NEDLACBriefing to Parliamentary Select Committee- Labour and Public
Enterprises: 06 June 2012
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• Origins, Structure and Mandate of NEDLAC
• Overview of the 2010/11 period
• External and Organisational Challenges
• Strategic Goals and Priorities
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The NEDLAC Act, Act 35 of 1994, was one of the very first pieces of legislations to be signed off by
the first democratic Parliament in 1994.
NEDLAC was established through an Act of Parliament.
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NEDLAC Structure and Governance
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LABOUR GOVERNMENT
OVERALL CONVENORS
D GeorgeGeneral SecretaryFEDUSA
M SamelaGeneral SecretaryNACTU
Z VaviGeneral Secretary COSATU
BUSINESSCOMMUNITY
R Bhengu L Kganyago SANCO WNC
T TshefutaSAYC
S Mapailla T MabuzaFSCC NCASA
A MadellaDPSA
L KettledasGovernment
B NtshalintshaliLabour
L LotterBusiness
L NareCommunity
Minister of LabourM Oliphant
Minister of Public Works T Nxesi
Minister of Finance P Gordhan
Minister of Trade and Industry Dr R Davies
EXECUTIVE DIRECTOR
F MtobaPresident BUSA
N MajokweniCEOBUSA
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Key Focus Area 2010/11 2011/12 2012/13
Decent Work Country
Programme
Ongoing Ongoing Ongoing
Social Plan Review Finalised
Labour Market Policy
Review
Engagements underway Themes finalised are Atypical
Employment Relationships;
Dispute Resolution; Collective
Bargaining; and Compliance and
Enforcement.
Negotiations on the two
remaining themes, i.e.
Employment Equity and
Employment Services are
underway.
Bargaining councils
demarcation disputes/
application:
Finalised 23 applications Finalised 32 applications Ongoing
Municipal Systems
Amendment Bill
Finalised
Superior Courts Bill Engagements underway Finalised
Key Focus Area 2010/11 2011/12 2012/13
Expanded Public Works
Programme: Code of Good
Practice:
Finalised
Merchant Shipping
Amendment Bill
Engagements underway Finalised
Insolvency Bill Finalised interim NEDLAC report
Monitoring Labour Market
Institutional Trends
Ongoing Ongoing Ongoing
Immigration Policy: Pending tabling of policy in NEDLAC Pending Pending
Superior Courts Bill Engagements underway Finalised
Labour Court Rules Nominations to the Labour Court Rules
Board completed.
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Key Focus Area 2010/11 2011/2012 2012/2013
Cooperatives
Amendment Bill
Engagements underway Finalised
Customs Control and
Customs Duty Bills
Tabled and engagements underway Engagements underway Parties are in the process of signing-
off the NEDLAC Report
Preferential Procurement
Regulations
Finalised
Strategic Sessions with
the Minister of Trade and
Industry
Finalised
Climate Change Green
Paper
Finalised
Administered Prices Study commissioned Study finalised, engagements
underway
Engagements underway
Standards Quality
Accreditation Metrology
(SQAM)
Finalised Legal Metrology Policy
Customs Fraud and Illegal
Imports
Engagements underway Engagements underway
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Key Focus Area 2010/11 2011/2012 2012/2013
Small Scale Fisheries
Policy
Engagements underway Finalised
Water Quality Risks Engagements underway Finalised
Oversight of IPAP II Ongoing Ongoing
ITA Act Pending
National Water
Amendment Bill
Pending
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Development Policy Work Stream:
Key Focus Area 2010/11 2011/2012 2012/2013
Cooperatives
Amendment Bill
Engagements underway Finalised
Public Transport Finalised
Climate Change Finalised
Integrated Youth
Development Strategy
(IYDS)
Pending tabling of the strategy in NEDLAC Tabled, engagements underway Parties in process of finalising
the NEDLAC report
Rental Housing
Amendment Bill
Engagements underway Finalised
Immigration Policy Pending tabling of policy in NEDLAC Pending tabling of policy in NEDLAC
National Disability Policy Engagements underway Engagements underway
Review Report on Adult
Education and Training
Pending tabling of the report in NEDLAC Pending
Higher Education and
Training Laws
Pending tabling in NEDLAC Pending
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Development Policy Work Stream:
Key Focus Area 2010/11 2011/2012 2012/2013
Comprehensive Social
Security and Retirement
Funds Reform
Pending tabling of proposals in NEDLAC Pending tabling of proposals in
NEDLAC
Engagements on Retirement
Funds underway in the Public
Finance and Monetary Policy
Chamber.
Local Government Pending tabling in NEDLAC Pending
Human Settlement Strategy tabled. Pending tabling of the Housing
Amendment Bill in NEDLAC
Pending
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Key Focus Area 2010/11 2011/2012 2012/2013
Household Savings Engagements underway Engagements underway
Tax Engagements underway Engagements underway
National Budget
Processes
Ongoing Ongoing Ongoing
Comprehensive Social
Security and Retirement
Funds Reform
Pending tabling of proposals in NEDLAC Pending the tabling of the revised
policy on Comprehensive Social
Security. Engagements on Retirement
Funds and Savings are underway.
Financial Sector Charter
Council
Ongoing Ongoing Ongoing
Financial Sector Policy Engagements underway Withdrawn from the agenda of the
Chamber, superseded by G20
discussions
Development Finance
Institutions (DFIs)
Pending tabling of proposals in NEDLAC Engagements underway
National Poverty
Measures and National
Poverty Line
Engagements underway Engagement underway
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Key Focus Area 2010/11 2011/2012 2012/2013
National Health Insurance Pending tabling of policy proposals in NEDLAC Green paper tabled. Awaiting white
paper process.
Awaiting white paper process.
Prioritisation of
Government Spending
Engagements underway Superseded by National Budget
engagements
Monetary Policy Engagements underway Engagements underway
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Key Focus Area 2010/11 2011/2012 2012/2013
Nedlac Review Organisational Development (OD) specialists
commissioned as recommended in the review
report.
Commenced implementation of OD
and Nedlac Review recommendations.
Energy/ Electricity Finalised process on Cushioning the Poor and
Integrated Resource Plan (IRP) , including the
Medium Term Risk Mitigation Programme
(MTRMP).
Engagements on the IRP, including the
MTRMP, socio-economic impact
assessment and implementation
underway.
New Growth Path (NGP) NEDLAC Social Partners participated in NGP
Leadership engagements.
Four NGP Accords i.e. on Basic
Education, Skills Development, Green
Economy and Local Procurement.
National Project to
Reduce Poverty and
Inequality in South Africa
Engagements underway Engagements underway
Management Committee Task Teams
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Section 77 Notices
Applicant Issues 2010/11
Organised Labour Water Quality:
Concern over the deterioration in the quality and
security of water supply.
The application is still under consideration.
Organised Labour Electricity Tariffs:
The electricity tariff increases that affect workers and
the poor in the country. NERSA approved the tariff hikes
that would result in job losses and push workers and the
poor even deeper into poverty
The application is still under consideration.
Solidarity Crime:
The inability of the South African Police Service (SAPS)
to combat crime efficiently.
Applicant requested that the matter be held in
abeyance pending the outcome of bilateral
discussions with relevant stakeholders.
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NATIONAL ECONOMIC DEVELOPMENT AND LABOUR COUNCILANNUAL FINANCIAL STATEMENTS
Statement of Financial Position as at 31 March 2011
(Restated)31 March 2011 31 March 2010
Note(s) R R Assets
Non-current assetsProperty, plant and equipment 2 8 804 622 9 470 052
Current assetsTrade and other receivables from exchange transactions 3 135 808 334 260 Cash and cash equivalents 4 5 547 141 5 087 514
5 682 949 5 421 774
Total Assets 14 487 571 14 891 826
Equity and Liabilities
Capital and reserves/Net AssetsConstituency Capacity funds 5 310 262 356 732 Accumulated funds 12 810 406 13 148 243
13 120 668 13 504 975
Liabilities Current LiabilitiesTrade and other payables from exchange transactions 6 488 142 755 156 Provisions 7 878 761 631 695
1 366 903 1 386 851
Total Equity and Liabilities 14 487 571 14 891 826
Statement of Financial Position 2010-2011
NATIONAL ECONOMIC DEVELOPMENT AND LABOUR COUNCILAnnual Financial Statements
Statement of Financial Performance for the year ended 31 March 2011
(Restated)31 March 2011 31 March 2010
Note(s) R R
Non-Exchange revenue 8 15 868 000 19 554 000 Exchange revenue 9 732 048 493 680 Operating expenses 10 (17 242 146) (17 455 989)Operating (deficit)/surplus (642 098) 2 591 691 Investment revenue 11 257 792 82 342 (Deficit)/surplus for the year (384 306) 2 674 033
Funds transferred from (to)Community constituency fund 95 799 (60 820)Labour constituency fund 16 471 166 459 Business constituency fund (65 800) (3 766)
46 470 101 873
Net Surplus/(Deficit) for the year (337 836) 2 775 906
Financial Performance 2010-2011
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Audit Findings 2010-2011
Unqualified – Emphasis of matter Assets Leave provision
Management Letter Procurement Audit Committee Internal Audit Lack of Segregation of Duties
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Challenges in NEDLAC’s External Environment
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Challenges in NEDLAC’s Organisational Environment
Strategic Goals and Priorities
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Strategic Goals and Priorities
“Government alone cannot solve the challenges faced by the country, but working together, solutions are possible.”
- President Jacob Zuma in his 2012 State of the Nation Address
“Our new story, our period of transition, is about building modern infrastructure, a vibrant economy, a decent quality of life for all, reduced poverty, decent employment opportunities. It is a story that must be written by all of us. Not just by government. Not just by business. Not just by unions. By all of us, South Africans from all corners of this country.”
- Finance Minister Pravin Gordhan in his 2012 Budget Speech
“The requisite policy stability and coherence will be supported by effective social dialogue that helps establish a broad consensus on long-run policy goals and a vision for the country, and facilitates the necessary tradeoffs and sacrifices by ensuring a visibly fair distribution of the benefits from growth.”
- The New Growth Path, p. 6
“Moving onto this new trajectory of high, sustained and job-creating growth implies a break from our current path dependency. It requires commitment by all sectors of society to contribute to the efforts required to meet our common objectives. There will be moments when difficult choices will have to be made… The ability to do this is a function of leadership among all social partners.”
- The National Development Plan, p. 13424
Dialogue, Trust and Partnership
“The strategic thrust over the next period is to upgrade and strengthen the capacity of the institution on the one hand while promoting more effective forms of engagement between the social partners.”
- Minister Oliphant in the Foreword to NEDLAC’s 2012 Strategic Plan
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