Employment Equity

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The Year Under Review

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Operating In A Changing Environment• Fragmentation of organised labour in a number of sector and a growing

number of splinter unions• CCMA’s role since 2011 has increasingly focused on verification exercises

and pronouncing on representivity• There has been an increase in inter-union rivalry, unprotected strikes and

the coalescing of workplace and community demands• The CCMA has responded with dynamic flexibility and have decisively and

responsibly intervened in workplace and sector conflicts to prevent further escalation

• The CCMA has supported Social Partners in their efforts to strengthen collective bargaining and related systems of social dialogue

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In Preparing The CCMA For The Labour Law Amendments

• An organizational review has been completed• Action plans to redesign have been developed and are in the

implement phase• A targeted training programme has been developed and is currently

being rolled out• A programme of updating knowledge internally and externally has

been developed and is being implemented• A CMS review is underway• The staffing of the CCMA has been evaluated and strengthened

where required.

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Delivery Excellence and Challenges in

2012/2013

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Increasing Accessibility - CCMA Offices

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Promoting Labour Market Peace And Stability• Private Security Sector• National Bargaining Council for the Sugar Manufacturing and Refining

Industry• National Bargaining Council for the Wood, Pulp and Paper Industry• National Bargaining Council for the Road Freight and Logistics

Industry• Hospitality Sector - SACCAWU and Sun International• Agricultural Sector - farm workers and Agri South Africa• Mining Sector – Lonmin Marikana

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Section 189A Facilitations

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Capacity Building

• A monitoring and evaluation systems to measure the impact and effectiveness of training delivery was implemented with an impact assessment tool having been developed

• Five new, customised, in-house training courses were developed

• A personal development planning (PDP) system was implemented

• Sixty-nine bursary and three study loan were granted• Substantial progress was made in the development and

delivery of a Labour Dispute Resolution Practice qualification, in partnership with universities.

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2 220 outreach activities were conducted

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Financial Performance

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Auditor General Report

• The CCMA has once again recieved a clean unqualified audit report whith no matters of emphasis.

• The organisation was commended by the Auditor General on the improvement of its internal controls.

• The improvements were particularly in the area of leadership where the organisation exercised appropriate oversight responsibility regarding financial, performance reporting and compliance with applicable laws and regulations.

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Financial Highlights

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• The organization managed its working capital effectively, with a liquidity ratio of 1,02:1.

• Monthly cash management and cash forecasting assisted the CCMA in maintaining a favorable cash position of R71.7m at year-end and ensuring a minimum cover of at least 2 month’s cover to meet its short term financial obligations.

• Income from investments grew by 30% year on year from R7.6m to R9.8 million due to investment in funds yielding favorable returns with lower volatility on short term investments.

• Other income grew by 82% year on year through higher demand for CCMA gazetted services.

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• As part of entrenching the awareness of legal prescripts, a national awareness campaign was conducted including training on the Supply Chain Management policy and National Treasury regulations

• A Risk Management System was embedded in the organisation, including risk registers (strategic and operational), insurance and OHS. These were complemented by an electronic risk management tool to track performance

• Internal controls and processes monitoring was strengthened, such as the Issues Being Tracked for Correction (IBTC), to ensure that findings from both Internal and External Audit are being addressed and that controls are in place to ensure that such issues do not recur

Statement of Financial Position

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Financial year-ending Mar 2013 Mar 2012Currency R'000 R'000

AssetsNon-Current AssetsProperty, plant and equipment 15,772 18,975 Leasehold 3,715 2,059 Intangible assets 5,098 5,609

24,584 26,643

Current AssetsInventories 1,141 889 Trade and other receivables 249

174

Prepayments 856 2,376 Cash and cash equivalents 71,702 73,097

73,948 76,536

Total Assets 98,533 103,179

LiabilitiesNon-Current LiabilityOperating lease liability 17,330 12,868

Current LiabilitiesTrade and other payables 57,004 58,154 Deferred revenue - 2,824 Operating lease liability 2,927 1,515 Provisions 12,339 10,087

72,270 72,580 Total Liabilities 89,600 85,448

Net Liabilities 98,533 103,179

Accumulated surplus 8,933 17,731

Statement of Financial Performance

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2013 2012 '000 '000

Revenue

Rendering of services 2,466 2,755 Government grants & subsidies 481,637 448,104 Other income 5,712 1,470

Total revenue 489,815 452,329

Expenditure

Employee related costs (164,239) (143,753) Administration (110,813) (103,467) Depreciation and amortisation (8,279) (1,828) Subsidies (5,496) (5,367) Operating expenses (219,650) (173,508)

Total expenditure (508,477) (427,923)

Surplus on sale of assets and liabilities 25 270 Income from investments 9,837 7,556

(Deficit)/Surplus for the year (8,800) 32,232

Statement of Changes in Assets

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Financial Year - Year to Date Mar 2013Currency R'000

Balance as at 31 March 2011 (14,499)Accumulated Surplus for the year 32,232Balance as at 31 March 2012 17,733Accumulated Deficit for the year (8,800)Balance as at 31 March 2013 8,933

Value Added Statement

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2012 And The Lessons To Be Learnt

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#1 Socio-economic frustration manifested as a labour dispute#2 A new form of association emerged – Worker Committees#3 Relying on the law and conventional rules of engagement has limitations#4 Industrial Relations must be managed as a strategic risk in the organisation#5 Socio-economic issues cannot be left unattended#6 We need a paradigm shift in Collective bargaining

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And yet the Current Wage Negotiation Season has been marked by labour market

discord and conflict

To date in the current negotiating season in the sample of agreements available the wage settlement percentages ranged from 6.9% to 111.6%; averaging 8.43% and representing an average real increase of 2.67% on current CPI (5.73%).

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