1.0 Introduction
 
“Each day, our work matters because the programs we administer, the policy advice we provide and the services we deliver help to improve millions of lives. Understandably, we take a lot of quiet pride in a job well done.”
- Andromache Karakatsanis, Secretary of Cabinet, Government of Ontario, March 2001

Purpose of Report

This Annual Report addresses the critical priorities of workforce renewal and revitalization that are shared by public service and broader public sectors across Canada and beyond. The report also describes major business drivers behind renewal and revitalization, the challenges we face in striving to attract, develop and retain the talent needed to deliver quality public service, and our recent renewal and revitalization achievements and innovations.

In addition, this report assesses our progress toward meeting the goals of the OPS Human Resources (HR) Strategy and identifies where further policy and program intervention is required. An overview is also provided of ministries' and enterprise-wide strategies and solutions to date, including some examples of our creative initiatives and partnerships concerning human resources management.

Finally, the report provides information about other OPS strategies and activities with respect to attracting and retaining executives, providing citizen-centred service, and upholding the merit principle.

Business Imperative of HR Planning

The OPS workforce salary and wage envelope is approximately $4 billion annually and comprises more than 60,000 employees. Ontario's jurisdictional report shows the importance of investing wisely in this considerable human resource and the need to manage it efficiently and effectively. The report also demonstrates how vital it is for us to be able to understand the relationship between the workforce (its composition and competencies), the value of an employment value proposition (relative to key competitors in the labour market) and the capacity to deliver high quality public service.

Further, the report defines our urgent issues and identifies the actions needed to address them. We need, for example, to develop and retain our middle managers who, through their effective management of the workforce, are the lynchpins for achieving core business results. To address this issue, we will need to identify critical management behaviours and then train and reward accordingly.

Another urgent issue we face is the continuing skills shortages and/or gaps for certain types of work and occupational groups that are essential to our business success. Addressing this issue will require, for example, the creation of career paths for technical specialists, and new entry level and developmental positions so we can be assured of a future supply of public administrators. And, not surprisingly, we're facing a major demographic crunch, since up to two-thirds of OPS employees are “baby boomers” who are eligible to retire over the next 10 to 15 years.

The Good News

Section 6.1 of the report describes the exciting new work in the OPS and the innovative ways in which we serve the public.

Talented people, regardless of where they are in their careers, will always be attracted to “making a difference” by serving the public good in government. In order to attract, develop and retain qualified and dedicated people now and in the future, we will have to continue to offer work that is challenging, exciting and diverse, and provide learning opportunities that enhance both personal and professional growth. The OPS will be reaching out in the months ahead to entice key talent to our workforce and to continue to build pride in the public service.

2.1 Labour Market Challenges

For decades, the OPS has been one of the most widely respected public sector organizations in the world and one of the province's leading employers. We have maintained this position by strategically planning for the future and by responding in a proactive way to changes in business demands.

In recent years, however, demographic pressures along with a global shift in the nature of work have presented new challenges to human resources planning in the OPS.

Labour market challenges for the 21st century

Demands for quality service and diversified service delivery
(e.g., e-commerce / e-government, 24/7)

Aging workforce
- Aging Ontario labour force – 43% eligible to retire over next 10 years

Critical skill shortages
- 20% of Ontario adults lack basic skills; 25% lack skills for changing labour market demands
- skill shortages put upward pressure on wages and can constrain business growth, labour productivity and standard of living

Increased competition for skilled knowledge workers

Upward compensation pressures

Ongoing collective bargaining

Technological changes

Global competition and mobile labour

Cost constraints
- Balanced budget legislation
- Reduced taxes
- Slower economic growth (GDP, imports and exports, job creation)

If not addressed, these challenges threaten the ability of the OPS to meet its core business objectives. To stay competitive, we must confront the fact that fiscal, technological and demographic shifts in the recent past have created a singular set of risks and opportunities to the OPS's business plan. Along with other response strategies, our continuing success will depend on our capacity to create a compelling employment offer that will support workforce renewal and revitalization. It is, for example, incumbent upon us to clearly articulate how valuable and rewarding our work is to a new generation of public servants. This value proposition will help ensure the people of Ontario continue to enjoy the benefits of excellence in public service in the years to come.

2.2 Ontario Public Service Demographics

Size of the OPS

Around the world, governments have been getting smaller, more accountable and more efficient as new public sector models have been applied. In Ontario, the government has made significant moves to get out of businesses that can be more appropriately managed by the broader public sector and/or the private sector. In addition, new business priorities and budgetary pressures have constrained hiring and lowered other expenditures within the OPS over the past 10 years. As a result of these changes, the OPS has reduced the size of its workforce by close to one-third since 1991. The size of the OPS is equivalent to 60,300 full-time employees (FTEs) as of March 31, 2001.

The following graphs illustrate the size of the OPS workforce and the workforce representation by compensation group.

Size of OPS Workforce

OPS Workforce by Compensation Group

Age Profile

The OPS is also facing an impending workforce challenge as a result of the age distribution of employees.

Age of the OPS Workforce - Compared to Ontario working age population

The average age of our classified employees is 44 years, placing us at the forefront of the “baby-boom” wave. (For the purposes of this report, “baby boom” refers to the generation of persons born between 1947-1966.) One of the primary reasons we are concerned about a skills shortage in the future – especially among managers – is because of the aging of this baby-boom generation.

Projected Retirement

Over 70 per cent of OPS classified employees are “boomers,” compared to just one-third of the Canadian population at large. This demographic bulge in the OPS translates into another significant fact: in our workforce, someone turns 50 every four hours. In other words, two-thirds of the OPS may become eligible to retire in the next 12 to 15 years.

OPS Retirement Eligibility

Note: Forecast based on present population of the OPS and on population reaching minimum retirement eligibility age of 55. Actual incidence will be somewhat lower as varying penalties do apply outside existing retirement incentive programs.

These retirement statistics are a cause for concern regarding succession management, as the major feeder group for senior management is on the same retirement schedule as senior management itself. As noted in Rediscovering Public Service: Recognizing the Value of an Essential Institution (Institute of Public Administration in Canada), “The demographics of the ‘baby boom' present significant challenges in replacing those senior public servants who are eligible to retire. Moreover, there will be vigorous competition between business and government for the increasingly important group of well-educated, highly skilled employees known as ‘knowledge workers'.”

In addition, the OPS must compete with other employers to attract and retain the best employees. This competition for human capital is compounded by the fact that the private sector can entice new employees by offering attractive compensation packages, compelling employee value propositions (e.g. work-life balance, flexible work arrangements) or other incentives (e.g. signing bonuses, employee referral programs). In addition, potential recruits often see the public sector as downsizing and therefore not as a viable career option.

2.3 Collective Bargaining

More than 50,000 of the province's 60,000 employees are represented by bargaining agents. Five collective agreements (with six bargaining agents) have already expired or will expire by the end of 2001, and collective bargaining or pre-bargaining consultations have already begun.

Continuing pressure to reduce public spending, taxes and public debt, mean that public sector expenditures continue to be highly constrained. In order to reach the goal of a balanced provincial budget, and as part of restructuring public service delivery, the Ontario Public Service (OPS) has reduced the size of its workforce by close to one-third since 1991.

Projections suggest slow but positive economic growth, low unemployment and low inflation. Despite this, almost full employment remains among employers for qualified staff in areas of skill shortage. While the highly competitive labour market has led to higher wage settlements in the public and private sector, the Ontario government seeks to be a role model for the broader public sector in reaching responsible and affordable collective agreements.

For their part, unions can be expected to seek improved wage settlements. Over the past 10 years, fiscal constraints have resulted in temporary wage cuts and wage and merit pay freezes. Salary adjustments in the last round of bargaining with the largest bargaining agent resulted in an increase of 4.3 per cent over three years.

Unions can also be expected to seek improved job security provisions, restrictions on the use of unclassified, fee-for-service and temporary agency staff and improved training and retraining. Workload and hours of work are also key issues for unions at this time.

Three of the six bargaining agents who are already or will begin bargaining with the employer before the end of 2001 operate in a right to strike environment. Contingency planning by Management Board Secretariat and ministries to address potential labour disruptions is currently under way. Resource commitment by ministries to this activity, particularly by human resources branches, is significant and can be expected to increase as bargaining progresses.

The OPS is continuing efforts to realign terms and conditions of employment to support the government's current and future operational requirements in a cost effective manner. For non-unionized employees proposed changes to the Public Service Act and the Crown Employees Collective Bargaining Act are pending. The government will seek similar operational flexibility as it negotiates with its bargaining agents over the next few years.

2.4 Key Ontario Public Service Workforce Challenges

As a result of demographic pressures and a global shift in the nature of work, HR planners in the OPS have identified four significant workforce challenges:

• Skills gaps and shortages in areas of work that require new capabilities and upgraded skills.
  
  
• Demands on the workforce as employees adapt to new organizational structures and ways of working.
  
  
• The demographic pressure of an aging workforce and management corps.
  
  
• The need to position the OPS as an attractive employer where skilled, knowledgeable and motivated employees can build rewarding careers.
  
  
• Successful negotiation of fair and reasonable collective agreements.

3.0 Ontario Civil Service Commission

Management Board of Cabinet (MBC) has overall responsibility for managing the financial, human and physical resources of the Ontario Public Service.

The Civil Service Commission (CSC) administers the Public Service Act, and reports to the Chair of MBC. The Public Service Act, the legislation covering employment in the OPS, defines the composition and establishes the statutory authority of the Commission as an independent authority and non-partisan body to oversee matters affecting employment and human resources management within the Ontario Public Service. The CSC and MBC ensure that appropriate administrative policies are in place to manage human resources.

An independent authority and non-partisan body, the Commission is responsible for ensuring the application of the merit principle within the public service, particularly in the senior management ranks.

Since the delegation of its human resource management functions to the Management Board Secretariat, the CSC continues to operate as a tribunal. The tribunal carries out the drafting of regulations and has adjudicative powers which, in law, cannot be delegated.

More specifically, the responsibilities of the Commission are to:

• recommend regulations relating to a wide range of human resource management issues affecting salaries, classifications, recruitment, benefits and hours of work, subject to the approval of the Lieutenant Governor in Council;
  
  
• approve appointments, overage appointments, and assignments;
  
  
• consider a wide variety of staffing and recruitment actions, including salaries for individuals and appointments at the SMG 3 level. (Note: authority for recruitment below the SMG 3 level has been delegated to ministries.)

Some of the administrative matters, which regularly appear on the Commission's agendas, include recommending regulations regarding the establishing classifications and compensation for non bargaining unit staff, approving senior appointments and contracts, and waivers of competition.

The Commission also acts as the Board of Trustees to the Ontario Government Employees' Charity Trust.

The CSC carries out its mandate in cooperation with MBS and the Executive Development Committee (EDC). MBS provides policy advice and administrative support to Management Board of Cabinet. MBS also supports the government as an employer. For example, it establishes policies for managing the government's human resources, based on the regulations administered by the Civil Service Commission.

4.0 Renewal & Revitalization Strategies and Initiatives

In the future, the continuing pressure to reduce public spending, taxes and public debt mean that public sector expenditures will continue to be highly constrained. The OPS will continue down the road of delivering high quality service with clear accountabilities and increased efficiency and effectiveness. At the same time, it is evident that new investments are needed to ensure that we rise to the human resources challenges that will affect the OPS in the coming decade.

The OPS has been engaged in a number of recent and ongoing renewal and revitalization strategies and initiatives to address workforce challenges.

4.1 The Deputy Minister Leadership Group

Following a retreat for deputy ministers organized last December by Andromache Karakatsanis, the Secretary of Cabinet, a new DM Leadership Group (DMLG) was formed to ensure all OPS leaders make the renewal and revitalization of the OPS workforce a priority.

The DMLG wants to communicate to managers across the OPS that critical human resources issues face every level of the organization and that organizational renewal and revitalization are a top business priority across the OPS. Since forming the DMLG, the Secretary of Cabinet has invited ministries to nominate a cross-section of OPS employees to join the group, including managers, interns and other staff at various levels.

4.2 Outcomes and Actions for Ontario Public Service
Renewal and Revitalization

The DMLG has adopted a set of outcomes and actions for OPS renewal and revitalization (refer to pages 15 and 16).

With the DMLG guiding the activity, Management Board Secretariat and ministries are, in partnership, refining the measurements related to these outcomes. The ultimate goal for renewal and revitalization is to support OPS employees as “dynamic and innovative people delivering quality public service”. To support this goal, five strategic outcomes have been identified as the cornerstones of the OPS compelling employment offer or value proposition. These outcomes revolve around: pride in quality public service; dynamic leadership; the learning organization; fostering a motivating and flexible work environment; maintaining a capable and innovative workforce. The outcomes are aligned with OPS business goals and other transformational change initiatives within the OPS.

Under its Action Plan, the DMLG will act as the “Board of Directors” for approving high level plans and actions, identifying and promoting top leadership qualities and behaviours to achieve OPS renewal and revitalization and implementing “quick wins” to demonstrate measurable progress on these fronts.

4.3 The Human Resources Strategy for the Ontario Public Service

Launched in 1999, the Human Resources (HR) Strategy for the OPS is a set of dynamic public service renewal and revitalization initiatives that will help to ensure we can attract, develop and retain the talent needed to deliver on the government's agenda and achieve overall business goals.

Highlights of Ministry HR Plans 2001 - 2002

Under the HR Strategy, ministries are required to develop annual human resources plans that are integrated into the business planning process. In 2001 - 2002, these Human Resource (HR) plans indicated that ministries will be engaging in renewal and revitalization strategies to address workforce challenges concerning skills gaps/shortages, demographics, and/or attraction, recruitment and retention.

Major Renewal Strategies 2001 - 2002

Major Revitalization Strategies 2001 – 2002
Key Learning Priorities 2001 - 2002

Ministries also identified their key learning priorities as:

• Develop management / leadership and team building.
• Build skills and capacity to deliver on ministry business goals.
• Support Quality Service.
• Manage Information Technology (IT) to effectively achieve business goals.

Key HR Strategy Initiatives

The HR Strategy itself focuses on three key areas of workforce renewal and revitalization:

• Understanding Work and the Workforce

• Investing in Learning and Development

• Updating HR Policies and Practices
  

The key HR Strategy initiatives and achievements for 2000 - 2001 are outlined below:

Understanding Work and the Workforce

Understanding work and the workforce involves improving our understanding of current and future work, and ensuring that we plan effectively to meet knowledge, skill and performance requirements. Strategic human resources planning and workforce revitalization efforts are therefore critical to achieving this initiative.

2000 – 2001 Initiatives and Achievements

• Ministries reported that their performance on almost all of the Year 1 components of their HR plans (issue, skills gap and risk analysis; learning plans at the ministry and branch level; demographic profiles; renewal, revitalization and youth strategies; HR management performance measures integrated into business plans) met or exceeded their expectations.
  
  
• HR planning, along with performance indicators, were integrated into the business planning process.
  
  
• Management Compensation Plan (MCP) Project [HR plan for managers] consultation report was completed.
  
  
• HR plans were developed for eight OPS-wide professional/occupational communities. For example, in 2000, Cabinet Office Communications led the development of a HR plan for the communications community across the OPS. A number of planned initiatives focusing on replenishing and developing the workforce are currently under way, including:
  
  • introducing competency profiles for six communications job families
  • expanding the curriculum of 14 courses and learning events for communications training
  • joint recruitment drives targeted to senior management positions
  • co-ordinated approach to student placements and Ontario Internship
  • program assignments for the communications community
  • launching an orientation program for communications employees
  • developing recruitment marketing plans and strategies
  
  
• Collective efforts will continue to be facilitated across ministries to attract, recruit, retain and develop professional communicators.
  
  
• Renewal and Revitalization resources and learning: Action Conference for 160 managers; performance measurement workshops.
  
  
• WIN (an online Workforce Information System) used as a strategic HR management tool, enabling analytic reporting.

 Investing in Learning and Development

Investing in learning and development aims to establish a climate of continuous learning in order to develop a workforce with the knowledge, skills and capabilities to meet current and future business needs.

2000 – 2001 Initiatives and Achievements

• Youth recruitment and development initiatives, e.g. Ontario Internship Program (200 hired to date); ministries' youth programs, summer experience, co-op students (7,016 placements in 2000/2001).
  
  
• Numerous corporate and ministry learning and development programs and curricula for OPS managers and employees, e.g. Management Development (64 programs to date); Corporate Leadership Education & Development Schools (LEADS); Leaders in Training; Quality Service; Building Leadership for the 21st Century - Orientation to Public Service; Shared Services Bureau - generic training.
  
  
• Learning plans were mandated at the ministry, branch and individual employee levels.
  
  
• Establishment of a Joint Union (OPSEU)-Employer Training and Development Committee.
  
  
• Partnerships with ministries in HR planning.
  
  
• Partnerships with ministries in applying competencies in learning and recruitment (nine demonstration projects, 27 workshops, numerous tools).
  
  
• Building OPS capacity in the HR and other occupational communities (12 workshops).

 Updating HR Policies and Practices

Updating HR Policies and Practices aims to provide flexible, up-to-date human resources management policies and practices that will support achievement of business and revitalization goals.

2000 – 2001 Initiatives and Achievements

• New policies, guidelines and workshops provided on Staffing, Performance Management, and Learning and Development.
  
  
• Online Renewal and Revitalization Resource developed for managers, providing best practice tips on more than 20 ideas for developing, attracting and retaining staff.
  
  
• Updated our corporate HR OpenWeb intranet site with HR info for all employees.
  
  
• Corporate vendors of record were selected for the Employee Assistance Program.

4.4 Ontario Internship Program

Introduction

The Ontario Internship Program (OIP) was launched in April 1999 as part of the HR Strategy for the OPS. The OIP is helping to revitalize the OPS by recruiting recent college and university graduates into areas of existing or emerging skills shortages within government. Each year the program offers opportunities for 100 university and college graduates to develop skills and gain the experience necessary for establishing a career in Ontario's public service.

Program Outline

The program provides two-year work placements within the OPS, with each placement consisting of three eight-month rotational assignments. These assignments provide Interns with experience in up to three different areas of public administration and in different ministries and/or central agencies.

The OIP is centrally managed by Management Board Secretariat (MBS) which promotes the program, recruits interns and provides corporately sponsored training. Upon placement with a ministry, Interns are assigned a manager who is the placement supervisor, and a mentor who helps them develop their learning plans.

Interns are hired at the management entry level on a contractual basis. Although there are no guarantees of full-time employment, opportunities are anticipated, through the regular competitive process, for identified skill shortage areas.

Areas of Focus

Candidates are chosen on the basis of their strengths and demonstrated skills in various areas of public administration, education, work and volunteer-related experiences. Interns are hired and placed into assignments in the following areas of public administration:

• Financial and Business Planning
• Human Resources
• Organizational Development
• Policy Development
• Service Management
• Communications
• Labour Relations

Marketing and Recruitment

In the fall of 1999, the program Web site (www.internship.gov.on.ca) was launched, thereby enabling an online application process. Application forms are also available by mail or fax through the Ministry of Education JOBGROW hotline (1-888-562-4769). The OIP is promoted at all government information centres, constituency offices, human resource development centres, university and college career centres and several Web sites geared towards college and university graduates. The program is also represented at a number of career fairs on college and university campuses.

Eligibility Criteria

To be eligible, applicants must have graduated with a degree or diploma from a university or college within five years of applying to the program; applicants must also be eligible to work in Canada.

1999 and 2000 Recruitment Update

One-hundred Interns were hired each year. Ministry managers submit assignment proposals to MBS, and Interns are then matched to those proposals. The greatest demand for assignments is in the Greater Toronto Area; remaining interns are placed in assignments across the province. Thirty-six per cent of interns hired to date have post-graduate degrees and 78 per cent of hires are under the age of 30.

Preliminary Retention Results for 1999

As of March 31, 2001, 80 per cent of interns have been retained within the OPS, having found other jobs through the competitive process.

These former Interns have been successful in obtaining mid-level management positions – 66 per cent of the positions are extended unclassified (temporary) contracts, 34 per cent are classified (regular/ongoing) positions.

2001 Program Update

The 2001 recruitment campaign attracted over 2,700 applications by the Feb. 23, 2001 deadline. One hundred new interns will begin their assignments in July 2001. Promotion for year four of the program will begin in the fall of 2001 for assignments beginning in 2002.

As the OIP has completed the first two-year cycle, a program evaluation will be conducted to examine the program design and structure elements to ensure that the current approach continues to address our OPS human resource needs.

4.5 Human Resources Plan for Managers

Goals

The goals of the HR plan for managers are:

to recognize and deal with middle managers as a significant corporate resource by addressing the critical issues facing the group, and

to design strategies to deal with issues facing the group and to provide recommendations as appropriate.

Background

There are approximately 5,000 employees in the middle management group, of which

• 72 per cent are middle managers, and
• 28 per cent are non-manager specialists in a functional, occupational or professional capacity, who are excluded from collective bargaining.

Employees include: operational/program managers, human resources advisers/consultants, income support managers, economists, mediators, labour relations officers, audit managers, investigators and policy advisers.

Many ministries are reporting difficulty attracting and retaining managers, as there is currently little incentive for employees to take on a managerial role with its additional accountability. Increasingly, the OPS is also competing with the private sector for scarce managerial resources. The compensation requirements of this distinct employee group in the OPS have not been considered to date.

Many middle managers perceive that there are two tiers of management. They are neither represented by a union nor part of the Senior Management Group (i.e. executive). The result of this “in between” status is that there has been no focal point within the OPS to address the broad interests of the group.

Therefore, this project's objectives are to:

• design a rewards and recognition system;
• describe the demographics of the group across the OPS, including, for example, age groups, length of service, distribution by ministry, geographic location;
• define/clarify the role and value of manager roles within the OPS;
• define work across the OPS, including the knowledge, skills, and behavioural competencies required now and in the future;
• identify salary issues for occupational groups within the group;
• assess the feasibility of developing and maintaining a corporate succession;
• management system for middle managers; and
• assess the feasibility of developing a centre of support within MBS for middle managers.

4.6 Corporate Human Resources Management Policies and Programs

Operating Policies

In June 2000, three new human resources management policies were introduced to help build workforce capacity, enhance flexibility and improve the workplace environment.

These policies included the

• Staffing Operating Policy,
• Performance Management Operating Policy, and the
• Learning and Development Operating Policy.

Each of these policies supports the Human Resources Management Directive by enabling the OPS to continue developing, attracting and retaining public servants who are professional and committed to quality service. As well, these new policies are a cornerstone of the Human Resources Strategy and provide an integrated foundation for renewing and revitalizing the workforce.

By linking human resources management activities to broader business planning processes, these policies are also results-oriented. Under the policies, managers now have greater flexibility and accountability for developing a workforce that is knowledgeable, creative, responsive to change and motivated to engage in continuous learning and improvement.

To support the implementation of these policies, we developed numerous tools, resources and information sessions including,

• policy orientation sessions for the human resources community;
• skill-building workshops for managers;
• a Manager's Guide to Staffing in the OPS;
• performance management information for managers and employees, posted to our corporate HR OpenWeb intranet site.

Health and Safety

To address the implementation of a revised corporate Health and Safety Directive, a Health and Safety Action Plan for the OPS was designed to help ministries with developing strategies specific to their needs. Ministries will be able to use the plan to determine their accountability and responsibilities under legislation and their capacity to meet those responsibilities.

4.7 Employee Benefits Review

Review of Insured Benefits

In response to the revitalization challenges faced by the OPS, the Benefits Policy branch of Management Board Secretariat (MBS) is undertaking a review of the current OPS benefit plans.

The OPS group-insured benefit plans have changed very little over the past decade. In the meantime, the demographics of the OPS have changed dramatically, e.g., an aging workforce, and this change is expected to continue. Our ability to attract and retain talented, high calibre employees will depend, in part, on how well our benefit plans reflect the diverse needs of our employees now and in the future. In addition, an analysis of the trends in benefit usage in the OPS and other public and private sector organizations indicates that the cost of insured benefits could double within the next four to seven years.

As a result of these changes, MBS has undertaken a review of OPS benefit plans to determine if there are opportunities for:

• More effective benefit utilization.
• Better cost containment.
• Greater employee satisfaction.
• Greater comparability to the private and other public sector markets.

This review will consist of:

• An in-depth analysis of the current OPS group-benefit plan and comparison with other public sector plans and private sector industries, such as financial services, utilities, universities, insurance companies, municipalities, federally regulated organizations and the federal public sector. This comparison will also identify the strengths and weaknesses of the OPS benefits plan.
  
  
• An examination of the details of the OPS plan and an identification of those areas where the plan is current, out of date, or progressive for specific groups, such as union, non-union, management, senior management.
  
  
• Identification of possible alternative approaches and options to the current OPS benefit plan, including potential changes that would reflect current needs as well as viable options, such as flexible benefits.
  
  
• Identification of cost implications and the feasibility of the identified alternative approaches and options.
  
  
• Recommendations for change.

The results of this review will be used to:

• Help develop an overall strategy to change the structure of the OPS benefit plans.
• Lay the groundwork for the employer's position and proposals during collective bargaining.
• Develop changes to the benefit plan for the non-bargaining employee groups.
• Support our employee value proposition.

A review of retiree benefits, similar to the review of the benefit plans for active employees, will also be undertaken. This review will identify opportunities for more effective utilization of benefits and better cost containment.

4.8 Update of the Public Service Act

Background

The Public Service Act (PSA) and its regulations provide the principal framework for human resources management in the OPS. The PSA establishes the structure and management relationship between the employer, employees and bargaining agents. It contains provisions dealing with the collective bargaining framework for the Ontario Provincial Police (OPP) and political activity rights for Crown employees. Enacted in 1878, the PSA has been amended several times, but the fundamental assumptions underlying it have remained unchanged for 40 years.

Work in progress pending legislative introduction in fiscal 2001/02 will:

• Introduce greater flexibility and administrative efficiencies for OPS human resources management.
• Provide the opportunity for workplace democracy for civilian employees of the Ontario Provincial Police, allowing them to choose whether to join the Ontario Provincial Police Association or to remain in their current bargaining units.
• Clarify political activity rights and restrictions for some legal professionals who exercise management responsibilities similar to those of other OPS senior executives.
• Clarify the government's intent regarding the collection, use and disclosure of information for the delivery of integrated human resource services.

4.9 Labour Relations Environment

In the area of labour relations, the employer will continue to work with bargaining agents to create an environment of open communication and mutual respect for their respective roles. Efforts will continue to shift responsibility and accountability for labour relations to managers and local bargaining agent representatives by developing appropriate training and other support mechanisms.

Two examples illustrate this commitment.

(A) Grievance Administration Project

The Grievance Administration Project was initiated by the OPS in the summer of 1999 to reduce conflict and move towards a more productive labour relations culture in the Ontario Public Service.

In June 2000, the final report identified shared and individual concerns of the employer and bargaining agents and offered 19 recommendations to facilitate the desired transformation. Substantial progress on 13 of the 19 recommendations has been made and the employer and bargaining agents are currently working on the remainder. Our progress to date is summarized below.

Corporate Statement on Labour Relations

The employer, in consultation with bargaining agents, drafted labour relations guidelines that reinforce the commitment of the parties to positive labour relations and building productive relationships. These guidelines recognize the contribution of employees to the organization, acknowledge the legitimate roles of bargaining agents and the employer and shift responsibility and accountability for labour relations to managers and local bargaining agent representatives. With these guidelines, the employer commits to conduct labour relations with respect to communicating openly and maintaining a range of effective and fair dispute resolution procedures focused on early resolution.

Responsibility and Accountability for Labour Relations

The employer is developing multi-year performance measures that emphasize labour relations skills in recruitment, promotion and performance management across government. Our goal is to make labour relations a core competency for
all management positions, from the deputy minister level to the line manager.

Increasing Training Opportunities for All Parties

The employer is using the labour relations competencies identified in the Grievance Administration Project to develop a labour relations curriculum.
This curriculum builds on an existing training program that includes introductory labour relations for managers, collective bargaining and negotiating and mediating in the workplace by adding advanced labour relations training for managers and specialized training for human resources professionals.

Employee Relations Committee members from 10 ministries participated in interest-based negotiations training in December 2000 and March 2001. This group was comprised of representatives from two bargaining agents and senior managers from ministry operations and human resources.

The employer will collaborate with its largest bargaining agent, the Ontario Public Service Employees Union, to jointly deliver training on using the second step of the grievance procedure for effective early dispute resolution.

Multi-lateral and Bi-lateral Discussions with Bargaining Agents

The report recommended that the employer explore using an interest-based approach in future rounds of bargaining. The employer has tested interest-based approaches in negotiations over contract administration and selected issues in collective bargaining. These experiences have been with two of the government's smaller bargaining agents and we are optimistic that the lessons learned will create opportunities with their larger counterparts in the future.

The employer has been conducting multi-party information sessions with bargaining agents for the past five years and is working to ensure the continued dissemination of important information to the bargaining agents.

Encouraging Innovative Labour Relations

The employer has established a Labour Relations Innovations Fund to encourage ministries, in partnership with bargaining agents, to innovate and experiment in dispute prevention and conflict resolution. A Labour Relations Innovations Committee made up of bargaining agents, ministries, and representatives from outside government, will evaluate proposals against a set of criteria to ensure the best ideas are set in motion.

Improving the Efficiency and Effectiveness of the Grievance Settlement Board

The Grievance Settlement Board has adopted new rules of procedure that clarify its own operation and those of the mediation-arbitration process, which has proven to be effective in resolving grievances.

Queen's University is reviewing the practices of the board to establish performance measures and determine the capital and human resources required for effective and efficient delivery of its mandate.

(B) Mechanisms for Dealing with Divestment

The labour relations implications with respect to divesting services has become an increasingly important issue in the Ontario Public Service. The OPSEU, AMAPCEO, and PEGO collective agreements all contain provisions requiring the province to make “reasonable efforts” to ensure employees who are affected by divestitures are offered positions with new employers on terms and conditions as close as possible to their existing terms and conditions.

To assist ministries in their divestments, MBS created the Second Review Team (SRT) to ensure the province is meeting its obligations whenever bargaining unit functions are transferred out of the OPS. The SRT is responsible for providing advice to client ministries on the employers' obligations and the labour relations implications associated with transferring services. The goals of the SRT include ensuring consistency across the OPS when engaging in divestitures, reducing the potential for litigation and promoting harmonious union-management relations.

Although the ministries are required to meet with the SRT for initiatives that have been approved, many ministries seek the advice of the SRT prior to the approval process. This suggests the SRT has become a valuable source of information and advice with respect to the labour relations implications of transferring services.

Since 1998, there have been new reasonable efforts agreements reached with the bargaining agents (OPSEU, AMAPCEO, and PEGO). These new agreements modify and streamline earlier reasonable efforts obligations especially for transfers where there is little or no prospect of obtaining comparable jobs.

New reasonable efforts provisions negotiated with OPSEU in January 1999 provide detailed processes to follow in meeting reasonable efforts obligations depending on the type of transfer contemplated. These provisions have proven to be effective in facilitating initiatives that involve the timely and efficient transfer of services. These provisions were incorporated into the Jan. 1, 1999 to December 31, 2001 OPSEU collective agreement signed in June of 1999.

However, divestments continue to evolve in ways not fully addressed by existing agreements. For example, in correctional services, the government is closing a number of smaller provincially staffed jails, and transferring those functions to new larger jails. In southern Ontario, five of these jails will continue to be operated by the province, and one will be operated by a private sector operator. The collective agreement with OPSEU provides different rights to employees and imposes different obligations on the employer depending on whether the work is restructured or privatized. In addition, this kind of massive restructuring and divestment involves the transfer of staff from one facility to another, at the same time as it requires both the closing jails and new jail to be fully staffed with no permanent increase in staff. The sequential nature of such activity also has extraordinary implications for bumping and redeployment rights under the collective agreement. In order to address employee and union concerns while protecting the interests of the employer, a separate agreement is being negotiated between the parties. The intent of this agreement, and other experiences with divestments and the provisions of collective agreements, will be to inform upcoming bargaining.

5.0 Senior Managers in the OPS

5.1 Human Resources Plan for Senior Managers in the OPS

The HR plan for senior managers of the OPS is intended to develop and foster current and future leaders who can manage the challenges inherent in a changing environment.

The Executive Development Committee (EDC) and Centre for Leadership (CFL) developed a human resources plan for senior managers in March 1997, to address the changing business of government, the evolving employment relationship and the shifting demographics of the senior management group. The plan establishes human resources management strategies and programs to support and develop OPS leadership capabilities. It is the product of extensive consultation with deputy ministers and senior managers across the OPS, as well as input from other organizations and research concerning leading-edge practices. The plan was reviewed and updated by EDC in July 2000.

The plan sets out roles and responsibilities for all the partners. There is a yearly cycle for managing such important processes as succession planning and performance management. Education, training and development opportunities are related not only to new corporate core competencies for executives, but are also constantly adapting to the changing business priorities of government.

The HR plan demonstrates a commitment to OPS leaders, by recognizing their value to the OPS and the challenges ahead. The plan helps the OPS manage restructuring through such measures as the development of corporate core competencies that reflect the need for new kinds of leadership, and the provision of learning opportunities that encourage new ways of doing business.

Although the plan is primarily a tool for corporate and ministry-based planning, individual senior managers can also use it to manage and develop their careers, whether they stay within the OPS or find opportunities outside government. Leaders can also use the plan to encourage and contribute to the development of the careers of those who have potential to move into executive positions.

5.2 Executive Compensation

In December 1996, the government introduced a performance-based pay system for deputy ministers and senior managers in order to bring greater accountability and value for money to the civil service.

An independent review, conducted in June 2000 by an expert external consultant, showed that OPS executive pay levels had not changed in four years and were falling further and further behind other government organizations and the private sector. The consultant's recommendation that executive salary levels be increased to be more competitive with senior staff in other parts of the public sector was accepted.
New salary ranges for deputy ministers and senior managers became effective
April 1, 2000.

5.3 Performance Management

As a key component of any human resources management system, performance management provides the mechanism to link individual actions to corporate business plans. And, since the government's direction emphasizes the importance of accountability and the focus on results, our performance management program strengthens the linkage of individual activities to the achievement of corporate and ministry business plans and goals.

Performance management provides a corporate measurement tool on which to base human resources management decisions. The performance management program therefore provides a consistent and continuous approach to measurement based on yearly key corporate goals set by the Premier and Secretary of Cabinet within four key result areas:

• Fiscal
• Policy/legislative
• Operational
• Managerial

The use of a consistent corporate measurement approach also supports the principle of equal opportunity and accountability. The four key result areas are applied across the leadership group and help align training, and succession planning, as well as the development and selection process.

5.4 Executive Training and Development

The Centre for Leadership's executive training and development programs enable senior managers to enhance their leadership core competencies and build organizational capacity to deliver the government's business agenda.

5.5 Leadership Orientation

These sessions introduce executives to their new roles and responsibilities as OPS leaders.

• New assistant deputy ministers attend a half-day workshop, which provides insight into their new roles and responsibilities.
• New senior managers attend a 3½-day session to become familiar with OPS directions and leadership skills critical to their new role.

5.6 Leadership Awareness

These sessions provide executives with current and emerging corporate information to help them understand OPS directions.

• Executive dialogues, held annually from February to June in all regions, give executives a chance to meet the secretary of cabinet, hear about corporate messages, and network with deputy ministers and senior managers from other ministries. Senior managers are expected to attend one dialogue each year.
  
  
• Supplementary courses are mini-courses developed to meet needs that emerge during the fiscal year. These courses are short in duration (two to four hours) and cover a wide range of topics. They are primarily intended to provide information and ideas on emerging trends and issues.

5.7 Leadership Foundations

These programs form the core of the executive development curriculum and help executives acquire leadership skills to support new OPS directions. Reflecting current corporate executive development needs and priorities, the programs cover topics such as negotiating in the public interest, strategic communications planning, retaining talent, executive presentations, project leadership and leadership issues related to information technology, performance measurement, and risk management. These programs are one to two days in length. Executives are expected to take one foundation course each year.

5.8 Learning Beyond the Classroom

These activities allow leaders to intensify their exploration of leadership topics and enhance their personal leadership abilities.

• The Corporate Leadership Education & Development School (LEADS) involves four university-level modules offered over the course of a year.
• Study Tours enhance leadership development through participant interaction with public and private-sector organizations that are known for their excellence in aspects of leadership.
• Mentoring sessions support executives interested in establishing mentoring relationships.
• Senior management coaches in the New Senior Managers' Orientation and Corporate LEADS programs receive coaching and facilitation training.
• Online modules provide additional flexibility and learning opportunities for senior managers.
• Public-Private Partnership Breakfasts provide an opportunity for assistant deputy ministers to meet with executives in the public and private sectors to explore organizational issues of mutual interest.
• External learning opportunities are explored with other organizations as a means for senior managers to gain on-the-job experience in areas of shared interest.

These programs are co-ordinated through the Centre for Leadership's Executive Development Branch, which works increasingly in a service management mode with a “virtual faculty” made up of experts including professors, consulting firms and public policy organizations.

The Centre for Leadership also provides an outline for developing mandatory learning plans. Through the learning plans, senior managers link their learning objectives
to developing core competencies and outline methods for achieving those
learning objectives.

6.0 Other Strategies and Activities

6.1 Citizen-Centred Service

“The Ontario Public Service is changing with the times. Ontario is transforming its services to the public so that Ontarians can obtain government information and services when, where and how they want it. By focusing on core business and quality service, becoming smaller and more flexible, integrating operations and redefining and clarifying accountability, Ontario is transforming its public service for the 21st century” *

[*Art Daniels, Assistant Deputy Minister, Quality Service, OPS Restructuring Secretariat in Transforming the Public Service for the 21st Century: An Ontario Perspective.

During 1995-1996, the OPS leadership began working on a vision for the Ontario Public Service of the future, including clarifying key directions and enablers of change. This vision was relayed to the public service through the first of what became annual communications from the Secretary of Cabinet to staff on the status and evolution of public services. The first communication, called Building the Ontario Public Service for the Future: A Framework for Action, described the goals for the future OPS as being an organization that is focused on core business, ensures quality service to the public, is smaller and more flexible, is integrated and cohesive, and is accountable.

The 1998 “Framework for Action” document focused on the next step in modernizing the public service which involved Building a Quality Service Organization. The year focused on improving service delivery and the people in the OPS that make it happen. A new quality service framework was developed that included common service standards for Ontarians. This phase began what is known as the “customer-centred” approach to quality service.

The “1999 Framework for Action” focused on Building a Learning Organization. The quality services that the OPS provides are dependent on the knowledge, skills and motivation of staff who are the heart of the organization. Training and education allowed the OPS to drive change and provide service delivery enhancements. Organizational learning was demonstrated in a number of ways. New relationships were built, teams were forged and technology was used in new ways to reach out to customers.

The following year, modernization in the public service culminated in the Framework for Action 2000 document entitled Working Together To Build An Integrated Organization. Strategies for changing organizational structures and work processes provided the basis for different parts of the OPS to:

• connect to provide single-window access to many government services;
• integrate the policy and planning functions to provide collaborative and cross-sectoral solutions to service delivery;
• bring people from different ministries together through integrated structures and processes;
• partner with other levels of government, the broader public sector and the private sector.

A key theme that has emerged as part of the new vision for the OPS is an organization that operates from the “outside-in”. This concept involves looking outside the organization to understand citizens' and key stakeholders' views and needs and to respond by developing policies and programs that reflect these needs and expectations.

Quality service is one of those areas. The OPS has implemented a Quality Service Strategy aimed at improving services to Ontarians. The strategy includes:

• integrated organizational assessment and planning;
• common service standards (e.g. phones, mail, walk-in service and customer feedback/complaint resolution), training and quality tools, monitoring and benchmarking;
• corporate policies which are current, reflect government objectives and are widely accessible;
• common OPS-wide tools for customer and employee surveying;
• developing a learning strategy to support quality improvement teams.

Quality service is an OPS tradition. The findings of the “Citizens First 2000” survey on government service delivery confirms that the OPS approach to service delivery and standards is on track. An independent validation confirmed that we are meeting our phone, walk-in and customer feedback standards.

The renewal of the public sector to better meet customer expectations is occurring worldwide. Our journey over the past few years to build a more integrated organization has placed the OPS at the national and international frontiers of innovative public sector management and has allowed us to continue to serve the people of Ontario in new ways to meet their changing expectations.

6.2 The Merit Principle: Its Protection and Practical Considerations

As an equal opportunity employer, the OPS' staffing activities are required to: be fair, objective, reasonable, and transparent; promote broad access to employment; and ensure all hiring decisions are made on the basis of merit.

For staffing purposes, the Ontario Public Service defines merit as the selection of a candidate whose qualifications best meet employment-related selection criteria.

To ensure merit is applied, selection processes must be barrier-free, free of discrimination and harassment, and facilitate appropriate employment accommodation.

Merit and equal opportunity principles are reinforced in mandatory requirements outlined in the OPS Staffing Operating Policy, including the following:

• Employment selection is based on a thorough assessment of a candidate's ability to demonstrate the qualifications required for effective performance. At least three methods for assessment of candidate qualifications must be used in the staffing of permanent assignments (eg. Resume review, interviews, written assignments, reference checks).
  
  
• Weighted selection criteria, which reflect the required qualifications and their relative importance, are established at the outset of the process and used as the basis of decisions throughout the process.
  
  
• Screening and rating methods used must be valid, and bias-free, and reflect pre-determined selection criteria.
  
  
• Employment accommodation (primarily for applicants with disabilities) must be provided to all staffing applicants in accordance with the Ontario Human Rights Code and OPS equal opportunity and employment accommodation policies.
  
  
• Staffing actions must be completely documented so that the application of merit can be clearly demonstrated.

In order to ensure broad access to employment opportunities in support of merit, we have established an expectation that competitions will be open to the public as well as all OPS employees, unless there is a compelling business rationale for a more restricted area of search. Open competitions may not impose geographic restrictions on eligibility to apply.

In addition, for the past three years, the OPS has monitored the application of merit by reviewing a variety of indicators of merit in at least 10 per cent of staffing competitions. This has enabled ministries and the OPS at large to assess strengths and weaknesses in how we apply merit, and to improve practices where needed.

7.0 Ontario Public Service Statistics 2000-2001

OPS Staff Strength, Classified Service, includes Ontario Provincial Police, and Security Guards. For the Unclassified Service, Ministers' Staff are also included. Provincial Auditor, Ombudsman, Legislative Assembly, Chief Election Officer, Ontario Lottery Corporation and Workers' Compensation Appeals Tribunal staff are excluded from OPS Staff Strength.

Annual Reports prior to the fiscal year, 1991-2, contained head counts of OPS employees. A part-time employee was reported as one employee regardless of hours worked. Since the 1991-92 report, hours worked by part-time employees have been converted to full-time equivalents and reported as such. Head counts are used to count full-time employees.

Employees receiving Long Term Income Protection are excluded from the Staff Strength statistics but are included in all the other tables in this report. The number of employees on Long Term Income Protection as of March 31, 2001 was 2,476.

Unclassified staff consists of full-time and part-time OPS unclassified service, Ministers' staff.

* This number includes 2,476 employees receiving Long Term Income Protection.

Classified Service by Geographic Location
(March 31, 2001)

8.0 Appendices

CIVIL SERVICE COMMISSION (2000-2001)

Commissioners

EXECUTIVE DEVELOPMENT COMMITTEE (2000-2001)

Members