Parliamentary Portfolio Committee Presentation 2008/2009 Budget & Planning 25th March 2008

Presentation Synopsis BUDGET 2008 / 2009 Methodology & Policy 2008/2009 Budget Proposal Challenges Planning 2008 / 2009 Tsoso Strategy Vision, Mission & Values Strategic Focus Areas Goals and Measures 2008/ 2009 Year Plan 2008 / 2009 Year Plan excerpts Operational Efficiencies

Budget 2008 / 2009

Budget Methodology & Policy Zero based budgeting methodology adopted in line with Government’s Medium Term Expenditure Framework (MTEF) 2% increase projected in the grant received for the 2008/09 year and a 6% increase for the two financial years to the end of March 2011 For all other expenditure items the projection is an average 6% increase for the two financial years to end March 2011 The accumulated surplus for the MTEF projections as a percentage of the grant is 6% for the 2007/08 financial year, the policy position of the organization is to have it at 5% and for the MTEF projected period it is at 5% The current ratio for the 2007/08 financial year is at 1.07:1 and for the 2010/11 financial year is at 1.51:1; the organisation will be able to meet its short term obligations The organisation has taken a policy position to have cash on hand at all times to meet two months worth of obligations which translates to R45 million.

2008 / 09 BUDGET PROPOSAL

Budget Challenges The budget presented above will enable the Commission to carry out its mandate, however additional funding will assist in addressing the following challenges: Implement digital recording for arbitration hearings To ensure the quality of records filed for reviews in the Labour Court Increase geographic access Open new offices in areas such as Benoni and Rustenburg to improve access to the public Implement full staff complement The current budget caters for only 460 posts, while the budgeted staff for the organisation is 495 fulltime staff Go green & show our support for the power crisis Use renewable energy (Solar energy) in some offices to reduce reliance on power from Eskom

Planning 2008 / 2009

Tsoso Strategy ( “ revive, re-awaken” ) 2007 to 2010

Vision In 2010 … We will be trusted by our social partners to lead and facilitate the transformation of labour relations in South Africa. We will be evaluated by the quality of our processes and the value of our mediation, judgements and decisions, as well as our ability to resolve disputes fairly. Our ideals of social justice, equity and shared prosperity are principles that will govern everything that we do. We will be proudly South African, and will be willing learn, and in turn to share our knowledge, skills and experience with our other African partners. We will hold dear the principles of professionalism, integrity, service and the value of sharing trustworthy relationships – our employees and associates will be proud to build careers that are associated with the CCMA.

Mission The purpose of the CCMA is to promote social justice and fairness in the workplace. This will be done through the delivery of ethical, quality, innovative and cost-effective services of Dispute Prevention and Dispute Resolution that are in accordance with the law.

Values Integrity, Honesty and Ethics Diversity Transparency and Openness Quality Accountability, Responsibility and Commitment Respect and Trust

Strategic Focus Areas Reposition the CCMA in the Labour Market (intensifying and broadening outreach), where social justice and restoring dignity are a focus of our processes High performance, high impact delivery of compliant services, where there is a balance between quality and quantity Reposition the organisation to meet the future strategic needs of the organisation Enhance and entrench internal processes and systems to ensure effective deployment of resources.

Goals for next 3 years: Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times Ensure user-friendly, quality services that are delivered with speed Maintain operational effectiveness while ensuring services are cost effective

TSOSO STRATEGY GOALS GOAL 1 Promote social justice though the professional delivery of services, while ensuring compliance with legislation at all times Measures of success for this goal are: In 2010, the external perception of the services delivered by the CCMA will have shifted - from [baseline] PLUS 20% By 2010 be an established ‘quality control’ role player and provider of continuous professional development through education, training and skills development services

Ensure user-friendly, quality services that are delivered with speed TSOSO STRATEGY GOALS GOAL 2 Ensure user-friendly, quality services that are delivered with speed Measures of success for this goal are: By 2010, 70% of all disputes will be settled at conciliation phase (process of 1st instance) [minimum target = 50%, stretch target = 75%] By 2010, not more than 10% of decisions will be challenged in the Labour Court By 2010, all administrative rework will be 0% By 2010 , al process rework will be reduced by 20% By 2010, all conciliations will be conducted within the statutory time frame By 2010, 70% of all public interest interventions (s150) will be settled In 2010,our value-add services will fund 1% of our annual budget

TSOSO STRATEGY GOALS GOAL 3 Maintain operational effectiveness while ensuring services are cost effective Measures of success for this goal are: By 2010, staff turnover will be halved from 2007 baseline By 2010, key skills loss will not exceed 7% By 2010 we will have strategic redundancy in job skills (job-coverage ratio); we will be able to meet case management demands with ‘normal’ resource levels. This means that the case management administration will be completed with a variance of no more than 5% of planned workload In 2010, a budget model will be in place that will enable funding from government based on unit cost per projected number of services In 2010, the ‘unit cost’ for delivery of compulsory services will have stabilised to ensure that there is not more than a 5% variance from budget allocation

Revised Structure (National)

2008 / 2009 Year Plan Year 2 of a comprehensive 3 year plan (refer Document Pack) Addresses Strategic Focus Areas, Goals & Measures and Responsibilities Delegated across Organisational Functions Review of Year 1 plan accounted for Communicated throughout Organisation via Provincial workshops Translated into Provincial Year Plans

Capacity and Outreach Year 2 Plan (excerpt)

2008 / 2009 Year Plan Mediation Year 2 Plan (excerpt)

Operational Efficiencies 2008 / 2009 Year Plan Operational Efficiencies

Revolutionising Workplace Relations Thank you! Revolutionising Workplace Relations