Purpose of Presentation Background Briefings to the Portfolio Committee

2. Purpose of Presentation Background Briefings to the Portfolio Committee Consultation with SALGA, Unions and Professional Bodies Progress on the development of a single set of Regulations Recommendations 2

3. To brief the Portfolio Committee about progress made on the drafting of Regulations setting uniform norms and standards for municipal staff systems and procedures; and • To outline processes aimed at finalising the drafting of Regulations.

4. 1. The Municipal Systems Act (“the MSA)”as amended, empowers the Minister to make Regulations to provide for the setting of uniform standards for the following matters: • Municipal staff establishments; • Recruitment, selection and appointment of staff; • Skills, expertise, competencies and qualifications for appointment of staff; • Circumstances and periods under which acting appointments of staff can be made; • Job evaluation systems; • Remuneration grading and incentive frameworks for staff; • Conditions of service of staff; • Supervision and management of staff; • Promotion and demotion of staff; • Transfer of staff; • Grievance procedures; • Capacity building within municipal administration;

5. Training and development of staff; • Monitoring, measuring and evaluating of staff performance; • Investigation of allegations of misconduct and complaints against staff; • Termination of service; • A framework for organised local government to consult the Minister before embarking on negotiations in the bargaining council; and • Disciplinary procedures for staff, including corrective steps in the case of substandard performance by staff. 2. Due to the enormity 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 managersduring the 2012/13 financial year; • To be develop Regulations applicable to all other staffmembers 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 setting the duties, remuneration, benefits and other conditions of service of senior managerswere developed, and consulted with all key stakeholders.

6. Briefing sessions were held with the Portfolio Committee on: • 24 April 2012; • 15 May 2012; • 21 August 2012; and • 23 October 2012. • The following matters were 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 ensure a common interpretation and application of the Municipal Systems Amendment Act, 2011. Queries arose as a result of different interpretations; the Department engaged SALGA on this matter to address the problem.

7. (ii) How the Department intends to deal with persons who did not meet the requirements, or appointed against the spirit of the Regulations? The absence of the Regulations has created a “vacuum” in implementing certain provisions of the MSAA. The Municipal Systems Act provides that a person to be appointed as a municipal manager or manager directly accountable to a municipal 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. (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. Plans are afoot to finalise a draft programme in this regard.

8. 3. Briefings to the Portfolio Committee (cont.) (iv) Concerns about re-appointment of corrupt officials. Plans are afoot to develop an on-line case management database that would be used by municipalities to conduct reference checks on corrupt officials (i.e. over and above reference checks conducted outside of the sector). The Department is currently conducting a status quo analysis in selected municipalities to ascertain the adaptability of IT systems. (v) How the Department will ensure monitoring, implementation and compliance with the Regulations? The Regulations make it mandatory for municipalities to annually (annual reports) 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. Section 71 reports submitted to National Treasury on a monthly basis will be examined to strengthen initiatives to monitor compliance. (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. 8

9. 1. During the process of consultation on the draft Regulations, SALGA raised the following concerns: (i) The implementation of the MSA Regulations and the Minimum Competency Levels issued by National Treasury 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.

10. 2.Engagements with SAMWU: SAMWU raised the following concerns: (i) indicated that its engagement on the draft regulations should not be construed as support of the current provisions of the MSA which grants the Minister power (albeit in a somewhat qualified manner) to issue regulations and guidelines in the first instance: • 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. SAMWU expressed support for the Regulations with emphasis on issues raised hereunder.

11. Engagements with SAMWU (contd.) The following concerns were raised by SAMWU: (i) The title of the Regulations should be expanded to cover all that is provided for in the enabling legislation. (ii) That there should be two different set of regulations dealing : 1) dealing with senior managers, and 2) dealing with staff below senior managers. (iii) The Regulations do not provide for contestation of unfairness of disciplinary proceedings against senior managers. (iv) 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. (v) That assault should be inserted in the Regulations as an added category of misconduct. (vi) That temporary incapacity under regulation 31 should be replaced with additional leave. (vii) That the Regulations should rationalise remuneration grading for municipalities.

12. 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 Act (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 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.

13. 4. The following Professional Bodies were consulted: • Engineering Council of South Africa (ECSA); • Association of Municipal Electricity Undertaking (AMEU); • South African Institute of Accountants (SAICA); • South African Institute for Civil Engineers (SAICE); • Institute for Local Government Managers (ILGM); and • Institute for Municipal Financial Managers (IMFO).

14. The draft Regulations were tabled before a Special MinMEC that was held on 16 November 2012. The Special MinMEC resolved that - • a comprehensive single set of Regulations applicable to ALL municipal staff (all employees of the municipalities, including the municipal manager and managers directly accountable to municipal managers) be developed; and • the Regulations should cover all the regulatory powers of the Minister as highlighted in slides 4 and 5;

15. The DCoG has embarked on the following process to deal with the development of these Regulations: Phase 1 of Project: Scoping and Information gathering Research benchmarks, audit of legislation and analysis of information has been finalised. Phase 2 of Project: Policy Development The DCoG is currently busy with Phase 2 of the Project namely: • Development of working policy papers. • Facilitation of deliberations of the Project team and the technical specialists. Phase 3 of Project: Drafting of the Regulations Phase 3 will include the following activities: • Development of lay versions of the regulations • Consultation with technical specialists) and organised labour • Drafting of final version of the Regulations It is anticipated that a complete set of draft Regulations will be developed by the end of May 2013, and these Regulations will thereafter be subjected to a process of consultation.

16. The areas identified for the development of regulations have been divided into the following workstreams: • Legal Stream • Staffing Stream • Performance and Reward Stream • Skills Development and Training Stream • Conditions of Service Stream • Labour Relations Stream Further breakdown of the focus of the workstreams are contained in the ensuing slides

17. Legal Staffing Performance and Reward • Job evaluation systems • Remuneration, grading and incentive framework • Performance management system and evaluation mechanisms • Supervision and management of staff • Review senior management staff regulations • Review all legislation, including regulations and guidelines promulgated since inception of new system of local government (2000) to ensure uniformity and coherence • Review Local Government legislation for consistency, coherence and compliance • Review 2006 regulations and subsequent regulations in detail • Finalise lay version of all stream outputs • Develop successive drafts of all stream outputs • Municipal staff establishments • Recruitment, selection and appointment of staff • Circumstances and periods under which acting appointments of staff can be made • Supervision and management of staff • Promotion and demotion of staff • Transfer of staff • Termination of service

18. Skills Development & Training Conditions of Service Labour Relations • Stakeholder • Engagement • Skills, expertise, competencies and qualifications for appointment of staff • Capacity building within municipal administrations • Training and development of staff • Review all Bargaining Council outputs in respect of conditions of service and staff regulations and ensure integration • Regulations governing uniform and generic conditions of service • Stakeholder engagement design and implementation plan • Dispute Resolution advice • Grieprocedures • Investigation of allegatvance ions of misconduct and complaints against staff • Termination of service • Disciplinary procedures for staff, including corrective steps in the case of sub standard performance for staff • A framework for organised local government to consult the Minister before embarking on negotiations in the bargaining council

19. 5. Recommendations • 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. THANK YOU!