a collective - elrc

A collective and enduring devotion

to preserve labour peace in a fluctuating socio-economic climate.

A collective and enduring devotion to preserve labour peace in a fluctuating socio-economic climate.

Education Labour Relations Council | 2015/16 Annual Report 1

Education Labour Relations Council

(ELRC)ANNUAL REPORT

2015/16

EDUCATION LABOURRELATIONS COUNCIL

A collective and enduring devotion to preserve labour peace in a fluctuating socio-economic climate. A collective and enduring devotion to preserve labour peace in a fluctuating socio-economic climate.

Education Labour Relations Council | 2015/16 Annual Report2

Contents

PART A: GENERAL INFORMATION

1. ELRC GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2. LIST OF ABBREVIATIONS/ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3. STRATEGIC OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.1 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.3 Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.4 Strategic Outcome Orientated Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

4. LEGISLATIVE AND OTHER MANDATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

5. ORGANISATIONAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

6. FOREWORD BY THE CHAIRPERSON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

7. ACCOUNTING OFFICER’S OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

PART B: PERFORMANCE INFORMATION

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2. OVERVIEW OF ELRC’S PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2.1 Service Delivery Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2.2 Organisational Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

2.3 Key Policy Developments and Legislative Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2.4 Strategic Outcome Oriented Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3. PERFORMANCE INFORMATION BY PROGRAMME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.1 PROGRAMME 1: Administration Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.2 PROGRAMME 2: Dispute Management Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

3.3 PROGRAMME 3: Collective Bargaining Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

4. SUMMARY OF FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

4.1 Revenue Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

5. PROGRAMME EXPENDITURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

5.1 Capital Investment, Maintenance and Asset Management Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69



PART C: GOVERNANCE

1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

2. THE ACCOUNTING AUTHORITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

3. RISK MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

4. INTERNAL CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

5. AUDIT COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

6. COMPLIANCE WITH LAWS AND REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

7. FRAUD AND CORRUPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

8. MINIMISING CONFLICT OF INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

9. CODE OF CONDUCT AND ETHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

10. OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

11. SOCIAL RESPONSIBILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

12. AUDIT COMMITTEE REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

PART D: HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

2. HUMAN RESOURCE OVERSIGHT STATISTICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

PART E: FINANCIAL INFORMATION

1. REPORT OF THE EXTERNAL AUDITOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

2. ANNUAL FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90


Part A General Information




1. ELRC GENERAL INFORMATION

REGISTERED NAME: Education Labour Relations Council

REGISTRATION NUMBER: LR2/6/6/110

PHYSICAL ADDRESS: 261 West Avenue

Centurion

0046

POSTAL ADDRESS: Private Bag X126

Centurion

0046

TELEPHONE NUMBER/S: +27 12 663 7446

FAX NUMBER: +27 12 663 9604

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.elrc.org.za

EXTERNAL AUDITORS: Ngubane & Co. Chartered Accountants and Auditors

BANKERS: First National Bank



2. LIST OF ABBREVIATIONS/ACRONYMS

AC Audit Committee

ANA Annual National Assessment

APP Annual Performance Plan

BCEA Basic Conditions of Employment Act

BCP Business Continuity Plan

CA Collective Agreement

CFO Chief Financial Officer

COLA Cost of Living Adjustments

CTU-ATU Combined Trade Union – Autonomous Trade Union

DBE Department of Basic Education

DMS Dispute Management Services

DPS Dispute Prevention Strategy

DRPs Dispute Resolution Practitioners

DSD Department of Social Development

EC Eastern Cape Province

EHW Employee Health and Wellness

ELRC Education Labour Relations Council

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

EXCO Executive Committee

FAMSA Family and Marriage Society of South Africa

FETC Further Education and Training Colleges

FPP Fraud Prevention Plan

FS Free State Province

GEPF Government Employee Pension Fund

GP Gauteng Province

GS General Secretary

HR Human Resources

IA Internal Audit

ICT Information and Communications Technology

IIAL Incremental Introduction of African Languages

IQMS Integrated Quality Management System

KZN KwaZulu-Natal Province

LDoE Limpopo Department of Education

LP Limpopo Province

LRA Labour Relations Act

LTSM Learning and Teaching Support Material

MoU Memorandum of Understanding

MP Mpumalanga Province

MTEF Medium Term Expenditure Framework

NAT National

NC Northern Cape Province



NDP National Development Plan

NECT National Education Collaboration Trust

NEHAWU National Education Health and Allied Workers’ Union

NPO Non-Profit Organisation

NMMU Nelson Mandela Metropolitan University

NSNP National School Nutrition Programme

NW North West Province

OHS Occupational Health and Safety

OSD Occupation-Specific Dispensation

PAM Personnel Administrative Measures

PELRC Provincial Education Labour Relations Council

PFMA Public Finance Management Act

PILIR Policy on Incapacity Leave and Ill-Health Retirement

PMDS Performance Management Development System

PPN Post Provisioning Norms

PQLTC Provincial Quality of Learning and Teaching Campaign

PSCBC Public Service Coordinating Bargaining Council

PSETA Public Service Sector Education and Training Authority

QC Quality Control

QLTC Quality Learning and Teaching Campaign

QLTP Quality Teaching and Learning Programme

QMS Quality Management System

SACE South African Council for Educators

SADTU South African Democratic Teachers’ Union

SAOU Suid-Afrikaanse Onderwysersunie

SG Secretary General

SGB School Governing Body

SHE Safety, Health and Environment

SIP School Improvement Plan

SSE School Self-Evaluation

STANCO Standing Committee

TASP Teacher Appreciation Support Programme

ULP Unfair Labour Practice

VPN Virtual Private Network

WC Western Cape Province

WSE Whole School Evaluation

WSP Workplace Skills Plan

WSUS Windows Server Update Service



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 Education Labour Relations Council (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 conflict of interest

• Accountability: Accepting responsibility for actions and decisions taken with allowance for corrective action and

penalty for wrongdoing

• Fairness and equity: Adjudication of grievances and disputes

• Social Responsibility: Respond to the social issues of the day

• Efficiency: 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

The ELRC operates in terms of the Labour Relations Act 66 of 1995 (as amended) from 01 April 2015.

Applicable Legislation

• Labour Relations Act (LRA) 66 of 1995, as amended

• Employment of Educators Act 76 of 1998, as amended

• Further Education and Training Colleges Amendment Act 3 of 2012

• Constitution of Republic of South Africa; Section 28(2) – Rights of the child



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6. FOREWORD BY THE CHAIRPERSON

It is with great pleasure that on behalf of the Executive Committee (EXCO), I present the Education Labour Relations Council’s Annual Report for the financial year 01 April 2015 to 31 March 2016, which demonstrates our commitment to quality education in the public education sector.

The 2015/16 financial year was a significant period for the Council, as it was the first year that the Council operated wholly as a bargaining council in terms of the Labour Relations Act 66 of 1995, as amended. In giving effect to the Council’s status as a delisted entity, training was convened on Corporate Governance for Council members to understand their roles in the context of the King III Code and Governance Principles.

The integration of the King III Code in the strategic and operational plans of the Council will ensure that we retain the high level of transparency that has always guided our business.

Improvement in the principles of good governance will also ensure a reduction in the number of organisational risks and operational inefficiencies.

The governance structures of the Council demonstrated their commitment to fulfil the Council’s mandate to maintain labour peace in public education. This is evidenced by the improved performance in collective bargaining at both national and provincial level. Sustained cordial relations between Parties will enable the Council to achieve its planned objectives, which ultimately benefits educators in public schools.

I extend my gratitude to the ELRC management and staff for the strides made during the 2015/16 financial period to achieve the objectives of the Council.

_________________Adv. L BonoChairperson, ELRC



7. ACCOUNTING OFFICER’S OVERVIEW

It gives me great pleasure to present the Annual Report and achievements of the Council for the financial year 01 April 2015 to 31 March 2016.

The Council recorded noteworthy achievements during the period under review in relation to its core operations, which are Dispute Management Services and Collective Bargaining Services.

A total of 217 awards were rendered during the period under review; this is an increase of 32 awards as compared to the 185 issued in the 2014/15 financial year. This increase can be attributed to improvements in our efficiencies related to the scheduling of disputes.

In line with our objective to provide efficient dispute resolution services, the Council continued to employ proactive measures to deal with disputes; this includes the dispute prevention committees at provincial level, which continue to contribute to the reduction of disputes on alleged unfair dismissals as well as appointment and promotion disputes.

As a way of addressing the challenge in relation to the postponement of cases, the Council increased its pool of interpreters and intermediaries during the period under review to ensure the availability of skilled interpreters and intermediaries, particularly when dealing with disputes where a child is a victim or a witness. Partnerships were also formed with non-profit organisations (NPOs) to increase the number of venues for special disputes involving children.

In giving effect to our intention to provide continuous training for Dispute Resolution Practitioners (DRPs), 11 sessions were conducted during the period under review. The Council exceeded its target, as six sessions were planned for the 2015/16 financial year. The training of DRPs improved the efficiencies of the Council in terms of the quality of the outcomes, arbitration awards, settlement agreements, and rulings rendered.

The Council’s performance in terms of collective bargaining improved considerably during the period under review compared to performance in the 2014/15 financial year. This is particularly the case in relation to national collective bargaining.

Parties succeeded in addressing long-standing items on the agenda of the Council, including the publication of the Revised Personnel Administrative Measures (PAM). The PAM was gazetted by the Minister during the period under review. The Revised PAM will ensure consistent implementation of provisions throughout all nine Provincial Departments of Education.

The research services administered by the Council addresses identified issues for study on evidence-based teacher welfare and national development. The Council concluded the research on the Conditions of Service for the Institutionalisation of Grade R Practitioners during the period under review. The research recommendations will serve as a comprehensive guide on policy reform relating to the upgrading of qualifications and post provisioning for Grade R Practitioners.

There was a notable improvement in the performance of provincial chambers compared to the 2014/15 financial period. The performance of all chambers improved, with the exception of the North West chamber which achieved 100% in 2014/15 and 80% in the period under review. This decline in performance is attributed to Incentives for Educators, which could not be achieved by the chamber, as the item was not budgeted for. This has however been addressed in the 2016/17 Annual Performance Plan for North West.

Human Resource Management forms the bedrock of our strategy to professionalise the ELRC by investing in human capital. In realising this objective, the Council’s Salary Benchmarking and Remuneration Policy was implemented during the period under review, in an effort to promote staff morale. HR policies pertaining to training and development; performance management; recruitment and selection; leave management; and Code of Conduct and Ethics were reviewed and approved during the period under review. Our improved policies and practices strategy recognises and addresses the needs of employees and seeks to create an environment that is conducive to high productivity levels.



The Council refurbished its existing building structure during the period under review. This was done in an effort to address some of the findings and risks identified in the feasibility study conducted in 2013/14.

The Minister of Finance delisted the ELRC as a Schedule 3A Public Entity, with effect from 31 March 2015. The Council’s delisting affects governance and reporting in the ELRC. Governance principles will no longer be founded on the Public Finance Management Act (PFMA) but rather on the King Report on Governance for South Africa (King lll), the Labour Relations Act (in terms of Section 57) and the ELRC constitution.

As the Accounting Officer of the ELRC, I am satisfied 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 Officer, ELRC


Part B Performance Information




1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

Statement of Responsibility for Performance Information for the year ended 31 March 2016

In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indicators and targets as per the Strategic and Annual Performance Plan (APP) of the ELRC for the financial year ended 31 March 2016.

The performance information of the ELRC set out on page 22 to page 84 is approved by the Executive Committee of the Council.




2. OVERVIEW OF ELRC’S PERFORMANCE

2.1. 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. To improve the delivery of services over the next three years, the Council will take steps to improve the efficiencies in dealing with matters of mutual interest by revisiting its mandate and providing strategic direction.

Identified factors that negatively affect 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”.

2.1.1 Dispute Management Services

2.1.1.1 Dispute Prevention

The objective of the Council in dispute prevention is to employ a proactive approach and intervene to resolve grievances before they develop into disputes. The 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, which provide a forum for Parties to engage in all areas that are considered to be potential disputes.

The committees contributed significantly to the reduction of grievances related to promotional posts at provincial level. The work of the Dispute Prevention Task Teams also focussed on the need for a comprehensive workshop on Discipline of Educators in KwaZulu-Natal and Gauteng.

2.1.1.2 Facilitation and Intervention

The Council detected an escalation of disputes referred by provinces. In its quest to reduce the number of disputes referred, the Council trained DRPs on grievance handling and disciplinary processes. The ELRC entered into a Service Level Agreement with the Nelson Mandela Metropolitan University (NMMU) to train DRPs on Practical Labour Law (Commissioners’ course).

The ELRC facilitated a potential dispute at Lephalale FET College during the period under review, which culminated in the signing of a Memorandum of Understanding (MoU) between the South African Democratic Teachers’ Union (SADTU) and the management of the College. A total of 18 grievances were resolved as a result of this intervention.

The Council further provided facilitation on disputes for non-payment of salaries as well as a Post Provisioning Norm (PPN) declaration in the Eastern Cape. The Council further mediated on the Annual National Assessments (ANAs) for the period under review. The ANA mediation, however, did not yield positive results, as the process ended in deadlock.

2.1.1.3 Dispute Resolution

Special Disputes where a child is a victim

The Council observed that a considerable number of disputes referred relate to learners as victims or witnesses. Furthermore, the Council detected that there is a shortage of skilled Panellists who can handle these special cases.



The Council continues to recruit interpreters, commissioners and intermediaries in order to overcome delays and postponement issues associated with unavailability of such persons whenever they are requested. These persons are very critical in ensuring that the rights of the child are protected in disputes where the child is attending arbitration processes, either as a victim or witness. The Council will issue a formal advertisement for interpreters, intermediaries and commissioners in the first quarter of the 2016/17 financial year.

The Council continues to ensure that appropriate venues are booked for special hearings involving the child, e.g. Magistrate Court, Children’s Court or Teddy Bear Clinic (Johannesburg) and the Department of Social Development (DSD) in the Free State and Northern Cape. The Council also formed partnerships with Uviwe Child and Youth Services in the Eastern Cape and the Family and Marriage Society of South Africa (FAMSA), as well as Engo Family Care in the Free State.

The Council also ensures that intermediaries are appointed to protect the rights of the child. As stipulated in Section 28 of the Constitution, “The right of the child is of paramount importance in all matters concerning the child”.

Appointments and Promotions

The Council noticed that the majority of disputes referred to the ELRC are issues of unfair labour practices (ULPs) relating to promotions and appointments. The Council endeavours to reduce these kinds of disputes, as there are revised guidelines for promotion and appointments as well as revised Dispute Resolution Procedures on how the cases should be dealt with. These guidelines will be finalised in the first quarter of the 2016/17 financial year.

Monitoring the implementation of Collective Agreements and enforcement

The Council, through its provincial chambers, continued to ensure that implementation of Collective Agreements (CAs) is monitored, and in instances where such is not done, the provisions of the Council’s constitution are invoked to ensure enforcement.

Proactive measures in place to deal with disputes:

• The dispute prevention committees in all provincial chambers assist with analysis of statistics on the above disputes

to ensure that these issues are addressed timeously and to identify training needs where necessary.

• The Council continues to provide training to DRPs and Panellists to ensure that they operate effectively and are kept

abreast of current labour developments. Council will also provide training for negotiators on collective bargaining

skills.

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

• Training is to be provided on the amended constitution in the 2016/17 financial year.

2.1.1.4 Collective Bargaining Services

2.1.1.4.1 Challenges emanating from the implementation of the current PPN

The consultation process on PPN at provincial chambers often poses challenges, resulting in disputes, because the model used by the Employer does not cater for material conditions. The Council took a decision that PPN should be a standing agenda item in all the bargaining meetings where the Employer would provide progress reports. The item has been added to the management plan of the Council for the 2016/17 financial year.

2.1.1.4.2 Reduction in the pool of temporary educators

Inconsistencies in the reduction of temporary educators result in impasse between the Employer and Employee Parties at provincial level. The Labour Relations Amendment Act 6 of 2014 is likely to have an impact on matters relating to the appointment of temporary educators, as the Act provides greater protection for workers placed in temporary employment services.



To address the challenges in the appointment of temporary educators in education and to give effect to what is envisaged in the Act, the Council’s Legal Sub-Committee has drafted a collective agreement on the appointment of temporary educators, which will be aligned to the Act. The Draft Collective Agreement has been referred back to the Legal Sub-Committee for further inputs and will be finalised in the 2016/17 financial year.

2.1.4.3 Incentives for Educators

There are inconsistencies in the implementation of the current policy on incentives because of it not being the outcome of the negotiation process. The Council continues to monitor the implementation of the policy through reports tabled by the Employer. In addition to the reports presented by the Employer, the Council also monitored the implementation of the policy through reports submitted by provincial chambers on a quarterly basis. Parties have agreed that the Employer would request the Minister of Basic Education to review the policy.

2.1.4.4 Revision of PAM

Outdated parts of pieces of legislation, policies and/or Collective Agreements within the PAM have resulted in the incorrect implementation of certain provisions of the current Collective Agreements, thereby contributing to a number of disputes referred to the Council.

As a way of addressing this, the Council revised the PAM, which was gazetted by the Minister of Basic Education in February 2016. Training and advocacy on the Revised PAM will commence in the 2016/17 financial year.

2.1.4.5 Performance Management System (QMS)

As a way of providing a standardised framework for employee performance for educators, the Council has concluded a Quality Management System (QMS) collective agreement. The agreement seeks to provide coherence and synergy between all the agreements concluded on performance management. This includes Collective Agreement No. 8 of 2003, which dealt with the establishment of the Integrated Quality Management System (IQMS); ELRC Collective Agreement No. 1 of 2008, which had to do with the framework for the establishment of an Occupation-Specific Dispensation (OSD) for educators in public education; and ELRC Collective Agreement No. 2 of 2010, which dealt with the implementation of paragraph 3.2 (Appraisal and Evaluation) of the Teacher Development Summit Declaration of July 2009.

The Summit agreed that teacher appraisal for purposes of development should be de-linked from appraisal for purposes of remuneration and salary progression, as this process would secure the trust and confidence of teachers, so that they are able to discuss their own challenges in a non-punitive environment and can access relevant mentoring, support and training that are targeted to their needs.

The agreement also takes into account the 2030 vision that the National Development Plan (NDP) proposes for basic education, which is for stakeholders to adopt a more accountable approach to ensure the improvement of education. A results-orientated framework of mutual accountability has to be constructed, where districts are accountable for supporting schools. Schools also need to be accountable to education authorities for their overall performance on key indicators. More importantly, schools should be accountable to the school community for the performance of the school in relation to the annual school plan.

The NDP also proposes that all stakeholders should be provided with clear information on accountability measures. The QMS Collective Agreement makes provision for these accountability measures, outlined in Annexure 1 of the agreement, which defines the roles and responsibilities of individuals and structures involved in the implementation of the educator appraisal system.

The Collective Agreement on QMS was finalised during the period under review. However, the training and advocacy could not be conducted, as the Collective Agreement still has to be signed by all Parties. Training and advocacy on the Collective Agreement has been included in the management plan for the 2016/17 financial year.



2.1.4.6 Research

The Council concluded the research on the Conditions of Service for the Institutionalisation of Grade R Practitioners during the period under review. The Council will interact with the recommendations of the report in the 2016/17 financial year.

2.2. Organisational Environment

2.2.1 Funding modelThe funding model of the Council poses a challenge in that income is generated through contributions by the Employer and deductions from 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 fixed flow of secured income in an environment of increasing costs due to inflation. The Council has developed a proposal, and it is envisaged that discussions on a revised levy increase will be finalised in the 2015/16 year.

2.2.2 The building refurbishment projectThe Council refurbished its existing building structure during the period under review, in an effort to address some of the findings and risks identified in a feasibility study conducted in 2013/14. The building refurbishment project commenced in January 2015 and was concluded in February 2016.

2.2.3 Human CapitalAs a way of maintaining stability in the workplace and curbing the high staff turnover that was prevalent in previous financial years, the Council approved the appointment of a service provider in the 2013/14 financial year to conduct job grading and develop a Remuneration Strategy and Policy to ensure staff retention.

The service provider graded all the jobs in the organisation. As a result, a Remuneration Strategy and Policy was subsequently developed and approved.

A work study project was conducted to assist in grading and evaluating the positions within the organisation. This exercise resulted in the need for the revision of our Remuneration Strategy and Policy. The implementation of these strategies was done in April 2015.

After the work study project had been conducted, it was necessary to also conduct a benchmarking exercise, which was a success, as it assisted with staff turnover. The Council is now able to attract valuable and competent staff.

The Council has also developed a Recruitment and Retention Strategy through the Human Resources Executive Sub-committee in order to address the staff turnover rates. These strategies coupled with succession plans are geared to enhance our ability to attract and retain competent, well-motivated and committed people who will contribute to the attainment of our strategic outcome-orientated goals.

The Recruitment and Retention Strategy has also yielded positive results for the organisation, as employees are now receiving long service awards and job satisfaction surveys, which are also beneficial to the organisation.

Human Resources Policies were amended to address identified gaps in ensuring that the organisation operates smoothly. The following policies were amended:

• Performance Management Policy

• Recruitment and Selection Policy

• Disciplinary Policy and Procedure

• Training and Development



• Leave Management Policy

• Code of Conduct and Ethics

2.3. Key policy developments and legislative changes

2.3.1 Delisting of the ELRC as a Schedule 3A Public EntityThe Council embarked on a process of delisting as a Schedule 3A Public Entity in the 2014/15 financial year. The Registrar of Labour Relations highlighted the Council’s non-compliance with the Labour Relations Act 66 of 1995, Sections 53(1) and 53(2)(b). Failure to delist in terms of the PFMA would have led to a review of the Council’s deregistration as a bargaining council.

The Minister of Finance, acting in terms of Section 47 & 48 of the PFMA, 1999, delisted the Council with effect from 31st March 2015.

The Council’s delisting affects governance and reporting in the ELRC. Governance principles will no longer be founded on the PFMA but rather on the King Report on Governance for South Africa (King lll), the Labour Relations Act (in terms of Section 57) and the ELRC constitution.

The Council is no longer accountable to Parliament but now reports to the Registrar of Labour Relations. The Council, however, retains the compliance framework established during its listing period.

2.4. Strategic Outcome-Oriented Goals

Strategic Outcome-Orientated Goals Progress

Goal 1

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

A service provider, LVG Consulting, was appointed to conduct in-country research on the conditions of service for Grade R Practitioners.

The research was completed during the fourth quarter of the 2015/16 financial year. The Council will interact with the recommendations of the report in the 2016/17 financial year.

Goal 2

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

The ELRC facilitated a potential dispute at Lephalale FET College during the period under review, which culminated in the signing of an MoU between SADTU and the management of the college. A total of 18 grievances were resolved as a result of this intervention.

The Council provided facilitation on disputes for non-payment of salaries as well as a PPN declaration in the Eastern Cape.

The Council also mediated on the ANA for the period under review. The ANA mediation, however, did not yield positive results, as the process ended in deadlock.

Goal 3

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

The Revised PAM was gazetted by the Minister of Basic Education during the period under review.

A service provider, 21st Century Pay Solutions, was appointed to conduct the job evaluation for Circuit Managers. The Job Profile and Sizing Model Report for Circuit Managers was presented to the EMS for Office-Based Educators Task Team on 29th February 2016.



Strategic Outcome-Orientated Goals Progress

Goal 4

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

Training was conducted for Council members on King III Corporate Governance, which was necessitated by the delisting of the ELRC as a Schedule 3A Public Entity and the Council’s commitment to maintain its practices of good governance in serving teachers and the cause of education in a transparent and honest manner.

The ELRC arranged 11 training sessions for DRPs. They were trained on Practice in Education Labour Law; Substantive Law; Ethics and Social Justice; Managing Dismissals; Unfair Labour Practices; and Labour Dispute Resolution. The Combined Trade Union – Autonomous Trade Union (CTU-ATU) Practical Labour Law Training (Commissioners course) provided by NMMU was completed, and 12 certificates were issued to the candidates.

Additional training was conducted for KwaZulu-Natal DRPs on discipline and grievance handling.

Goal 5

Sound communication strategies support and complement the core activities of the Council.

The Council embarked on an awareness campaign in the 2015/16 financial year in response to the recommendations emanating from the study undertaken in the 2014/15 financial year.

The Council participated in the following marketing initiatives to create awareness of its services amongst educators:

Exhibitions

• Education Week at Gallagher Estate from 01 to 02 July 2015

• Inspired Teacher’s Conference at Varsity College on 18 August 2015 in Sandton

• ILERA Congress from 07 to 11 September 2015 in Cape Town

• SACE Inaugural Fun Walk on 19 September 2015 in Centurion

• Exhibition at the Naptosa National Congress on 28 October 2015

Print Media

An advertorial was placed in the Suid-Afrikaanse Onderwysersunie’s (SAOU) August 2015 newsletter.

Distribution of Material

Branded material was distributed at the ELRC Provincial Strategic Planning Workshops in all nine provinces in February and March 2016, as well as at Naptosa’s Annual Staff Training in January 2016.

Poster Advertising

ELRC information posters were advertised in the education faculties of 18 tertiary institutions.

Goal 6

Strengthen social dialogue through supporting and participating in education initiatives such as the National Education Collaboration Trust (NECT).

The Teacher Appreciation Support Programme (TASP) was established during the period under review. The Council is one of the key stakeholders of this Committee which seeks to uplift the teaching profession.

The ELRC participated in the World Teachers’ Day Gala Dinner event on 30 October 2015.



3. PERFORMANCE INFORMATION BY PROGRAMME

3.1 Programme 1: Administration Services

Purpose

The purpose of Programme 1 is to provide support services to the core operational functions of the Council; to ensure that it delivers an efficient and effective service based on its mandates.

Sub-programmes

• Finance and Administration

• Compliance, Risk and Audit

• Mobilising Employee Services

• Communication Services

Strategic Objectives

• To instil fiscal discipline, sound corporate governance and compliance with regulatory framework

• 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

• Professionalise the ELRC by investing in human capital

• To promote the image of the ELRC

Annual targets for 2015: Administration Services

Administration Services

Programme Performance

Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016

Actual Achievement2015/2016

Deviation from planned

target to Actual Achievement for

2015/2016

Comment on deviations

Status

Achieve unqualified audit opinion from external audit at year end

n/a Introduction and implementation of ERP system upgrade completed during the financial year 2015/16

Not Achieved 100% The procurement of the ERP system has been cancelled due to budgetary constraints

Quality assurance and effectiveness of the internal control systems

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

Achieved

All 25 planned audit engagements were performed

None





Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016




2015/2016


Status

Presentation of quarterly risk reports on implementation of risk management

n/a Presentation of quarterly risk reports and risk monitoring reports to the Audit Committee (AC)

Achieved

A Risk Assessment Report and three Risk Management Reports were presented to the Audit Committee

None

Compliance management – approved Compliance register

n/a Compliance register updated and reviewed by the AC quarterly (4)

Achieved

The 2015/16 Compliance Register and three Compliance Management Reports were presented to the Audit Committee

None

Thirty (30) employees to participate in human development programmes matching entity requirements

Achieved

53

30 employees to participate in human development programmes matching entity requirements

Achieved

45 employees trained

+15 The deviation on training was mainly because of compliance reasons

Eight Safety, Health and Environment (SHE) representatives had to be trained on first-aid for compliance with the Occupational Health and Safety (OHS) Act, which requires SHE committee members to have basic first-aid training





Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016




2015/2016


Status

Thirty (30) employees to participate in human development programmes matching entity requirements

Achieved

53

30 employees to participate in human development programmes matching entity requirements

Achieved

45 employees trained

+15 Furthermore, 11 employees from Finance, Supply Chain and Human Resources (HR) were trained on Excel Intermediate training. This is because these employees mainly utilise Excel in their daily duties and required training to improve on productivity

All vacant funded positions filled within three (3) months of request received

n/a 30 employees to participate in human development programmes matching entity requirements

Achieved

All recruitment was done within 90 days or less

None

Number of employee wellness programmes conducted

Achieved

4

Six employee wellness programmes during the financial year

Achieved

Six wellness events were conducted

None

Advertising and marketing to improve the image of the Council

Achieved

Survey research conducted

and findings presented to management

(Sample: 1 862 educators)

Conduct four (4) advertising campaigns to market the Council in different media (e.g. magazines, radios, social media, newspapers, exhibitions, distribution of material, etc.)

Achieved

ExhibitionsEducation Week at Gallagher Estate from 01 to 02 July 2015

Inspired Teacher’s Conference at Varsity College on 18 August 2015 in Sandton

ILERA Congress from 07 to 11 September 2015 in Cape Town

SACE Inaugural Fun Walk on 19 September 2015 in Centurion

Exhibition at the Naptosa National Congress on 28 October 2015

+1 The Council was afforded marketing opportunities throughout the 2015/16 period, through its partnership with TASP





Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016




2015/2016


Status

Advertising and marketing to improve the image of the Council

Achieved

Survey research conducted

and findings presented to management

(Sample: 1 862 educators)

Conduct four (4) advertising campaigns to market the Council in different media (e.g. magazines, radios, social media, newspapers, exhibitions, distribution of material, etc.)

Print Media

Advertorial in SAOU’s August 2015 newsletter

Distribution of Material

Provincial Strategic Planning Workshops (9) in February and March 2016

Naptosa’s Annual Staff Training in January 2016

Poster Advertising

In the education faculties of 18 tertiary institutions

Stakeholder Events

Council participated in World Teachers’ Day Gala Dinner event on 30 October 2015

+1 The Council was afforded marketing opportunities throughout the 2015/16 period, through its partnership with TASP

* After approval and publication of the APP, an error was identified in terms of the planned target on vacant posts (All vacant funded positions were filled within three months of request received). The correct planned target is: Vacant positions filled within three months of request received.

Overview of the Administration Services Department’s performance for the 2015/16 financial year

Internal Audit

The following audit engagements were finalised:

• Payroll

• Finance (Financial Discipline Review, Special review by external auditors)

• CBS (national and nine provinces)

• Dispute Management Services (DMS)

• Supply Chain Management (inventory management, asset management, procurement and contract management)

• Follow-ups (AG management report and prior Internal Audit (IA) reports)

• Review of Risk Management process

• HR (leave management and time and attendance, training and development)



• Information and communications technology (ICT) general controls

• Performance information

Internal Audit performed the following ad-hoc engagements:

• Attending and observing stock counting processes

• Observed the fairness and transparency of the tender and request for proposal briefing sessions; opening of received

proposals; and evaluation processes for all awarded tenders and RFPs

• Reviewed the effectiveness of time and attendance after implementation of the biometrics system

The following policies were reviewed, updated and submitted for approval to the General Secretary (GS):

• Risk Management Policy

• Policy on Delegations and Scheduling of Authorisation Levels

• Performance Information Policy

• Management Corrective Action Plan Policy

Two new policies were developed, namely, the Risk Management Framework and Compliance Management Policy and Operating Procedure Manual.

Internal Audit assisted the external auditors with collating supporting documentation needed for audit purposes. The unit also developed the EXCO Charter and Performance Assessment Template.

Research and Media

The Council implemented a media strategy during the period under review that was focused on creating brand awareness amongst educators in public education. The Council participated in five exhibitions during the period under review and distributed branded material at two stakeholder events: World Teachers’ Day Gala event and Naptosa’s Annual Staff Training. In addition, branded material was also provided for each of the nine ELRC Provincial Strategic Planning workshops which were held in February and March 2016.

The Council also published an advertorial in SAOU’s August 2015 newsletter. As one of the key stakeholders at the ILERA Congress in September 2015, the Council’s logo featured in the conference brochure and the congress bag that was handed out to all delegates.

To reach new entrants in the system and create awareness of the Council, an A3 poster advert was sent to the education faculties of 18 universities across the country.

The following institutions received posters:

1. Walter Sisulu University2. Rhodes University3. University of Pretoria4. University of Fort Hare5. North-West University6. University of the Free State7. University of Venda8. Central University of Technology, Free State9. University of Zululand10. National Institute for Higher Education: Northern Cape11. National Institute for Higher Education: Mpumalanga



12. University of KwaZulu-Natal 13. University of Western Cape14. University of Stellenbosch15. Tshwane University of Technology16. Cape University of Technology17. North-West University, Mafikeng Campus18. University of Johannesburg

Information Technology

The IT department was established during the 2015/16 financial year. The unit managed to address the following audit findings:

• Auditor-General Findings

• Draft policy on IT System Security

• Draft policy on Information Technology Government framework

• Draft policy on Change Programme Management

• Information Technology Strategic Plan

Internal Audit findings

• Limiting user access to the area of work

• List of persons with authorised access to server room

• Timely disabling or termination of employee user accounts who left the organisation

• Password sharing amongst employees

• Inadequacies over returning of computer equipment/assets for clearance immediately upon termination of

employment or transfer

• Proper maintenance of IT infrastructure

In addition, the following were achieved:

Three ICT policies were approved during the period under review, namely, the ELRC User Access Control; the IT Change Management Policy; and the Patch Management Policy.

Four policies were developed during the period under review, namely, the IT Governance Framework; the Business Continuity Plan (BCP); IT Change Management Policy; and User Access System Policy.

The Council’s Password Policy was implemented, which allows for a password change every 30 days. The auto-screen locking procedure that was also implemented will ensure added protection of confidential information.

The Windows Server Update Service (WSUS) server was configured for deploying security updates.

IT configured a secure Virtual Private Network (VPN), for employees to work from home or outside of the office.

A SharePoint-based Intranet for ELRC internal communications with rapid response was also launched during the period under review. The Intranet automates the following functions that were previously done manually: IT Logging Fault; Driver Request; Travel Management; Leave application; and Petty cash application. Portals were also created for divisions where users can share documents.

IT implemented a new unified 3CX telephone system, which will improve productivity, as it features desktop-based control and extension management. All computers were also configured to run on the domain to ensure policy enforcement from the server.



The unit upgraded Windows XP machines to the new operating system to ensure compatibility with new systems.

The biometric system was installed at the new ELRC building to monitor attendance and access to different departments. The IT installation (network system) at the new ELRC building includes new Wi-Fi to ensure reliable connectivity for all users.

The implementation of an audiovisual conferencing system is underway. This is a cost-effective method of conducting meetings and will also help to improve communication and reinforce relationships.

ICT Control Forms

The IT department put controls in place to safeguard the organisation’s data from both fraud and accidental loss. The following ICT control forms exist to enhance the ICT environment and management:

• Authorisation form to work on ELRC network

• User access request form

• IT asset removal form

• IT requisition form

• IT equipment distribution

IT also established a Help Desk which provides technical assistance to staff from the Intranet. The Help Desk responds to an array of requests for assistance, which includes email problems, desktop issues, service outages, etc.

There are only three findings that remain, and they will be addressed in the 2016/17 financial year. These are as follows:

• The approval of IT policies

• Complete IT asset register

• IT asset cycle plan

Strategy to overcome areas of underperformance

The introduction and implementation of an ERP system upgrade were cancelled due to budget constraints during the period under review.

Changes to planned targets

No changes were made to planned targets.

Linking performance to budget

2015/16 2014/15

Programme Name Budget

Actual Expenditure

(Over)/Under Expenditure Budget

Actual Expenditure

(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration Services 23 308 21 495 1 813 17 257 16 176 1 368

Total 23 308 21 495 1 813 17 257 16 176 1 368



3.2 Programme 2: Dispute Management Services

Purpose

The purpose of Programme 2 is to manage disputes proactively. This includes prevention of disputes by, for example, defusing conflicts that can disrupt teaching and learning; it also includes dispute resolution. Professional development and training is included in Programme 2 to ensure that DRPs and Panellists operate effectively.


• Provide efficient dispute resolution services

• Ensure quality over arbitration awards

• To provide training to DRPs and/or Negotiators

• To provide Professional Development to Panellists

Dispute Management Services


Indicator

Actual Achievement

2014/2015

Planned Target2015/2016

Actual Achievement

2015/2016



2015/2016


Status

Provision of dispute resolution services

Scheduling cases in jurisdiction for conciliation within 30 days of receipt

Not Achieved

67%

464 disputes in jurisdiction, and 309 were conciliated within 30 days

Scheduling cases in jurisdiction for conciliation within 30 days of receipt

Not Achieved

94%

378

Out of 403 cases conciliated, 378 were conciliated within 30 days

6%

25

No achievement of the objective can be attributed to school recess periods and the unavailability of commissioners in certain rural areas

To schedule cases for arbitration within 45 days after conciliation

All cases within 45 days

Not Achieved

81%

182

Out of 224 cases arbitrated, 182 cases were arbitrated within 45 days

19%

42

School recess periods. Unavailability of commissioners in certain rural areas

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

All cases awarded Achieved

100%

None





Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status

Facilitate session to train DRPs and/or Negotiators

Achieved

345

Six (6) training sessions conducted annually for DRPs and/or Negotiators

Achieved

11 training sessions conducted

+5 All provinces were trained. One additional training was done to complete CTU-ATU Commissioners course. Additional training was also conducted for KZN DRPs

Facilitate session of professional development for

Panellists

Achieved

94

Four (4) training sessions conducted annually for Panellists

Not Achieved 4 The training has been deferred to the next financial year. The training which was secured was cancelled due to budgetary constraints

Overview of the Dispute Management Services Department’s performance for the 2015/16 financial year

Disputes Referred by Financial Year

A total of 858 disputes were received by the Council for the 2015/16 financial year. This marked an increase of 96 disputes, compared to the 762 received in the 2014/15 financial year. The nature of disputes referred to the Council during the period under review predominantly relates to Unfair Labour Practices relating to “Promotion and Appointments” and “Unfair Dismissals”. The Council intends to reduce the number of disputes referred by embarking on training for Parties on grievance and disciplinary procedures.

Disputes Referred by Jurisdiction

For the period under review, the ELRC received a total of 858 disputes. Of these, 459 disputes were deemed to be “In Jurisdiction” and 399 disputes were found to be “Out of Jurisdiction”.



Disputes referred by Province

KwaZulu-Natal referred the highest number of disputes which totalled 174. This was followed by Eastern Cape with 169 and Gauteng with 136 disputes. Limpopo referred 84 disputes; Western Cape referred 76 disputes; Free State referred 68 disputes; North West referred 69 disputes; Mpumalanga referred 43 disputes; and Northern Cape referred 39 disputes.

In comparison to the 2014/15 financial year, the Council has seen fluctuations in disputes in the 2015/16 financial year. Eastern Cape increased with 20 disputes; KwaZulu-Natal with 38 disputes; Limpopo with 25 disputes; North West with 15 disputes; Northern Cape with 11 disputes; Gauteng increased slightly with three disputes; and Mpumalanga increased with only one dispute. On the other hand, Western Cape decreased by nine cases, and Free State decreased by five cases.

Nature of disputes referred

Provinces ULP Promo/App Other ULP Unfair

Dismissal

Special dismissal related to abuse of learners

BCEAInterpretation of Collective Agreements

Mutual Interest Total

EC 74 30 28 0 13 24 0 169

GP 30 32 53 8 8 5 0 136

FS 5 23 22 0 2 16 0 68

LP 20 36 19 2 5 2 0 84

MP 6 15 15 3 3 1 0 43

NW 1 12 32 0 19 5 0 69

NC 11 9 15 2 1 1 0 39

WC 29 12 28 0 3 4 0 76

KZN 72 49 26 1 7 19 0 174

NAT 0 0 0 0 0 0 0 0

Total 248 218 238 16 61 77 0 858



In jurisdiction as per nature of dispute

Provinces ULP Promo/App Other ULP Unfair

Dismissal

Disputes related to abuse of learners

BCEAInterpretation of Collective Agreements

Mutual Interest Total

EC 47 12 9 0 5 14 0 87

GP 18 12 26 5 5 2 0 68

FS 3 10 15 0 2 15 0 45

LP 7 21 9 1 3 2 0 43

MP 1 8 10 3 1 0 0 23

NW 1 8 24 0 14 3 0 50

NC 4 4 7 2 0 1 0 18

WC 15 6 17 0 1 3 0 42

KZN 29 25 13 0 4 12 0 83

NAT 0 0 0 0 0 0 0 0

Total 125 106 130 11 35 52 0 459

Of the 858 disputes that were received by the Council, 459 were found to be jurisdictional. Of the 459 that were jurisdictional, 125 related to Promotion and Appointments, 130 to Alleged Unfair Dismissals and 106 to Other ULPs. A total of 52 disputes related to Interpretation of Collective Agreements, whilst 35 related to Basic Conditions of Employment Act (BCEA). A total of 11 disputes involved learners.

Out of jurisdiction as per nature

ProvincesULP Promo/

AppOther ULP

Unfair Dismissal

Disputes related to abuse of learners

BCEA Interpretation of Collective Agreements

Mutual Interest

Total

EC 27 18 19 0 8 10 0 82

GP 12 20 27 3 3 3 0 68

FS 2 13 7 0 0 1 0 23

LP 13 15 10 1 2 0 0 41

MP 5 8 4 0 2 1 0 20

NW 0 4 8 0 5 2 0 19

NC 7 5 8 0 1 0 0 21

WC 14 6 11 0 2 1 0 34

KZN 43 24 13 1 3 7 0 91

NAT 0 0 0 0 0 0 0 0

Total 123 113 107 5 26 25 0 399

Of the 399 disputes found to be Out of Jurisdiction, 123 related to ULP-Promotion and Appointments, 113 were Other ULPs, 107 were related to Unfair Dismissals, 26 related to BCEA, 25 related to Interpretation of Collective Agreements, and five related to special disputes (abuse of learners).

It must be noted that the substantive amount of disputes that were screened as Out of Jurisdiction were due to defective referrals and incomplete referrals, including those that were referred outside time frames and condonations that were not granted.



Processes Conducted: 01 April to 31 March 2016

Provinces Conciliation/Pre-arbitration Arbitration Total

KZN 77 155 232

GP 69 201 270

FS 49 118 167

EC 74 221 295

WC 39 91 130

NC 17 42 59

MP 22 47 69

NW 36 122 158

LP 46 91 137

NAT 0 0 0

Total 429 1 088 1 517

A total of 1,517 events were conducted for the 2015/16 financial year. Of these, 429 were conciliations and 1,088 were arbitration processes. The statistics reveal that all conciliations were concluded in a single event. The Council had an increase of 224 events in the 2015/16 financial year, as compared to 1,293 in the 2014/15 financial year. This can be attributed to the increase in the number of referrals received in the 2015/16 financial year.

Dispute by Outcomes

The ELRC finalised a total of 538 disputes during the 2015/16 financial year. A total of 217 arbitration awards were rendered. A total of 60 disputes were settled at arbitration, whilst 30 were settled at conciliation. A total of 117 were withdrawn, with 50 being withdrawn at conciliation and 67 withdrawn at arbitration. A total of 14 cases were dismissed at arbitration, and 100 rulings were handed down during this period.

Outcome of Special Disputes

A total of 19 special disputes were referred to the Council during the period under review. These disputes involved the child/learner as victim or witness. Six awards relating to special disputes were rendered in the period under review. The speedy finalisation of special disputes is dependent on the complexity of the cases as well as the number of adjournments and postponements granted. Some of these special disputes are inherently complex and require a great number of witnesses.

Carried-over cases per financial year

A total of 194 cases is to be carried over to the first quarter of the 2016/17 financial year. Of these, 152 are for the period under review, whilst 42 cases are from the previous years and remain unresolved.

Postponements and Adjournments

A total of 246 cases were postponed for the period under review, and 83 adjournments took place. The adjournments are as a result of the complex nature of cases, and these cases are not finalised during the first hearing. Postponements occur as a result of matters not sitting due to the fact that some Panellists are unable to conclude pre-arbitration minutes with the Parties (as those Parties either come unprepared to the hearing or the person attending the hearing was appointed on the day of the hearing and does not know much about the dispute). Clause 55 of the Council’s constitution, however, provides for the postponement of matters.

Labour Court Reviews

In the period under review, a total of 73 Arbitration Awards/Rulings were referred to the Labour Court for review in terms of Clause 71 of the ELRC constitution or Section 145 of the Labour Relations Act of 1995, as amended. The remaining 73 review applications are still in the process of being heard by the Labour Court.




The Council continues to recruit interpreters and intermediaries in order to overcome delays and postponement problems associated with unavailability of such persons when they are so requested. These persons are very critical in ensuring that the rights of the child are protected in disputes where the child is attending arbitration processes, either as a victim or witness. Furthermore, in hearings where a child is a victim or a witness, the Council continues to ensure that appropriate venues are booked for these special hearings, e.g. Magistrate Court, Children’s Court or Teddy Bear Clinic (Johannesburg) and the Department of Social Development in the Free State and Northern Cape. The Council will also ensure that intermediaries are appointed to protect the rights of the 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 will issue an advertisement to recruit commissioners, interpreters and intermediaries in the first quarter of the 2016/17 financial year.




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


14,474 14,131 343 10,115 11,188 -343

Total 14,474 14,131 343 10,115 11,188 -343



2. DISPUTE MANAGEMENT SERVICES – HIGHER EDUCATION AND TRAINING (FET)

2.1 Cases referred

During the 2015/16 financial year, a total of 87 Further Education and Training Colleges (FETC) disputes were referred to the Council. The number of disputes referred decreased by 11 as compared to 98 disputes received in the 2014/15 financial year. Of these, 54 were found to be jurisdictional, 30 were Out of Jurisdiction, and three had condonation applications.

2.2 Disputes referred by nature

Of the 87 disputes referred, 44 related to Dismissals; 25 related to ULP-Other; six related to Promotion and Appointment; 10 related to BCEA; and two related to Interpretation of Collective Agreements.

ULP-Prom/App Other-ULP Dismissals BCEA Application/Interpretation Total

6 25 44 10 2 87

2.3. Events/Processes conducted

During the period under review, a total of 187 events/processes were conducted as follows:

Conciliation/Pre-arbitration Arbitration Total

50 137 187

2.4 Dispute outcomes

During the period under review, 57 cases were finalised. Seven cases were withdrawn at conciliation, and seven were withdrawn at arbitration. Nine cases were settled at arbitration, three were settled at conciliation, whilst three case were dismissed at arbitration. Sixteen arbitration awards were rendered, and 12 rulings were issued.

WithdrawnConc

DismissedConc

SettledConc

WithdrawnArb

DismissedArb

SettledArb

Award Ruling Total

7 0 3 7 3 9 16 12 57

2.5 Postponements and adjournments

During the period under review, 28 requests for postponement were granted. There were 14 adjournments to matters which were convened for a hearing.

2.6 Cases carried over from previous financial years

A total of 21 cases are being carried over to the 2016/17 financial year; five of these cases relate to the 2014/15 financial year.





TRAINING AND DEVELOPMENT SERVICES

Training of DRPs

The ELRC arranged 11 training sessions for DRPs. They were trained on Practice in Education Labour Law; Substantive Law; Ethics and Social Justice; Managing Dismissals; Unfair Labour Practices; and Labour Dispute Resolution. The CTU-ATU Practical Labour Law Training (Commissioners course) provided by NMMU was completed, and 12 certificates were issued to the candidates.

During the 2015/16 financial year, the Council arranged facilitated training of DRPs as follows:

• KwaZulu-Natal: 12th, 13th and 14th August 2015

• Mpumalanga: 26th, 27th and 28th August 2015

• Free State: 16th, 17th and 18th September 2015

• Eastern Cape: 5th, 6th and 7th October 2015

• Gauteng: 7th, 8th and 9th October 2015

• Limpopo: 10th, 11th and 12th November 2015

• Western Cape: 27th, 28th and 29th January 2016

• North West: 24th, 25th and 26th February 2016

• Northern Cape: 16th, 17th and 18th March 2016

Additional training was conducted for KwaZulu-Natal DRPs on discipline and grievance handling.

Professional Development and Training Workshops for Panellists

Professional development and training of Panellists has been deferred to 2017/18 financial year.



3.3 Programme 3: Collective Bargaining Services

Programme 3.1: Collective Bargaining – National

Purpose

The purpose of Programme 3 is 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 of teaching and learning 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.

Sub-programmes

• Collective Bargaining (Provincial)

• Research Services

• Dispute Prevention Support Services


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

• To administer research programmes on identified issues for research on evidence-based teacher welfare and national

development

• To facilitate dispute prevention support services through providing effective administrative functions to shop stewards

Collective Bargaining Services: National


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status

Schedule ad hoc meetings within fourteen (14) days from date of agreement

n/a All ad hoc meetings scheduled within fourteen (14) days

Achieved

24 meetings

None

Issue notice for scheduled meetings within fourteen (14) days

n/a All meetings scheduled within fourteen (14) days

Achieved

29 meetings

None

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

n/a Table management plans annually

Achieved

Management Plan was tabled and approved in the bargaining meeting on 22nd October 2015

None



Collective Bargaining Services: National


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status

Administer resources allocated to approved research programmes

Not Achieved Approved (by EXCO) annual budgets/resources for identified research

Achieved

Three Projects:

• PAM – Advocacy & Training

• ECD

• Job Evaluation

None

Performance Overview of Collective Bargaining Services: National (for the 2015/16 financial year)

Council concluded Collective Agreement 2 of 2015: “Amendment of Clauses 12.1(l) and 16.2.11 of the ELRC constitution at the bargaining meeting held on 20th August 2015, where the term of office of the Chairperson and Deputy Chairpersons and the members of the Audit Committee was extended.

Training was conducted for Council members on King III Corporate Governance, which was necessitated by the delisting of the ELRC as a Schedule 3A Public Entity and Council’s commitment to maintain its practices of good governance in serving teachers and the cause of education in a transparent and honest manner.

A major achievement was the Revised PAM, which was gazetted by the Minister of Basic Education on 12th February 2016.

A service provider, 21st Century Pay Solutions, was appointed to conduct the job evaluation for Circuit Managers, and the Job Profile and Sizing Model Report for Circuit Managers was presented to the EMS for Office-Based Educators Task Team on the 29th February 2016.

A service provider, LVG Consulting, was appointed to conduct in-country research on the conditions of service for Grade R Practitioners, and the research report was presented to the Research Task Team on 4th March 2016.

A review of the ELRC constitution to align it with the current status of the ELRC as a bargaining council, in line with the Labour Relations Act as amended, is in its final stages. The general provisions and the dispute prevention procedures documents of the ELRC constitution are well on course for completion.


Not applicable




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Collective Bargaining Services

36,807 26,524 10,283 30,602 32,741 2,828

Total 36,807 26,524 10,283 30,602 32,741 2,828



Programme 3.2: Collective Bargaining – Provincial

Purpose

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

3.2.1 Eastern Cape

Key performance indicators, planned targets and actual achievements

Collective Bargaining Services: Eastern Cape


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status

Consultation, Implementation and Monitoring of Collective Agreements and Policies

Post Provisioning

A consolidated report on the consultation process for post provisioning is available

Achieved

4 meetings


Reports (4) Achieved

Four (4) meetings were convened during the period under review, where reports on PPN were presented

Meeting dates:

27th August 201521st September 201529th September 201522nd October 2015

None

Incentives for Educators

Monitoring reports on the implementation of incentives for educators are available

Achieved

4 meetings


Meetings (4) Achieved

Four (4) meetings were convened during the period under review on Incentives for Educators

Meeting dates:

11th May 201510th September 201527th October 2015 05th February 2016

None





Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Employee Wellness

Monitor the introduction and implementation of employee wellness activities

n/a Facilitate and convene meetings in line with the ELRC constitution for tabling of reports

Not Achieved

Only one (1) meeting took place on 11th May 2015

Three (3) meetings

scheduled for 10th September 2015; 28th October 2015; and 19th February 2016 did not sit

The meetings did not sit due to the absence of Department representatives.

Teacher Development

Monitoring reports on provision of teacher development programmes

n/a Meetings (2) Achieved

Two (2) meetings were convened during the period under review on Teacher Development

Meeting dates:

14th May 2015

29th October 2015

Dispute Prevention

Monitoring reports on the categories and status of the grievances, misconduct and disputes lodged

n/a Meetings (4) Not Achieved

Only three (3) meetings took place on:

21st May 201514th September 201528th October 2015

One (1) meeting did not sit on 18th February 2016

One meeting did not sit due to the absence of Department representatives.

Overview of the Eastern Cape Chamber’s performance for the 2015/16 financial year

Post Provisioning 2016 – Consultation meetings on Post Distribution by the HOD:

No meeting has been called to conclude on the distribution of posts for PPN 2016.

Even though there were six meetings held during the period under review, two meetings were held for the distribution of posts; however, they did not actually conclude and come up with the final report on the post provisioning and distribution of posts.

No final report is therefore available on the distribution of posts for PPN 2016.

Proposed Management Plan for PPN 2016

The proposed Management Plan was presented and adopted at the Chamber meeting of 25th January 2016.

No follow-up meetings have been called for the implementation of the Plan and for monitoring of the Plan.



Incremental Introduction of African Languages (IIAL):

A Task Team meeting was called and sat on 17th February 2016. A workshop was convened on 14th and 15th March 2016 to deal with the challenges in the implementation of IIAL.

Monitoring of Infrastructure Plans and LTSM delivery to schools:

No report was received on Infrastructure Plans. No report was received and submitted on Learning and Teaching Support Material (LTSM).


The Employer has committed to take action to resolve the problem within its members. A letter was written to the Leader of the Employer delegation and Acting Secretary General (SG) on non-attendance of members of some of the Task Teams, with specific reference to the Dispute Task Team and Teacher Development. No response has been received as yet.

A meeting with the Senior Management of the Department of Education in the Eastern Cape is needed to resolve the problems encountered by the Chamber of the province and to clarify the role played by the ELRC in relation to labour relations in education.


No changes were made to the planned targets.


2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,067 846 221 1,133 970 163

Total 1,067 846 221 1,133 970 163



3.2.2 Free State


Collective Bargaining Services: Free State


Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016




2015/2016


Status


Post Provisioning


Not Achieved

Consultation was concluded and staff establishments issued on 13th September 2013



Meeting dates:

31st July 2015 23rd September 20158th December 20154th March 2016

None



Not Achieved

Monitoring reports available

935 posts were identified; however, due to transfers and farm school closure, the number reduced to 754



Meeting dates:

11th August 201523rd September 20158th December 20154th March 2016

None

Employee Wellness



Achieved

Four (4) meetings were convened during the period under review on Employee Wellness

Meeting dates:

5th June 201523rd September 20158th December 20154th March 2016

None

Teacher Development




Meeting dates:

5th June 20154th March 2016

None





Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016




2015/2016


Status


Dispute

Prevention Monitoring reports on the categories and status of grievances, misconduct and disputes lodged


Four (4) meetings were convened during the period under review on Dispute Prevention

Meeting dates:

12th June 201517th August 20159th September 201529th February 2016

None

Overview of the Free State Chamber’s performance for the 2015/16 financial year

The Free State Chamber managed to perform in accordance with the APP wherein programme performance indicators were implemented as follows:

Post-provisioning consultation meetings were convened, and Parties expressed dissatisfaction in relation to the 1:35 ratio that was initially presented. After lengthy deliberations, the consultation process was concluded with Parties reaching consensus on the revised learner ratio of 1:30. Following the conclusion of the consultation process, a total of 20,460 educator posts were distributed to schools for the 2016/17 financial year.

In the last quarter of the 2015 financial year, the Chamber received a report on the placement of educators additional to establishments, which highlighted that out of 1,191 educators declared in excess, 813 educators have already been placed, and 378 have not yet been placed. Progress on the placement of 591 temporary educators on substantive posts; 132 Funza Lushaka; 52 departmental bursary holders; and 314 temporary educators against promotional posts was also presented.


The Chamber received and adopted reports showing that 731 educators were beneficiaries of incentives and confirmed that the policy was fully implemented. However, Parties’ attention was further drawn to the fact that the number of educators enjoying incentives may vary from time to time as a result of the closure of farm schools for hostel projects and the appointment of new educators or transfer of educators to viable farm schools in terms of post provisioning norms.

Employee Wellness

Implementation reports on health and wellness activities with respect to the four pillars were presented with the information on educators who participated in the HIV/AIDS counselling and testing, and screening for TB, blood pressure, diabetes, and cholesterol. Policy on Incapacity Leave and Ill-Health Retirement (PILIR) cases under health and productivity management as well as education and training were provided in relation to wellness management. A total number of 1,555 female and 1,222,777 male condoms were distributed to all the districts as well as head office. The Employee Health and Wellness (EHW) Forum was being attended to by Parties to address challenges and other issues related to the wellness of employees.



Dispute Prevention

Provincial Dispute Prevention Task Team Meetings were convened, except in the third quarter, to receive statistical information on grievances lodged with the Department, disputes declared with the dispute resolutions services, nature and trends of cases that were looked into, and mechanisms that were developed to address challenges.

Teacher Development

The training programme for 2015/16 was presented in the first quarter, and it was reported that emphasis would be placed on teacher attendance, improving teacher content knowledge and teaching skills. Progress recorded per type of training provided for educators in each district was received and adopted by Parties.

IQMS and Performance Management Development System (PMDS) implementation progress was reported as follows:

a) Monitoring and support visits to schools have been an ongoing activity, and visits took place at 224 schools between July and September 2015. Some of the challenges were that educators did not have Personal Growth Plans, there was no record to reflect evidence that educators engaged in self-development activities, lack of monitoring and support in line with developmental needs by School Management Teams in relation to Integrated Quality Management System implementation. Intervention mechanisms had been put in place to intensify follow-up visits, and a reporting template has been developed to monitor progress at the school level in response to findings during visits. Pay progression was paid to educators who qualified with effect from 1st July 2015.

b) Recommendations made based on the findings were that schools should include names of officials to provide support as per the School Improvement Plan, and the Personal Growth Plan should also include the person responsible and subject where development is needed.

c) Submission of year-end cycle summative evaluation documents was concluded by schools on 23rd November 2015. Ninety per cent (90%) of schools complied in terms of submitting required documents as evidence that evaluation and the mop-up process took place early in 2016.

Campaign on Sexual Harassment and Strategic Plan Workshop

The Chamber successfully launched a campaign on sexual harassment against children and also conducted the strategic plan workshop for the development of the APP and Budget for the 2016/17 financial year.


To address underperformance on dispute prevention, the Chamber resolved that provincial Dispute Prevention Task Team meetings would be convened once a quarter to ensure that a Task Team deals with its mandate and reports to the Chamber.

Quarterly Task Team meetings will enable district committees enough time to investigate cases received at district level and submit progress recorded for consolidation into the provincial Task Team reports to be presented in all Chamber meetings.






2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,216 807 409 1,159 1,059 100

Total 1,216 807 409 1,159 1,059 100


3.2.3 Gauteng


Collective Bargaining Services: Gauteng


Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016



target to Actual

Achievement for 2015/2016


Status


Post Provisioning


Achieved

The Chamber meeting of 26th November 2014 endorsed the PPN and a circular implementing the Post Provisioning Norms

500 Growth Posts were distributed

Reports (4) Not Achieved

Only two (2) meetings took place on:

13th November 2015

4th December 2015

Two (2) meetings were not held

This objective was not achieved due to unavailability of Parties



Not Achieved Meetings (4) Not Achieved

No meetings were held during the period under review

Scheduled meetings to deliberate on the matter were deferred indefinitely

Four (4) meetings were not held

The province has been encountering difficulty in its desire to implement the policy. The Chamber has since agreed to remove this policy as a target for the 2016/17 financial year

Employee Wellness



Not Achieved

Only one (1) meeting was held on:

15th March 2016

Three (3) meetings were not held

This objective was not achieved due to unavailability of Parties

Teacher Development




Meeting dates:4th December 2015 15th March 2016

None





Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016



target to Actual

Achievement for 2015/2016


Status


Dispute Prevention

Monitoring reports on the categories and status of grievances, misconduct and disputes lodged



Meeting dates:19th August 201527th October 201518th-19th February 201611th March 2016

None

Overview of the Gauteng Chamber’s performance for the 2015/16 financial year

The Chamber has in the period under review succeeded in attaining targets set espoused in the 2015/2016 APP. The performance of the 2015 Matric Class cannot be divorced from the performance of the Gauteng Chamber. A closer analysis of the result in question reflects a qualitative outcome which is owing to the maintenance of labour peace prevalent in our province.

The Chamber has concluded negotiations on a Draft Collective Agreement linked to recruitment processes of educators. The Draft Collective Agreement will, once ratified by the Council and signed by Parties, lead to a decline in promotional posts disputes. It shall to a large extend affirm credibility to the recruitment process.


The province has acknowledged the difficulty in the implementation of the Incentives for Teachers policy. The province has since adopted an APP for 2016/2017 that is realistic, easy to measure and achievable. The policy in question does not feature in the Chamber’s APP for the new financial year. However, it is important that the policy be revisited and areas that are difficult to actualise be eliminated. The issue around the purpose of the policy should be clarified and the selection criteria be simplified whilst equally treading carefully so as to avoid division among Labour Parties.




2015/16 2014/15

Programme Name BudgetActual

Expenditure(Over)/Under Expenditure Budget

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,193 794 399 1,180 1,066 114

Total 1,193 794 399 1,180 1,066 114




3.2.4 KwaZulu-Natal


Collective Bargaining Services: KwaZulu-Natal


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Post Provisioning


Not Achieved

3 meetings

Reports (4) Not Achieved

Only three (3) meetings took place on:

10th June 20153rd September 201530th November 2015

One (1) meeting was not held.

There were no new posts created subsequent to the consultation meeting on post creation. There was therefore no need for the consultation meeting on post distribution to be held

No report was tabled at the Chamber, and no posts were created for distribution



Not Achieved

3 meetings

Meetings (4) Not Achieved

Planned workshop was not held in the first quarter

No Chamber meeting was held in the second quarter

Four (4) meetings were not held

In the first quarter of the 2015/16 financial year, Chamber activity was affected by the deadlock in salary negotiations at the Public Service Coordinating Bargaining Council (PSCBC), and no workshop took place.

In the second quarter, the Task Team awaited the response from the Employer for an additional R10 million top-up to add to the allocation of R114,5 million; therefore, no report was ready to be presented to the Chamber.



Collective Bargaining Services: KwaZulu-Natal


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status

Employee Wellness



Not Achieved

One (1) scheduled meeting was postponed, as Parties did not form a quorum on the day of the meeting


The Chamber meeting set for 30th September 2015 to adopt the report from the Task Team had to be postponed on the morning of the meeting due to the unavailability of Parties, which affected the quorum

Teacher Development




Meeting dates:

30th June 2015

30th March 2016

None

Dispute Prevention




Meeting dates:

30th June 201530th November 201515th December 201530th March 2016

None

Overview of the KwaZulu-Natal Chamber’s performance for the 2015/16 financial year

The Parties to the KZN Chamber remain firmly committed to contributing towards the Quality Teaching and Learning Programme (QLTP). To this end, the KZN Chamber has adopted this campaign as the overarching theme for all programmes of the Chamber.

It is pleasing to report that the performance of the KZN Chamber for the period under review had been very productive and rewarding, despite the first and second quarters having been affected due to the deadlock in salary negotiations (no bargaining meetings took place) and the last-minute postponement of the Chamber meeting of 30th September 2015



respectively. However, the productivity and effectiveness of the KZN Chamber must also be measured by the additional matters which were tabled and discussed.

Additional items tabled and dealt with at the Chamber, some of which remain work in progress:

A Task Team meeting was held on 1st April 2015 to deliberate on the status of protected temporary educators and the placement of Funza Lushaka bursary holders.

Task team meetings were held on 7th April 2015 in Durban and 9th April in Ladysmith to offer some FET remainees posts for placement.

The Staffing Task Team met on 14th April 2015 to deal with problems encountered in respect of the school-based Promotions Bulletin, HRM 24 of 2014.

Task Team meetings were held on 15th April 2015 to deal with the appointment of protected temporary educators, the placement of Fundsa Lushaka bursary holders and the placement of FET remainees.

The ELRC attended and made a presentation at the KZN Education Summit held on 24th and 25th April 2015.

A comprehensive three-day workshop was held between 12th and 14th August 2015 to train DRPs. The workshop was facilitated by the National Office.

There were five Task Team meetings held to prepare for the World Teachers’ Day celebrations, which took place under the auspices of the KZN Provincial Education Labour Relations Council (PELRC). These meetings took place on 8th, 14th, 21st and 29th September 2015 and on 2nd October 2015. The World Teachers’ Day celebration on 5th October 2015 was well attended by educators. The keynote address was delivered by Mr Maluleke, Vice President of Education International.

A workshop to roll out the PPNs for 2016, as per provisions of HRM 46 of 2015, was held on 22nd October 2015.

On 6th November 2015, a follow-up workshop was held to deal with objections and queries received with regard to the issuing of PPN certificates to schools.

A workshop was held on 14th December 2015 to deal with provisions of Departmental Circular, HRM 51 of 2015, which regulated the selection and appointment of level one educator posts and therapists posts. The workshop also dealt with Departmental Circular, HRM 55 of 2015, which regulates the process to be followed when having to take over the selection process from School Governing Bodies (SGBs).

A special Chamber meeting was held on 15th December 2015 to adopt the decision to increase the stipend for Practitioners from R5,500 to R6,000.

Task Team meetings were held on 11th, 15th and 29th January 2016 to deal with placement of surplus educators.

A Dispute Resolution Workshop for Chamber delegates was held on 4th and 5th February 2016. The workshop was conducted by Adv. L Bono.

The KZN Operational Planning Workshop for 2016/17 was held on 18th and 19th February 2016.

The Parties have, through the Chamber, agreed that a total of 40 delegates (20 from the Employer and 20 from Organised Labour) will be enrolled for a one-year Postgraduate Diploma in Industrial Relations through the University of KwaZulu-Natal. The programme will commence in July 2016 and be completed in July 2017. Funding has been sourced from the Education Training and Development Practices Sector Education and Training Authority (ETDP SETA). The ELRC KZN Chamber is playing a facilitative and coordinating role in this regard. This initiative has commenced and remains work in progress.



The Parties to Chamber are currently working on two Draft Collective Agreements. These are the Draft Multi-term Agreement and the Draft Agreement to deal with the ‘migration’ of employees from the Employment of Educators Act to the Public Service Act. These Draft Agreements have been tabled at the Staffing Task Team meetings and remain work in progress.

Report of Dispute Prevention Strategies

The Dispute Prevention Task Team continued with its endeavours to promote labour peace in the province. As per the motivation of the Task Team, a comprehensive, contemporary Dispute Resolution Workshop was held for Chamber delegates on 11th and 12th February 2016. The workshop was conducted by Adv. L Bono.

Amongst other issues dealt with by the Dispute Prevention Task Team as standing items were: the presentation and analysis of reports on grievance and misconduct by the Employer; a report and analysis of dispute statistics by the Provincial Manager of the ELRC; a report on the presentation and analysis of deemed discharge in terms of Section 14 of the Employment of Educators Act, No. 76 of 1998, as amended; a report on grievances relating to conversion of educators’ status by the Employer; a discussion on contemporary case law which has implications on the Education, Formulation of Dispute Prevention Strategy (DPS) to deal with charges relating to insubordination and other categories of grievances/disputes; the non-adherence to Grievance Procedure/Centralisation of grievance handling for promotion disputes; and the status of Provincial Collective Agreement 2/2008 (Dealing with Displacement of Educators).


Whilst underperformance has been recorded in the achievement of some predetermined objectives, there have been no profound issues/challenges that would warrant serious concerns regarding the productivity and effectiveness of the KZN Chamber going forward. However, for the underperformance on some areas of the predetermined objectives during some quarters, the KZN Chamber has otherwise been very productive. This is evidenced by the number of meetings/workshops that have been held to deal with other identified activities over and above the predetermined objectives. The underperformance on the predetermined objectives in terms of the APP was occasioned by three reasons.

The first reason is the withdrawal of organised labour from Chamber activities during the first quarter due to the deadlock with salary negotiations. The second reason related to delays in furthering the work on payment of incentives during the second quarter. A response was awaited from the Employer on whether or not it could top up the existing incentive allocation by R10 million.




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000Collective Bargaining Services: KwaZulu-Natal

1,281 751 530 1,250 965 285

Total 1,281 751 530 1,250 965 285



3.2.5 Limpopo

Key,performance indicators, planned targets and actual achievements

Collective Bargaining Services: Limpopo


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Post Provisioning


Not Achieved

2 meetings



Meeting dates:

3rd November 2015 9th November 201521st January 20161st March 2016

None



Achieved

4 meetings



Meeting dates:

11th June 201528th September 201513th November 20151st March 2016

None

Employee Wellness



Achieved


Meeting dates:

22nd May 201522nd July 201528th October 201525th February 2016

None





Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Teacher Development




Meeting dates:

2nd June 201530th March 2016

None

Dispute Prevention




Meeting dates:

10th June 20152nd September 201524th November 201523rd March 2016

None

Overview of the Limpopo Chamber’s performance for the 2015/16 financial year

During the period under review, the Chamber monitored the implementation of the 2016 post establishment. The Chamber successfully monitored the payment of educators’ incentives by analysing reports as tabled. The Chamber was also monitoring progress regarding schools and educators who lodged disputes through various representatives and the inclusion, in this initiative for incentives, of schools that were formerly under the Mpumalanga administration. The ELRC’s facilitation process regarding disputes on this initiative was wrapped up.

Additional achievements

IQMS and PMDS

The pay progression for the IQMS in the 2014/15 financial year was completed in the Waterberg District, whereas the summative evaluation for 2015/16 was still ongoing in all districts. Regarding Performance Management and Development System for the 2014/15 financial year, 764 officials out of 874 (i.e. 87.41%) were paid for their respective performances.

Merging of schools

The process of merging of schools is ongoing. Out of a total of 301 schools identified for merging, 106 have been successfully merged, and 58 have already been relocated to receiving stations. Merged schools that needed to be provided with scholar transport and mobile classrooms were still 45 and 159 respectively.



Fundza Lushaka

In the 2015/16 financial year, 425 applicants/students were identified as beneficiaries of Funza Lushaka bursaries. Two of them had not completed their studies, four were appointed in other provinces, and six were not traceable. Subsequently, 413 of the beneficiaries were eligible for appointment as teachers. Notwithstanding the above, only 194 of the beneficiaries had been successfully appointed by the Limpopo Department of Education (LDoE). These newly appointed educators will bring new energies to the education department and reduce the shortage of skills in various learning areas.

The filling of vacancy lists

Out of a combined total of 782 available promotional posts advertised in the 2012 vacancy list, 779 of them were successfully filled. Regarding the 153 available promotional posts advertised in the 2013 vacancy lists, 151 of them were also successfully filled. In the 2014 vacancy list for available principals’ posts, 312 of them were filled out of a total of 333. The above will enhance stability and quality learning and teaching in schools.

School safety

Over 1,457 schools were linked to police stations, and new committees have been elected. This will enhance safety at schools. The provincial schools’ safety guidelines have been approved by the senior management of the LDoE. However, the implementation of this provincial schools’ safety guidelines was reportedly hindered by lack of funds for the school’s safety initiative.

Advocacy workshops for task teams

District task teams were workshopped in the third and second quarter on their terms of reference and functionality as commissioned by the Chamber.

Curriculum and Examinations

Parties shared and discussed information on, for example, Grade 1 to 11 curriculum and examinations as well as the state of readiness for Grade 12 examinations. The implementation of the ANA examinations was also discussed, and the Employee Parties indicated their non-availability regarding the invigilation and marking of ANA examinations.


Not applicable.




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,165 789 376 1,225 1,056 169

Total 1,165 789 376 1,225 1,056 169



3.2.6 Mpumalanga


Collective Bargaining Services: Mpumalanga


Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016




2015/2016


Status


Post Provisioning


Not Achieved

2 meetings



Meeting dates:

11th June 201510th September 20153rd December 201517th March 2016

None



Not Achieved

1 meeting



Meeting dates:

13th May 20158th September 20153rd December 201517th March 2016

None

Employee Wellness



Achieved


Meeting dates:

13th May 201511th June 20153rd December 201517th March 2016

None

Teacher Development




Meeting dates:

10th June 201518th February 2016

None





Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016




2015/2016


Status


Dispute Prevention




Meeting dates:

11th May 201528th July 20151st September 201525th February 2016

None

Overview of the Mpumalanga Chamber’s performance for the 2015/16 financial year

There were considerable achievements recorded on post provisioning norms, incentives for educators, employee wellness, teacher development, and dispute prevention as indicated below.

The Chamber was able to hold successful consultations on both the 2016 post provisioning norms and the implementation of the policy on incentives for educators that translated to 261 educators teaching maths in Grade 12 in the Comprehensive Rural Development Programme municipalities incentivised.

Parties were briefed to receive and discuss reports on the monitoring of the implementation of developmental programmes for educators (on continued professional development, financial management, curriculum management, etc.) and learners with special educational needs.

Information was shared on the implanted programmes and 703 applications on the policy and procedure on incapacity and ill health retirement.

Parties noted that there were educators who were charged with misconduct cases, a high number of educators resigning, and educators charged for doing business with the State without permission.

The following measures were agreed upon to mitigate the challenges:

• SouthAfricanCouncilforEducators(SACE)toberequestedtoconductaworkshopontheCodeofProfessionalEthics for Educators. The said institution has accepted to assist, and arrangements for the training are currently at an advanced stage.

• GovernmentEmployeePensionFund(GEPF)toberequestedtoclarifythenewamendmenttothetaxlaws.Therequired clarity was given, and Parties further requested that Government Employee Pension Fund conduct a full workshop on the matter.

• AjointforumtobeconvenedtoconductaworkshoponthePublicAdministrationManagementAct.



The following are some of the noticeable additional achievements:

The Chamber was updated on the successful implementation of Collective Agreement 1 of 2014, which recorded that 1,366 temporary educators and an additional 202 educators were respectively confirmed to be permanent, matched and placed.

In addition to the foregoing, an update was received on the professionalisation of 170 Grade R Practitioners, on all educators participating in the 1+4 project who have attended to their programmes and paid the transport stipend, and on the state of readiness for the maths, science and technology concept to be rolled out by 2016.

In monitoring the implementation of Collective Agreements on the Integrated Quality Management System, it was reported that 27,223 school-based educators were assessed and paid pay progression.

Parties were consulted and accepted the introduction of the deworming programme and the measures for the re-employment of foreign educators.

The Chamber managed to conduct workshops on the new amendments to the tax laws and the 2016/17 APP and budget.


Not applicable




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,095 748 347 1,056 984 72

Total 1,095 748 347 1,056 984 72



3.2.7 Northern Cape


Collective Bargaining Services: Northern Cape


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Post ProvisioningA consolidated report on the consultation process for post provisioning is available

Achieved4 meetingsA consolidated report on the consultation process for post provisioning is available



Meeting dates:

23rd June 201511th August 20159th September 201515th September 2015

None

Incentives for EducatorsMonitoring reports on the implementation of incentives for educators are available

Achieved4 meetingsMonitoring reports on the implementation of incentives for educators are available



Meeting dates:

6th May 20159th September 201513th October 20157th March 2016

None

Employee WellnessMonitor the introduction and implementation of employee wellness activities


Achieved


Meeting dates:

12th May 201515th September 201513th October 201531st March 2016

None





Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Teacher DevelopmentMonitoring reports on provision of teacher development programmes



Meeting dates:

14th April 201523rd February 2016

None

Dispute Prevention Monitoring reports on the categories and status of grievances, misconduct and disputes lodged



Meeting dates:

22nd April 20159th September 20157th October 201531st March 2016

None

Overview of the Northern Cape Chamber’s performance for the 2015/16 financial year

The Chamber was able to achieve its standardised provincial objectives as identified in the performance plan. Apart from those identified objectives, the Chamber also adheres to the ELRC’s constitutional obligations. The Chamber was able to monitor a number of programmes that had been identified during the previous financial years and built on the progress regarding the implementation of those programmes.

In the first quarter, the Employer reported in the Chamber meeting held on 10th June 2015 on PILLIR cases per district and provincial office as follows: Frances Baard: 121 cases; Namakwa: 39 cases; JTG: 36 cases: Pixley ka Seme: 44 cases; ZFM: 33 cases; and Education provincial office: 26 cases. The total number of PILLIR cases in the province was 299.

The Chamber also conducted a Dispute Resolution meeting, where the Northern Cape Department of Education embarked on a dispute prevention strategy to ensure that disputes are minimised in the province. They tabled the following programmes: misconduct workshops to be conducted for principals, circuit managers and line managers. Labour forums were also established, as they seek to draw closer relationships between the Employer and Labour Parties.

The Employer reported at the Chamber meeting that they have converted 333 educators in the province. Also, in Frances Baard, 57 educator salaries were corrected and adjusted, and in Namakwa, 13 educator salaries were corrected.



The Employer reported that with regard to the implementation of OSD for Therapists 2015, as a department, they have employed 20 therapists. These therapists are currently appointed in terms of the Educators OSD on Persal and are paid from a conditional grant.

The Employer indicated that they needed R9.158 million to correct the salaries, including backdated salaries with effect from 2010. The Employer had numerous engagements with the Department of Basic Education (DBE) in May 2015 to request an intervention with National Treasury.

The Employer also reported on payment of acting allowances and mentioned that they did not have any backlogs on payment of acting allowances. They have paid acting allowances to 252 educators in the province.

The Employer also reported on education infrastructural grant (budget) and explained the aim of this grant, which is to help accelerate construction, maintenance, upgrading and rehabilitation of new and existing infrastructure in education.

The Chamber also received a report on termination of service by educators and reported under resignations that 394 educators resigned in the province, 211 educators retired and 52 deaths were reported throughout the province.

The Employer reported on long service leave encashment under two categories: 20 years = 60 educators and 30 years = 17 years of service in the province.

The Employer presented a report on the National School Nutrition Programme (NSNP) on advocacy workshop, which started on 1st June and ended on 12th June 2015. The following topics were addressed during the workshop: NSNP guidelines; deworming and food safety; and the monitoring tool.

The Employer reported on training for food handlers as from 29th June until 17th July 2015. Topics on meal planning and food safety, personal hygiene and gas safety were dealt with. Training on financial management as from 3rd August until 7th August 2015, NSNP funding and transfers, payment processes, supplier tax invoice verification and cheque requisition form completion were also covered.

The Employer reported on profiling of Dinaledi educators in the province per district.

The Employer also reported on national policy on the standardisation of circuit managers and progress on the implementation of the 1+4 model in the province.

A special Chamber meeting was also held during the said period, which led to an agreement of a flat rate of R1,000 for PL1 Educators and School Management Teams for the 2015/16 financial year in terms of payment of Rural Incentives being reached by Parties.

The total number pertaining to post provisioning of affordable posts tabled for the 2016 academic year were 10,342. Posts available for distribution for the 2016 academic year towards institutions is 8,551. Parties were satisfied with progress made in that respect and indicated that there were no issue(s) that surfaced which required further intervention regarding post provisioning.




The two meetings that did not take place in the third quarter were rescheduled for the fourth quarter, and the reports were tabled.

The two meetings that did not take place in the third quarter were rescheduled to the fourth quarter and sat on 27th January 2016, wherein the reports were tabled and discussed.




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,164 733 431 1,046 1,039 7

Total 1,164 733 431 1,046 1,039 7



3.2.8 North West


Collective Bargaining Services: North West


Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016


Deviation from planned target

to Actual Achievement for 2015/2016

Comment on deviations Status


Post Provisioning


Achieved

4 meetings



Meeting dates:

12th June 201517th July 201522nd July 201521st August 2015

None



Achieved

4 meetings


Meetings (4) Not Achieved

Only one (1) meeting took place on 21st August 2015


In terms of the Medium Term Expenditure Framework (MTEF) meeting held on 25th August 2015, the Employer indicated that there was no budget for incentives for 2015/16, and this was reiterated by the Chamber on 11th September 2015

In the workshop on 21st August 2015, the policy for incentives was presented and accepted

Employee Wellness



Achieved


Meeting dates:

12th June 201522nd July 201521st October 201513th November 2015

None





Indicator

Actual Achievement

2014/2015

Planned Target

2015/2016


Deviation from planned target

to Actual Achievement for 2015/2016

Comment on deviations Status


Teacher Development




Meeting dates:

12th June 201513th November 2015

None

Dispute Prevention




Meeting dates:

24th July 201515th September 201524th August 201530th November 2015

None

Overview of the North West Chamber’s performance for the 2015/16 financial year

The beginning of the 2015/16 financial year started with unfortunate developments emanating from the discord at the PSCBC negotiations, which culminated in the suspension of the North West Chamber activities during the first quarter. The deadlock was as a result of the impasse on the payment of a 0.6% increase, as part of a salary increment, and Labour Parties at the PELRC pledged support in favour of Labour Parties at the PSCBC. There was a decision that all North West Chamber programmes be put in abeyance.

The programmes of the province were revived by the second quarter, and the Chamber managed to embark on a recovery plan to achieve planned objectives.

Apart from the standardised objectives, the North West Chamber received, analysed and adopted the following unique objectives: Quality Learning and Teaching Campaign (QLTC); 1+4 Programme; Rationalisation of schools; Temporary educators; IQMS/PMDS; Terminations and NECT reports at Chamber meetings. The same meetings proactively adjudicated on the draft APP for 2016/17, including the report from the Task Team on Draft Collective Agreement for temporary educators. The Task Team sat seven times to produce a collective agreement with the aim of responding to the challenges endured by temporary educators. However, Labour and Employer representatives had divergent views on a number of aspects, and the task was ultimately taken back to the Chamber.

The Chamber participated in activities coordinated by the Provincial Quality of Learning and Teaching Campaign (PQLTC) and the National Education Collaboration Trust (NECT), which mainly focused on improving the quality of education within the North West province. The other obligation of the Council is to enhance strategies on marketing the ELRC



and promoting labour peace within the education sector. In responding to this call, the Chamber conducted workshops on labour relations matters such as grievance procedure; misconduct; case management; disputes; leave measures; and duties and responsibilities of employees in favour of the members of School Management Teams and unions. The Chamber also participated at the conferences as convened by Labour Parties during the period under review.

The North West Chamber held two workshops during August 2015, which sought to define and deliberate on the objectives, operations and implementation of the Policy on Incentives for Educators and 1+4 programme.

The DRPs training, which was convened during February 2016 for three days, mainly discussed aspects such as meaning and reasons for dismissal; procedural and substantive fairness; overview of Section 198 amendments; jurisdictional ruling on promotional disputes; cross-examination and re-examination; forms of evidence; and rules of admissibility.

The Chamber managed to host a Strategic Planning Workshop on 17th and 18th March 2016. The aim thereof was to review the performance of the provincial chamber through engaging with the three quarterly reports of the 2015/16 financial year, with the view of realigning the APP with the budget for the subsequent year (2016/17). The Strategic Planning Workshop was successful in that the facilitations, presentations and discussions were commendable.


There is no strategy to overcome the underperformance, as it relates to the non-achievement of the standardised objective on Incentives for Educators, and given the fact that the Employer indicated that this objective was not provided for in the 2015/16 budget.




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,050 750 300 1,064 964 100

Total 1,050 750 300 1,064 964 100



3.2.9 Western Cape


Collective Bargaining Services: Western Cape


Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Post Provisioning


Achieved

4 meetings




Meeting dates:

9th June 20153rd August 201530th September 20158th December 2015

None



Not Achieved

3 meetings



Meeting dates:

15th May 201526th August 20155th November 201515th February 2016

None





Indicator

Actual Achievement

2014/2015


Actual Achievement

2015/2016



2015/2016


Status


Employee Wellness



Achieved


Meeting dates:


None

Teacher Development




Meeting dates:


+2

Dispute Prevention




Meeting dates:

6th August 201520th October 201527th-29th January 201618th February 2016

None



Overview of the Western Cape Chamber’s performance for the 2015/16 financial year

Labour peace was maintained through a common understanding between the Employer and Employee Parties. This is evident through the regular meetings and consultations held over the period under review. Task Team meetings and Chamber meetings were convened to oversee this process in line with the ELRC’s constitution and other policy documents. Collective Agreements signed at national and common understandings reached in the Chamber were successfully implemented by the Employer; monitoring of such policies and Collective Agreements are monitored in Chamber meetings.

Notwithstanding the fact that the implementation of Collective Agreement No. 8 of 2003 started in 2006, the Employer is continuously giving training on the IQMS and Whole Schools Evaluation (WSE) to new entrants in the system. WSE mainly focuses on the School Self-Evaluation (SSE) process and the School Improvement Plan (SIP) processes. Regular reports have been submitted by the IQMS Task Team regarding the strengths and weaknesses identified. On insistence from the Employee Parties on how WSE is used to see improvements in schools, a WSE Recommendations Tracking System has been developed. The purpose of the system is twofold, namely, to implement the recommendations emanating from the findings at an institutional level and to evaluate or monitor improvements based on the recommendations.

Parties have managed to sustain a partnership approach in support of quality public education and service delivery. This was mainly done through regular Standing Committee (STANCO), Chamber and Task Team meetings, where issues were addressed to enhance the performance of education at public schools in the province. Because of this relationship, the identified objectives by the Chamber were successfully achieved. This is plausible as Parties were committed to ensuring that burning issues were addressed in the interest of all in order to enhance labour peace and improve the quality of learning and teaching in line with the QLTC principles.

Service Category Services utilised Current %

Professional Counselling

Telephone counselling 60.8%

Face to face 39.5%

Legal 65.5%

Life ManagementFamily Care 24.4%

9.8%Financial

Referral ServicesFormal Referral 90.7%

Assisted Referral 9.3%

Managerial Services Managerial Consulting 100.0%

Incentives: A total number of 1,062 qualifying educators received the remoteness incentives for the academic year (2015). There was a drop in the actual number of recipients from 2012 to 2015 as a result of a number of school closures or amalgamation of certain schools. A number of schools have also been added since 2012. The costs associated with the payment of the remoteness incentives have gradually increased due to the annual Cost of Living Adjustments (COLA). With reference to Employee Wellness, reports have been submitted on a regular basis to Chamber meetings for monitoring purposes. A number of wellness days were held over the year at different schools, district offices and head office. Awareness-raising topics included topics such as breast cancer; arthritis; diabetes, World AIDS Day; and leprosy. Employee Wellness Engagement reports gave a summary of the services being utilised; the utilisation rate was established at 4.2%



The top five psycho-social issues employees experienced during the annual reporting period were as follow:

Psycho-social issues Cases attended

Organisational issues 14.7%

Relationship issues 14.1%

Stress 13.5%

HR issues 8.4%

Loss issues 6.1%

The Workplace Skills Plan (WSP) 2015/16 was monitored on a quarterly basis through the submission of Quarterly Monitoring and Expenditure reports and was compiled and submitted to the Public Service Sector Education and Training Authority (PSETA). The Skills Development Levy 2015/16 payment of R6,450,000 was made via BAS on 1st February 2016. The Skills Development Committee meeting was held on 17th February 2016 for districts to report on training conducted. Public Services Bursaries (in-service personnel staff) spent R18,800 in the third quarter; the amount spent to date was R168,425.80, and invoices from tertiary institutions are received in the first quarter of the year. Graduate Internship Programme spent R204,028.44 during the third quarter. The total spending to date was R735,141.12. Out of the 17 interns appointed, eight (8) have since left the programme for permanent positions in the public and private sectors. Pre-service educator bursaries had no intake for 2015 and 2016; the spending for the third quarter was R74,000 and the total expenditure to date was R1,500,000.

The Dispute Prevention Task Team met on a quarterly basis to discuss reports received from the national dispute services department of the ELRC. The Task Team is in the process of arranging a workshop to develop a mechanism to reduce disputes as well as addressing corporal punishment cases that seem to be on the rise.

The Employer has introduced an e-recruitment system; all applicants must register online as no manual applications are being dealt with. Employee Parties have registered some concerns on the usage of the system. The Employer has indicated since the introduction of the system that fewer disputes had been declared.


Not applicable




2015/16 2014/15


Actual Expenditure


Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000


1,178 791 387 1,063 1,017 46

Total 1,178 791 387 1,063 1,017 46



4. SUMMARY OF FINANCIAL INFORMATION

4.1. Revenue Collection

2015/16 2014/15

Source 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 48,000 48,790 -790 48,000 49,119 -1,119

Total 48,000 48,790 -790 48,000 49,119 -1,119

5. PROGRAMME EXPENDITURE

2015/16 2014/15

Programme name Budget

Actual Expenditure


Actual Expenditure

Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Dispute Management Services 14,474 14,131 343 10,115 11,188 -1,073

Collective Bargaining Services 36,807 26,524 10,283 30,602 32,741 -2,138

Executive Services 5,515 5,889 -374 6,377 4,375 2,001

Corporate Services 17,793 15,606 2,187 10,880 11,801 -920

Capital Expenditure 25,358 25,358 19,028 2,859 16,168

Total 99,947 62,150 37,797 57,975 60,106 -2,130

5.1. Capital investment, maintenance and asset management plan

Not applicable


Not applicable


Not applicable


Part C Governance




1. INTRODUCTION

The overall performance of the Council for the 2015/16 financial period in terms of national and provincial collective bargaining activities improved significantly, compared to the 2014/15 financial period. This is because the collective bargaining process was fully supported by Parties and long outstanding items on the agenda of the Council were addressed.

In terms of Dispute Management Services, the Council implemented a number of measures to deal with disputes in a proactive manner, including the recruitment of interpreters and intermediaries so as to ensure speedy resolution of cases involving the child as victim or witness.

2. THE ACCOUNTING AUTHORITY

Committees

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

Executive Committee 11 10

Department of Basic EducationMr A W KutumelaMs S GeyerMr R PretoriusMr S FakerMs K J MoshotleSADTUMr N DolopiMr M GaloraleMr M NdouvhadaCTU-ATUMr H HendricksMr D Lerm

Audit Committee 5 5

Ms T G MoeengMr M MahongaMr SA NgobeniMr M MalulekeMr N Maluleka

Finance Sub-Committee 6 9

Department of Basic EducationMr S TshabalalaMs S GeyerMr M MahlareMr A W KutumelaSADTUMr S ThwalaMr S MogapiMr M JacobsCTU-ATUMr D LermMr N Mosia



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

Human Resources Sub-Committee

4 7

Department of Basic EducationMs L MundayMr N NgcoboSADTUMr M GaloraleMr B ShanduMs K FrankCTU-ATUMr A V DlaminiMr N Mosia

Legal Sub-Committee 2 10

Department of Basic EducationMs K J MoshotleMs S GeyerMr S TshabalalaMr R PretoriusMr A W KutumelaSADTUMr T SematleMr O SibiyaMr M NdouvhadaCTU-ATUMs C LotteringMr C Scorgie

3. RISK MANAGEMENT

Risk management is recognised as an integral part of sound organisational management. The ELRC has a risk management policy and framework in place and is also guided by the King III Report on Corporate Governance principles and practices.

The King III Report on Corporate Governance emphasises that management is responsible for the implementation of risk management. It should be embedded in day-to-day activities and be practised throughout an organisation; emphasis should be on oversight structures.

It is in line with the above principle and practice that the General Secretary has ensured that the Council has and maintains effective, efficient and transparent systems of financial and risk management and internal control, including:

• Ensuring that a risk assessment is conducted regularly to identify emerging risks of the Council.

• A risk management strategy is used to direct internal audit effort and priority and to determine the skills required of

managers and staff in order to improve controls and to manage these risks.

• The strategy is clearly communicated to all officials to ensure that the risk management strategy is incorporated into

the language and culture of the Council.

• The governance structures are in place to ensure effective management of risk at both strategic and operational level.

An Operational Risk Management Committee that comprises senior managers has been established. The Committee is required to meet quarterly to discuss risk issues to be reported to the Audit Committee.

A risk assessment was held in the form of a workshop in the first quarter, where the identification, categorisation and ranking of risks were completed. Four quarterly risk meetings were held to evaluate and update risks and control measures identified in the Risk Register.



Overall, the top ten risk heat map indicates that internal controls are adequate, but effective implementation is lacking. Management must effectively implement mitigation plans to ensure that risks are kept within acceptable levels.

4. INTERNAL CONTROL

Responsibility for the systems of internal financial and operational control rests with the Executive Committee and has been delegated to the Audit Committee. The ELRC’s principles on compliance management, sound operational and financial practices, ethical behaviour and risk management strategy lay the foundation of an effective internal control environment.

Management is responsible for the system of internal controls. These controls are designed to manage the risk profile and provide reasonable assurance that there is an adequate system of internal controls in place.

Internal audit unit conducted an audit to monitor and assess the internal controls across various functions through continuous evaluations to ensure the implemented internal control system is effective as intended by management. The results indicated that controls and/or management activities are in place with significant opportunities for improvement.

The unit followed up on the implementation of the action plans to address weaknesses and reported progress on the implementation of the action plans to the Audit Committee.

5. AUDIT COMMITTEE

The Audit Committee of the ELRC is independent and fulfils a vital role in corporate governance by, amongst others, ensuring the integrity of integrated reporting and internal financial controls and the management of risk.

The Committee has adopted appropriate formal terms of reference as its Audit Committee Charter, which have been approved by EXCO. The Committee has also regulated its affairs in compliance with the Charter and has discharged its responsibilities as contained therein. The Audit Committee is an advisory committee of the Council operating with an independent and objective stance.

The Audit Committee met six times during the period under review (four normal meetings and two special meetings). These meetings were attended by the General Secretary or her delegate, the Internal Auditor, the Chief Financial Officer (CFO), Senior Management, and representatives from the external auditors.

The Audit Committee reports that it has operated and performed its oversight responsibilities independently and objectively in compliance with the Audit Committee Charter and ELRC constitution.

Internal Audit provides the Audit Committee and management with reasonable assurance on the appropriateness and effectiveness of internal controls. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes.

From the 2014/15 report of the external auditors, it was noted that there were some matters reported that indicated material deficiencies in internal controls. There was an effort from management to implement the agreed action plans. Despite these control inadequacies, the Audit Committee is of the view that the system of internal control on financial statements was satisfactory.

6. COMPLIANCE WITH LAWS AND REGULATIONS

The Audit Committee monitors, on a quarterly basis, compliance with laws and regulations as part of the quarterly review of the performance of the entity.



7. FRAUD AND CORRUPTION

A Fraud Prevention Plan (FPP) for the ELRC has been revised and approved by the Audit Committee at the time that a risk assessment was done. A fraud and corruption policy statement exists and is signed by the Accounting Officer.

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.

8. MINIMISING CONFLICT OF INTEREST

At the beginning of each calendar year, all staff members are required to sign a declaration form on conflict of interest.

9. CODE OF CONDUCT AND ETHICS

The Council revised its HR policies during the period under review, and a Code of Conduct and Ethics was approved as a result. Focus was placed on the values of the organisation and how employees should uphold the values through their behaviour. Reference was also made to proper channels of reporting malicious deeds, should there be any.

The Code of Conduct and Ethics outlines and provides for the ethical standards and behaviour that are required of all employees of the Council.

All employees are expected to comply with and act in accordance with the principles established in terms of the Code at all times.

Any violation of the Code by an employee constitutes a misconduct and is a ground for disciplinary action that may lead to termination of employment, where the Council deems it necessary as per the Disciplinary Policy.

10. OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT

The building refurbishment was completed in February 2016, and staff occupied the building in the same month.

The Safety, Health and Environment (SHE) Committee ensured that quarterly meetings were convened, as per the operational plan. Seven SHE representatives were trained on First Aid Level 2. The new building is fully equipped with the necessary signage and fire extinguishers for safety precautions.

The SHE Policy was developed and recommended by the Human Resources Sub-Committee.

11. SOCIAL RESPONSIBILITY

Staff members are encouraged to participate in social responsibility activities. During the year under review, donations were made on 18th July 2015 to Leamogetswe Safety Home in Atteridgeville, Pretoria.



12. AUDIT COMMITTEE REPORT

We are pleased to present our report for the financial year ended 31 March 2016. The Audit Committee commends the management and staff of the ELRC for the efforts demonstrated during the period under review to ensure improvement in the performance of the entity.

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, six meetings were held.

Name of member Designation Date of appointment Meetings Meetings

Scheduled Attended

Ms T Moeeng Chairperson (Member) August 2012 6 5

Mr M Maluleke Member August 2012 6 3

Mr M Mahonga Member August 2012 6 6

Mr SA Ngobeni Member June 2013 6 5

Mr N Maluleka Member August 2012 6 3

Audit Committee Responsibility

The Audit Committee of the ELRC is independent and fulfils a vital role in corporate governance by amongst others, ensuring the integrity of integrated reporting and internal financial controls and the management of risk.

The Committee has adopted appropriate formal terms of reference as its Audit Committee Charter, which have been approved by the EXCO. The Committee has also regulated its affairs in compliance with the Charter and has discharged its responsibilities as contained therein. The Audit Committee is an advisory committee of the Council operating with an independent and objective stance.

The Audit Committee met six times during the period under review (four normal meetings and two special meeting). These meetings were attended by the General Secretary or her delegate, the Internal Auditor, the Chief Financial Officer, Senior Management and representatives from the external auditors.

The Audit Committee reports that it has operated and performed its oversight responsibilities independently and objectively in compliance with Audit Committee charter and ELRC Constitution.

The Internal Audit provides the Audit Committee and management with reasonable assurance on the appropriateness and effectiveness of the internal controls. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes.

From the 2014/15 report of the External Auditors, it was noted that there were some matters reported that indicated material deficiencies in internal controls. There was effort from management to implement the agreed action plans. Despite these control inadequacies, the Audit Committee is of the view that the system of internal control on financial statements was satisfactory.

The Effectiveness of Internal Control

Responsibility for the systems of internal financial and operational control rests with the Executive Committee and has, been delegated to the Audit Committee. The ELRC’s principles on compliance management, sound operational and financial practices, ethical behaviour and risk management strategy lay the foundation of an effective internal control environment.

Management is responsible for the system of internal controls. These controls are designed to manage the risk profile, and provide reasonable assurance that there is an adequate system of internal controls in place.



Internal audit unit conducted audit to monitor and assess the internal controls across various functions through continuous evaluations to ensure the implemented internal control system is effective as intended by management. The results indicated that controls and/or management activities are in place with significant opportunities for improvement and these weaknesses put some of the system objectives at risk.

The unit followed up on the implementation of the action plans to address weaknesses and reported progress on the implementation of the action plans to the Audit Committee.

Internal audit unit also performed reviews on compliance with the applicable laws and regulations, financial policies and prescripts in the form of audit engagements and compliance checklists on a quarterly basis.

A risk assessment was held in a form of workshop in the first quarter, where the identification, categorisation and ranking of risks were completed. Four quarterly risk meetings were held to evaluate and update risks and control measures identified on the Risk Register.

Overall, the top ten risk heat map indicates that internal controls are adequate but effectiveness renders improvement and management must effectively implement mitigation plans to ensure that risks are kept within acceptable levels.

In-Year Management and Quarterly Report

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

Evaluation of Financial Statements

The Audit Committee:

• Reviewed the audited annual financial statements prepared by the entity

• Reviewed and discussed the unaudited annual financial statements to be included in the annual report with the

External Auditor and the Accounting Officer

• Reviewed changes in accounting policies and practices

• Reviewed the information on predetermined objectives to be included in the annual report

• Reviewed significant adjustments resulting from the audit

• Reviewed the Annual Report

• Reviewed the External Auditor’s report



Auditor’s Report

We have reviewed the entity’s implementation plan for audit issues raised in the prior year and reporting that while the overall results show improvement, challenges of timely implementing management action plans remains a challenge. Matters have been adequately resolved except for some of the issues relating to Supply Chain Management and Finance.

The External Auditor Management Report

The management report of the External Auditor was reviewed.

Conclusion and Finding

The Audit Committee concurs and accepts the External Auditor’s conclusions on the annual financial statements and is of the opinion that the audited annual financial statements be accepted.

Recommendation

The Audit Committee recommends the adoption of the audited financial statements and the Annual Report by EXCO.

Ms T Moeeng, Chairperson of the Audit Committee

Date: 17 August 2016


Part D Human Resource

ManagementEDUCATION LABOURRELATIONS COUNCIL



1. INTRODUCTION

The Human Resources report summarises the employment relations activities of the ELRC during the period 1st April 2015 to 31st March 2016. Human Resource issues include: Recruitment, Resignations (turnover), Employee Wellness, Further Studies and Training and Development, Performance Management, and Labour Relations.

The Council had 58 approved positions and reviewed the organogram, as there was a need for personnel in the Internal Audit Department and Corporate Services (IT section).

Following the Work-Study Project that was conducted in the 2013/14 fiscal year, it was recommended that a Total Reward Strategy, Salary Benchmarking and Remuneration Policy be established to ascertain if the employees of the Council were remunerated in line with market standards. A service provider was identified, and results were implemented accordingly with effect from 1st April 2015.

Recruitment/Appointments

The Council has 58 positions with a staff complement of 57 employees and one vacant position.

The vacant position will not be filled, due to financial constraints that the Council is faced with.

Industrial Relations

One employee was charged for fruitless and wasteful expenditure and unpaid sick leave, as the employee had exhausted sick leave days.

There were two grievances: one disciplinary and one incapacity hearing. The two grievances were due to dissatisfaction with the implementation of the salary benchmarking exercise. The process of the implementation of the salary benchmarking was explained to the employees, and they later understood. The disciplinary was due to not following the HR Policy on the leave process, and lastly, the incapacity hearing was due to poor performance. The results of the incapacity hearing resulted in a demotion.

The National Education Health and Allied Workers’ Union (NEHAWU) is officially a recognised union for the Council. The Council awaits a Collective Agreement from the union.

Further Studies and Training Development

A total of 45 employees attended training during the financial year 2015/16, viz.: First Aid, Report Writing, Asset Management, Caseware, Contract Management, and other courses related to their daily operations.

Employee Wellness

A team building session was held for all staff on 2nd December 2015 at Emerald Casino.

The Council also observed the following days during the period under review: Fathers’ Day and Mothers’ Day in May and June 2015; Youth Day on 12th June 2015; Women’s Day in the month of August 2015; Spring Day in the month of September 2015; and Valentine’s Day on 12th February 2016.



Performance Management

The Annual Performance Assessments were successfully conducted and will be finalised in the first quarter of 2016/17 financial year.

Poor performance remains a challenge for the Council, especially from newly appointed employees. The Council continuously engages and counsels employees with performance challenges and refers them to necessary training for improvement.

Resignations/Retirement

Four employees resigned during the 2015/16 financial year, and this was due to better remuneration offered by other employers in the market and career progression.

Highlights

• The Salary Benchmarking exercise was conducted and implemented for all employees affected. The implementation

was effected in the month of April 2015.

• Only one position is vacant.

• Bursaries were obtained for eight employees to the value of R150,000 from ETDP SETA.



2. HUMAN RESOURCE OVERSIGHT STATISTICS

Personnel expenditure for the financial year 2015/16.

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)

Collective Bargaining

24,942,402.00 9,518,786.90 38% 22 39%

Dispute Resolution 12,845,873.00 3,032,716.76 24% 8 12%

Corporate Services 15,250,201.00 9,341,598.63 61% 26 38%

Executive Services 5,737,994.00 2,721,687.80 47% 6 11%

Total 58,776,470.00 24,614,790.09 42% 62 100%

Personnel cost by salary band

LevelPersonnel

Expenditure (R’000)

% of personnel exp. to total personnel cost

(R’000)

No. of employees

Average personnel cost per employee

(R’000)

Top Management 2,316,703.31 9% 2 1,158,351.66

Senior Management 2,975,122.29 12% 4 743,780.57

Professionally qualified 9,398,800.19 38% 18 546,676.51

Skilled 8,832,874.76 36% 29 308,478.50

Semi-skilled 542,941.31 2% 2 271,470.65

Unskilled 548,348.33 2% 7 112,989.58

Total 24,614,790.19 100% 62 3,141,747.47

Performance Rewards

ProgrammePerformance

rewardsPersonnel Expenditure

(R’000)% of performance rewards to total personnel cost (R’000)

Top Management 0 0 0

Senior Management 0 0 0

Professionally qualified 0 0 0

Skilled 0 0 0

Semi-skilled 0 0 0

Unskilled 0 0 0

Total 0 0 0



Training Costs

ProgrammeTraining

Expenditure(R’000)

Training expenditure as a % of personnel cost

No. of employees trained

Average training cost per employee

(R’000)

Collective Bargaining 27,946.85 11.32% 5 5,589.37

Dispute Resolution 1,696.09 0.68% 2 848.045

Corporate Services 199,560.13 80.85% 14 14,254.30

Executive Services 17,625.45 7.14% 2 8,812.73

Total 246,828.52 100% 23 10,731.67

Employment and vacancies

Employment levels per programme

Programme2014/15 2015/2016 2015/2016 2015/2016

% of VacanciesNo. of employees Approved Posts No. of Employees Vacancies

Executive Office 4 5 4 1 2%

Collective Bargaining 22 22 22 0 0%

Corporate Services 21 24 24 0 0%

Dispute Resolution & Prevention 4 7 7 0 0%

Total 51 58 57 1 2%

Employment and vacancies per level

Programme2014/15 2015/2016 2015/2016 2015/2016

% of VacanciesNo. of employees Approved Posts No. of Employees Vacancies

Top Management 2 2 2 0 0%

Senior Management 3 4 4 0 0%

Professionally qualified 14 17 17 0 0%

Skilled 26 29 28 1 0%

Semi-skilled 2 2 2 0 0%

Unskilled 4 4 4 0 0%

Total 51 58 57 1 2%



Employment changes

Salary BandEmployment at

beginning of periodAppointments Terminations Transfers

Employment at end of the period

Top Management 2 2 0 0 2

Senior Management 3 1 0 0 4

Professionally qualified

14 6 2 1 17

Skilled 26 4 2 0 28

Semi-skilled 2 0 0 0 2

Unskilled 4 0 0 0 4

Total 51 13 4 1 57

Reasons for staff leaving

Reason Number % of total no. of staff leaving

Death 0 0%

Resignation 4 6%

Dismissal 0 0%

Retirement 0 0%

Ill health 0 0%

Expiry of contract 0 0%

Other 0 0%

Total 4 16%

Labour Relations: Misconduct and disciplinary action

Nature of disciplinary action Number

Grievance 2

Incapacity 1

Disciplinary 1

Dismissal 0

Total 4



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 2 0 0 0 0 0 0 0

Professionally qualified 8 0 0 0 1 0 0 0

Skilled 11 0 0 0 0 0 0 0

Semi-skilled 2 0 0 0 0 0 0 0

Unskilled 3 0 0 0 0 0 0 0

Total 27 0 0 0 1 0 0 0

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 2 0 0 0 0 0 0 0


5 0 2 0 0 0 1 0

Skilled 13 0 1 0 1 0 1 0

Semi-skilled 0 0 0 0 0 0 0 0

Unskilled 1 0 0 0 0 0 0 0

Total 22 0 3 0 1 0 2 0

Levels DISABLED STAFF

Male Female

Current Target Current Target

Top Management 0 0 0 0

Senior Management 0 0 0 0


0 0 0 0

Skilled 0 0 1 0

Semi-skilled 0 0 0 0

Unskilled 1 0 0 0

Total 1 0 1 0

Part E Financial Information


Independent Auditor’s Report to the members of Education Labour Relations Council

Introduction

1. We have audited the financial statements of Education Labour Relations Council, as set out on pages 93 to 126, which comprise the statement of financial position as at 31 March 2016, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting Authority’s Responsibility for the Financial Statements

2. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and requirements of the Labour Relations Act, and for such internal control as the committee determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’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 financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Building 1 | Midrand Business Park 563 Old Pretoria Main Road

MIDRAND | 1685

PO Box 8468 | Halfway House MIDRAND | 1685

Tel: +27 11 254 0800 | Fax: +27 11 805 0168

E-mail: [email protected] www.ngubane.co.za

Directors: TB Nkomozephi, E Sibanda, HGS Mpungose, N Ravele, SM Jogee, ET Chapanduka, MN Govender, DA Mbatha, MO Mathelemusa Reg.No. 2010/016757/21



Opinion

6. In our opinion, the financial statements present fairly, in all material respects, the financial position of Education Labour Relations Council as at 31 March 2016, and its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and the requirements of the Labour Relations Act.

Emphasis of Matter

Restatement of Comparative Figures

7. Without qualifying our opinion, we draw attention to Note 25 to the financial statements which indicate that the previously issued financial statements for the year ended 31 March 2015, on which an auditor’s report was issued, have been revised and restated. As explained in Note 25, this is due to errors which were identified during the 2015/16 financial year.

Other matters

8. Without qualifying our opinion, we draw attention to the fact that supplementary information set out on pages 127 to 128 does not form part of the financial statements and is presented as additional information. We have not audited this information and accordingly do not express an opinion thereon.

Basis for recording of misstatements and disclosure misstatements

9. The total uncorrected misstatements, both individually and in aggregate, are not material in the context of the annual financial statements taken as a whole.

Regulatory matters

10. The following regulatory matters were identified. Although individually they are not significant, we recommend management continue to resolve these matters to ensure full compliance with the relevant laws and regulations:

Late payments made in respect of SARS and COIDA

11. Payments of PAYE, SDL and UIF were made late to SARS in 2 months of the financial year. One instance of a late payment in respect of the Compensation for Occupational Injuries and Diseases was noted. This resulted in penalties and interest. Measures have been put in place to ensure that this does not occur again.

Predetermined objectives

Issues noted relating to the usefulness and reliability of performance information

12. There were instances which were identified relating to the usefulness and reliability of performance information. We would like to bring to your attention the following significant matters:

• Conciliation cases not planned for within 30 days

• Arbitration cases not planned for within 45 days

• Targets and indicators not reported consistently

• Targets planned not specific

• Indicators not well-defined in the annual performance plan



Procurement and Contract Management

Non-compliance with the supply chain management (SCM) policy

13. There were instances of non-compliance with the SCM policy. Some of these instances resulted in irregular expenditure. We would like to bring to your attention the following significant matters:

• Supplier database not updated regularly

• Bid specifications not compliant with policy

• No register for fruitless and wasteful expenditure

• Register for irregular expenditure is not updated

Annual Financial Statements

Going concern

14. The annual financial statements have been prepared on the going concern assumption.

15. Management is of the opinion that Education Labour Relations Council will be a going concern for the next 12 months.

16. We do not have any reason to question management’s view in respect of the entity’s ability to continue as a going concern and are satisfied that this continues to be the appropriate basis for the preparation of the annual financial statements.

Independence

17. There are no relationships we have with ELRC, its members and senior management and its affiliates, and other services provided to other known connected parties that we consider may reasonably be thought to bear on our objectivity and independence.

_________________________________

Ngubane & Co (JHB) Inc.Registered AuditorsDirector: M MathelemusaRegistered Auditor

Date: 24 August 2016



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

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2016




Financial Statements for the year ended 31 March 2016

Index Page

Statement of Responsibility for the Annual Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 – 102

Notes to the Annual Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 – 126

The following supplementary information does not form part of the financial statements and is unaudited:

Statement of Comparison of Budget and Actual Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 – 128

The financial statements set out on pages 93 to 128, which have been prepared on the going concern basis, were approved on 24 August 2016 and were signed on its behalf by:






Statement of Responsibility for the Annual Financial Statements

The Accounting Authority is required to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report.

It is their responsibility to ensure that the financial statements fairly present the state of affairs of the entity as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with the International Financial Reporting Standard for Small and Medium-sized Entities. The external auditor is engaged to express an independent opinion on the financial statements.

The financial statements are prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. The financial statements have been prepared on the going concern basis.

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 financial statements.

In my opinion, the financial statements fairly reflect the operations of the entity for the financial year ended 31 March 2016.

The Education Labour Relations Council’s annual financial statements for the year ended 31 March 2016 have been audited by the external auditors and their report is presented on page 87.

The Annual Financial Statements of the entity set out on page 93 to page 128 have been approved.






Statement of Financial Position

Notes

2016

R

Restated 2015

R

Assets

Non-Current Assets 32,556,322 9,379,227

Property and equipment 2 32,084,675 9,150,437

Intangible assets 3 471,647 228,790

Current Assets119,170,619 137,968,431

Trade and other receivables 6 827,183 1,445,495

Cash and cash equivalents 7 118,343,436 136,522,936

Total Assets 151,726,941 147,347,658

Equity and Liabilities

Equity

Accumulated surplus 121,753,525 121,867,867

Liabilities

Current Liabilities 29,973,416 25,479,791

Trade and other payables 8 7,714,139 3,711,557

Operating lease liability 4 82,384 101,917

Provisions 10 1,875,508 711,893

Shop stewards accrual 9 20,301,385 20,954,424

Total equity and liabilities 151,726,941 147,347,658




Statement of Comprehensive Income

Notes

2016

R

Restated 2015

R

Revenue 11 48,790,093 49,212,798

Other Income 12 14,439,505 12,852,007

Operating Expenditure 27 (62,673,584) (52,233,235)

Operating surplus 556,014 9,831,570

Interest and penalties (670,356) -

Comprehensive surplus (deficit) for the year (114,342) 9,831,570

Average number of contributors 406,579 (2015: 409,326).




Statement of Changes in Equity

Accumulated surplus

R

Total equity

R

Balance at 01 April 2014 112,036,297 112,036,297

Comprehensive surplus for the year 9,831,570 9,831,570

Balance at 31 March 2015 - Restated 121,867,867 121,867,867

Comprehensive deficit for the year (114,342) (114,342)

Balance at 31 March 2016 121,753,525 121,753,525




Statement of Cash Flows

2016Restated

2015

Notes R R

Cash flows from operating activities

Net cash (utilised in) generated from operating activities (943,969) 6,318,914

Cash receipts from customers 48,852,681 49,453,199

Cash paid to suppliers and employees (49,126,294) (43,134,285)

Cash (used in) generated from operations 17 (273,613) 6,318,914

Interest and Penalties (670,356) -

Cash flows from investing activities

Net cash (utilised in) generated from investing activities (17,235,531) 3,007,306

Purchase of property and equipment 2 (24,316,251) (4,027,955)

Purchase of intangible assets 3 (398,436) -

Interest income 12 7,479,156 7,035,261

(Decrease) increase in cash and cash equivalents for the year (18,179,500) 9,326,220

Cash and cash equivalents at the beginning of the year 136,522,936 127,196,716

Cash and cash equivalents at the end of the year 7 118,343,436 136,522,936




Accounting Policies

1. Presentation of financial statements

The financial statements have been prepared in accordance with the International Financial Reporting Standards for Small and Mediumsized Entities (IFRS for SME’s) and the Labour Relations Act, 66 of 1995 as amended. The financial statements have been prepared on the historical cost basis and incorporate the principal accounting policies set out below. They are presented in South African Rands.

These accounting policies have been amended to be compliant with the reporting framework of IFRS for SME’s.

1.1 Significant judgements and sources of estimation uncertainty

Key sources of estimation uncertainty

Useful lives of property and equipment

The council reviews the estimated useful lives of property and equipment when changing circumstances indicate that they may have changed since the most recent reporting date.

Provisions

Provisions are inherently based on assumptions and estimates using the best information available. Additional disclosure of these estimates of provisions are included in note 10 Provisions.

1.2 Property and equipmentProperty and equipment are tangible items that:

• are held for use in the production or supply of goods or services, for rental to others or for administrative purposes;

and

• are expected to be used during more than one period.

Property and equipment is carried at cost less accumulated depreciation and accumulated impairment losses.

Cost includes all costs incurred to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Costs include costs incurred initially to acquire or construct an item of property and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property and equipment, the carrying amount of the replaced part is derecognised.




Accounting Policies (cont.)

Depreciation is provided using the straightline method to write down the cost, less estimated residual value over the useful life of the property and equipment, which is as follows:

Item Depreciation method Average useful life in years

Buildings Straight line 25

Lifts Straight line 25

Generators Straight line 25

Furniture and fittings Straight line 10

Motor vehicles Straight line 7

Office equipment Straight line 8

Computer equipment Straight line 3

Leasehold improvements Straight line 5

The residual value, depreciation method and useful life of each asset are reviewed at each reporting date if there are indicators present that there has been a significant change from the previous estimate.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in surplus or deficit in the period.

1.3 Intangible assetsIntangible assets are initially recognised at cost and subsequently at cost less accumulated amortisation and accumulated impairment losses.

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

Item Depreciation method Average useful life in years

Computer software Straight line 3

The residual value, amortisation period and amortisation method for intangible assets are reassessed when there is an indication that there is a change from the previous estimate.

1.4 Financial instruments

Initial measurement

Financial instruments are initially measured at the transaction price (including transaction costs except in the initial measurement of financial assets and liabilities that are measured at fair value through surplus or deficit) unless the arrangement constitutes, in effect, a financing transaction in which case it is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.





Financial instruments at amortised cost

These include loans, trade receivables and trade payables. Those debt instruments which meet the criteria in section 11.8(b) of the standard, are subsequently measured at amortised cost using the effective interest method. Debt instruments which are classified as current assets or current liabilities are measured at the undiscounted amount of the cash expected to be received or paid, unless the arrangement effectively constitutes a financing transaction.

At each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether there is any objective evidence of impairment. If there is objective evidence, the recoverable amount is estimated and compared with the carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in surplus or deficit.

1.5 LeasesA lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. All other leases are operating leases.

Operating leases – lessee

Operating lease payments are recognised as an expense on a straightline basis over the lease term unless:

• another systematic basis is representative of the time pattern of the benefit from the leased asset, even if the

payments are not on that basis, or

• the payments are structured to increase in line with expected general inflation (based on published indices or

statistics) to compensate for the lessor’s expected inflationary cost increases.

Any contingent rents are expensed in the period they are incurred.

1.6 Impairment of assetsThe council assesses at each reporting date whether there is any indication that property, plant and equipment or intangible assets or goodwill may be impaired.

If there is any such indication, the recoverable amount of any affected asset (or group of related assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in surplus or deficit.

If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (or group of assets) in prior years. A reversal of impairment is recognised immediately in surplus or deficit.

1.7 Employee benefitsThe cost of shortterm employee benefits, (those payable within 12 months after the service is rendered, such as leave pay and sick leave, bonuses, and nonmonetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.





Defined contribution plans

Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.

1.8 Provisions and contingenciesProvisions are recognised when the council has an obligation at the reporting date as a result of a past event; it is probable that the council will be required to transfer economic benefits in settlement; and the amount of the obligation can be estimated reliably.

Provisions are measured at the present value of the amount expected to be required to settle the obligation using a rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense.

Provisions are not recognised for future operating deficit.

A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events that are beyond the control of the entity.

Alternatively, a contingent liability is a present obligation that arises from past events but is not recognised because:

• It is not probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; or

• The amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are included in the disclosure notes. The estimation of the amounts disclosed is based on the expected possible outflows of economic benefits should there be a present obligation.

Contingent assets

Contingent assets arise from unplanned or other unexpected events that are not wholly within the control of the entity and give rise to the possibility of an inflow of economic benefits or service potential to the entity.

Contingent assets are included in the disclosure notes. The estimation of the amounts disclosed is based on the expected possible inflows of economic benefits or service potential to the entity.

Contingent assets and contingent liabilities are not recognised as provisions as the recognition criteria are not complied with.

1.9 RevenueRevenue is recognised to the extent that the council has transferred the significant risks and rewards of ownership of goods to the buyer, or has rendered services under an agreement provided the amount of revenue can be measured reliably and it is probable that economic benefits associated with the transaction will flow to the council. Revenue is measured at the fair value of the consideration received or receivable, excluding sales taxes and discounts.

Interest is recognised, in surplus or deficit, using the effective interest rate method.





1.10 Borrowing costsBorrowing costs are recognised as an expense in the period in which they are incurred.

1.11 Changes in Estimates and Prior Period Errors

Changes in Estimates

As a result of the uncertainties inherent in delivering services, many items in financial statements cannot be measured with precision but can only be estimated. Estimates involve judgement based on recently available, reliable information and therefore an estimate may change as new information becomes known, circumstances change, or more experience is obtained.

The entity recognises the effects of changes in accounting estimates prospectively, by including the effects in surplus or deficit in the period of the change - if the change affects that period only - or in the period of the change and future periods, if the change affects both.

Prior Period Errors

Prior period errors are omissions from and misstatements in the entity’s financial statements for one or more prior period. These errors arise from a failure to use (or misuse of) reliable information that was available when the financial statements for those periods were authorised for issue and could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements.

Such errors include the effect of mistakes in applying the accounting policy, oversight or misinterpretation of facts.

1.12 Presentation of Budget informationThe entity discloses a comparison of the budget and actual amount in the primary financial statements.

1.13 Related PartiesParties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions; or if the related party entity and another party are subject to common control.

Related parties include individuals who have significant influence over the entity, such as members of the Excecutive Committee (EXCO), its committees and key management personnel.

Only transactions between the entity and related parties during the reporting period and not at arm’s length or not in the ordinary course of business, as well as comparative information are disclosed in the notes to the annual financial statements.





1.14 Irregular expenditureIrregular expenditure as defined in section 1 of the Public Finance Management Act (PFMA) is expenditure other than recognised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including:

• The State Tender Board Act, 1968 (Act No.86 of 1968), or any regulations made in terms of this Act

• Any provincial legislation providing for procurement procedures in that provincial government

Irregular expenditure is accounted for in terms of the National Treasury practice note No.4 of 2008/2009, which was issued in terms of sections 76(1) to 76(4) of the PFMA.

Irregular expenditure that was incurred and identified during the period under review, which was condoned before year-end, must be disclosed appropriately in the irregular expenditure note. In such instance, no further action is required with the exception of updating the note in the financial statements.

Irregular expenditure that was incurred and identified during the period under review, which was not condoned by the National Treasury or relevant authority, must be recorded appropriately in the irregular expenditure register. If the liability for irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable by Law.

1.15 Fruitless and wasteful expenditure Fruitless and wasteful expenditure means expenditure which is made in vain and would have been avoided had reasonable care been exercised.

Where an investigation determines, a receivable will be recorded against an employee who has been found to have incurred the fruitless and wasteful expenditure. In instances where a receivable is not raised against an employee or the amount is irrecoverable, the Accounting Authority may write off the debt. Fruitless and wasteful expenditure identified is disclosed in the notes to the financial statements.


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Notes to the Annual Financial Statements (cont.)

Note 4

Operating lease liability2016

R2015

R

Lease liability (straight lining) 82,384 101,917

Total minimum lease payments

Not later than one year 905,247 998,872

Later than one year and not later than five years 719,433 963,627

1,624,680 1,962,499

The operating lease liability is the difference between actual payments and straight–lining as recognised in the statement of comprehensive income. The minimum lease payments reflected above only relate to the lease commitments; contractual commitments are disclosed under note 18.

Operating lease payments represent rentals payable by the ELRC for rentals of premises in the nine provincial offices. The leases typically run for a period of three to five years, with an option to renew. Rental expenses are increased annually as per the escalation clauses of the lease agreements.

Note 5

Retirement benefits2016

R2015

R

Defined contribution plan

The entity provides retirement benefits through a defined contribution plan to all its employees. The provident Fund is governed by the Pension Funds Act, 1956 (Act no 24 of 1956).

The entity is under no obligation to cover any unfunded benefits.

The total contribution to the scheme 3,122,143 2,383,497





Note 6

Trade and other receivables2016

R2015

R

Trade receivables 14,692 77,280

Prepayments 566,899 192,147

Receivable from employees 9,804 249

Deposits 95,883 92,064

Accrued income - 68,746

Other receivables 70,730 962,048

Meeting refunds 55,151 43,853

Flight tickets for re-use 14,024 9,108

827,183 1,445,495

Trade and other receivables are not pledged as security. The carrying amount of the receivables approximate their fair value.

Note 7

Cash and cash equivalents2016

R2015

R

Cash and cash equivalents consist of:

Cash on hand 12,153 8,404

Current account 10,447,641 25,655,839

Short term deposits* 107,883,642 110,858,693

118,343,436 136,522,936

No restrictions have been placed on the use of the cash and cash equivalents for the operations of the entity. The carrying amount of these assets approximates to their fair value.

*Short term deposits are held with the South African Reserve Bank (Corporate of Public deposits), the deposits are carried at an effective floating interest rate that varies between 6.7% and 7% (2015: 5.5% and 5.8%).





Note 8

Trade and other payables2016

R2015

R

Trade payables 2,876,713 1,114,882

Retention payable 335,823 -

Accrued leave pay 1,201,638 1,164,188

Accrued expenses 3,299,965 1,432,487

7,714,139 3,711,557

The carrying amount of the payables approximate their fair value.

Note 9

Shop stewards accrual2016

R2015

R

Current liabilities 20,301,385 20,954,424

Reconciliation of accrual 31 March 2016

Opening Balance

Write off Addition Total

Fulltime shop stewards 20,954,424 (6,876,516) 6,223,477 20,301,385

Reconciliation of accruals: 31 March 2015

Opening Balance

Write off Addition Total

Fulltime shop stewards 20,176,338 (5,576,345) 6,354,431 20,954,424

Shop stewards accrual comprise of costs to be claimed for services rendered by a parties to Council but for which claims have not been received. A reliable estimate is made based on the number of meetings attended and provisions as per Collective Agreement. The liability is assessed at the end of each reporting period.





Note 10

Provisions2016

R2015

R

Provision for SADTU 776,023 711,893

Provision for performance bonus 725,703 -

Provision for 13th cheque 373,782 -

1,875,508 711,893

Reconciliation of Provisions: 31 March 2016

Opening Balance

Utilised Addition Total

Provision for performance bonus - - 725,703 725,703

Provision for 13th cheque - - 373,782 373,782

Provision for SADTU 711,893 (850,498) 914,628 776,023

711,893 (850,498) 2,014,113 1,875,508

Reconciliation of Provisions: 31 March 2015

Short-termOpening Balance

Utilised Addition Total

Provision for SADTU 1,830,603 (1,118,710) - 711,893

Performance bonus was accounted for on a cash basis in the prior financial years, no provision for performance bonus was accounted for in the previous financial year as EXCO had not approved the payment of bonuses prior to finalisation of financial statements and the audit.

Provision for SADTU comprise of costs to be claimed for services rendered by Parties to Council but for which claims have not been received. A reliable estimate is made based on the number of meetings attended and provisions as per Collective Agreement.





Note 11

Revenue2016

R2015

R

Levies - FETC 2,095,763 745,948

Levies - DBE 46,694,330 48,466,850

48,790,093 49,212,798

All levies received bear no credit risk and are paid from salary deductions from educators and an equal contribution by employer.

Average number of educators is 406,579 (2015: 409,326).

Note 12

Other income2016

R2015

R

Interest income 7,479,156 7,035,261

Tender deposits 17,250 16,000

Sundry income 66,583 224,401

Write-off of shop stewards 6,876,516 5,576,345

14,439,505 12,852,007





Note 13The following items are included within employee cost expense:

Employee costs2016

R2015

R

Basic earnings 18,162,459 13,840,903

13th cheque 1,779,256 1,067,658

Performance bonuses 987,826 488,615

Housing allowance 632,004 585,721

Medical aid 544,551 508,109

Provident fund 3,122,143 2,383,497

Unemployment Insurance Fund (UIF) 98,784 87,016

Skills Development Levy (SDL) 209,992 166,621

Leave pay accrual charge 118,282 849,194

Long-service awards 90,000 7,500

25,745,297 19,984,834

Total number of employees 61 (2015: 52)

Note 14

Administration expenses2016

R2015

R

Conciliation 1,129,891 930,722

Arbitration 6,775,620 5,068,207

Condonation 166,485 104,000

Cost of quality control 135,000 116,500

8,206,996 6,219,429

Note 15

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 of 1962.





Note 16

Auditor’s remuneration2016

R2015

R

Statutory audit fees – prior year 1,431,509 745,923

Consulting fees – other assurance 114,000 -

Expenses 23,166 -

1,568,675 745,923

Note 17

Cash generated from operations2016

R2015

R

(Deficit) surplus (114,342) 9,831,570

Adjustments for:

Depreciation and amortisation 1,638,747 1,244,725

Loss on assets disposed 510,500 735,045

Penalties and interest 670,356 -

Movement in operating leases (19,534) 26,615

Movement in provisions 1,163,615 (1,118,710)

Interest income (7,479,156) (7,035,261)

Changes in working capital:

Decrease in trade and other receivables 618,312 825,383

(Increase) decrease in shop stewards accrual (653,039) 2,136,259

(Increase) decrease in trade and other payables 3,390,928 (326,712)

(273,613) 6,318,914





Note 18

Commitments2016

R2015

R

Already contracted but not provided for:

Capital expenditure 437,639 24,366,978

Operating expenditure 3,228,070 1,151,673

3,665,709 25,518,651

This committed expenditure relates to capital expenses and operating expenses and will be financed by available retained surplus.

Commitments disclosed takes into consideration clauses as per the contractual agreements. Capital commitments relates to building refurbishment project that the ELRC embarked on since January 2015. The contract was awarded to Bula Project and is being managed by Studio 3 Design House as project managers.

Note 19

Contingencies2016

R2015

R

Legal claims relates to civil cases against the Council for potential loss of income arising from a cancelled contract. The Council expects an inflow of resources embodying economic benefits in 2016.

Contingent asset 50,128 110,000

Contingent liabilities - (380,000)

Note 20

First time adoption of the International Financial Reporting Standards for Small and Medium-sized Entities.

The council has applied the International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SME’s), for the first time for the 2016 year end. On principle this standard has been applied retrospectively and the 2015 comparatives contained in these financial statements differ from those published in the financial statements published for the year ended 31 March 2015. There are no material differences between GRAP and IFRS for SME’s.

The date of transition was 01 April 2015.





Note 21

Related parties

Employer party Department of Basic Education

Members of key management Ms Nolusindiso Foca

Mr Omphitlhetse Mafora

Ms Octavia Makofane

Mr Matlose Moela

Mr Frederick Moloisi

Ms Nelisiwe Bongco

Trade unions South African Democratic Teachers Union (SADTU)

Combined Trade Union – Autonomous Trade Union (CTU-ATU)

Related party transactions

Fees paid to related parties in respect of services rendered

2016

R2015

R

SADTU 850,498 1,118,710

Advocate L. Bono* 97,833 244,595

Advocate P. Bono 38,753 72,641

987,084 1,435,946

* This relates to the fees paid for services rendered by the independent Chairperson as a panellist in matters of arbitration or dispute resolution. The Chairperson’s decisions in dispute resolution and arbitration matters do not affect the financial position of the Council.

Executive emoluments (Board fees)

2016R

2015R

Advocate L. Bono 293,719 208,811

Members of the ELRC Executive committee did not receive emoluments during the financial year, except for Adv. L Bono who is an independent Chairperson of EXCO who receives such fees as per collective agreement. The Board fees to date amount to R 293,719.





Note 21 (cont.)

Audit Committee fees

2016R

2015R

Ms T Moeeng 36,240 28,672

Mr M Maluleke* - -

Mr M Mahonga 28,768 21,760

Mr SA Ngobeni 26,787 15,821

Mr N Maluleka* - -

91,795 66,253

Non-Executive members serve in the audit committee of the ELRC. The Audit Committee sits for four meetings annually and any other special meetings.

*The members are representatives of parties to the Council, and by virtue of being non-independent members they are not eligible for payments.

Key Management Personnel

Key management information

Class Description Number of members

Executive members Accounting Authority 11

Non-executive members Accounting Authority 3

Executive management Accounting Officer/Executive 2

Senior management Management 4


Ed

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ion

Lab

our

Rel

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ns C

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Fina

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Note

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er

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efits

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tal

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ch 2

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ch 2

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vid

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al F

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tem

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t.)

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31

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ch 2

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Mr

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ben

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h A

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rman

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Note

22

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xpen

dit

ure

2016 R

2015 R

Ope

ning

bal

ance

145,

302

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302

Add

: Irr

egul

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cur

rent

yea

r56

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sing

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706,

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302

The

Cou

ncil

incu

rred

irre

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pend

iture

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ting

to n

on-c

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e w

ith th

e re

quire

men

ts o

f Tre

asur

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gula

tions

16A

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d P

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note

8 o

f 200

7/8,

whe

rein

at l

east

th

ree

quot

atio

ns w

ere

not

obta

ined

fro

m a

list

of

pros

pect

ive

supp

liers

for

pro

cure

men

ts o

f go

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valu

e ab

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as a

lso

note

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at in

som

e in

stan

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the

supp

liers

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e ap

poin

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out c

ompl

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l the

requ

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dard

bid

ding

form

s (S

BD

).

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Cou

ncil

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impl

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rols

to

ensu

re t

hat

all s

uppl

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ain

requ

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irreg

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endi

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vest

igat

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has

been

inst

itute

d fo

r th

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sclo

sed

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endi

ture

as

at y

ear

end.

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s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Note

21

(con

t.)

Exec

utiv

e m

anag

emen

t em

olum

ents

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cuti

ve m

anag

emen

t

emo

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ents

31

Mar

ch 2

016

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ic

sala

ry13

th

cheq

ue

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form

ance

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on

us

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vid

ent

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nd

co

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el &

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ou

sin

g

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wan

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er

ben

efits

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tal

Ms

NO

Foc

a87

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OA

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ora

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tem

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31

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ch 2

016

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s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Note

23

Frui

tles

s an

d w

aste

ful e

xpen

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ure

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2015 R

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ning

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ance

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the

year

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urin

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e ye

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,638

)(6

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re a

pplic

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trol

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e in

pla

ce to

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he C

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ver

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ount

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24

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ncia

l ins

trum

ents

ris

k m

anag

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The

Cou

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act

iviti

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as li

mite

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st

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ncil

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quid

ity b

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iting

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endi

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in th

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prov

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t.


Ed

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ns C

oun

cil

Fina

ncia

l Sta

tem

ents

fo

r th

e ye

ar e

nded

31

Mar

ch 2

016

Note

s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Note

24

(con

t.)

The

tabl

e be

low

illu

stra

tes

the

Cou

ncil’s

exp

osur

e to

liqu

idity

ris

k fro

m fi

nanc

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litie

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2016

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at

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ost

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ncia

l lia

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amo

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ty a

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on-

fina

ncia

l ass

ets

and

liab

iliti

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Tota

l

RR

RR

RC

ateg

ori

es o

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nan

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rent

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l

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Note

s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Note

23

Frui

tles

s an

d w

aste

ful e

xpen

dit

ure

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2015 R

Ope

ning

bal

ance

26,1

8360

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tless

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l exp

endi

ture

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rred

dur

ing

the

year

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7726

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Less

: Writ

ten

off d

urin

g th

e ye

ar(1

,638

)(6

0,91

0)

Clo

sing

bal

ance

77

,522

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83

The

fruitl

ess

and

was

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l exp

endi

ture

rela

tes

to e

xpen

ses

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rred

for l

ate

paym

ent o

f sup

plie

r acc

ount

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on o

r lat

e ca

ncel

latio

n of

trav

el a

nd a

ccom

mod

atio

n ar

rang

emen

t m

ade

for

disp

ute

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lutio

n m

atte

rs a

nd n

on -

att

enda

nce

of m

eetin

gs a

nd t

rain

ing

by s

ome

part

y m

embe

rs.

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coun

cil c

ontin

ues

to m

onito

r th

ese

occu

rren

ces

and

whe

re a

pplic

able

con

trol

s ar

e in

pla

ce to

ass

ist t

he C

ounc

il to

reco

ver

thes

e am

ount

s.

Note

24

Fina

ncia

l ins

trum

ents

ris

k m

anag

emen

t

The

Cou

ncil’s

act

iviti

es h

as li

mite

d ex

posu

re t

o fin

anci

al r

isks

, m

arke

t ris

k (in

clud

ing

curr

ency

ris

k, fa

ir va

lue

inte

rest

rat

e ris

k, c

ash

flow

inte

rest

rat

e ris

k an

d pr

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edit

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dity

ris

k. R

isk

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agem

ent i

s ca

rrie

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k M

anag

emen

t Com

mitt

ee u

nder

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prov

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ounc

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idity

risk

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dent

liqu

idity

risk

man

agem

ent i

mpl

ies

mai

ntai

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suf

ficie

nt c

ash.

The

Cou

ncil’s

prim

ary

sour

ce o

f fun

ding

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roug

h eq

ual c

ontr

ibut

ions

by

the

part

ies,

whi

ch c

onsi

st

of th

e em

ploy

er a

nd th

e em

ploy

ees.

The

Cou

ncil

mai

ntai

ns li

quid

ity b

y lim

iting

cap

ital a

nd o

pera

tiona

l exp

endi

ture

with

in th

e pr

e-ap

prov

ed b

udge

t.


Ed

ucat

ion

Lab

our

Rel

atio

ns C

oun

cil

Fina

ncia

l Sta

tem

ents

fo

r th

e ye

ar e

nded

31

Mar

ch 2

016

Note

s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Note

24

(con

t.)

The

tabl

e be

low

illu

stra

tes

the

Cou

ncil’s

exp

osur

e to

liqu

idity

ris

k fro

m fi

nanc

ial l

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litie

s:

2016

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t in

stru

men

t at

am

ort

ised

co

st

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ncia

l lia

bili

ties

at

amo

rtis

ed

cost

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esE

qui

ty a

nd n

on-

fina

ncia

l ass

ets

and

liab

iliti

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Tota

l

RR

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R

Cur

rent

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bili

ties

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lity

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visi

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--

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l

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Tota

l Eq

uity

and

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ncia

l Sta

tem

ents

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r th

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ar e

nded

31

Mar

ch 2

016

Note

s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Note

24

(con

t.)

The

tabl

e be

low

illu

stra

tes

the

Cou

ncil’s

exp

osur

e to

liqu

idity

ris

k fro

m fi

nanc

ial l

iabi

litie

s:

2015

Deb

t

inst

rum

ent

at

amo

rtis

ed

cost

Fina

ncia

l lia

bili

ties

at

amo

rtis

ed

cost

Leas

esE

qui

ty a

nd

non-

fina

ncia

l as

sets

and

lia

bili

ties

Tota

l

RR

RR

R

Cat

ego

ries

of

fin

anci

al in

stru

men

ts 2

015

Ass

ets

No

n C

urr

ent

Ass

ets

Pro

pert

y an

d eq

uipm

ent

--

-9,

150,

437

9,15

0,43

7

Inta

ngib

le a

sset

s-

--

228,

790

228,

790

Tota

l-

--

9,37

9,22

79,

379,

227

Cur

rent

Ass

ets

Trad

e an

d ot

her

rece

ivab

les

1,25

3,09

9-

-19

2,39

61,

445,

495

Cas

h an

d ca

sh e

quiv

alen

ts

136,

522,

936

--

-13

6,52

2,93

6

Tota

l13

7,77

6,03

5-

-19

2,39

613

7,96

8,43

1

Tota

l Ass

ets

137,

776,

035

--

9,57

1,62

314

7,34

7,65

8


Ed

ucat

ion

Lab

our

Rel

atio

ns C

oun

cil

Fina

ncia

l Sta

tem

ents

fo

r th

e ye

ar e

nded

31

Mar

ch 2

016

Note

s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Note

24

(con

t.)

The

tabl

e be

low

illu

stra

tes

the

Cou

ncil’s

exp

osur

e to

liqu

idity

ris

k fro

m fi

nanc

ial l

iabi

litie

s:

2015

Deb

t

inst

rum

ent

at

amo

rtis

ed

cost

Fina

ncia

l lia

bili

ties

at

amo

rtis

ed

cost

Leas

esE

qui

ty a

nd

non-

fina

ncia

l as

sets

and

lia

bili

ties

Tota

l

RR

RR

R

Eq

uity

and

Lia

bili

ties

Eq

uity

Acc

umul

ated

sur

plus

-

--

121,

867,

867

121,

867,

867

Tota

l

--

-12

1,86

7,86

712

1,86

7,86

7

Cur

rent

Lia

bili

ties

Trad

e an

d ot

her

paya

bles

-3,

711,

557

--

3,71

1,55

7

Ope

ratin

g le

ase

liabi

lity

--

101,

917

-10

1,91

7

Pro

visi

ons

--

-71

1,89

371

1,89

3

Sho

p st

ewar

ds li

abilit

y -

--

20,9

54,4

2420

,954

,424

Tota

l

-3,

711,

557

101,

917

21,6

66,3

1725

,479

,791

Tota

l Eq

uity

and

Lia

bili

ties

-

3,71

1,55

710

1,91

714

3,53

4,18

414

7,34

7,65

8





Note 25

Correction of Prior Period Errors

1. Property, equipment and intangible assets

During the current financial year management verified existing assets and corrected the fixed asset register. Assets that were physically in existence but not accounted for in the fixed asset register were included in the fixed asset register at their respective replacement cost. Asset that were disposed but not removed from the asset register were removed from the asset register at their book values.

2. Trade and other payables

Trade and other payables reduced due to accruals (panellists) recorded in the incorrect financial year. Arbitration expenses for 2014 were recorded in 2015.

3. Cash and cash equivalents

Cash and cash equivalent balance as at the end of the prior financial year, included a bank account balance in respect of the PCTA project. The bank account was closed and funds transferred into the Council’s main operations account. Therefore an asset may not be separately disclosed in the cash and cash equivalents. A liability was raised for the remaining balances against the donor. A correction was made during the financial year.

4. Liability for Dispute Prevention shop stewards

The liability for dispute prevention shop stewards was incorrectly classified as non-current liability in the prior periods instead of a current liability as the amounts fall due on demand. This was corrected in the current financial year by correctly classifying the amounts as current liabilities in the financial statements as per the collective agreement. Moreover, the Council has applied provisions of the Prescription Act during the current year and wrote off amounts that fell outside the three year prescription term. Amounts due in 2012 were written off in 2015 and those due in 2011 were written off in 2014 financial year by restating the 2015 opening accumulated surplus.

5. Operating expenses

The restatement in operating expenses is as a result of correction of 2014 arbitration expenses recorded in 2015, correction for PCTA project expenses recorded in 2015 as well loss on disposal of property, equipment and intangible assets.

6. Accumulated surplus

Corrections were made and appropriated to the Accumulated Surplus account during the financial year end 31 March 2015.

These corrections resulted in correction of the prior year’s figures and the impact is as follows:





Note 25 (cont.)

Description2015

Restated

2015Previously

statedChange

STATEMENT OF FINANCIAL POSITION

Decrease in property and equipment1 9,150,437 9,894,082 (743,645)

Decrease in trade and other payables2 (3,711,557) (3,778,434) 66,877

Decrease in cash and cash equivalents3 136,522,936 136,540,904 (17,968)

Decrease in accruals - FTSS4 (20,954,424)

(26,530,769) 5,576,345

Decrease in provisions 4 (711,893)

(49,271,150) 48,559,257

Decrease in intangible assets1 228,790 303,502 (74,712)

STATEMENT OF COMPREHENSIVE INCOME

Increase in expense5 52,233,235 51,578,595 654,640

Increase in other income4 (12,852,007) (7,275,662) (5,576,345)

STATEMENT OF CHANGES IN EQUITY

Increase in Accumulated Surplus6 (121,867,867) (68,501,713) (53,366,154)

Note 26

Going Concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.





Note 27

Operating expenses31 March

2016R

31 March 2015

R

Advertising and Recruitment 556,791

363,457

Administration and management fees 855 -

Accommodation expenses 582,900 1,279,016

Arbitration 6,775,620 5,068,207

Assets below R5 000 32,386 39,481

Auditors fees 1,568,675 745,923

Bad debts written-off 61,214 16,848

Bank charges 58,199 45,932

Board fees 212,610 250,920

Cleaning and sanitation 95,392 56,419

Computer expenses 288,595 537,484

Conciliation 1,129,891 930,722

Condonation 166,485 104,000

Consulting and professional fees 410,189 530,745

Consumables 106,996 76,581

Cost of quality control 135,000 116,500

Delivery expenses 18,226 36,258

Depreciation, amortisation and impairment loss 1,638,747 1,244,725

Dispute Prevention Support 10,246,607 8,908,294

Employee related costs 25,745,297 19,984,834

Gifts 38,107 29,146

Fruitless and wasteful expenditure 52,977 32,901

Health and safety expenses 9,659 15,127

Implementation of Acts and Agreements 80,051 137,423

Insurance 293,169 215,410

Legal Expenses 685,875 641,386

Levies payable expense - 40,410

Lease smoothing expense - 26,615





Note 27 (cont.)

Operating expenses31 March

2016R

31 March 2015

R

Loss on disposal of assets 522,805 722,205

Motor vehicle expenses 26,835 32,067

Printing and stationery 441,579 288,165

PCTA expense - 17,968

Governance and provincial chambers 1,179,003 1,229,302

Refreshments 352,763 318,117

Relocation cost - 21,563

Rentals 1,135,885 981,557

Repairs and maintenance 225,797 338,561

Research and Development 690,189 425,480

Training 2,077,346 1,752,797

Security 386,851 321,775

Storage and removal 300,436 325,597

Subscriptions and license fees 259,444 113,273

Telecommunication costs and postal fees 547,904 624,223

Travelling costs 2,133,944 1,676,592

Municipal expenses 894,061 756,503

Venue hire expenses 444,356 460,036

Workman’s compensation 62,443 4,130

World Teacher’s Day 1,430 348,560

62,673,584 52,233,235


Ed

ucat

ion

Lab

our

Rel

atio

ns C

oun

cil

Fina

ncia

l Sta

tem

ents

fo

r th

e ye

ar e

nded

31

Mar

ch 2

016

Note

s to

the

Annu

al F

inan

cial

Sta

tem

ents

(con

t.)

Stat

emen

t of C

ompa

rison

of B

udge

t and

Act

ual A

mou

nts

for t

he y

ear e

nded

31

Mar

ch 2

016

Des

crip

tio

nN

ote

31 M

arch

20

16 A

ctua

ls

Ap

pro

ved

B

udg

ets

2016

Diff

eren

ceR

ef

Tota

l Inc

om

e73

,229

,598

9

9,96

1,30

426

,731

,706

Rev

enue

58

,790

,093

94,0

45,5

06

35,2

55,4

13

Levi

es

11

48,7

90,0

93 4

8,00

0,00

0 (7

90,0

93)

(2%

)1

Tran

sfer

from

rese

rves

10,0

00,0

00

46,0

45,5

0636

,045

,506

10

0%2

Oth

er In

com

e14

,439

,505

5,91

5,79

8 (8

,523

,707

)

Sun

dry

inco

me

1266

,583

-

(66,

583)

(100

%)

Tend

er in

com

e 1

7,25

0

-

(

17,2

50)

(10

0%)

Sho

p st

ewar

ds w

rite-

off

6,87

6,51

6-

(6,8

76,5

16)

(10

0%)

3

Inte

rest

inco

me

7

,479

,156

5,9

15,7

98

(1,5

63,3

58)

(21%

)4

Exp

end

itur

e (7

2,15

0,77

9)(9

9,96

1,30

4)(2

7,81

0,52

5)

Per

sonn

el re

late

d ex

pens

es13

(25,

745,

297)

(25,

001,

073)

744,

224

(3%

)

Adm

inis

trat

ion

expe

nses

(8,

206,

996)

(6,

190,

000)

2,01

6,99

6 (2

5%)

5

Dep

reci

atio

n an

d am

ortis

atio

n

(1,6

38,7

47)

(

850,

000)

788,

747

(48%

)6

Cap

ital e

xpen

ses

(10,

000,

000)

(25,

358,

196

(15,

358,

196)

154%

7

Rep

airs

and

mai

nten

ance

(225

,797

)

(13

5,16

8)90

,629

(4

0%)

8

Gen

eral

exp

ense

s (2

6,33

3,94

2)(4

2,42

6,86

7)(1

6,09

2,92

5)61

%9

Gai

ns/(l

osse

s) o

n di

spos

al o

f ass

ets

(52

2,80

5)

-

522,

805

100%

Inte

rest

and

pen

altie

s(6

70,3

56)

-67

0,35

610

0%

Defi

cit

fo

r th

e ye

ar e

nded

31

Mar

ch 2

016

(114

,342

)

-

11

4,34

2




Notes to the Annual Financial Statements

Note 28

Budget compared to the statement of comprehensive income

The Council presents its approved annual budget and the financial statements on an accrual basis. The Council uses National Treasury budgets templates (ENE/MTEF) for public entities to prepare its budgets.

The following represents explanations to the reconciliations of the significant variances between the approved budgets and the Statement of Comprehensive income:

28.1 Levies

Levies has decreased by 2% due to decrease in the number of contributors from DBE.

28.2 Transfer from reserves

The Council transferred R10million from reserves to supplement fund used in the building refurbishment project.

28.3 Other Income

Amounts were not budgeted for.

28.4 Interest income

The Council hold reserves with financial institutions that earn interest based on the performance of the markets and the effective floating rates from previous financial periods have increased at an average of 0.3% in the period under review.

28.5 Personnel related expenses

Personnel related costs were 3% above the budgeted cost due to average cost of living adjustment

28.6 Administration

Expenditure was 25% above the budget due to increase in the amount of matters scheduled by the Council and the related travel expenditure.

28.7 Depreciation

Completion of the of the building refurbishment project resulted in the increase in the depreciation as well as the aging of the assets.

28.8 Repairs and maintenance

The aging computer equipment of the Council resulted in an increase in the repairs and maintenance costs.

28.9 General expenses

The general expenses has decreased as a result of cost cutting measures implemented by the Council.

A collective and enduring devotion

to preserve labour peace in a fluctuating socio-economic climate.

REGISTERED NAME:Education Labour Relations Council

REGISTRATION NUMBER:LR2/6/6/110

PHYSICAL ADDRESS:261 West Avenue

Centurion0046

POSTAL ADDRESS:Private Bag X126

Centurion0046

TELEPHONE NUMBER:+27 12 663 7446

FAX NUMBER:+27 12 663 9604

EMAIL ADDRESS

WEBSITE ADDRESS:www.elrc.org.za

[email protected]

a collective - elrc

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