2016

NATIONAL BARGAINING COUNCIL FOR THE CHEMICAL INDUSTRY (NBCCI)

AGM REPORT The report will cover all activities that took place during the year of reporting – 2015/2016 Financial year

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NBCCI VISION, MISSION, GOALS & OBJECTIVES OUR VISION BE THE HOME OF COLLABORATIVE LABOUR RELATION SOLUTIONS FOR THE CHEMICAL INDUSTRY. OUR MISSION ACCESSIBLE, EFFECTIVE AND EFFICIENT LABOUR RELATION SERVICES TO OUR CHEMICAL INDUSTRY

STAKEHOLDERS. OUR GOALS & OBJECTIVES

1. Enhance labour peace in the chemical industry; 2. Provide the platform and resources for effective and efficient collective bargaining, dispute

resolution, economic development and social justice for stakeholders in the Chemical Industry;

3. Recognised as preferred labour relations service provider; 4. Implement, monitor and enforce collective agreements; 5. Promote a sound relationship between employers and employees; 6. Consider and deal with any other labour relation matters that affects stakeholders in the

Chemical Industry; 7. Conduct the business of the Council in an ethical and responsible manner; 8. Council organised, lead and operated on good governance principles; 9. Become representative of the industry through making labour relation services available to all

stakeholders within chemical industry; 10. Governing the chemical industry in terms of labour relations.

NBCCI PROFILE The National Bargaining Council for the Chemical Industry (“The NBCCI”) was established and founded in 2001, as a non mandatory Bargaining Council, by stakeholder representatives from organized Labour and organized Business. The NBCCI operates from its primary office based in Marshalltown - Gauteng, under full administration of its Secretariat consisting of 12 fulltime employees and a Compliance Agent appointed on a 1 year fixed term contract. . The NBCCI derives its powers from legislative provision of Section 28 of the Labour Relations Act of 1996, as amended (“the Act), and the Constitution of 2003. NBCCI’s primary functions comprise of, inter alia, a forum for centralized bargaining, dispute resolution and management including capacity building. Parties to the NBCCI are admitted in terms of clause 4 of the Constitution. These parties consist of the following stakeholders -: 9 SECTORS -: FMCG, Glass, Speciality, Base Chemicals, Surface Coatings, Explosives, Fertilizers, Petroleum and Pharmaceuticals 4 TRADE UNIONS -: SACWU, CEPPWAWU, GIWUSA and Solidarity

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NBCCI GOVERNANCE The NBCCI main governing structure is its full Council. The dates of the Full Council meetings for 2016 were set aside and/or convened as follows:

1. 1 April 2016 2. 17 June 2016 ( Special meeting & no quorum) 3. 24 June 2016 (Special meeting) 4. 26 August 2016 5. 11 November 2016

Most functions of the Full Council structure have been delegated to the Executive Committee whose meetings are also set aside in the approved year planner. These meetings were planned or convened as follows:

1. 11 February 2016 2. 1 April 2016 3. 10 June 2016 (Special meeting) 4. 4 July 2016 5. 26 August 2016 (Special meeting) 6. 16 September 2016 (Special meeting) 7. 28 October 2016

Terms of reference for both Full Council and Executive Committee are regulated by the Council Constitution of 2003. The Executive Committee established a number of subcommittees and Task Teams as follows:

1. Operations Committee 2. Finance Committee 3. Governance and Strategy Committee 4. Constitutional Committee 5. Demarcation Committee 6. National Exemption Committee 7. Finding Model and 8. Labour Broker Task Teams

1. OPERATIONS COMMITTEE

This committee was established by EXCO in terms of clause 8 of the Constitution. The subcommittee’s functions involve, in the main, discussion of the day-to-day operations of the Council under full administration of the Council Secretariat. The subcommittee is also responsible for policy consideration, assessment and to ensure proper compliance with all policies, procedures including the Constitution. Some of the standing agenda items for this subcommittee include:

1. Reports by the dispute department, which includes the office of the Resident Panelist 2. Report on the Council’s Data & Membership Management System 3. Trade Union Membership Audit 4. Variation Applications 5. Exemptions Applications 6. Demarcation Applications 7. HR / Staffing Issues

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2. FINANCE COMMITTEE

The Council Finances is a subject matter regulated by clause 17 of the Constitution. The role of the Finance Committee is to scrutinize the monthly financial statements prepared by the Council Secretariat, which includes ensuring compliance with Constitutional aspects pertaining to proper financial administration and/or management. The committee therefore, must evaluate and make recommendations to EXCO in respect of:

1. The budget, cash flow and financial statements of the NBCCI 2. The financial policies of the NBCCI 3. Actions to implement the recommendations of the Auditors 4. Ensure proper execution of the legally mandated financial functions of the NBCCI 5. The financial implications of policies, decisions and changes to the budget, and 6. Ensure adherence to the Constitution

The Finance Committee is also responsible to advice EXCO on any matter relating to staff remuneration (reward system), thereby enabling the Council to develop consistent, fair and impartial strategies, policies, procedures and processes for compensation of NBCCI employees which in turn would ensure that competent staff complement is attracted, motivated and retained.

3. GOVERNANCE & STRATEGY COMMITTEE

This committee was established by EXCO primarily to develop the Council’s business strategy/plan.

The committee had since tabled a business plan seeking to ensure extension of the Council

agreements to non-parties, by April 2017. This plan was approved by EXCO in 2015. The committee

continue to meet as per the year planner in order to monitor and evaluate the Council’s promises of

implementing the plan.

4. CONSTITUTIONAL COMMITTEE This committee was established by EXCO with the sole purpose to deal with technical and substantive amendments to the current Constitution of 2003.

5. DEMARCATION COMMITTEE This committee deals with all demarcation related matters referred to the CCMA in terms of section 62 of the LRA (as amended, The Act).

6. NATIONAL EXEMPTION COMMITTEE Exemption from collective agreements is regulated by clause 16 of the Council’s Constitution of 2003. FUNCTIONS OF THE NATIONAL EXEMPTIONS COMMITTEE The role of the National Exemptions Committee is governed by clause 16(1) of the Council Constitution, which states thus – “To consider all applications for exemptions from collective agreements concerning subject matters listed in schedule 2 & 3”. Therefore, the National Exemptions Committee meeting is subject to provisions as contained in clause 16(1) of the Council Constitution.

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7. FUNDING MODEL TASK TEAM

This task team was established by EXCO in April 2015. Its sole purpose is to develop a funding model

for the Council and provide advice on the best options that would better improve the Council’s current

financial position.

8. LABOUR BROKER TASK TEAM

This task team was established with the sole purpose to address issues pertaining to Labour Brokers

disputes in the Chemical Industry including adoption of the new CCMA Rules. Rule 25 of the new

CCMA Rules is pending adoption by the Council.

All stakeholders to the Council are represented in structures, substructures and task teams convened under the auspices of the Council. The introduction of task teams including review of subcommittees was done with a strategic view in

mind, that is, to drive the strategic plan of the Council and to implement specific objectives which will

in turn result in proper execution of short term and long-term goals as outlined below.

STRATEGY IMPLEMENTATION PLAN

STAGES AND TIMEFRAMES

(Thinking strategically while acting operationally)

STAGE 1

Short term goal

Timeframe: ONGOING

The main overall objective of this stage is to develop, review and implement (where not already

done), all the basic policies, procedures, processes and guidelines, as per the Governance and

Management Policy Framework, to lay the foundation for a campaign to increase the representivity

of the Council and the parties to the Council.

STAGE 2

Medium term goal

Timeframe: April 2015 – March 2017

The main overall objectives of this stage are firstly to operationalise all the policies, procedures,

processes and guidelines developed and implemented during Stage 1,

Secondly for the Council to achieve a state of representivity as foreseen in the Act,

Thirdly to gear up to apply to the Minister for an extension of all agreements to non-parties

and

Fourthly for an Extensions Notice to be published in the Government Gazette

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MESSAGE FROM THE CHAIRPERSON OF THE COUNCIL

2016 was an eventful year for the Council.

It commenced with the execution of the Operational Plan, whose aim was to align the Council’s

Strategy, through the General Secretary’s direct line of report.

Scheduled performance review discussions with the General Secretary progressed well during the

year in question, the essence of which was for the General Secretary to drive the main objective of

propelling the progression of the Council from a voluntary association to a statutory one.

Whilst positive progress was noted broadly, this is a process and will entail more dedication and hard

work to be done with clear timelines which would be underpinned by clear commitment and execution

of such commitments by respective stakeholders.

It should be noted that challenges that were faced by stakeholders externally impacted on the

functioning of the Council in one way or the other.

Another major challenge/milestone was the application by NUMSA to be admitted as a party to the

Council. This process entailed revisiting the Council’s Constitution, robust discussions at the

Executive committee and Council levels, the appointment of the verification agent, scrutinizing of the

findings thereof, consultation with the Council’s Firm of Attorneys and thereafter responding to

NUMSA. This matter is still pending finality as NUMSA has approached the Labour Court to pursue

their quest for admission.

Collective bargaining was also exercised to the latter, which resulted in an industrial Action which was

resolved with the intervention of the CCMA. No major incidents were noted as compared to the Fees

Must Fall campaign. The appointment of the compliance agent on a contractual basis for a 12 month

period was preceded by a robust engagement at all levels.

The functioning of Council’s committees was severely affected, initially by the Industrial Action and

thereafter by lack of quorum, which resulted in meetings having to be rescheduled. This resulted in

slowing down the progress of fast tracking the attainment of the strategic objectives. This is a major

concern and members at all levels who need to reflect on the issue and probably address it in all

Council’s Committee meetings early next year.

I therefore propose that the first meeting of all Council committees in 2017, including the Labour

Caucus and the Sector Coordinators’ meetings should dedicate quality time to address this issue

which is crippling our Council. Failure to honestly tackle this scourge will further impoverish this

Council and facilitate its slow death.

The Council finances are a major cause of concern and anything that any stakeholder proposes

should be informed by whether such a proposal will further deplete the Council’s financial reserves or

improve it.

It is encouraging that the Finance committee has committed to monitor the Council’s expenditure

prudently on monthly basis.

It is my earnest appeal for all committee members to take their appointment to any Council structure

seriously. Together we can do more and no one owns collective wisdom.

The CCMA subsidy is another major concern as it is based on settled and finalized cases. We all

need to put our heads together and come up with constructive suggestions on how we can address

postponement of cases referred to the Council, as they are costly to the Council, and are also

contributing to our current financial position. Any intervention will need to be tracked and monitored on

a monthly basis to drive continuous improvement.

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Therefore, let’s not find fault but instead find remedies to all our challenges.

Despite all the aforementioned, we managed to forge ahead and delivered much needed quality

service to our members and for that I am greatly indebted to our unsung heroes and that is staff

members of the Council. Your dedication and professional service is highly valued and do take your

service delivery to another level in 2017.

I would like to further express ones gratitude and appreciation to all subcommittee and EXCO

members for their unwavering support, constructive builds and guidance provided during the course

of the year.

Mr. SANDILE KUZWAYO

NBCCI CHAIRPERSON

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MESSAGE FROM THE GENERAL SECRETARY

NBCCI is proud to once again showcase and celebrate with you its tangible results for the year under

review. 2015/2016 remained one busiest year in the limited lifespan of the Council, of just over 15

years.

There were a number of interesting and noticeable highlights which are point out below as follows:

It was reported during our AGM in 2014 that the new employment laws were due to come into effect,

and as such, NBCCI was expected to put mechanisms in place to accommodate such changes,

including capacitating its stakeholders in that regard.

I am therefore glad to report that NBCCI was able to convene capacity building/ workshops on the

new CCMA Rules including amendments to section 198 of the LRA, as amended (The Act).

These workshops were attended by various stakeholder representatives, national panelists and

officials within the Council’s Dispute Department. The workshops were conducted in partnership with

the CCMA.

LRA amendments saw the Council adopting a financial mechanism seeking to deal with disputes

referred against Labour Brokers in the Chemical Industry. Labour Broker task team was also

established to deal with implications of Rule 25 to the Council’s dispute resolution dispensation. Rule

25 is yet to be adopted by the Council.

The Executive decision to appoint a Compliance Agent on a 1 year fixed term contract was

implemented, and the incumbent assumed office as at 1 January 2016. The Council’s medium term

plan is to migrate from its current status to a mandatory Bargaining Council, thereby assuming powers

to extend its substantive agreements to non parties in the Chemical Industry by April 2017.

The Compliance agent was therefore appointed in order to champion this strategic objective by

ensuring that the Council achieve its representativeness in line with section 32 of the Act, before filing

its application with the Department of Labour, in order to extend its substantive agreements to non

parties in the Chemical Industry.

Whereas Industry wage negotiations took longer than expected, 2015/2016 wage negotiations in

various sectors were a success. There was however an Industrial Action in the Petroleum and

Pharmaceutical Sectors, a process which saw the CCMA intervening in terms of section 150 of the

Act. Parties in the Petroleum Sector concluded a multi-year agreement of 2 years, whilst all other

sectors settled for a 1 year agreement.

The Council has once again achieved an unqualified audit opinion. This milestone has been achieved

for 14 years in succession.

2016 further saw the Council obtaining its accreditation to deal with disputes referred to it through

Conciliation and Arbitration. This accreditation was issued by the CCMA in terms of section 51 read

with section 127 of the Act. Certificate of accreditation was granted for a 1 year period only. The 1

year period of accreditation can be attributed to the Council’s lack of effort to meet the CCMA National

Efficiencies i.e. high rate of postponement of cases and low settlement rate.

The process to ensure proper verification of Trade Union membership in the Industry is still underway.

This exercise is aimed at determining representation of Trade Union parties within the Chemical

Industry, in line with clause 4 of the Constitution of 2003.

The Council continued to make an impact and influence decisions in structures such as the CHIETA,

NABC and Labour Relations Committees where CCMA, DOL and other Bargaining Councils are

represented.

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Like in any business, the Council had to face challenges along the way, some of which are articulated

below:

Caucus meetings were provided for in the 2016 year planner. Attendance to these meetings

remained a challenge, particularly from the Labour constituency.

Attendance to the Council’s committee meetings has however improved, and meetings that

did not take place where as a result of operational reasons, whilst in some instances, such

can be attributed to factors outside control of the Council.

The Council also had to deal extensively with an application by NUMSA who sought to be part

of the Council’s Labour constituency, where it claimed membership in 4 of the 5 sectors. This

application was rejected.

There are still more issues that need to be adequately addressed by all concerned parties, including

stakeholders alike, to ensure that the Council realises its long terms vision of sustainability, and to

one day, extend all its substantive agreements to non parties in the Chemical Industry.

There was no staff turnover (resignations) in the year under review. My team and I are very grateful to

have been part of yet another challenging year, including its results.

I also wish to thank each and every person who dedicated their time and contributed to the milestones

mentioned above (That is, Committee members, Stakeholders and not forgetting the Chairperson of

the Council). Your endeavors to drive the vision and mission of the Council did not go unnoticed, and

such, is highly appreciated.

Wishing each and every one of you a fruitful 2017.

Ms. INGRID DIMO

GENERAL SECRETARY

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DISPUTE RESOLUTION DEPARTMENT

INTRODUCTION

The Dispute Department ensures that disputes are resolved timeously in order to maintain

harmonious relationship between the parties within the industry. The dispute resolution is one of the

key functions of the Council. The Council has adopted the Case Management System in order to

ensure all the cases referred to it are dealt with efficiently. The dispute department has a complement

of 4 individuals nationally, who are full time employees of the Council.

STATISTICAL ANALYSIS

During the period under review, a total of 665 disputes were referred to the Council representing an

average of 3 referrals for every working day. This is a decrease by 9.8% compares to the 2014/2015

financial year where the Council recorded a total of 730 dispute referrals.

Of the 665 disputes referred to the Council, 42 or 6.3% related to the new LRAA section 198

disputes. This amended section of the LRA put a lot financial strain on the Council, and resulted in a

decision having to be taken that a fee will be charged for all cases referred to the Council, failing

which such cases will be transferred to the CCMA. This decision was based on the fact that most of

the companies against whom disputes are referred, do not contribute levy to the Council.

DISPUTE TREND MONTH

The above graph depicts a fluctuating trend of the total number of dispute referrals received by the

Council over a period of 12 month. The report also points to the fact that more disputes were received

in February 2016, whilst fewer disputes were received during December 2015 period.

6965

60

30

47

73

5760

47

71

4541

0

10

20

30

40

50

60

70

80

Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

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DISPUTE BY PROVINCE

The above graph depicts that Gauteng province recorded more cases i.e. 332 or 50% of the total

case load. It also depicts that fewer disputes were recorded in the Limpopo that is, 4 or 1% of the

total caseload.

TYPE OF DISMISSAL CASES

Dismissal disputes contributed a large number of disputes referred to the Council, with the majority of

dismissal disputes relating to misconduct which accounted to a larger percentage i.e. 257 or 64.09%.

This is the reduction of 80 misconduct disputes compared to previous financial year or 2014/2015.

It is further noted that disputants continue to refer cases citing reasons as unknown i.e. 50 or 12.47%.

Operational requirements disputes have decreased from 40 or 0.05% to 31 or 7.73% in the reporting

year.

332

82 71 57 55 36 17 11 4

GAUTENG 50%

WESTERN CAPE 12%

KWAZULU NATAL 11%

EASTERN CAPE 9%

MPUMALANGA 8%

FREE STATE 5%

NORTHERN CAPE 3%

NORTH WEST 2%

LIMPOPO 1%

64.09%12.47%

7.73%

4.74%

4.24%3.99%

2.74%

MISCONDUCT 257

UNKNOWN 50

OPERATIONAL REQ 31

INCAPACITY 19

CONSTRUCTIVE 17

TERMINATION WITHOUT 16

TEMPORARY EMPLOYMENT 11

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DISPUTE REFERRALS PER SECTOR

SECTOR TOTAL PERCENTAGE

1. PETROLEUM 147 22.10%

2. SPECIALITY CHEMICALS 88 13.23%

3. PHARMACETUTICALS 82 12.33%

4. EXPLOSIVES 79 11.88%

5. BASE CHEMICALS 74 11.13%

6. GLASS 47 7.06%

7. SURFACE COATING 47 7.06%

8. FMCG 38 5.71%

9. FERTILIZER 8 1.20%

10. OTHER CHEMICALS 55 8.3%

Petroleum sector remained the most consistent sector with the highest number of referrals recorded

with the Council, i.e.147 or 22.10% in 2015/2016. This represents a decrease of 29 cases compared

to 2014/ 2015 financial year.

The lowest number of referrals was recorded in the fertilizer sector, i.e.8 or 1.20% which is not

surprising since this is the smallest sector in the Chemical Industry.

REFERRAL BY PARTY TRADE UNIONS

TRADE UNION TOTAL PERCENTAGE %

1. CEPPWAWU 120 18.05%

2. GIWUSA 84 12.63%

3. SACWU 83 12.48%

4. SOLIDARITY 5 1%

A total of 292 or 44.16% of the disputes were recorded from party Trade Unions to the Council.

CEPPWAWU referred 120 or 18.05% of the total disputes referred to the Council in the reporting

year, followed by GIWUSA at 84 or 12.63%, and SACWU with 83 or 12.48%, respectively. The least

number of disputes were referred from Solidarity at 5 or 1% of the total case load.

It can also be reported that 27 or 4.06% cases were referred by non party Trade Unions to the

Council i.e. NUMSA with 2.56%, CWAO with 7 or 1.052% and UASA, ITU and AMCU which referred

the least number of referrals at 1 or 0.15%, respectively.

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PROCESSES

PROCESS TOTAL PERCENTAGE %

1. Arbitration 819 57.07%

2. Con/Arb 275 19.16%

3. Conciliation 244 17%

4. Point in limine 97 6.76%

A total of 1435 processes were conducted in the year under review. This total is less than cases

referred to the Council during the period under review i.e. 665. The increase in processes can be

attributed to cases that remained partly heard or postponed.

A total of 126 or 8.78% cases remained partly heard, whilst 255 or 17.77% were postponed during

the year under review.

SETTLEMENT RATE

The CCMA national efficiency adopted by the Council provides that 70% of the total annual caseload

must be settled. The above graph however illustrates that an average of 62% settlement rate was

achieved in the reporting period.

This settlement rate represents cases settled before the hearing, settled in the hearing and those

withdrawn before the hearing.

REVIEW APPLICATIONS

49%52%

69%64%

83%

64% 63%

56%

68%

61%

49%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

15

7

54

0

2

4

6

8

10

12

14

16

PARTY EMPLOYER PARTY TRADE UNION NON UNIONISAED INDIVIDUAL

NON PARTY TRADE UNION

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The graph above depicts that a total of 31 cases were taken or review during the period ending under

review.

SUBSIDY CLAIMS SUBMITTED AND PAID BY CCMA

A total of R 171 904.00 was received from the CCMA for settled and finalized cases in the year under

review.

NBCCI PANEL OF INTERPRETERS

The Council contracted 45 interpreters onto its panel for 2016.

CHALLENGES AND SUCCESS

NATIONAL EFFICIENCIES SET BY CCMA

The Council is still not achieving the set criterion by CCMA.

The report indicates that there were more cases that were postponed or remained partly

heard than the cases that were closed.

The report shows that although 665 cases were received, 1435 cases were scheduled in year

under review.

The Council also scheduled 1435 cases whilst 225 cases were postponed and 126 cases

were partly heard.

Of the 819 arbitrations scheduled only 154 awards were issued, which demonstrates that

while more cases are scheduled, few cases are closed and finalized.

Settlement rate has increased from 60% in previous financial year to 62% in the year under

review.

The Council is yet to achieve a settlement rate of 70% as required by the CCMA.

CONCLUSION

The dispute department would like to thank all stakeholders for their support, the General Secretary

for her guidance in ensuring that the department achieves its objectives and team NBCCI in ensuring

the success of the Council.

Mr. SEMPHETE PHOLOHOLO

Snr. CASE ADMINISTRATOR

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RESIDENT PANELLIST REPORT

INTRODUCTION

This is the report of the office of the Resident Panelist for the financial year 2015/ 2016. The Resident

Panelist strives to ensure that the Council delivers effective, efficient, and excellent and economically

rooted services in line with the spirit of social justice, thereby ensuring a balance between quality and

quantity.

KEY PERFORMANCE AREAS

The key deliverables of the Resident Panellist are aligned with the Council’s strategic objectives and

CCMA National efficiencies.

The office of the Resident Panellist is therefore entrusted with the following responsibilities:

1. screening of referrals to ascertain jurisdiction due to adherence to statutory time frame and

also dispute resolution procedures (commonly known as the CCMA Rules) by referring

parties;

2. Quality assurance of arbitration awards and preliminary rulings issued by National Panelists,

to ascertain adherence to statutory time frame, correct application of law and related matters;

3. Determining or considering applications in the form of condonation, rescission and others that

are made;

4. Conducting tele-conciliations;

5. Issuing certificates in compliance with section 135(5) of the Act;

6. Monitoring of postponements of disputes;

7. Identification of training needs and facilitation of same to stakeholders in the Industry.

The Resident Panellist is also accredited to conciliate and arbitrate disputes including section 198A-D

referred to the Council, and executes such responsibilities as dictated by the Council’s operations.

In addition, the Resident Panellist manages the National Pool of Conciliators and Arbitrators

appointed by the Council, thus recruits and monitors their performance in line with the CCMA’s

National Efficiencies.

SUMMARY OF ACTIVITIES FOR THE YEAR

Listed below are the responsibilities of the Resident Panellist as aligned with the Council’s strategic

objectives and the National Efficiencies set by the CCMA:

SCREENING: - Upon receipt of referral forms the referrals are screened to ascertain proper referral,

completion and jurisdiction. In the reporting year, there were 712 cases that were screened, 17 lesser

than the previous year. This number is inclusive of the files that were transferred to the Council by

other institution 184 and those that were transferred to these institutions due to lack of jurisdiction.

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CERTIFICATION IN COMPLIANCE WITH SECTION 135(5) OF LRA: - This section stipulates

amongst others that at the end of 30 day period a certificate of non resolution must be issued. There

were 42 cases in which this section of the Act was invoked. Of this, number only 13 certificates were

issued due to the Council’s operational requirements. The goal is to reduce this number to almost

zero.

QUALITY ASSURANCE: - All arbitration awards and preliminary rulings issued by Panel members go

through the process of quality assurance prior to being dispatched to the parties. There were 356

cases that were quality assured, the number which increased by 65 more than the previous year.

These awards consisted of 202 rulings and 154 arbitration awards. Given the workload, the number

is worrisome as most rulings, with the exception of declined condonations and jurisdictions, come

back to the institution for rehearing. These cases impacts negatively on the efficiencies and depletes

the resources of the Council. There were however, fewer arbitration awards and rulings that were

sent back to Panellist for corrections. Corrections in this regard stems from poor quality or mistake of

law. Some of the cases resulted in rescission and review applications being applied for.

CAPACITY BUILDING: - In the financial year under review, there was 1 combined workshop held

following the adoption of the new CCMA Rules. Following this, the office of the Resident Panellist

continued to monitor stakeholder’s adjustment including compliance with the new Rules and such has

been positive. The Council also continues to assist referring parties to serve dispute referrals, an

obligation entrusted to it by the legislation.

HANDLING OF DISPUTES: - The Resident Panellist handled 34 disputes comprising of both

Conciliations i.e. 21 and arbitrations i.e. 11. Of this number, only 8 were settled, thus falling short of

the 70 percent of the required National Efficiency. Most conciliation hearings remained unresolved.

MONITORING OF POSTPONEMENT: - The National Efficiencies issued by the CCMA, as a directive

to all BC’s, stipulates that, postponement of cases by a Council should not be in the excess of 6% per

annum. National Panellists are required to liaise with Secretariat prior to postponing any case during

the proceedings. There were very few cases of non-compliance by Panellists and such conduct were

corrected through intervention. Very few of cases were postponed with costs against the requesting

party.

INDUSTRY PARTICIPATION: NATIONAL ASSOCIATION OF BARGAINING COUNCILS (NABC)

The Resident Panellist continues to represents the Council and plays a significant role in the National

Association of Bargaining Councils. Participation in this structure is for benchmarking purposes and to

forge relations with other Bargaining Council across the Republic. Following the outcome of the Free

Market Foundation case earlier this year, the NABC hosted a breakfast seminar in collaboration with

ENS Africa. The seminar aimed at briefing the Bargaining Council Industry on the implication of the

decision taken, or lack thereof. The invitation to attend the seminar was extended to members of the

Council’s Labour Broker task team.

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INDUSTRY PARTICIPATION: LABOUR RELATIONS DISPUTE PRACTITIONERS’ TASK TEAM &

PUBLIC UNIVERSITIES

Through the NABC, the Resident Panellist is both the executive management committee member and

Labour Relations Dispute Practitioner’s task team member. This is the committee that saw 6

universities partnering with the Labour Relations Industry to deliver the Commissioners course that

was only delivered by the CCMA to CCMA appointed commissioners, a pool from which Bargaining

Council’s sourced its service providers. It can be reported that this initiative is yielding positive results

as CCMA was able to successfully recruit Commissioners from the pool trained by public universities

across the Country. Recently, a relationship has been forged with Services SETA to secure funding

for prospective needy students.

HANDLING OF PANELLISTS PERFORMANCE- COMPLAINTS AGAINST PANELLISTS: - This role

was assumed to the office of the Resident Panellist from March 2016. It entails, amongst others,

recommending for appointment and retention of Panelists and handling complaints raised against the

Panellists.

Despite complaints received, only 1 complaint was finalized during the year in question. In terms of

the complaints procedures, the Council’s Operations Committee is expected to advice on the outcome

once Secretariat has finalized the administrative aspects of the complaint raised. Meetings of this

Committee did not sit on a monthly basis, as envisaged in the year planner, due to wage negotiations.

INDUSTRY PARTICIPATION: SERVICES SETA

In the 2014/15 financial year, the Council took a decision to affiliate with CHIETA following the

successful application and implementation of the discretionary grant. The decision was also informed

by the fact that Services SETA, as the training authority where all Bargaining Councils are placed or

should be affiliated, was faced with challenges. This resulted in the NBCCI moving its levy

contribution from the Services SETA to CHIETA to ensure substantial benefit to both institutions.

During the year under review, the Council through its Secretariat re-established relations with the

Services SETA. This was done through participated in all sessions that were initiated by the Services

SETA in conjunction with the NABC where plans were put in place to assist the Collective Services

sub-sector. This also resulted in training needs of BC’S being ascertained. As a strategic partner, and

also aligning with what other BC’S are doing, it envisaged that NBCCI will soon move to the Services

SETA where the training needs for BC staff will be better served.

MANAGING PANELLISTS: RECOMMEDATION FOR THE APPOINTMENT OF PANELLISTS FOR

2017

In line with the provision of clause 12 read with clause 6(3) (c) of the Constitution of 2003, the Council

is to appoint a pool of Conciliators and Arbitrators for the purpose of determining disputes which fall

within the registered scope of the Council.

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Appointment of National pool of Conciliators and Arbitrators has been recommended as follows:

65 Panel members are recommended for re-appointment for 2017 across all regions.

15 members are recommended for appointment at senior level.

8 panel members have been recommended for removal from the 2017 pool of Conciliators & Arbitrators.

1 new Panelist has been recommended for appointment in 2017.

5 members have been recommended to serve as National Exemption Committee. The Council still faces major challenges in addressing the question of equity i.e. gender and race. A

lot remains to be done in the Western Cape where the majority of appointees remain white.

SOCIAL RESPONSIBILITY

The NBCCI was approached by Ekurhuleni West College where a request was made to allow

students who are currently doing Labour Relations to observe in its proceedings. This resulted in the

Council receiving 30 students who were exposed to both Conciliations and Arbitrations processes,

following a briefing by the Resident Panellist on both processes and about the Bargaining Councils in

general.

TARGETS/GOALS FOR THE YEAR 2016/17

The office of the Resident Panellist will continue to provide the professional support to the Council’s

Dispute Resolution department thereby ensure quality outcomes are dispatched to the stakeholders

nationally through the process of quality assurance and performance of Panel members. This will

include putting in place stringent measures to address non-compliance with processes in place.

The office of the Resident Panellist undertakes to improve quality service by ensuring that the

Panellists adhere to National Efficiencies.

Entrench the spirit and the purpose of the LRA by ensuring that defective referrals that delays

finalisation of processes are spotted from the onset to enable defaulters to rectify same timeously.

The office of the Resident Panellist will further continue to provide the necessary support to

stakeholders nationally to ensure that excellent, effective, efficient and economic service is

maintained in the Industry through the role entrusted to this office, by encouraging stakeholders to

adhere to the Rules of engagement when postponing matters and discourage postponement where

such can be avoided.

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CONCLUDING REMARKS

The Resident Panellist would like to appreciate the Operations, Governance and Strategy committee

members and EXCO for their continuous support, guidance, interaction and constructive criticisms. A

further word of appreciation goes to all the Council staff and the General Secretary for the support,

team work and guidance given throughout the year.

Adv. BONISWA MBOVANE

RESIDENT PANELLIST

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FINANCE DEPARTMENT

STAFFING WITHIN THE FINANCE DEPARTMENT

The Council’s finance department is managed by 2 staff members nationally, Senior Finance and Administration Officer and Finance & Administration Officer.

COUNCIL FINANCES

The audit process for the 2015/2016 financial year was concluded in September 2016 and the financial statements and accompanying audit report (contained in a separate folder) were presented to both FINCOM and EXCO for approval. These financial statements are due to be adopted by the AGM on 11 November 2016. It must be noted that Council has achieved yet another unqualified audit opinion, for 14 years in succession.

The graph below gives a snap shot of financial activities, income and expenditure over a 3 year period. The financial position of the Council for 2015/2016 financial year recorded a deficit of R944 053.52. This was mainly attributed to Conciliators and Arbitrators fees which were as a result of postponement of cases including additional expenditure incurred for rounds of wage negotiation in various sectors.

LEVY CONTRIBUTIONS

All parties to the Council are compelled, upon joining the Council, to pay membership levies. These levies are processed through the member company’s payroll and are paid directly to the Council on the deadline prescribed in the Constitution.

At inception of the Council, the levy contribution for inside the bargaining unit employees was R6.00 and R3.00 for outside bargaining unit employees, respectively. The graph below indicates levy increases per year, both in percentage (%) and in rand (R) value since inception. The Council’s Executive agreed to make a recommendation to increase levies by 7.5% for employees inside and outside the bargaining unit respectively. This increase will be effective from 1 January 2017.

R 0.00R 2,000,000.00R 4,000,000.00R 6,000,000.00R 8,000,000.00

R 10,000,000.00R 12,000,000.00

F2012/2013

F2013/2014

F2014/2015

F2015/2016

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MEMBERSHIP DIVISION

The Council’s membership division has two officials i.e. a membership data administrator, appointed on a fulltime basis and a compliance agent appointed on a 1 year fixed term contract ending December 2016. The prime objectives for the appointment of the agent were as follows:

1. To conducting site visits to party employers and unions, 2. Assist the Council with the collection of correct levies, 3. Attend to party queries and complaints, 4. Assist the Council to obtain membership data schedules from employers on a monthly basis

and 5. To conduct a customer satisfaction survey.

It can be reported that, through this appointment, there has been a tremendous improvement with the submission of membership schedules from member companies. The Compliance Agent is yet to visit most of the companies affiliated to the Council, majority of which are based in Gauteng.

The challenge remains that there is still inconsistency with submission of the membership data schedules by member companies. An appeal is therefore, made to member companies to assist the Council in this regard, as this information is useful in ensuring realization of the primary goal of extending substantive agreements to non parties in the Chemical Industry.

IN CLOSING Thank you to the stakeholders who participated in various structures within the Council, the General Secretary, chairperson and NBCCI team for your valued support, guidance and your dedication in driving the Council to achieve its objectives. Ms. ANNAH SEKOBANE Snr. FINANCE & ADMINISTRATION OFFICER

-

5.00

10.00

15.00

20.00

25.00

01/01/2013 01/01/2014 01/01/2015 01/01/2016

Inside Barg Unit

Outside Barg Unit

Percentage Increase

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REPORT BY THE COMPLIANCE AGENT

PERIOD: JANUARY - SEPTEMBER 2016

TABLE OF CONTENTS

1. Introduction

2. First month of appointment

3. Submission of Schedules by Member Companies

4. Visits to Member Companies and customer satisfaction survey findings

5. Visited companies

6. Outstanding companies

7. Challenges and Closure

INTRODUCTION

This is the year to date report by the Compliance Agent.

The Council appointed an incumbent in this role for a 1 year fixed term contract starting from January

2016 to December 2016.

Part of the Compliance Agent’s duties includes, inter alia:

1. Conducting site visits to member companies and Trade Unions;

2. Assisting the Council to identify defaulters and collect correct levies;

3. Attending to stakeholder queries and complaints;

4. Assist the Council to receive membership data schedules from employers on a monthly basis;

5. The Compliance Agent further submits monthly activity reports to the Council and

6. Assists the Council to conduct Customer Satisfaction Survey in line with the NBCCI Business

Plan for 2015/2016.

The Compliance Agent’s role is therefore relevant to the long term plans and strategic view of the

Council, particularly in regard to the Council’s plan to extend its substantive agreements to non-

parties in term of Section 32 of LRA, as amended (The Act).

FIRST MONTH OF APPOINTMENT

The Compliance Agent spent the first month of his appointment inbound, and the reception from all

Council staff and stakeholders was good and supportive.

The period allowed the Compliance Agent to familiarise himself with the environment and clientele.

During this period, the Compliance Agent was also able to learn how to operate the Council’s

Membership system outsourced from infinIT in 2014.

This membership system is custom made and assists with the collection data and generation of

reports.

The system also generates schedule templates that should to be distributed to member companies on

a monthly basis where they are required to populate them with details and send them back to the

Council for further capturing.

In these early days, the Compliance Agent discovered that most of the member companies were not

fully accustomed with the membership system requirements.

The incumbent also discovered that the membership system had no contact details for member

companies affiliated to the Council and that some of the contact details were outdated.

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Together with the membership administrator, the two incumbents within the membership division,

updated the membership system with correct contact details and distributed the schedule templates to

member companies so that they could begin complying accordingly.

The Council’s membership system is programmed and/or developed to read only the template

generated from the system itself, that is, any information not provided on the generated template

would not be able to be read by the system.

It was therefore imperative for the incumbents to ensure that every member company had to receive

the proper schedule templates.

Based on the above, it can be said that most of member companies were not complying with the

Council’s requests to send schedules due to the fact that they were not issued with the correct

templates while others did to not understand how to complete the schedules issued by the Council.

It was therefore a requirement that the membership division, through the Compliance Agent,

embarked on an education campaign, in order to address the situation.

This intervention resulted in improvements as outlined below:

The graph depicts that at-least half (100) of the total number of companies affiliated to the Council ±

216, ended up complying with requests to submit membership schedules, whilst at the same token,

there was a reduction in the number of non-complying companies.

SUBMISSION OF SCHEDULES BY MEMBER COMPANIES

Since the beginning of February 2016 to date, the membership division observed a vast improvement

by member companies’ submission of schedules to the Council.

Many defaulters still need to be reminded of the need to comply.

0

50

100

150

200

250

Before End jan 16

Total comp

Complying

Not complying

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Such improvements are illustrated by the graph below.

VISITS TO MEMBER COMPANIES AND CUSTOMER SATISFACTION SURVEY FINDINGS

As part of his role, the Compliance Agent conducted site visits to member companies’ premises

across the Country. The Compliance Agent was been able to meet with employer representatives and

discovered the following, among others:

1. Some member companies paid levy for employees inside the bargaining unit only;

2. A member company would deduct levy from employees’ salaries but fail to pay it over to the

Council;

3. Some member companies are paying incorrect levy or simply indicated that they did not

implement the required levy increases;

4. Some of the member companies are unwilling to pay levy for employees outside the

bargaining unit and threaten to take legal action against the Council for forcing them to do so;

5. Some member companies pays standard levy for employees inside and outside of the

bargaining unit;

6. There is a clear indication that the lack of proper definition of a (industry) bargaining unit

remains a serious challenge,

7. Some member companies defines the bargaining unit by union membership;

8. Concerns were also raised by some member companies regarding the Council’s inability to

extend the agreements to non parties;

9. Concerns were also raised regarding the Council’s inability to establish an Industry grading

system;

10. There is also some level of fear that nonparty trade unions are gaining grounds in the

Industry.

0

50

100

150

200

250

Total Aug-16 Jun/Jul 2016 Jan/May 2016 2015/14

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VISITED COMPANIES PER PROVINCE

To this end, only a total of 82 of 216 affiliated companies have been visited, majority of which are

based in Gauteng Province.

CHALLENGES & CLOSURE

The current challenge is that member companies are of late, not responsive to our requests to pay

them a visit.

It is therefore safe to deduce that most of the outstanding companies yet to be visited are as a result

of them not responding to our requests to do so.

All 4 party Trade unions are also yet to be visited, where a similar process will take place i.e.

customer satisfaction survey etc.

In closing it can said that it has been a great journey and experience to visit and listen to all concerns

coming from stakeholders from employers’ constituency affiliated to the Council.

Mr. ISAAC KEKANA

COMPLIANCE AGENT

8

18

247

1

6

Visited

Western Cape

KZN

Free state

Gauteng

Mpumalanga

Eastern Cape

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NBCCI STAFFING & ORGANOGRAM

CHAIRPERSONS

GENERAL SECRETARY

SENIOR CASE ADMINISTRATOR

CASE ADMINISTRATOR X2

FILLING CLERK

PANEL OF INTEREPRETORS

NATIONAL EXEMPTIONS

COMMITTEE

RESIDENT PANELLIST

NATIONAL POOL OF PANELLISTS

SENIOR FINANCE & ADMIN OFFICER

FINANCE & ADMIN OFFICER

MEMBERSHIP ADMINISTRATOR &

COMPLIANCE AGENT

RECEPTIONIST

PA TO THE GENERAL SECRETARY &

GENERAL OFFICE ADMIN

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COMPANY INFORMATION NATIONAL BARGAINING COUNCIL FOR THE CHEMICAL INDUSTRY (NBCCI) TEL: 011 833 0922 FAX: 011 833 0921/011 838 5565/011 833 0452 Email: nbcci@nbcci.org.za Complaints: complaints@nbcci.org.za Compliments: compliments@nbcci.org.za