Presentation to
Parliament
ELRC
Annual Report
2014/15
14 October 2015
“Realising the importance of a unified determination to
address labour imbalances that impedes progress in public
education.”
Honourable members of the Education
Portfolio Committee
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Ms N Gina, Chairperson
ANC
Ms NR Mokoto
Mr TZM Khoza
Ms JV Basson
Mr HD Khosa
Mr D Mnguni
ANC
ANC
ANC
ANC
ANC
Ms A Lovemore
Ms D Van Der Walt
Ms HS Boshoff (ALT)
DA
DA
DA
Ms NR Mashabela
EFF
Mr AM Mpontshane
IFP
Ms CN Majeke
UDM
Mr MS Mabika
NFP
Mr LM Ntshayisa (ALT)
AIC
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Table of Contents
Section A
Legislative and other Mandates
Strategic Overview
Strategic outcome-oriented goals
Section B
Service delivery environment
Organisational environment
Policy developments and legislative changes
Performance information by Programme
Programme 1:
Programme 2:
Programme 3:
Future
Administration Services
Dispute Management Services
Collective Bargaining Services
Section C
Annual Financial Statements
Conclusion
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SECTION
A
Strategic
Overview
Dedication
4
Legislative and other mandates
 The ELRC is delisted in terms of the Public
Finance Management Act (PFMA) 1 of 1999
from 1st April 2015.
Applicable legislation
 LRA 66 of 1995 (as amended)
 PFMA 1 of 1999 (as amended)
 EEA 76 of 1998 (as amended)
 FETC Amendment Act 3 of 2012
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Legislative and other mandates
(Cont.)
Other mandates
 Service Delivery Agreement of the Minister of
Basic Education
 Action Plan to 2014: Towards the Realisation
of Schooling 2025
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Strategic Overview
Vision
 To improve the quality of teaching and learning through
labour peace.
Mission
 Quality services for excellence in teaching.
Values
The ELRC has adopted the following values:
 Professionalism: Promote behaviour that is generally
accepted to be correct and proper;
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 Transparency: Ensure access to information by citizens;
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Strategic Overview (Cont.)
 Independence: The right to making informed decisions
independently that minimise or avoid conflict of interest;

Accountability: Accepting responsibility for actions and
decisions taken with allowance for corrective action and
penalty for wrong doing;
 Fairness and equity: Adjudication of grievances and
disputes;
 Social Responsibility: Respond to the social issues of the
day; and
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 Efficiency: Delivery of quality services economically.
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Strategic outcome-oriented goals
Strategic Outcome Oriented Goals
Progress
Goal 1:
Research and monitoring and
evaluation activities provide an
evidence base for improved policies
and policy implementation in basic
education.
Council approved research concept
document on Policy and Conditions of
Service for the Institutionalisation of
Grade R Practitioners and appointment
of a researcher to conduct in-country
research.
Goal 2:
Equal importance is attached to
proactive dispute prevention and
dispute resolution.
 Dispute prevention committees in 9
provinces played role in resolving
grievances related to promotional
posts.
 Pool of Panellists & intermediaries
was increased.
 Appropriate venues were secured
for special disputes.
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Strategic outcome-oriented goals
(Cont.)
Strategic Outcome Oriented Goals
Progress
Goal 3:
Collective bargaining processes
maximise the scope of the parties’
shared interest.
Three (3) national collective
agreements were concluded:
CA 1 of 2014: The Process of
Acquiring Organisational Rights in the
Education Sector.
CA 2 of 2014: Quality Management
System (QMS) for School Based
Educators.
CA 1 of 2015: Appointment of a Panel
of Conciliators and Arbitrators.
 No incidences of labour unrest
reported in any of the nine
provinces during period under
review.
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Strategic outcome-oriented goals
(Cont.)
Strategic Outcome Oriented Goals
Progress
Goal 4:
Provide appropriate support and
training for all involved in dispute
resolution and collective bargaining.
Training for Panellists (94) and DRPs
(345)
Goal 5:
Sound communication strategies,
special initiatives and campaigns
support and complement the core
activities of the Council.
Marketing initiatives:
 Education
Handbook;
NTA
Message of Support in Mail &
Guardian;
Education
Week
exhibition and national and at
provincial party conferences.
 Survey research
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SECTION
B
Performance
Information
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Service Delivery Environment
Dispute Management Services
Dispute Prevention and Facilitation
 Proactive approach – a focus on prevention;
 Functional Dispute Prevention Committees /
Task Teams (all provincial chambers); and
 Work of the Dispute Prevention Task Teams
focussed on need for a comprehensive
workshop on Discipline of Educators in
KwaZulu-Natal and Gauteng.
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Service Delivery Environment (Cont.)
Dispute Management Services
Dispute Resolution
 Improvement of efficiencies related to resolution of
disputes on appointments and promotions;
 Recruitment and training of Interpreters and
Intermediaries;
 Secured appropriate venues for special hearings;
 Collective Agreement No. 1 of 2015 on the
appointment of a panel of Conciliators and Arbitrators;
and
 Draft Collective Agreement on ELRC Guidelines for
Promotion Arbitrations.
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Service Delivery Environment (Cont.)
Collective Bargaining Services
 Parties continued to monitor the implementation
of the current policy on incentives;
 Research: Conditions of service of ECD
Practitioners in South Africa;
 PAM task team concluded its work during period
under review;
 Draft Collective Agreement No. 1 of 2014:
Quality Management System (QMS) for SchoolBased Educators.
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Organisational Environment
Administration Services
 Functional SCM unit;
 Recruitment and Retention Strategy;
 Total Reward Strategy, Salary Benchmarking and
Remuneration Policy;
 Council developed 5-year Employment Equity Plan;
 In-house internal audit function to improve
effectiveness of governance, risk management and
control processes and ensure compliance;
 Safety, Health and Environmental (SHE) Committee
for staff; and
 Draft Collective Agreement to address static revenue.
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Policy developments & legislative
changes
FETC Bargaining Unit
 Council approved the FETCBU submission for
the designation of the ELRC to include lecturers
employed in terms of the Public Service Act and
as per the FETC Amendment Act 1 of 2013.
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Policy developments & legislative
changes (Cont.)
ELRC delisting as Schedule 3A Public Entity
 Council embarked on process to delist as Schedule
3A Public Entity in 2014/15 financial year;
 Registrar of Labour Relations highlighted the
Council’s non-compliance with the LRA 66 of
1995, sections 53 (1) and 53 (2)(b). Failure to
delist in terms of PFMA, would have led to review
of the Council’s registration as bargaining council;
 Minister of Finance, acting in terms of Section 47
& 48 of the PFMA, 1999 – delisted the Council
with effect 31st March 2015.
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Performance
Information
by
Programme
Dedication
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Programme 1: Administration Services
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.
Strategic objectives:
 Maintain and improve financial and administrative
systems;
 Procure goods and services within policies and
guidelines;
 Maintain good labour relations;
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Programme 1: Administration Services
Strategic objectives:
 Train and develop staff;
 Ensure a healthy and safe work environment;
 Maintain and improve the premises and security
systems respectively; and
 Provide reliable information technology and
communication systems.
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Performance for 2014/15
Strategic
objectives
Planned Target
2014/2015
Actual Achievement
2014/2015
Administration Services
Minimise fruitless and
wasteful expenditure
Reduce by 100%
Not Achieved
Objective not achieved
due to Parties not
attending scheduled
meetings.
Eliminate irregular
expenditure
Establish a SCM unit
and provide training
No irregular expenditure
SCM officials trained and
developed
Not Achieved
Incurred due to noncompliance with the
requirements of Treasury
Regulations 16A3 &
Practice note 8 of 2007/8.
Not Achieved
Unit established during
period under review &
officials recruited in month
of October – training to be
in the new financial year.
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Status
Performance for 2014/15
Strategic
objectives
Planned Target
2014/2015
Actual
Achievement
2014/2015
Status
Administration Services
Train and develop staff
30
Achieved
53
Introduce and conduct
employee wellness
programmes
Implement the
Council’s Marketing
Strategy to promote
the image of the ELRC
4
Conduct survey research
to measure how the
Council is perceived by
educators
(Sample: 4 000 educators)
Achieved
4
Achieved
Survey research
conducted and findings
presented to
management
(Sample: 1 862
educators)
23
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Hope
Performance for 2014/15
Strategic
objectives
Planned Target
2014/2015
Actual
Achievement
2014/2015
Status
Administration Services
Manage the property
and assets of the
Council with focus on
increasing
effectiveness,
economy,
transparency and
integrity
80% of refurbishment
completed
Not Achieved
100% demolition work
done and excavation
has commenced.
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Hope
Overview:
Administration Services
Finance and Administrative Systems
 Council finalised process of changing banks;
 SARS refunded the Council an amount of
R920 675, in relation to R1,8-million that was
incorrectly deducted.
Information Technology
 Majority of IT findings addressed in 2014/15;
 IT Policies were updated (Disaster Recovery Plan
and IT Policy on Hardware & Software);
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Overview:
Administration Services
Information Technology (Cont.)
 New policies were drafted (IT Change
Management Policy & Patch Management
Policy).
Communications
 Survey research was conducted on how
Council is perceived by educators.
Recommendations of study has informed
marketing activities for 2015/16;
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Overview:
Administration Services
Communications (Cont.)
 Council’s profile was featured in the Education
Handbook and message of support for the NTAs
was placed in the Teacher supplement of Mail &
Guardian;
 Council participated in 10 provincial Party
conferences (exhibitions);
 Exhibition at Education Week; Inspired
Teachers’ Conference and SA Basic Education
Conference.
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Overview:
Administration Services
Building Refurbishment Project
 Site was handed over to appointed contractor;
 Project will be completed in November 2015.
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Overview:
Administration Services
Strategy to overcome areas of under performance
Fruitless and wasteful expenditure
 The Council will introduce a “Cost Order” process in
the 2015/16 financial year in an effort to curb wasteful
expenditure.
SCM unit
 The training of SCM Officials has been deferred to the
2015/16 financial year.
Irregular Expenditure
 Disciplinary actions instituted against the SCM
officer.
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Programme 2:
Dispute Management Services
Purpose:
 To manage disputes proactively (prevention and
resolution).
Strategic Objectives:
 Provision of dispute resolution services
 Training of Dispute Resolution Practitioners
 Panellists Professional Development Services
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Performance for 2014/15
Strategic
objectives
Planned Target
2014/2015
Actual
Achievement
2014/2015
Dispute Management Services
Provision of dispute
100%
resolution services
Conciliations finalised
within 30 days
Training of Dispute
Resolution
Practitioners
Dispute Resolution
Practitioners Trained
Status
Not Achieved
67%
464 disputes were in
jurisdiction, 309 were
conciliated within 30 days
Achieved
345
240
Panellists
80
Professional
Development
Panellists Professionally
developed
Achieved
94
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Overview:
Dispute Management Services
Referrals:
 762 disputes received
 Predominantly related to ULP – Promotion and
Appointments
 Recruitment and training of interpreters
Jurisdiction:
Out of 762 referrals:
 464 in jurisdiction
 298 out of jurisdiction
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Overview:
Dispute Management Services
Provincial Referrals:
44
28
Eastern Cape
149
KwaZulu-Natal
54
Gauteng
59
Western Cape
Free State
136
73
Limpopo
North West
Mpumalanga
85
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Northern Cape
133
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Overview:
Dispute Management Services
Strategy to overcome areas of under
performance
 Continuation of process to recruit and train
Interpreters and Intermediaries in an effort to
overcome delays and postponements.
 Appropriate venues for special hearings.
 Continuous provision of training to both
Panellists and Dispute Resolution
Practitioners to improve the efficiencies in
terms of the quality of outcomes.
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Programme 3:
Collective Bargaining Services
Purpose:
 To contribute to the Council’s vision of a
strengthened social contract between
government, teacher unions and civil society.
 To create a conducive environment for improved
quality in teaching and learning.
 To promote collective bargaining at national and
provincial levels.
 To ensure development of effective policies for
quality public education in a non-disruptive
environment for teaching and learning.
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Programme 3:
Collective Bargaining Services
Collective Bargaining – National
Strategic objectives:
 Collective bargaining
 Research Services
 QLTC
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Performance for 2014/15
Strategic
objectives
Planned Target
2014/2015
Collective Bargaining Services: National
Collective Bargaining
Conclude bargaining
4
on identified matters of
mutual interest in
public education
Actual
Achievement
2014/2015
Status
Achieved
7
Research Services
1 research report available
A report on the factors
that promote labour
peace, educator
morale and wellbeing is
available
Not Achieved
Council approved the
research concept
document on the Policy
and Conditions of Service
for the Institutionalisation
of Grade R Practitioners
and the appointment of a
researcher to conduct the
research, but no report
has been tabled at
Council.
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Performance for 2014/15
Strategic
objectives
Planned Target
2014/2015
Collective Bargaining Services: National
Quality Learning & 27 structures
Teaching Campaign
(QLTC)
Establish and empower
all-inclusive
and
functional
QLTC
structures on all levels
i.e. provincial, district,
circuit/ward and school
levels
Actual
Achievement
2014/2015
Not Achieved
13 structures
The training of districts
only commenced in the
second quarter of 2014
and it impacted
negatively on
achievement of the set
targets.
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Overview:
Collective Bargaining Services
 One evidence-based teacher welfare and
national development issue was identified:
Conditions of service of ECD Practitioners;
 Thirteen (13) delegates participated in ILO
Conference in Geneva during period under
review;
 Three (3) national agreements were
concluded; and
 Five (5) provincial agreements were ratified.
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Hope
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Overview:
Collective Bargaining Services
Three national agreements:
 CA 1 of 2014: The Process of Acquiring
Organisational Rights in the Education Sector.
 CA 2 of 2014: Quality Management System
(QMS) for School Based Educators.
 CA 1 of 2015: Appointment of a Panel of
Conciliators and Arbitrators.
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Overview:
Collective Bargaining Services
Five provincial agreements ratified:
 Mpumalanga CA 1 of 2014: Transfer of Serving
Educators in terms of Operational Requirements
and permanent Appointment of Temporary Teachers
in Vacant Substantive Posts.
 KwaZulu-Natal CA 1 of 2014: Procedure for dealing
with the placement of Further Education and
Training (FET) College Lecturers who remain in
Employment with the Department of Education
KwaZulu-Natal in terms of Collective Agreement
Numbers 4 and 5 of 2007.
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Overview:
Collective Bargaining Services
 KwaZulu-Natal CA 2 of 2014: Framework and
Guidelines for Implementation of Educator
Incentives in KZN.
 Gauteng CA 1 of 2014: Collective Agreement 1 of
2014 on the Conversion of Temporary Appointment
of Post Level 1 Educators into Permanent
Appointment.
• North West CA 1 of 2014: The Provincial
Procedures for Principals Displaced as a Result of
Rationalisation, Merger and/or Closure of Schools
in giving effect to Collective Agreement 2 of 2003.
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Overview:
Collective Bargaining Services
Strategy to overcome areas of under
performance
Proposed recommendations for considerations by the
QLTC Coordinators to ensure the training programme is
strengthened:
 Close cooperation between QCT and provincial
Coordinators;
 Provincial coordinators to assist in the dissemination
and advocacy of the training of districts and
stakeholders;
 Compilation of accurate data of all QLTC structures
and stakeholders.
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Hope
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Overview:
Collective Bargaining Services
Strategy to overcome areas of under
Performance
 Research on Conditions of Service for the
Institutionalisation of Grade R Practitioners,
will be concluded in the 2015/16 financial year.
Future
Hope
44
Provincial performance for 2014/15
Strategic
objectives
Planned Target
2014/2015
Actual
Achievement
2014/2015
Status
Collective Bargaining Services: Provincial
Consultation, Implementation and Monitoring of Collective Agreements and
Policies
Post Provisioning
A consolidated report
on the consultation
process for post
provisioning is
available.
4 Meetings
Incentives for
Educators
Monitoring reports on
the implementation of
incentives for
educators are
available.
4 Meetings
Achieved
4 Provinces
Not Achieved
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
Achieved
4 Provinces
Not Achieved
Free State
Gauteng
KwaZulu-Natal
Mpumalanga
Western Cape
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SECTION
C
Annual
Financial
Statements
Success
46
Analysis of Levy Contributions
DETAILS
2014/15
2012/13
2011/12
49,213
49,322
49,319
49,693
409,236
410,816
410,991
414,104
(109)
3
(374)
271
(6,931)
(175)
(3,113)
2,254
TOTAL LEVIES (Rmil)
TOTAL NUMBER OF CONTRIBUTORS
2013/14
AVG INCREASE/(DECREASE) IN TOTAL
LEVIES (Rmil)
AVG INCREASE/(DECREASE) IN
CONTRIBUTORS
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Financial Performance
2014/15
2013/14
2012/13
2011/12
R’000
R’000
R’000
R’000
TOTAL REVENUE
49,213
49,322
49,319
49,693
OTHER INCOME
7,276
5,696
4,949
4,492
PERSONNEL RELATED
EXPENSES
(19,988)
(15,549)
(14,555)
(14,625)
TOTAL OPERATING EXPEDITURE
(31,667)
(30,033)
(29,350)
(33,312)
Future
SURPLUS/(DEFICIT)
4,833
9,436
10,364
6,247
Hope
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Financial Performance
FINANCIAL PERFORMANCE
60,000
50,000
40,000
30,000
20,000
10,000
Future
0
2014/15
Total revenue
2013/14
2012/13
Total expenditure
Employee cost
2011/12
Surplus for the year
Hope
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Financial Performance per Programme
Programme Name
Budget
Actual Expenditure
(Over)/Under
Expenditure
Actual %
Dispute Management Services
10,115
12,712
(2,597)
126%
Collective Bargaining Services
30,602
24,028
6,574
105%
Executive Services
4,493
3,772
721
84%
Corporate Services
12,764
12,938
174
101%
Capital Expenditure
9,820
2,859
6,961
29%
67,794
56,309
11,485
83%
Total
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Financial Position
2014/15
2013/14
2012/13
2011/12
R’000
R’000
R’000
R’000
Future
TOTAL INCOME
CASH & CASH EQUIVALENTS
56,489
55,018
54,268
54,185
136,541
127,197
109,749
95,814
Hope
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Conclusion
The Council appreciates oversight role that the Portfolio Committee played
over the years.
Principles of good corporate governance will remain an integral part of the
Council’s operations.
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Thank You.
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