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RESTRUCTURING OF THE PUBLIC SERVICE:- RESOLUTION No. 7 OF THE PSCBC

PRESENTATION TO PORTFOLIO COMMITTEE

20 AUGUST 2003

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IMPLEMENTATION OF RESOLUTION No. 7 OF 2002: FRAMEWORK AGREEMENT:

TRANSFORMATION AND RESTRUCTURING OF THE PUBLIC

SERVICE: UTILISATION OF HUMAN RESOURCES

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AREAS TO BE COVERED

1. Introduction and Background2. Positives and Lessons learned 3. Progress report as at 30 June 2003 &

Challenges to the Process4. Phasing out of Resolution 7 of 2002 5. Employees in excess - unsuccessful in redeployment 6. Ongoing restructuring

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INTRODUCTION AND BACKGROUND

Further phase in the transformation of the Public Service1994 exercise - rationalisation of institutions and departments/administration1996 exercise - did not achieve desired outcome

Resolution 7 of 2002AIM:- Transformation agenda forward - focus on service delivery

and human resourcesConstitutional obligations:-

Efficient, economic and effective use of resources - s195(I)(b) Services to be provided impartially, equitably and without bias - (d) Good human resource management … maximise human potential - (h) Public administration must be broadly representative of the SA people, with

employment and personnel management practices based on ability, objectivity, fairness and the need to redress imbalancesl

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INTRODUCTION AND BACKGROUND (cont.)

Key objectives of the framework agreement To establish optimum level of staffing per department To provide an effective and efficient service To provide a transparent procedure for the effective utilisation of

personnel To provide alternatives in addressing the question of excess

employees To provide severance and other packages to facilitate the

process Resolution No. 7 was arrived at ito s189 of the LRA

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POSITIVES AND LESSONS LEARNED

Improved working relations - employer and unions Workplace employee participation

participative management - information sharing, consultation, etc.

Management & budgeting frameworks taken seriously strategic planning, organisational structure, etc

Empowerment of staff - internally driven Promoted redeployment, Employment Equity, etc Identified need for forward planning

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BRIEF PROGRESS REPORT - END JULY 2003

Overall impression - positive Majority of departments - National and Provincial

Developed and consulted on plans consolidation of HR plans

Matching and placement - profiles Currently busy or dealing with grievances

Outstanding processes Finalisation of vacancies and excesses Advertising of vacancies

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CHALLENGES TO THE PROCESS

Late start - Agreement signed in June 2002 Setting up of structures and planning - end 2002 actual implementation - early 2003 Health - directive on rank/leg promotion Education - tensions with SADTU

Capturing of information on database excess employees and vacancies delays redeployment

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CHALLENGES TO THE PROCESS(CONT.)

Identification of training needs - facilitate redeployment Departments that provide services to another

department example Traditional and Local Government - cleaners at police

stations in KZN Transfer to Local Government or change of employer Socio-economic impact on lower level employees Filling of vacancies - rural areas and scarce skills Lack of participation by excess employees

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INFORMATION AS REFLECTED ON PERSAL - 11 AUGUST 2003

Of the 20 047 excess employees - 72.1% are at salary level 3 or below - semi & lower skilled employees. On the other hand - of the 15 632 vacancies - 51.0% are from 4 to 8 - services

NUMBER OF VACANCIES AND PERSONNEL IN THE EXCESS DATABASE BY SALARY LEVEL

0

1648 28

18

1137

1264

915

2914

1368

1517

850

262 52

7

162

231

13 669 328

1209

0

2268

2058

1315

1105

480

509

176

55 8 7 6 2 1

0

2000

4000

6000

8000

10000

12000

14000

VACANCIESPERSONNEL

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INFORMATION AS REFLECTED ON PERSAL - 11 AUGUST 2003

From the above graph it is clear the a number of depts have not captured their vacancies. The numbers in excess at the national level is from Defence.

NUMBER OF VACANCIES AND PERSONNEL IN THE EXCESS DATABASE BY PROVINCE

22 9 245

8909

2

579

3715

2045

16 90

4234

566

1

954

4705

149

7956

898

0

1014

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

PERSONNEL

VACANCIES

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INFORMATION AS REFLECTED ON PERSAL - 11 AUGUST 2003

There is a mismatch between the excesses and vacancies - excesses are either farm labourers or soldiers whereas nurses are required.

NUMBER OF VACANCIES AND PERSONNEL IN EXCESS BY SECTOR

0 370

36 160

0 190

150

223

410

8599

568

62

8546

71 23

7148

4

1245

62

1116

1239

762

199

4926

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

VACANCIESPERSONNEL

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CHALLENGES ENCOUNTERED BY CERTAIN DEPARTMENTS

South African Police Services Large number of grievances Joint audit process Successful reduction of grievances to ± 600 and 208 formal

disputes delayed the process Legal challenge - Labour Court

Department of Public Works Had to restart at the beginning of 2003 Currently engaged in matching and placement Progressing well

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CHALLEGES ENCOUNTERED BY DEPARTMENTS (CONT.)

Department of Defence Slow progress :- Public Service Act personnel Uniform personnel - aligned with spirit of resolution 7 - but

following implementation directives implications for staffing National Protection Services

Provincial Departments Health and Education

Impact of rank/leg promotion Vacancies at professional levels Tensions with SADTU - Educators

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PHASING OUT OF RESOLUTION NUMBER 7 OF 2002 (Cont)

Noting the progress thus far by department; Resolution 7 which provides at paragraph 3 :-

“This agreement comes into effect on the date of signing and remains in force for twelve months. In the event that the terms of this agreement have not been implemented in the period stipulate herein, the duration of this agreement will be extended by a further three month”.

Date of signature plus 12 months - 13 June 2002 to 12 June 2003 - phasing out period - 13 June to 12 Sept 2003

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PHASING OUT OF RESOLUTION No. 7 (CONT.)

Three months used to phase out agreement By end July all department to finalise:

Strategic and Human Resource plans New structure captured on Persal Matching and Placement of Staff Identified excess employees - informed in writing Addressed grievances submitted vacancies to IDTT ad DPSA

Releasing of closed vacancy lists:- Levels 1 to 4 one per Provincial and one for National

Managers and Union representatives to facilitate

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PHASING OUT OF RESOLUTION No. 7 (CONT.)

Open vacancy circular:- Levels 5 to 12 Departments to release via the IDTT encourage mobility both horizontally and vertically create further opportunities for redeployment of excess

employees Processes to run from end July to mid September 2003 Departments to receive and consider applications for

severance packages

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SPECIAL SUPPORT - DURING PHASING OUT PERIOD

Provincial and National Departments as identified in report to receive focused assistance from DPSA

Facilitate in updating of PERSAL Support to Provinces in the development of closed and

open vacancy circulars Technical committee of PSCBC - used to assist in

grievance resolution Sector councils to deal with disputes - through and

expedited process

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EXCESS EMPLOYEES UNSUCCESSFUL IN THE REDEPLOYMENT PROCESS

Noting: The varying stages of implementation The possible socio-economic impact on a number of rural areas

- this assessment still has to done. The lack of a mechanism to deploy to Local Government and

other employers The following framework was adopted to address excess

employees that are unsuccessful in the redeployment exercise:-

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EXCESS EMPLOYEES UNSUCCESSFUL IN THE REDEPLOYMENT PROCESS

(Cont) Indentified, informed and placed in a special programme Assess and re-skill and absorb into vacancies over the

period ending 30 June 2004 future vacant posts National Protection Services Expansion of Home Affairs and other departments Decentralisation of Services Local Government

Responsibility Office of the DG in the provinces DPSA:- National Level

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FRAMEWORK TO DEAL WITH ON GOING RESTRUCTURING

Proposal to deal with future such exercises: Replace Resolution 7 of 2002 with a new agreement Based on the Principles established in Resolution 7 Provide for LRA sections 189 and 197 eventualities Process to be departmentally driven Packages in resolution 7 to be included in new agreement

include change of employer package

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THANK YOU

QUESTIONS