1. 24 March 2015 ELRC Budget Review Five-Year Strategic Plan (2015/16-2019/20) & Annual Performance Plan (2015-2016)

2. 1.PART A: Strategic Plan overview 2. PART B: Annual Performance Plan 3. PART C: Overview of the 2015/16 Budget & MTEF estimates 2 PRESENTATION OUTLINE

3. Strategic Plan comprises of the following:  Vision, Mission and Values – not changed  Legislative & Policy Mandates - Emphasis on the pending de-listing as a schedule 3A entity  Situational Analysis - Performance Delivery Environment - Organisational environment  Strategic Outcome Orientated Goals  Strategic Objectives per Programme 3 PART A STRATEGIC PLAN OVERVIEW (2015 - 2020)

4. The Factors that influence plans and activities of Council: Dispute Management Services  Use of legal representatives influence dispute resolution process; and  Unavailability of children’s courts. Collective Bargaining Services  Performance of Council is reliant on rapport amongst Parties. 4 SITUATIONAL ANALYSIS

5. ELRC in the context of the LRA ( Act 66 of 1995, as amended)  ELRC – a bargaining council in the public education sector established ito Sect 37(2) of the LRA of 1995, as amended.  Sect 28 of the LRA sets out the powers and functions of bargaining councils. 5 SITUATIONAL ANALYSIS (cont.) Performance Delivery Environment

6. ELRC in the context of PFMA ( Act 1of 1999, as amended)  ELRC- listed as a schedule 3A public entity ito PFMA  Sect 1 of the PFMA defines the role of a public entity as well as its source of funding  ELRC does not meet this definition 6 SITUATIONAL ANALYSIS (cont.)

7. The provisions of the LRA (the primary legislation applicable in the ELRC) in conflict with the provisions of the PFMA (secondary legislation) Sect 210 : Application of the LRA when in conflict with other laws “(1) If any conflict, relating to the matters dealt with in this Act, arises between this Act and the provisions of any other law save the Constitution or any Act expressly amending this Act, the provisions of this Act will prevail.” 7 SITUATIONAL ANALYSIS (cont.)

8. Focus areas for the council Dispute Management Services  Dispute Prevention (training of Parties, Practitioners & Dispute prevention committees)  Facilitation and Intervention ( training for Parties & Dispute Resolution Practitioners on grievance handling and disciplinary processes)  Dispute Resolution ( special training for Panellists on resolving disputes where a child is a victim; plan to reduce disputes on appointments and promotions; monitoring implementation of collective agreements and enforcement) 8 SITUATIONAL ANALYSIS (cont.) Organisational Environment

9. Focus areas for the council (cont.) Collective Bargaining Services  Incentives for educators  Training and Advocacy on the revised PAM  Training and Advocacy on revised performance management systems (QMS – institution based educators & EMS – office based educators)  Revision of the Councils’ constitution in line with LC’s judgments and the amendment to the LRA 9 SITUATIONAL ANALYSIS (cont.)

10. Focus areas for the council (cont.) Administration Services  Review of the funding model – to address the static flow of income  Building refurbishment project  Investing in Human Capital (Recruitment & Retention)  Introduction of an integrated planning system to improve the business of the Council (Enterprise Resource Planning (ERP) system) 10 SITUATIONAL ANALYSIS (cont.)

11. 11 STRATEGIC OUTCOME ORIENTED GOALS The strategic outcome oriented goals of the ELRC are:  To engage in research and monitoring and evaluation activities to provide an evidence base for improved policies and policy implementation in basic education.  To provide proactive dispute prevention and dispute resolution services.  To ensure that our collective bargaining processes maximises the scope of the Parties’ shared interest.  To provide appropriate support and training for all involved in dispute resolution and collective bargaining.

12. 12 STRATEGIC OUTCOME ORIENTED GOALS (cont.)  To implement sound communication strategies which support and complement the core activities of the Council.  To strengthen social dialogue through supporting and participating in education initiatives such as the QLTC and NECT.  STRATEGIC OBECTIVES PER PROGRAMME – (have been consolidated in part B of the presentation APP)

13.  ELRC Programmes  Programme 1: Administration Services  Programme 2: Dispute Management Services  Programme 3: Collective Bargaining Services  Overview of 2015/16 Budget & MTEF Estimates  ELRC Organogram  Conclusion 13 PART B Annual Performance Plan (2015/16)

14. The Annual Performance Plan, together with the Budget:  Was developed by the management of the ELRC under the guidance of the Accounting Authority;  Is aligned with our Strategic Plan for 2015/16 to 2019/20;  Accurately reflects the performance targets which the ELRC will endeavour to achieve given the resources allocated in the budget for 2015/16;  It contribute towards the achievement of Outcome 1 (improved quality of basic education); and  Is achievable within the mandate of the Council.  The Council is confident that its new strategic vision and the Annual Performance Plan will deliver improved services in the financial year 2015/16. 14 Annual Performance Plan

15.  Amendments to the FETC Act 16 of 2006  Delisting of the ELRC as a Schedule 3A Public Entity 15 Revision to Legislative & Other Mandates

16. 16  Programme 1: Administration Services  Programme 2: Dispute Management Services  Programme 3: Collective Bargaining Services ELRC Programmes

17. PURPOSE:  To provide support services to the core operational functions of the Council, to ensure that it delivers an efficient and effective service on its mandates. 17 Programme 1: Administration Services

18. Finance and Administration 8.1.1.1To instil fiscal discipline, sound corporate governance and compliance with regulatory framework. Compliance, Risk and Audit 8.1.1.2 To add value through assisting the organisation to meet overall corporate objectives by establishing a systematic and disciplined approach to assessing, evaluating, and improving the quality and effectiveness of risk management processes, systems of internal control, and corporate governance processes. Mobilising Employee Services 8.1.1.3 To professionalise the ELRC by investing in human capital. Communication Services 8.1.1.4 To promote the image of the ELRC. 18 Strategic Objectives: Administration Services

19. 19 Strategic ObjectiveAnnual Target 8.1.1.1 Finance & Compliance Regulatory Framework To instil fiscal discipline, sound corporate governance and compliance with regulatory framework Introduction and Implementation of ERP system upgrade completed during the financial year 2015/16 Achieve unqualified audit opinion from external audit at year end 100% completion of approved Annual Internal Audit Plan and issuance of audit reports Annual Targets for 2015/16: Administration Services

20. 20 Annual Targets for 2015/16: Administration Services (Cont.) Strategic ObjectiveAnnual Target 8.1.1.2 Risk Management To add value through assisting the organisation to meet overall corporate objectives by establishing a systematic and disciplined approach to assessing, evaluating, and improving the quality and effectiveness of risk management processes, systems of internal control, and corporate governance processes Risk register updated and approved by the Audit Committee (1) Compliance registers updated and reviewed by the Accounting Officer and AC

21. 21 Annual Targets for 2015/16: Administration Services (Cont.) Strategic ObjectiveAnnual Target 8.1.1.3 Human Capital Professionalise the ELRC by investing in human capital 30 employees to participate in Human development programmes matching entity requirements 4 employees wellness programmes during the financial year All vacant funded positions filled within 3 months of request received

22. 22 Annual Targets for 2015/16: Administration Services (Cont.) Strategic ObjectiveAnnual Target 8.1.1.4 Corporate Image of the Council To promote the image of the ELRC Conduct 4 advertising campaigns to market the Council in different medias (e.g. magazines, radios, social media, newspapers, etc.)

23. PURPOSE: To manage disputes proactively. This is achieved through:  Dispute Prevention  Efficiencies: Special Disputes  Training and Development  Professional Development 23 Programme 2: Dispute Management Services

24. 8.1.2.1.To Provide efficient dispute resolution services. 8.1.2.2To ensure quality of arbitration awards. 8.1.2.3To provide training to Dispute Resolution Practitioners and/or Negotiators. 8.1.2.4To provide Professional Development to Panellists. 24 Strategic Objectives: Dispute Management Services

25. 25 Annual Targets for 2015/16: Dispute Management Services Strategic ObjectiveAnnual Target 8.1.2.1. Dispute Resolution Services Provide efficient dispute resolution services Scheduling cases in jurisdiction for conciliation within 30 days of receipt To schedule cases for arbitration within 45 days after conciliation 8.1.2.2 Quality Control of arbitration awards Ensure quality over arbitration awards Quality Control (QC) done in all arbitration awards concluded during the financial year 8.1.2.3 Training for DRP & Negotiators To provide training to Dispute Resolution Practitioners and/or Negotiators Six (6) training sessions conducted annually for Dispute Resolution Practitioners and/or Negotiators

26. 26 Annual Targets for 2015/16: Dispute Management Services (Cont.) Strategic ObjectiveAnnual Target 8.1.2.4 Professional Development Services To provide Professional Development to Panellists Four (4) training sessions conducted annually for Panellists

27. PURPOSE:  To contribute to the Council’s vision of a strengthened social contract between government, teacher unions and civil society that helps to create a conducive environment for improved quality in teaching and learning.  Such is done by promoting collective bargaining at national and provincial levels so as to ensure the development of effective policies for quality public education in a non-disruptive environment for teaching and learning. 27 Programme 3: Collective Bargaining Services

28. 8.1.3.1To facilitate bargaining on identified matters of mutual interest in public education. 8.1.3.2To administer research programmes on identified issues for research on evidence based teacher welfare and national development. 8.1.3.3To facilitate dispute prevention support services through providing effective administrative functions to shop stewards. 28 Strategic Objectives: Collective Bargaining Services

29. 29 Annual Targets for 2015/16: Collective Bargaining Services Strategic ObjectiveAnnual Target 8.1.3.1 Collective bargaining To facilitate bargaining on identified matters of mutual interest in public education Schedule bargaining and governance meetings within fourteen (14) days from date of agreement Issue notice to parties for scheduled meetings within fourteen (14) days Annually table the management plans for approval for the next bargaining cycle

30. 30 Annual Targets for 2015/16: Collective Bargaining Services (Cont.) Strategic ObjectiveAnnual Target 8.1.3.2 Research Services To administer research programmes on identified issues for research on evidence based teacher welfare and national development Administer resources allocated to approved research programmes 8.1.3.3 Dispute Prevention Support To facilitate dispute prevention support services through providing effective administrative functions to shop stewards Convening a task team meeting on monthly basis

31. 31 2015/16 Budget

32. 32 Overview of 2015/16 Budget & MTEF Estimates

33. 33 Expenditure

34. 34 Budget for 2015/16  The core business of Dispute Management Services and Collective Bargaining Services has been allocated 68% of the total budget of 2015/16.  The approved budget for 2015/16 is R90 million, including capital expenditure, which is an increase of 29 % from the 2014/15.  The increases in the budgets relates to capital expenditure for the refurbishment of the Council owned building.

35. Relating Expenditure Trends to Strategic-Oriented Goals  The funding of the Council’s strategic outcome oriented goals has not been compromised.  The expenditure of the ELRC is closely aligned to the income generated.  The funding model is unique and challenging. 35

36. 36 Relating Expenditure Trends to Strategic-Oriented Goals  Accumulation of surplus funds. These accumulated reserves are adequate over the MTEF period.  Revenue increases by an average of 53% over the MTEF period, excluding the transfers from transformation fund and accumulated reserves, the increase relates to interest from investments and transfers from reserves.

37. 37 Relating Expenditure Trends to Strategic-Oriented Goals  Expenditure increases by an average of 9% or R4.9 million over the MTEF period, mainly due to increases in research, training & development costs and the inflationary increase on other operating expenses.  A significant increase of R15.3 million in the financial years 2014/15 – 2015/16 relates to the refurbishment of own buildings.  The Council projects that deficits will increase over the MTEF period, due to income remaining constant. However, the Council has sufficient reserves to cover this deficit in the short term.  The projected deficits are not sustainable in the long term. It is anticipated that the levies will be revised by the Council to cover these deficits and ensure sustainability in the long term.

38. 38 ELRC Organogram 2015/16

39. 39 Conclusion  The Council appreciates the oversight role of the Portfolio Committee, which ensures accountability for the utilisation of limited resources, employed to fulfill the strategic goals of the Council, which ultimately serves the public education sector.  The Council’s Annual Performance Plan for the 2015/16 financial year outlines a revitalized chart, with well defined and attainable goals to achieve our core objective to maintain labour peace in public education and to improve the quality of education in public schools.

40. Thank you.