Presentation to Parliamentary Portfolio Committee on Labour – 3 July 2014

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994

Introduction

Nedlac achievements in implementing its APP 2013-14

Strategic Priorities 2014-15

Summary of Expenditure 2013 - 14

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Strategic Plan - Goals

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994

Objectives of Nedlac

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Strive to promote the goals of economic growth, participation in economic decision-making, social equity

Seek to reach consensus and conclude agreements on matters pertaining to social and economic policy

Consider all proposed labour legislation relating to labour market policy before it is implemented or introduced in Parliament

Consider all significant changes to social and economic policy before it is implemented or introduced in Parliament

Encourage and promote the formulation of coordinated policy on social and economic matters

Vision

To promote growth, equity and participation through social dialogue.

MissionTo give effect to the Nedlac Act by ensuring effective public participation in labour-market and socio-economic policy and legislation and to facilitate consensus and cooperation between Government, Labour, Business and the Community in dealing with South Africa’s socio-economic challenges.

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The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994

Introduction

Nedlac achievements in implementing its APP 2013-14

Strategic Priorities 2014-15

Summary of Expenditure 2013 - 14

5

Strategic Plan - Goals

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 6

Strategic Thrust

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 7

Strategic outcome-oriented goal 1 Promote economic growth, social equity and decent work.

Goal statement Contribute to the achievement of decent work and the

economic growth targets, as set out in the National

Development Plan and the New Growth Path, and contribute

to the reduction of social inequity, as measured by the GINI

coefficient.

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 8

Strategic outcome-oriented goal 2 Promote and embed a culture of effective social dialogue and engagement.

Goal statement Contribute to the promotion of sound labour relations,

consensus and greater cooperation between the Social

Partners.

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 9

Strategic outcome-oriented goal 3 Promote effective participation in socio-economic

policymaking and legislation.

Goal statement Contribute to the policymaking and legislative process through

strengthened compliance with the Nedlac Protocol and the

Protocol on the Working Relationship between Nedlac and

Parliament.

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 10

Strategic outcome-oriented goal 4 Enhance organisational effectiveness and efficiency.

Goal statement Improved governance, leadership and secretariat

performance as measured by a reduced number of relevant

audit findings, and increased levels of stakeholder

satisfaction.

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994

Introduction

Nedlac achievements in implementing its APP 2013-14

Strategic Priorities 2014-15

Summary of Expenditure 2013 - 14

11

Strategic Plan - Goals

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Composite Summary

Matters on APP Arising matters

Category Number tabled

Number concluded

Number tabled

Number concluded

Legislation 3 3 100% 8 5 63%

Policy 17 15 88% 5 5 100%

Section 77 Notices - - - 10 7 70%

FRIDGE Research 2 3 150% - - -

Demarcations - - - 31 31 100%

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Key engagements in Chambers

Development Chamber

Labour Market Chamber

Public Finance and Monetary

Policy Chamber

Trade and Industry Chamber

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20 Years of Democracy Nedlac has made a significant impact on Policy, Legislative and Institutional Design -Improved performance and Output

Social Dialogue is under pressure – role and relevance of Nedlac questioned. Adversarialism , Trust and Consensus Deficit

Labour Market Key - Fragmentation , Conflict Skills and Social Protection Challenges

Limited socio-economic impact. - Triple Challenge Employment , Inequality and Poverty

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994

Introduction

Nedlac achievements in implementing its APP 2013-14

Strategic Priorities 2014-15

Summary of Expenditure 2013 - 14

16

Strategic Plan - Goals

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Revamp building & facilities

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Promoting and embedding a culture of effective social

dialogue and strategic engagement

Promote economic growth, social equity and decent work

Adherence to Protocols

Governance Framework

Stakeholder Capacity &

Commitment

Effective leadership Governance and social partner engagement

Human resources Performance

Risk and Financial

Improved Systems and Processes

An effective and efficient Secretariat

Promote effective participation in policymaking

and legislation

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Revamp building & facilities

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Revamp building & facilities

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The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994

Introduction

Nedlac achievements in implementing its APP 2013-14

Strategic Priorities 2014-15

Summary of Expenditure 2013 - 14

20

Strategic Plan - Goals

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 21

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RONELL TO PROVIDE

INCOME Actual 2011/2012

Actual 2012/2013

Actual 2013/2014

Budget 2013/2014

Budget 2014/2015

Budget 2015/2016

Budget 2016/2017

Total income 24 957 500 25 601 843 26 807 722 26 679 000 27 939 000 29 296 000 30 829 000

EXPENDITURE

EXPENDITURE Actual 2011/2012

Actual 2012/2013

Actual 2013/2014

Budget 2013/2014

Budget 2014/2015

Budget 2015/2016

Budget 2016/2017

% % %

Capital Expenditure 665 250 487 081 347 451 608 128 579 747 200 000 894 977 2.7 1.9 1.3

Core Operations 7 434 285 3 976 661 3 796 963 3 803 028 3 775 486 4 755 699 4 854 574 29.8 15.5 14.2

Capacity Support 2 624 403 2 211 649 2 638 855 3 074 610 3 382 071 3 720 000 3 917 160 10.5 8.6 9.8

Administration 2 497 461 4 762 565 9 353 766 8 698 134 9 077 196 8 828 301 8 751 014 10.0 18.6 34.9

Staff Cost 7 384 005 7 395 041 10 281 465 10 495 100 11 124 500 11 792 000 12 411 275 29.6 28.9 38.4

Sub Total 20 605 404 18 832 997 26 418 500 26 679 000 27 939 000 29 296 000 30 829 000

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 22

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SURPLUS/(DEFICIT) 4 352 096 6 768 846 389 222 - - -

The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 23

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The Nedlac Act, Act 35 of 1994 was one of the very first pieces of legislation to be signed-off by the first Democratic Parliament in 1994 24

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INCOME

INCOME Actual 2012/2013

Actual 2013/2014

Budget 2013/2014

Budget 2014/2015

Budget 2015/2016

Budget 2016/2017

Total income 25 601 843 26 807 722 26 679 000 27 939 000 29 296 000 30 829 000

EXPENDITURE

EXPENDITURE Actual 2012/2013

Actual 2013/2014

Budget 2013/2014

Budget 2014/2015

Budget 2015/2016

Budget 2016/2017

Capital Expenditure 487 081 347 451 608 128 1 030 000 1 167 000 895 000 Core Operations 3 976 661 3 796 963 3 803 028 9 351 000 9 277 000 9 702 000 Capacity Support 2 211 649 2 638 855 3 074 610 4 050 000 4 269 000 4 500 000 Administration 4 762 565 9 353 766 8 698 134 10 366 000 9 690 000 10 513 000 Staff Cost 7 395 041 10 281 465 10 495 100 13 935 000 14 687 000 15 480 000 Sub Total 18 832 997 26 418 500 26 679 000 38 732 000 39 090 000 41 090 000

SURPLUS/(DEFICIT) 6 768 846 389 222 - (10 793 000) (9 794 000) (10 261 000)

Thank you

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