G Fraser-Moleketi: Labour Relations conference

26 March 2007

"Knowledge through dialogue: harmonising labour relations in the public
service"

Vice Chairperson
Colleagues
Esteemed international and local guests
Comrades and friends

It is not often that two organisations that one has an intimate knowledge
and involvement with, co-hosts a conference. I am therefore honoured to be
invited to deliver the keynote address at this special occasion.

I wish to congratulate both the PSCBC and the Office of the Public Service
Commission for arranging the conference. Because this once again proves that
institutions from different sectors can effectively work together when there is
a common goal.

The PSCBC not only serves as an invaluable conduit for the orderly
interaction between the Public Service as collective employer and organised
labour, but also plays an equally invaluable role in dispute settlement, which
is a key component of labour relations in general and in the Public Sector in
particular. The insights they gain from their activities stand them in good
stead to co-host a conference of this nature, and I express appreciation for
their presence.

The Public Service Commission (PSC), as constitutional oversight body,
according to Chapter 10 of the constitution, is responsible for guarding over
compliance with the constitutional principles governing public administration
in the Public Service through the processes of monitoring, evaluation and
investigation. However, the PSC also has a clear promotional responsibility in
respect of these constitutional principles. Being the initiator and
co-organiser of this conference fit firmly into this responsibility. Like the
PSCBC, the PSC is, as a result of its involvement in Public Service employees'
grievances and its oversight related monitoring and investigative capacities,
excellently equipped to arrange a conference of this nature. So we clearly see
why the two sides came together for the conference.

Two years ago I addressed the celebratory conference of the PSCBC. The theme
of the conference was "Celebrating a decade of social dialogue in the public
service." The conference allowed us a moment to reflect on the past, to
congratulate ourselves on making a successful transition from an era where
basic human and labour rights were absent to a democratic order where these
rights became constitutionalised, and to celebrate the achievement of the
transformation and restructuring of the public service. I am therefore pleased
to see that the theme of this conference is "Knowledge through dialogue:
Harmonising labour relations in the public service," because I believe it
perfectly compliments the earlier conference. Whereas the celebratory
conference focused on what had been achieved at that stage, this conference
looks at what needs to be done going into the future, be it the introduction of
new policies and practices, the enhancement of current policies and practices
or positional or attitudinal changes.

It is gratifying to see that the organisation of the conference has not been
done in isolation from academia and experts in the private sector. We need the
insights, resourcefulness and creativeness of all our experts to address our
uniquely South African challenges. Going through the list of guest speakers one
is struck by the diversity of expertise assembled for this conference. I am
also particularly encouraged to see a prominent labour input to this
conference.

Historically, the labour movement in South Africa has played an important
role in bringing about change in the country. They still do. In a sense, they
are the people's guardians, guarding jealously over the interests of their
members. So one would say the labour movement guards though in a different
manner to the Public Service Commission. Although government must in equal
measure guard over the interests of the country and its resources as a whole,
labour's input is invaluable to the State as employer. It ensures that
attention, effort and resources are steered towards relevant areas of people
management in the public service. It needs to be said that labour will always
be a valued and indispensable partner in people management in the public
service.

The conference theme is "Knowledge through dialogue." Dialogue is the
cornerstone of the labour relations environment, let alone a democratic
society. Social dialogue is defined by the International Labour Organisation
(ILO) to include all types of negotiation, consultation and the exchange of
information between representatives of government, employers and workers.
Industrial peace and economic progress are dependent on the successful
operation of structures and processes of dialogue. Not least amongst them are
the collective bargaining structures where labour and employer consult and
negotiate. In this regard the South African public service must surely rate
amongst the top exponents of successful collective bargaining through its
national, sectoral and departmental structures. To date parties have been able
to successfully deal with difficult and contentious issues such as
transformation and restructuring, pension and medical aid restructuring and
multi-term salary agreements.

Our colleagues who are here today, who are currently intensely involved in
the salary negotiations for the public service will no doubt attest to the
importance of dialogue in the negotiation process. And we are at a point in
negotiations where dialogue is indeed critical. Understanding the position of
the other party is impossible if it is not conveyed through a process of clear
and unambiguous dialogue. In the setting of a bargaining council where tension
sometimes rises and emotions become frayed, effective dialogue can suffer. I am
therefore encouraged to see the maturity in parties to the negotiations by
stepping back from time to time to engage in bilateral talks where the
atmosphere is hopefully more relaxed and where parties on a one on one basis
are able to explain and clarify their positions to one another.

Programme director and deputy chairperson, I do not know whether the timing
of this conference was meticulously planned to coincide with the salary
negotiations or whether the date was randomly selected. I do believe, however,
that it has come as a welcome respite to the negotiators of labour and the
employer who have been involved in a number of salary negotiation sessions this
year. As a matter of fact, I have been reminded that there have been five
rounds already. This conference gives them an opportunity, together with other
labour relations and human resource practitioners, to focus on other, equally
important, aspects of public service labour relations.

Harmonisation of labour relations in the public service is crucial. Our
quest to advance and improve service delivery to our people through a unified
system of public administration and management will be seriously compromised if
harmonisation of labour relations practices and policies cannot even be
achieved in the public service as currently defined. Bringing other organs of
State into the fold of an enhanced public service will bring with it dynamics
that would need to be moulded and governed into a harmonised future approach.
Chairperson, allow me to pause here for a moment to focus on the concept of the
single public service that seems to be eliciting much emotion.

Building an effective developmental state that is pro-poor is a central
objective of the government. The concept of a developmental state is not new.
It is enshrined in the Constitution and established and affirmed by the social
contract.

The overarching goal of a single system of public administration and
management that covers the three spheres of government is to give effect to
developmental goals by establishing seamless, integrated service delivery
through integration of service delivery institutions of government. It intends
facilitating this goal by ensuring that the single public service is and
functions as one by determining national norms and standards through
appropriate legislative and regulatory environment.

A number of imperatives dictate the need for a single public service.
Research has shown that many people have difficulty accessing government
services, often because of prohibitive transport costs. Initiatives aimed at
bringing government services closer to the people are already underway. These
include the Community Development Worker (CDW) Programme, Multi-Purpose
Community centres or Thusong Centres and the Batho Pele Gateway Project. These
initiatives go a long way in addressing the need for co-operative institutional
arrangements but they need to function well. The Thusong centres need to be
appropriately staffed (by multi-disciplinary teams) in order to ensure that it
is indeed a one-stop service centre.

One of the strongest arguments for a Single Public Service (SPS) is the
facilitation of mobility between institutions and spheres of government.
Numerous complications have arisen in the transfer of personnel especially as
regards conditions of service and related matters. The harmonisation of
conditions of service requires some form of rationalisation. The challenge is
to create a more cohesive workforce consisting of all spheres of government and
most importantly, a multi-skilled and mobile cadre of public servants to
deliver integrated services where the need exists.

Integrated service delivery is difficult due to the difference in the
service delivery models adopted by departments. In most instances, these are
not aligned to local government service boundaries nor are they aligned within
or between sectors. The introduction of an overarching legislative framework
will ensure that public service reform, the budgetary framework and planning is
aligned across the entire sector which will in turn ensure good governance and
accountability.

Supply and demand in the labour market increasingly presents a challenge to
the public service not only job creation, but also in the filling of vacancies.
As regards the skill deficiency and the mismatch between skills and vacancy
requirements, those with the critical skills needed by government do not
necessarily enter the public service. As government we are finding it difficult
to compete with the private sector to attract requisite skills and more
particularly, to stem the flight of skills to developed countries. And I do
want to state the skills challenge is one confronting the labour market at
large, furthermore, it is not restricted to the South African labour
market.

One of the purposes of the Joint Initiative for Priority Skills Acquisition
(JIPSA) is to align education and training with the actual needs identified for
the developmental state. A single public service will allow scarce skills to be
utilised where they are most needed.

Management and leadership are key in making service delivery happen. What is
of great concern is the fact that the majority of senior managers are
concentrated in head offices, thus removed from the 'service delivery coal
face.' In order for provinces to achieve their service delivery targets, the
redeployment of staff to these areas must be considered.

The public service has established the Senior Management Services (SMS) to
recognise and enhance the role of managers and professionals in the execution
of public functions at national and provincial levels. Against this background,
it is therefore of critical importance that a distinct management dispensation
for all managers, including professionals, be developed for clear
career-pathing.

The overall objective of the establishment of a distinct management cadre
for the Single Public Service is to promote a notion whereby members will not
simply be attached to fixed posts within a specific institution of government
but rather recognised as members of an overarching body of competent senior
managers available to the State for optimal utilisation.

Chairperson, with these few comments, I will leave the issue of the single
public service, but to note that time is running out for us to put our own
house in order.

In his State of the Nation Address on 9 February President Mbeki said
"Compliance levels within departments, have been somewhat mixed. Obviously this
cannot be allowed to continue�" - I wish we all support the President's
sentiments. Non-compliance with national policies and collective agreements is
not an option. To enforce compliance through dispute resolution mechanisms or
even designated agents appointed by bargaining councils is an indictment on the
public service.

I am not intimating that all non-compliance cases lodged are legitimate
cases. Many awards on these matters have gone in favour of the employer. As
part of harmonising labour relations in the public service both employer and
trade unions have a responsibility. Submitting frivolous and vexatious cases
does not assist matters. On the other hand, the lack of proper implementation
of modalities can lead to poor understanding of employees' rights, which in
turn can lead to unnecessary disputes.

As part of the amendments to the Public Service Act a provision similar to
the one of financial misconduct found in the Public Finance Management Act is
being proposed. This will undoubtedly strengthen compliance in the public
service. The provision calls for compulsory disciplinary action to be taken
against an employee who fails to comply with the Act or a regulation,
determination or directive made in terms of the Act. All collective agreements
will in future be deemed to be determinations made under the Act.

Programme director, many interesting and important labour relations and
human resource matters will be addressed during the course of this conference.
Without pre-empting discussions, any further than I may have, allow me to make
a few cursory remarks regarding some of the areas.

In a workplace of over one million employees, where discipline is dealt with
on a decentralised basis, one can expect consistency to suffer to some extent.
It, however appears as if there is still sometimes uncertainty as to what
constitutes serious and dismissible offences. The Labour Relations Policy for
the public service is unambiguous in stating, as a policy directive, that the
public service has a zero tolerance approach towards transgressions such as
fraud, corruption and sexual harassment. The Labour Relations Act in Schedule 8
"Code of Good Practice: Dismissals" also gives guidance on areas that
constitutes serious misconduct. These include gross dishonesty, wilful damage
to property of the employer, wilful endangering of the safety of others,
physical assault and gross insubordination.

Yes, I am aware that the mere allegation of a serious transgression does not
constitute automatic dismissal, but once such a transgression has been proved,
one would expect consistency in sanctions unless of course mitigating
circumstances are of such a nature that it outweighs the aggravating
circumstances and the seriousness of the transgression.

More and improved targeted training of chairpersons of disciplinary hearings
appear to be needed. Departments must invest in the training of employees who
are identified as chairpersons of disciplinary hearings. If not, service
delivery will suffer.

I expect the South African Management Development Institute (SAMDI) to play
a leading role in equipping chairpersons of disciplinary hearings to perform
their functions effectively and fearlessly.

I note that the conference will be addressing the area of grievances as
well. The grievance rules for the public service where simplified and
streamlined in 2002 through the adoption of PSCBC Resolution 14/2002 and the
gazetting of the rules by the Public Service Commission. The rules removed the
former highly bureaucratic procedure that started with a step 1 "submit your
grievance to your immediate supervisor" and ended with step 5 or 10 (whatever
it was).

The procedure is now much more flexible yet the disputes about the
interpretation and application of the resolution abound. What are the disputes
about, the failure to adhere to the prescribed timeframes?

Ladies and gentlemen, this is unacceptable. How can we hope to achieve an
effective labour relations environment in the public service when this basic
condition is not complied with?

Let me dwell on the area of dispute resolution for a moment. I am astounded,
even baffled, at the diverse awards coming out of bargaining councils on the
same topic. One arbitrator orders the promotion of an employee and the next
one, on the same set of facts, rules that he or she cannot second guess the
employer. One arbitrator finds that he or she cannot interfere with the
sanction imposed by the employer. Another arbitrator boldly declares that a
sanction is too harsh. I note that panellists of the councils have been invited
to the conference and I hope some of them are here.

I am sure that you will agree that through dialogue between panellists and
dispute resolution sections of the councils these divergent approaches to cases
can be addressed, narrowed and eventually harmonised.

Programme director, the Labour Relations Act (LRA) and the constitutions of
the various bargaining councils determines the rules within which parties have
to conduct themselves in the field of labour relations. Playing outside the
rules destabilises the labour relations environment and leads to adversarial
relations. Unprotected strike action, especially in the essential services,
should therefore not occur in the public service. Through effective dialogue
this type of action can be avoided.

I am encouraged by the fact that the conference is to focus on the
positioning of human resources to support the promotion of sound labour
relations. Harmonising the work of these two areas is key to the success of the
implementation of policies and agreements. Especially with regard to collective
agreements it is imperative that the details of such agreements be clearly
conveyed and explained to human resource practitioners who are ultimately
responsible for the implementation of the agreements. I believe that more
effort should be put into this area. Human resource practitioners on the other
hand should be extremely meticulous when implementing collective agreements, so
as to limit any disputes. Correct implementation is, however, not the only
requirement. Equally important is the pace with which agreements are
implemented. Agreements must be implemented as soon as possible after signing
of an agreement. Waiting for months or even years to implement agreements
destabilises the labour relations environment and normally leads to financial
and budgetary problems. Close co-operation between the human resource and
labour relations sections of a department is absolutely essential. Monitoring
the implementation of collective agreements should also be one of the key
duties of the labour relations officer.

On the topic of the labour relations officers, I find it strange that the
role of these functionaries in the public service has lately been the subject
of so much debate. I see that it will again be addressed in this conference. I
am aware of the Public Service Commission's report on this matter. My view is
that persons in this field of activity are employed by the employer and paid by
the employer to assist and advise the employer. Employees are assisted in
labour relations matters by shop stewards and the employer has in most, if not
all sectors, agreed to allow full-time shop stewards paid for by the employer
to assist employees.

For labour relations officers to attempt to play both sides of the fence can
only lead to difficulties. To advise an employee against the employer just to
be told by the employer to act on its behalf against the very employee, clearly
leaves the officer in no-man's land. There will be distrust in such an officer
from both sides. Obviously this does not mean that a labour relations officer
cannot advise an employee on procedural issues. If the title "Labour Relations
Officer" in the labour relations environment equates to neutral and
"independent" the title is obviously not appropriate for public service
circumstances.

I believe that this matter should be settled as soon as possible so that
there is no uncertainty amongst these functionaries as to what their role
should be.

Programme director, it is laudable that labour relations also sees itself
playing a role in halving poverty and unemployment by 2014. I believe that this
conference should take note of the President's State of the Nation Address as
well as the Minister of Finance's budget speech. Both placed emphasis on
sectors identified for growth, inter alia the South African Police Service,
Education and the Health Services.

Let me conclude with the words of the President "� the message that our
collective experience communicates to all of us is that, working together, we
can and shall succeed in meeting the common objective we have set ourselves as
a nation, to build a better life for all �"

Colleagues let us not lose focus and let us not waiver in giving effect to
our Batho Pele principles, 'we belong, we care, we serve.'

Ladies and gentlemen, use this opportunity to learn through participation
and debate. This conference should be a legacy to the future let us make it an
annual event!

Issued by: Department of Public Service and Administration
26 March 2007