515 70 780 7 690 59 187 622 799FW Hugo 474 533 31 746 84 587 18 600 156 771 766 237

2 587 691 361 169 453 335 32 958 257 929 3 693 082

17. RISK MANAGEMENT

Liquidity risk

The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity riskthrough an ongoing review of future commitments and credit facilities.

Interest rate risk

As the entity has no significant interest-bearing assets, the entity’s income and operating cash flows are substantiallyindependent of changes in market interest rates.

Credit risk

Credit risk in respect of trade receivables is limited due to the small amount of credit transactions.

Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entityonly deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.


19. IRREGULAR EXPENDITURE

Opening balance 1 265 397 2 505 559Expenditure incurred over R 500 000 1 041 524 882 752Expenditure incurred whithout required quotations 367 459 382 645Expenditure incurred whithout a valid tax clearance certificate 161 380 -Less: Amounts condoned (1 265 397) (1 096 076)Less: Amounts not recoverable (not condoned) - (1 409 483)

1 570 363 1 265 397

Analysis of expenditure awaiting condonation per age classification

Current year 1 570 363 1 265 397Prior years - 1 409 483

1 570 363 2 674 880

Details of irregular expenditureDisciplinary steps taken/criminal proceedings

Contravention of TR16.A.6.4

Irregular expenditure incurred as a result ofprocuring goods or services by means other thanthrough competitive bids.

None taken to date of report 1 041 524

Details of irregular expenditureContravention of TR16.A.6.1

Goods and services were procured without therequired number of price quotations, asdetermined by the National Treasury.

None taken to date of report 367 459

Contravention of Practise note 8 of 2007/08

No original valid tax clearance certificate forquotations exceeding R 30 000

None taken to date of report 161 380

528 839



18. FRUITLESS AND WASTEFUL EXPENDITURE

Non-attendance of training and meetings by Parties 52 234 42 235 Travel and accommodation not cancelled 1 316 7 435

Legal fees 10 260 -Arbitration/ Conciliation hearings not cancelled 7 602 11 500SARS late payment - 24 882Unused 3G cards - 1 289

71 412 87 341

Management continues to review the controls to minimise these costs.


20. RECONCILIATION BETWEEN BUDGET AND STATEMENT OF FINANCIAL PERFORMANCE

Reconciliation of budget with the surplus in the statement of financial performance:

Net surplus per the statement of financial performance 10 363 509 6 246 913Adjusted for:Increases in Income (2 808 720) (2 224 136)Decrease in Transfer from Reserve Funds 15 360 906 17 659 187Increases/ (Decrease) in Dispute Resolution and support services (2 545 014) (1 131 039)Increases/ (Decrease) in Collective Bargaining (6 099 229) (10 604 484)Increases/ (Decrease) in Executive Services (3 243 942) (8 350 521)Increases/ (Decrease) in Corporate Services (11 027 510) (1 595 920)Net surplus per approved budget - -




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DETAILED INCOME STATEMENTFigures in Rand Note(s) 2013 2012

REVENUELevies 49 318 954 49 692 528

Other incomeDiscount received 325 -Investment income 11 4 946 384 4 491 607Gains on disposal of assets 3 060 -

4 949 769 4 491 607

EXPENDITUREArbitration and mediation 5 349 285 6 444 430Advertising & Recruitment 325 442 209 154Auditors fees 13 951 321 1 047 020Bad debts written-off 50 128 136 256Bank charges 43 983 45 395Implementation of Acts and Agreements 177 475 213 222Cleaning and sanitation 93 725 89 278Dispute Prevention Support 9 249 661 9 366 450Meetings 3 583 070 3 207 543Consulting fees 122 466 94 210Office expenses 246 905 255 185Quality Learning and Teaching Campaign (23 617) 151 011Depreciation and amortisation 794 235 835 251Staff cost 14 647 634 15 509 728Sundry 804 133Fines and penalties - 24 882Training and Development Services 2 157 473 3 103 128Provincial chambers 647 004 470 453Electronic media 479 615 453 208Insurance 268 063 294 018Rental 822 562 998 928Legal expenses 232 158 515 666Loss on disposal of assets - 2 690Transcriptions 821 19 350Motor vehicle expenses 38 836 54 096Teacher Laptop Initiative (7 261) 199 630Printing and publications 355 786 330 815Stationery 134 883 167 049Research and Development - 630 051Internal Audit Fees 233 719 350 175Meals and accommodation 26 141 33 909Repairs and maintenance 278 469 332 464Security 420 602 384 345HR Expenses 156 577 34 544Subscriptions 148 835 128 894Telecommunication costs and postal fees 769 756 774 556Staff training 184 525 252 663Travelling costs 208 703 159 556Water and electricity 735 430 617 886

43 905 214 47 937 222

SURPLUS FOR THE YEAR 10 363 509 6 246 913

Education Labour Relations Council...Education Labour Relations Council | 2012/13 Annual Report 7 3....

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Transcript of Education Labour Relations Council...Education Labour Relations Council | 2012/13 Annual Report 7 3....