1. Purpose of Presentation

2. Background

3. Briefings to the Portfolio Committee

4. Consultation with SALGA, Unions and Professional Bodies

5. Progress on the development of the Regulations

6. Recommendations

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To brief the Portfolio Committee about progress made on the development of Regulations setting uniform norms and standards for municipal staff systems and procedures; and

To outline processes aimed at finalising the drafting of Regulations.

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1. The Municipal Systems Act, as amended (“the MSA”), empowers the Minister to make Regulations to provide for the setting of uniform standards for, amongst others, the following matters: Municipal staff establishments; Recruitment, selection and appointment of staff; Skills, expertise, competencies and qualifications for appointment of staff; Job evaluation systems; Remuneration grading and incentive frameworks for staff; Conditions of service of staff; Promotion and demotion of staff; Transfer of staff; Grievance procedures; Monitoring, measuring and evaluating of staff performance; Investigation of allegations of misconduct and complaints against staff; Termination of service; and A framework for organised local government to consult the Minister before

embarking on negotiations in the bargaining council.4

2. Due to the scope of this project and the extensive consultations involved, a two-pronged approach on the implementation of the MSA was adopted, namely:

To develop Regulations setting the duties, remuneration, benefits and other conditions of service of senior managers during the 2012/13 financial year; and

To be develop Regulations applicable to all other staff members during the 2013/14 financial year.

In fulfilment of this legislative mandate, draft Regulations setting the duties, remuneration, benefits and other conditions of service of senior managers were developed, and consulted with all key stakeholders.

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1. Briefing sessions were held with the Portfolio Committee on: 24 April 2012; 15 May 2012; 21 August 2012; 23 October 2012; and 26 February 2013.

2. The following matters were previously raised by the Committee:

(i) What transitional measure did the Department put in place in the run-up to the implementation of the MSA?

The Department issued Circular 19 of 2011 to provide contextual clarity and to ensure a common interpretation and application of the MSA. Queries arose as a result of different interpretations; the Department engaged SALGA on this matter to address conflicting messages that were communicated.

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(ii) How the Department intends to deal with persons who did not meet the requirements, or appointed against the spirit of the envisaged Regulations?

The absence of the Regulations has created a “vacuum” in implementing certain provisions of the MSA. The Act provides that a person to be appointed as a senior manager may be appointed to that position in terms of a written employment contract. According to the legislation, such contract can only be amended by agreement between parties or be terminated in terms of the Disciplinary Regulations. Any deviation from the legislative prescripts will have financial implications for municipalities – municipalities were advised accordingly.

(iii) Whether municipalities would be capacitated on the implementation of the new Regulations?

Workshops will be conducted in the nine provinces to capacitate municipalities on the implementation of the Regulations.

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(iv) Concerns about the re-appointment of corrupt officials.

The Department is in the process of developing an on-line case management database that would be used by municipalities to conduct reference checks on corrupt officials (i.e. over and above the routine reference checks that are normally conducted with credit bureaus and academic institutions when verifying qualifications).

The Department is currently in the design phase of this IT system, and intends launching this database before the next financial year of municipalities.

(v) How the Department will ensure monitoring, implementation and compliance with the Regulations?

The Regulations make it mandatory for municipalities to annually provide reports to the MECs and the Minister. This will provide a basis upon which national and provincial government will monitor compliance with legislation. Other avenues include quarterly reviews of Outcome 9 and Local Government Turn Around Strategy reports.

(vi) Are there any cases submitted for intervention by the Minister in terms of the MSA?

Cases are referred for Ministerial intervention from time to time. These matters are attended-to by the Department in consultation with the relevant province/s, where necessary.

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3. Briefings to the Portfolio Committee (contd.)

1. During the process of consultation on the draft Regulations, SALGA raised the following concerns:

(i) The implementation of the intended Regulations and the Minimum Competency Levels issued by National Treasury (with the concurrence of the Minister of CoGTA) will constitute an over-regulation of the sector – SALGA supports a single set of Regulations issued by the Minister of CoGTA.(ii) That bigger municipalities have specialised components than provided for in the Regulations, and therefore provision should be made for deviation.(iii) The Remuneration Framework should be informed by a scientific process.(iv) That “dishonesty” should be inserted in the Regulations as an added category of misconduct.(v) Chapter 6 dealing with “Bargaining Council Arrangements” must be moved towards the end to ensure that the Regulations flow – Consultation protocols currently being addressed with the FFC.

Consensus was reached with SALGA on all of the above matters.9

2. Engagements with SAMWU:

SAMWU raised the following concerns:

(i) Raised concerns on:

Section 57A: Employment of dismissed staff and record of disciplinary proceedings.

Section 71: Bargaining council agreements. Section 72(2A): The Minister’s regulatory powers.

(ii) expressed its intentions to challenge section 56A of the MSA (dealing with political rights of municipal managers and managers directly accountable to municipal managers) in the Constitutional Court – application made on 24 January 2013.

However, SAMWU expressed support for the Regulations with emphasis on issues raised hereunder:

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Engagements with SAMWU (contd.)

The following concerns were raised by SAMWU:

(i) That there should be two different set of Regulations, as follows: A first set dealing with senior managers; and A second set dealing with staff below senior managers.(ii) The Regulations did not provide for contestation of unfairness of disciplinary proceedings

against senior managers.(iii) That the 10-year ban on the re-appointment of staff charged for serious misconduct

should be extended to other potential candidates from outside local government, such as the public service, education, police, etc.

(iv) That assault should be inserted in the Regulations as an added category of misconduct.(v) That temporary incapacity under Regulation 32 should be replaced with additional

leave.(vi) That the Regulations should rationalise remuneration grading for municipalities.

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3. Engagements with IMATU:

The following concerns were raised by IMATU:

(i) That dishonesty and gross negligence should be inserted in the Regulations as an added category of misconduct.

(ii) Consultation protocols contemplated in section 71 of the MSA (between organised local government and the FFC and Minister) should be incorporated in the Regulations – IMATU expressed concerns that the absence of these protocols is used to undermine the integrity of the bargaining council.

(iii) Unless powers and functions of municipalities are clustered, the current practice of bloating of administration may persist.

(iv) Initiatives to regulate the pension / retirement or medical aid schemes should align to the wage collective agreements.

(v) Supports the appointment of section 56 managers in a permanent capacity to halt the exodus of people with scarce skills from the sector.

The Regulations were amended to cater for issues raised by organised local government and labour.12

4. The following Professional Bodies were consulted:

Engineering Council of South Africa (ECSA); Association of Municipal Electricity Undertaking (AMEU); South African Institute of Chartered Accountants (SAICA); South African Institute for Civil Engineers (SAICE); Institute for Local Government Managers (ILGM); and Institute for Municipal Finance Officers (IMFO).

Inputs that were made by the Professional Bodies informed the competence

framework / requirements that are annexed as a Schedule to the draft Regulations.

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Pursuing the two-phased approach, the following time-lines are envisaged to finalise this set of Regulations:

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No. Activity Timeframe

1. Workshops held to afford key stakeholders an opportunity to provide technical input to the regulations 3-5 April 2013

2. Incorporate written inputs into Regulations 10 – 16 April 2013

3. Regulations submitted to Parliament and any further amendments made 2 – 31 May 2013

4. Ministerial approval to gazette Regulations obtained 31 May 2013

5. Regulations promulgated for implementation 1 June 2013

6. Regulations rolled-out to all municipalities June – November2013

7. Support provinces and municipalities on implementation Ongoing

The Department has also begun a process of developing a set of Regulations to deal with all municipal employees that fall outside the senior management category.

A steering committee comprised of representatives from the following organisations has been established to oversee this project:

SALGA; SAMWU; IMATU; DPSA; FFC; and LGSETA.

Policy papers are being developed on various focus areas (workstreams), and in some areas, legislative provisions are also being developed.

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The following work-streams have been established:

Legal Stream Staffing Stream Performance and Reward Stream Skills Development and Training Stream Conditions of Service Stream Labour Relations Stream Stakeholder Engagements Stream

Further breakdown of the focus of the work-streams are contained in the ensuing slides

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1. Develop lay version of the various regulations consult it with the relevant project structure/s

April 2013

2. Obtain Minister’s approval to publish the Regulations 

May 2013

3. Consultation with key stakeholders to obtain technical input to the regulations 

June 2013

4. Incorporate written inputs into Regulations 

July 2013

5 Regulations submitted to Parliament and any further amendments made 

August 2013

6. Incorporate inputs if any August 2013

7. Submit the Regulations for approval by the Minister / Promulgation September 2013

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This will include the consolidation of other existing Regulations in order to ensure a single set of Regulations are in place (to provide for uniform norms and standards for municipal staff systems and procedures).

Transitional provisions will be included in the Regulations to provide for its seamless implementation by municipalities.

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It is recommended that the Portfolio Committee:

• notes the progress made towards the development of the draft Regulations; and

• notes the processes aimed at finalising the draft Regulations.

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6. Recommendations

THANK YOU!