CHAPTER 5

RATIONALISATION OF TERMS AND CONDITIONS OF SERVICE


1. INTRODUCTION

The amalgamation of the public services of the former Republic of South Africa, the four "independent states" and the six self-governing territories into a single, unified public service for the new South Africa implied that uniformity in terms and conditions of service had to be established. The object of this part of the rationalisation of public administration had a dual character: to determine the basis of the terms and conditions of service to be applied, and thereafter to ensure that the revised terms and conditions of service were applied correctly to each member of the new public service.

The concept of uniformity in terms and conditions of service requires some elucidation. Individual members of the public service did not enjoy the same terms and conditions of service. A basic distinction existed between officers and employees, which was manifested in differences in terms and conditions of service, primarily related to security of tenure.1 A second basic distinction concerned the involvement of the Public Service Commission (or a provincial service commission) in the career incidents of individual public servants. The Commission was involved in the career incidents of only a portion of the public service. The majority of public servants are appointed and administered by their employing departments without the intervention of the Commission, but with access for redress to the Commission for all public servants. More specifically, the Commission was not involved in the career incidents of employees, but only in respect of officers in the A division. A third type of distinction, encompassing a wide spectrum of conditions of service, is made on the basis of the type of work performed by a public servant, and the circumstances in which the work is performed.

Against this background, the establishment of uniformity in terms and conditions of service for public servants in essence meant the setting in place of one set of terms and conditions of service (with specified internal commonalities and differentials) in substitution of disparate sets of terms and conditions of service, applicable to the former public services of the Republic of South Africa and the various homelands.

2. CONSTITUTIONAL GUARANTEES

The Constitution did not prescribe the rationalisation of terms and conditions of service in detail, but stipulated that the terms and conditions of service applicable to a member of one of the former eleven public services immediately before the commencement of the Constitution would continue to apply to him or her ".... until amended by any law .... to establish uniformity of the terms and conditions of employment in accordance with those generally prevailing at such commencement". The Constitution was, however, specific in guaranteeing certain terms and conditions of service:

By implication, all other terms and conditions of service could be changed, provided this was done in terms of a law regulating the public service.

Broadly defined, terms and conditions of service encompass all matters arising from or pertinent to the employment relationship between the individual and his employer. In the public service domain, two broad categories of terms and conditions of service can be distinguished: those of general applicability irrespective of the type of occupation practised, and those differentiated on the basis of the specific type of work performed and the circumstances in which it is performed. The first category includes the basic rights and obligations of public servants; the prerogatives of the State as employer; the type and degree of protection accorded public servants against arbitrary actions by the employer; the practices and procedures to be applied in their appointment and administration; fringe benefits of general applicability; work related measures of general applicability; and the structures and processes for collective bargaining. The second category includes an extensive array of conditions of services, all job related, and covering matters like appointment requirements, salary scales, the determination of salary notches in accordance with qualifications and experience, qualifying periods for promotion, measures for performance evaluation, and job specific remunerative and compensatory allowances.

The general, non-occupational specific terms and conditions of service are contained in the Public Service Act, Regulations and Staff Code, the Pensions Bill and Rules, and the Public Service Labour Relations Act. The occupational specific conditions of service are accommodated for the most part in personnel administration standards and, to a limited extent, in "circular instructions" issued by a competent authority. This categorisation is not absolute. Some elements of terms and conditions of service are also found in the Public Service Act, Regulations and Staff Code, for example the term appointments of heads of department, special leave provisions for officers and employees attached to educational institutions, and the rules of the motor car scheme for members of the management echelon. On the other hand, certain personnel administration standards do not deal with specific occupations but with groups of personnel, drawn from more than one occupational class, who find themselves in particular work related circumstances, for example Parliamentary sessional officials and officials serving in missions in foreign countries.

3. STEPS TO ACHIEVE UNIFORMITY IN CONDITONS OF SERVICE

The establishment of uniformity in terms and conditions of service for the new public service entailed a number of steps -

4. DISPARITIES TO BE ADDRESSED

Varying degrees of disparity in terms and conditions of service existed amongst the eleven former public services. The public services of the homelands had all been hived off from the public service of the Republic of South Africa (RSA). As a consequence, they had all been established on the basis of laws, regulations and codes modelled on the parent public service. In the area of pensions, however, marked disparities had developed between these public services. These disparities would present a major rationalisation challenge in bringing about uniformity in terms and conditions of service.

As far as terms and conditions of service of general applicability, excluding pensions, were concerned, a substantial degree of uniformity existed between the various public services. The RSA public service, as the largest of the eleven, largely influenced the generally prevailing terms and conditions of service. A considerable diversity, however, existed between the occupation specific or job-related conditions of service contained in the different personnel administration standards (PAS's).

The self-governing territories (SGT) largely utilised the personnel administration standards applicable to the RSA public service. Minor adjustments were necessary to existing PAS's and a few new PAS's had to be developed for functions unique to the self-governing territories.

In the case of the independent (TBVC) states, marked disparities existed in the occupation specific conditions of service, especially in the Transkei and Bophuthatswana. These states did not issue personnel administration standards for specific classes and groups of personnel, but functioned on the basis of general circulars, authorising various aspects of conditions of service. Venda and Ciskei did, however, issue personnel administration standards largely based on those of the RSA public service. There were, nevertheless, some significant differences between the different public services.

These disparities can be summarised as follows:

The rationalisation of those conditions of service focused on occupation-specific dispensations, which were distributed over a large number of personnel administration standards and circular minutes with varying degrees of disparity and complexity, constituted a major undertaking. The task was facilitated, or exacerbated, by the availability, or lack, of detailed information on all these aspects. The impact of parity measures on those officials enjoying higher conditions of service than the norm, which were not protected by the Interim Constitution, was highly sensitive and traumatic. The expectation amongst large numbers of public servants was that rationalisation of conditions of service implied translation to the best obtaining within the eleven public services, while the Constitution had, in fact, set the criterion as that which was generally prevailing. There was therefore bound to be a degree of disillusionment as the rationalisation of conditions of service unfolded.

5. AMENDMENTS TO LEGAL INSTRUMENTS

Preparatory work aimed at bringing about uniformity in terms and conditions of service was initiated some months before the commencement of the Interim Constitution, the final draft of which became available in December 1993. Project teams from the secretariats of the various service commissions led the work.

The establishment of uniformity in terms and conditions of service of general applicability went hand in hand with the drafting and proclamation of a new set of basic legal instruments pertaining to the public service. This included the Public Service Act and Regulations, the Public Service Labour Relations Act, the Pensions Bill and Rules, and the Public Service Staff Code.

In the light of the Constitutional directive that uniformity in terms and conditions of service should be established on the basis of those generally prevailing, the prescripts regulating the RSA public service were used as the model for the new, unified public service as it was by far the largest of the eleven public services. The availability of a model to work from, and the fact that the task consisted of the adjustment and augmentation of existing prescripts rather than the denovo creation of prescripts, obviously facilitated the task. However, the task was still one of considerable magnitude and complexity. The prescripts of all public services had to be fully reviewed in order to identify discrepancies and develop measures to remedy the situation. The RSA prescripts had to be systematically checked to establish where adjustments were required in terms of the provisions of the Interim Constitution.

The process of establishing a uniform set of basic terms and conditions of employment was obviously a task of the highest priority, especially in view of the potential instability that continued disparities could cause. Substantial demands were therefore made on the Commission for the urgent and almost simultaneous proclamation of the legal prescripts.

These instruments were proclaimed as follows:

TABLE 8: PROCLAMATION OF LEGAL INSTRUMENTS
Public Service Act, 1994 3 June 1994
Public Service Regulations 10 June 1994
Public Service Staff Code 10 June 1994
Public Service Labour Relations Act, 1994 11 June 1994

A new Pensions Bill and a new set of Pensions Rules were issued considerably later -see below.

As far as terms and conditions of employment of general applicability were concerned, a number of noteworthy amendments and additions were made. These are summarised below.

5. 1 Public Service Act, 1994

The following provisions were of particular importance:

5.2 Public Service Regulations

A comprehensive new Chapter (Chapter K) of the Regulations was promulgated, prescribing the procedures to be followed in cases of misconduct, and assuring an officer charged of the due process of law.

5.3 Public Service Staff Code

Significant amendments effected are summarised below:

5.4 Public Service Labour Relations Act, 1994

In terms of the Act, and in line with the relevant Constitutional provisions, full labour rights were extended to all members of the new public service. Previously only public servants in the Republic of South Africa had enjoyed full labour rights. A significant innovation was the provision made for a bargaining chamber at provincial level, in addition to bargaining chambers at national level and in individual departments.

Although uniformity in terms and conditions of service, with the exception of pensions, had been established in June 1994, remnants of gender inequality and the distinction between officers and employees remained. It was abundantly clear that these issues would have to be addressed at the earliest possible opportunity.

6. STATUTORY MANDATE

The establishment of uniformity in occupation specific or job related terms and conditions of service required a different approach and followed its own particular course.

The legal mandate given to the Commission, included the power to -

For purposes of applying the '"generally prevailing'' criterion, the Commission was required to take into account the percentage of persons in a class or group to which a term or condition of service is applicable. The Commission was prohibited from changing a term or condition of service contained in a specific contract which differed from that generally applicable in the public service in terms of a law.

Save for a transitional period of six months, and subject to the guarantees on certain terms and conditions of service contained in the Interim Constitution, the Act specifically excluded public servants from the right to retain a term or condition of service more favourable than that which had been determined as being uniformly applicable.

The task of attending to the rationalisation of personnel administration standard and developing proposals to achieve uniformity in the particular category of conditions of service was entrusted to a project team of the Commission. The collection of detailed information on the dispensations applied in the eleven former public services constituted a major part of the project team's assignment. It commenced in March 1994 and took the best part of four months to complete. The collection of information was complicated by the absence of personnel administration standards in some of the independent states; by inconsistencies between the information contained in documents and that reflected in payrolls; and by differences between information provided verbally and that contained in official documents. Steps were taken to verify all the information collected as far as possible.

To enable the Commission to comply with the injunction in the Public Service Act to take into account the percentage of persons in a class or group to whom a condition of service was applicable, a head count, followed by the calculation of percentages, was done in all occupational classes found in the eleven public services. The exercise was based on the payrolls of the various public services and encompassed 46 major occupational families, incorporating over 300 occupational classes. The highest percentage of staff in a particular occupational class enjoying the same dispensation was, with few exceptions, found in the RSA public service. Based on the findings of the project team, the Commission formally decided to establish the occupationally related dispensations of the RSA public service as the uniform conditions of service. It was necessary to effect amendments to the contents of some PAS's to extend applicability, or to iron out minor discrepancies in secondary provisions and measures. It was also necessary to abolish a few of the existing RSA occupational classes as the functions were covered by other occupational classes, and to create some new occupational classes in order to accommodate personnel performing functions not previously performed by the RSA public service.

Having determined the occupational classes and related personnel administration standards, it was necessary to develop a practical framework to translate individuals to the norm dispensations which had been established. The key to translation lay in linking existing post classes (Accounting Clerk, Senior Bookkeeper, etc) and the associated salary scales, to the uniform post classes and salary scales. To ensure an acceptable degree of validity in the linkages, it was necessary to determine as reliably as possible the functional content of a particular post class designation. What, for example, did a Chief Accounting Clerk in any particular independent state do, and how did his or her job compare with the functional content of the norm post class? It was also necessary to compare, as far as possible, indicators of job level, such as appointment and promotion requirements. Given the deficiencies in available information, the task was fraught with complexities.

A comprehensive schedule of post classes and associated salary scales covering all eleven public services was compiled by the Commission. This was a bulky document of 257 pages. A draft was made available to members of the project team as well as representatives of the new national departments and provincial administrations, and finally revised and adjusted in the light of their comments. The document was to be a key instrument in effecting the translation of public servants to the uniform dispensations.

At the same time a comprehensive set of translation measures was developed. These measures prescribed how in the case of each individual official the appropriate occupational class and translation level was to be determined, followed by the determination of the appropriate salary scale and salary notch, rank designation, incremental date and seniority date. The prescripts covered in detail every possible variation in an individual's situation in relation to the applicable norm. Special provision was made for the "recalculation" of an individual's position where, in terms of the relevant personnel administration standard, he or she would qualify for a more favourable position if he or she were to be appointed to the public service de nova Provision was also made to accommodate an individual who was performing work at a particular level, but who did not possess the prescribed educational qualification. As in the case of the schedule of post levels and associated salary scales, the translation measures were made available in draft form to members of the project team and representatives of national departments and provincial administrations, and finalised in the light of their comments and suggestions.

The payment of higher remunerative and compensatory allowances in the TBVC states created some problems. There were over 100 such allowances paid and the cash values of the allowances varied from less than Ri 000 per annum to over R25 000 per annum in extreme cases. In terms of the applicable rationalisation provision in the Public Service Act, 1994, these allowances could not be retained by the recipients as a right. At best, the Commission could recommend or direct that a non-uniform allowance be retained for a period of six months.

7. NEGOTIATIONS

Negotiations between the State as employer and the recognised employee organisations on the rationalisation of terms and conditions of service took place over a period of months in 1994. In the first round of negotiations prior to June 1994, agreement was reached on the uniform general terms and conditions of service as contained in the draft Public Service Act, Regulations and Staff Code as well as the draft Public Service Labour Relations Act. The relatively smooth passage of the draft documents through the negotiating process can be ascribed to a number of factors -

Negotiations concerning the occupation-specific or job-related conditions of service took place at a number of meetings of the central Chamber of the Public Service Bargaining Council during the period July to September I 994. Again, due to the application of the "generally prevailing" criterion, and the essentially technical nature of the proposals to achieve uniformity, the proposed uniform battery of personnel administration standards, together with the associated dispensations and the set of translation measures, had a relatively easy passage through the bargaining process. A major difficulty arose, however, concerning the resolution of the TBVC allowances. Substantially different positions were taken amongst the employee organisations themselves. One group of organisations pressed for the retention of the allowances on a personal basis or, at least, a phased reduction of the allowances against future salary increases, thus avoiding a nett reduction in remuneration. Another group of organisations felt strongly that they could not justify to their members the continued existence of discrepancies in the dispensations of officials performing the same work. A threatening impasse, which could have had serious implications for labour relations, was avoided by an unusual turn of events in which the employee organisations tacitly agreed that the matter could be resolved by the State within the context of rationalisation and the special legal provisions regulating it. Subsequently, the Cabinet decided that all unauthorised allowances would lapse, while the cash values of allowances at variance with those generally prevailing would be brought into line with the uniformly applicable values. In both cases, a generally applicable period of grace would apply. The Cabinet ruling on allowances came into effect on 1 April 1995.

8. UNIFORMITY MEASURES

The new uniform dispensations were implemented by means of a circular minute issued by the Commission in September 1994. The departments and administrations were authorised to effect the translation of all personnel to the uniform dispensations, excluding the management echelon, which was effected by Commission itself.

The uniform personnel administration standards and associated dispensations could not be implemented prior to 10 June 1994, the date on which the Public Service Act, 1994, had been proclaimed. However, the Commission recommended as a special measure that in respect of a person in service since I May 1994, the revised dispensation be applied to him or her with effect from that date, or the actual date of appointment if it fell between 1 May and 10 June 1994.

The uniform dispensations authorised by the Commission did not apply to educators or to former homelands personnel engaged in the auditing, postal or telecommunications functions. Establishing uniform dispensations for educators was 66 the responsibility of the Minister of Education, and was a matter to be dealt with in terms of education legislation and by the bargaining structures specially created for educators. The Commission endeavoured, with the co-operation of the education authorities, to ensure a broad uniformity in approach. The auditing, postal and telecommunications personnel in homelands functions were members of the public service, while in the Republic of South Africa the corresponding personnel were not public servants. Special arrangements and measures had to be developed to accommodate these personnel in the auditing, postal and telecommunications institutions of the new South Africa. The Commission worked with the AuditorGeneral and the Minister of Posts and Telecommunications in facilitating the absorption of the personnel in the new institutions.

The circular minute of September 1994 requested heads of national departments and provincial administrations to ensure that the implementation of the uniform dispensations was finalised by 31 October 1994. To facilitate implementation, the Commission directed that management teams be set up to oversee the process in three main categories, uniform personnel of the National Defence Force, the Police Service and Correctional Services; personnel in occupational classes associated with the line function of a specific national department; and personnel in occupational classes which were utilised generally by national departments and provincial administrations. Guidelines for the setting up of management teams were provided. The Commission's Office would monitor the process, and officials from the Office were available to advise management teams, should problems arise in the interpretation of the translation measures.

9. SUPPORT INITIATIVES

Although the Commission was not directly involved in or responsible for the actual implementation of the uniform dispensations, it did act on a number of occasions to support the process:

Notwithstanding the detailed instructions issued and the back-up assistance provided by the Commission's Office, implementation was fraught with difficulties.

The implementation proceeded well into 1996. In view of the potential of labour instability ensuing from the continuation of disparities, the President wrote to a number of Premiers in March 1995, followed by an appeal for urgent finalisation addressed to heads of departments and administrations by Executive Deputy President Mbeki in February 1996. By the end of April 1996, the implementation of the uniform dispensations in seven national departments and five provincial administrations were still outstanding.

10. PENSIONS RATIONALISATION

Next to salary, the most important condition of service of a public servant is probably the provision made for a pension on his or her retirement. Prior to rationalisation, the position regarding pension provision in the former eleven public services was as follows:

There were thus ten funds in all. The largest fund by far in terms of both membership (approximately 649 500 as at 31 March 1995) and assets (approximately R51 000 million as at 31 March 1995) was the Government Service Pension Fund of the RSA. The benefits offered by this fund were therefore the ones generally prevailing. Achieving uniformity in the pensions areas thus in essence entailed the rationalisation of the nine smaller funds with the Government Service Pension Fund, with whatever adjustments were required in the light of the applicable provisions of the Interim Constitution.

The Interim Constitution had provided certain guarantees protecting the accrued pension benefits and retirement ages of public servants. The Interim Constitution further stipulated that provision should be made by law for a pension for a member of the public service by means of a pension fund or pension funds established by law. The latter stipulation was an extremely important one, by implication ruling out the possibility of paying pensions to retired public servants from current State revenue, the so-called "pay as you go" system, as an alternative to a pension fund. The Constitution finally stipulated that public servants who were members of a pension fund would be entitled to fair representation on the body which managed the fund.

Although the Constitutional provisions allowed for the establishment of more than one fund, possibly on the basis of the previously existing distinctions between permanent and temporary officials, the basic values underlying the Interim Constitution and articulated specifically in the chapter on fundamental rights, provided a clear pointer for moving towards a unified provision. Particularly pertinent in this connection were the Constitutional guarantees on equality before the law and fair labour practices.

The magnitude, complexity and sensitivity of the rationalisation of the pensions funds was such that, on the advice of the Commission, a special pensions task team was assembled to investigate and make proposals on the rationalisation. The team was co-ordinated by the Commission and consisted of persons representing the recognised employee organisations and the State, both as employer and pension authority, as well as an actuary and a number of experts from the private sector. The team commenced its work in September 1994 and submitted its final proposals in September 1995, including a draft Pensions Bill and a comprehensive set of rules to regulate the proposed new fund. The Bill and rules were submitted for comment to four of the largest administrators of pension funds in the private sector, as well as to the Financial Services Board and the Public Investment Commissioner.

The proposals of the pensions task team, as contained in the draft Bill and rules, provided for -

The proposals of the task team were formally accepted by the Public Service Bargaining Council in October 1995. The Bill was enacted by proclamation of the President in April 1996. A set of rules for the administration of the Fund was proclaimed at the same time.

Costs to establish uniformity in terms and conditions of service, excluding project and administration costs, were incurred. On a full year basis, these costs amounted to approximately R390 million, and represented the costs of bringing persons in receipt of weaker dispensations on a par with those generally prevailing. The rationalisation of pension funds did not involve additional expenditure for the State but, indeed, a saving, as the new funding arrangements required a uniform rate of contribution by the employer generally lower than the rates which had previously obtained.

11. EVALUATION

Terms and conditions of service are obviously of great importance to every public servant. Given the requirements of public accountability and the particular emphasis placed on the fair, reasonable and consistent treatment of all public servants, the terms and conditions of service are spelt out in considerable detail in a variety of legal prescripts. To fashion an acceptable, uniform set of terms and conditions of service for a new public service constituted by the amalgamation of eleven public services, each with varying degrees of disparity, was therefore a particularly complex and sensitive part of the rationalisation process.

In retrospect, the Commission considers that the accomplishment of the task was facilitated by five factors: the clarity of the provisions of the Interim Constitution; the clear mandate given to the Commission in the Public Service Act, 1994; the sound preparatory work which was done; the successful marshalling of available expertise within and outside the public service; and the co-operative relationship between the employer and employee organisations in seeing a complex, sensitive and urgent task through to completion. The implementation of uniform terms and conditions of service in two major steps, the first simultaneously with the proclamation of the new Public Service Act in dune 1994, and the second three months later, stands to the credit of all those who participated in the work. Although the rationalisation of pensions took somewhat longer to accomplish, the Commission considers the outcome positive, representing as it does a major step forward in the administration of the public service.

The delay on the part of certain departments and administrations in finalising the translation of officials to the uniform dispensations was understandable, given the magnitude, complexity and sensitivity of the task at hand. The Commission records that meeting the requirements of the transition, while at the same time maintaining essential services, placed substantial and unusual demands on departments and administrations, especially because the translation exercise was such a technically involved process.

Until such time as the Public Service Act, 1994, could be rewritten, this distinction was eliminated by an overriding amendment to the Act in April 1996, mandating equal treatment for officers and employees.

CHAPTER 6

STAFFING THE RATIONALISED STRUCTURES


I. INTRODUCTION

The Interim Constitution required that previously existing public executive institutions be rationalised with a view to establishing effective administrations at both the national and provincial levels of government within the new unified public service. The Commission interpreted the Constitutional directive to imply two major steps: the setting in place of rationalised organisational structures and the staffing of the rationalised structures. Only in this way could effective administrations come about. The object of this part of the rationalisation of public administration was therefore the staffing of the rationalised structures of the new public service.

Although all serving public servants had been absorbed into the new public service in terms of the Constitution and the Public Service Act, 1994, their precise placement within the structures of the new public service still had to be determined. Bearing in mind the extent of organisational rationalisation implicit in the new Constitutional dispensation and the number of public servants involved, some 1,2 million, the magnitude of the staffing of the rationalised organisational structures can be appreciated.

Apart from the magnitude of the process, it was also clear from the start that staffing would be a highly sensitive and, in certain respects, a decidedly contentious matter. A number of key considerations would make it so.

2. STAFFING IMPIICATIONS

In the first place, although the Constitution stipulated that all serving public servants would continue in service, there was reason to expect that, because of the former proliferation of public services and institutions, there would be a greater number of people in the employ of the new governments than were realistically required to ensure effective administration and provision of services. The probability of situations of redundancy arising, with serious implications for the careers and personal lives of many thousands of public servants, had to be faced. Indeed, staffing would have to be approached on the assumption that the size of the public service was a problem. Logically, it was to be expected that, because of the duplication of corporate structures, a good deal of redundancy could occur at managerial level, that is to say at the level where committed and motivated leadership would be required to facilitate the entire rationalisation process.

Secondly, although serving public servants were not given a guarantee of job security in the public service, contrary to a popular interpretation of the Interim Constitution, they were given the assurance that their future employment would be subject to the Constitution and other laws regulating their employment. They could therefore be retrenched, but only by due process of law. The "law" in this instance would go beyond the Public Service Act, and indeed include the Constitution itself. The fundamental rights protected by the Constitution would obviously also apply to the employment of public servants, including the right to procedurally fair administrative action and the right to fair labour practices. The expectation that universal labour rights would be protected had become established amongst serving public servants, and in this expectation they were supported by the employee organisations.

Thirdly, staffing would have to acknowledge, and indeed actively foster, the type of public service which the Interim Constitution had projected as an ideal. This included adherence to the Constitutional imperative that the public service should be broadly representative of the South African community. While requiring broad representativeness in the composition of the public service, and stipulating that the public service shall be accessible to all South African citizens, the Constitution also retained the merit principle by further stipulating that in the making of any appointment or the filling of any post, the qualifications, level of training, merit, efficiency and suitability of qualifying candidates were to be taken into account. The Constitution went on to provide that the application of the merit principle would not preclude measures to promote representativeness. Clearly, staffing would also have to be approached with a view to creating meaningful capacity for the promotion of representativeness, while at the same time addressing the problem of size.

Finally, the staffing of the rationalised structures would take place in a psychological and emotional "climate" in which, on the one hand, a great many serving public servants were deeply concerned about their jobs and prospects in a radically changed dispensation, while, on the other hand, large numbers of people who, because of circumstances or personal conviction, had not joined the public service previously, cherished the hope and expectation of being admitted to the new public service.

The magnitude of the staffing task at hand, the obvious sensitivity surrounding it, the finely balanced Constitutional directives to be adhered to, the objectivity and circumspection required in balancing the fears and expectations of a great many people, would place great demands on the Commission as the body charged with providing leadership in the staffing process, as well as on the employing departments and administrations responsible for carrying the process through to its completion. There would clearly also be a need for thorough consultation with the recognised employee organisations.

As was the case with all the major aspects of rationalisation, the staffing of the rationalised structures was a matter demanding priority attention. The public service is too important and too sensitive a factor in the national life to be subjected to an indefinite or even extended period of uncertainty. In the interests of the effective provision of services, it was essential for the public service to put the trauma of its restaffing behind it at the earliest possible date. However, the staffing of a new department or administration could not commence until its organisational structure had been determined. To the extent that there was a delay in finalising organisational structures, the staffing process would become increasingly urgent.

3. APPROACH TO STAFFING

To facilitate the staffing process and to ensure its accountability, it was necessary to put in place appropriate regulatory measures. Although the Constitution and the Public Service Act contained the principles and basic directives to be applied and followed, the particular provisions were by no means adequate in themselves to guide the staffing actions that were to be taken.

After much internal debate and reflection, the Commission was convinced that the ideal approach to be followed was essentially one which would balance experience with reward through the improvement of representativeness without having to increase the size of the Public Service. The Commission saw the following as the key factors to be considered:

On the basis of the aforementioned key factors that it had identified, the Commission approached Cabinet in November 1994 with a view to obtaining an employer's viewpoint concerning the staffing process. In its role as adviser to the Government of the day, the Commission pointed out the key considerations bearing on the matter, and expressed the opinion that -

The Commission proposed to Cabinet that an approach based on its opinion expressed above be followed. The Commission indicated that the option to retire prematurely should be restricted to of ficials in promotion posts of Assistant-Director and higher graded posts, who had attained the age of 50 years. Cabinet accepted the Commission's proposals, clearing the way for the preparation and submission to the Central Chamber of the Public Service Bargaining Council of a fully developed set of measures to guide and regulate the staffing process. Prior to such submission, and in the process of developing the measures, extensive consultation took place with departments and administrations. As was to be expected, the matter elicited-the closest attention of the employee organisations and was consulted on in the Public Service Bargaining Council in a series of meetings starting at the end of November 1994, continuing well into December 1994. The measures, adjusted in the light of agreements reached in the Council, were encapsulated in a special chapter of the Public Service Staff Code and issued by the Commission as the national norms and standards regulating the matter on 23 December 1994.

4. CHAPTER B (SPECIAL)

Chapter B (Special) of the Staff Code, consisting of a main text and five annexures, contained all the measures required to

The measures were of an interim nature and would lapse once their purpose had been served. Initially, the date of expiry was set at 30 April 1995, but the date had to be extended a number of times to afford departments and administrations more time to complete the related process of organisational rationalisation and staffing. Chapter B (Special) finally lapsed on 28 February 1996.

Although the interim staffing measures are of historical importance, a full discussion of their contents is not possible within the confines of this report. Certain key aspects are, however, highlighted in the paragraphs which follow.

The opportunity to request early retirement was made available to eligible officials on a completely voluntary basis. The initial eligibility criterion of 50 years of age was augmented by an alternative of 30 years uninterrupted service prior to implementation. Discretion was formally vested in the head of department or administration to grant or refuse an official's request or, in the case of of ficials in the management echelon whose retirement required a recommendation of the Commission, to support or not to support the request. In a subsequent amendment, heads of departments and administrations were enabled to reduce the impact of the loss of an experienced official by "negotiating" an extended notice period with the official, but with such period not to exceed eighteen months. In those cases requiring a recommendation of the Commission, the Commission without exception furnished a recommendation where the application had been supported by the head of the department or administration. As part of the measures regulating the matter, departments and administrations were specifically enjoined to utilise the capacity created by early retirements to reduce the size of the public service.

The responsibility for dealing fairly and reasonably with serving officials was placed with executing authorities and their heads of department. They were required to accurately review their overall personnel situation and needs, to take stock of the available competencies and experience of serving officials, and to consider to what extent it would be in the interests of the department or administration, and the public service as a whole, to continue utilising the human resources already employed. To ensure accountable decisions, a comprehensive management plan had to be drawn up and implemented. Where the actual work content of a post had not changed, or changed significantly, serious consideration was to be given to the absorption of the serving official. After the available human resources had been thoroughly considered, a determination could be made of the actual and compelling need to effect transfers, promotions and appointments in order to promote representativeness. The promotion of a more representative public service was to be viewed as a process to be managed with sensitivity. Provision was made for the employment additional to the establishment of serving officials who could not initially be suitably absorbed in the rationalised structures, for a period not exceeding six months, pending further concerted efforts to absorb them. At the request of an official, absorption could be effected with a translation in rank or a one-level reduction in rank. Only after all possible efforts at absorption had proved to be fruitless was an official to be retrenched.

5. RIGHT SIZING

Measures aimed at containing the size of the public service, which had been adopted by the Government of National Unity in May 1994 and to which reference has already been made in the discussion of establishment control in Chapter 4 of this report, were incorporated in the interim staffing measures. A vacant post could be filled only if one or more of the following criteria could be satisfied -

The measures further stipulated that, in the case of a post on or above the level of Assistant Director, the filling of the post had to be approved by the executing authority personally. The filling of lower graded posts had to be approved by the head of department or administration.

6. POLICY ON REPRESENTATIVENESS

At about the same time as the interim measures for the staffing of the rationalised structures were being developed, the Commission also developed a policy framework for the promotion of a broadly representative public service. As affirmative action was implicit in the Constitutional provision requiring a broadly representative public service, it is appropriate to deal briefly with this development in the context of rationalisation and the interim staffing measures discussed above.

The draft policy framework for the promotion of representativeness was cleared with the Cabinet early in December 1994. It was thereupon tabled in the Central Chamber of the Public Service Bargaining Council at an extraordinary meeting of the Chamber, for purposes of consultation between the employer and employee sides. Consultations were protracted, occupying a period of roughly two months, and included the activation of a technical committee to do an in-depth analysis of the content and implications of the proposed policy framework. The draft framework was cleared by the Bargaining Council, with a number of textual amendments, towards the middle of February 1995. The draft framework was in general well received by the employee organisations but they required that the employer spell out specific measures and actions to be taken. The Commission's view, adopted by the State as employer, was to promulgate a broad policy framework within which departments would develop specific programmes, plans and measures of affirmative action. The policy framework was promulgated into a new chapter of the Public Service Staff Code, Chapter B VII, and issued by the Commission as the national norms and standards regulating affirmative action early in March 1995.

6.1 Chapter B VII

Chapter B VII of the Staff Code, under the title "Promotion of a public service which is broadly representative of the South African community", linked affirmative action to the Constitutional provisions concerning the public service, and went on to lay down a number of basic guidelines to be followed in striving for a broadly representative public service. Some noteworthy aspects of the general approach espoused by the Code were -

The Code proceeds to spell out the respective roles of the Public Service Commission, provincial service commissions, and departments and administrations in promoting a broadly representative public service. The chapter in the Code has been augmented by two important annexures, one containing a synoptical discussion of relevant provisions of the Interim Constitution, and the other prescribing the institution of departmental programmes of affirmative action, and specifying the criteria to which such programmes must conform.

To clear the way for affirmative action, it was necessary to introduce an appropriate measure whereby the operation of the career principle contained in section 11(2) (b) of the Public Service Act, 1994 could be suspended, where necessary. The particular section provides that in the filling of a post in the A division of the public service, preference shall be given to the transfer or promotion of an officer or, if the post cannot be satisfactorily filled in either of these two ways, to the appointment of a person who is not an officer. This long established rule, embedded in the career principle, potentially constituted a serious obstacle to progress with affirmative action. To prevent such a development, the Commission advised Government that it would be necessary to empower the Commission by law to override the provisions of section 11 of the Public Service Act where necessary, in order to promote the Constitutional objectives of addressing broad representativeness. Cabinet approved this override and an amendment of the Act was proclaimed by the President in December 1994.

7. STAFFING THE RATIONALISED STRUCTURES

To enable departments to become operational, the actual staffing of the rationalised structures could in principle only commence as and when such structures were authorised by the Commission, or a provincial service commission in the case of a provincial administration. The staffing process commenced in the early part of 1995, continuing into 1997.

The Commission itself was only involved in a small percentage of the actions necessary to staff the rationalised structures. In terms of standing delegations by the Commission, departments were, with few exceptions, empowered to staff their new structures below management level. In the provincial administrations, the staffing process, including the management echelon, was overseen by the newly established provincial service commissions. The number of management echelon posts constituted less than 1% of the total post establishment at the national level of government. However, the fact that all posts were considered "new posts" and had to undergo a distinct staffing action, coupled to the fact that departments tended to open relatively large numbers of posts to meet the requirement of equal opportunities and access to competition to employment in the Public Service, resulted in a very substantial volume of work for the Commission and its Office. In terms of standing policy, all posts in the management echelon not filled by absorption had to be advertised within and outside the public service. All such advertisements were required to be co-ordinated and placed by the Commission's Office.

The volume of work involved in the advertising of managerial posts, followed by the processing of departments' nominations, was truly exceptional. The demands placed on the Commission's Office in this respect were intensified by many additional responsibilities arising from the unification of the public services, but even more by the inescapable commitment to conscientiously apply the law and other policy prescripts to departments' nominations and the associated elimination of candidates. To bring the task within manageable proportions, and to eliminate delays in the filling of posts, the Commission in October 1995 increased its delegations to departments as an interim measure. Steps were also taken to devolve the advertising of posts to departments, an arrangement which was finally accomplished on 1 April 1996.

On a number of occasions, the Commission was approached by departments with requests to fill vacant managerial posts in the organisational structures which they had inherited from the previous dispensation, in other words prior to the authorisation of their rationalised organisational structures. Where it was clear to the Commission that a department could be seriously prejudiced by not filling an existing managerial post, it agreed to its filling on condition that the department satisfied itself that the post-rationalisation situation was unlikely to be affected by this.

With regard to the filling of posts of Director-General at national and provincial levels, Cabinet concurred that open competition through advertisement was the fairest and most equitable route to follow. Of the 27 new posts of Director-General established at the national level, 15 (or 55%) were filled by the appointment of serving officials who had been Directors-General in the former dispensations. At the provincial level, one of the newly appointed Directors-General had been a Director-General in the former dispensation whilst eight were new appointees. Overall, at national and provincial levels, some 44% of the new posts were filled by the appointment of serving officials already on the grade of Director-General. Two serving officials were reappointed in lower graded posts, with retention of full benefits. The remaining of ficials on the grade of Director-General were retired with appropriate severance packages.

An indication of the progress made towards achieving a higher level of representativeness at the level of Director-General is provided in the table below. All the Directors-General of the public service of the former RSA were White males, whereas by 1 September 1996 the Black, Asian and Coloured population groups occupied 54%, or 25 of the 46 posts.

TABLE 9: RACE AND GENDER PROFILE OF
DIRECTOR-GENERAL APPOINTMENTS AS AT 1 SEPTEMBER 1996

Black/African

Asian/Indian

Coloured

White

TOTAL

Male

Female
Directors-General *

19

2

4

21

46

44

2
Percentage

41

4

9

46

100

96

4
National Population**

76

3

8

13

100

49

51
* Source: Department of Public Service and Administration
** Source: Central Statistical Service: Mid l99S estimates (percentage)

The currency of the interim staffing measures was extended on three occasions by the Commission. In consultation with Cabinet, a final extension was approved in December 1995, fixing the expiry date as 28 February 1996. To accommodate departments and administrations unable to finalise the staffing of their rationalised structures by 28 February 1996, the Commission extended the continued application of the measures to individual departments or administrations. Seventeen such requests were received and granted by the Commission.

8. PROGRESS ON REPRESENTATIVENESS

The Commission monitored the progress made with the staffing and representativeness of the rationalised structures on a monthly basis as from November 1994. The Commission's monitoring action extended to approximately 760 000 posts. Excluded from this were some 469 000 posts in education, police, defence and national intelligence. As at 1 June 1996, the progress report covered only approximately 290 000 (38%) of the total of 760 000 posts to be monitored.

By June 1996, 161 691 (55,7%) of the 290 000 posts had been filled. A breakdown of these posts indicate that 43,3% of the posts had been filled by Black candidates, followed by ~,5,5% White, 2O,0% Coloured and 1,2% Asian. 97,1% of the posts had been filled by the absorption of serving officials, and 2,9% by the appointment of persons from outside the public service. 54,5% of the incumbents of the newly filled posts were male and 45,5% female. These figures are based on 21,3% of the actual number of rationalised posts, and reflect trends in the management echelon, as posts were filled from the top of the structures.

The Commission developed a database to record progress to achieve a public service broadly representative of the South African community. A number of problems were encountered in compiling the database with regard to the accuracy of information provided by departments, particularly due to the sensitivity of collecting data according to race. Table 10 opposite nevertheless provides some noteworthy trends.

9. STATUTORY REVIEW BODIES

The Interim Constitution provided for a I'residential Commission to review improper appointments, promotions or financial gain of public servants that took place one year before the commencement of the Interim Constitution, i.e. 27 April 1993, up until 30 September 1994. Theoretically, the provision also applied to the staffing of the rationalised structures of the public service. However, since staffing of rationalised structures only commenced after 30 September 1994, such actions were in practice excluded from the competence of the Presidential Commission.

The Interim Constitution also made provision for the establishment of the Labour Appeal Court Sitting As A Special Tribunal to adjudicate claims or disputes of right arising from the implementation of the Constitutional provisions dealing with transitional arrangements and the rationalisation of public administration. The Court was required to adjudicate claims and disputes in terms of the laws regulating the employment of public servants as at 1 November 1993 and its decisions would be final and binding. The special provision made for the adjudication of claims and disputes, was to have lapsed one year after the commencement of the Constitution. However, in the light of the delays in completing rationalisation, an extension was promulgated to 31 December 1998 in respect of the National Defence Force, and to 27 April 1996 in respect of the rest of the public service. As at 30 June 1996, no claim or dispute of right arising from the staffing of rationalised structures had been submitted to the labour appeal court for adjudication.

TABLE 10: REPRESENTATIVENESS IN THE PUBLIC SERVICE: 30 NOVEMBER 1996

Salary Grading Percentage

Black/African

Asian/Indian

Coloured

White

TOTAL

Male

Female
Lower skilled

223503

5007

25336

17063

270909

159611

111298
Percentage

83

2

9

6

100

59

41
Skilled

196130

11115

28933

72753

308931

152815

156116
Percentage

63

4

9

24

100

49

51
Highly skilled production

323285

21952

53564

158336

557137

258153

298984
Percentage

58

4

10

28

100

46

54
Highly skilled supervisor

11717

1643

2282

19262

34904

27296

7608
Percentage

33

5

7

55

100

78

22
Management*

1156

116

92

2275

3639

3251

388
Percentage

32

3

2

63

100

89

11
Senior Management**

165

12

14

127

318

287

31
Percentage

52

4

4

40

100

90

10
TOTAL

755956

39845

110221

269816

1175838

601413

574425
Percentage

65

3

9

23

100

51

49
National Population***

76

3

8

13

100

49

51
*Director and Chief Director
**Deputy Director-General and Director-General
***Source: Central Statistical Service: Mid 1995 estimates (percentages)

10. EVALUATION

Bearing in mind that every national department, office and service, and every provincial administration brought into being by the new Public Service Act on 10 June 1994 was a new structure, and each post in every post establishment was a new post to be filled by a discrete staffing action, the staffing of the rationalised structures of the public service was, and continues to be, a vast undertaking. An already daunting task of huge proportions was made even more demanding by the need to complete it as quickly as possible in order to maintain stability and avoid serious dislocation of essential services. The three fundamental issues to be addressed in the staffing action: responsible handling of the position of serving officials, promotion of representativeness, and containment of the size of the public service, are issues which do not resolve themselves automatically or fortuitously. A conscious effort was, and is still, required to ensure a reasonable and publicly accountable outcome.

The Commission is of the opinion that the substantial policy development which preceded the staffing action, and which culminated in the issue of the interim staffing measures and a comprehensive framework for achieving broad representativeness, was a major contribution. Success in this area can be ascribed in large measure to the scope and quality of the consultations which took place at political level, with departments and administrations, and decisively in the Public Service Bargaining Council. No less important was the care taken in ensuring the technical detail and utility of the policy instruments which were developed.

Substantial progress has been made in the filling of posts in the rationalised structures. According to information supplied by the Department of Public Service and Administration, approximately 82% of the approved posts had been filled by February 1997. It is, of course, not intended to fill all these posts because a considerable number are being identified for abolition as part of the right-sizing process.

Although the failure to complete the staffing action within one year of the commencement of the Interim Constitution could be seen as cause for concern, there are a number of factors to be borne in mind. At the commencement of the rationalisation process, it was perhaps not fully appreciated that the staffing action here reported on could commence only adder rationalised structures had been put in place for the new departments and administrations. The nature of the process was also such that it had to be handled throughout with thoroughness, circumspection and sensitivity in order to ensure legality, acceptability and the highest possible degree of accountability. Inevitably, these considerations tended to influence the time spent on the process. Finally, every department and administration, in varying degrees but virtually without exception, was handicapped by a shortage of experienced and skilled heads of personnel. In addition, many of the departments and administrations covered in the Commission's monitoring action were large by any standard: seven of the national departments had in excess of 5 000 employees; five of the nine provincial administrations had more than 50 000 employees.

All things considered, and on the assumption that the staffing action will be completed early in 1997, the Commission is of the opinion that the completion of a vast, complex and sensitive task effectively within a period of about two years will represent a substantial achievement of the new government at both national and provincial levels.

CHAPTER 7

MANAGING THE RATIONALISATION PROCESS


1. INTRODUCTION

The management of the rationalisation process placed particular demands on all public executive institutions, at both political and administrative levels. Discussion in this chapter is confined to important aspects of the Commission's involvement in the management of the process.

2. PLANNG

The problems of rationalisation were characterised throughout not only by the magnitude and technical complexity of the steps to be taken, but also by the very practical question of how best to proceed. A metamorphosis of epic proportions had to be accomplished; it had to be completed within a credible period of time; a great number of role players with divergent orientations and concerns would be involved; the delivery of services had to continue with minimal disruption while fundamental change was taking place; and the morale and confidence of both public servants and the public had to be maintained at an acceptable level. Clearly, some plan of action was required.

The Commission set itself the task of devising a broad plan of action which would identify the essential steps to be taken, and which would see the rationalisation process through to completion without compromising the orderly provision of essential services. The five main elements of the plan were as follows:

More information on the various main elements of the plan of action which was devised and implemented is contained in Chapters 2 to 6 of this report.

The Commission availed itself of every opportunity which presented itself to make known and elucidate the broad plan of action directing its rationalisation activities. This was done in various discussions with, or presentations to, the Minister for the Public Service and Administration and other Ministers, provincial Premiers, the Intergovernmental Forum, the Commission on Provincial Government, the Forum of Service Commissions, and Directors-General.

3. ORGANISATIONAL ARRANGEMENTS

The Commission did not institute special organisational arrangements to enable it to cope with rationalisation. Its collegial division of responsibilities, as well as the division of the activities of its Office, were based on broad subject areas, including especially government organisation, personnel structures and conditions of service, personnel management, training and labour relations. Wherever a subject matter responsibility vested, such responsibility in general encompassed both rationalisation and the day to day administration of the public service. An alternative approach would have entailed the setting up of a rationalisation unit operating apart from the normal organisational arrangements. The Commission was, however, of the opinion that it would be best able to discharge the full spectrum of its responsibilities by focusing its available expertise on broad subject areas. The Commission itself operated on a basis of three-member "sub-commissions", varyingly constituted, which concentrated on demarcated subject areas, but with all major policy and executive decisions referred to the full Commission.

Co-ordination of the Commission's rationalisation activities was effected by way of the weekly plenary meetings of the Commission, attended by the Director-General of its Office. Within the Office, co-ordination of activities was achieved by means of the standing structure of management committees headed by the DirectorGeneral. It should be emphasised that interaction between the Commission and its Office took place informally on virtually a day-to-day basis.

In line with Government policy that the size of the public service should be contained, and that control of post establishments should be intensified especially during the period of rationalisation, in respect of its own Office, the Commission took the position that while some internal adjustments could be made, the overall post establishment would not be increased. It goes without saying that the Commission's Office was subject to the same restrictive guidelines referred to in Chapter 6 regarding the filling of posts as other departments. Having to make do with existing resources, notwithstanding the large volume of additional and urgent work attendant on the Commission's key role in rationalisation, placed great demands on its Office. It was possible for the Office to cope only through the rigorous ranking of tasks in order of priority, through extraordinary dedication to duty, and by working long hours of overtime.

To extend the capacity of its Office, extensive use was made of project and task teams. These teams made an invaluable contribution, both in the collection and ordering of information, and in the development of solutions. Project and task teams were constituted predominantly from the ranks of serving officials in departments and administrations, but also with significant involvement, especially in the early months of rationalisation, of persons coming from the mass democratic movement. As far as serving officials are concerned, particular mention should be made of the personnel components of the service commissions of the former homelands, which for an interim period following the proclamation of the new Public Service Act, were constituted as sub-offices of the Commission's Office. The Commission did not find it necessary to make extensive use of external consultants for carrying out the rationalisation programmes and projects for which it bore responsibility. However, it did obtain valuable inputs from a specialist in public personnel administration attached in a general consultancy capacity to its Office.

4. INTERGOVERNMENTAL CO-ORDINATION

The new public service was constituted as a single, unified entity, but with its administration shared between the national and provincial levels in a Constitutionally specified manner. The Public Service Commission was charged with general responsibilities concerning the public service as a whole, and with specific responsibilities concerning the day to day administration of that part of the public service employed at national level. In addition, the Commission would be involved in the day to day administration of that part of the public service employed by a provincial administration until a provincial service commission was established, and on a permanent basis should such a commission not be instituted. Where a provincial service commission was instituted, the Public Service Commission would in general be excluded from the day to day administration of the particular segment of the public service. A provincial service commission was required to act within the law regulating the public service, and specifically subject to norms and standards applying nationally.

The Constitutional arrangements referred to placed the administration of the public service squarely within the general framework of intergovernmental relations. The Commission's unavoidable involvement in this area of public administration was focused particularly on three bodies, one formally established by the Constitution itself, and the other two arising from the day to day challenges which the Constitution had brought into being, and which, for its effective functioning, would require co-ordination and co-operation between governments. These were the Commission on Provincial Government, the Intergovernmental Forum, and the Forum of Service Commissions. The three bodies are discussed below from a Commission perspective, and with emphasis being placed on the rationalisation process.

4.1 Commission on Provincial Government

The Commission on Provincial Government was established by the Interim Constitution, with the object of facilitating the establishment of provincial government. One of the competences given to the Commission was ".... to advise the national government or a provincial government on the establishment and consolidation of administrative institutions and structures in a province ". In the section of the Constitution fixing responsibility for the rationalisation of the erstwhile governmental institutions, the national government was required to co operate ".... with the provincial governments and the Commission on Provincial Government, and with due regard to the advice of the Public Service Commission ...". In the chapter of the Constitution dealing with the administration of the public service, the Public Service Commission had been given the competence to make recommendations, give directions and conduct enquiries with regard to, inter alia, ".... the organisation and administration of departments and the public service".

Evidently, as far as the establishment and consolidation of administrative institutions and structures in the provinces and rationalisation in general were concerned, the Commission on Provincial Government and the Public Service Commission had been given similar and, in certain respects, practically identical competences. The apparent duplication of competences could have, but did not, become a substantial issue involving two Constitutionally established bodies. The issue was effectively and amicably resolved by mutual agreement between the two Commissions. At a meeting which took place early in August 1994, it was decided to co-operate fully as far as role fulfilment was concerned, and on a basis which was clearly spelt out. The two Commissions would strive to achieve and maintain optimum communication between themselves and between each Commission and the provinces; they would meet regularly; keep each other fully informed of their programmes; and furnish each other with copies of all written communications addressed to the provinces. The Commissions further undertook to co-ordinate visits to the provinces, as well as meetings with Premiers and Directors-General; to consult each other on problems encountered; and to bring to each other's attention matters which in the opinion of a Commission required attention by the other.

Two significant gatherings, jointly sponsored by the two Commissions, and involving members of the two Commissions as well as the acting Directors-General of the provinces, were held in August and September 1994. At the first gathering, the Public Service Commission gave a comprehensive overview of the rationalisation process as directed by the action plan described in section 2 of this chapter. This was followed by general discussion, after which each acting Director-General gave a verbal report on the progress made with rationalisation in his province, and the problems encountered. At the September meeting, a variety of matters were dealt with. Matters of direct relevance to rationalisation were the organisation, the post establishment and the staffing of the new provincial administrations; the guidelines on matters of immediate concern to provinces which had been issued by the Public Service Commission; the establishment of provincial service commissions; and a standardised framework to be followed in discussions between the Commission on Provincial Government and key role-players on visits of the Commission to the provinces. Arising from this meeting, a workshop was held in October 1994 concerning Chapter J of the Public Service Regulations, as well as-the top management model for the provinces espoused by the Public Service Commission; these matters are discussed in Chapter 4 of this report.

Apart from these major gatherings, a number of business meetings took place between the Commission on Provincial Government and the Public Service Commission during the latter part of 1994 and into 1995. At the invitation of the Commission on Provincial Government, officials from the Commission's Office accompanied Commission delegations on visits to the provinces, so gaining first hand exposure to problems being experienced there. Towards the end of 1995, the two Commissions agreed that in the light of progress made with rationalisation in the provinces, regular meetings were no longer necessary, but that meetings would be convened on an ad hoc basis if circumstances arose which made further consultation necessary or advisable.

4.2 Intergovernmental Forum

The first meeting between Ministers of the Government of National Unity and the Premiers of the provinces was convened by the President in Cape Town on 25 May 1994, that is to say within two weeks of the new heads of government having taken office. The Commission was privileged to be invited to attend this historic event. It is evident from the main items appearing on the agenda that the gathering was heavily oriented towards the rationalisation of public administration:

  1. Overview of the provisions of the Constitution: implementation at provincial level.
  2. Assignment of political executive powers.
  3. Establishment of new provincial administrations:
  4. Promoting staff morale.
  5. Financial matters.
  6. Issues to be raised by Premiers.

The Commission was directly involved in the second, third and fourth items listed above. It prepared and submitted documents and spoke on all the aspects in question. It also had to respond to issues raised by Premiers, chief amongst which was undoubtedly the question of the assignment of political executive powers to administer existing laws. The Commission's participation in the discussions was grounded in, and supported by, the comprehensive plan of action for rationalisation which it had developed.

The need for intergovernmental contact at top political level on a regular basis was apparent from the start of the new dispensation, and led to the establishment of the Intergovernmental Forum. Although not a statutory body, being instead an agreed arrangement with voluntary participation by its principals, the Forum was nevertheless the most important structure for attending to matters of intergovernmental concern. Commencing in May 1994, the Forum met on a bimonthly basis for the remainder of that year, and on more or less a monthly basis since the beginning of 1995. The Commission was consistently invited to attend meetings of the Forum in an advisory capacity. The Commission's involvement in meetings of the Forum was focused mainly, but not exclusively, on the question of the assignment of political executive powers to the provincial governments, and on organisational rationalisation. Up to about the middle of 1995, progress with the assignment of powers, or the perceived slow rate of such progress, took up a substantial part of the discussions at meetings of the Forum.

The Commission from time to time submitted comprehensive reports concerning the matter, as well as on organisational rationalisation, with substantial input to such reports being made by the State Law Advisers. The Commission availed itself of the opportunities presented by its attendance at meetings of the Forum, to foster an appreciation of the magnitude and complexity of the particular parts of the rationalisation process. The Commission, acting on behalf of the Forum of Service Commissions, utilised the Intergovernmental Forum to clear at the highest political level a particularly sensitive issue, namely the revised mechanism for the determination of the permissible number of managerial posts at provincial level, as embodied in the annexure to Chapter J of the Public Service Regulations. The "Chapter J issue" had on a number of occasions drawn sharp criticism from the Premiers, but was eventually resolved to the general satisfaction of the provincial authorities.

4.3 Forum of Service Commissions

The Forum of Service Commissions was established in December 1994 on the initiative of the Commission. The rationale for regular meetings of South Africa's service commissions was grounded in the Constitutional phenomenon of a single public service regulated by the national Public Service Commission and nine provincial service commissions. Although the functions and powers of the respective commissions were stipulated in the Interim Constitution and the intended relationship between the national commission and the provincial commissions could be derived from the wording of the Constitution, the Commission anticipated that, because of the multifaceted nature of public service administration, there would be a real and ongoing need for co-operation and consultation by and between the service commissions. This expectation was borne out by the substantial agendas which characterised meetings of the Forum. Membership of the Forum was voluntary; however, all commissions chose to be members. The first meeting of the Forum took place on I December 1994. Between that date and the end of May 1996, there were seven ordinary meetings, three special meetings and three workshop retreats. In addition to the plenary meetings, meetings of the chairpersons took place in the intervening periods between such meetings, principally for the purpose of determining agendas.

The Forum had no decision-making powers. Its purpose, as reflected appropriately in its name, was to provide opportunities for purposeful consultation between commissions, and for the exchange of views on matters of common and topical concern. As all the participating commissions were vested with original statutory powers in regard to stipulated matters, each had to ultimately take its own decisions on matters falling within its area of competence. All deliberations within the Forum took place on this understanding.

An analysis of the agendas of the Forum's meetings and retreats would suggest that the matters dealt with by the Forum were categorised under three broad headings: matters concerning rationalisation, matters bearing on the ongoing conduct and improvement of public service administration, and matters focusing on the restructuring and transformation of the public service. During the period of existence of the Forum, there was a discernible shift in emphasis from the first to the third category; from rationalisation to restructuring and transformation.

The progression from rationalisation to restructuring and transformation is dealt with in Chapter 8 of this report, where reference is made to pertinent activities and contributions of the Forum. As far as rationalisation specifically is concerned, the Forum served as an important medium for fostering a common understanding of, and approach to, the problems and challenges of rationalisation. All the major facets of rationalisation, with the exception of the assignment of political executive powers, had featured prominently at ordinary and special meetings of the Forum, as well as at its first retreat which was held over a period of three days in March 1995. To facilitate in-depth analysis and discussion, task teams or sub-forums were instituted by the Forum to look into a number of policy issues: the mechanism for determining the maximum number of managerial posts which each provincial administration may create; the regulation of leave of absence; the achievement of greater representativeness in the composition of the public service; the gender question; and the possible extension of term appointments, applicable to Directors-General, to heads of provincial departments. Other matters that had attracted particular attention were the division of responsibilities between the national and the provincial Commissions; the top management model applied to provincial administrations, and its implications for the accountability of provincial Directors-General; and the rationalisation of pension provisions and funds. Many other matters were broached and discussed in the Forum; these are not dealt with here, however, because of the focus on rationalisation.

5. INTERACTION WITH DIRECTORS-GENERAL

The heads of national departments and provincial administrations were seen by the Commission as key role players in the rationalisation process. The Commission impressed upon Ministers and Premiers the importance of moving as quickly as possible with the filling of the new posts of Director-General. Until fixed appointments could be made, Ministers and Premiers were urged to make acting appointments. The appointment of Directors-General took, in the Commission's view, an inordinately long time, the last such appointment being made on 8 January 1996. Although acting appointments were made, the delay in making fixed appointments was not conducive to the early finalisation of rationalisation. Over an extended period of time, the Commission had to communicate on rationalisation questions with a varying mix of permanently appointed and acting Directors-General.

In August 1994, some two months after the proclamation of the Public Service Act, 1994, the Commission met with the acting heads (no permanent appointments had yet been made) of departments and administrations, for purposes of a full briefing on, and discussion of, the rationalisation process. Because of the special circumstances and problems of the nascent provincial administrations, a meeting with the acting heads of the provincial administrations took place immediately prior to the plenary meeting involving the heads of all departments and administrations. Reference has already been made to two other meetings, with a rationalisation focus, which were specially arranged for the acting heads of provincial administrations in August and September 1994, and which were jointly sponsored by the Commission and the Commission on Provincial Government. Between September 1994 and February 1995, four further plenary meetings were held with the acting and (increasing in number) permanent heads of departments and administrations. At these meetings, a good deal of the available time was devoted to discussion of aspects of the ongoing rationalisation process. Apart from contact by means of group meetings, the Commission was available at all times for consultation by heads of departments and administrations concerning rationalisation problems that they experienced.

In August and September 1994, the Commission met with separate groups of Directors-General appointed under the old dispensation. These meetings, which had been requested by the officials concerned, sensitised the Commission to the problems and concerns of these top officials, but also afforded the Commission the opportunity to explain and elucidate the rationalisation process.

The Commission appreciated the difficulties which heads of departments and administrations had to contend with in building and staffing their organisations, as well as their commitment in seeing the process through to an acceptable conclusion.

6. ASSIGNMENT AND DELEGATION OF POWERS

The Interim Constitution provided that, on the recommendation of the Commission, the President could assign by proclamation in the Gazette any power or function of flee Commission to a provincial service commission. The particular provision anticipated the probable emergence of a need to adjust the respective jurisdictional competences of the national and provincial commissions in the light of experience gained in administering the public service under the new dispensation.

During the course of 1995, the Commission, on reviewing its involvement in certain matters concerning the provincial segments of the public service, found that administrative efficiency could be enhanced if the matters were assigned to the respective provincial service commissions for disposal. The Commission accordingly recommended to the President that the following of its powers be assigned to the provincial service commissions in terms of the Constitutional provision referred to:

The powers were duly assigned by the President.

The retitled and amended Public Service Commission Act, 1984, in terms of which the new Commission was appointed, provided that the Commission could delegate certain of its powers to officers in departments. With the issuance of the revised Public Service Staff Code in dune 1994, a comprehensive range of powers, covering appointments, promotions, transfers, and other career incidents of public servants, were indeed delegated to officers in departments. The exercise of the delegated powers was made subject to compliance with certain stipulated conditions, and in general was limited to the career incidents of officials below the level of Director. The rationale underlying the delegation of powers was to keep the volume of matters submitted to the Commission to manageable proportions, at the same time obviating, as far as possible, delays in dealing with personnel matters.

As the actions required by the staffing of rationalised structures grew in volume during the course of 1995, it became apparent to the Commission that the situation could not be handled satisfactorily on the basis of the standing delegations. The situation was exacerbated by the additional pressure of work flowing from the filling of posts on pre-rationalised establishments, which had been advertised as part of a special affirmative action recruitment drive in 1994. Delays in the filling of managerial posts were increasing, giving rise to dissatisfaction on the part of Ministers and their departments. To cope with the situation, the Commission decided in October 1995 to increase, as an interim measure, its delegations to officers in departments in a number of categories -

In February 1996, the Commission further increased its interim delegations regarding the filling of advertised posts, to include posts at the level of Chief Director.

7. SUPPORT OF PROVINCES

In the Commission's assessment, the new provincial administrations were particularly hard hit by the rationalisation imperatives imposed by the Interim Constitution. The problems of organisational duplication and managerial overstaffing to be resolved were in general greater at provincial level than at national level. The provincial administrations were also much larger than the typical national department. Although they enjoyed the same administrative status as a national department under the Public Service Act, their administration under a plurality of political office holders would be decidedly more complex. Together, the nine provincial administrations employed in excess of 60% of all public servants. In the circumstances, the Commission felt that it was incumbent upon it to pay special attention to the problems and needs of the new provincial administrations.

The Commission assisted the Minister for the Public Service and Administration in a series of meetings which he conducted with the provincial Premiers in the early part of June 1994. The general purpose of these meetings was to promote mutual understanding at top political level of the envisaged scenario for building and activating the new administrations. The Commission elucidated the main aspects of rationalisation and responded to queries raised by the Premiers. Later in the same month, members of the Commission visited six of the nine Premiers to explain the implications of the Public Service Act which had just been promulgated, and to urge them to appoint acting Directors-General. Subsequently, as the rationalisation process unfolded, the Commission on occasion paid special visits to the seats of government of the Northern Province, the Eastern Cape and the Free State, to engage at first hand in discussions with the Premiers and Members of the Executive Councils concerning aspects of the rationalisation process. Regarding discussions on rationalisation at top political level, mention has already been made above of the Commission's constant participation in meetings of the Intergovernmental Forum.

Shortly after the commencement of the new dispensation, the Commission identified a number of matters of immediate concern to provinces, and developed a comprehensive set of guidelines for dealing with such matters. These guidelines were provided to all Premiers in duly 1994, and covered the following matters:

At the time of the issuance of the guidelines, and on various other occasions, the Commission indicated through written and verbal communication to the provincial authorities its readiness to assist them with the rationalisation process. Substantial advice and assistance was indeed provided by the Commission and its Office, especially as regards the setting up of provincial service commissions, the development of departmentalised structures, the resolution of complex staffing situations, and the translation of serving officials to uniform terms and conditions of service. The Commission has reason to believe that its collaboration with the Commission on Provincial Government, its participation in the Intergovernmental Forum and the Forum of Service Commissions, and the special briefing and discussion sessions arranged for the acting heads of provincial administrations also served to facilitate rationalisation at provincial level.

8. REPORTING

In its annual reports to Parliament for 1994 and 1995, the Commission reported inter alia on its activities relating to the rationalisation of public administration. As the annual reports were intended to provide a comprehensive overview of all Commission activities, while also being quickly readable, they were necessarily concise and in general captured only the salient points of a particular topic. Because of the historical importance of rationalisation, the Commission considered it necessary to fully inform Parliament concerning its planning, execution and outcomes; hence the present report.

In terms of the Public Service Commission Act, 1984, annual and special reports of the Commission were transmitted to the President, who was then required by the Act to lay the reports on the table of Parliament. Apart from its annual reports, the Commission twice submitted summary reports on its activities to the President. These reports naturally also covered important aspects of the rationalisation process.

The Commission liaised with Cabinet via the Minister for the Public Service and Administration. Since its appointment, the Commission met virtually on a weekly basis with the Minister, an arrangement which enabled the Commission to keep the Minister informed throughout concerning rationalisation, as well as to ascertain the views and concerns of Government. The close working relationship with the Minister was, as far as rationalisation is concerned, particularly productive in promoting relationships with national Ministers and provincial Premiers, and in the conduct of consultations and negotiations in the Public Service Bargaining Council.

The Commission submitted a number of substantial reports to Cabinet concerning rationalisation:

TABLE 11 REPORTS SUBMITTED BY THE COMMISSION TO CABINET
September 1994 A comprehensive outline of the restructuring (rationalisation) of the public service, according special attention to politically sensitive matters
January 1995 Progress report on organisational rationalisation (input to Cabinet "bosberaad")
January 1996 Comprehensive report on moving towards a more representative public service (input to Cabinet ''bosberaad")
January 1996 Comprehensive report on the assignment of the administration of existing laws to provinces

In addition to its annual reports to Parliament, the Commission also submitted substantial written and verbal reports to committees of Parliament. During 1994 and 1995, the Commission met with the Portfolio Committee on Public Service and Administration on four occasions, including a full day retreat. All salient aspects of the rationalisation process were covered in the documentation and verbal evidence provided to the Committee. In March 1996, the Commission, at the invitation of the Joint Standing Committee on Finance, made a comprehensive presentation on the public service. The presentation had a broad focus, covering the size and composition of the public service, rationalisation, important current issues, and matters concerning the transformation of the public service. The documentation prepared for the meeting with the Committee was also made available to the Portfolio Committee on Public Service and Administration.

9. COSTS

It is impossible to accurately quantify the cost of the rationalisation steps discussed in this report. No funds were provided on the Commission's budgetary vote for rationalisation per se. The expenditure incurred by the Commission and members of its staff on rationalisation activities was in general defrayed from funds provided for the normal administrative and functional activities of the Commission. As reported above, the Commission did avail itself of advice and contributions from a consultant in public personnel administration attached to its Office. The expenditure on consultancy services specifically related to rationalisation did not, however, exceed R25 000. The absorption of costs was accomplished through the rigorous setting and ongoing adjustment of priorities, and by calling for special efforts and longer working hours from all concerned. The same general expenditure scenario prevailed in relation to the personnel of other departments and administrations whose services were procured by the Commission for rationalisation projects. By utilising existing resources in the manner indicated, the Commission endeavoured from its side to ensure that the rationalisation process would be accomplished as cost-effectively as possible.

The costs involved in establishing uniformity in conditions of service could be quantified quite accurately. The annualised cost of translating staff to uniform occupationally related dispensations, as contained in personnel administration standards, was calculated at approximately R390 million. The cost of eliminating selective discrimination against women and single officials as far as participation in the home owner allowance scheme was concerned amounted to R572 million on an annualised basis. Surprisingly, the rationalisation of pension provisions and funds was projected to generate no additional costs for the State as employer; indeed, employer costs would decrease as a result of a redetermined uniform employer's rate of contribution which was lower than the weighted average rate which applied to the various funds in the pre-rationalised situation. A calculation of the saving which would materialise was not available at the time of writing.

CHAPTER 8

CONCLUSION


1. RATIONALISATION AS A PRECURSOR TO THE TRANSFORMATION OF THE PUBLIC SERVICE

Rationalisation was an essential prerequisite for the effective transformation of the public service. The report thus far covered the rationalisation exercise extensively. The next section will firstly introduce some terminological clarification and thereafter present cases of the early transformation of sectors of the public service.

1.1 Rationalisation, transformation and reform

In the South African context, "rationalisation" can be defined as the process of moving from a fragmented and dysfunctional system of administration to one which constitutes a balanced, integrated unity in which every component is essential for the proper functioning of the whole. The process of rationalisation paved the way for a more than fundamental transformation of the public service.

"Transformation" can be distinguished from "reform". At the heart of the distinction is a time dimension: transformation is defined as a dynamic, focused and relatively short term process, designed to fundamentally reshape the public service for its appointed role in the new dispensation. By contrast, reform is seen as a broader, longer term and ongoing process to ensure that the public service continually adjusts to the changing needs and requirements of the domestic and international environments. In this case the public service is affected by endogenous and exogenous factors. Transformation and reform can, however, take place simultaneously.

1.2 Case studies of transformation

During the process of rationalisation certain aspects requiring fundamental transformation became imperative. Me Commission thus simultaneously embarked on a number of projects of transformation. Aspects of the progression from rationalisation to transformation are highlighted below.

1.2.1 Case 1: Programme for the restructuring of the public service

The Commission envisaged that as soon as sufficient progress had been made by means of rationalisation in achieving a new basic order in the administration of the public service, it would be necessary to embark on a comprehensive programme of review and development of all pertinent policies and practices. The Programme for the Restructuring of.the Public Service was discussed at a three-day workshop of the Forum of Service Commissions in September 1995. The programme covered virtually every aspect of the administration of the public service. The accompanying table gives an indication of the scope of the programme.

TABLE 12: PROGRAMME FOR THE RESTRUCTURING OF THE PUBLIC SERVICE

CATEGORY

NUMBER OF PROJECTS

General system development

8

Organisation and establishment

9

Classification and grading

7
Conditions of service

8
Personnel practices

7
Training

1
Labour relations

1
Information technology

4

TOTAL

45

1.2.2 Case 2: Representativeness and equity

In view of the Constitutional requirement that the new public service be broadly representative of the South African community, substantial policy development on representativeness and affirmative action was initiated by the Commission as early as 1994. This work culminated in the promulgation of a new chapter of the Public Service Staff Code in March 1995. Agreement on this policy was reached between the State as employer and the recognised employee organisations. The programme was a step towards transformation in that it placed emphasis on issues of equity and equal access to opportunities in the public service. In addition, the programme transformed the hitherto closed career system into a system of open competition.

1.2.3 Case 3: Training

Recognising the importance of human resource development in the public service, the Commission devoted considerable attention to training, to developing policy, and transforming the Public Service Training Institute (FSTI). For the first time in South Africa, a fully developed chapter on training was promulgated in the Public Service Regulations, followed by a new chapter on training in the Public Service Staff Code. The PSTI, which constituted the training branch of the Commission's Office, was subsequently renamed the South African Management and Development Institute (SAMDI), and was completely reorganised into four centres of excellence: Senior Management Development Programme; Middle Management Development Programme; Skills Development Programme; and Applied Research Unit. These programmes were informed by extensive international experience. An extensive needs analysis of management training and development was undertaken, followed by innovative course design and curriculum development. In addition three Presidential Programmes were introduced: Presidential Programme for Distinguished Persons; Presidential Programme for Senior University Students; and the Presidential Programme for High School Students. The first two programmes were funded by the United Nations Educational and Training Programme for Southern Africa.

To foster modern ways associated with probation requirements and skills advancement, the Commission removed the punitive requirement of linking the management course in public administration to the confirmation of probation. The logic behind the Commission's thinking was to introduce a self-motivated approach to skills and knowledge advancement that would result in improved productivity. Improved productivity is directly related to continuous development of skills and knowledge.

1.2.4 Case 4: A new grading system

The Public Service Commission undertook a review of the classification and grading system used in the public service. This included the elimination of distinction between officers and employees. A new grading system was developed by the Commission in 1995 and agreed with the employee organisations. It featured sixteen basic job levels grouped into six broad bands: lower skilled, skilled, highly skilled production, highly skilled supervisory, management and senior management. The new grading system simplified the multitude of pay scales and removed distortions in remuneration by introducing equity between occupational classes of comparable worth. The grading system furthermore introduced performance related pay.

1.2.5 Case 5: Code of ethics

In response to its Constitutional mandate, the Commission embarked on developing a code of conduct for the new public service. A draft code was published in September 1994 for comment.

Taking into account the need to involve major role-players as part of a wider consultative approach, the draft Code of Conduct was subjected to considerable discussion and elicited a large number of inputs from a diversity of interested parties and role-players. Me Code was infers discussed with the Portfolio Committee on the Public Service and Administration and thereafter tabled as a working document at a meeting of the Central Chamber of the Public Service Bargaining Council. This finalised the consultation process for the formal launching and release of the Code as an official instrument of the public service.

The Code of Conduct is divided into five sections. The first covers the public servant and his/her relationship with the legislature and the executive. Section two is concerned with the relationships among public servants. The last three sections are concerned with the performance of duties, personal conduct and private interests.

The Commission also planned an overall strategy to launch and raise awareness around the Code once released. Activities to be undertaken as part of such a strategy will include appropriate workshops and a media awareness campaign.

As the implementation of a Code of Conduct is crucial to any drive to promote high ethical standards, the need for a manual to be read in conjunction with the Code was identified and one was developed. The manual elucidates the principles contained in the Code, provide practical examples to guide public servants and will be used by departments in establishing suitable training programmes.

1.2.6 Case 6: A new model for state administration

The creation of the new Public Service Commission, in accordance with the new Constitution, represented a major achievement in the transformation of a government institution.

The Commission approached Cabinet to approve a new model for state administration which fundamentally redefined the role of key players within the system of governance. In redesigning the role of the Public Service Commission, extensive analyses were made of comparative international models. Examples of Malaysia, Australia, the United States of America, the United Kingdom, Canada, Singapore and countries without Commissions were studied.

The model or approach provided for the determination of national policy frameworks, norms and standards and practices by the Minister for the Public Service and Administration. All day to day executive functions which previously required a decision by the Commission would be left to Ministers and their departments.

In more detail, this model provided for the following:

  1. Firstly, the Minister for the Public Service and Administration would be responsible for all policy matters relating to human resource management for the public service, to establish and maintain uniform salary dispensations, conditions of service and other service benefits for the whole of the public service, and to advise the President on the creation or abolition of departments. He would decide on the functions of departments and the transfer of functions between institutions and develop policy on the use of information technology in the public service. Furthermore the determination of the national norms and standards on public administration and all deviations from and relaxation of these national norms and standards would fall within his auspices.
  2. Secondly, executing authorities (Ministers, MEC's) subject to policy determined by the Minister, were empowered to deal with organisational structure matters, the creation and abolition of posts and all career incidents, i.e. appointments, promotions, discharges.
  3. Thirdly, heads of departments were given more flexibility and autonomy to take departmental initiatives on human resource management in consultation with the executing authority, and were empowered extensively by means of delegations on issues relating to organisation and establishment matters, as well as career incidents.
  4. Fourthly, the South African Management and Development Institute was established as an autonomous institution in terms of the Public Service Act, 1 994.
  5. Finally, the Public Service Commission was granted the responsibility to promote the basic values and principles of public administration as envisaged in the final Constitution. Diagram 1 shows the organogram of the Office of the transformed Public Service Commission. The new role of the Commision is reported on more fully in its Annual Report for l 996, tabled jointly with this report.

After receiving approval from Cabinet, implementation of the above model commenced with effect from April 1996. The successful transformation of the Public Service Commission has shifted its focus to the development of the projects listed below:

TABLE 13: PROJECTS OF THE TRANSFORMED PUBLIC SERVICE COMMISSION

PROJECTS

DIRECTORATE

a. Minimum Operational Requirements Joint Directorates
b. In-Service Training Programme for New Appointees Merit Systems and Equity Evaluation
c. Probationary Appointments in the Public Service Merit Systems and Equity Evaluation
d. Interviewing as part of Personnel Selection Process Merit Systems and Equity Evaluation
e. Aligning Organisational Structures with Strategic Objectives Structural Evaluation
f. Utilization of Formal Managerial Control Measures Strategic Management
g. Evaluation of Operational Efficiency Operational Efficiency
h. Effectiveness and Efficiency of Transversal Systems Technological Innovation
i. Development of a Code of Ethics Ethics

2. EVALUATING RATIONALISATION

The rationalisation programme embarked upon in South Africa was a vast undertaking by any measure. It was also a multi-faceted one. A comprehensive new order had to be created out of 15 discrete administrations, staffed by officials established in eleven separate public services. Each public service was a distinct entity, operating under its own Act and its own central personnel authority, and performing functions mandated by its own set of statutes and other legal prescripts. In accomplishing rationalisation time was of the essence and the limitation of disruption crucial. A public service in effective operation is unquestionably one of the most important stabilising factors supporting the society in which it is grounded and which it serves. Instituting fundamental change in the public service consequently carries with it the very real risk of destabilising the system. It goes without saying therefore that rationalisation had to be effected as quickly as possible and with as little disruption of services as possible.

The total process of rationalisation covered five major areas, i.e. the setting in place of a new legal framework for administration, the assignment of powers to political executives to administer existing laws, the rationalisation of organisational structures, the establishment and implementation of uniform terms and conditions of employment, and the staffing of the rationalised structures. Each of these areas of rationalisation presented its own set of problems, requiring the development and activation of a particular approach, and calling for the formulation and application of appropriate policy directives at the administrative and technical levels.

The route of proclamation, whilst necessary to avoid a legal and administrative vacuum, forfeited the legitimacy that the Parliamentary process would have accorded these legal instruments.

The task of setting in place a new legal framework for the administration of the public service was accomplished in a relatively short space of time considering the amount of detailed work that had to be done and the extent of the consultations which were required. This new legal framework was to be an interim one, to be subjected in due course to fundamental review and further rationalisation as part of the government's programme for the transformation of the public service.

The assignment of powers to political executives for the administration of existing laws was largely completed within two years. Considering the scope, complexity and sensitivity of the task, and the great number of role-players involved, this was a notable achievement. The assignment of powers tested the devolution of authority between central and provincial levels and became a practical demonstration of cooperative governance.

Against the background of an incredibly convoluted and fragmented organisational structure which characterised the old South Africa, organisational rationalisation was a truly massive undertaking. In the Commission's assessment the task could be accomplished effectively only through the application of a phased approach. No similar, comprehensive restructuring of the machinery of government had been attempted before, and it was unclear how long it would take. Its virtual completion within two years constituted a remarkable achievement of the national and provincial authorities acting in unison. In the process of rationalisation, important innovations were introduced through the constraint on post establishments and models of provincialisation and provincial management, while important insights were gained into managing the size of the public service.

The establishment of uniform terms and conditions of service for the roughly 1,2 million public servants of the eleven public services, within the first six months of the new dispensation, stands to the credit of all those involved in the development and negotiation of the new service dispensations. Although the rationalisation of pensions provisions and funds took somewhat longer, the end results represented a significant achievement in the administration of the public service. However, the translation of officials to the uniform dispensations took somewhat longer. More than eighteen months after the translation instruments had been negotiated and furnished to departments and administrations, a substantial number of public servants had still not been translated to the appropriate dispensations. The maintenance of labour stability throughout this delicate process of negotiations
remains a tribute to the commitment of government and organised labour to the building of democracy and demonstrated the importance of the newly institutionalised progressive labour relations framework.

To align the staffing of the rationalised structures with the objectives of the Interim Constitution and the provisions of the Public Service Act, 1994, substantial policy development was done, culminating in the promulgation of special staffing measures, as well as a comprehensive framework for achieving broad representativeness in the composition of the public service. The staffing process took a considerable time to complete. It should be borne in mind that organisational rationalisation had to be completed first before the staffing could commence. The inherent sensitivity of staffing actions, the complexity of balancing procedural requirements to be satisfied, the scarcity of skilled personnel practitioners in departments, as well as the need to consult extensively with organised labour on staffing measures, slowed down the process considerably. Substantial progress was nevertheless made in achieving greater representativeness, especially at the more senior levels of the new public service.

Rationalisation posed particular demands on the management of the process especially with regard to planning, organisational and logistical arrangements, intergovernmental co-ordination, and reporting. Considerable emphasis was placed on support mechanisms for the provincial authorities. The Commission succeeded in discharging its role in the rationalisation process largely within the limits of its normal budgetary provision. Similarly, departments and administrations absorbed the costs of rationalisation actions. The establishment of uniformity in terms and conditions of service carried a price tag of R960 million per annum. However, the additional outlay constitutes less than 2% of annual personnel costs.

There were also a number of other factors at work which positively influenced the achievement of the objects of rationalisation: the clear rationalisation mandates given to the Commission in the Constitution and the Public Service Act, the success achieved in marshalling available expertise within, but also outside, the public service, the co-operation given by departments and administrations, the positive and productive attitudes adopted by both the employer and the employee sides in the Public Service Bargaining Council, and the understanding and support forthcoming from the political executive bodies at both the national and provincial levels of government.

Notwithstanding the positive influences and supportive factors which served to facilitate rationalisation, it remained a task of great magnitude, complexity and sensitivity. The Commission trusts that this report will serve to throw more light on the subject, and perhaps engender a greater measure of understanding of what was, indeed, a significant and engrossing episode in our country's administrative history.


ANNEXURE A

THE CONSTITUTION OF 1993 AND THE PUBLIC SERVICE


1. INTRODUCTION

The Constitution of the Republic of South Africa, 1993, provided the foundation for the staffing and administration of the future public service. In the following discussion a synopsis of the most important provisions of the Constitution pertaining to the public service is provided. Brief comments have been added in order to highlight the significance of the provisions dealt with.

2. CONSTITUTIONAL PRINCIPLES

2.1 Negotiations concerning the Constitution were accompanied by the identification of a number of Constitutional principles. These were contained in Schedule 4 of the Constitution. The Constitutional principles covered many and varied aspects of importance to the proper functioning of the State and were intended to provide guidance to the Constitutional Assembly in drafting the final Constitutional text. In this connection it should be noted that the Constitution of 1993 was of the nature of an interim constitution.

2.2 To ensure compliance with the Constitutional principles, the Constitution stipulated that a new Constitutional text passed by the Constitutional Assembly, should not be of any force or effect unless the Constitutional Court had certified that all the provisions of such a text comply with the Constitutional principles.

2.3 Constitutional Principles XXVIII, XXIX and XXX were of particular importance to the public service and public servants, and are quoted in full:

XXVIII

XXIX

XXX

3. THE PUBLIC SERVICE

3.1 The Constitution, 1993 stipulated that there would be a single public service for the Republic, which would be structured in terms of law to provide effective public administration.

3.2 It was further stipulated that the public service would -

  1. be non-partisan, career-orientated and function according to fad: and equitable principles;
  2. promote an efficient public administration broadly representative of the South African community;
  3. serve all members of the public in an unbiased and impartial manner;
  4. be regulated by laws dealing with such service, and in particular with its structure, functioning and terms and conditions of service;
  5. loyally execute the policies of the government of the day in the performance of its administrative functions; and
  6. be organised in departments and other organisational components. The head of a department or organisational component would be responsible for the efficient management and administration of the department or organisational component.

3.3 Employment in the public service would be accessible to all South African citizens who complied with the requirements determined or prescribed by or under any law for such employment.

3.4 In the making of any appointment or the filling of any post in the public service, the Interim Constitution stipulated that the qualifications, level of training, merit, efficiency and suitability of the candidates who qualified for the appointment, promotion or transfer concerned, and such conditions as may be determined or prescribed by or under any law, should be taken into account.

3.5 The Constitution proceeded to stipulate that the criteria to be applied in making appointments and filling posts should not preclude measures to promote the objectives referred to above.

3.6 Provision would be made by law for pensions for members of the public service by means of a pension fund or funds which were to be established by law. Members who were required by law to be members of a pension fund, would be entitled to fair representation on the body which managed the pension fund.

3.7 In the event of changes to the law governing pension funds which could prejudice a member of a fund, the real value of the accrued benefits of the member, and his or her beneficiary, as represented by the fund's actuarial liability towards the member or his beneficiary, would be maintained. The retirement age of a public servant as at 1 October 1993 could also not be changed without his or her consent.

4. THE POSITION OF SERVING MEMBERS OF THE PUBLIC SERVICE

4.1 The Interim Constitution provided for the thoroughgoing rationalisation of government structures and stipulated the transitional arrangements which would apply in moving towards a new system of public administration. In general, the Constitution strove to ensure that services would not be disrupted and that changes would be brought about in an orderly manner. However, it was apparent that public servants would be affected in one way or another by rationalisation. It is therefore important to note what the Constitution had to say about the position of serving members of the public service.

4.2 A public servant who, immediately before the commencement of the Constitution, was employed by a government institution indicated in the Constitution, would continue in such employment subject to and in accordance with the provisions of the Constitution and other applicable laws regulating his or her employment.

4.3 The terms and conditions of employment applicable to a public servant would continue to apply to him or her after the commencement of the Constitution, until amended by or under any law. Such a law could include a law enacted in order to establish uniformity in terms and conditions of employment arising from the necessity to amalgamate the existing public services into a single national public service.

4.4 Except in the case of unfitness or incapacity of a person to carry out his or her duties efficiently, the Constitution guaranteed that the pensionable salary or salary scale of a public servant would not be reduced below that applicable to him or her immediately prior to the commencement of the Constitution.

4.5 The Constitution contained a "review clause" providing for the correction of any improper or unjustifiable action favouring a public servant which may have occurred, or might still occur, in the period leading up to the commencement of the Interim Constitution and in the period immediately thereafter. The conclusion or amendment of a contract, an appointment or promotion, or the award of a term or condition of service or other benefit which occurred between 27 April 1993 and 30 September 1994 in respect of a public servant or class of public servants might, at the instance of a Minister or a member of the Executive Council of a province, be reviewed by a commission appointed by the President and presided over by a judge and, if not proper or justifiable in the circumstances of the case, such contract, appointment, promotion or award could be reversed or altered. Initially such review, and any reversal or alteration, was to take place within one year of the commencement of the Interim Constitution. In a subsequent amendment of the Constitution, the date was extended to 31 December 1995.

4.6 The Interim Constitution anticipated the likelihood of claims and disputes of right arising from the implementation of the provisions of the Constitution dealing with transitional arrangements and the rationalisation of public administration. Any such claim or dispute would be dealt with by the Labour Appeal Court Sitting As A Special Tribunal. In determining a claim or dispute, the Court would act in terms of the laws regulating the employment of public servants as at 1 November 1993. The Court would adjudicate claims and disputes according to expeditious procedures to be prescribed by Act of Parliament, and its decisions would be final and binding. Initially, the special provision made for the determination of claims and disputes was to lapse one year after the commencement of the Constitution. In a subsequent amendment of the Constitution, the expiry date was extended to 31 December 1998, in respect of the National Defence Force, and to 27 April 1996 in respect of the rest of the public service.

5. LABOUR RIGHTS

5.1 The Interim Constitution acknowledged labour rights as part of the fundamental rights which it guaranteed to all citizens. All workers (including public servants) and employers (including government departments) were treated the same. The package of basic labour rights consisted of the following:

5.2 Provision was also explicitly made in the Interim Constitution that a law in force at the commencement of the Constitution promoting fair employment practices, orderly and equitable collective bargaining and the regulation of industrial action, would remain of full force and effect until repealed or amended by the legislature.

6. PUBLIC SERVICE COMMISSION

6.1 The Interim Constitution provided that there would be a Public Service Commission at the central level of government, which would have the powers and functions entrusted to it by the Constitution or by a law of a competent authority.

6.2 The Commission would be accountable to Parliament.

6.3 The Commission would be competent -

  1. to make recommendations, give directions and conduct enquiries with regard to the organisation and administration of the public service; the conditions of service of public servants; personnel practices in the public service; appointments, promotions, transfers, discharges and other career incidents of public servants and matters in connection with the employment of personnel; the promotion of efficiency and effectiveness in departments; and a code of conduct for the public service;
  2. to advise the President, a Minister or a member of the Executive Council of a province in regard to any matter relating to the public service or the employment, remuneration or other conditions of service of persons employed by an institution or body which was financed wholly or partly from public funds; and
  3. to exercise such other powers and perform such other functions as may be entrusted to it by law.

6.4 A recommendation or direction of the Commission should be implemented within six months unless it involved expenditure from public funds and treasury approval therefore was not obtained, or if the President rejected it and referred it back to the Commission before its implementation.

6.5 The Commission would consist of not fewer than three and not more than five members appointed by the President, one of whom would be designated as the Chairperson. The Commission would exercise its powers and perform its functions fairly, impartially and independently.

6.6 A member of the Public Service Commission should not hold office in any political party or political organisation and should be non-partisan in the performance of his or her functions.

6.7 The composition, appointment, tenure, vacation of office, conditions of service and functioning of the Commission would be as determined by an Act of Parliament, and such Act would ensure the independence and impartiality of the Commission and the efficient and effective exercise and performance of its powers and functions.

7. PROVINCIAL, SERVICE COMMISSIONS

7.1 A provincial legislature could establish by law a provincial service commission which, subject to norms and standards applying nationally, would, in respect of public servants employed by the province, be competent to -

  1. make recommendations, give directions and conduct enquiries with regard to the establishment and organisation of departments of the province; appointments, promotions, transfers, discharges and other career incidents of such public servants; and the promotion of efficiency and effectiveness in departments of the province;
  2. advise the Premier or a member of the Executive Council of a province in regard to any matter relating to the public service or the employment, remuneration or other conditions of service of persons employed by any institution or body at provincial level which was financed wholly or partly from public funds; and
  3. exercise and perform such other powers and functions of the Public Service Commission assigned to it by the President, on the recommendation of the Public Service Commission, and with the approval of the Premier.

7.2 The composition and functioning of a provincial service commission would be similar to that of the Public Service Commission at national level, but focussed on the provincial level of government.

7.3 The establishment of a provincial service commission rested with the legislature of a province. Should a provincial service commission not be established, the powers and functions which such a commission could have exercised and performed would be exercised and performed by the Public Service Commission at national level.

ANNEXURE B

SUMMARY OF CONSTITUTIONAL PROVISIONS DEALING WITH THE TRANSITIONAL ARRANGEMENTS FOR AND THE RATIONALISATION OF PUBLIC ADMINISTRATION


1. TRANSITIONAL ARRANGEMENTS: PUBLIC ADMINISTRATION

1.1 Section 236(1) determined that after the commencement of the Interim Constitution all public services, departments, administrations, forces and other institutions of the former RSA, the TBVC states and the self-governing territories would continue to function as such in accordance with the laws applicable thereto until they were abolished, incorporated, integrated, consolidated or otherwise rationalised. The manner in which any military force would be employed was restricted under control of the President (proviso to section 236(1)).

1.2 Section 236(2) determined that persons who immediately before the commencement of the Interim Constitution were employed by departments, administrations, forces, etc. would continue in such employment subject to and in accordance with the Constitution and other applicable laws regulating such employment.

1.3 Section 263(3) determined that all powers, directions, orders, instructions or delegations which were in force in respect of departments, administrations, forces, etc. immediately before commencement of the Constitution would continue in force for the purpose of the continued functioning of such institutions until cancelled or otherwise no longer in force in law.

1.4 Section 236(4) determined that, subject to the Constitution and section 236(5) (see paragraph immediately below), the terms and conditions of employment applicable to a person employed by a department, administration, etc. immediately before the commencement of the Constitution would continue to apply to him or her until amended by or under any law, including any law enacted in order to establish uniformity of the terms and conditions of employment in accordance with those generally prevailing at such commencement.

1.5 Section 236(5) determined that, subject to any law relating to unfitness or incapacity of a person to carry out his or her duties efficiently, the pensionable salary or pensionable salary scale of a person employed by a department, administration, etc. would not be reduced below that applicable to such person immediately before the commencement of the Constitution.

1.6 Section 236(6) created an arrangement whereby, notwithstanding general protection of terms and conditions of service of public servants contained in measures in section 236, the conclusion or amendment of a contract, appointment or promotion, or the award of a term or condition of service or other benefit, which occurred between 27 April 1993 and 30 September 1994 in respect of any person employed at any time during the said period by an institution referred to in subsection (1), or any class of such persons, may, at the instance of a Minister or a Member of the Executive Council of a province, within one year and three months of the commencement of the Constitution be referred to a commission appointed by the President and presided over by a judge, for review, and if not proper or justifiable in the circumstances of the case, the commission may reverse or alter the contract, appointment, promotion or award before 31 December 1995.

(As amended by the Constitution of the Republic of South Africa Amendment Act, 1995 (Act No 20 of 1995))

1.7 Section 236(7) determined that at the commencement of the Interim Constitution the S A Police and all other police forces established by law would be deemed to constitute the South African Police Service referred to in section 214 and that a reference to the S A Police or any other police force in the Police Act, 1958, or other law, would be deemed to be a reference to the South African Police Service.

1.8 Section 236(8) determined that the National Defence Force referred to in section 224 would, subject to the Constitution and any Act of Parliament, mutatis mutandis governed by the Defence Act, 1957. It was further stipulated that any reference in any law to the SADF or the defence force of a territory which formed part of the national territory would be deemed to be a reference to the National Defence Force.

2. RATIONALISATION OF PUBLIC ADMINISTRATION

2.1 Section 237(1) determined that all public services, departments, police forces, administrations, defence forces and other institutions performing governmental functions in the RSA, the TBVC states and the self-governing territories, would as soon as possible after the commencement of the Constitution, be rationalised with a view to establishing within the public service contemplated in section 212(1) an effective administration at the national level of government and for each province.

2.2 Section 237(2)(a) placed the responsibility for the rationalisation of all public services primarily but not exclusively with the national government. This responsibility would be exercised -

  1. in co-operation with provincial governments and the Commission on Provincial Government;
  2. with due regard to the advice of the Public Service Commission;
  3. in the case of police services, also in co-operation with the committee referred to in section 220(1), consisting of the Minister and MEC's entrusted with police matters, as well as the Board of Commissioners referred to in section 220(2); and
  4. in the case of military forces, as the exclusive responsibility of the national government.

2.3 Section 237(2)(b) determined that the responsibility for the internal rationalisation of the administration (excluding policing) of a province would primarily rest with the relevant provincial government, with due regard to the advice of the PSC and any provincial service commission which might have been established for that province.

2.4 Section 237(3) contained provisions which gave the President wide powers to take certain steps which were important for the rationalisation process. In terms of section 237(3)(a) the President could, subject to section 237(2)(a) (which prescribed co-operation with provincial governments and the Commission on Provincial Government and due regard to the advice of the PSC and, in the case of police services, co-operation with the committee consisting of the Minister and MEC's entrusted with police matters, and also the Council of Commissioners) by proclamation take such steps as he or she considered necessary in order to achieve the aim of a rationalised public service to create an effective administration at the national level and for each province. Section 237(3)(b) provided that, without derogating from the generality of the empowering section, the steps referred to could include -

  1. the amendment, repeal or replacement of any law regulating the establishment, functions and other matters relating to an institution referred to in section 236(1), or of any law referred to in section 236(2), or of any law which deals with any of the foregoing matters in a consequential manner: Provided that if a law referred to in section 236(2) was repealed, provision would be made for the application of any law of general application regulating the employment of persons or any class of persons in the employment of the state, to the persons or class of persons affected by such repeal; and
  2. measures relating to the transfer or secondment of personnel or the allocation of property, funds, rights and obligations, including administrative records, in order to establish the administrations referred to in section 237(2) and to rationalise the South African Police Service and the National Defence Force.

2.5 Section 237(4) provided that the Labour Appeal Court Sitting As A Special Tribunal in terms of an Act to be passed by Parliament would be competent to determine any claim or dispute of right in terms of a law regulating as at I November 1993 employment in a public service, department, police force, defence force, administration or other governmental institution and arising out of the implementation of sections Z36 and 237, which dealt with transitional arrangements and the rationalisation of public administration. The relevant Act of Parliament must prescribe expeditious procedures for the adjudication of claims and disputes, including the granting of interim and final relief. The procedures so determined would be the only procedures to be followed in such Court. A decision of the Court on any such claim or dispute would be final and binding. The arrangement set out above would lapse -

  1. in respect of the National Defence Force on 31 December 1998; and
  2. in respect of any other institution, two years from the commencement of the Constitution

save that any matter before the Court on the respective dates would be heard and determined as if the arrangement had not lapsed.

(As amended by the Constitution of the Republic of South Africa Amendment Act, 1995 (Act No 20 of 1995))

ANNEXURE C

DEPARTMENTALISATION MODELS: NATIONAL LEVEL PROPOSED DEPARTMENT OF AGRICULTURE


MAIN FUNCTIONS

1. Determination of norms and standards regarding -

2. Determination of macro agricultural economic policy

3. Regulation of -

4. Control of -

5. Production of vaccines and other animal health products

6. Rendering of -

7. Maintenance of international agricultural relations

8. Promotion of agricultural research, technology development and transfer (including agricultural engineering technology)

ASSOCIATED STATUTORY BODES

Agricultural Marketing Boards
Advisory Board: Livestock Improvement Act
National Marketing Council


ANNEXURE D

DEPARTMENTALISATION MODELS: PROVINCIAL LEVEL PROPOSED DEPARTMENT OF AGRICULTURE


MAIN FUNCTIONS

1. Rendering of support to farmers and agricultural communities with regard to -

2. Promotion of -

3. Rendering of -

4. Determination of agricultural economic policy

5. Administration of matters pertaining to state agricultural land

6. Combatting of agricultural pests

7. Registration of livestock brands

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