Public Service Restructuring: briefing by Department

Meeting report

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
22 MAY 2002
PUBLIC SERVICE RESTRUCTURING: BRIEFING BY DEPARTMENT

Chair: Mr J Gomomo (ANC)

Documents Handed Out:
Framework Agreement: Transformation and Restructuring of the Public Service (Utilisation of Human Resources)
Public Service Job Summit: Framework Agreement

SUMMARY
The Department of Public Service and Administration briefed the Committee on issues of restructuring in the public service and concentrated mainly on the issue of redeployment. He mentioned that the DPSA would ideally like to see a situation where this process does not lead to job losses, but if this is not avoidable then this will have to be done. In this regard, a social plan to help those who have been laid off has been developed. A main concern is that this framework has not yet been agreed to by most parties, and as this needs a 51% agreement to within the stakeholders, it is currently does not enjoy a legal standing; ongoing bilateral talks are going on about the matter.

MINUTES
Deputy-Director General for Integrated Human Resources: Mr Phumudzo Alvin Rapea, pointed out that the presentation is a progress report on the transformation of the public service. As background he noted that the Public Service Job Summit was held in Polokwane in January 2000 to take forward the Presidential Job Summit Resolution. Also, during the 2000/1 salary negotiations it was agreed that issues of transformation of the public service be dealt with at the Job Summit.

From 16 October 2001 to 6 March 2002 the employer and unions negotiated and concluded a framework that reduced the broad guidelines into two specifics. The scope of the agreement as the first issue affects employees of the government and falls within the registered scope of the Public Service Co-ordinating Bargaining Council (PSCBC) as in the public service. Implementation should take twelve months and the duration could be extended by a further three months. Objectives and principles herein include; developing a framework for transformation/restructuring and also to develop sector strategies for job creation amongst other things.

Phase 1 of the project starts with the Departments formulating their own strategic plans as according to the requirements of the PFMA. This also includes the formulation of an organisational structure. He pointed out that the Departments must also develop their implementation plans in this regard. A Department must, amongst other things, identify employee profiles in line with defined posts, appropriately place employees and so forth.

General rules for redeployment include the following. Departments are responsible for the implementation of the transformation and restructuring process. Employees affected must be treated fairly and also be informed about the process. The employer must also apply measures to facilitate and change redeployment, which includes; training for excess employees or allow employees to retire early if they so wish, etc. He also pointed out that the maximum cost of redeployment should be R 25 000 and excess employees must participate in the redeployment and retraining process. Employees who unreasonably refuse to be redeployed are deemed as to have resigned. Over and above the severance package, a grant of R 5 000 (once off) is proposed. Another provision herein is that employee parties like trade unions should be given observer status in the interviewing process.

At departmental level, departmental task teams (DTT) have been established to monitor the redeployment process. These task teams are responsible to the DPSA and the Public Service Commission (PSC). In terms of access, employees who are not redeployed, the employer must explore reasonable alternative employment opportunities for them. He added that excess employees who still cannot be employed after exhausting all alternative arrangements have to be given a severance package or opt for early retirement.

In respect of dispute resolution, the departmental task team must first try to resolve the matter and if not resolved this should then be referred to the Public Service Co-ordinating Bargaining Council.

Mr Rapea concluded by outlining the Department's social plan. Part of the social plan is to equip the effected employees with life and portable skills. It will assist affected employees to identify their options.

In conclusion, he noted that although the majority of parties have not yet signed the agreement, Departments and provinces are currently going ahead with restructuring and transformation.

Discussion
Ms L Maloney (ANC) asked about excess staff versus the volunteerism campaign. Is this not contrary to the volunteer campaign?

Mr Rapea pointed out that excess personnel can, for instance, be used to help fast track projects or Departments which have a huge back load like pension applications which can take up to two years to be processed.

Mr Van Jaarsveld (NNP) asked about unions who have not yet been engaged on the transformation framework: had there been any engagement with these and if so at what stage was the process at?

Mr Rapea said that with regard to parties which have not yet signed, the doors are not closed and they are having bilateral talks on an ongoing basis.

Mr M Kgwele (ANC) asked if the Department had looked at the issue of retirement due to ill health? Seemingly people do so to ensure that they continue earning an income from the state. Perhaps the DPSA should put more attention on the issue.

Mr Rapea pointed out that this culmination should have a history, it should not just happen all of a sudden and the Department is looking at these issue very closely.

Mr Abrahams (UDM) asked about the refusal to be redeployed. Was dismissal not perhaps too harsh a decision? Also asked how many posts are going to be affected as a result?

Mr Douglas (IFP) questioned the assurance that there would not be retrenchments. Was this not contrary to the provision for dismissal if one refused to be redeployed? Lastly, what is the earliest age for an early retirement?

On the issue of dismissals, he pointed out that this is based on operational requirements and needs. That is, because of the prevailing human resources needs in a particular situation at the time. After going through this process and the alternatives as pointed out earlier, any refusal is a misconduct which leads to the dismissal.

On the issue of how many people are affected, he pointed out that at the moment, they do not know how many numbers are involved. The numbers have to be quantified through this process, even though some Departments have indicated theirs in the strategic plans.
On the assurance of 'no retrenchments', he pointed out that there was a misunderstanding. Ideally the DPSA would like to see no retrenchments at all, but it is not always possible.

He pointed out that the early retirement age is currently 55 according to the Government Employees Pension Fund (GEPF)

Advocate Madasa (UCDP) asked what the present status of this agreement was, given that most parties have not yet signed it?

Ms September (ANC) pointed out that there are some restructuring processes outside this one that have already been running, the challenge seems to be how to merge them with this one.

The status of the agreement is that it currently does not have a majority support. In terms of the PSCBC constitution, 51% has to be attained for it to become functional. He pointed out that the DPSA would really like labour unions to be part of the process and not just spectators. On the issue of the integration of 'other processes', he pointed out that if this agreement was functional it would be easy. Excess personnel in the SANDF would for instance be roped in to help the SAPS fight crime, but the integration will take place when this agreement has been passed as a resolution of council.

Mr Abrahams(UDM) asked what happens if a senior departmental or provincial manager acts in a highhanded manner thereby negatively affecting people lives by unfairly redeploying an individual. Are there checks and balances against this?

A Member asked how this process would affect service delivery.

Mr Rapea replied that if a manager acts in a high handed manner, currently they might get away with it because this is not clearly regulated against. But there are departmental task teams and inter-departmental task teams (IDTT) which are responsible for scrutinising these actions. The union observers are also required to form part of the checks and balances system against such abuses.

On service delivery, he pointed out that it is central to this process. However, some people use this restructuring process as an obstacle to their Department's performance, for instance some will say that they have too many personnel who are draining the costs instead of using the funds for delivery.

The meeting was adjourned.