Employment Equity CCMA Revolutionising Workplace Relations1 1

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The Year Under Review CCMA Revolutionising Workplace Relations 4

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 CCMA Revolutionising Workplace Relations5 5

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. CCMA Revolutionising Workplace Relations6 6

Delivery Excellence and Challenges in 2012/2013 CCMA Revolutionising Workplace Relations 7

Increasing Accessibility - CCMA Offices CCMA Revolutionising Workplace Relations8 8

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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 CCMA Revolutionising Workplace Relations12

Section 189A Facilitations CCMA Revolutionising Workplace Relations13

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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. CCMA Revolutionising Workplace Relations15

2 220 outreach activities were conducted CCMA Revolutionising Workplace Relations16

Financial Performance CCMA Revolutionising Workplace Relations 17

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. CCMA Revolutionising Workplace Relations18

Financial Highlights CCMA Revolutionising Workplace Relations19 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.

CCMA Revolutionising Workplace Relations20 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 CCMA Revolutionising Workplace Relations21

Statement of Financial Performance CCMA Revolutionising Workplace Relations22

Statement of Changes in Assets CCMA Revolutionising Workplace Relations23

Value Added Statement CCMA Revolutionising Workplace Relations24

2012 And The Lessons To Be Learnt CCMA Revolutionising Workplace Relations25 #1Socio-economic frustration manifested as a labour dispute #2A new form of association emerged – Worker Committees #3Relying on the law and conventional rules of engagement has limitations #4Industrial Relations must be managed as a strategic risk in the organisation #5Socio-economic issues cannot be left unattended #6We need a paradigm shift in Collective bargaining

26 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%). CCMA Revolutionising Workplace Relations

Revolutionising Workplace Relations CCMA Revolutionising Workplace Relations27