DEPARTMENT OF PUBLIC SERVICES AND ADMINISTRATION
PHASE 4:  TOWARD LEGISLATION FOR THE SINGLE PUBLIC SERVICE (SPS)
PRESENTATION TO THE PORTFOLIO COMMITTEE ON GOVERNANCE AND ADMINISTRATION

 

16 August 2006

 

1.            Introduction and Background

 

The development state

 

1.1                    Building an effective developmental state is a central objective of the current government in South Africa. A developmental state is pro-poor and must intervene decisively and coherently in the economy and society to address social and economic developmental goals. These fundamentally include bridging the historical racial-based divide between the developed first economy and the underdeveloped second economy.

 

1.3                   Government, through Cabinet, is calling for the establishment of a common system of public services. This common system, currently expressed as a single public service, has as its central objective improved and integrated service delivery, which in turn is a central goal of the developmental state. Hence, it is argued, that the imperatives of integrated service delivery and mobility between the spheres underpin the impetus for the evolution toward a SPS. Initially the development of this system requires the harmonisation of conditions of service between the public service and local government, but it will ultimately find expression in overarching framework legislation that will establish common norms and standards for public administration, management and service delivery.

 

Integrated service delivery

 

1.4                   Research has shown that many people have difficulty accessing government services, often because transport costs are prohibitive.  To respond to these challenges, it is necessary that government organises itself in such a way that as many government services are concentrated in a single location, and that the single location be as close to the people as possible.  In this respect, there have been many ground breaking initiatives aimed at bringing government closer to the people such as the Community Development Worker (CDW) Programme,  MPCCs, and Batho Pele Gateway. 

 

1.5                   The establishment of these initiatives aimed at integrated service delivery gives rise to the need for cooperative institutional arrangements.  For instance, officials staffing MPCCs will in time need to take responsibility for delivering services other than those of their immediate department.  Another important requirement is a financing system for jointly run service delivery institutions.  Plans are currently in the process of being designed to roll out additional MPCCs, with the objective being to have one MPCC operational in every municipality by 2014.  Plans to establish urban government service delivery malls to complement the MPCC initiative are also currently underway.  Such innovations in service delivery will be facilitated by institutional integration, especially between the spheres of government.

 

1.6                   Given the potential for integration offered by information and communication technologies, it may in future be possible to apply for an ID book at a clinic, for example, or to pay your traffic fine at a supermarket.  The technology already exists for many of these innovations and there have been isolated breakthroughs in the public and private sectors.  The aim, as already mentioned, is to provide as many services as possible in one place, and then to locate the service delivery point close to the people.

 

 

1.7                   To ensure that government’s thinking on access to services is well aligned, the dpsa is currently working on developing a comprehensive 2014 Government-wide access strategy and vision.  The strategy will focus on a range of key factors including, amongst others:

·        The identification of a range of service delivery platforms including the use of intermediaries such as retail outlets, ATMs that government should be using and leveraging to accelerate service delivery;

·         The ANC’s 2004 Election Manifesto, The People’s Contract, calls for the

·         Identifying the services that could be delivered through the various service delivery channels;

·         Human resources and funding models;  and,

·         Mechanisms for entrenching roles and responsibilities. 

 

Mobility of staff

 

1.8                   One of the strongest arguments for a SPS is the facilitation of mobility between the institutions of government.  Greater mobility facilitates the transfer of functions between spheres, to allow services to be delivered at the most appropriate level, and also enables the deployment of managers to where they are most needed in government. 

 

1.9                   The Constitution provides that national and provincial governments must assign functions to a municipality, by agreement, functions that would be more effectively administered locally, in cases where the municipality has the capacity to administer the functions.  The Constitution and legislation also require the transfer of specific functions, as in the cases of the Departments of Health and Water Affairs and Forestry.  One of the implications of a transfer of functions between the spheres is that the personnel who perform that function must also be transferred.  In terms of the Labour Relations Act, the function and the personnel must be transferred as “a going concern”.  In addition, the conditions of service of transferring staff may not be reduced in the process.

 

1.10               Numerous complications have arisen in transferring personnel between the spheres.  The conditions of service in the public service and local government are significantly different.   In the public service, a job is evaluated and calculated to have a certain job weight, which corresponds to a salary grade.  The job weight determines the salary, and the salary grades are uniform throughout the public service, with some sectoral exceptions.  In a municipality, remuneration is determined in line with the revenue collected by the municipality.  Affordability to a large extent determines the salary level.  In practice this means that there are a multiplicity of pay scales in local government.

 

1.11               This makes the transfer of staff very complex, given that overall conditions of service must be retained.  Add to this the fact that transferring employees are likely to have to resign from their pension funds, to their detriment, and may have to join a different medical aid.  Their union might not be represented in the bargaining council of the sphere to which they have moved.  Two strategies must be employed.  Firstly, mechanisms must be found in the short term to make the transfers easier within the existing constraints.  Secondly, conditions of service must be harmonised as far as possible to ensure mobility.  In this regard progress was made in the establishment of a framework for the assignment of functions to local government as well as a framework for the transfer of staff between spheres.

 

1.12               The challenge is to create a more cohesive workforce consisting of all spheres of government, to facilitate the process of the devolution of powers and functions and the deployment of staff to where they are most needed.  A ‘Single Public Service’ envisions, ultimately, a uniform cadre of public servants in national and provincial departments and municipalities who are multi-skilled and are able to deliver integrated services from one-stop shops, and who may move seamlessly between the spheres as service delivery needs dictate.

 

 

1.13               The harmonisation of conditions of service requires initially that local government rationalise its conditions of service.   This is already happening, and there have been many positive developments.  Local government is now working towards a single medical aid and a single pension fund.  In the public service there is a single pension fund and the recently created single medical aid fund, GEMS.  SALGA has instituted 10 categories of municipality, limiting the number of pay scales, and has instituted a job evaluation system.  Despite these efforts, public service and local government conditions are still very far apart. 

 

 

1.14               In this regard, the dpsa, together with key strategic partners, will undertake a review of conditions of service (pension, medical aid, remuneration and other conditions of service) across the public service, at local government level and in public entities and develop a policy framework for the SPS.  Dpsa has already commenced with a Personnel Expenditure Review that will ultimately inform the development and implementation of a new remuneration policy for the SPS.  Existing HR practices will also be reviewed with the objective of developing common norms and standards to cover the SPS.

 

The President’s Directive

 

1.15               In his State of the Nation Address on 11 February 2003, the President announced: “We will this year also finalise the proposal for the harmonisation of systems, conditions of service and norms between the public service in the national and provincial spheres on the one hand, and the municipalities on the other.”  In response to this call, proposals were made to Cabinet that resulted in the work plan of the G&A task team being approved in July 2003.  The proposal outlined a ‘four-phased’ approach toward the creation of a SPS, namely: 

·         Development of an assignment framework (powers and functions from the national to the local govt level)

·         Transfers framework

·         Rationalization of local government conditions of service

·         Development of framework legislation for the SPS

 

1.16                In August 2004, progress was reported on the first three phases which included the design of an assignment framework, a transfers framework and progress with the rationalization of local government conditions of service.

 

1.17               The Assignment Framework deals with the identification, process and procedure for the transfer/assignment of powers and functions to local government.  Linked to the framework is the review of the allocation of powers and functions contained in Schedules 4 and 5 of the Constitution.  These activities were driven by DPLG. 

 

1.18               Using the experiences of DWAF and Health as case studies, the DPSA has developed a framework to facilitate transfers (mobility) of staff between the three spheres of government.  The framework provides guidelines on the application of section 197 of the LRA (transfer of a business as a going concern).  The framework outlines the principles in which transfers must take place, including LR requirements and funding arrangements.  This framework should serve as an interim mechanism in the absence of legislation.  The Minister for Public Service and Administration issued the framework covering public service employees and simultaneously requested the Minister for Provincial and Local Government to do the same to cover municipal employees. 

 

1.19               The SALGA is currently reviewing and rationalising from within, the conditions of service and bargaining arrangements applicable to the local government sphere.  The Task JE system has been adopted and 28 job evaluation regions have been determined.  The catergorisation of municipalities into 10 categories and wage curves within the categories have been determined.  A collective agreement has been entered into resulting in the accreditation of a reduced number of medical and schemes.Government is currently in the fourth phase that involves the development of legislation for the SPS. 

 

1.20               Government is now in the fourth phase of work toward a SPS, namely the design of legislation.  In May 2006, the MPSA proposed to Cabinet that a one-stage legislative process be undertaken which will create a SPS (SPS) of national, provincial and local governments. This legislation (regulating organisational and human resource matters, conditions of service, labour relations, anti-corruption, service delivery and ICT for the SPS) should be introduced and administered by a single authority, the Minister for the Public Service and Administration (MPSA).

 

1.21               It was further proposed that the Personnel Expenditure Review (PER), currently being conducted by the dpsa, should inform the development and implementation of a new remuneration policy for the public sector. The aim of the project is to review current remuneration practices within the Local Government and Public Service and inform the development of an adequately benchmarked remuneration framework.  The legislation will create an enabling environment for key initiatives relating to conditions of service. 

 

1.22               In sum, the MPSA recommended that Cabinet approve that –

 

(a)          a ‘one-stage’ approach be adopted in relation to the development of the proposed legislation;

(b)          the scope of the proposed legislation include the Public Service and Local Government;

(c)          the proposed legislation be introduced and administered by a single authority, the MPSA;

(d)          measures to be taken relating to remuneration and conditions of services will be informed by the PER;

(e)          the implementation strategy and the workplans guide the next steps in the project.

 

1.23               In its decision, Cabinet:

 

(a)          Reaffirmed that the SPS has as its goal to: -

(i)             improve integrated service delivery;  and,

(ii)           establish a more cohesive workforce;

(b)          noted that the realisation of the SPS must take place within the Intergovernmental Relations Framework Legislation and that the dplg would play a pivotal role;

(c)            noted that whilst maintaining the independence of the spheres of the Government, synergies and co-ordination of efforts towards achieving the SPS, need to be established;

(d)            needs to consider the establishment of transitional arrangements to ensure continued service delivery and guard against the possibility of financial and other implications of contracts being entered into just prior to the realisation of the SPS; and,

(e)            noted that the labour unions have been consulted and that they seem to be ambiguous toward the concept of the SPS, possibly with a view to the impact that such a step could have on their membership.

 

1.24               Following the Cabinet decision, on the 11th July 2006, a workshop was convened of all the key role players.  The objective of the workshop was to:  give effect to the Cabinet decisions;  extend current task teams to include all role players;  provide a comprehensive briefing to all role players to ensure that they are all at the same level of understanding;  establish smaller work groups based on the work streams;  ensure that the work groups take the process forward within the Cabinet approved work plan.

 

1.25               In conclusion, service delivery and the institutions in national, provincial and local government responsible for delivering services are not sufficiently integrated.  Legislation is thus proposed to create a SPS, which would create norms and standards in relation to human resource matters, conditions of service, labour relations, service delivery, anti-corruption and information technology.  The scope of the legislation includes the public service and municipalities.  The legislation will be introduced and managed by a single authority.  Measures regarding conditions of service and other aspects will be phased in within the enabling environment created by the legislation.  Related work on the front-office and back-office integration will continue in parallel.

 

 

2.            Framework legislation for a Single Public Service

 

2.1                    Achieving the vision of a SPS presents many challenges, given the disparities and fragmentation that currently exist.  Legislation is therefore proposed to establish the framework for a SPS.  An Implementation Strategy  and a Legislative Workplan will guide the drafting of the legislation.

 

2.2                    The objectives of the proposed legislation are as follows:

 

2.2.1              to create a common culture of service delivery, based on the precepts of Batho Pele, in order to ensure a consistently high standard of service from the public service corps;

 

2.2.2              to stabilise and strengthen intergovernmental relations, recognising the distinctiveness of the spheres while emphasising their interdependence and interrelatedness;

 

2.2.3              to achieve more coherent, integrated planning, budgeting, implementation and monitoring and evaluation within a SPS, in general and specifically in relation to joint programmes;

 

2.2.4              to establish uniform norms and standards for employment in the SPS, including employment practices and employee relations frameworks and mandating arrangements; 

 

2.2.5              to create a single senior management service cadre, where appointment would be to the service rather than the post, facilitating the mobility of these managers within the SPS;

 

2.2.6              to provide a framework for remuneration and conditions of service for the SPS, recognising that any changes to existing medical aid and retirement fund arrangements will be subjected to an impact study and actuarial evaluation;

 

2.2.7              to provide for a human resource development strategy for the SPS and the development of an integrated skills database to support human resource planning;

 

2.2.8              to provide a mechanism for the approval of deviations from the norms and standards in exceptional circumstances or in the case of certain categories of employee;

 

2.2.9              to provide a mechanism for the transfer of functions and staff between institutions or spheres of government, within the framework provided by the Constitution and the Labour Relations Act;

 

2.2.10           to provide for the application across the spheres of government of the national e-government programme framework; and

 

2.2.11           to provide for an anti-corruption strategy and standards of conduct for the SPS.

 

2.2.12           The scope of the proposed legislation would include the current public service and municipalities.  Public entities will be regulated by separate legislation that will strengthen corporate governance and regulate human resource matters for public entities.

 

2.2.13           The legislation will create the enabling environment for the SPS and will ensure compliance with the implementation of revised human resource policies and practices including conditions of service.

 

3.            Progress

 

3.1                   Work on the SPS project is being undertaken in terms of three main work streams:

·          the integration of the front office (points of service delivery);

·           the integration of the back office (ICT and Information Systems); and,

·         the integration of the institutions that deliver services to the people.

 

3.2                   In relation to the front office, international experience (eg Brazil and Canada) has shown that the achievement of an integrated front office may precede back office integration, which is a longer-term undertaking.  In South Africa some groundbreaking work has already been done in this regard: MPCCs, Batho Pele Gateway and CDWs. Back office integration will take place within a comprehensive e-Government Programme Framework.  Institutional integration focuses on the harmonisation of conditions of service and norms and the development of overarching framework legislation for public administration.  A work plan outlining the detailed projects that will see the realisation of the objectives of the SPS has also been compiled and is in the process of being implemented. 

 

3.3                   As part of the implementation of that workplan, key partners have been identified for each of the five work areas to ensure full government participation in the different work streams, which are as follows:

 

·                Service delivery:  Access and Cascading Batho Pele to Local Government (integration of the front office);

·                ICT enablement of the SPS (integration of the back office);

·                Human Resources Management and Development (institutional integration);

·                Anti-corruption;  and

·                Framework Legislation for the SPS.

 

3.4                   The key partners identified for the work streams include the following institutions: the Presidency; the dplg; DHA; DWAF; Education; DoC; NT; GCIS; and, SALGA. Letters have been sent to Executing Authorities and heads of the various institutions advising them on the outcome of the Cabinet decision and requesting additional representatives for the different work streams. Several meetings and a workshop (targeted for 11 July 2006) have also been held to map the way forward with the various projects.  Teams have been constituted and are moving toward achieving the outputs in the different work areas (objective of 11 July 2006 workshop).

 

4.         Front-office integration

 

Access Strategy

 

4.1                   As part of the revitalisation of Batho Pele, the goal of translating the Access Framework into a Comprehensive Access Strategy and Vision 2014 has been achieved.  The document is currently undergoing a process of consultation and will formally be submitted to Cabinet by October 2006 for approval once this process is complete.  The Access Strategy acknowledges the inroads made by Government in achieving integrated and accessible service delivery through the usage of platforms such as MPCCs, the Batho Pele Gateway, Call Centres, Mobile Units, CDWs, but argues, however, that more needs to be done to strengthen current initiatives, to capitalise on new technology, to expand on existing access initiatives (access points) through creative, innovative and cost effective means, to increase the number of services delivered to the citizens via these various channels, to focus on human resource related matters such as capacity building, remuneration and conditions of service and, to inculcate an ethos of Batho Pele as central to each of these access initiatives.

 

4.2                   The Access Strategy further argues that the opportunities presented by the new economy will enable services to be delivered in a range of formats, providing more targeted and relevant content, faster and more effectively. Access to services is about customer care, attitude, human interaction, poverty alleviation and eradication; and use of the most appropriate technologies as a tool. It is important to have the front-end and back-end offices aligned/ complementing each other to ensure efficiency and effectiveness of service delivery.

 

4.3                   Access is also about the citizen participation in the governance processes and structures. Citizens’ participation is important considering that the Batho Pele principles such as Consultation, Information, Openness and Transparency refer to citizens’ access to information in different forms. Citizens’ participation will also ensure that services rendered by the Public Service are demand driven and modes of channels utilised to render such services are relevant and effective to render services and have taken into account the citizens’ capacity/ level of literacy.

 

4.4                   The use of relevant language is important to ensure access to services. This includes sign language and brails for written material. Language has to be catered for in both front-end and back-end offices to ensure that Citizens understand the services rendered and/ or information at all times.

 

4.5                   The Integrated National Disability Strategy White Paper identifies barriers to free access to services experienced by the people with disability. The structural barriers are:  the built environment; inaccessible service points; inaccessible entrances due to security systems; poor town planning; and poor interior design. The Access Strategy will complement the recommendations from the White Paper to ensure barrier-free society, even to the people with disabilities.

 

4.6                   The flexibility of Public Service hours of work is important as in some departments this is one of the barriers to access services. These are some of the issues that the Access Strategy would also seek to address.

 

4.7                   As part of the implementation of the Access Strategy, projects will focus on achieving the following outcomes:

 

·                Integrated Services (basket of services)

o        To enhance seamless service delivery and impact.

o        To improve customer experience.

o        To improve operational systems: front office –back office integration.

o        To enhance human capability through increased management skills.

o        To foster a culture of service delivery by inculcating “A new way of thinking” and a new set of behaviours.

 

o        To develop basic service standards for integrated service delivery.

o        To design and implement annual review mechanisms.

o        To ensure that all access points where possible, are similar in nature and operations.

o        To increase compliance in service standards

·                Monitoring and Evaluation

o        Develop a generic model of good practice with key performance indicators and encourage departments to achieve more results in this area of work.  

o        Support and enforce the implementation of the monitoring template.

o        Coordinate Public Service wide regular reporting on the implementation of the principle of access.   

o              Encourage departments not only to report on their performance, but also to evaluate and solicit public feedback on their performance.

o              To inculcate the culture of redress in government departments

 

Cascading Batho Pele to Local Government

 

4.8                   As part of the strategy of inculcating the Batho Pele ethos and practices at the Local Government level, a Change Management Engagement Programme was designed and is currently being implemented.  The following Municipalities/Metros/Districts have been trained on the Change Management Engagement Programme:

 

·               Western Cape – 18 Trainers have been trained in the following municipalities:  Drakenstein, Breede Valley, Stellenbosch and Swellendam.

·               KwaZulu-Natal – 75 Trainers trained in the following metro and districts: 

                                                   i.      Ethekwini Metro

                                                 ii.      Training was conducted in 9 districts on the 19th – 20th June 2006. The districts are: Umkhanyakude; Ilembe; Uthungulu; Uthukela; Ugu; Sisonke; Amajuba; Umzinyathi; and, Umsunduzi. The outstanding districts will be trained by end of July 2006.

·                     Gauteng:

·               City of Joburg – For the month of June 2006, 50 candidates will be trained and a further 20 will be trained in July 2006.

·               City of Tshwane – Initial meetings have been held with the Marketing General Manager and the dpsa was also invited to create awareness in one of the department’s strategic sessions and thereafter dates for training will be set.

·               Meetings with Limpopo, North West and Mpumalanga are scheduled to take place in July 2006 to agree on the roll out of the training programme in their respective provinces.

 

4.9                   Given the high demand from all the provinces for this programme, additional capacity will be built in the dpsa so that more provinces can be included within a shorter space of time.  As part of cascading Batho Pele to Local Government, the municipalities will be integrated in all the Batho Pele Activities, e.g. Public Service Week, Africa Public Service Day and the Learning Network.

 

5.         Back-office integration

 

5.1                   The MPSA has the specific responsibility for the management of ICT within government as well as ensuring that e-Government is coherently developed across the Public Service. The Implementation Strategy and the Workplan talk to the Integration of the Back Office which in essence is to ensure that government ICT or Information Systems implementation are governed by the ICT House of Values principles espoused in the e-Government policy, that of interoperability, security, economies of scale and the elimination of unnecessary duplication in IT systems implementation.

 

5.2                   The dpsa has the responsibility of ensuring that both discrete and transversal ICT systems across the three spheres of government are held against these principles. The dpsa has the further responsibility of ensuring that the integration of the front office and the successful implementation of service delivery mechanisms as espoused in the Access Strategy are facilitated and enabled through ICT and Information Systems in the same manner as transversal systems so that citizens have a single, seamless experience of government services.  To this end a number of projects have been incorporated into the attached SPS work plan.

 

5.3                   The e-Government Framework for National and Provincial government has been endorsed by SITA, GITOC, PNC on ISAD as well as the Governance and Administration Cluster. A Cabinet Memorandum is pending agreement on a portfolio of projects and an e-Government catalytic project, which will be directed at achieving early and visible benefits for government and citizens. The dpsa and all necessary stakeholders are working together to develop a strategy and plan to ensure that the e-Government framework is implemented by all spheres of government. SPS legislation and regulations will extend the MPSA’s responsibility in terms of ICT, IM and e-Government to all spheres of government.

 

5.4                   The first phase of e-Government, the Batho Pele Gateway portal (www.gov.za) is maturing. On 1 May 2006 the existing service information content was translated to 7 languages with the remaining four to follow by year-end. A content management strategy is under consultation to extend content management to provincial and local spheres.  A web-site co-existence strategy has been drafted for consultation to ensure the Batho Pele Gateway will coexist harmoniously with other web sites in all three spheres of government to ensure that content of government information is integrated and that citizens view government in as coherent a manner as possible.

 

5.5                   The eIGIS system has been completed and is being deployed at national and provincial level. This will retain all information about government ICT systems and projects and is a prerequisite for further e-Government system integration work, especially of backend systems and databases.

 

5.6                   The CabEnet system, formerly known as Kite, has been completed and is in the process of being deployed to all national departments. This will assist Cabinet and Directors General and certain support staff to communicate and manage information electronically with expected significant information effectiveness and efficiency improvements at the executive level of government. Provincial governments have showed interest in CabEnet also.

 

5.7                   SITA has embarked on a training programme to ensure that those charged with ICT systems operations and project managers are equipped with internationally acknowledged best practices. This will result in higher systems availability and more predictable work on ICT projects.

 

5.8                   The dpsa is supporting the Africa-wide initiative on Open Source Software by providing Secretariat services, jointly with Meraka Institute, for FOSSFA.

 

Challenges

 

5.9                   The challenges in translating the dpsa responsibility of the management of ICT and the delivery of successful e-Government lies initially in extending consultation to the local sphere of government of the e-Government framework endorsed at the national and provincial level, working together with all government CIOs and the SITA as well as key departments such as NT, DoC, the dplg, DHA, etc.

 

5.10               Furthermore, internal departmental level ICT Governance Models need to be evolved for all three spheres of government to support the e-Government Framework and by extension, the SPS.

 

5.11               The lack of support and or capacity to populate the eIGIS system with information in order to develop a meaningful portfolio of ICT projects is currently inhibiting more rapid progress.

 

5.12               The dpsa has capacitated itself to lead and coordinate the task of developing and maintaining a government wide ICT systems architecture to support the evolving e-Government work. Cooperation and consultation with the above mentioned stakeholders will be vital in the attainment of this enabling objective.


Recommendations

 

5.13               It is recommended that a study should be conducted to look at systems and projects that exist within the Local Government sphere and other matters relating to this. This will serve to inform the ensuing consultative process and optimal implementation of a holistic e-Government Framework.

 

5.14               It is recommended that government CIOs be instructed by Directors General of all provinces and departments to populate the eIGIS system with current system and project information and to maintain this information current at all times.

 

5.15               It is recommended that national and provincial departments maintain an ongoing engagement with the dpsa’s new ICT Oversight directorate to obtain support and guidance on matters related to ICT regulations in the Public Service.

 

6.            Institutional integration

 

6.1                   In August 2004, a two-stage legislative process was advocated, based on the need to harmonise Local Government and public entities internally before drafting overarching framework legislation.  Good progress has been made in the ‘first stage’ of the process.  Legislation to regulate Local Government employment matters was drafted.  In light of the Cabinet decision of 31 May 2006, the Municipal Employees Bill will become a Chapter within the overarching Legislation.  A Policy Framework for the Governance and Administration of Public Sector Institutions, which makes proposals on the governance and administration of public entities, was developed and is currently awaiting the Shareholder Management Model work of the DPE to be finalised to ensure alignment before submission to Cabinet for approval of both frameworks.

A Remuneration Policy for the Single Public Service

 

6.2                   The dpsa has commenced with a process to develop a revised remuneration policy for the public sector.  The intention is that the revised policy should eventually apply to the current Public Service, municipalities and some public entities.  The actual drafting of the revised policy has not yet started.  However, a PER 2006 is currently being executed.  Remuneration is one of the main focus areas of the PER 2006.  It is anticipated that the recommendations to be contained in the final PER 2006 report will inform the development of the revised remuneration policy.  The following paragraphs will provide an overview of progress with the PER 2006 project to date (middle of June 2006).

 

6.3                   The work is executed in the following four workstreams:

 

·          Research

·          Economic analysis

·          Public sector remuneration

·          Stakeholder communication

 

6.4                   The project is currently in the review phase.  The workstream is currently finalising a quantitative and qualitative analysis of the HR trends and practices, with specific emphasis on remuneration, in institutions in the public sector:

·               The quantitative analysis focuses on trends such as the number of employees and posts per sector, personnel expenditure trends, turnover rates, etc.  The information required for the analysis is, in the case of the Public Service, being obtained from Persal and Vulindlela.  Due to the fact that no central HR information systems exist for municipalities and public entities, the required information, in the case of municipalities, is being obtained during interviews with a sample of municipalities.  Due to the large number and diverse nature of public entities and the lack of centrally available information on these public entities, it has been decided that a quantitative analysis of the situation in these public entities will not be done.

·               During the qualitative analysis, an assessment is being done of the effectiveness of various remuneration and related practices in a sample of public sector institutions.  For this purpose a sample of 29 national and provincial departments, 10 public entities and 24 municipalities has been selected.  Interviews have been conducted with HR and other managers in the institutions to obtain their views on the various practices.  A comprehensive interview questionnaire was developed for this purpose.  To deal with the relatively large number of municipalities in the sample, SALGA appointed a separate service provider to assist with the process.  Approximately 50 interviews with departments, municipalities and public entities have been completed.

 

6.5                   The workstream has commenced with a process to conduct a job evaluation study on a sample of jobs in the national, provincial and local governments to assess the effectiveness of the current job evaluation systems utilised in these spheres of Government (Equate and TASK).  The processes and practices followed in the evaluation and grading of jobs in these spheres will also be assessed.  Due to the large number of different job evaluation systems utilised by public entities, public entities will not be included in the study.

 

6.6                   The workstream is also in the process of accessing information on best practices with regard to remuneration and related practices for benchmarking purposes.  Information relating to private and public sector organisations, both national and international, will be considered.

 

Rationalisation of Conditions of Service in the Local Government Sector

 

6.7                   Work on a single pension fund for the Local Government level has achieved momentum with the registration of the Local Government Pension Fund currently with the Registrar.  The pension fund will be a defined contribution targeting 30 000 employees who have no retirement provision.  SALGA is still in the process of engaging with interested parties on future arrangements for employees belonging to existing funds.

 

6.8                   There are currently six medical aid schemes accredited and these are:  Lamaf, Bonitas, Global Health, Munimed, Samwumed, and Hosmed.  The employer’s contribution is capped at R2, 070.  The next round of accreditation is scheduled for August. 

 

6.9                   On the Job Evaluation Systems, a collective agreement has been reached that Task will be the applicable system at the Local Government level.  Twenty-seven principal job evaluation regions have been designated.  To date, the system has been applied in 60 municipalities.

 

6.10               On 31 May 2006, the Minister of Provincial and Local Government published draft Municipal Performance Regulations for senior managers in Local Government, that is, municipal managers, and managers reporting to the municipal manager appointed in terms of section 57 of the Local Government:  Municipal Systems Act, 2000 (Act No. 32 of 2000), for public comment.  The draft regulations were issued in terms of section 120, read with section 72 of the Systems Act.

 

6.11               The regulations seek to set out how the performance of municipalities will be uniformly directed, monitored and improved. The regulations also deal with employment contracts for senior managers, as well as the performance agreements entered into between municipal councils and municipal managers, and which is intended to ensure a basis for continuous improvement in Local Government, and to provide an assurance to the municipal council of what the relevant council can and should expect from their senior managers.

 

6.12               This intervention by the MPLG should be seen as a further step to achieving standardization within the local government sector, with the view to eventually assisting and facilitating integration into the Public Service.

 

Human Resource Management and Development for the Single Public Service

 

6.13               Experience has shown that institutions in all spheres have human resource capacity problems, which impacts on their ability to deliver services on the ground. Under the SPS, it will be critical that resources are allocated to areas where they are needed. To achieve this goal, it is imperative that the existing human resource frameworks be aligned and “unified” for purposes of establishing the SPS concept. To realise this, it will be critical to establish whether current human resource management practices across the three spheres of government will support this vision, and if not, what should be done to ensure the required degree of alignment and unification.

 

6.14               To commence work on this area, the approach will be to undertake a review of prevailing human resource management practices in Local Government, the Public Service and public entities with the ultimate objective of developing a common set of norms and standards pertaining to employment practices including, but not limited to-

 

·               Human Resource Planning and Employment Equity

·               Recruitment and selection;

·               Conditions for employment 

·               Career management and promotions

·               Retention measures

·               Mobility arrangements between spheres, including but not limited to transfers and secondments

·               Performance management;

·               Competency frameworks

·               Financial disclosure

·               Senior management service

 

6.15                project plan has been compiled and is in the process of undergoing consultation with key partners.  It is envisaged that the project will consist of 6 phases with project closure targeted for 31 October 2007.

 

Fighting Corruption, Conflict of Interest and Conduct:  Designing norms and standards for the Single Public Service

 

6.16               The need for a public sector-wide approach to fighting corruption was identified by the Anti-corruption Coordinating Committee (ACCC) during 2002. The ACCC addressed this need by attempting to roll out the Public Service Anti-corruption Strategy, or parts thereof, to the Local Government and public entities sub-sectors. Whilst this was successful in part, the ACCC was cognisant of the fact that a single framework of norms and standards specifically approved by Cabinet was required to ensure coherence and integration of the fight against corruption within the public sector.

 

6.17               The emergence of the African Union and United Nations legal instruments against corruption brought about a less narrow approach to fighting corruption and these instruments put an emphasis on integrity of governance systems and a broader understanding of the public sector (as against the Public Service). As a result the work and organisation of the dpsa’s anti-corruption programme were restructured and aligned with the approach of integrity of governance systems and the development of a Public Sector Governance Strategy was identified as a key deliverable for the 2008/09 financial year.

 

6.18               In pursuance of the goal of a single Public Sector Governance Strategy by 2008/09, a compliance audit and gap analysis of the Public Service Anti-corruption Strategy was conducted in the 2005/06 financial year and a full scale impact assessment of the existing national anti-corruption framework is being conducted over the 2006/07 and 2007/08 financial years, with a country corruption report expected by December 2007. These assessments will form the basis for sectoral consultations and the ultimate development of policy proposals on a Public Sector Governance Strategy in the 2008/09 financial year.  Whilst consultations have been conducted between the dpsa and the dplg, a combined workplan with participation from SALGA still needs to be developed.

 

6.19               The rollout of the Local Government Anti-corruption Campaign is in early stages of implementation and the efficacy of this campaign has not been measured and evaluated and as such data to inform further policy development is not readily available as is the case with the Public Service Anti-corruption Strategy. The impact assessment requires a dedicated Local Government focus in order to produce data for policy purposes.

 

7.         Way forward

 

7.1                     In taking the project forward a number of challenges, over and above those indicated above, have been identified.  These relate to the following areas:

 

(a)            Communication

               Under the banner of communication, it will be important for the G&A Task Team, and the political and administrative principles to ensure support for the SPS.  This can be achieved through continued information sharing using various key platforms such as the SALGA NEC where the MPSA recently presented the SPS project.  It will be important to ensure that stakeholders are informed of progress, as well as challenges in undertaking the various work streams.  To this end, the G&A Task Team will ensure that regular reports are compiled and provided to the G&A Fosad, G&A Cabinet Committee and Cabinet.  

 

(b)        Key Partner and Stakeholder Participation

      Key decisions have been obtained from Cabinet that pave the way for the full implementation of the SPS strategy and workplan.  Successful and timely conclusion of the projects will be dependent on full participation by the identified partners and stakeholders.  It will be crucial that heads of the relevant institutions ensure that officials nominated to participate in the working teams play their role in ensuring the realisation of the SPS.  This can be achieved by ensuring that the relevant work areas as set out in the SPS workplan are included in the performance agreements of the various officials as well as building the projects into departments’ strategies and workplans.