Presentation to the Portfolio Committee on Labour

1. Presentation to the Portfolio Committee on Labour REVIEW OF 2007 / 2008 FINANCIAL YEAR 10th February 2009

2. PRESENTATION OVERVIEW

3. Tsoso Strategy( “ revive, re-awaken” )

4. STRATEGIC GOALS

5. STRATEGIC FOCUS AREAS

6. TSOSO DASHBOARD Measuring performance against Strategic Goals

7. GOAL 1- Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times

8. GOAL 1- Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times

9. GOAL 2- Ensure user-friendly, quality services that are delivered with speed

10. GOAL 2- Ensure user-friendly, quality services that are delivered with speed

11. GOAL 2- Ensure user-friendly, quality services that are delivered with speed

12. GOAL 2- Ensure user-friendly, quality services that are delivered with speed

13. GOAL 2- Ensure user-friendly, quality services that are delivered with speed

14. GOAL 2- Ensure user-friendly, quality services that are delivered with speed

15. GOAL 2- Ensure user-friendly, quality services that are delivered with speed

16. GOAL 3– Maintain operational effectiveness while ensuring services are cost effective

17. GOAL 3– Maintain operational effectiveness while ensuring services are cost effective

18. GOAL 3– Maintain operational effectiveness while ensuring services are cost effective

19. GOAL 3– Maintain operational effectiveness while ensuring services are cost effective

20. GOAL 3– Maintain operational effectiveness while ensuring services are cost effective

21. KEY ACHIEVEMENTS AND NON-ACHIEVEMENTS

22. Goal 1 - Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times • KEY ACHIEVEMENTS • Implemented a structured approach to identify, offer assistance in and manage disputes of national interest. • Sought to increase our Social Partners’ confidence in the CCMA and its processes by regularly reporting significant mediation successes in the media. • Took a proactive approach to the interpretation of labour law through cases such as SIDUMO & ANOTHER V RUSTENBURG PLATINUM MINES LTD & OTHERS (2007) 28 ILJ2405 (CC) to ensure that the CCMA successfully re-affirmed the Commissioners discretional power to decide the fairness in dismissal disputes and successfully avoided substantial additional costs if the PROMOTION OF ADMINISTRATIVE JUSTICE ACT 3 of 2000 became applicable to CCMA processes.

23. Goal 1 - Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times • KEY ACHIEVEMENTS • Finalised a process to determine the objectives the CCMA and other stakeholders regarding the delivery of certified skills programmes and qualifications in the Industrial Relations practice arena. • A significant number of proactive, high impact outreach activities were conducted to raise awareness, to develop skills, to build partnerships. These were conducted with CCMA users and social partners across all South African regions. • Greatly improved quality of CCMA education, training and development interventions for the CCMA staff (full-time and part-time) enhancing overall CCMA capacity to deliver a professional service.

24. Goal 2 - Promote social justice through the professional delivery of services, while ensuring compliance with legislation at all times • KEY NON-ACHIEVEMENTS • Inadequate focus of dispute management / outreach interventions in vulnerable and high conflict sectors. • Inadequate capacity to develop education and training materials, as well as inadequate capacity to develop assessment methods and tools. • While recruitment processes have significantly improved the quality of Commissioners who have recently been recruited, there is a need to refine these processes further to ensure ongoing improved quality appointments of Commissioners. • There needs to be a better emphasis placed on promoting the primary remedies of the Labour Relations Act.

25. Goal 3 - Ensure user-friendly, quality services that are delivered with speed • KEY ACHIEVEMENTS • Significant improvement in operational efficiencies (response to queries and advisory services, execution of operational services). Key focus areas have been on settlement rate and late awards, and it has been a major success to bring the agreed targets within the range for both these measures. • Improved focus on putting the customer at the centre of all operational processes, including the introduction of dedicated complaints facilities to enable speedy resolution of issues. • Proactive approach to managing disputes of national interest led to resolution of a number of disputes in various sectors and jurisdictions.

26. Goal 3 - Ensure user-friendly, quality services that are delivered with speed • KEY ACHIEVEMENTS • A total of 61% of all disputes were settled through conciliation, the process of first instance. In excess of 98% of settlement agreements arising from these matters were complied with. • Accessibility to CCMA services has been extended through the introduction of some additional venues in the outlying areas, as well as the implementation of services through the Department of Labour (provide information of cases to parties).

27. Goal 3 - Ensure user-friendly, quality services that are delivered with speed • KEY NON-ACHIEVEMENTS • Despite a 50% improvement on last year, resulting from better management of awards rendered, the statutory target of 0% late awards for the year was not realised. • Failed to ensure optimum turnaround time in the process of S143 applications (enforcement of settlement agreements and awards).

28. DETAILED OPERATIONAL SCORECARD

29. REGIONAL PERFORMANCE

30. REVIEW OF 2007/08 ANNUAL FINANCIAL STATEMENTS • HIGHLIGHTS • Grant Income from the DoL increased 11% from a base of R234 million • Increase in funding used to: • fund the increase in the case load of the CCMA • address accessibility issues • acquire much needed Fixed Assets

31. REVIEW OF 2007/08 ANNUAL FINANCIAL STATEMENTS • HIGHLIGHTS • Administrative Expenses increased 3% year on year below reported average inflation for the same period (8%) • Sub-inflation increase in Administrative expenses attributable to improved cost control in the CCMA • Operating expenses increased 8% year on year in line with reported average inflation for the same period (8%)

32. REVIEW OF 2007/08 ANNUAL FINANCIAL STATEMENTS • HIGHLIGHTS • Staff costs and benefits increased 19% year on year • Increase in staff costs attributable to • revision of the remuneration policy • increase of 13% in permanent staff numbers from 400 to 452 • Increase in staff complement is in part to address issues of accessibility and operational requirements.

33. COMPARATIVE FINANCIAL REVIEW

34. REVIEW OF 2007/08 ANNUAL FINANCIAL STATEMENTS • Disclosures to the Annual Financial Statements • for year ending 31 March 2008: • Note 23, the entity could be held liable by the South African Revenue Services (SARS) for taxation as per the statutory taxation rate applicable to individuals and possible interest and penalties thereon. The entity is actively engaging with SARS to determine an outcome on this matter and the amount of the obligation cannot be measured with sufficient reliability • Note 23, the CCMA is a defendant in a law suit. The CCMA is opposing the claim and the outcome of the case cannot presently be determined. No provision was made in the financial statements for any liability that might result however, a contingent liability of R3.5 million was disclosed in the notes to the financial statements.

35. Thank you! Revolutionising Workplace Relations