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

1. RESTRUCTURING OF THE PUBLIC SERVICE:- RESOLUTION No. 7 OF THE PSCBC • PRESENTATION TO PORTFOLIO COMMITTEE • 20 AUGUST 2003

2. IMPLEMENTATION OF RESOLUTION No. 7 OF 2002: FRAMEWORK AGREEMENT: TRANSFORMATION AND RESTRUCTURING OF THE PUBLIC SERVICE: UTILISATION OF HUMAN RESOURCES

3. AREAS TO BE COVERED 1. Introduction and Background 2. Positives and Lessons learned 3. Progress report as at 30 June 2003 & Challenges to the Process 4. Phasing out of Resolution 7 of 2002 5. Employees in excess - unsuccessful in redeployment 6. Ongoing restructuring

4. INTRODUCTION AND BACKGROUND • Further phase in the transformation of the Public Service • 1994 exercise - rationalisation of institutions and departments/administration • 1996 exercise - did not achieve desired outcome • Resolution 7 of 2002 • AIM:- Transformation agenda forward - focus on service delivery and human resources • Constitutional 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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.

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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:-

20. 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

21. 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

22. THANK YOU • QUESTIONS