Introduction - Restructuring the Ontario Public Service

The Ontario Public Service (OPS) has been undergoing the most significant change in a decade, perhaps in its history.

For years, the OPS responded to public expectations with more programs and services. Today, the emphasis is on better services at less cost to taxpayers.

Ways of organizing and doing business that were acceptable in the past are being challenged. The OPS is re-thinking how it operates its various businesses. It is also realigning its operations under a comprehensive restructuring framework and action plan for change.

Ministries and agencies are working to achieve the vision of a new OPS by 2001, in which the government:

• operates core businesses and delivers services which are of the most benefit to the public
• provides services in a more accessible and convenient way, with fewer barriers for businesses and people
• is smaller in size, and more flexible and efficient with its financial, human and technological resources
• operates integrated programs with improved co-ordination and less duplication
• has clear procedures for accountability, and is focused on achieving results as set out in business plans.

Management Board Secretariat (MBS) is leading OPS restructuring activities and fundamental changes in how services are managed and delivered.

Important first steps have been taken such as the identification by ministries and agencies of their core services and programs -- those which serve the public interest -- and the completion of an alternative service delivery framework to assist the OPS in decisions about other ways of delivering services more efficiently and effectively, in partnership with the private sector. Also, major projects were started to improve the delivery of internal administrative services supporting government operations, and to review government agencies, boards and commissions to ensure their work supports the government's priorities.

Business Planning and Allocation Process

Effective decision making, lower costs, improved service delivery and greater accountability are based on the availability of timely and accurate information within the OPS, and to Cabinet and the public.

The government is implementing a comprehensive business planning model following recommendations of the Office of the Provincial Auditor and the Ontario Financial Review Commission. It will ensure integrated data is provided to planners and decision makers on operating and capital costs, revenues, human resources and information technology.

In 1996-1997, the government improved the way ministries report to the legislature, as part of its commitment to be open, accessible and accountable. All ministries submitted annual public business plans that set out their goals, achievements and program directions. These plans reflect the outcome of Management Board and Cabinet review of plans proposed by each ministry.

The plans focus on core businesses, service delivery, potential savings, proposals to reinvest savings to strengthen service delivery, and outcome and performance expectations. There are clear measures for performance and ministries report back on their achievements. In this way, they can be assessed on how well they are meeting their mandates.

The performance of senior managers will be assessed against stated plan objectives, as ministries move toward integrating their performance management systems with the business plans.

Developing our Human Resources

As the government restructures and makes changes, it is building a public service workforce that is highly skilled and prepared to introduce new approaches that will increase productivity and efficiency.

A busy year in human resources management saw considerable attention devoted to OPS workforce planning, compensation, performance and information management, and other related activities.

Human Resources Plan for SMGs

The OPS must have executives who can provide strategic leadership as well as excellent administrative direction when significant change is under way.

To address this need, the Executive Development Committee and Centre for Leadership produced the Human Resources Plan for the OPS Senior Management Group (SMG).

The plan was produced after extensive consultation with deputy ministers and senior managers across the service, input from other organizations, and research into leading-edge practices. It is designed to establish consistent human resource management strategies and programs to support and develop OPS leadership capabilities.

The plan, which defines a yearly cycle for managing important processes, has the following major components:

• core competencies for corporate leadership
• performance management
• compensation
• long-term education, training and development
• succession planning
• information management.

The Human Resources Plan demonstrates a commitment to OPS leaders. It recognizes their value and the challenges they face. It is a tool that will help the OPS to manage restructuring and change the organizational culture, through measures such as developing new corporate competencies and providing learning opportunities that encourage new ways of doing business.

Senior managers are being encouraged to use the plan to manage and broaden their careers inside and outside the OPS. The plan is also recommended for the development of public servants who have the potential to move into OPS executive positions.

Performance Management Program and Framework

Key priorities associated with restructuring are good management practice, accountability and results. Accordingly, the OPS Performance Management Program links the activities of SMGs to the achievement of corporate and ministry business plans and goals. Managing performance helps to improve human resource decision making and through the merit principle, contributes to equal opportunity.

In 1996-1997, six key performance areas were applied across the Senior Management Group to help align OPS training, succession planning, staff development and selection processes:

• providing corporate leadership
• effective customer service
• achieving financial strength
• achieving people strength
• effective delivery of core businesses
• improving business efficiency.

Another highlight was the introduction of a Performance Management Framework for management and excluded employees in the summer of 1996. It requires managers and staff specialists to prepare performance contracts, and excluded employees to set objectives against which their performance can be assessed by their managers.

Total Compensation and Benchmarking Project

It is critical that the OPS has the ability to attract high calibre private and public sector executives to leadership positions, and to retain them. Compensation levels must be competitive with comparable jobs in broader public sector organizations, and reward public servants based on achieving performance results.

There was a benchmarking survey completed in 1996 of the total compensation package of Deputy Ministers and SMG employees. A Premier's Advisory Committee formed to undertake this project included the Secretary of Cabinet, the Associate Secretary of Cabinet, and chief executives of large and small private sector corporations.

The committee studied how total compensation (pay and benefits) of typical positions within the identified groups compared to other sectors. Findings and recommendations were approved by the Premier and Cabinet, and form the basis of a revised compensation plan for the OPS.

The committee recommended that the revised plan should:

• support the government's agenda
• focus the leadership group on the achievement of key results
• have key drivers set and controlled by the Premier, Cabinet and Secretary of Cabinet
• be funded through corporate savings
• recognize differences in ministry performance and contribution in a given year
• reinforce the importance of the performance agreement
• be simple to manage, communicate and administer.

The plan has four distinct elements:

• performance management with individual agreements linked to key performance areas and the ministry's annual business planning process
• competitively positioned salary levels
• re-earnable incentive awards based on successful performance results
• corporate control and audit.

The emphasis on connecting compensation to results underlines the shift from a culture of entitlements to a more demanding performance-driven culture.

Starting in 1996-1997, annual agreements were reviewed to establish an overall performance rating, which will link back to compensation.

The re-earnable incentive award component determines the amount of awards for performance; it also makes it possible to receive an award of additional compensation for the achievement of key results. If a senior manager's salary is below a pre-determined market rate (salary for an equivalent position in the Broader Public Sector), the pay out will be awarded as a salary increase up to market rate. If a salary is at market rate, the award is in the form of a lump sum re-earnable payment.

Human Resources Management Information System and HR Intranet Site

Under the Internal Administration Project (IAP) -- which is streamlining internal administrative services with a view to reducing their cost and providing them more efficiently -- the new Human Resources Management Information System (HRMIS) is being developed to significantly improve the quality of OPS human resources management.

Timely and accurate workforce information is required by senior management for business decisions and recommendations to Cabinet. However, present systems of the government are fragmented and inadequate.

HRMIS will be a powerful, comprehensive system providing an integrated database of employee information, accessible to managers, employees and human resources professionals.

OPS-wide use of the system is expected to be phased in beginning January 1999. A main benefit of the system will be greater self-reliance for managers and employees. Responsibility for certain aspects of the database, such as maintaining information on attendance, vacation credits and salary increases, will shift to managers and employees. Human resources staff will be able to concentrate more of their efforts on their core businesses.

During the year, a detailed needs analysis and process were completed for a corporate HRMIS. It was also decided that a single corporate software package would be acquired. The first steps in selecting a vendor to implement the new system were taken towards the end of the fiscal year with the issuing of a Request for Qualifications through the Open Bidding System. The implementation of HRMIS should begin late in fiscal 1997-1998, with a phased roll-out through 1998-1999.

In addition to HRMIS, a Human Resources Intranet Site is being developed. Accessible from the OPS Intranet Homepage, the site will have information, documentation and working tools for employees, managers and specialists; direct and secure access to the HRMIS for creating, editing, viewing and updating information; and linkages to other sites having human resources information and tools.

Bargaining Units Overhaul/New OPSEU Classifications

The Bargaining Units Overhaul (BUO) project is providing for the development of new compensation systems for all public service jobs in the six bargaining units represented by the Ontario Public Service Employees Union (OPSEU). This project will replace the outdated classification system, which does not accurately reflect the work being done in the OPS.

All bargaining unit jobs will have new, up-to-date job descriptions. Each job description will be evaluated against the new job evaluation system for its bargaining unit. The evaluation system will produce a total points score for each job. Each job evaluation system will have its own pay range.

In the next round of bargaining for a new collective agreement, a way of connecting evaluation points with employees pay will be negotiated. There is a moratorium on classification grievances until June 1, 1998. After implementation, complaints from employees about their classifications will be referred to a committee for final resolution. The new systems will be supported by computer technology and will eventually be merged with HRMIS. A significant feature is the creation of a computerized library of about 300 template descriptions for jobs now performed by people in different positions in OPS ministries. The availability of these templates will reduce the amount of time and effort required to rewrite present job descriptions.

During the year, a field test of the new systems was completed and an external review of the project methodology was carried out. Some adjustments were made to ensure compliance with pay equity standards.

The new job evaluation systems were pilot tested starting in spring 1997 and the training of ministry staff in describing and evaluating jobs followed.

The government has committed to complete this project by May 31, 1998.

Pay

With the expiry of the Social Contract Act on March 31, 1996, most social contract provisions were replaced by the provisions that existed in 1993 before the Act took effect. For example, as of April 1, 1996, there were no longer mandatory unpaid days.

As part of the Social Contract Act, merit increases were frozen for three years from June 14, 1993. However, as a result of collective bargaining, merit pay was reinstated for bargaining unit employees, also effective April 1, 1996.

For employees represented by the Association of Management and Professional Employees of Ontario (AMASSED) and the Professional Engineers of Ontario (PEG O), merit pay was reinstated effective June 15, 1996. For employees excluded from collective bargaining (not including Senior Management), merit pay was introduced on the same day with a renewed emphasis on performance management and pay for performance.

All recommendations for merit pay must be accompanied by documented rationale based on performance. A new pay for performance plan for Senior Management and Deputy Ministers was implemented after completion of the total compensation study.

Pay rates for middle management (classes above $63,525/annum), frozen in 1991, were revised effective June 1996 to reflect 1992 and 1993 pay revisions received by other managers in lower classifications. However, the employees affected may move to the new rates only on the basis of merit.

Progress on Split of OPS Pension Plan

In 1994, agreement was reached to split the Public Service Pension Plan, the original pension plan for all Ontario Public Servants, and establish a pension plan for employees represented by OPSEU, starting January 1, 1995. The Public Service Pension Plan continued for management and excluded employees as well as employees in professional associations and non-OPSEU bargaining groups.

As part of the arrangements, the government agreed to review the accuracy of pension information for plan members. All files are now dealt with and work is under way to process information on employees who have bought back, or are buying back, pension service credits.

There have been other important changes to help bring division of the plans closer to completion. In 1996, for example, the administrators separated the computerized database of plan members. They also continued to review financial transactions and confirm plan affiliation information, with a view to making final adjustments that will enable assets of the plans to be split.

Both plans continued to increase service efficiency in an effort to keep up with the high levels of early retirement and terminations caused by government restructuring. The administrator of the OPSEU plan was required to process over 20,000 pension service buybacks related to lost strike service.

Strong investment returns in 1996 meant that both plans continue to rank high in terms of industry standards for investment performance.

Tendering of Insured Benefits

OPS employees receive dental, long term disability, life and health benefits as part of their total compensation package. The benefit plans are self insured; the actual costs of benefits are paid for by the government. The plans are administered by private sector insurance carriers who are paid administration fees.

During the fiscal year, the government tendered the group benefits contract covering OPS employees not represented by OPSEU, employees working for Schedule 2 and 3 Crown agencies receiving coverage under the same policies, and OPS pensioners. Approximately 30,000 persons are covered by this contract, which is expected to reduce the government's administration costs by about 30 per cent compared to the previous contract. A similar administrative fee reduction has been negotiated with the carrier handling insured benefits for OPSEU.

Savings are achieved, in large part, through advances in technology since the previous tendering of benefits contracts. It is now less costly to administer highly transactional business.

Health and Safety Policy

Corporate staffing and health and safety policy and initiatives are developed in consultation with OPS ministries. Ministries are responsible for managing their own staffing and health and safety processes and operate within the policy framework.

Health and safety priorities are prevention, timely and safe return-to-work where possible, rehabilitation where needed, and compensation if required. Accordingly, health and safety management is to be fully integrated into ministry business planning, decision-making, performance management and accountability systems.

In the past year, a revamped system was developed for managing health and safety in the OPS, and it will be implemented in 1997-1998. Changes to the system will provide for a greater co-ordination and integration of health and safety activities in the government. Through performance measurement, there will also be a greater emphasis on managing injury and illness that can affect workplace productivity.

Various publications, which will be tools for managers and support the revamped system, were developed during the year. Subjects covered include the Attendance Support Program, Return-To-Work Program, Health Information Process, Management Framework on Accountability, Best Practices Guide on Managing Substance Abuse and a new workers compensation appeals process.

Further, new standards, such as ministry-specific improvement objectives, will ensure progress is quantified and measured over time.

Under the Internal Administration Project, the focus in staffing is on examining electronic job posting within and across ministries, identifying policy and procedural changes to streamline and accelerate staffing activities, and providing staffing training materials and related information that can be accessed by managers from the Intranet.

OPS restructuring and downsizing have resulted in increasing numbers of surplus staff.

External hiring restrictions have been in effect since November 1992 to maximize the number of opportunities to assign surplus staff within the public service. If no surplus staff are qualified for vacancies, positions must be restricted to existing OPS staff before external recruitment can take place. MBS continues to monitor the hiring of individuals from outside the public service.

"Employment Transition Policy"

A revised policy on management and excluded staff surplus rights was approved by Cabinet in April 1996 after job security negotiations were concluded for OPSEU and AMAPCEO. The surplus entitlements closely parallel those of the administrative/professional bargaining group previously covered by the management/excluded policy.

Exit enhancements for surplus employees include an additional week of severance for each completed year of continuous service; a pension bridging option for eligible employees; and re-opening of the eligibility window for Factor 80 retirement. Non-surplus employees may now job trade with surplus employees for surplus status, allowing employees who wish to leave the OPS to do so.

Labour Relations

MBS represents the government as employer in negotiating collective agreements with bargaining agents representing OPS employees. The following unions and associations bargain at least some employment terms for close to 90 per cent of OPS employees:

• The Ontario Public Service Employees Union (OPSEU)
• The Association of Management, Administrative and Professional Crown Employees of Ontario (AMAPCEO)
• The Professional Engineers and Architects of the Public Service (PEGO) bargain within the provisions of the Crown Employees Collective Bargaining Act (CECBA)
• The Ontario Provincial Police Association (OPPA) bargains under the Public Service Act (PSA)
• The Federation of Provincial Schools Authority Teachers (FOPSAT) bargains under the School Boards Negotiation Act
• The Ontario Crown Attorneys Association (OCAA)
• The Association of Law Officers of the Crown (ALOC)
• The Association of Ontario Physicians and Dentists in the Public Service (AOPDPS) bargains outside of any labour legislation and within voluntary frameworks for limited bargaining.

OPSEU, AMAPCEO, PEGO and FOPSAT have the right to strike. Other groups, except for lawyers who are bargaining a new framework agreement, settle interest disputes through arbitration.

Implementation of New Collective Agreements

During the 1996-1997 fiscal year, considerable staff resources went into negotiating new collective agreements with OPSEU and PEGO, and an interim agreement with AMAPCEO.

The interim agreement with AMAPCEO, ratified in March 1996, focused on employment stability. The agreement with OPSEU, ratified in April 1996, was substantially different from the agreement it replaced.

Both agreements provided for a number of termination benefits, and included the government's commitment that if it decides a service would be best delivered by an organization outside the public sector, it will make reasonable efforts to ensure that the new employer makes job offers to affected employees with terms and conditions as close as possible to what they currently have. Where not all affected employees are offered jobs, the government will make reasonable efforts to ensure the new employer makes job offers on the basis of seniority.

"Job offer guarantee" provisions in the previous OPSEU agreement were discontinued.

Other significant changes included enhanced entitlements for unclassified staff; a more streamlined layoff process and grievance procedure; a moratorium on classification grievances; a process to accelerate the development of a new classification system and provisions for its implementation; and a management rights clause.

Implementation activities included extensive communication of the terms of settlement, a series of management briefings, the preparation of interpretive materials designed for use by managers and human resources professionals, and the provision of information to employees through written materials, an Internet site and a telephone inquiry number.

The PEGO agreement, ratified in August 1996, closely followed the OPSEU agreement in replacing job offer guarantees with a number of revised termination benefits. Implementation activities included briefings and the distribution of information materials to engineers throughout the OPS.

Status of Bargaining

At the end of the 1996-1997 fiscal year, MBS was bargaining with AMAPCEO, FOPSAT, OPPA, ALOC, OCAA and AOPDPS.

The bargaining with AMAPCEO was intended to complete a first full collective agreement. When AMAPCEO was recognized as a bargaining agent in March 1995, a voluntary recognition agreement (VRA) was signed. While CECBA gives AMAPCEO the right to strike, the VRA promised AMAPCEO arbitration, if necessary, for its first collective agreement.

FOPSAT, the OPPA and the AOPDPS are bargaining to replace collective agreements that were extended by the Social Contract. ALOC and OCAA are bargaining jointly for a new framework for negotiations between the Crown and lawyers employed in the public service. Following agreement on a new framework, there will be negotiations within that framework.

Assistance for Ministry Restructuring

Ministries are engaged in a wide range of activities to ensure the cost efficient delivery of public services. Most of these activities have employee and labour relations impacts.

Of particular significance is the undertaking that the government will make reasonable efforts to get job offers for displaced employees from a new employer whenever OPS jobs or functions are transferred. Several guides have been developed to assist ministries. A process is also established that requires a review of ministry plans to ensure that commitments are met.

Grievance Management and Litigation

Grievance arbitration takes place at three forums in the OPS. The arbitration panel that hears the largest number of complaints is the Crown Employees Grievance Settlement Board (GSB), which adjudicates grievances from OPSEU and PEGO and their members. When a collective agreement is reached with AMAPCEO, the GSB will adjudicate grievances from members of this group.

The Ontario Provincial Police Grievance Settlement Board hears grievances filed by the OPPA and its members.

The Ontario Public Service Grievance Board (PSGB) hears grievances from public servants not represented by a bargaining agent. Senior managers and lawyers may only grieve discharge; other management and excluded employees may also grieve issues related to their benefits and working conditions.

All three boards are staffed by order-in-council appointees. As a result of recommendations of the Government Task Force on Agencies, Boards and Commissions, released in March 1996, the institutional framework for OPS grievance arbitration is being reviewed.

During 1996-1997, MBS, ministries and bargaining agents worked to find ways of reducing costs in the processing of grievances. As a result, more grievances were heard through expedited processes and grievances were grouped to address similar issues concurrently. Efforts to reduce costs further will continue into 1997-1998.

The Civil Service Commission (CSC)

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

The 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. 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, specifically in the senior management ranks.

Since the delegation of its human resource functions to the Human Resources Secretariat and subsequently to the Management Board Secretariat (MBS), the Commission 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, 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 at the SMG-1 and 2 levels has been delegated to ministries.)

Some administrative matters which regularly appear on the Commission's agendas are the establishment of classifications and salaries, approval of senior contracts and waivers of competition, and appointment approvals.

The Commission also acts as the Board of Trustees to the Ontario Government Employee Charity Trust, is responsible for some aspects of the William G. Davis Student Award Fund and resolves disputes arising from the Professional and Management Employee Relations Committee. The latter committee was disbanded in the spring of 1996 in favour of a new bargaining group, the Association of Management and Professional Employees of Ontario (AMAPCEO).

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.

Executive Development Committee (EDC)

In October 1985, the Chair of Management Board commissioned a review of human resources management in the OPS. The subsequent report, entitled Managing Human Resources in the Ontario Public Service (also called The Moher Report after W.P. Moher, Manager, Executive Development and Organization, Imperial Oil Limited, who conducted the review) was released in March 1986.

In its findings, the report indicated that the role of deputy ministers in human resources management needed to be clearly defined, especially as it related to executive development, succession planning, and senior appointments and compensation.

As a result, the report recommended establishment of the Executive Development Committee (EDC) to provide a focus for executive leadership in the OPS. The committee is chaired by the Secretary of Cabinet and includes as members the Secretary of Management Board and five other deputy ministers.

The committee's recommended charter was to include corporate organization and effectiveness, succession planning for senior executive positions, development of key executive resources, executive compensation and benefits, and the review of all human resources policies for executives.

The EDC was duly established later in 1986. Its mission was to provide leadership in strategic human resources planning in partnership with other stakeholders in order to build an organizational culture which attracts, motivates, develops and retains senior managers.

In June 1995, an opportunity arose to examine the role of the EDC along with that of the Civil Service Commission. The two committees were aligned and their members cross-appointed.

Alignment:

• streamlined the decision-making process by having two bodies, with their cross appointees, meet together and review issues arising from their respective mandates with the authority to approve
• broadened the involvement of deputy ministers in the decision-making process thereby ensuring a more open and democratic process
• ensured that appropriate staff level reviews are completed prior to their submission to the CSC/EDC for approval (i.e. ensuring a separation between the organizational structure and classification responsibilities of MBS and the recruitment, compensation and appointment considerations dealt with at the joint committee meetings.)

The scope of the aligned committees includes:

• fulfilling the legislated mandate of the CSC, including the assessment over time of the role of the CSC and the Public Service Act and Regulations in upholding the merit principle
• visibly promoting the most advanced and equitable human resource practices at all levels of the public service
• providing a forum for deputy ministers to undertake strategic human resource planning and development for the OPS Senior Management Group (SMG)
• establishing long-term corporate strategies for attracting, developing and retaining the best possible leaders for the OPS
• identifying goals and objectives for the management of the Senior Management Group as a corporate resource
• reinforcing SMG accountability for meeting corporate goals and objectives
• assessing needs and monitoring trends and changing conditions affecting SMGs.

The joint EDC/CSC was established in July 1995. The permanent membership includes the Secretary of Cabinet, who chairs EDC, the Secretary of Management Board, who chairs CSC, and the Associate Secretary of Cabinet/President, Centre for Leadership, who is vice-chair of both committees. In addition, there are five rotating deputy minister members who are appointed for one year terms.

1996-97 Year At A Glance

Ontario Public Service Total Staff Strength
(1996-1997)

Classified Service by Geographic Location (1996-1997)

Ontario Public Service Total Staff Strength
(1996-1997)

Notes

OPS Staff Strength, Classified Service, includes Ontario Provincial Police, Security Guards, and Environment and Energy Plant Operators. For the Unclassified Service, Ministers' staff, Environment and Energy Plant Operators, and G.O. Temp staff are also included. Lieutenant Governor, Provincial Auditor, Ombudsman and 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 1991-92 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 28, 1997 was 2,788.

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

Classified Service

Classified Service by Geographic Location
(1996-1997)

Appendix

Appointments to the Classified Service

By Gender

By Salary Intervals and Age

By Reason and Gender (1996-1997)

NOTE: Percentages do not total 100% due to rounding.