1. PROGRESS ON THE IMPLEMENTATION OF RESOLUTIONS FROM MINISTERIAL TASK TEAM Presented by: CDC Human Resources 24 April 2013 Portfolio Committee

2. 1 Document ref number Confidential  The Ministerial Task Team was established during a Ministerial Consultative Forum meeting held on 11 February 2013.  DCS management representatives on the Task Team have also had interactions with Government Negotiators at DPSA, ably led by DDG: Labour Relations and Rewards, General Khumbula Ndaba to discuss matters involving DPSA.  This presentation will report on the progress registered in respect of the following matters: Pay Progression less 3% in between notches Group One and Two of 2008 Pay Progression for certain OSD Categories Implementation of OSD Phase One and Two for Artisans Performance Bonus payment for 2012/2013 Extension of ELRC for Educators in DCS Absorption of Learners Control Room Operators INTRODUCTION

3. 2 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS Pay Progression less 3%GPSSBC Resolution 2 OF 2009 provides for the implementation of the 3% Pay Progression bi-annually. DCS paid all qualifying Officials, however some Officials were paid less then the required 3% Pay Progression. DCS engaged with DPSA on this matter and DPSA gave correct notches and the Technical task team comprising of both parties did the costing and effected the payment 4 000 Officials who were on the identified three notches which were less 3% were adjusted to the next higher notch on 28 March to 02 April 2013. The payment went through on 08 April 2013.

4. 3 Document ref number Confidential 3 CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS Non-payment of Pay Progression to officials who are on the maximum level of their salary notches. GPSSBC Resolution 2 of 2009 does not provide for personal notches or movement beyond the maximum notch attached to a scale or grade. The initial translation measures to the OSD dispensation did not provide for personal notches salary scales. The 496 on personal and maximum notches have reached a ceiling in the production level and further progress/vertical mobility can only be achieved through open competition and appointment into higher posts. It must be mentioned that these official will still qualify for grade progression when due. Identification, funding, creation and filling of advanced production level and supervisory level posts in line with GPSSBC Resolution 2 of 2009. An opinion is held that no immediate solution is available since the challenges with personal notches is not only limited to DCS, but rather a wider Public Service issue. Parties continue to engage.

5. 4 Document ref number Confidential 4 CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGESS Non-payment of overtime for Nurses. Non-payment of overtime for Nurses since the implementation of the 7-Day Establishment in line with PHSDSBC 1 OF 2007. Prior to the OSD, nurses worked 40 hours Monday to Friday; work performed over weekends and Public holidays was paid as overtime. In 2008 the OSD for Professional nurses was implemented, and it does not talk to working hours for nurses. A road show was held with all regions and the working hours of professionals and occupations not covered by the OSD were raised. It was decided that nurses will have to work their 40 hours which will be stretched over Saturday, Sunday and Public Holidays. This was not accepted by some Nurses and they lodged a dispute, and the outcome thereof was in favour of the Nurses. The Department will be appealing this outcome. Remunerate nurses for overtime worked. Parties continue to engage.

6. 5 Document ref number Confidential CHALLENGESPROBLEM STATEMENT PROPOSED SOLUTION/PROGRESS Conditions of service for Nurses. Change of the conditions of services for nurses. Proposal that the conditions of service of nurses should be restored in line with OSD for Nurses. Parties continue to engage. Pay Progression for Social Workers Non-payment of Pay Progression for Social Workers in line with the OSD. Payment of pay progression before the end of the current financial year (2012/13). The matter has been resolved, pay progression for Social Workers for 2011/12 has been effected.

7. 6 Document ref number Confidential 6 CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS ArtisansAbout 600 Correctional Officials were translated as Artisans with the implementation of the OSD for Artisans (GPSSBC Resolution 4 of 2009). According to Labour, Artisans who were initially appointed as Correctional Officials were not afforded the opportunity to make a choice between being translated to Centre-Based or Non-Centre-Based. The non-related trades such as Locksmith, Gunsmiths and Textile Workers were found not to qualify for OSD for Artisans had to be accommodated in the CO OSD. Organized labour requested information on research which informed the translation of Locksmith, Gunsmiths and Textile Workers to be classified as Centre Based. The affected employees to be translated back as Correctional Officials. According to DCS, all Artisans who were appointed as Correctional Officials first and later qualified as Artisans were given a choice between the 2 OSDs i.e. CO and Artisans. Only those who were initially appointed as Artisans were not granted that choice. Artisans should be allowed to continue practising their profession under their respective OSD like all other professionals on OSD e.g. Educationists, Social Workers etc. HR will conduct audit to verify the number of affected officials provided by organized labour (PSA).

8. 7 Document ref number Confidential CHALLENGESPROBLEM STATEMENT PROPOSED SOLUTION/PROGRESS Ring-fenced students of 2008.Non-translation of Ring-fenced students to the original level 5 upon qualification. 970 students from Group 1 of 2008 qualified for salary upgrade even before the OSD implementation hence they were backdated in 2012. However, 999 of their Ring-fenced colleagues (Group 2 of 2008 ) were not translated as they had not yet been declared competent on 1 July 2009. They only attained their competency status in October 2009. Group 1 and 2 Officials were appointed at the same time. However, Group 1 were sent to the colleges first due to the fact that the collages could only accommodate 1030 students at one time only. Restoration of parity between two Groups i.e. adjustment of Group 2 Officials to the same status as Group One. There is a consideration to look into Group 2 matter and effect the adjustment. The costing was done and awaiting approval. Parties continue to engage.

9. 8 Document ref number Confidential CHALLENGESPROBLEM STATEMENT PROPOSED SOLUTION/PROGRESS Promotion policyNon-existence of a Promotion PolicyEstablishment of a Promotion Policy All OSD Resolutions make provision for Pay Progression, Grade Progression and also career pathing which provides for upward mobility to all employees covered and even those not covered by the OSD. The normal promotion policy was done away in the Public service by PSCBC Resolution 7 of 2000, as from 1 July 2000. Parties continue to engage.

10. 9 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION Educator Labour Relations Council Resolution 4 on Educators. Non extension of ELRC Resolution to Educators in DCS. Extension of ELRC Resolution 4 of 2009 to Educators within DCS. Implementation of the Settlement Agreement in this regard. The Department of Correctional Services and DPSA met and engaged on the matter. A draft Resolution was then developed and presented at the GPSSBC for adoption. Parties at the GPSSBC could not agree and the Resolution was not signed in a meeting that took place on the 18 th March 2013. Parties continue to engage.

11. 10 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS 2 ND Phase OSD Correctional Officials Phase 2 of OSD for Correctional Officials was only implemented in respect of 360 Officials due to the differences in the interpretation clause 11 of GPSSSBC Resolution 2 of 2009. The implementation was based on an implementation directive from DPSA. Consequently, a greater number of Correctional Officials have been excluded from the 2 nd phase of the OSD for Correctional Officials. Challenge of interpretation of the above clause. Implementation of the clause 11 of Resolution 2 of 2009. The matter was arbitrated on and is now at the Labour Court. Parties continue to engage.

12. 11 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION Merit AwardNon-payment of Merit Awards to qualifying Officials Payment to be made. The matter has been resolved. Qualifying officials have been paid.

13. 12 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS Backdated OvertimeNon-payment of overtime worked beyond 40 and 45 hours for NCB and CB respectively since the implementation of the 7 - Day Establishment. Labour claims that in terms of Resolution 2 of 2009 implemented in July 2009 (Annexure C) stating in Clause 17 that all hours worked beyond 40 and 45 hours per week for Non-Centre Based and Centre Based Officials respectively is considered as overtime and must be paid. Many of current shift models and rostering patterns work on a 14 day cycle where staff work more than 45 hours in the first week and less than 45 hours in the second week, averaging out the working hours on 90 hours every 14 days. The challenge is that when the 7 - Day Establishment was implemented there was no Averaging Agreement signed, and therefore Labour claims current averaging of working hours is unlawful and not in line with BCEA Chapter 2 paragraph 2. Organized Labour was part of the road shows where Resolution 2 of 2009, the new shift models, rostering patterns and the 7- Day Establishment were explained to Officials. Payment of the backdated overtime. Parties continue to engage.

14. 13 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION Backdated Overtime (Continued)Difference of opinion in terms of interpretation of this particular clause 17 of Resolution 2 of 2009. As at September 2011, the claim was R1.5 billion and it grows at an estimated R34 million per month until an amicable solution has been reached. Parties continue to engage.

15. 14 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION Security at Correctional CentresShortage of personnel at various Correctional Centres is having a negative impact on the ability of the Department to achieve its mandate as per its Vision, Mission and Mandate. Expedite work-study to determine the staffing norms and levels. The current guidelines that have been developed on staffing norms will be presented at NATMANCO and then to the Ministerial Task Team. The long term plan is to have a staffing model developed scientifically for the Department. A request for proposals will go out in June 2013 for this exercise. The envisaged results of this undertaking will be used to motivate for more funding from National Treasury during the current financial year for extra positions needed in DCS.

16. 15 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS Control Room OperatorsLack of upward mobility for Control Room Operators and utilization in Correctional Centres. Control Room Operators were appointed in 2008. Their salary level on appointment was level three. The group has attended a two-week orientation program on Correctional Services. This group cannot be absorbed nor utilized in other areas of DCS operations at Centre-level on account of the fact that they have not attended the 12 months Learnership program. However, due to staff shortages, some of the centers have been utilizing the Control Room Operators in other areas of the operation. Control Room Operators to be sent to the college. The matter has since been resolved. A decision was recently taken to send the 451 Operators to DCS Colleges effective from 8 April 2013. Their successful completion of the program will enable DCS to eliminate the current risk of deploying unqualified personnel to critical areas of the operation outside the Control Rooms. It will also facilitate upward mobility of the Control Room Operators as they will now be able to apply for other positions within DCS.

17. 16 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS Non-implementation of Collective Agreements *GPSSBC Resolution 1 of 2006. Failure to review the Collective Agreement after one year as contained in the agreement. *Memorandum of Understanding (MOU), (Settlement Agreement). Failure to fully implement the provisions of MOU, e.g. Leave Credit and Death Benefits. *Settlement agreement on leave policy. Misinterpretation of the Settlement Agreement on leave. Circular no 5/3 dated 15 February 2013. *Inconsistent application of leave policy. Policy on incapacity and ill health retirement (PILIR). The Resolution will be reviewed as per the terms of that Resolution. The current Ministerial Task Team will engage on the matter to ensure the full implementation of the MOU. Full compliance of the PILIR policy, An instruction to be given by the relevant delegated authority to comply fully. PILIR is a Collective Agreement reached in the PSCBC between the State as Employer and Labour Parties.

18. 17 Document ref number Confidential CHALLENGESPROBLEM STATEMENTPROPOSED SOLUTION/PROGRESS Non-implementation of collective agreements (Continued) Inconsistent application of leave Policy, Policy on Incapacity and Ill Health Retirement (PILIR). DPSA appointed Proactive Health Solutions (PHS) as Health Risk Manager (HRM) for DCS in 2003 and the contract expired in 31/12/2012. The selection and departmental contracting for the new Panel of Accredited HRMs by DPSA has been suspended due to a legal challenge brought in the High Court by Pro Active Health Solutions, an unsuccessful bidder interdicting DPSA from appointing new a new Health Risk Manager. DCS is currently not able to implement PILIR policy to comply with PSCBC Resolution which requires the Employer (through HRM) to investigate an employee’s application for Incapacity Leave within 30 days. Backlogs of Incapacity Leave and Ill health Retirement applications are therefore inevitable. Full compliance with Leave Policy and PILIR policy. DCS has engaged DPSA on this matter and Labor as well. DPSA instructed that all TIL and ILR applications be kept safely until the new service provider is appointed.

19. 18 Document ref number Confidential CHALLENGESPROBLEM STATEMENT PROPOSED SOLUTION/PROGRESS Removal of factors that affect the success of the Relationship by Objectives (RBO) Non-implementation of agreements and abuse of power by some managers e.g.: *Qalakabusha *Ncome *Krugersdorp. Re- instatement of all dismissed members and withdrawal of pending cases. Krugersdorp: Two-person Task Team by RC Gauteng is working on the matter. KZN: Settlement Agreement signed on 10-12 August 2011 will be applied to both Qalakabusha and Ncome. It was resolved that a smaller task team comprising of POPCRU, PSA and the DCS will be established to deal with this matter. Relationship by Objectives (RBO): Referred to the 04 April 2013 for the updating of the programme.

20. 19 Document ref number Confidential CHALLENGESPROBLEM STATEMENT PROPOSED SOLUTION/PROGRESS Housing allowanceNon-payment of Housing Allowance to Public Service Act (PSA) appointees and Non-Centre based Correctional Officials residing in State accommodation. Implementation of the Housing Policy The department to conduct an audit and Organized Labour to provide name-list of the affected Officials. Privatization / OutsourcingAllegations that there is rampant privatisation in the following areas of DCS Operations: IT, PPP’s Model, and Catering. Parties agreed that CDC GITO will be invited to make a presentation on the IT Business Plan, in the process, outlining the IT procurement needs. In respect of Catering, it was noted that there is currently a feasibility study being conducted by DCS into this area. On the issue of PPP’s, the statement that was previously issued by the organisation on this issue was noted.

21. 20 Document ref number Confidential CHALLENGESPROBLEM STATEMENT PROPOSED SOLUTION/PROGRESS Absorption of LearnersNon - absorption of Learners upon their graduation from the DCS Learnership programme. Absorption being proposed in order to alleviate staff shortages and create a talent pipeline. Absorption into posts as they become available. The matter has been resolved. DCS took a decision to absorb Learners in 2012. Entry level will be absorbed through learnership.

22. 21 Document ref number Confidential 21  In order to create a constant supply of entry-level workforce, Learners who successfully complete their Learnership are retained on contract subject to operational needs.  There Learners (now referred to as Correctional Officials) and absorbed into permanent entry-level positions based on attrition rates at entry-level.  On 1 March 2013 regions were to absorb 654 Contract Workers into permanent positions as per the table below: ABSORPTION OF LEARNERS RegionTotal No. of vacancies including projections GAUTENG139 LIMPOPO/MPUMALANGA/NORTH WEST68 FREE STATE/NORTHERN CAPE127 WESTERN CAPE74 EASTERN CAPE61 KWAZULU/NATAL176 HEAD OFFICE9

23. 22 Document ref number Confidential REGION NO. OF LEARNERS APPOINTED AS AT 31 MARCH 2013 INCLUDING 01 APRIL 2013 NO. OF LEARNERS REMAINING ON CONTRACT Head Office711 Eastern Cape5844 Western Cape77124 Free State & Northern Cape1053 Gauteng115123 Kwa-Zulu Natal8993 Limpopo, Mpumalanga & North West0144 TOTAL451542 NUMBER OF LEARNERS ABSORBED AS AT 31 ST MARCH 2013)

24. Thank you