NEDLACBriefing to Parliamentary Select Committee- Labour and Public

Enterprises: 06 June 2012

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• Origins, Structure and Mandate of NEDLAC

• Overview of the 2010/11 period

• External and Organisational Challenges

• Strategic Goals and Priorities

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The NEDLAC Act, Act 35 of 1994, was one of the very first pieces of legislations to be signed off by

the first democratic Parliament in 1994.

NEDLAC was established through an Act of Parliament.

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NEDLAC Structure and Governance

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LABOUR GOVERNMENT

OVERALL CONVENORS

D GeorgeGeneral SecretaryFEDUSA

M SamelaGeneral SecretaryNACTU

Z VaviGeneral Secretary COSATU

BUSINESSCOMMUNITY

R Bhengu L Kganyago SANCO WNC

T TshefutaSAYC

S Mapailla T MabuzaFSCC NCASA

A MadellaDPSA

L KettledasGovernment

B NtshalintshaliLabour

L LotterBusiness

L NareCommunity

Minister of LabourM Oliphant

Minister of Public Works T Nxesi

Minister of Finance P Gordhan

Minister of Trade and Industry Dr R Davies

EXECUTIVE DIRECTOR

F MtobaPresident BUSA

N MajokweniCEOBUSA

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Key Focus Area 2010/11 2011/12 2012/13

Decent Work Country

Programme

Ongoing Ongoing Ongoing

Social Plan Review Finalised

Labour Market Policy

Review

Engagements underway Themes finalised are Atypical

Employment Relationships;

Dispute Resolution; Collective

Bargaining; and Compliance and

Enforcement.

Negotiations on the two

remaining themes, i.e.

Employment Equity and

Employment Services are

underway.

Bargaining councils

demarcation disputes/

application:

Finalised 23 applications Finalised 32 applications Ongoing

Municipal Systems

Amendment Bill

Finalised

Superior Courts Bill Engagements underway Finalised

Key Focus Area 2010/11 2011/12 2012/13

Expanded Public Works

Programme: Code of Good

Practice:

Finalised

Merchant Shipping

Amendment Bill

Engagements underway Finalised

Insolvency Bill Finalised interim NEDLAC report

Monitoring Labour Market

Institutional Trends

Ongoing Ongoing Ongoing

Immigration Policy: Pending tabling of policy in NEDLAC Pending Pending

Superior Courts Bill Engagements underway Finalised

Labour Court Rules Nominations to the Labour Court Rules

Board completed.

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Key Focus Area 2010/11 2011/2012 2012/2013

Cooperatives

Amendment Bill

Engagements underway Finalised

Customs Control and

Customs Duty Bills

Tabled and engagements underway Engagements underway Parties are in the process of signing-

off the NEDLAC Report

Preferential Procurement

Regulations

Finalised

Strategic Sessions with

the Minister of Trade and

Industry

Finalised

Climate Change Green

Paper

Finalised

Administered Prices Study commissioned Study finalised, engagements

underway

Engagements underway

Standards Quality

Accreditation Metrology

(SQAM)

Finalised Legal Metrology Policy

Customs Fraud and Illegal

Imports

Engagements underway Engagements underway

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Key Focus Area 2010/11 2011/2012 2012/2013

Small Scale Fisheries

Policy

Engagements underway Finalised

Water Quality Risks Engagements underway Finalised

Oversight of IPAP II Ongoing Ongoing

ITA Act Pending

National Water

Amendment Bill

Pending

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Development Policy Work Stream:

Key Focus Area 2010/11 2011/2012 2012/2013

Cooperatives

Amendment Bill

Engagements underway Finalised

Public Transport Finalised

Climate Change Finalised

Integrated Youth

Development Strategy

(IYDS)

Pending tabling of the strategy in NEDLAC Tabled, engagements underway Parties in process of finalising

the NEDLAC report

Rental Housing

Amendment Bill

Engagements underway Finalised

Immigration Policy Pending tabling of policy in NEDLAC Pending tabling of policy in NEDLAC

National Disability Policy Engagements underway Engagements underway

Review Report on Adult

Education and Training

Pending tabling of the report in NEDLAC Pending

Higher Education and

Training Laws

Pending tabling in NEDLAC Pending

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Development Policy Work Stream:

Key Focus Area 2010/11 2011/2012 2012/2013

Comprehensive Social

Security and Retirement

Funds Reform

Pending tabling of proposals in NEDLAC Pending tabling of proposals in

NEDLAC

Engagements on Retirement

Funds underway in the Public

Finance and Monetary Policy

Chamber.

Local Government Pending tabling in NEDLAC Pending

Human Settlement Strategy tabled. Pending tabling of the Housing

Amendment Bill in NEDLAC

Pending

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Key Focus Area 2010/11 2011/2012 2012/2013

Household Savings Engagements underway Engagements underway

Tax Engagements underway Engagements underway

National Budget

Processes

Ongoing Ongoing Ongoing

Comprehensive Social

Security and Retirement

Funds Reform

Pending tabling of proposals in NEDLAC Pending the tabling of the revised

policy on Comprehensive Social

Security. Engagements on Retirement

Funds and Savings are underway.

Financial Sector Charter

Council

Ongoing Ongoing Ongoing

Financial Sector Policy Engagements underway Withdrawn from the agenda of the

Chamber, superseded by G20

discussions

Development Finance

Institutions (DFIs)

Pending tabling of proposals in NEDLAC Engagements underway

National Poverty

Measures and National

Poverty Line

Engagements underway Engagement underway

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Key Focus Area 2010/11 2011/2012 2012/2013

National Health Insurance Pending tabling of policy proposals in NEDLAC Green paper tabled. Awaiting white

paper process.

Awaiting white paper process.

Prioritisation of

Government Spending

Engagements underway Superseded by National Budget

engagements

Monetary Policy Engagements underway Engagements underway

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Key Focus Area 2010/11 2011/2012 2012/2013

Nedlac Review Organisational Development (OD) specialists

commissioned as recommended in the review

report.

Commenced implementation of OD

and Nedlac Review recommendations.

Energy/ Electricity Finalised process on Cushioning the Poor and

Integrated Resource Plan (IRP) , including the

Medium Term Risk Mitigation Programme

(MTRMP).

Engagements on the IRP, including the

MTRMP, socio-economic impact

assessment and implementation

underway.

New Growth Path (NGP) NEDLAC Social Partners participated in NGP

Leadership engagements.

Four NGP Accords i.e. on Basic

Education, Skills Development, Green

Economy and Local Procurement.

National Project to

Reduce Poverty and

Inequality in South Africa

Engagements underway Engagements underway

Management Committee Task Teams

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Section 77 Notices

Applicant Issues 2010/11

Organised Labour Water Quality:

Concern over the deterioration in the quality and

security of water supply.

The application is still under consideration.

Organised Labour Electricity Tariffs:

The electricity tariff increases that affect workers and

the poor in the country. NERSA approved the tariff hikes

that would result in job losses and push workers and the

poor even deeper into poverty

The application is still under consideration.

Solidarity Crime:

The inability of the South African Police Service (SAPS)

to combat crime efficiently.

Applicant requested that the matter be held in

abeyance pending the outcome of bilateral

discussions with relevant stakeholders.

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NATIONAL ECONOMIC DEVELOPMENT AND LABOUR COUNCILANNUAL FINANCIAL STATEMENTS

Statement of Financial Position as at 31 March 2011         

(Restated)31 March 2011 31 March 2010

Note(s) R R Assets

Non-current assetsProperty, plant and equipment 2 8 804 622 9 470 052

 Current assetsTrade and other receivables from exchange transactions 3 135 808 334 260 Cash and cash equivalents 4 5 547 141 5 087 514

5 682 949 5 421 774  

Total Assets 14 487 571 14 891 826

Equity and Liabilities

Capital and reserves/Net AssetsConstituency Capacity funds 5 310 262 356 732 Accumulated funds 12 810 406 13 148 243

13 120 668 13 504 975

Liabilities Current LiabilitiesTrade and other payables from exchange transactions 6 488 142 755 156 Provisions 7 878 761 631 695

1 366 903 1 386 851

Total Equity and Liabilities 14 487 571 14 891 826

Statement of Financial Position 2010-2011

NATIONAL ECONOMIC DEVELOPMENT AND LABOUR COUNCILAnnual Financial Statements

Statement of Financial Performance for the year ended 31 March 2011         

(Restated)31 March 2011 31 March 2010

Note(s) R R

Non-Exchange revenue 8 15 868 000 19 554 000 Exchange revenue 9 732 048 493 680 Operating expenses 10 (17 242 146) (17 455 989)Operating (deficit)/surplus (642 098) 2 591 691 Investment revenue 11 257 792 82 342 (Deficit)/surplus for the year (384 306) 2 674 033

Funds transferred from (to)Community constituency fund 95 799 (60 820)Labour constituency fund 16 471 166 459 Business constituency fund (65 800) (3 766)

46 470 101 873

Net Surplus/(Deficit) for the year (337 836) 2 775 906

Financial Performance 2010-2011

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Audit Findings 2010-2011

Unqualified – Emphasis of matter Assets Leave provision

Management Letter Procurement Audit Committee Internal Audit Lack of Segregation of Duties

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Challenges in NEDLAC’s External Environment

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Challenges in NEDLAC’s Organisational Environment

Strategic Goals and Priorities

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Strategic Goals and Priorities

“Government alone cannot solve the challenges faced by the country, but working together, solutions are possible.”

- President Jacob Zuma in his 2012 State of the Nation Address

“Our new story, our period of transition, is about building modern infrastructure, a vibrant economy, a decent quality of life for all, reduced poverty, decent employment opportunities. It is a story that must be written by all of us. Not just by government. Not just by business. Not just by unions. By all of us, South Africans from all corners of this country.”

- Finance Minister Pravin Gordhan in his 2012 Budget Speech

“The requisite policy stability and coherence will be supported by effective social dialogue that helps establish a broad consensus on long-run policy goals and a vision for the country, and facilitates the necessary tradeoffs and sacrifices by ensuring a visibly fair distribution of the benefits from growth.”

- The New Growth Path, p. 6

“Moving onto this new trajectory of high, sustained and job-creating growth implies a break from our current path dependency. It requires commitment by all sectors of society to contribute to the efforts required to meet our common objectives. There will be moments when difficult choices will have to be made… The ability to do this is a function of leadership among all social partners.”

- The National Development Plan, p. 13424

Dialogue, Trust and Partnership

“The strategic thrust over the next period is to upgrade and strengthen the capacity of the institution on the one hand while promoting more effective forms of engagement between the social partners.”

- Minister Oliphant in the Foreword to NEDLAC’s 2012 Strategic Plan

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