PRESENTATION TO THE PORTFOLIO COMMITTEE ON
COOPERATIVE GOVERNANCE
AND
TRADITIONAL AFFAIRS
BRIEFING ON DRAFT REGULATIONS SETTING UNIFORM
NORMS AND STANDARDS FOR MUNICIPAL STAFF
SYSTEMS AND PROCEDURES
26 February 2013
Overview of Presentation
1.
Purpose of Presentation
2.
Background
3.
Briefings to the Portfolio Committee
4.
Consultation with SALGA, Unions
2 and Professional Bodies
5.
Progress on the development of a single set of Regulations
6.
Recommendations
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1. Purpose of Presentation
 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.
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2. Background
1.
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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;
2. Background (cont.)






2.
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.
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 managers during the 2012/13 financial year;

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 setting the duties,
remuneration, benefits and other conditions of service of senior managers were developed,
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and consulted with all key stakeholders.
3. Briefings to the Portfolio Committee
1.
Briefing sessions were held with the Portfolio Committee on:

24 April 2012;

15 May 2012;

21 August 2012; and

23 October 2012.
2.
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.
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3. Briefings to the Portfolio Committee (cont.)
(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.
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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)
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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.
4. Consultation with SALGA, Unions and
Professional Bodies
1.
During the process of consultation on the draft Regulations, SALGA raised the
following concerns:
(i)
(ii)
(iii)
(iv)
(v)
The implementation of the MSA Regulations and the Minimum
Competency Levels issued by National Treasury will constitute an overregulation of the sector – SALGA supports a single set of Regulations
issued by the Minister of CoGTA.
That bigger municipalities have specialised components than provided for
in the Regulations, and therefore provision should be made for deviation.
The Remuneration Framework should be informed by a scientific process.
That “dishonesty” should be inserted in the Regulations as an added
category of misconduct.
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.
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3. Consultation with SALGA , Unions and
Professional Bodies (cont.)
2.
Engagements with SAMWU:
SAMWU raised the following concerns:
(i)
(ii)
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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:


Section 71:
Section 72(2A):
Employment of dismissed staff and record of
disciplinary proceedings.
Bargaining council agreements.
The Minister’s regulatory powers
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.
3. Consultation with SALGA , Unions and
Professional Bodies (cont..)
Engagements with SAMWU (contd.)
The following concerns were raised by SAMWU:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
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The title of the Regulations should be expanded to cover all that is provided for in
the enabling legislation.
That there should be two different set of regulations dealing : 1) dealing with senior
managers, and 2) dealing with staff below senior managers.
The Regulations do not provide for contestation of unfairness of disciplinary
proceedings against senior managers.
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.
That assault should be inserted in the Regulations as an added category of
misconduct.
That temporary incapacity under regulation 31 should be replaced with additional
leave.
That the Regulations should rationalise remuneration grading for municipalities.
3. Consultation with SALGA, Unions and
Professional Bodies (cont..)
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.
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3. Consultation with SALGA, Unions and
Professional Bodies (cont..)
4.
The following Professional Bodies were consulted:

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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).
4. Progress on the Development of a
Single Set of Regulations
The draft Regulations were tabled before a Special MinMEC that was held on
16 November 2012.
The Special MinMEC resolved that -
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
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;
4. Progress on the Development of a Single Set of
Regulations (cont.)
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.
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4. Progress on the Development of a Single Set of
Regulations (cont.)

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
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4. Progress on the Development of a Single Set
of Regulations (cont.)
•Review senior
management staff
Legal
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
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•Develop successive
Staffing
•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
Performance and
Reward
•Job evaluation
systems
•Remuneration,
grading and
incentive
framework
•Performance
management
system and
evaluation
mechanisms
•Supervision and
management of
staff
4. Progress on the Development of a Single Set of
Regulations (cont.)
Skills Development
& Training
• Skills, expertise,
competencies and
qualifications for
appointment of staff
• Capacity building
within municipal
administrations
• Training and
development of staff
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Conditions of
Service
• 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
Labour Relations
• 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
Stakeholder
Engagement
• Stakeholder
engagement
design and
implementation
plan
• Dispute
Resolution advice
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!
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