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Personnel ReformPersonnel Reform
Department of Personnel September 2002
http://hr.dop.wa.gov/hrreform
Contracting out
Collective bargaining
New human resource system
Will apply only to employees in bargaining units
Contracts effective 2005
Will apply to all employees not in bargaining units
Some provisions will apply to employees in bargaining units
Effective in 2004 & 2005
Provisions effective in 2005
Civil Service Reform (SHB 1268)
Th
ree
Key
Co
mp
on
ents
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Contracting Out Competitive contracting out expanded to
include services “traditionally and historically provided by state employees”
Employees have opportunity to offer alternatives, and to compete for the work
Activity is identifiedEmployees provide alternativesIf decision to contract out:
• Employees may form a business unit• Respond to bid as would a private sector
provider
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IFB/RFPExistence of a competitive market
Requires measurable standards for performance
Provision requiring entity to consider employment of state employees who may be displaced
Consideration of risk associated with failed performance by the contractor
Contracting Out (cont.)
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Cost proposals from Employee Business Units include:
Staff
Space
Equipment and materials
Other
Indirect costs are excluded unless directly attributable to the activity or function under consideration
Contracting Out (cont.)
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Training for employees to be provided by Department of Personnel
Rules to be adopted by Department of General Administration and subject to full scope collective bargaining
Provisions effective July 2005
Contracting Out (cont.)
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Collective Bargaining Will apply to all employees who are part of a
collective bargaining unit
Currently, approximately 55% of all employees or 38,000
Employees excluded from bargaining:
Washington Management Service Exempt and confidential employees Internal auditors Staff in DOP, OFM, and portions of AGO Judiciary and legislative employees
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Exempt employees will be covered by personnel rules adopted by the director of the Department of Personnel
Salary increases and benefits will be determined by Governor and Legislature same as today
Collective Bargaining (cont.)
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Mandatory subjects for bargaining: Wages and hours
Insurance benefits – only the dollar amount
Other terms and conditions of employment
Excluded from bargaining: Pensions
Inherent management policy including• Structure of an organization
• Use of technology
• Agency size or budget
Directing and supervising staff
Collective Bargaining (cont.)
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Optional (determined by OFM): Financial basis for layoff
Classification system; rules pertaining to exams, job referral criteria, appointments, affirmative action, delegation of authority
Collective Bargaining (cont.)
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Bargaining begins no later than July ’04
Reality is bargaining must begin sooner
Contracts are to be submitted to OFM in Oct ’04 to be included in the Governor’s budget request for ’05-’07
Contracts are approved up or down by the legislature and become effective July ’05
Contract period is for two years
Governor’s Office negotiates contracts for state agencies*
Collective Bargaining (cont.)
* Higher education institutions may choose to have Governor’s Office negotiate their contracts11
Office of Labor Relations in OFM New director – Gary Moore
12-15 staff comprised of researchers, analysts, and negotiators
Funded by state agencies with staff in bargaining units
Collective Bargaining (cont.)
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A master agreement with each union with >500 members will be negotiated (approx. 7 master agreements)
Washington Federation of State Employees–25,000 The Teamsters–4500 Washington Public Employees–2800 Local 17 Professional and Technical Engineers–2600 United Food and Commercial Workers–775 Local 1199 Service Employees–800 Remainder–coalition bargain
Each master agreement (contract) will apply to all agencies that have employees in BU’s represented by that union
Collective Bargaining (cont.)
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Unions Negotiations
Negotiations with State’s
Chief Negotiator
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Unions Negotiations Master Contracts
Negotiations with State’s
Chief Negotiator
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Unions Negotiations Master ContractsPotential application
within agencies
Negotiations with State’s
Chief Negotiator
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Civil Service Reform
New human resource (personnel) system applies to: All employees who are not in bargaining units Partially for employees in bargaining units
The new HR system will replace the present civil service system which has been in place for nearly 43 years
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New Human Resource System (cont.)
New structure, rules, and processes for: Job classification Compensation Recruitment, selection, referral, hiring Performance management Training and development Basis for RIF and re-employment from RIF Corrective and disciplinary action Other aspects of HR management
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July 02 Jan 03 July 03 Jan 04 July 04 Jan 05 July 05 Jan 06
New job classification
system designed
New classification & compensation system
in place
Adopt & begin implementation of new HR system
Collective bargaining begins no later than this date
Collective bargaining contracts in place
The Timeline
Contracting out provisions apply
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New job classification
system designed
Adopt & begin implementation of new HR system
July 02 Jan 03 July 03 Jan 04 July 04 Jan 05 July 05 Jan 06
New classification & compensation system
in place
Collective bargaining begins no later than this date
Collective bargaining contracts in place
Contracting out provisions apply
HR/Customer research
IS Feasibility & funding
Develop new classification system
Design new compensation system
Design new rectmt & hiring system
Design all other new processesImplement new comp/class
Implement new hiring process
Implement all other new HR system
Training/guidelines for new HR system
Hire Chief Negotiator
Determine HRIS capability
Collective bargaining
Determine contracting out provisions
Contracting out training
Communications
The Real TimelineCommunications and feedback
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New job classification
system designed
Adopt & begin implementation of new HR system
July 02 Jan 03 July 03 Jan 04 July 04 Jan 05 July 05 Jan 06
New classification & compensation system
in place
Collective bargaining begins no later than this date
Collective bargaining contracts in place
Contracting out provisions apply
HR/Customer research
IS Feasibility & funding
Develop new classification system
Design new compensation system
Design new rectmt & hiring system
Design all other new processesImplement new comp/class
Implement new hiring process
Implement all other new HR system
Training/guidelines for new HR system
Hire Chief Negotiator
Determine HRIS capability
Collective bargaining
Determine contracting out provisions
Contracting out training
Communications
The Real Timeline
Right now, we are here
Communications and feedback
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HRIS Feasibility StudyHRIS Feasibility Study
Impact of civil service reform and collective bargaining on central personnel/payroll system
Executive Steering Committee Eight cabinet directors
The study will look at the following options: Purchasing a commercial “off-the-shelf” system Extending the existing system Integrating a hybrid solution
• purchasing/building new components• major modifications of key existing system components
The study will give recommendations for: Best approach to implement the CSR/CB bill Long-term options for the system and costs
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HR System Research EffortsHR System Research Efforts
A team worked from June through August collecting information from:
all 50 states 24 counties 16 cities 18 private companies 7 universities the federal government 4 other countries dozens of reports, articles, books, and web sites
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Research FocusResearch Focus
The information gathering efforts were focused on these key human resource topics:
classification reform compensation practices recruitment and selection leave reduction-in-force (RIF) practices performance assessment collective bargaining
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Preliminary ResultsPreliminary Results
Some of the interesting findings from states include:
Several states have completed classification reform and now have only 2-300 broad job classes
Several states have moved away from automatic step increases to pay for performance
Several states use a combination of seniority and performance for layoff and re-hire
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Customer ResearchCustomer Research
Extensive surveying of state employees, managers, and human resource staff to determine needs and preferences
Approximately 4,200 employees responded - representing broad cross section of all agencies, job levels
216 managers 86 human resource staff
Focus groups and feedback forums 10 focus groups made up of agency managers and HR staff 44 information and feedback sessions scheduled throughout
the state
On-going feedback forum on web site
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Survey Results
Basis for salary increases
74% of employees felt salary increases should be based on a combination of performance and longevity.
Only 10% felt salary increases should be based solely on longevity.
81% of managers and 72% of HR staff felt it was important to factor in performance.
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Survey Results
Lump sum bonus
69% of employees felt there should be a provision to allow a lump sum bonus to recognize special accomplishments.
61% of managers and 56% of HR staff said this was important
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Survey Results
Recruitment & Selection
77% of employees were in favor of considering all qualified candidates, rather than the “Rule of 7”
84% of managers and 80% of HR staff felt the same way
73% of employees agreed that promotional preference should be set aside in favor of the best qualified
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Survey Results
Basis for determining lay-off
All three groups favored a combination of longevity and performance in determining RIF
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62% 67%
51%
6%
20%15%
30%
12%
34%
Employees Managers HR Staff
Combination
Performance Only
Seniority Only
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General design criteria for the state’s new HR system
Minimal number of rules
Ensures fair treatment for employees & managers
Easy to understand and simple to use
Fast and responsive to a variety of needs and situations
Open and flexible; provides multiple options
Adaptable to change; can be easily modified & improved
Automated to the degree possible
Focused on outcomes, rather than process
Next Steps
Analyze research findings and share results Confirm design criteria for new HR system Establish teams to develop new HR system On-going communications
Informational presentations Web site at hr.dop.wa.gov/hrreform Widely distributed employee updates, electronic
newsletters and briefs
Further input opportunities as components of new HR system are being developed
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http://hr.dop.wa.gov/hrreformhttp://hr.dop.wa.gov/hrreform