1. Presentation to the Portfolio Committee - Labour
NEDLAC
Presentation to the Portfolio Committee - Labour
MID-YEAR REPORT
15 February 2017

2. TABLE OF CONTENTS INTRODUCTION NEDLAC STRATEGIC OBJECTIVES
OVERVIEW OF PERFORMANCE PER PROGRAMME: QUARTER 1 &
FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE
CHALLENGES EXPERIENCED AND REMEDIAL ACTION
IMPACT REALISED THROUGH NEDLAC’S WORK
PRIORITIES FOR THE FINANCIAL YEAR 2016/17 – GOING FORWARD
Chief Directorate Communication |

3. NEDLAC STRATEGIC OBJECTIVES3

4. NEDLAC STRATEGIC OBJECTIVES
Nedlac has made progress towards realising its strategic objectives as set out in its APP in the first and second quarters of financial year.
Nedlac’s strategic objectives are as follows:
Effective governance and strategic leadership.
Provision of efficient and reliable back office support services.
Improved risk management and financial oversight.
Improved facilities management.
Office administration systems enhanced and monitored.
Strengthening organisational culture and performance.
Effective engagement on draft policy and legislation within the framework of the Nedlac Act, Constitution and Protocols.
Conclude matters under consideration within the framework of the Section 77 Protocol.
Conclude matters under consideration within the framework of the NEDLAC Protocol.
Promote social dialogue through communication, information and capacity building.
Compliance with the Nedlac Policy on Constituency Capacity Building Budgeting and Expense
The work to realise these objectives is undertaken through three programmes: namely: Administration, Core-Operations and Constituency Capacity Building.

5. OVERVIEW OF PERFORMANCE PER PROGRAMME: QUARTER 1 AND 2 2016-175

6. QUARTER 1– PERFORMANCE OVERVIEW PER PROGRAMME
Programmes
Annual Planned Indicators
Targets reporting in Quarter 1
Achieved
Not Achieved
Overall Achievement
1: Administration 14 9 8 1
89%
2: Core Operations 34 10
91%
3. Constituency Capacity Building Funds 3
100%
Summary of Performance 51 22 20 2 6

7. QUARTER 1 PERFORMANCE OVERVIEW ON ARISING MATTERS
Programmes
Number of matters tabled/ carried over from
Number of matters achieved in Quarter 1
Number of matters on-going and not reporting in the Quarter 1
No of matters not achieved
Section 77 4 3 1 7

8. QUARTER 2– PERFORMANCE OVERVIEW PER PROGRAMME
Programmes
Annual Planned Indicators
Indicators with targets reporting in Quarter 2
Achieved
Not Achieved
Overall Achievement
1: Administration 14 10 4
71%
2: Core Operations 34 21 16 5
76%
3. Constituency Capacity Building Funds 3
100%
Summary of Performance 51 38 29 9 8

9. QUARTER 2 PERFORMANCE OVERVIEW ON ARISING MATTERS
Programmes
Number of matters tabled in Quarter 2 of 2016/17
Number of matters achieved in Quarter 2
Number of matters on-going and not reporting in Q2
No of matters not achieved
Section 77 3 2 1 9

10. FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE
2016/17 NEDLAC
FINANCIAL EXPENDITURE LINKED TO ORGANISATIONAL PERFORMANCE 10

11. SOURCES FOR 2016/17 FINANCIAL YEAR
1. Grant from National Department of Labour (main source)
2. Interest earned from Call Account
3. Sundry Income (sale of old and unused assets, proceeds from Insurance, recoveries and other income) 11

12. BUDGETED INCOME FOR 2016/17 FINANCIAL YEAR
Description of Income
Amount
Grant from Department of Labour
R 30,317,000
Interest Received
R 420,000
Sundry Income
R 132,000
Total income
R 30,869,000 12

13. ANNUAL BUDGET ALLOCATION
ALLOCATION FOR 2016/2017 13

14. 2016/2017 ECONOMIC CLASSIFICATION Q214

15. 2016/2017 PROGRAMME 1: EXPENDITURE INFORMATION15

16. 2016/2017 PROGRAMME 2: EXPENDITURE INFORMATION Q2

17. 2016/2017 PROGRAMME 3:EXPENDITURE INFORMATION Q2

18. 2016/17 ALL PROGRAMME: EXPENDITURE INFORMATION.
Programme
Annual Budget
Actual To Date
Expenditure To Date %
Programme 1 R R
48%
Programme 2 R R
45%
Programme 3 R R
29% 18

19. CHALLENGES AND REMEDIAL ACTIONS
Qualified audit opinion for
An action plan to address the findings of the Auditor-General has been developed and is being implemented.
Resignation of staff
Positions for the TIC Senior Coordinator and Head: Programme Operations have been filled.
A process to finalise the filling of the Administrator position is being finalised.
Delays in the approval of staff benefits
Deliberations to finalise the approval of staff benefits are underway.
Capacity of the Finance Department
The engagements with Exco are still underway on the recommended restructuring of the Finance Department to ensure optimal output and efficiency.

20. IMPACT REALISED THROUGH NEDLAC’S WORK20

21. IMPACT REALISED THROUGH NEDLAC’S WORK
The primary goal for Nedlac is for social partners to strive to reach consensus on key socio-economic and labour market issues in South Africa.
Significant achievements have been, and continue to be made in respect of the work of Nedlac.
These achievements, among other things, relate to:
the quality of engagements on legislation that passes through Nedlac
Time taken to conclude engagements on legislative matters; and
Special sessions held by Chambers to address various issues facing South Africa.
Key pieces of legislation have been finalised to bring about socio-economic and labour market transformation.

22. IMPACT REALISED THROUGH NEDLAC’S WORK: SPECIAL SESSIONS
Nedlac, through social dialogue by social partners has contributed to growth and development.
In the first two quarters of , in addition to engagements on draft legislation, various sessions or engagements have been held by Chambers to address challenges facing the country. These include:
Session on Medium Term Budget Policy: Provides inputs which are incorporated by National Treasury in the Medium Term Budget Policy Statement.
Session on financial inclusion held with FinMark Trust (an NGO which helps financial institutions in policy making). The chamber comments are usually incorporated in FinScope, a research paper that FinMark produces and distributes to various institutions and public at large.
Sessions with the Davis Tax Committee: Assist the Committee in preparation for its reports on various topics. These reports are submitted to the Minister of Finance for consideration.
Inputs on regional and international trade agreements.

23. IMPACT REALISED THROUGH NEDLAC’S WORK: NMW & LABOUR RELATIONS
The engagements on the National Minimum Wage and Labour Relations amendments, even though they are still in progress, they have sparked the interest for the general public to also engage on these issues.
It is anticipated that the outcomes of these engagements will result in bridging the inequality gap, promote decent work and ensure effective, productive and stable labour market.
These engagements are further expected to necessitate amendments in the legislation.

24. PRIORITIES FOR 2016-17 FINANCIAL YEAR24

25. PRIORITIES FOR 2016/17 GOING FORWARD
Finalise the Labour Relations Indaba engagement process.
Enhance corporate governance through compliance with the Nedlac Act, Constitution, Protocols and other applicable Government regulations.
Expedite the implementation of the Audit Action Plan
Build capacity of the Secretariat and increase staff retention rate.
Continue to improve achieving targets within the set timeframes.
Expedite engagements on draft legislation and policy, tabled for consideration at Nedlac (including the Comprehensive Social Security and Retirement Reforms). 25

26. Thank You…