Working Together to Assure the Delivery of Quality Services to

Communities

An IMATU presentation

To the Ad Hoc Parliamentary Portfolio Committee - Cape Town

2 to 4 February 2010

1

Overview

• IMATU – A Local Government Stakeholder

• Reasons for service delivery challenges – the crisis – an IMATU perspective

• IMATU’s proposed solutions

2

IMATU – A Local Government Stakeholder

• Our trade union is built on democratic principles

• We are not politically aligned• We represent 70 000 members country wide at

all municipalities• We are a founder member of the South African

Local Government Bargaining Council• We are affiliated to FEDUSA

3

Past Attempted Interventions

• Comments and inputs on legislation and proposed amendments to legislation (Municipal Systems Act, Municipal Structures Act, Public Administration Management Bill, etc)

• Via the SALGBC: Services Working Group Local Government Sector Summit

• Continued opposition to the privatisation of Local Government Services (e.g. iGoli 2002)

• Legal action (e.g. Primary Health)

• CoGTA Ministerial Strategic Task Team

4

Reasons for the service delivery challenges – the crisis – an IMATU perspective

In broad terms:

• Governance and Accountability

• Human Resources

• Municipal Services

• Constitutional Structure of Local Government

5

Governance and Accountability

Interference in the Administration

• Executive Mayors and Councilors– With recruitment and selection processes– In the appointment of staff and contractors– Tender irregularities– Nepotism

• Role and duty of the Municipal Manager and subordinate staff

6

Governance and Accountability

Role of Contractors

• Procurement and tender irregularities:FavouritismNepotismCorruption, fraud, theftSelf Enrichment

• Equally applies to managers responsible for procurement

7

Human Resources

Core Issues:

• Non filling of vacancies and skills retention• Continuous restructuring• Lack of uniform pay scales• Disciplinary procedures• Non functioning of Local Labour Fora• Fixed Term Contracts• Casualisation of Employment

8

Human Resources

Non-Filling of Vacancies and Skills Retention

• Local Government is the primary point of service delivery • Service delivery is labour intensive• ± 100 000 posts shed since 1996• Filling of posts stopped, frozen or no money on budget• Posts are not filled, services are then not rendered (or

are outsourced to profit-driven private contractors and companies)

• Competency concerns in respect of filled posts• Lack of institutional knowledge• Lack of required performance standards

9

Human Resources

Non-Filling of Vacancies

• Finance Managers 400 Human Resources Managers 300 Accountants 5 000 Internal Auditors 600 Valuers 250 Civil Engineers 600 Registered Nurses 400 Electricians 600 Accounts Clerks 4 000 Truck Drivers 670 Drainage and Sewerage Works 400 Fire Fighters 800

LGSETA statistics on vacancies at municipalities in 2009

10

Human Resources

Lack of Skills and the Failure to Retain Skills

• Erstwhile municipal employees re-enter Local Government as contractors at substantially higher rates

• Relevant Ratios: Employee: Per Capita

Cape Town 1: 110

Umzimvubu 1: 1 485

11

Human Resources

Lack of Skills and Failure to Retain Skills

• Employee ratio per capita (Electricity Reticulation)Ngqushwa 1: 84 223

• Employee ratio per capita (Potable Water Services) Oudtshoorn 1: 4 178

• Employee ratio per capita (Sanitation)Ngqushwa 1: 2 844

• Employee ratio per capita (Refusal Removal) Oudtshoorn 1: 42 346

12

Human Resources

Vacancy Rates

Makana 40%Witzenberg 35%Winelands D.M. 35%Greater Tzaneen 32%Mosselbay 29%Tshwane 26%Mangaung 25%Information supplied by municipalities to IMATU during 2009 annual wage negotiations

13

Human Resources

Lack of a Uniform Pay Structure

• Amalgamation of municipalities from over 800 to 283

• Disparity in pay

• Lack of equal pay for equal work

• Municipal Managers and those managers directly accountable to municipal managers employed on excessive remuneration packages

14

Human Resources

Continuous Restructuring

• 1994 – A new democracy - over 800 municipalities

• Enactment of the Municipal Structures Act and Municipal Systems Act

• Further restructuring to 283 municipalities

• Outsourcing by many municipalities (Johannesburg municipality - iGoli 2002)

• Political control of municipalities and political factions within governing parties at municipalities

15

Human Resources

Continuous Restructuring

• Job Security and Job Satisfaction:Pay parityRelocationPlacements

• Restructuring ongoing and more planned:Organisational re-designsRemoval and replacement of senior management

structures (massive package payouts)Public Administration Management Bill Proposed 17th Amendment to the Constitution

16

Human Resources

Disciplinary Procedures

• Suspensions for prolonged periods (on full pay)

• Suspensions without fair or valid reasons

• Attorneys and advocates acting as Presiding and Presenting Officers at enormous (wasted) costs

• Also applies to dispute resolution representation in minor disputes – senior advocates appearing in placement disputes, for example

17

Human Resources

Non Functioning Local Labour Forums

• LLFs established by collective agreement for workplace (municipal level) engagement between employers and trade unions (IMATU and SAMWU)

• Not functioning – in most instances due to employer conduct:Lack of quorumsLack of mandatesTrust breakdown

18

Human Resources

Fixed Term Contracts

• “Carrot” of better remuneration, benefits, etc.

• Municipalities invest in such employees

• Very few contracts are renewed and skills lost to other sectors and employers

• Municipalities cascading down the roll out of contacts to levels far below the intention of section 56 and 57 of the Systems Act – e.g. City of Johannesburg

19

Human Resources

Casualisation

• Outsourcing of municipal services to contractors

• Employees are exploited:No job securityLiving wages are not paidLeading to industrial action (one of the major causes

of strikes in local government over the past 3 years)

20

Municipal Services

Lack of Infrastructure Development and Maintenance• Roads• Electricity• Sanitation• Potable Water• Sewerage Systems• Information Technology

• Outdated hardware and software• Different software programmes operate at the same

municipality • Non-replacement of water and sewerage pipes and water meters

in terms of international standards• Billing Systems collapse (e.g. Project Phakama in Johannesburg)

21

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Municipal Services

Lack of Infrastructure Development and Maintenance

• Due to:Poor billingPoor collection of rates and taxesPoor management of debtors Loss of existing assets due to lack of maintenance Lack of maintenance lead to losses (e.g. unaccounted for

water in Johannesburg is between 34 and 37 %)

• Intergovernmental Framework not addressing service delivery shortcomings

Municipal Services

Erosion of Municipal Services

• Privatisation• Outsourcing• Examples:

iGoli 2002 – Income generating services (electricity and water) transferred to companies

Outsourcing of Fire Services (e.g. in Benoni)Privatisation of water (e.g. Nelspruit)

• Basic human services should never be in the hands of the private sector

23

Constitutional Structure of Local Government

• Intergovernmental Relations Framework

• Impact of migration patterns

• Overlap/uncertainty in respect of services delivered by Local Municipalities and District Municipalities

• Appointment of Municipal Managers and other Senior Managers in terms of sections 56 and 57 of the Municipal Systems Act

24

IMATU’s Proposed Solutions

Governance and Accountability• Clearly defined roles, responsibilities and functions for politicians

and officials• Regulation of the tender processes as a whole• Harsh penalties for breaches of tender processes:

Criminal charges if conduct is illegal or unlawful Individual civil liability (for losses/damages suffered by the

municipality) Removal from office No re-deployment or appointment in another municipality Strict monitoring and enforcement of tender and procurement

policies in terms of the MFMA An oversight body similar to SCOPA

25

IMATU’s Proposed Solutions

Human Resources• Determine minimum service levels required per capita• Develop organisational structures accordingly• All posts must have minimum entry level qualifications and

experience requirements• Uniform (national) recruitment and selection policy

• A uniform pay structure for municipalities for all employees, inclusive of Municipal Managers

• Adherence to the Rule of Law in respect of the application, compliance with and enforcement of municipal legislation

• Municipal and SALGA officials to act as disciplinary presiding and presenting officers (internal capacity)

26

IMATU’s Proposed Solutions

Human Resources (Continue)

• Compliance with time frames in respect of suspensions as provided for in the relevant collective agreement

• Local Government stakeholders (IMATU, SAMWU and Municipality) commitment to make LLFs functional

• Fixed term contracts limited to Municipal Managers, Managers directly responsible to Municipal Managers and specific categories of employees (e.g. those in the office of the Mayor or seasonal workers, etc)

• Fixed term contract employees should still be employed on the conditions of service applicable to all municipal employees and

within approved pay structures• No outsourcing

27

IMATU’s Proposed Solutions

Municipal Services

• Accountability in respect of spending of the capital budget on infrastructure development and maintenance

• Revisit Intergovernmental Relations Framework • Stricter application of debtors’ control and management• No outsourcing or privatisation of municipal services• If outsourcing cannot be stopped, stronger regulations

required:Ensure minimum wages and benefits are paid (as

applicable in the SALGBC)Contractors that breach regulations to be barred from

receiving future tenders28

IMATU’s Proposed Solutions

Constitutional Structure of Local Government

• Revision of the role and functioning of, and necessity for, District Municipalities

• Clear minimum requirements for appointment of Municipal Managers and other Senior Managers

• CoGTA scrutiny (even ratification) of the appointment of Municipal Managers and other Senior Managers

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Conclusion

• Please refer any further enquiries on this presentation to the IMATU National Office:

IMATU National Office

47 Selati Street

Ashlea Gardens

Pretoria

Telephone: (012) 460 6276

Facsimile: (012) 460 842

Email: willem@imatu.co.za

Reference: Mr. S. Shongwe/ Mr. W. van Heerden