24 March 2015

ELRC Budget ReviewFive-Year Strategic Plan (2015/16-2019/20)

& Annual Performance Plan (2015-2016)

1.PART A: Strategic Plan overview

2. PART B: Annual Performance Plan

3. PART C:Overview of the 2015/16 Budget & MTEF

estimates

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PRESENTATION OUTLINE

Strategic Plan comprises of the following:

Vision, Mission and Values – not changed

Legislative & Policy Mandates- Emphasis on the pending de-listing as a schedule 3A entity

Situational Analysis - Performance Delivery Environment - Organisational environment

Strategic Outcome Orientated Goals

Strategic Objectives per Programme3

PART ASTRATEGIC PLAN OVERVIEW (2015 - 2020)

The Factors that influence plans and activities of Council:

Dispute Management ServicesUse of legal representatives influence dispute resolution process; andUnavailability of children’s courts.

Collective Bargaining ServicesPerformance of Council is reliant on rapport amongst Parties.

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SITUATIONAL ANALYSIS

ELRC in the context of the LRA ( Act 66 of 1995, as amended)

ELRC – a bargaining council in the public education sector established ito Sect 37(2) of the LRA of 1995, as amended.

Sect 28 of the LRA sets out the powers and functions of bargaining councils.

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SITUATIONAL ANALYSIS (cont.)Performance Delivery Environment

ELRC in the context of PFMA ( Act 1of 1999, as amended)

ELRC- listed as a schedule 3A public entity ito PFMA

Sect 1 of the PFMA defines the role of a public entity as well as its source of funding

ELRC does not meet this definition

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SITUATIONAL ANALYSIS (cont.)

The provisions of the LRA (the primary legislation applicable in the ELRC) in conflict with the provisions of the PFMA (secondary legislation)

Sect 210 : Application of the LRA when in conflict with other laws

“(1) If any conflict, relating to the matters dealt with in this Act , arises between this Act and the provisions of any other law save the Constitution or any Act expressly amending this Act, the provisions of this Act will prevail.”

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SITUATIONAL ANALYSIS (cont.)

Focus areas for the council

Dispute Management Services

Dispute Prevention (training of Parties, Practitioners & Dispute prevention committees)

Facilitation and Intervention ( training for Parties & Dispute Resolution Practitioners on grievance handling and disciplinary processes)

Dispute Resolution ( special training for Panellists on resolving disputes where a child is a victim; plan to reduce disputes on appointments and promotions; monitoring implementation of collective agreements and enforcement)

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SITUATIONAL ANALYSIS (cont.)Organisational Environment

Focus areas for the council (cont.)

Collective Bargaining ServicesIncentives for educatorsTraining and Advocacy on the revised PAMTraining and Advocacy on revised performance management systems (QMS – institution based educators & EMS – office based educators)Revision of the Councils’ constitution in line with LC’s judgments and the amendment to the LRA

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SITUATIONAL ANALYSIS (cont.)

Focus areas for the council (cont.)

Administration ServicesReview of the funding model – to address the static flow of income Building refurbishment projectInvesting in Human Capital (Recruitment & Retention)Introduction of an integrated planning system to improve the business of the Council

(Enterprise Resource Planning (ERP) system)

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SITUATIONAL ANALYSIS (cont.)

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STRATEGIC OUTCOME ORIENTED GOALS

The strategic outcome oriented goals of the ELRC are:

To engage in research and monitoring and evaluation activities to provide an evidence base for improved policies and policy implementation in basic education.

To provide proactive dispute prevention and dispute resolution services.

To ensure that our collective bargaining processes maximises the scope of the Parties’ shared interest.

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

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

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STRATEGIC OUTCOME ORIENTED GOALS (cont.)

To implement sound communication strategies which support and complement the core activities of the Council.

To strengthen social dialogue through supporting and participating in education initiatives such as the QLTC and NECT.

STRATEGIC OBECTIVES PER PROGRAMME – (have been consolidated in part B of the presentation APP)

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

Overview of 2015/16 Budget & MTEF Estimates

ELRC Organogram

Conclusion

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PART BAnnual Performance Plan (2015/16)

The Annual Performance Plan, together with the Budget:

Was developed by the management of the ELRC under the guidance of the Accounting Authority;

Is aligned with our Strategic Plan for 2015/16 to 2019/20;

Accurately reflects the performance targets which the ELRC will endeavour to achieve given the resources allocated in the budget for 2015/16;

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

Is achievable within the mandate of the Council.

The Council is confident that its new strategic vision and the Annual Performance Plan will deliver improved services in the financial year 2015/16.

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Annual Performance Plan

Amendments to the FETC Act 16 of 2006

Delisting of the ELRC as a Schedule 3A Public Entity

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Revision to Legislative & Other Mandates

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Programme 1: Administration Services

Programme 2: Dispute Management Services

Programme 3: Collective Bargaining Services

ELRC Programmes

PURPOSE:

To provide support services to the core operational functions of the Council, to ensure that it delivers an efficient and effective service on its mandates.

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Programme 1: Administration Services

Finance and Administration8.1.1.1 To instil fiscal discipline, sound corporate governance and compliance

with regulatory framework.

Compliance, Risk and Audit8.1.1.2 To add value through assisting the organisation to meet overall corporate

objectives by establishing a systematic and disciplined approach to assessing, evaluating, and improving the quality and

effectiveness of risk management processes, systems of internal control, and corporate governance processes.

Mobilising Employee Services8.1.1.3 To professionalise the ELRC by investing in human capital.

Communication Services 8.1.1.4 To promote the image of the ELRC.

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Strategic Objectives:Administration Services

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Strategic Objective Annual Target

8.1.1.1Finance & Compliance Regulatory FrameworkTo instil fiscal discipline, sound corporate governance and compliance with regulatory framework

Introduction and Implementation of ERP system upgrade completed during the financial year 2015/16

Achieve unqualified audit opinion from external audit at year end

100% completion of approved Annual Internal Audit Plan and issuance of audit reports

Annual Targets for 2015/16: Administration Services

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Annual Targets for 2015/16: Administration Services (Cont.)

Strategic Objective Annual Target8.1.1.2Risk Management To add value through assisting the organisation to meet overall corporate objectives by establishing a systematic and disciplined approach to assessing, evaluating, and improving the quality and effectiveness of risk management processes, systems of internal control, and corporate governance processes

Risk register updated and approved by the Audit Committee (1)

Compliance registers updated and reviewed by the Accounting Officer and AC

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Annual Targets for 2015/16: Administration Services (Cont.)

Strategic Objective Annual Target

8.1.1.3Human CapitalProfessionalise the ELRC by investing in human capital

30 employees to participate in Human development programmes matching entity requirements

4 employees wellness programmes during the financial year

All vacant funded positions filled within 3 months of request received

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Annual Targets for 2015/16: Administration Services (Cont.)

Strategic Objective Annual Target

8.1.1.4Corporate Image of the CouncilTo promote the image of the ELRC

Conduct 4 advertising campaigns to market the Council in different medias (e.g. magazines, radios, social media, newspapers, etc.)

PURPOSE:

To manage disputes proactively. This is achieved through:

Dispute Prevention

Efficiencies: Special Disputes

Training and Development

Professional Development

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Programme 2: Dispute Management Services

8.1.2.1. To Provide efficient dispute resolution services.

8.1.2.2 To ensure quality of arbitration awards.

8.1.2.3 To provide training to Dispute Resolution Practitioners and/or Negotiators.

8.1.2.4 To provide Professional Development to Panellists.

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Strategic Objectives:Dispute Management Services

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Annual Targets for 2015/16: Dispute Management Services

Strategic Objective Annual Target8.1.2.1.Dispute Resolution ServicesProvide efficient dispute resolution services

Scheduling cases in jurisdiction for conciliation within 30 days of receipt

To schedule cases for arbitration within 45 days after conciliation

8.1.2.2Quality Control of arbitration awardsEnsure quality over arbitration awards

Quality Control (QC) done in all arbitration awards concluded during the financial year

8.1.2.3Training for DRP & NegotiatorsTo provide training to Dispute Resolution Practitioners and/or Negotiators

Six (6) training sessions conducted annually for Dispute Resolution Practitioners and/or Negotiators

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Annual Targets for 2015/16: Dispute Management Services (Cont.)

Strategic Objective Annual Target

8.1.2.4Professional Development ServicesTo provide Professional Development to Panellists

Four (4) training sessions conducted annually for Panellists

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.

Such is done by promoting collective bargaining at national and provincial levels so as to ensure the development of effective policies for quality public education in a non-disruptive environment for teaching and learning.

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Programme 3: Collective Bargaining Services

8.1.3.1 To facilitate bargaining on identified matters of mutual interest in public education.

8.1.3.2 To administer research programmes on identified issues for research on evidence

based teacher welfare and national development.

8.1.3.3 To facilitate dispute prevention support services through providing effective administrative

functions to shop stewards.

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Strategic Objectives:Collective Bargaining Services

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Annual Targets for 2015/16: Collective Bargaining Services

Strategic Objective Annual Target

8.1.3.1Collective bargainingTo facilitate bargaining on identified matters of mutual interest in public education

Schedule bargaining and governance meetings within fourteen (14) days from date of agreement

Issue notice to parties for scheduled meetings within fourteen (14) days

Annually table the management plans for approval for the next bargaining cycle

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Annual Targets for 2015/16: Collective Bargaining Services (Cont.)

Strategic Objective Annual Target8.1.3.2Research ServicesTo administer research programmes on identified issues for research on evidence based teacher welfare and national development

Administer resources allocated to approved research programmes

8.1.3.3Dispute Prevention SupportTo facilitate dispute prevention support services through providing effective administrative functions to shop stewards

Convening a task team meeting on monthly basis

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2015/16 Budget

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Overview of 2015/16 Budget & MTEF Estimates

Approved

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Levies Received 49,355,909 48,822,142 48,681,620 48,000,000 48,000,000 48,000,000 48,000,000

Levies Received - FETC 336,619 496,812 616,246 - - - -

Interest Received 4,488,918 4,946,384 5,634,093 2,501,706 5,915,798 6,241,167 6,553,225

Other Income 3,385 62,237

Transfers - - - 7,473,654 19,276,998 16,345,863 18,325,739

INCOME 54,181,446 54,268,723 54,994,196 57,975,360 73,192,796 70,587,030 72,878,964

ADMINISTRATION SERVICES

1. Corporate and Executive Services 12,721,504 11,528,590 15,672,532 17,257,245 23,353,021 23,609,828 23,847,571

CORE SERVICES

2. Dispute Management Services 12,076,073 10,424,778 7,749,283 10,115,450 14,381,557 14,917,532 15,231,240

3. Collective Bargaining Services 12,516,908 12,485,108 14,418,349 20,392,855 23,620,659 19,571,045 20,687,097

Dispute Prevention Support Services 9,366,450 9,249,661 8,805,864 10,209,810 11,837,559 12,488,625 13,113,056

4. Further Education Training Colleges 1,253,599 217,077 188,781 - - - -

TOTAL EXPENDITURE 47,934,534 43,905,214 46,834,809 57,975,360 73,192,796 70,587,030 72,878,964

SURPLUS 6,246,912 10,363,509 8,159,387 - - - -

Net surplus as per AFS excluding Capital expense 6,246,913 10,363,509 8,159,388

6. Capital expenditure 399,970 291,878 545,019 9,820,000 17,610,396 90,000 60,000

TOTAL BUDGET - - - 67,795,360 90,803,192 70,677,030 72,938,964

Expenditure outcome Medium-term expenditure estimate

BUDGET FOR 2015/16 FINANCIAL YEAR

CONSOLIDATED TOTALS PROGRAMME

SUMMARY

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Expenditure

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Budget for 2015/16

The core business of Dispute Management Services and Collective Bargaining Services has been allocated 68% of the total budget of 2015/16.

The approved budget for 2015/16 is R90 million, including capital expenditure, which is an increase of 29 % from the 2014/15.

The increases in the budgets relates to capital expenditure for the refurbishment of the Council owned building.

Relating Expenditure Trends to Strategic-Oriented Goals

The funding of the Council’s strategic outcome oriented goals has not been compromised.

The expenditure of the ELRC is closely aligned to the income generated.

The funding model is unique and challenging.

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Relating Expenditure Trends to Strategic-Oriented Goals

Accumulation of surplus funds. These accumulated reserves are adequate over the MTEF period.

Revenue increases by an average of 53% over the MTEF period, excluding the transfers from transformation fund and accumulated reserves, the increase relates to interest from investments and transfers from reserves.

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Relating Expenditure Trends to Strategic-Oriented Goals

Expenditure increases by an average of 9% or R4.9 million over the MTEF period, mainly due to increases in research, training & development costs and the inflationary increase on other operating expenses.

A significant increase of R15.3 million in the financial years

2014/15 – 2015/16 relates to the refurbishment of own buildings.

The Council projects that deficits will increase over the MTEF period, due to income remaining constant. However, the Council has sufficient reserves to cover this deficit in the short term.

The projected deficits are not sustainable in the long term. It is anticipated that the levies will be revised by the Council to cover these deficits and ensure sustainability in the long term.

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ELRC Organogram 2015/16

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Conclusion

The Council appreciates the oversight role of the Portfolio Committee, which ensures accountability for the utilisation of limited resources, employed to fulfill the strategic goals of the Council, which ultimately serves the public education sector.

The Council’s Annual Performance Plan for the 2015/16 financial year outlines a revitalized chart, with well defined and attainable goals to achieve our core objective to maintain labour peace in public education and to improve the quality of education in public schools.

Thank you.