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

2. IMPLEMENTATION OF RESOLUTION No
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 excess employees % are at salary level 3 or below - semi & lower skilled employees. On the other hand - of the vacancies % 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 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