1. Siyaphambili Strategy Siyaphambili Strategy... we are moving forward... PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE FOR LABOUR M AY 2013

2. SIYAPHAMBILI STRATEGY 2011 - 2015  The Siyaphambili strategic plan was crafted on previous plans as the basis for business continuity, and includes input from all key stakeholder groups (internal and external).  The plan sets out the Goals and Strategic Objectives, Key Performance Areas & Targets for the for the organisation for 2011 to 2015.  The strategic plan will determine the allocation of resources and will drive the performance management system of the CCMA.  The plan outlines the strategy for the organisation as an entity and will be the basis for each team within the organisation to determine their priorities in order that the overall organisational goals may be achieved.

3. VisionMission Values Goals Strategic Objectives Key Performance Areas & Targets

4. THE FOUNDATION To be the premier dispute prevention, management and dispute resolution organisation VISION The purpose of the CCMA is to promote social justice and economic development in the world of work and to be the best dispute management and dispute resolution organisation trusted by our social partners MISSION Integrity Diversity Transparency, Excellence Accountability Respect VALUES

5. GOALS

6. STRATEGIC OBJECTIVES SO1 : Enrich the role of the CCMA in the Labour Market.SO2 : Build skills to achieve professionalism. SO3 : Deliver excellent service rooted in social justice ensuring a balance between quality and quantity. SO4 : Enhance and entrench internal processes and systems for optimal deployment of resources. SO5 : Align the structure that will enable optimal implementation of the strategy.. SO6 : Entrench an organisational culture that supports the delivery of our mandate.

7. KEY PERFORMANCE AREAS 2015 2013/2014 1.1The CCMA plays a leading and dynamic role in the facilitation of social dialogue and economic development on identified labour market issues related to the CCMA’s mandate locally and internationally. The CCMA plays a leading and dynamic role in the facilitation of social dialogue with a rising focus on social justice economic development and labour peace on identified labour market issues related to the CCMA’s mandate through published research papers, published Labour Market Review and effective participation in all relevant forums. A minimum of two (2) papers / presentations on topical issues geared towards promoting social dialogue produced, published and or presented to labour market role players. Two, targeted sector summits addressing challenges and issues pertinent to the sector held, with a 70% quality measure attained. Labour market structures further established, with one sector forum established/maintained per Region and four CCMA User Forum meetings held per Region, with 70% quality measure attained. 1.2Provide technical case management support and assistance to local, regional and international organizations. Case Management System fully rolled out to Department of Labour, Bargaining Councils and other identified agencies and an improved shared services system maintained. Implementation of agreed project with identified organizations reviewed and reported on. 1.3Enhance the quality of dispute resolution under the auspices of the Bargaining Councils and Private Agencies. An accreditation and subsidy system that promotes the improvement of dispute resolution services in Bargaining Councils and Private Agencies. 20% more Bargaining Councils accredited and subsidised.Monitor evaluate compliance with the accreditation and subsidy the criteria Facilitate establishment of Bargaining Councils in identified sectors Strategic Objective 1: Enrich the role of the CCMA in the Labour Market.

8. KEY PERFORMANCE AREAS 2015 2013/2014 1.4 User and Stakeholder empowerment capacity building. Capacity and awareness levels for targeted sectors improved by 75% (with vulnerable sectors prioritised). Agric-sector & one additional vulnerable sector per Region engaged through awareness raising & capacity building initiatives, with 10% improvement & a 70% quality measure of activities held. User requests, CCMA initiated activities outside of targeted vulnerable sectors & identified special projects carried out, with a 70% quality measure attained. 1.5 Promotion of employment security. The CCMA is recognized as a leader in the promotion of employment security through high level S189 interventions and Dispute Management interventions. Publicity & capacity building activities delivered in 100% of identified subject areas with a 70% quality measure attained. One external capacity building seminar involving partner organisations delivered in each Region by December 2013 with a 70% quality measure attained. Impact assessment conducted at year-end of the labour market impact of the publicity & capacity building activities, with 10% improvement. A minimum of six partnerships in place, with 2 processes conducted per Region demonstrating partnerships in action through drafted case studies.

9. IMPLEMENTING THE TRAINING LAY OFF SCHEME CHALLENGES Significant blockages prevail at post-CCMA stage. 57 cases at post-CCMA stage that have not reached the training stage and are older than 4 months. 17 of these cases go back to 2011. The situation has deteriorated in the 2012/13 financial year. Out of the 33 cases at post-CCMA stage involving 5,612 workers, none have reached the training stage

10. SUPPORTING THE ECONOMY SAVING JOBS THROUGH FACILITATION

11. KEY PERFORMANCE AREAS 2015 2013/2014 1.5 b Promotion of employment security New target The value added and design of the CCMA Job Saving Strategy, including s189A processes and the TLS, analysed and assessed, with case studies and a report produced. The effectiveness of section 189 and 189A processes improved with one success story per region The CCMA role in the NEDLAC TLS effectively delivered with 90% compliance with standards and plans. The TLS concept promoted through engagement with key role-players. A CCMA Job Saving Unit established to ensure delivery of strategy with the necessary capacity and systems in place. 1.6Participate in the process of amending CCMA relevant Employment Law and policy development. Participated in employment legislation and policy review process. Continue to participate in process of amending employment legislation at NEDLAC. Approved rules and CCMA forms submitted for promulgation 1.7 Assist, support and promote collective bargaining and intervene in bargaining matters of public interest. CCMA is recognized as the leader in assisting, supporting and promoting collective bargaining. 70% Settlement rate on all matters of public interest (section 150 matters). Make high impact offers of assistance in matters of public interest. Three (3) voluntary collective bargaining structures established in significant under-organised sectors. Specialist dispute resolution service and post dispute support services maintained. High impact offers of assistance made in matters of public interest with 75% of offers being accepted At least 60% Settlement rate on all matters of public interest (section 150 matters). Establishment of 2nd bargaining structure finalised Collective Bargaining Improvement process developed and piloted in at least one (1) identified Redline matter Strategic Objective 1: Enrich the role of the CCMA in the Labour Market.

12. SUPPORTING THE ECONOMY Successful intervention in major national disputes: Mining Sector – Lonmin Marikana Agricultural Sector - Farm Workers and Agri South Africa Hospitality Sector - SACCAWU and Sun International National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) PROMOTING INDUSTRIAL PEACE

13. Strategic Objective 2: Build skills to achieve professionalism. KEY PERFORMANCE AREAS 2015 2013/2014 2.1Ensuring the development and delivery of a Conflict Resolution Practitioner occupational qualification. Oversee the establishment of training provider to deliver Conflict Resolution Practitioner qualification, with Conflict Resolution Practitioner courses delivered. LRP Professional Body established with Continuous Professional Development courses delivered Partnership agreements settled with selected public universities to deliver the Labour Dispute Resolution Practice qualification, with the core framework developed and a pilot course initiated. Research into the establishment of a LRP Professional Body completed and a final report drafted. CPD standards and courses for CRP qualification implemented by LRP Professional Body. 2.2 Design & development of training materials & courses to ensure the continuous professional development Training materials designed, developed & updated in terms of CCMA and user needs. Six Candidate Commissioner training modules updated and further developed, with a 70% quality measure attained. Four Specialist Continuous Professional Development (CPD) Commissioner training courses refined, with a 70% quality measure attained. Three specialised courses on the labour law amendments developed [CCMA Commissioners, CCMA support staff, and CCMA users], with a 60% quality measure attained (inter-departmental initiative). Three new CPD courses for CCMA support staff and two new courses for CCMA users completed with a 60% quality measure attained. 2.3 To ensure continuous research & development of effective adult training methodology and techniques Quality training methodologies developed & applied. Year 3 research on enhanced facilitation methods and tools, as well as quality measures, applied to new training material and to 50% of the updates to Candidate Commissioner Training modules. Facilitator guidelines and briefing documents drafted for all Candidate Commissioner Training modules and for training on the labour law amendments.

14. Strategic Objective 2: Build skills to achieve professionalism. KEY PERFORMANCE AREAS 2015 2012/2013 2.4 Development & updating of assessment & mentoring methods Quality assessment & mentorship methods developed and applied. New assessment approaches researched and a report compiled. A post-mentorship monitoring and support structure designed for new Commissioners with an impact assessment to be conducted after 12 months of implementation. New assessments developed for all assessment-linked courses. 2.5 Develop and deliver effective human capital training to align with the needs of the organisation and its people Effective Human capital training delivered. Training plan developed with an emphasis on diversity awareness, CCMA values and soft skills development. At least 80% of the annual training plan implemented with at least a 70% quality measure attained.80% of the scheduled management capacity building initiatives implemented according to the agreed management development programme with at least a 70% quality measure attained. Initiate a two year structured women’s empowerment and development programme developed, focusing on women’s leadership and management. 100% of the first year of the programme implemented with at least a 70% quality measure attained Implementation of the Microsoft Office modules and the CCMA induction programme via the e-learning platform. The impact of capacity building initiatives measured with impact assessments completed for at least three major capacity building initiatives and outcomes reports drafted.

15. Strategic Objective 3: Deliver excellent service rooted in social justice ensuring a balance between quality and quantity KEY PERFORMANCE AREAS 2015 2013/2014 3.1 Entrench social justice in all CCMA services, processes and outcomes All services delivered in compliance with CCMA best practice requirements 80% improvement in the Quality settlement agreement and arbitration awards and ruling Monitor Commissioner Performance and address Non Compliance Quality of settlement agreements, arbitration awards and rulings monitored and evaluated to ensure continuous improvement. Settlement agreement outcomes monitored and reported on to promote return to work (reinstatement and re- employment) outcomes Quality of conciliation processes monitored and evaluated Guideline on Conducting Pre-cons produced and implemented 3.2 Improve accessibility of CCMA services to users Ensure 20 % improvement in the accessibility of CCMA services Implement outcome of review and rationalize process 3.4 Transformation of workplace relations with a view to embedding economic development, industrial peace and promotion of social justice. 20% improvement in workplace relations improved in targeted constituencies. Impact assessments conducted on Build Workplace Relations, Managing Conflict in the Workplace & Unfair Discrimination interventions. One Workplace Change & Transformation project implemented per Region, based on labour market analyses, with a 10% improvement in workplace relations as measured by bi-annual impact assessments. Ongoing research, analysis & monitoring of labour market & labour relations trends and developments conducted in each Region, with 2 reports produced per Region. Six unfair discrimination capacity building initiatives delivered on unfair discrimination per Region, with a 70% quality measure attained.

16. ACCESSIBILITY

17. KEY PERFORMANCE AREAS 2015 2013/20134 3.5 Promotion of user compliance and removal of social justice blockages in the CCMA DR processes 50% improvement in the use of CCMA DR processes of identified problem areas by targeted users, along with the removal of identified social justice blockages. Two user engagements held in each Region with user DR compliance problem areas addressed, with a 10% improvement. The CCMA’s social justice mandate popularised and internalised amongst CCMA staff & management. Two interventions to address targeted social justice blockages implemented per Region, with one intervention on data integrity, with 10% improvement as measured by bi-annual impact assessments. 3.6 Improve the quality of service delivery to ensure speedy dispute resolution. Meet and maintain agreed efficiency targets. Review and agree new efficiencies (where necessary) All regions to meet a minimum of 60% of the targeted efficiencies. All cases conciliated within 30 days. Delivery of awards by commissioners and awards sent to parties must be done within 14 day period. Strategic Objective 3: Deliver excellent service rooted in social justice ensuring a balance between quality and quantity

18. Strategic Objective 4: Enhance and entrench internal processes and systems for optimal deployment of resources KEY PERFORMANCE AREAS 2015 2013/2014 4.1Entrench a culture that focuses on performance and service delivery excellence. Organisation that is performance driven that rewards excellence. Continue to entrench the performance management framework by strengthening the linkage between organisational and individual performance Maintain a deadline driven management reporting environment 4.2Improve and strengthen organisational capacity for holistic internal communication. Ensure effective internal communication resulting in well informed employees regardless of their position in the CCMA. Assess the impact of the communication strategy and mechanisms 4.3 Top of mind awareness of risk management principles and consideration in all planning and decision making throughout the organisation. Entrench risk, control and good governance values in the organization. Monitor& maintain acceptable risk levels. Further embed a Risk Management process in the organisation. Monitor the performance of the Insurance Co. against the SLA 4.4 Best practice policies and governance structures implemented. Review and update all policies to ensure alignment with legal and governance prescripts. Continue to enhance the policy approval process by ensuring adherence to the Policy Plan. Ten Policies revised and approved and implementation commenced. Provide corporate governance support to the Governing Body in order to enhance the oversight role and execution of fiduciary responsibilities Continue the capacity building process of the Governing Body by holding four training sessions Continue to evaluate the performance of the Governing Body and its subcommittees

19. Strategic Objective 4: Enhance and entrench internal processes and systems for optimal deployment of resources KEY PERFORMANCE AREAS 2015 2013/2014 4.5 Ensure public finance management compliance and that the organisation operates as a going concern. Unqualified audit reports. Revised funding model implemented. Implement viable income generation models. On going implementation of measures and controls to ensure unqualified audit Monitor projects expenditure on a quarterly basis Put measures and controls in place to ensure that actual expenditure does not exceed 5% of the allocated budget Maintain a minimum liquidity ratio of 1:1 Maintain budget support to all regions during the bi-annual budget preparation sessions. Entrench the awareness of current governance and legal prescripts in relation to PFMA. Review and enhance internal control processes, procedures and policies. 4.6 Review the Information Communication Technologies (ICT) application architecture to meet the strategic needs of the organization. Appropriate ICT systems implemented that enable effective business use. Implement the revised ICT strategy. Continue to benchmark the ICT environment with best practice

20. MANAGING THE GOING CONCERN ISSUE The CCMA has maintained a healthy liquidity position in all quarters of the financial year under review. The liquidity ratio for each quarter exceeded the targeted ratio of 1:1. These results were achieved through good management of cash flow which included monthly cash flow forecasting and short term investments yielding better returns. Results as at the end of February 2013 compared to February 2012 were as follows:  The liquidity ratio was recorded at 1.14 : 1 (2013) compared to 0.96:1( 2012)  Cash and Cash Equivalent was at R121m (2013) compared to R114m (2012)

21. Financial Status Financial Status PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE FOR LABOUR M AY 2013

22. Statement of Financial Position – March 2013 Non-current assets Non current assets increased by R8,1million from R26,6 to R34,7 million in the current year. The increase on capital expenditure was mainly for the replacement of IT equipment, ERP system upgrade and risk management tool Current assets Accounts receivable balance was R339k of which R312k is under current. Cash and cash equivalents balance was R71.7m which will enable the CCMA to meet its short term obligations. AssetsCurrent year- Unaudited R’000s Prior Year R’000s Non-current assets34,67826,643 Current assets73,82676,536 Total assets108,504103,179

23. Statement of Financial Position (Continued) Non-current liability increased by R4.4m from R12,9 to R17,3 million in the current year. The increase is mainly due to escalation increase on operating rental leases and new leases. Current liabilities grew by R18,1 million from R72,6 to R90,7 million in the current year. The increase is mainly from projects that were put on hold in the prior years as a result of financial constraints. LiabilitiesCurrent year- Unaudited R’000s Prior Year R’000s Non-current liability17,33012,868 Current liabilities90,72972,580 Total liabilities108,05985,448 Accumulated surplus44517,731

24. Statement of Financial Position (continued) CCMA maintains a policy of paying creditors in 30 days. Accounts payable balance was R9,4m of which R80k was over 30 days. Accumulated surplus decreased by R17,3m from R17,7m to R0,445m in the current year. The reduction in accumulated surplus is due to the approved rollover of prior year surplus by National Treasury for use in acquisition of non-current assets, other projects such as ERP upgrade and training.

25. Statement of Financial Performance – March 2013 Government grant increased by 7% from R448,1m to R481,6 million in the current year. Other revenue increased by 82% or R3.7m from R4,5m to R8,2 million in the current year due to increased training demand from the users. This is in line with our strategy to increase self generated income as per National Treasury requirement. Income from investments increased by 30% from R7,6m to R9,8 million in the current year due to strategic investment in funds yielding favourable returns with low volatility on short term investments. Total expenditure of R515,576 million was 3% higher than budget due to: Approved rollover by National treasury of the prior year accumulated surplus of R17,7m to fund acquisition of non-current assets, projects such as ERP upgrade and training that were put on hold in the prior year as a result of financial constraints.

26. Statement of Financial performance (continued) Total expenditure of R515,576 million increased by 21% compared to prior year actuals due to:  Inflationary increases of approximately 7%  Non- inflation related increases such case disbursement which is volume driven,approximately 13% for annual contract escalation on rentals of existing leases and new leases and on average of 12% electricity price hikes and prior projects and training that were put on hold in the prior years as a result of financial constraints.

27. Plans for 2013/14 Financial Year The CCMA has been allocated R594m for the upcoming year 2013/14 of which R80m will be used towards the following projects:  Implementation of Employment Law Amendments  Web enablement of the case management system  Opening new offices in Welkom, Tzaneen and the VAAL triangle in line with expansion of accessibility strategy.  Establishment of a job savings unit These projects will enable the CCMA to extend the reach of its services to the public and improve infrastructure for the planned Employment Law Amendments.

28. Thank you !

29. Strategic Objective 5: Align the structure that will enable optimal implementation of the strategy KEY PERFORMANCE AREAS 2015 2013/2014 5.1 Source and retain the best talent for the organisation. Skilled Human Capital plan implemented with depth in staffing levels as well a fully functional Succession and Retention Strategy. Ensure the implementation of the succession plan that is aligned to the HR strategy and the Siyaphambili 5.2 Promote skills development, employment equity and women in Commissioner and leadership positions. More women in leadership and Commissioner roles. Continuous professional development of staff, embedded. Promote transformation by aligning the implementation of the EE plan, development of women in leadership enhanced 5.3 Align the organizational design that facilitates delivery of the strategy. Optimal organisation design. Implement the revised organisational structure Monitor evaluate compliance with the accreditation and subsidy the criteria

30. Strategic Objective 6: Entrench an organisational culture that supports delivery on our mandate KEY PERFORMANCE AREAS 2015 2013/2014 6.1 Ensure effective development, implementation, evaluation and reporting on the strategy. Strategy fully implemented with all targets achieved. Update and implement the Strategy Development Framework focussing on Performance with zero finding on AOPI. Implement initiatives to change organizational culture and evaluate effectiveness 6.2 Foster a dynamic organisational culture informed by the values of the organization. An organizational culture that supports a performance orientated organization that is recognized as the employer of choice in the field of conflict resolution. Implement initiatives to change organisational culture and evaluate effectiveness

31. OPEN, RESPONSIVE AND ACCOUNTABLE  Strong good governance policy framework Operates a call centre providing information, guidance and complaints and compliments recording  Continuous awareness and information campaign  Feed back box in all regional offices  Robust monitoring of quality of service delivery  Anonymous corruption line  Act decisively, fairly and transparently

32. OPERATIONAL STATISTICS

33. AVERAGE TURNAROUND TIME - CONCILIATION

34. MEASURING PERFORMANCE  Progress of the strategy is tracked and reported quarterly and annually using a Scorecard.  The Scorecard reflects the 6 Strategic Objectives of the organisation with the Key Performance Areas under each Strategic Objective.  Each Key Performance Area has Measurable Outcomes for 2015 and for the year under review (2013/2014)  Results for each Measurable Outcome are evaluated on a weighted 5 point scale  The following symbols are used to report results: - Target achieved - Target partially achieved - Target not achieved  The overall weighted score out of 5 for each Key Performance Area is utilised for internal performance management purposes Organisational Performance Regional Performance Departmental performance Individual performance Monitoring and Evaluation

35. THE BROAD MANDATE Current labour market conditions require a shift in strategic direction - enhancing of certain aspects of delivery of discretionary functions in order to respond to the current context and Arising out of 3 rd year Review of Siyaphambili Strategy by Governing Body Recognition of an increased call for the CCMA to perform a more proactive role in line with its statutory mandate. Two key strategic directions were identified: 1.Maintain focus predominantly on the Mandatory Functions of the CCMA 2.Focus on Mandatory and Discretionary Functions of the CCMA (Broad Mandate of the CCMA)

36. MANDATORY AND DISCRETIONARY FUNCTIONS CCMA mandate is drawn from the purpose of the LRA itself, which is “to advance economic development, social justice, labour peace and the democratisation of the workplace”. Section 115(1) (a) to (d) of the LRA identifies the “ MUSTS ” – the mandatory functions that the CCMA is required to perform. The mandatory functions are extensive and far-reaching. Section 115(2) and (3) identifies the “ MAYS ” – discretionary functions that enhance delivery of the CCMA mandate and do not replace the delivery of the mandatory functions.

37. DELIVERING TO THE BROAD MANDATE

38. Thank you !