13 OCTOBER 2005

1. POSITION PAPER: SUPPORT & ASSISTANCE FOR TRANSFEREES AND SURPLUS EMPLOYEES 13 OCTOBER 2005

2. 1 Welcome & Introductions 10h00 – 10h05 PROPOSED AGENDA 2 Overview: Background & Context of the Paper 10h05 – 10h10 3 Overview: The DWAF-SALGA Memorandum of Agreement 10h10 – 10h40 4 Plenary Discussion: Comments, Risks & Challenges 10h40 – 11h15 Tea 11h15 – 11h30 5 Overview: DWAF Transferees 11h30 – 12h00 6 Plenary Discussion: Comments, Risks & Challenges 12h00 – 12h30 Lunch 12h30 – 13h00 7 Overview: Management of Surplus Staff 13h00 – 13h45 9 Plenary Discussion: Comments, Risks & Challenges 13h45 – 14h15 10 Group Work: Mitigation of Implementation Risks & Challenges 14h15 – 14h45 11 Plenary Discussion 14h45 – 15h15 12 Next Steps 15h15 – 15h30

3. BACKGROUND, CONTEXT AND PRINCIPLES

4. OBJECTIVES To provide an overview of the draft aftercare discussion paper To obtain input from the Task Team in relation to the draft discussion paper To finalise the discussion paper for engagements with organised labour To understand the implementation risks and challenges To facilitate the development of an operational plan for the aftercare programme

5. SCOPE OF THE POSITION PAPER AFTERCARE PAPER DWAF Transferees Surplus Staff

6. DWAF’S PHILOSOPHY Avoid job losses, as far as possible Proactively manage the impact of the restructuring Recognition of the legal framework Minimising social and economic effect of restructuring Philosophy Principles Empowerment of staff Protection of employee rights pre & post restructuring processes Strong commitment to staff

7. OVERVIEW: THE DWAF-SALGA MEMORANDUM OF AGREEMENT [MOA]

8. DRAFT & CONFIDENTIAL DWAF-SALGA MOA SCOPE: THE MOA WILL constitute the framework that governs the transfer of all staff from DWAF to receiving authorities bind DWAF and SALGA, as authorised representatives of the old and new employers of the staff to be transferred provide the basis for a collective agreement to be concluded in the DWAF Departmental Bargaining Chamber within the General Public Services Sector Bargaining Council provide the basis for a directive from SALGA to receiving authorities requiring compliance with this agreement, subject to approval by the councils of such authorities

9. DRAFT & CONFIDENTIAL DWAF-SALGA MOA PRINCIPLES DWAF & SALGA are committed to ensuring that the transfers take place as smoothly as possible before 1 April 2006 Transferees will be transferred in terms of Section 197 of the LRA The MOA does not apply to transfers effected prior to the date of signature of this agreement, except in so far as it relates to the financial provisions

10. DRAFT & CONFIDENTIAL DWAF-SALGA MOA Not all DWAF employees currently engaged in water service provision in those schemes to be transferred, will transfer to receiving authorities Water service provision organograms and optimal staffing numbers will be determined with reference to the report on “Suitable Personnel Benchmarks for DWAF Owned Water Services Infrastructure” IDENTIFICATION OF TRANSFEREES The identification of transferees will be informed by RA water service provision organograms, describing optimal staffing numbers, roles and requirements, developed by receiving authorities with advice and support from DWAF, as the water sector leader Placement of staff in receiving authorities will be based on the close-match principle

11. DRAFT & CONFIDENTIAL DWAF-SALGA MOA DWAF water services staff that do not transfer to receiving authorities will be placed in a corporate pool, which will be managed by DWAF For a period of three (3) years RA’s that require replacement or additional staff within the water service component of their organisations will solicit applications from the corporate pool, before recruiting externally Receiving authorities will not advertise any post prior to or during the transfer, where such an advertisement would take away an opportunity for the placement of potential DWAF transferees IDENTIFICATION OF TRANSFEREES Only staff employed by DWAF in the water service operated by it within the jurisdiction of a receiving authority will be transferred to that receiving authority, unless employees are being transferred and placed from the corporate pool

12. DRAFT & CONFIDENTIAL DWAF-SALGA MOA DWAF will pay receiving authorities a conditional grant that covers all personnel costs associated with transfers for a period of 36 months from the effective date of transfer, consistent with the framework provided in the Annual Division of Revenue Act After the 36-month period, the personnel-cost component of the conditional grant will decrease incrementally by 30% per annum over a three-year period RA’s will undertake to retain transferees in employment for 36 months from the effective date of transfer, provided however, that such undertaking does not prevent RA’s from terminating the employment of transferees for reasons relating to misconduct and/or incapacity POST TRANSFER RESPONSIBILITIES

13. DRAFT & CONFIDENTIAL DWAF-SALGA MOA DWAF and SALGA undertake to constitute a ‘Human Resources Task Team” to monitor and oversee the transfer of DWAF staff to RA’s as well as the matching and placement of DWAF staff into the organisational structures of RA’s It is also agreed that the Human Resources Task Team will regularly monitor the implementation of the terms of this agreement for a period of 3 years from the effective date of the transfers POST TRANSFER RESPONSIBILITIES

14. RISKS, CHALLENGES AND COMMENTS PARTICIPANTS TO CONSIDER THE FOLLOWING: • General comments; • What risks do you foresee, in your region, relation to implementation? • What challenges do you foresee, in your region, relating to implementation?

15. DWAF TRANSFEREES

16. DWAF TRANSFEREES PROTECTIONS FOR TRANSFEREES • Employees afforded the protections of Section 197 and the Memorandum of Agreement between DWAF and SALGA. • 3 year employment guarantee negotiated for transferees to Local Government. • Negotiation of consistent frameworks for the transfer of staff to receiving entities. • Penalty provisions where receiving entities fail to comply with transfer agreement provisions.

17. DWAF TRANSFEREES TRANSFER OMBUDSMAN CONTRACT MANAGEMENT UNIT • Independent & objective person appointed by DWAF to receive complaints and grievances lodged by transferees or organised labour, in respect of contraventions to transfer agreements by receiving entities; • Ombudsman would then investigate complaints and grievances and report back to DWAF who could then make a decision as to the best course of action to be taken against the receiving entity • The establishment and staffing of a contract management unit within DWAF to monitor the implementation of transfer agreements • Monitoring could include spot inspections and securing the assistance of organised labour to act as “watchdogs” for transferees and regular reporting of contraventions to various government committees, like the Government and Administration Presidential Cluster etc MONITORING AND EVALUATION

18. DWAF AFTERCARE MANAGEMENT PROGRAMME

19. AFTERCARE MANAGEMENT PROGRAMME Identify “at risk” situations Short term programmes Long term programmes

20. SURPLUS STAFF CORPORATE POOL • A virtual pool – not physically transferred to a “pool” • Employees within the pool can remain either remain within the function/ department/directorate from which they came and can be managed by each regional DWAF office, with support from the Head Office, where required SURPLUS STAFF STAFF: • That do not transfer to the receiving entity, either voluntarily or following non-selection after application of the transferring or placement selection criteria; • That are not placed into the newly designed organisational structures in the course of the restructuring process; and/or • Whose posts are declared redundant following the restructuring and/or transfer process

21. SHORT TERM PROGRAMMES PROPOSED OPTIONS Payroll Management Contract Staff Expedited Enforcement of Disciplinary Proceedings Recruitment Freezes Elimination and Reduction of Overtime Enforcement of the Retirement Age Early Retirement Programmes

22. LONG TERM PROGRAMMES PROPOSED OPTIONS Voluntary Separation Programmes Placement within Water Service Providers/ Water Service Authorities, municipalities, government departments, or the private sector Secondments Contracting-Out Initiatives Training, Retraining and Reskilling Counselling

23. LONG TERM PROGRAMMES PROPOSED OPTIONS Creation Of Specialist Advisory Positions Outplacement Services Establishment of job clubs Training for managers

24. AFTERCARE MANAGEMENT PROGRAMME - SHORT TERM PROGRAMMES

25. PAYROLL MANAGEMENT SHORT TERM PROGRAMMES • DWAF to initiate a drive to remove ghost or shadow workers, absconded employees, and ghost pensioners as an immediate and uncontroversial step toward determining real staffing numbers; • Measures will also be adopted to ensure greater control over payrolls to militate against the growth of ghost workers; • Once this exercise has been complete, DWAF should compile an up to date profile of transferees, per water service provider to which employees will be transferred.

26. CONTRACT STAFF SHORT TERM PROGRAMMES • An analysis should be undertaken of staff categories and the nature of their employment within the affected functions that will, in turn, transfer to the receiving entity • This exercise will identify temporary staff, casual and contract employees who may be released when their contracts expire, thereby yielding opportunities for surplus staff • A decision not to renew the fixed term contract of a particular employee will, however, take into account whether or not the employee may have developed a reasonable expectation of renewal or a permanent position as contemplated by the LRA

27. EXPEDITED ENFORCEMENT OF DISCIPLINARY PROCEEDINGS SHORT TERM PROGRAMMES • Pending and outstanding disciplinary cases should be expedited and brought to finality prior to transfers being effected, without compromising on procedural fairness.

28. RECRUITMENT FREEZES SHORT TERM PROGRAMMES • A temporary hiring/recruitment freeze may be initiated in respect of those job categories that contain surplus staff, as well as in other areas where the surplus staff might otherwise be accommodated. • Positions may not be advertised or filled within the receiving entities and DWAF until a search for potential candidates within the group of excess staff had been completed. • The freeze could apply to contract or permanent staff and, unless it would compromise operational requirements, to external contractors in certain services as well. • Similarly, the freeze could extend to suspending practices of automatic replacement of staff who retire normally.

29. ELIMINATION OR REDUCTION OF OVERTIME SHORT TERM PROGRAMMES • Overtime work can be reduced or eliminated. • Alternatively, surplus staff could work overtime, or work done during normal hours could be shared with surplus staff to minimize the need for overtime.

30. ENFORCEMENT OF RETIREMENT AGE SHORT TERM PROGRAMMES • Enforcing the retirement age can lead to substantial reductions in staff numbers by: • Phasing out staff who are already over the retirement age and are continuing to work, and • Requiring workers to retire when they reach pensionable age. • These processes will need to be done in consultation with employees, especially where existing processes exists.

31. EARLY RETIREMENT PROGRAMMES SHORT TERM PROGRAMMES • Initiation of a voluntary early retirement program. The efficacy of this would depend on the costs and targeting the availability to staff where there is a surplus, while retaining those who are essential to the operational needs of the Department. • The implementation of such a programme would be dependent on the GEPF. The rules of this fund would need to be explored to determine any constraints, limitations, requirements and processes to be applied. • The costs associated with early retirement programmes will need to be calculated once the numbers of potentially affected staff become known, to allow for appropriate and informed decision making.

32. AFTERCARE MANAGEMENT PROGRAMME - LONG TERM PROGRAMMES

33. VOLUNTARY SEPARATION PROGRAMMES LONG TERM PROGRAMMES • VSP’s are the least controversial mechanisms for reducing surplus staff in that they are the most politically and socially acceptable largely because of their voluntary nature • Such a programme would only be implemented after though discussions and approval from the DPSA. • A VSP will invite staff to vacate their posts in exchange for a favourable compensation package. • The amount of compensation should act as an inducement to voluntary behaviour and will therefore typically be more generous than a statutory settlement. • Costs associated with VSP’s will need to be calculated once the numbers of potentially affected staff become known, to allow for appropriate and informed decision making.

34. PLACEMENT WITHIN OTHER ENTITIES LONG TERM PROGRAMMES • The HR teams of DWAF or the dedicated aftercare programme unit could be devoted to seeking out opportunities in the labour market, providing surplus staff with information on job opportunities, and helping them to apply for vacancies where applications are required. • Surplus staff could also be redeployed to other entities that have vacancies. • Volunteer activities are another option, especially if they are linked to social responsibility initiatives supported by DWAF. • DWAF could determine, which of their service providers, are able to place selected surplus employees within their organisations. DWAF could consider, particularly those contracts that are up for renewal or renegotiation expressly requiring service providers to employ a certain number of staff.

35. SECONDMENTS LONG TERM PROGRAMMES • Internal and external secondments may provide a valuable short-term solution in some circumstances, and might also lead to more permanent employment with the host employer • Mobility Assignments: These provide an opportunity for employees to work in another unit or department for an extended period of time, before returning to the positions they vacated, or before taking up other positions that become available in the interim • Sharing Resources: Surplus staff could be used by municipalities or other Directorates within the Department in lieu of hiring a consultant or temporary employee. Inter-agency committees or teams, and provision of training services should also be explored • DWAf could also consider seconding staff to receiving entities, to continue performing the job that they performed prior to the transfer. In this way, secondees will remain within the employ of DWAF and the receiving entity will obtain further resources to provide the service while not incurring any risk

36. CONTRACTING OUT INITIATIVES LONG TERM PROGRAMMES • Contracting out can favour former staff and offer opportunities for some to start their own small businesses. • These services will be considered as they provide a means to encourage employee-provided services, thereby reducing unemployment among workers who have exited the Department. • DWAF may consider, where reasonably possible, awarding short or defined-term outsourced subcontracts to close corporations or companies set up by former employees.

37. TRAINING, RETRAINING & RESKILLING LONG TERM PROGRAMMES • Training, which could include retraining and skill upgrading to assist staff to secure new paid employment elsewhere. These training initiatives could also include training in small business, micro enterprise, or other initiatives to assist staff in the creation of self-employment and other remunerative activities. • Other effective development opportunities include coaching, shadowing, cross training, mentoring, promotion/transfer, temporary reassignments, team projects, and volunteer activities.

38. COUNSELLING LONG TERM PROGRAMMES • Counselling will be the first, and minimum, level of support that DWAF can put into place to help displaced workers • Trauma counselling: The loss of employment can be traumatic to staff, and can lead to distress in their families and social networks. One component of the counselling process would be to provide support and assistance to staff. • “Pick-up counselling”: by trained professionals will also be implemented to take place immediately after separation interviews have been held, to ensure that affected employees can vent their concerns and can be coached on how to deal with their exit from DWAF. • Financial counselling: This is a vital component of the support mechanisms to be offered to staff, and consideration will be given to making it compulsory for staff who exit employment. Financial counselling will therefore be able to assist and empower staff to make prudent financial and investment decisions.

39. CREATION OF SPECIALIST ADVISORY POSITIONS LONG TERM PROGRAMMES • Involves creating interim, fixed-term specialist advisory positions – especially for individuals approaching retirement and who possess deep and valuable institutional knowledge. An express condition of performance agreements for specialist advisors would be that they transfer their knowledge and skills within an agreed period. • Consideration will need to be given on how such specialists will be remunerated, whether they should enjoy income protection if specialist jobs are graded lower than the jobs they previously occupied, whether there should there be a freeze on current earnings, whether it would be appropriate to introduce financial incentives that would be contingent on achievement of specified outcomes by the time the contract expires, and the like.

40. OUTPLACEMENT SERVICES LONG TERM PROGRAMMES • Outplacement services are valuable because they not only help to identify and match staff skills to available job opportunities but also offer a vast array of other related services in assisting staff in the search for a job. • Outplacement also helps departing employees to deal with the separation, decide on an appropriate new position, start a new business, or find a suitable position quicker than the search might otherwise have taken. • Outplacement programmes of the following nature will be provided to secure the full benefit of these services for affected staff – • Individual programmes designed to meet the needs of a departing employee; • Group programmes (which are more cost effective); and • Career transition centres which cater for large numbers of employees.

41. ESTABLISHMENT OF JOB CLUBS LONG TERM PROGRAMMES • A job club envisages a group of staff who meet regularly together as part of their job seeking efforts. Staff who are members of the club can themselves determine their main activities – including: • Receiving job leads from prospective employers and personnel agencies • Sharing information about job openings • Developing job-search strategies • Creating job-hunting teams for moral support and shared transportation • Taking field trips to workplaces that may be hiring • Practicing interviews, telephone skills, and telephone follow-up calls • Listening to speakers or watching videos about different kinds of jobs • Getting and sharing information about housing, legal aid, medical assistance, and other resources

42. TRAINING OF MANAGERS LONG TERM PROGRAMMES • Dealing with exiting or even surplus staff that have been identified as such and fear the loss of their jobs, is often one of the more difficult situations faced by managers, especially when an exit has not been voluntarily initiated. • How managers deal with these sensitive issues will determine whether or not employees depart with dignity, and will also influence perceptions of the Department in the minds of both those staff who remain as well as prospective employees. • To this end, appropriate training for managers will be provided

43. MITIGATION OF RISK STRATEGIES

44. PROPOSED ROUTE FORWARD • Participants to provide final comments, by email, to Jackie by no later than – Tuesday, 18 October. • Comments to be forwarded to Resolve by Wednesday, 19 October. • Resolve to finalise paper based on input from the workshop and other comments by Thursday, 27 October. • Once paper signed off by DWAF, operational plans to be developed, by Resolve in conjunction with DWAF, for implementation of the programmes. • Resolve to develop collective bargaining strategy to be developed in conjunction with DWAF LR. • Development of communication strategies and plans.

45. QUESTIONS