Government Rationalization Program EO 366 dated 04 October

Government Rationalization Program EO 366 dated 04 October 2004

Why is There Need to Rationalize § Technological Change § Shifts in core functions § Overlapping/duplicating functions § Changes in systems of work § Structures that have outlived their usefulness

What the Program is about… Making Government ü Focus efforts on vital/core functions/improve service delivery § It is function-based § It means doing right things (effectiveness) in efficient, accountable and transparent way § It involves eliminating redundancies/ overlaps/duplication § It aims to improve delivery/support systems § It will redound to refocusing resources to priority areas

What the Program is about… Coverage ü All Departments of the Executive Branch, including all agencies and GOCCs under/attached to them Exclusion Police û Military û Teachers û Health Workers û

Myths and Truths about Program § Myth 1: Program is about eliminating jobs to cut budget deficit Truth: It aims to improve govt effectiveness by doing right things, improve efficiency and accountability for performance; PS savings of Program to be retained in Depts/ agencies

Myths and Truths about Program § Myth 2: It is an early retirement program for all Truth: Only personnel whose functions would be declared redundant could avail of benefit package, with incentives

Myths and Truths about Program § Myth 3: It is coercive Truth: Personnel in redundant functions have option to stay in government

Steps in the Rationalization Process 1. Dept Secretary to notify DBM when to start effort § Effort could start anytime from June 4 to October 3

Steps in the Rationalization Process 2. Dept Secretary to create CMT and sub. CMTs § Dept Secretary to appoint members of CMT and notify DBM when effort starts § CMT/sub-CMT to include union or rank and file representative

Steps in the Rationalization Process 3. CMT to do the following: § Prepare and implement internal and external COMPLAN to communicate effort to stakeholders (i. e. , personnel who may be affected, clients) ØDepartment/Agency COMPLAN to be consistent with overall COMPLAN § Conduct strategic review to identify areas for rationalization/improvement

Steps in the Rationalization Process 3. CMT to do the following: § Prepare Rationalization Plan for whole Dept, including attached agencies/GOCCs Ø May consult clientele, technical experts, academe and other stakeholders Ø Depts/Agencies which have substantially completed plans may submit earlier

Steps in the Rationalization Process 3. CMT to do the following: § Set up internal mechanism to address/ resolve issues/complaints of affected personnel § Assist Secretary in mitigating impact of Program and actual implementation of effort

Steps in the Rationalization Process 4. Dept Secretary to notify affected personnel on action regarding their employment § Notification to be done not later than ten (10) working days prior to submission of Plan to DBM § Affected personnel given two (2) months from notice to decide on option; no forced retirement/separation

Steps in the Rationalization Process 5. Conduct activities to assist affected personnel § Counseling § Referral to CSC Placement § Arrange trainings on livelihood/investment opportunities

Steps in the Rationalization Process 6. Departments/Agencies to submit Rationalization Plan to DBM § In case of non-submission, DBM submits recommendation to President 7. Review and approval of Rationalization Plan for implementation § DBM to review Plan in 1 month § Submit recommendations to President

Timeline for Rationalization Program Period to Notify DBM on Start Date 4 months Preparation of DBM Rationalization Review Plan of Plan 2 months Implementation OP of Approval Plan 1 month 2 months

Contents of the Rationalization Plan 1. Core functions, programs, activities, services 2. Shifts in policy directions, functions, programs, activities 3. Areas for downsizing/phasing out 4. Areas for strengthening 5. Shifts in organizational structure, staffing and resource allocation

Contents of the Rationalization Plan 6. Financial restructuring plan, in case of GOCCs/GFIs, to ensure viability 7. Internal and external communication plan indicating specific methods/ strategies 8. Draft EO to formalize changes

Prohibited Acts During Plan Preparation Up to Approval 1. Filling of vacant positions (original appointment, promotion, transfer or reemployment) 2. Renewal of contracts/appointments of personnel on temporary/contractual/ casual/job order basis 3. Hiring of contractual/casual/job order employees

Options for Affected Personnel A. Remain in government service and be placed to other agencies needing additional personnel B. Avail of voluntary retirement/ separation package with the appropriate incentive

Option A: Placement 1. Affected personnel to submit to Agency Personnel Officer 3 priority agencies for reassignment (CSC to issue list of agencies needing more personnel) 2. Reassignment by CSC to other agencies needing additional personnel within 2 months § CSC to explore possibility of reassigning to LGU-

Option A: Placement 3. Compensation of placed personnel to be transferred to recipient agency, excep those reassigned to LGUs 4. No diminution in salary and benefits, except allowances for functions no longer undertaken 5. Position of transferred personnel in recipient agency co-terminus with incumbent

Option A: Placement 6. Placed personnel has full rights to all benefits common to all government employees, including CNA incentives; in case of difference between CNA benefits in mother and in recipient agency, to enjoy larger benefits for 1 year 7. Personnel who, later, objects to new assignment, deemed retired/separated without incentive

Option B: Voluntary Retirement/ Separation § Retirement gratuity under RA 1616 and refund of GSIS retirement premiums, without incentive § Benefit under RA 660 or RA 8291, plus ff incentives: Ø ½ month of present basic salary per yr of govt service for those with 20 yrs of service and below Ø ¾ month of present basic salary per yr of govt service, computed starting from 1 st yr, for those with 21 -30 yrs of service Ø 1 month of present basic salary per yr of govt service, computed starting from 1 st yr, for those with 31 yrs of service and more

Option B: Voluntary Retirement/ Separation § Those with less than 3 yrs. of govt service, avail separation gratuity under RA 6656, plus incentive Affected employees’ years of service beyond age 59 not subject to incentive No employee to receive less than P 50, 000 as ret/sep gratuity benefit from both NG and GSIS Separate guidelines on incentives and related benefits of agencies and GOCCs/GFIs exempted from SSL to be issued

Additional Requirements § Abolition of a funded position per employee who opts for voluntary retirement/separation § Retired/separated personnel not to be appointed/hired in Executive Branch within 5 years, except in educational institutions or hospitals

Appeals Mechanism 1. Employee may file complaint with CMT within five (5) working days from receipt of notification that position is affected 2. CMT to resolve issue within five (5) working days 3. Appeal may be filed with Department/Agency Head within 10 working days from submission of Plan

Appeals Mechanism 4. Department/Agency Head to render decision within 15 working days from filing 5. Affected personnel may further appeal Agency Head decision to CSC within 10 working days from approval of Plan by President 6. CSC to render decision within 30 working days from filing of appeal

Potential Causes of Appeals 1. No union or rank and file 2. 3. 4. 5. representative in CMT/sub-CMT Non-notification of affected personnel Deviation from Sections 3 and 4 of RA 6656 (Government Reorganization Law) on order of placement of personnel Actions implemented not in approved Plan Violations of provisions of IRR

Use of Savings § PS savings generated to be retained in Department to fund: Ø Priority programs and projects under Ten-Point Agenda of Administration Ø Salary increases/incentives of government personnel, subject to guidelines to be issued

Key Elements of Assistance to Affected Personnel § Retirement Processing and Provision of Incentives § CSC Placement Scheme § Skills/Livelihood and Investment Program § Employee Counseling

Retirement Processing § DBM/CSC with MOA with GSIS/HDMF for timely release of benefits § GSIS to provide benefit on day of ret/sep upon submission of complete documents at least 1 month before ret/sep § Affected personnel to continue to receive salaries until GSIS gives benefits, provided complete documents submitted at least 1 month before ret/sep

Provision of Incentives § DBM to provide ‘seed fund’ to depts/ agencies upon submission of list of employees opting to retire/be separated § Placed personnel to enjoy CNA incentives, if qualified; in case of difference between CNA benefits in mother and recipient agency, to enjoy larger benefits for 1 year § Retired/separated personnel entitled to commutation of accumulated compensatory overtime credits

Placement Scheme § CSC to manage placement of personnel who opt to remain in govt service § CSC to match skills/qualifications of affected personnel with needs of priority agencies for reassignment § CSC to reassign in same province/region to extent possible § CSC to explore reassigning to LGUmanaged schools/hospitals after satisfying requirements of NGAs

Skills/Livelihood and Investment Program § Alternative Livelihood/Employment Ø Provide alternative skills/livelihood trainings § Job Facilitation Ø Facilitate employment in private sector, local or overseas § Investment Services Ø Provide guidance on investment opportunities

Employee Counseling § Depts/Agencies may send Personnel Officers to trainings on employee counseling § Depts/Agencies may tap Ateneo’s Center for Organization Research and Development in conduct of trainings on employee counseling

Thank You!