Draft White Paper

TRANSFORMATION OF THE PUBLIC SERVICE

The Draft White Paper on the Transformation of the Public Service is published by the Ministry for the Public Service and Administration for general information and comment from interested parties. Comment must reach the Ministry before 30 June 1995 at the following address:

For attention: Dr M P Ncholo
Ministry for the Public Service and Administration
Private Bag X9148
Cape Town 8000
Fax: (021) 45 5484

You may also make your submission on-line to: submit@anc.org.za

15 May 1995

TABLE OF CONTENTS

SECTION I

PART 1: INTRODUCTION

1.1 The Need for Change

1.2 Purpose and Scope of the White Paper

1.3 A Consultative Change Process

PART 2: THE LEGACY OF THE PAST

2.1 Lack of Representativeness

2.2 Lack of Legitimacy

2.3 Low Capacity for Service Delivery and Development

2.4 Centralised Control and Top-Down Management

2.5 Lack of Accountability and Transparency

2.6 Absence of Effective Management Information and Financial Control Systems

2.7 Inappropriate Use of Staff resources

2.8 Poorly Paid and Demotivated Staff

2.9 Conflictual Labour Relations

2.10 Lack of Professional Ethos and Work Ethic

PART 3: VISION AND GOALS FOR THE NEW PUBLIC SERVICE

3.1 Vision

3.2 Goals

SECTION II

PART 4: TOWARDS A POLICY FRAMEWORK FOR CHANGE

4.1 Meeting Basic Needs through Improved Service Delivery

4.2 Achieving Representativeness through Affirmative Action

4.3 Institution Building and Management

4.5 Improving Pay and Employment Conditions

4.6 Promoting Effective Labour Relations

4.7 Promoting a Professional Ethos

4.8 Democratising the Public Service

4.9 Management of Human Resource Development

4.10 Monitoring and Evaluation

PART 5: ORGANISATIONAL IMPLICATIONS

5. l Programmes of Action for Public Service Reform

5.2 Strengthening and Restructuring the Reform Agencies

5.3 Consultation and Co-ordination

PART 6: LEGISLATIVE IMPLICATIONS

6.1 Repeal of Apartheid Legislation

6.2 Revision of Initial Legislation

6.3 Legislation on Freedom of Information

6.4 Affirmative Action and Labour Relations Legislation

6.5 Legislation on Reform Agencies

6.6 Drafting the New Constitution

PART 7: FINANCIAL IMPLICATIONS

SECTION I

Part 1: Introduction

1.1 THE NEED FOR CHANGE

On its accession to power the Government of National Unity inherited a society marked by deep social and economic inequalities, as well as by serious racial, political and social divisions. Guided by the principle of national reconciliation, the new Government adopted the Reconstruction and Development Programme (RDP) as the main policy instrument to reorient and reunite society in a common purpose, in order to overcome many of the political, social and economic problems of the past and to ensure a stable transition to the new South Africa.

In forging ahead with the processes of reconciliation, reconstruction and development, the South African Public Service has a major role to play. To fulfill this role effectively, the public service will need to free itself from its apartheid past and to be transformed into a much more coherent, representative, competent and democratic instrument for executing government policies and meeting the needs of people. The Government's commitment to this process is demonstrated by the fact that in the RDP White Paper, administrative transformation is identified as one of its top five strategic priorities, along with education, health, housing and land claims.

A first step in this direction was taken by the new Government through the introduction of the Public Service Act of 1994 (Proc. 103/1994) which created the basis for integrating the fragmented system of state administrations inherited from the apartheid era into a unified national public service. Much more needs to be done, however, in transforming the public service into an agency capable of achieving the crucial goals set out in the RDP White Paper in line with the objectives of the Government of National Unity. This present White Paper, issued by the Minister for Public Service and Administration, proposes a number of major ways forward for the transformation process.

1.2 PURPOSE AND SCOPE OF THE WHITE PAPER

The principal aim of this White paper is to establish a framework to guide the transformation of the South African Public Service including the introduction and implementation of new policies and legislation. To this end the document attempts to identify:

SECTION I comprises Parts 1,2 and 3 which deal with:

SECTION II comprises Parts 4,5,6 and 7 which deal with:

The scope of the White Paper is guided by the terms of the present Constitution of the Republic of South Africa (Act 200/93), as well as by the agreed policy statements concerning the RDP regarding the transformation and developmental roles of the public service (RDP White Paper).

Its mandate is to cover those parts of the public service, both national and provincial, which are regulated by the Public Service Act (Proc. 103/94); but it purports in its more general thrust to be relevant also to the remaining areas of the public service which do not necessarily fall within the ambit of the said Act.

1.3 A CONSULTATIVE CHANGE PROCESS

The transformation of the public service is a complex and potentially controversial process. It is also being undertaken in a context where other government policies are likely to have a significant impact on the public service. Thus, while the White Paper provides a broad framework for the transformation of the public sector, further elaboration of policy will be necessary in the forthcoming years.

In line with its policy generally, the government places considerable emphasis on the need for effective consultation. Hence comments on the first draft of this White Paper were invited and received from a wide range of individuals and stakeholders both within and outside the public service. These have been taken into account in preparing this current and revised draft. The consultative process will continue into the subsequent phases both before legislation is presented to Parliament, as well as afterwards, to ensure that the transformation process is adapted on a rolling basis to the changes taking place in the country.

Part 2: The Legacy of the Past

2. The public service inherited by the new Government was structured and developed by the previous regime to promote and defend the social and economic system of apartheid. As a result, many of its policies and practices, if left unchanged, could seriously jeopardise the capacity of the public service to meet its new role in the social and economic transformation of the country.

It is important therefore, to identify, the principal flows peculiar to the inherited public service system and that will need to be overcome if the service is to discharge its new roles efficiently, effectively and equitably. The main shortcomings of the apartheid public service are characterised below.

2.1 LACK OF REPRESENTATIVENESS

The administration as a whole was characterised by its lack of representativeness of all the peoples of South Africa. The administration of Government was dominated by the white minority even though it had a majority black population. This was particularly the case within the management echelon, which in 1994 was 85 per cent white. The Public Service was also heavily biased in terms of gender. In 1994 only 3 per cent of senior management was female.

2.2 LACK OF LEGITIMACY

Because public officials were seen by the majority of the broader South African community as the agents of the apartheid state, they lacked popular legitimacy. Even where officials tried honestly and diligently to implement constructive policies, as some did, they met opposition and hostility among the communities they were attempting to assist.

2.3 LOW CAPACITY FOR SERVICE DELIVERY AND DEVELOPMENT

In the experience of the majority black population, the apartheid public service in South Africa failed to live up to what should have been its essential mission and purpose, that of serving the people. The system of service provision that developed historically was both discriminatory and exclusionary, and was based largely on the assumption that communities were passive recipients rather than active participants in the limited services that were provided. The notion that the public service could or should play an important developmental role did not enter into the apartheid lexicon. The purpose of state officials was to administer, control and, at best, to hand down services, not to work closely with communities in ways that might enable them to take control of their own development and empowerment. Development, if it happened at all, was something done to people not with them.

2.4 CENTRALISED CONTROL AND TOP-DOWN MANAGEMENT

Because the public service was a control mechanism against the majority population, it became of necessity highly authoritarian, centralised and rule-bound in its operation. It was characterised in particular by the development of a vertical, top-down management structure in which the lower levels (as well as clients) were hardly consulted and seldom dared to question a decision. Democratic practices were discouraged, both internally and in interaction with the public. There was little or no incentive for creativity and no culture of service and responsiveness to the needs of citizens and clients.

2.5 LACK OF ACCOUNTABILITY AND TRANSPARENCY

Accountability within the service, tended to be limited to administrative and budgetary accountability. Employees were held accountable for adherence to rules and procedures rather than for efficiency and productivity. The performance audits introduced lately by the Auditor General covered only a few areas and seem not to have had much impact on improved output and increased public insight.

Wider accountability of the service to the public was not in evidence. In fact, the various public services were characterised by their secretiveness and the exclusion of public scrutiny. Information was closely guarded and released only under pressure. Decisions with a strong impact on the public were frequently made outside the scrutiny of the various Parliaments let alone that of the population as a whole. All this created space for widespread inefficiency, mismanagement and misappropriation of funds and increased the illegitimacy of the government in the public's eye. The state under these circumstances became very much a law unto itself.

2.6 ABSENCE OF EFFECTIVE MANAGEMENT INFORMATION AND FINANCIAL CONTROL SYSTEMS

No fully deployed management information systems were installed to promote information sharing and efficient monitoring and revision of public sector programmes. One important consequence of this is that there are few reliable statistics on the staffing and composition of the public service today.

Budgetary proceedings were formalistic, unrelated to past performance and future programme goals, and exclusive of public participation. Rigidity in procedures and detail locked resources into inappropriate or badly-planned programmes. And overall control of expenditure and the prevention of corruption were not effective.

2.7 INAPPROPRIATE USE OF STAFF RESOURCES

Productivity m the public service is relatively low, particularly if judged in terms of the ability to deliver services that meet the needs of the people. Low productivity results in part from lack of appropriate education and training opportunities for the majority of staff. But it also results from the fact that a disproportionate number of staff are involved in essentially duplicative administrative functions, whereas serious under-staffing frequently occurs at the level of essential service provision, particularly for Black, Indian and Coloured communities.

2.8 POORLY PAID AND DEMOTIVATED STAFF

The public service is characterised by high income differentials between the lowest and highest paid workers. The income differential ratio is about 1:25, as compared with most other countries at a comparable level of development, where the ratio lies between 1:8 and 1:18. Whereas pay levels for managers, are relatively high, those for the lower echelons are greatly depressed.

In the past, promotion and advancement were often seen to be dependent on criteria such as political allegiance, race and gender, rather than on merit and dedication. Linked to this, there was a lack of adequately defined career paths and an under-provision of related training opportunities, especially for disadvantaged groups. This helped to reduce opportunities for career advancement amongst such groups and to reproduce inequalities in the racial and gender composition of service, particularly at management levels.

The impact of past inequalities needs to be seriously addressed.

2.9 CONFLICTUAL LABOUR RELATIONS

For much of the apartheid era, labour relations were either prohibited or closely regulated according to race. The result for many public servants, particularly the black, was that they were denied the opportunity to improve their conditions through collective bargaining. Relations between the state and its employees became strongly adversarial under such conditions, with conflict mediated by force rather than peaceful negotiation.

In recent years, however, progress has been made towards establishing collective bargaining rights for all public service workers. The principle of affirmative action is also coming to be widely accepted by unions and professional associations, irrespective of their racial base.

2.10 LACK OF A PROFESSIONAL ETHOS AND WORK ETHIC

Many of the problems outlined above have served to inhibit the development of a professional work ethic and commitment amongst public servants. Some islands of efficiency did exist, however, and some civil servants showed impressive dedication and capacity under the most unfavourable conditions. In many parts of the service, however, inefficiency, mismanagement and corruption became the norm. In the former "TBVC states" and "self-governing territories," for example, lack of commitment to one's work was seen by some public servants as a subtle form of opposition to the Bantustan system. Unfortunately, over time this lack of commitment tended to become a way of life.

Part3: Vision and Goals for the New Public Service

3.1 VISION

If the problems outlined above are not addressed urgently, they will seriously compromise the ability of the new Government to achieve its major goals of reconstruction and development, nation building and national reconciliation, and community empowerment and democratic participation. A complete transformation of the public service is called for if it is to assist rather than obstruct the achievement of the goals set for the nation by the Government of National Unity.

In working successfully towards this, it is vital that the transformation process is guided by a clear, comprehensive and commonly accepted vision of the fundamental principles to guide the composition and operation of the new public service. The government is of the view that these should include the need for the new service to be:

3.2 GOALS

In pursuit of this vision the Government of National Unity aims to facilitate the transformation of the South African public service into one that can serve the new democratic order efficiently and effectively. To this end, the Government sets the following broad goals:

SECTION II

Part 4: Towards a Policy Framework for Change

4. This vision and these goals will need to be concretised within government departments at both the national and provincial levels by setting appropriate, specific and measurable objectives; by design and implementation of detailed strategies and plans for their achievement; and by introduction of effective systems for monitoring and evaluation of progress. This section of the White Paper sets out a broad policy framework to guide and inform these processes. Particular attention is being addressed to the following:

4.1 MEETING BASIC NEEDS THROUGH IMPROVED SERVICE DELIVERY

Service delivery must focus on meeting the basic needs of the 40 per cent or more South African citizens living below the poverty line, while ensuring continuity of services at all levels of society. Key departments such as Health, Education and Social Welfare are already addressing major social problems.

Delivery within these and other departments must be founded on the creation of government community partnerships for effective use of public funds and community resources. Strategies need to be developed to promote continuous improvement in the quantity, quality and equity of service provision. These will include:

Mechanisms for development financing and resource management must support the objective of continuous improvement.

4.2 ACHIEVING REPRESENTATIVENESS THROUGH AFFIRMATIVE ACTION

4.2.1 The Need for Representativeness

The Interim Constitution stresses the need for a "public service broadly representative of the South African community". (Section 212(2)(b) and Principle XXX of Schedule 4). Representativeness is one of the main foundations of a non-racist, non-sexist and democratic society, and as such is one of key principles of the new Government. Achieving representativeness is in essence a necessary precondition for legitimising the public service and driving it towards equitable service delivery.

For centuries black people were systematically excluded from positions of influence in the state and civil society. Although a small elite benefitted from the Bantustan dispensation, the majority of senior posts in government are still held by whites. Women and disabled people have been similarly disadvantaged, in particular those from black communities. As a result, there has been an enormous waste in human potential. The skills, talents and experiences of such people were not developed and allowed to enrich the performance of the public service.

With the new dispensation in South Africa, this situation cannot be allowed to continue. To meet the new and challenging tasks with which it is faced, it is absolutely imperative that the public service draws upon the skills and talents of all South Africans, and derives the benefits that a more representative service will bring.

4.2.2 Making the Service more Representative

In countries that have tried to increase equal opportunities in employment through strategies that have fallen short of affirmative action, three main steps have typically been taken:

In South Africa, all three steps are being pursued vigorously. The Interim Constitution specifically prohibits discrimination in employment in any form. And organisational and attitudinal changes to promote equal opportunities are an important component in the strategies for institution building, restructuring and rationalisation that will be covered later in this section of the White Paper.

4.2.3 The Need for Affirmative Action

Such steps, though important, are unlikely by themselves to lead to major changes in the representativeness of the public service in the short term. Attitudinal changes, for example, are often notoriously difficult to implement and frequently take many years to achieve. South Africa does not have the time to wait. The RDP White Paper, for instance, foresees a truly representative service by the end of the decade, and also requires substantial change in the short term. "Within two years of the implementation of the programme, recruitment and training [in the public service] should reflect South African society in terms of race and gender." (RDP White Paper, Paragraph 5.10.3).

A more proactive approach is therefore vital, and this will predominantly take the form of affirmative action. The development and implementation of affirmative action programmes will allow special measures to be taken to ensure that people from disadvantaged groups inside and outside the public service will be identified and appointed through proper procedures within all ministries and at all levels of the public service, with the aim of achieving representativeness and improved service delivery.

4.2.4 Beneficiaries

The main beneficiaries of affirmative action programmes will be black people, women and people with disabilities. In developing appropriate programmes for such groups, it will be important to take into account differential levels of skill, qualifications and experience. Formally skilled and/or experienced persons from these disadvantaged groups would not be in need of additional training, apart from normal familiarisation and induction procedures. Those with potential but less skills, qualifications and experience would need to be exposed to accelerated and intensive training aimed at upward mobility.

4.2.5 Quotas and Targets

It will be important to examine carefully the concept of "defined quotas" called for in the RDP. It might be more practical to work on the basis of measurable and achievable departmental targets reviewed from time to time.

4.2.6 Guidelines for Departmental Affirmative Action Programmes

Each department at the national and provincial level will be required to draw up a detailed affirmative action plan. Such plans will need to be consistent with the goals, objectives, norms and standards outlined in the Constitution and specified by the national government, particularly through its RDP White Paper.

Such plans will need to include, amongst other things:

4.2.7 Time-Frames

The results of affirmative action will have to be visible within the first two years, 1994 - 1996. In line with the objectives of the RDP all departments must define their affirmative action targets for the first two years, and present annual progress reports that will be subject to parliamentary scrutiny.

4.2.8 Monitoring and Evaluation

All departments will be required to prepare detailed plans for the internal monitoring and evaluation of their affirmative action programmes. In addition they will be required, as indicated above, to present an annual progress report for scrutiny by Cabinet so that special measures should be taken in cases where departments have failed to make visible progress towards their affirmative action targets within the two years stipulated in the RDP White Paper. Similar processes will be followed at the provincial level.

In order to fulfill its accountability to Parliament in accordance with section 209 of the Constitution, the Public Service Commission also has a major role to play in achieving greater representivity in the Public Service. In the development and implementation of affirmative action programmes, plans and measures, the Commission will be guided by government policy as enunciated in this White Paper and reviewed from time to time.

4.2.9 Legislation

It is envisaged that programmes of affirmative action will be strengthened by future legislation designed to ensure the active and correct implementation of such programmes according to the law. Such legislation will need to be introduced in Parliament as soon as possible, and it will have to be carefully dovetailed with the Labour Relations legislation currently being developed.

4.3 INSTITUTION BUILDING AND MANAGEMENT

A major focus of the transformation process is to build viable and self-propelling institutions of government which reinforce to the aims and objectives of the public service, which build for themselves a reputation for excellence among the communities they serve, and which are sustainable in the long term. This requires major changes in organisational structure and management philosophy of departments of government.

4.3.1 New Organisational Structures

In accordance with the tasks and principles set for the public service, organisational structures will need to be reviewed to ensure optimal delivery of services. Although clear lines of responsibility and accountability will still be required, the emphasis will be less on the application of rules and more on the creative use of consultation and team work. To reduce the annoying and wasteful delays which resulted from the old system of referring even the smallest decision to a higher authority, all staff in the new organisation will be encouraged to take decisions and solve problems within their own area of competence. A critical look will be taken at the number of hierarchical levels in order to promote the efficient and effective functioning of organisations.

These changes will need to be accompanied by a major shift in organisational culture, from a rule culture to one which is focused more on the achievement of tasks and the meeting of needs. Such a pronounced change in culture may not be universally welcomed, however, by management or staff. Training will therefore be required to explain the benefits of the new approach, to assuage misgivings, and to equip staff at all levels with the appropriate skills in team building and problem solving.

4.3.2 New Management Styles

A new philosophy of management needs to be developed, in which the resourcing, structure and culture of institutions is directed towards the satisfaction of needs, both of the public and of staff. This will require a major shift in management styles, attitudes and skills, away from the previous emphasis on directing and controlling and towards a new emphasis on communicating, consulting, supporting, motivating and delegating. Training for managers in this new philosophy will clearly be imperative.

4.3.3 Managing Change and Diversity

The managers of tomorrow will need to be skilled in handling the complex processes of change taking place around them, and will require continuous refreshing and updating in such management skills.

One of the dimensions of change, arising from the successful implementation of affirmative action programmes, concerns the question of diversity. Public service institutions will increasingly become rainbow work-places, representative of the cultures and peoples of South Africa. Such diversity could and should become a major source of strength for the service. But in the short term, at least, it is also likely to pose problems. Conflicts may arise over the infusion of new ideas and new ways of thinking, and due to misunderstandings of a cultural nature between people at work.

The increasing diversity of the public service will therefore need to be managed effectively, to maximise the benefits and minimise the problems. Managers will need training in the management of diversity, to provide them with skills in team-building and conflict resolution, as well as a basic awareness of differences in cultural values, interpretations, behaviours and sign systems. Basic language training will need to be provided for many workers and managers to augment their mutual understanding of each other.

4.3.4 Management Information Systems

If the process of administrative transformation is to lead to much more effective and accountable systems of policy-making, implementation and evaluation, accurate and accessible information will be needed. This will require the redesign and upgrading of existing information systems, particularly computerised systems, to increase the accessibility and accuracy of information, as well as to improve communication between and within departments, and between different agencies and levels of government. Improved financial information systems will also be required, to facilitate effective programme budgeting, tighter financial accountability, and rapid auditing.

Information systems are a strategic and costly resource which requires the development of human resource capacity to ensure optimal use and maintenance of the systems. To ensure an integrated and cost-effective approach to the development of such systems, close co-operation will be necessary between departments and provinces, and in particular with the RDP Office, the Central Statistical Services and the Department of Finance.

4.4 RESTRUCTURING AND RATIONALISING THE PUBLIC SERVICE

4.4.1 Restructuring

With the installation of the new government, a concerted programme of administrative restructuring has been embarked upon with the aim of correcting the distortions brought about by apartheid and establishing a public service that will efficiently and effectively deliver services and focus on integrated development. Thirty-three (33) National Departments have been established, together with nine (9) Provincial Administrations with their own Provincial Service Commissions. Powers to administer existing laws have been assigned to the provinces in accordance with the provisions of Schedule 6 of the Constitution. Provincial Governments are making progress, albeit with some difficulties, towards the integration of the administrations of the former "TBVC states" and "self-governing territories."

Restructuring is an on-going process which will need to be guided effectively. The Public Service Ministry and the Public Service Commission will in particular be required to provide guidelines within which individual departments will restructure. These will include objectives and time-frames. The objectives will need to include the meeting of new programme priorities by departments, in line with the RDP and relating in particular to the promotion of representativeness, integrated development, and improved quality and equity in service provision.

The integrated approach to governance demanded by the RDP will require inter-departmental collaboration. The Cabinet has already established inter-ministerial committees, and this approach will need to be adopted at all levels of the public service.

4.4.2 Rationalisation

The process of administrative transformation and restructuring is a difficult, complex, time-consuming and costly exercise. Of the many problems which will undoubtedly be encountered along the way, one is of particular importance. This relates to the availability of resources. South Africa already spends a relatively high percentage of its GDP on the public service, and the Government has indicated its commitment to bringing this percentage down over time. Few additional resources will therefore be available for the transformation process.

4.4.3 Rationalisation and Cost-Effectiveness

Careful planning is required to ensure that the rationalisation process leads to increasing efficiency and cost-effectiveness without penalising and reducing services to disadvantaged and deprived communities. A number of related strategies will be used for this purpose:

Individual departments will be required to produce strategic plans to indicate the efficient use of human and other resources, and to provide a basis for comparing services and efficiency by department and provincial administrations. Amongst other things, these should distinguish management and administrative costs from other personnel costs.

4.4.4 Rationalisation, Representativeness and Personnel Practices

It is important to stress that no public servant has an inherent entitlement to retain his or her particular post. Existing posts may therefore be deleted, and new ones created. Opportunities for greater representativeness at the management level can be expanded, for example, through the introduction of early retirement and retrenchment packages.

The classification and grading systems of the public service will be comprehensively reviewed to provide a basic personnel structure which will measure up to present and anticipated demands, and provide for the optimal utilization of available human resources. Personnel practices will be reviewed and adjusted to ensure efficiency and effectiveness in the appointment, promotion, training and development of public servants.

The Office of the Public Protector will provide a first level of complaint or appeal for civil servants who consider that their rights or interests are being adversely and unjustly affected by the rationalisation process. The Office will be entitled to investigate apparent cases of impropriety or to turn cases on to the Public Service Commission or the Constitutional Court.

4.5 IMPROVING PAY AND EMPLOYMENT CONDITIONS

4.5.1 Pay and Conditions

The Government recognises that a necessary precondition for the development of an efficient, honest and well-motivated public service, committed to a professional ethos and work ethic, is the introduction of more equitable pay and employment conditions for public servants. To this end the Government plans to ensure that an adequate minimum wage and, equal pay for work of equal value are introduced at all levels of the public service as soon as possible. Special attention will be given to the application of performance related pay.

In addition, appropriate career paths will be developed for all public servants, linked to the provision of widespread training opportunities. At the same time, the number of grades in the public service needs to be reduced, supporting an approach towards competency-based evaluation and multi-skilling.

Conditions for women will be improved by the repeal of previously discriminatory practices, relating in particular to housing and pension entitlements, as well as by reforms in the tax system, maternity leave and flexible working hours. Facilities and conditions for the disabled will also need to be substantially improved.

The Government envisages that pay scale differentials will be reduced, while ensuring fiscal sustainability . This will be achieved by significant raises at the bottom, from the current low base; and relative restraint at the top, recognising the need to maintain a salary scales which are equitable if not comparable to market rates.

4.5.2 Public Service Pension Funds

The operation of public service pension funds, particularly in some of the former "TBVC states" and "self-governing territories," have been marked by recent controversy and clearly require rationalisation. Some of the funds are seriously underfunded. This is of particular concern to the national government, provincial governments and the fund members.

The Government envisages the rationalisation of the existing funds into a single fund, and a comprehensive redetermination of the administration of the fund, including investment policy and practices.

The Ministry of Finance has advised that current draft legislation envisages that the rationalised fund(s) will be administered by a Board of Trustees. The Board will include representatives of employees and the state as employer. Consultation on the draft Bill will take place with representatives of all major stakeholders.

4.6 PROMOTING EFFECTIVE LABOUR RELATIONS

4.6.1 Towards Consensual Models of Collective Bargaining

The Government recognises that the relations between the public service as employer and public servants as employees will quite frequently be characterised by divergent views and interests. If these are not managed and harmonised effectively, conflict can easily result, as it very often did in the past, with serious and disruptive implications for service users.

For this reason the Government plans to move, and to encourage employee organisations to move also, towards more consensual models of collective bargaining based on effective negotiating structures and practices. If and when negotiations break down, the Government will naturally respect the constitutional right of workers to strike, particularly to break deadlocks. But it will expect the unions to use this right responsibly, as a last rather than first resort, thus minimising the disruption of public services.

An important step towards improving collective bargaining will be the negotiation of a uniform Labour Relations Act covering all workers. It is anticipated that this new legislation will substantially revise and improve strike procedures and dispute resolution. It will also have implications for the present Public Service Bargaining Council. It is proposed that the new bargaining arrangements take into consideration the need for effective representation and meaningful participation for provinces.

4.6.2 Increased Participation by Labour in Policy Formulation

Public service employees are key to effective service delivery and their participation in policy formulation should enrich policy design and facilitate smoother and more effective implementation. At the same time, the active involvement of public sector workers and their representatives in the formulation of policies that have a direct bearing on their own employment conditions should have a positive effect on labour relations and the emergence of a consensual collective bargaining process. If workers feel that their ideas and views have been taken into account in the framing of policies, they are less likely to object when the policies are implemented.

Issues that might jointly be addressed by management and workers in the policy formulation process would include:

Present conditions indicate that it may be advisable for wage negotiations and matters relating to policy formulation to be dealt with in separate arrangements. Negotiations in the Bargaining Council on wages and conditions of service which tend to be adversarial in nature, despite efforts to introduce more co-operative forms of negotiating. Policy-making on the other hand, is facilitated by a much more consensual model of negotiation. Alternative consultative mechanisms, such as a Public Sector Forum, will therefore need to be considered to facilitate greater worker participation in policy formulation, at both the national, provincial and departmental levels. Full consultation on alternative arrangements with employee organisations will be necessary.

4.7 PROMOTING A PROFESSIONAL ETHOS

The introduction of improved pay and conditions, effective career paths, greater opportunities for staff development and training, and more participatory forms of management should help to promote a more professional ethos amongst staff at all levels; and by so doing to contribute towards greater honesty, integrity and efficiency in the public service as a whole.

Other steps will be considered to facilitate this process. These include the introduction of a code of conduct for public servants and measures to eliminate corruption.

4.7.1 Code of Conduct

The introduction of a code of conduct is stressed, for example, in the RDP White Paper. Such a code, the White Paper argues, would "incorporate the principles of the new South African public service. The ethos should be professional in the most positive sense of the word; the public service must internalise the concept of serving the people. This Code must be enforced and annual evaluation of personnel should take into account compliance with the Code." (Para 5.10.1, p.126).

A draft code of conduct has now been developed and published. Comments and suggestions have been solicited by the Ministry and the Public Service Commission from a wide range of community organisations.

4.7.2. The Elimination of Corruption

The elimination of corruption within the public sector is an issue of considerable concern to the Ministry. In view of this, it is intended that a systematic programme will be introduced to prevent corruption and to punish offenders. Consideration is being given to the establishment of an Anti-Corruption Arm (ACA) within the Public Service Commission which will be mandated to detect and expose corruption in the public service. The ACA will be linked to the work of the Public Service Commission, the Public Protector and the police, while its activities will be jointly overseen by the Ministry and the Office of the Public Protector.

4.8 DEMOCRATISING THE PUBLIC SERVICE

The RDP calls for democratisation, which goes beyond the right to vote, in both the public and private sectors. This will require a comprehensive approach to the development of a democratic and accountable public service. At one level, a democratic approach will facilitate internal accountability and democracy within the operations of the service. At another level it will ensure that its relationships with the public are also transparent, consultative and democratic.

4.8.1 Internal Democracy

Steps need be taken to ensure that each department has built-in mechanisms for regular internal accountability. These mechanisms should promote a participatory approach to decision making on the part of both workers and management. Such mechanisms, including the possible establishment of a Public Sector Forum, have already been referred to in earlier parts of this section of this document.

4.8.2 External Accountability

If the public service is to fulfill its essential mission of serving the public and meeting their needs, it is imperative that the public has an important role to play in influencing and evaluating policy, both indirectly, through elected parliamentary representatives, as well as directly. The promotion of a democratic and developmental approach in the delivery of public services will help to ensure that community self-reliance is advanced and dependency on the state is reduced.

Earlier parts of this section of the White Paper have specified some of the steps that will be taken to improve Parliamentary scrutiny of the public service. At the more direct level, departments will be required to collaborate with relevant institutions within civil society, through bodies such as civics, residents and rate payers associations, other NGOs and private sector organisations. A set of criteria and working guidelines for such consultation and collaboration needs to be developed by Government.

In order to promote democratic accountability and transparency, it will be necessary to ensure that all members of the public have easy access to information, irrespective of their levels of literacy. In particular, it will be necessary to inform all citizens of the role of the Public Protector in making enquiries and filing complaints. In addition, the public will be made aware of their own responsibilities and obligations with respect to public affairs.

4.9 MANAGEMENT OF HUMAN RESOURCE DEVELOPMENT

The development of South Africa's vast human resources is one of the five key programmes of the RDP. This is because the development of the country's human resources is central to the realisation of all the RDP's strategic objectives.

4.9.1 Building Public Sector Capacity

Responsibility for developing the creative energies and talents of South Africa's diverse communities does not lie exclusively with the state. For this reason the government foresees that a variety of social forces and institutions will become its active partners in building capacity for good governance. These will include community organisations, private sector agencies and institutions of tertiary education.

The government, nevertheless, sees itself as playing a direct and active role in building public sector capacity. The development of this capacity will need to form part of the process of administrative transformation. To this end, there is a need for a strategic framework to promote the comprehensive mobilisation, utilisation, integration, training and development of human resources in the public service, at both the national and provincial levels. In developing such a framework, the following steps will need to be taken:

4.9.2 Public Service Training and Education

Training and education will assist the government to develop the professional capacities of public servants and to promote institutional change. Training, thus, can contribute to the strategic goals of the state in a number of ways:

First, it will enable public servants to acquire a new development oriented professionalism; this will entail the development of a new work ethic, knowledge and skills with which to implement the RDP. Training will also enable officials to reorientate many of the values and practices which they acquired under the previous dispensation.

Second, training, if properly conceived and structured, can be a powerful instrument to anticipate as well as facilitate the introduction of institutional changes within the public service. Training should thus become a key instrument for institution-building; for this reason it cannot be developed in isolation and must be integrated within the overall strategic plans of public sector organisations.

Third, appropriate training will assist public servants to develop a better understanding of the needs of the communities which they are serving, as well as a capacity to respond to these needs. Training should be used to rapidly develop a new civic consciousness amongst public servants, and to develop new knowledge and skills which can be applied in creating a community-centred public sector.

The public service has a need for managers who not only should have organisational and technical skills, but also the leadership and vision to innovate policies. Thus, loyalty to the government of the day should not preclude creative and visionary thinking on the part of public service managers.

To have optimal impact, training programmes must be directly and systematically linked to the wider processes of social and institutional reconstruction and development in civil society and within the state itself. For this reason:

4.9.3 Targeted Training and Development

As a basic principle, the government has adopted the view that all public servants, from the most senior to the most junior, require ongoing training as an integral part of their professional life. The training of senior and middle management must be linked to the processes and policy-making challenges defined by the RDP. The training of workers must be linked to the new emphasis on customer care and service delivery, the development of career paths and the reorganisation of grading systems within the public service. Among lower-level workers, this will necessitate the rewriting of job descriptions to meet the new skills and knowledge requirements of the RDP.

Training programmes will need to be flexible in order to maximise workers access to in-service training; this will include access to adult basic education. Such in-service training will need to be linked to the National Qualifications System (NQS). The training and career development of public officials will also need to be conducted in close cooperation with public sector trade unions.

A number of immediate training targets may be identified; these would include the following:

4.9.4 Changing the Value and Status of Training

For training to become a genuinely interactive process, there will need to be a move away from the undue emphasis on the role of 'experts' in the learning process. Whilst an important role remains for professional trainers, there is a strong need to combine didactic and participatory methods of teaching and learning. This would imply the need to create a learner-centred training environment, which recognises and builds upon the experiences of the trainees.

For training to become an effective tool of organisational and strategic development in the public service. there will need to be a comprehensive review of the relationship between in-service training bodies, the Public Service Commission, and other agencies of the public service.

4.9.5 The South African Management and Development Institute [SAMDI] and Provincial Training Bodies

The Public Service Commission (PSC) at a national level, and the Provincial Service Commissions at provincial level, are responsible for ensuring that a proper policy on training is followed. SAMDI which falls under the aegis of the PSC, is the single most important statutory body with respect to the provision of in-service training. Since the end of 1994, the composition and role of the SAMDI has been under review by the PSC, and an extensive process of restructuring is underway.

The role of SAMDI needs to be complemented by the inputs and programmes of provincial training bodies. It will also require greater flexibility in the current arrangement, so as to allow provincial training bodies the opportunity to make a more substantive contribution than previously to the provision of management training. SAMDI will thus need to jointly plan and coordinate the provision of training with all provincial training bodies.

4.9.6 The Need For External Training Provision

The government is well aware that the need for training currently outstrips the existing capacity to deliver, both at national and provincial levels. As a general principle, therefore, the government is open to the ongoing involvement of training organisations outside of the public service to contribute capacity building.

Under the previous dispensation public service training was largely conducted by the Training Institute (now SAMDI and departments). Supplementary training in management was offered by mainly white universities while a number of technikons provided additional technical training.

As the role of SAMDI is transformed, it is clear that its relationship with external training agencies will need to change. The Government is keen to promote greater involvement by historically-disadvantaged tertiary institutions in its efforts to restructure the public sector. Their participation is essential, for both ethical and practical reasons. Given sufficient scope to develop, furthermore, their contribution could make a decisive impact in terms of the institutional, social and cultural transformation of the public service.

The desire to rapidly develop the capacity of historically-disadvantaged institutions should, however, not be seen as excluding the involvement of all of South Africa's many tertiary institutions. Their inclusion should not only increase the overall capacity to build good governance, but should also provide important resources for democratic change.

While tertiary institutions may make important contributions in all spheres of education and training, it is certain that they will play a pivotal role in the provision of more long-term, formative training and learning programmes. Such programmes will provide more solid, all round skilling than is normally possible or feasible within short-term training programmes.

Community-based and non-government organisations possess a rich tapestry of knowledge, expertise and experience which should be directly and continuously used as a resource base for the public service. From these agencies public servants will be able to learn about the increasingly diverse and complex needs of local communities. They may also gain knowledge about negotiation and consultative skills, participatory learning and teaching, as well as human rights and civic consciousness training.

Apart from national institutions, government will also from time to time, and according to need, seek to encourage cooperation and exchange between training and development agencies inside South Africa and those outside the country. Ideally, this should take the form of institutional partnerships with a strong emphasis on local capacity building.

4.10 MONITORING AND EVALUATION

The establishment of appropriate mechanisms for the monitoring and evaluation of public sector programmes will be central to the process of administrative reform. This will need to be accompanied by the formalisation of channels of consultation. To this end, a Public Service Forum is envisaged up at which civil service managers, civil servants, public service unions, and reform agencies will have permanent representation. Structured opportunities for making representations at the Forum will be provided to non-members. The Public Service Forum will concentrate on negotiating and monitoring the internal reform of the public service.

The independent monitoring and evaluation of government programmes should be carried out on a regular basis. The Office of the Auditor General should carry out annual financial audits of all departments and provinces, as well as performance audits of a sample of programmes on a less frequent basis. The performance audit should be widened to include a review of the methods used and the levels of consumer satisfaction.

The Office of the Public Protector should be open to receive complaints from the public on service provision and programme execution, and should initiate its own investigations where serious allegations of improper conduct are made.

In order to give full effect to the processes of reform, it is planned to establish Transformation Units in each department. The membership of these units will be drawn from the staff of the departments themselves. The transformation units will be mandated to ensure that restructuring, representativeness, accountability, transparency, equity and cost efficiency are actively pursued within government departments. The work of the units will be co-ordinated by a Transformation Coordination Committee, situated within the Office of the Minister for the Public Service and Administration and the Public Service Commission. Transformation units and co-ordinating committees will also be established at the provincial level. Responsibility for the provincial coordination units will be assumed by either the Premier's Office or the Provincial Service Commission.

Part 5: Organisational Implications

5. In order to translate the many policy recommendations and guidelines identified above into a meaningful and co-ordinated strategy for public sector transformation, a number of additional steps must be taken at the organisational level. Three are of particular importance:

5.1 PROGRAMMES OF ACTION FOR PUBLIC SERVICE REFORM

Reform and restructuring of the public service will require the implementation of a number of action programmes. Amongst those required will be the following:

The three actions above need to be carried out urgently by a Presidential Commission composed of national, international and multilateral contributors knowledgeable in public service issues.

5.2 STRENGTHENING AND RESTRUCTURING THE REFORM AGENCIES

A wide variety of agencies will be involved in the implementation, co-ordination and monitoring of the transformation process. These will include, inter alia, the Ministry for Public Service and Administration, the Public Service Commission, the Office of the Public Protector, the Office of the Auditor General, the Provincial Service Commissions, and the political and administrative heads of departments at the national and provincial levels. Measures must be taken to strengthen the capacity of these agencies, as well as to clarify and, if necessary, restructure their respective roles. These will need to be accompanied by enabling legislation.

Although all of these agencies will have an important role to play in the reform process, there is no doubt that the principal responsibility for driving the process rests with the Ministry and the Public Service Commission.

5.2.1 The Role, Independence and Impartiality of the Public Service Commission

The Interim Constitution makes provision for an independent and impartial Public Service Commission composed of three to five Commissioners appointed by the President. The PSC is mandated under the Constitution to make recommendations, give directions and conduct enquiries regarding the organisation, administration, conditions of service, personnel administration, efficiency and effectiveness, and comportment of the public service. The Constitution further mandates the PSC to plan, implement, and evaluate programmes of administrative development. The PSC is accountable to Parliament to which it reports through the President

The PSC works closely with the Minister for the Public Service and Administration, who represents the Government in matters concerning the public service and administration. The role of the Commission in the system of administration is under review by the Constitutional Assembly as part of the process of drafting the final constitution.

5.2.2 Establishment of a Department for the Minister for Public Service and Administration

In order to better define the respective roles of the Public Service Commission and the Minister for the Public Service and Administration, an Office for the Minister has been established as a department in terms of the Public Service Act 1994, which will have a its new Director-General. The new Department will function as an entity separate from the Office of the Public Service Commission. This is the first step in the process of creating a viable executive structure for carrying out government functions.

This restructuring will be complemented if necessary by amendment of the Constitution to enable the Minister to assume some of the administrative functions presently under the ambit of the PSC and thus fulfill a more appropriate role as the implementer of reform and development in the public service. The development of an effective functional relationship between the Public Service Commission and the Minister and between the respective Offices, will continue to receive priority attention.

The division of responsibilities between the national PSC and the Department would need to replicated at the provincial level. National-provincial relations would be structured along the following lines:

Further research on this proposed restructuring will be undertaken, particularly with respect to its administrative and constitutional implications.

5.3 CONSULTATION AND CO-ORDINATION

The need for effective consultation within and outside the public service is stressed in this White Paper as a vital precondition for the success of the transformation process. The role of the proposed Public Sector Forum will be particularly significant.

Co-ordination of the transformation process will also be vital, especially if the process is to lead to the integrated approach to reconstruction and development envisaged in the RDP White Paper. The Minister for Public Service and Administration and the PSC will take the lead in this process, by ensuring that appropriate mechanisms are established to facilitate effective co-ordination between departments, as well as between the national and provincial tiers of government. If the proposed transformation units are set up as planned within individual departments, then one means of co-ordination would be the establishment of transformation co-ordination committees at both the national and provincial level to oversee and co-ordinate the activities of the different transformation units.

Part 6: Legislative Implications

In accordance with the Constitution [Section 212(1)], the transformation of the public service will need to be supported by appropriate enabling legislation.

6.1 REPEAL OF APARTHEID LEGISLATION

In implementing reforms within the public sector, the remaining apartheid statutes, proclamations, regulations and by-laws will need to be repealed or substantially revised.

6.2 REVISION OF INITIAL LEGISLATION

Recent legislation pertaining to the public service, including the Constitution (Act 200/1993), the Public Service Act (Proc. 103/1994) and the Public Service Labour Relations Act (Proc. 105/1994), represent important steps towards the creation of a new public service. This legislation, however, is of a transitional nature and will need to be revised to give full effect to the policies in this White Paper. This will include revision of many procedural rules in order to facilitate greater public participation in the public sector and in order to clarify procedures for appeal.

6.3 LEGISLATION ON FREEDOM OF INFORMATION

Existing administrative law will need to be revised substantially to accommodate forthcoming legislation on the freedom of information, since this will serve as a guide to the administration of official files and records. This legislation should stress the accountability which public officials have towards the legislative assembly and the public at large. It should also specify the procedures and structures to be followed in cases of administrative misconduct. Account will also need to be taken of the need to restrict access to some kinds of information where, for example, national security is threatened or where individual rights to privacy and confidentiality are likely to be constrained.

6.4 AFFIRMATIVE ACTION AND LABOUR RELATIONS LEGISLATION

The policy of affirrnative action in the public service will need to be carefully legislated and closely coordinated with the Labour Relations legislation currently being drafted. The need for a uniform Labour Relations Act will need to be seriously addressed if inequity and discrimination between labour sectors is to be avoided. This would also help to promote more effective labour relations at all levels, particularly by strengthening the mediation services, streamlining the industrial court system and entrenching union organising rights. To that end, the Department is committed to a process of continuous consultation with public service unions, employee organisations, and public sector offices (at central, provincial and local levels) in the drafting of any new legislation.

6.5 LEGISLATION ON REFORM AGENCIES

New legislation will be necessary to delineate the respective functions of the Ministry of the Public Service and Administration and the Public Service Commission, however this can still be done in terms of the existing legislation. The role of the Office of the Public Protector, likewise, will require further definition in order to become fully operational.

6.6 DRAFTING THE NEW CONSTITUTION

Attention will be paid to ensuring that the text of the new Constitution is informed by the developments that have taken place in the function, form and objectives of the public service, since 1993.

Part: 7: Financial Implications

7. The transformation of the public service and the implementation of the policies elaborated in this White Paper will incur inevitable financial costs. It is anticipated that the majority of these costs will be absorbed within existing departmental budgets, through the re-prioritising of expenditure and the achievement of efficiency savings. Some of the costs will not be absorbed, however, and will need to be accommodated within the national budget.

In the absence of a number of key studies on such complex issues as the financial implications of implementing a comprehensive programme of affirmative action or of establishing comprehensive training programmes, it is not possible to quantify the costs of administrative reform at this stage.

7.1 However, some of the costs likely to be incurred during the process of transformation are as follows:

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