ELRC ANNUAL REPORT

11 OCTOBER 2005

VISION

To strive towards the continuous maintenance and promotion of labour peace, accomplished in the spirit of parties to the Council working together and contributing towards the transformation and development of a quality South African Public Education sector.

To be the leading provider of quality, effective, efficient and non-partisan administration and facilitative mechanisms for Labour Peace and for the development of a quality South African Public Education sector.

MISSION

As an organisation, the ELRC is guided by the following Batho Pele principles and values:We value people that we serve and those with whom we work;We commit ourselves to be fair, ethical, trustworthy and accountable in all of our work;We endeavour to be customer-service oriented, striving to meet the needs of our clients;

ORGANISATIONAL VALUES

We aim to work together as a team, encouraging co-operation both from ourselves and others around us;

We strive to achieve and maintain excellence; always meeting the highest standards of performance at all levels of service outputs and professionalism in all of our work;

We strive to promote communication between ourselves and our clients;

ORGANISATIONAL VALUES (Cont.)

We commit to the development and capacity building of our staff through learning and growth;

We encourage innovation as a means to continually address new issues and seek better ways to achieve our goals;

We commit to our work and to the vision and mission of the ELRC.

ORGANISATIONAL VALUES (Cont.)

To facilitate administratively and effectively in the negotiation and consultation process as a bargaining chamber;

To facilitate and provide for a non-partisan forum for the prevention and resolution of disputes.

CORE BUSINESS

Our initiatives to promote this core business will be:

To promote communication between parties;

To provide Human Resources Development for all staff members;

To provide research services to parties on professional and education labour relations issues;

CORE BUSINESS (Cont.)

To interact with stakeholders on behalf of Council; and

To assist in the implementation of resolutions and the enforcement of agreements and awards.

CORE BUSINESS (Cont.)

Negotiation Support Services NationalAchievements

Conducted research into factors that impact on Post Provisioning Norms and to revise the PPN Model.

Concluded a collective agreement on an IQMS for School-based Education Therapist and Psychologists, and Public FET College Based Educators

Concluded an agreement on the Vote Weights for the employee parties to the Council Collective Agreement 1 of 2004 Collective Agreement 1 of 2005

An agreement reached on the payment of backlogs in salary progression Collective Agreement 2 of 2005

Negotiation Support Services NationalAchievements (Cont.)

An agreement reached on the appointment of Full Time Shop Stewards (FTSS) Collective Agreement 3 of 2005

Negotiation Support Services NationalAchievements (Cont.)

Dispute Resolution ServicesStatistics 2004/2005

A total number of 671 disputes referred to the Council.

467 were successfully dealt with through conciliation/arbitration.

A total number of 44 cases were either withdrawn, did not proceed or were removed due to lack of jurisdiction.

160 cases are still in process. Kwazulu Natal account for almost 41 %. Western Cape has overtaken Limpopo for

second place.

Statistics of Disputes Referred per Issue in the Year 2004/2005

10

295

8

159

84

29

2312

11

1

11

6

1411

6

Appointment/Promotion Dismissal

Salary/Benefits Terms & Conditions

Disciplinary Hearing Transfer

Non renewal of contract Demotion

Misconduct R & R

Medical Boarding Suspension

Implementation & application of collective agreement Retirement

Post provisioning IQMS

Dispute Resolution ServicesEastern Cape

30

17

11

5

43

111112

Appointmen/Promotion Dismissal Benefits Terms & Conditions

R & R Disciplinary Hearing Transfer Suspension

Demotion Medical Boarding Non renewal of contract Misconduct

77 Referrals

Dispute Resolution ServicesFree State

2

21

8

3

3

2

2 1 11

Dismissal Salary/Benefits Misconduct Non Renewal of contract

Terms & Conditions Transfer Appointment/Promotion Demotion

Suspension Medical Boarding

44 Referrals

Dispute Resolution ServicesGauteng

2 112

3

1

3

4

1 11

3

22

24

Appointment/Promotion Dismissal Terms & Conditions Non Renewal of contract

Medical Boarding Misconduct Salary/Benefits Suspension

Post Provisioning Demotion Disciplinary Hearing Transfer

IQMS R&R

69 Referrals

Dispute Resolution ServicesKwaZulu Natal

7 517

41

57

139

Appointment/Promotion Salary/Benefits DismissalDisciplinary Hearing Transfer Terms & Conditions

266 Referrals

Dispute Resolution ServicesLimpopo

1 124

5

6

14

31

Dismissal Appointment/Promotion Salary/BenefitsTerms & Conditions Misconduct Non renewal of contractRetirement Suspension

64 Referrals

Dispute Resolution ServicesMpumalanga

16 Referrals

Dispute Resolution ServicesNorthern Cape

8

Appointment/Promotion

8 Referrals

Dispute Resolution ServicesNorth West

23 Referrals

Dispute Resolution ServicesWestern Cape

5217

8

44

3 2 1

Appointment/Promotion Dismissal DemotionTerms & Conditions R & R Disciplinary HearingSalary & Benefits Medical Boarding

91 Referrals

Dispute Resolution ServicesNational Department of Education

3

2

8

Implementation & Application of collective agreement Non renewal of contracts (ABET)Appointment/Promotion

13 Referrals

Dispute Resolution ServicesCondonations – 2004/2005

A total number of 105 application for condonations were received.

48 Application for condonations were granted.

27 were refused.

Dispute Resolution ServicesTotal Number of Disputes per Province (2004-2005)

0

50

100

150

200

250

300

KZN WC EC GP LP FS NW MP NAT NC

Total no of disputes per province (2004-2005)

Annual Financial StatementsManagement Report

Important Policy decisions and strategic issues facing Council NPDE and SADC

Significant events that have taken place during the year World Teachers Day

Major projects undertaken during the year Research on workload of teachers – HSRC Research on Post Provisioning Norms - CEPD

Spending trends The core business of Dispute Resolution and

Negotiations consumed about 60 % of the budget

Service rendered Number of cases handled by Council Meetings facilitated

Capacity constraints if any Staff turnover

Annual Financial StatementsManagement Report

Public / Private Partnership Corporate Governance New / Proposed Activities

IIRA Congress Events after the Reporting Date Financial Management

Post of CFO filled

Annual Financial StatementsManagement Report

Reporting

Separate financial statements: Council Transformation

Annual Financial StatementsManagement Report

External Audit

Unqualified Auditor-General

Annual Financial StatementsManagement Report

Compliance

PFMA Audit Committee Internal Audit

Annual Financial StatementsManagement Report

Performance Information Decrease in revenue Stagnant levies Use of reserves Decrease in expenditure Excess expenditure Sustainability

Annual Financial StatementsManagement Report

Balance Sheet31 March 2005Assets

2005 2004R R

ASSETS

Non Current Assets

Property, plant and equipment 8,629,792 8,677,767

Current Assets 25,375,954 27,952,712

Trade and other receivables 4,969,253 3,383,487Cash and cash equivalents 20,406,701 24,569,225

TOTAL ASSETS 34,005,746 36,630,479

Balance Sheet31 March 2005Liabilities

2005 2004R R

ASSETS

Non Current Assets

Property, plant and equipment 8,629,792 8,677,767

Current Assets 25,375,954 27,952,712

Trade and other receivables 4,969,253 3,383,487Cash and cash equivalents 20,406,701 24,569,225

TOTAL ASSETS 34,005,746 36,630,479

Income Statement for the year ended 31 March 2005

2005 2004R R

CONTINUING OPERATIONS

Revenue 13,518,806 15,634,450

Other income 17,283 1,752,517

Total income 13,536,089 17,386,967

Administration expenses 7,953,192 6,011,359Other operating expenses 10,124,022 13,556,352

Deficit from operations (4,541,125) (2,180,744)

Investment income 1,399,498 1,815,313

Deficit for the year (3,141,627) (365,431)

Cash Flow Statement for the year ended 31 March 2005

2005 2004R R

CASH FLOW FROM OPERATING ACTIVITIES

Cash receipts from contributors 13,536,089 17,386,967 Cash paid to suppliers and employees (18,075,971) 11,736,281 Cash generated from operations (4,539,882) 5,650,686 Investment income 1,399,498 1,815,313 Net cash (outflow)/inflow from operating activities (3,140,384) 7,465,999

CASH FLOW FROM INVESTING ACTIVITIES

Fixed assets acquired (1,022,140) (853,787)

Net cash (outflow) from investing activities (1,022,140) (853,787)

Net decrease in cash and cash equivalents (4,162,524) 6,612,212 Cash and cash equivalents at the beginning of year 24,569,225 17,957,013

CASH AND CASH EQUIVALENTS AT END OF YEAR 20,406,701 24,569,225

Transformation FundBalance Sheet31 March 2005 - Assets

2005 2004R R

ASSETS

Non Current Assets

Property, plant and equipment 67,524 139,363

Current Assets 33,277,076 42,887,594

Trade and other receivables 113,431 281,745Bank balances and cash 33,163,645 42,605,849

TOTAL ASSETS 33,344,600 43,026,957

Transformation FundBalance Sheet31 March 2005 - Liabilities

FUNDS AND LIABILITIES

Equity

Trust Funds 19,892,429 28,426,331

Current Liabilities

Trade and other payables 13,452,171 14,600,626

TOTAL FUNDS AND LIABILITIES 33,344,600 43,026,957

Transformation FundIncome Statement for the year ended 31 March 2005

2005 2004R R

INCOME 2,603,538 8,783,094

Interest received - Transformation Fund 2,603,538 8,783,094

EXPENDITURE 11,137,440 93,591,074

Transformation Fund 241,027 78,419Research and Development Fund 11,599,722 42,430,221Shop Stewards Fund 383,881 1,420,538National Professional Diploma in Education Fund (4,130,941) 46,678,320Special Programmes Fund 3,043,751 1,983,576.00 Public Service Co-ordinating Bargaining Council Fund - 1,000,000.00

Deficit for the year (8,533,902) (84,807,980)

Transformation FundCash Flow Statement for the year ended 31 March 2005

2005 2004R R

CASH FLOW FROM OPERATING ACTIVITIES

Cash applied to operations (12,045,742) (89,872,706) Investment income 2,603,538 8,783,094 - Net cash (outflow)/inflow from operating activities (9,442,204) (81,089,612)

Net decrease in cash and cash equivalents (9,442,204) (81,089,612) Cash and cash equivalents at the beginning of year 42,605,849 123,695,461

CASH AND CASH EQUIVALENTS AT END OF YEAR 33,163,645 42,605,849