Leading the Public Service to Higher Productivity Presidential Public Service Remuneration Review Commission Presentation to Portfolio Committee on Public Service and Administration 19 June 2013 – Cape Town

Leading the Public Service to Higher Productivity 2 Scope of the Presentation ___________________________________ Introduction Purpose of the Commission Terms of Reference of the Commission Composition of the Commission Criteria for the appointment of Commissioners Secretariat for the Commission Methodology Other Support Staff Progress on the Establishment of the Commission Duration of the Commission

Leading the Public Service to Higher Productivity 3 Introduction ___________________________________ In his State of the Nation Address (SONA), the President announced the establishment of a Public Service Remuneration Review Commission The State has a responsibility to ensure that compensation for state employees commensurate with an increase in productivity PSCBC Resolution 1 of 2012 directs the review of the Remuneration Policy of the Public Service, with the educators receiving priority The Commission will act independently Parties will be at liberty to make representation before the Commission

Leading the Public Service to Higher Productivity Purpose of the Commission ___________________________________ The Commission is appointed to investigate remuneration and conditions of service in the public service and public entities listed in Schedule 3A and 3C of the Public Finance Management Act (PFMA), 1999, (Act No.1 of 1999) Remuneration of educators will receive priority Investigate matters relating to: Organisational development; Job grading and job pricing; Recruitment, appointment and promotion, Human resource planning; Performance management systems, policies and practices. 4

Leading the Public Service to Higher Productivity Terms Of Reference Of The Commission ___________________________________ The Commission must review the remuneration and conditions of service policy in the public service and make recommendations concerning: a fair, equitable and efficient remuneration system in the public service; the Benchmarking of public service remuneration and conditions of service relative to market remuneration; inefficiencies in the remuneration structure as a result of factors such as excessive remuneration or inappropriate organisational design in ensuring fairness and equity; 5

Leading the Public Service to Higher Productivity Terms of Reference of the Commission cont. ___________________________________ the current pay progression and bonus scheme in terms of its capacity to maximise service delivery without excessive wage costs; general trends in salary level, structures and wages the principles which define the wage bill ceiling for fiscal stability a suitable job classification framework for the public service to establish the link between pay and responsibilities of specific jobs i.e. nurses, doctors, educators, accountants, economists, statisticians etc 6

Leading the Public Service to Higher Productivity the uniform job grading system in order to improve job equity throughout the public service a sustainable framework for recruiting and retaining skilled employees measureable key performance indicators for the public service which may be used to evaluate individual and departmental performance (including PMDS); against salary levels 7 Terms of Reference of the Commission cont. ___________________________________

Leading the Public Service to Higher Productivity Composition of the Commission _____________________________________ The Presidential Commission will comprise: A Chairperson A Deputy Chairperson Five (6) ordinary members 8

Leading the Public Service to Higher Productivity Criteria for the Appointment Of Commissioners _____________________________________ Appointment of Commissioners will be informed by the area of speciality. Key among these would be: Understanding of the public service regulatory frameworks Remuneration and market analysis Labour law Understanding of the trade union movement Research and investigative skills Basic understanding of economic principles Excellent written and oral communication skills Excellent problem solving skills 9

Leading the Public Service to Higher Productivity Secretariat for the Commission _____________________________________ It is proposed that the Chairperson appoints a Secretary of his choice with strong administrative skills and experience. 10

Leading the Public Service to Higher Productivity Methodology _____________________________________ The Chairperson will determine the methodology of conducting the work of the commission including the drafting of the project plan. 11

Leading the Public Service to Higher Productivity Other Support Staff _____________________________________ It is recommended that support staff with the following skills be made available to the Commission: Report writing Remuneration Job grading and job evaluation Labour relations Understanding of trade union movement Market analysis/ benchmarking Costing; Statistics Actuarial studies/ financial modelling Econometrics 12

Leading the Public Service to Higher Productivity Progress on establishment of Commission _____________________________________ Terms of Reference have been developed The Commission will commence with its work soon as the proclamation has been Gazetted 13

Leading the Public Service to Higher Productivity Duration of the Commission _____________________________________ It is envisaged that the commission will complete its work over a period of eight (8) months and that a further two months will be required for the commission to complete the final report. 14

Leading the Public Service to Higher Productivity thank you