Department of Labour’s Compensation Fund (CF) is to engage on a national roadshow to promote the concept of decentralisation which is intended to propel the operational efficiency of the organisation.
Decentralisation is an initiative whereby services of the Compensation Occupation Injuries and Diseases Act (COIDA) are now extended and rendered at provincial level, rather than be solely provided at the CF’s head office in Pretoria (Tshwane). The initiative to introduce decentralisation in the provinces is intended to bring COIDA services closer to the people and stakeholders.
In 2009 Decentralisation was piloted in Limpopo, Free State, Kwa-Zulu Natal and Eastern Cape provinces with the view of improving the turn-around time in processing claims. In December 2010, the Fund decided the pilot was to be expanded to the remaining provinces; Gauteng; North West; Northern; Western Cape and Mpumalanga.
The Compensation Commissioner, Shadrack Mkhonto accompanied by board’s Chairman Mongezi Mngqibisa, will lead a delegation on this national tour.
Mkhonto said the latest initiative follows a national pilot to test the efficacy of decentralising the services of the Compensation Fund, which had proven successful. The decentralisation is expected to be implemented in the new financial year which starts in April 2012, Mkhonto said.
He estimated that the cost of the decentralisation would be about R274-million. Mkhonto reassured employees of the Fund that no retrenchments would occur out of the unfolding process.
“This restructuring will instead result in a number of employment opportunities including contract workers,” emphasising that the headcount would be increased from the current 711 to more than 1000 in the new structure.
The CF was in the process of delivering letters of placement to employees who would be transferred to the provinces where delivery takes place, he said.
The Commissioner expects the operations at CF head office to be lean. He said the speed of rolling out decentralisation would be determined by readiness of the provinces in infrastructure in terms of accommodation and furniture among others.
“Prior to the decentralisation’s pilot all information and documentation had to be sent to the national office for registration, adjudication and payment. We felt from the feedback of the stakeholders and clients that this arrangement was frustrating. Before the decentralisation the turnover time for registering and adjudication was about 90 days and this has now been reduced to 60 days, and we feel that there is still room for further improvement.
“The pilot programme cannot continue indefinitely. Soon we will want to implement the decentralisation and phase out the pilot as and when provinces are ready. A key component to the decentralisation has been the approval of an organizational structure and accommodation of COID staff in the provinces,” Mkhonto said.
According to Mkhonto another element in the decentralisation process has been the move away from manual processing to the introduction of electronic system since October 2011. Mkhonto said the key message at the roadshow would be explaining what the decentralisation process was all about? Why was it being implemented? What impact will it have on the service providers, and service delivery!
Mkhonto said that a number of change management sessions have been held with staff on the implication of decentralisation.
“We will not only expect questions in our engagements, but also expect inputs as we engage all our stakeholders on how to improve service,” he said.
The purpose of these road shows is also to address provincial management and COID staff about the CF decentralisation process and other developments that are taking place at the Fund. The meetings will also be extended to the Stakeholders representatives of the Compensation Fund such as Organised Labour, Medical providers, Business organisations, shop stewards, etc.
The suggested programme for the day is that Commissioner and Board meet with management in the morning and with stakeholders in the afternoon.
The roadshows are planned as follows Emalahleni, Mpumalanga (February 8); Western Cape (February 10); Limpopo (February 14); Northern Cape (February 17); North West (February 21); Free State (February 24); Gauteng (29 February) Eastern Cape (6 March) and KwaZulu-Natal (March 13).
The Compensation Fund is a public entity of the Department of Labour whose function is to compensate workers against injuries, disability, illness, diseases and death sustained during work.
In the period ending 30 March 2011 the Fund posted a whopping R13,5-billion surplus. The Fund raises its revenue from annual once-off levies from employers. In the same period the underlying asset base rose from more than R28,1-billion to R29,4-billion. The Fund’s total investments as at the end of the period under review sit at R27, 6-billion.
Enquiries:
Dikentsho Seabo
Tel: 012 319 9443
E-mail: dikentsho.seabo@labour.gov.za
