PUBLIC ADMINISTRATION: CHALLENGES AND OPTIONS

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PUBLIC ADMINISTRATION CHALLENGES AND OPTIONS

• SEVEN PERENNIAL DESIGN CHALLENGESA UNION
  PERSPECTIVE
• By
• John L. Fryer
• A World Bank Seminar
• May 4th 2004
• Room No H-1-200

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A Public Sector Union View of Consultations with
the World Bank

• You indict us in our absence
• You try us in our absence
• You convict us in our absence
• And then invite us to consult on the method of
  our execution.
• Larry Brown, Secretary Treasurer
• National Union of Public General Employees
  (NUPGE-Canada)

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Introduction

• Sincere thanks to Gary Reid for invitation.
• Delighted to learnlast Thursday, April 29th,
  during PREM Learning Weekfrom PREM VP Gobind
  Nankani as well as VP for Human Development
  Jean-Louis Sarbib that World Bank believes in
  and supports real consultations with unions.
• Also happy to hear on April 30th from PREM Public
  Sector Governance Director Sanjay Pradhan that
  his department strongly supports the bottom up
  approach to consultations with public sector
  unions.
• So it is clear that all of you can help greatly
  in making these wishes a reality at the country
  level.
• Therefore my purpose today is to identify
  approaches to public employee consultation
  designed to maximize positive outcomes.

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SEVEN PERENNIAL DESIGN CHALLENGES

• Pleased to accept Gary Reids Seven Point
  template.
• Reference introductory paper and indicate general
  agreement that any nation and their people are
  generally well served by an efficient and
  effective public service.
• Might not share ideological imperative that
  small is always beautiful.

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DESIGN CHALLENGE 1BIG BANG VERSUS INSTITUIONAL
REFORMS

• Preference for institutional reform with clear
  goals and targets.
• Need to understand union viewpoint that loss of a
  job is equal to economic capital punishment.
• Generally means death sentence to workers future
  standard of living as well as that of family
  members.
• Must, therefore, expect resistance.

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DESIGN CHALLENGE 2ENSURING ADEQUATE PLANNING OF
REFORM EFFORT

• Agree and urge very early involvement of
  unions/associations representing workers likely
  to be affected.
• Appoint member of country team to have specific
  responsibility for union consultation and
  liaison.
• Creative consultative mechanism with maximum
  union input (i.e. joint chairs).
• Consider assistance to unions to build
  capacitydesigned to improve capacity of unions
  to engage meaningfully.
• Use facilities of WBI to plan such training at
  country level.

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DESIGN CHALLENGE 3ADDRESSING SOURCES OF
RESISTANCE

• Expect union push back.
• Engage unions, from outset, in design and purpose
  of downsizing plans.
• Consider carefully union input with regard to
  design of implementation program and timetable.
• Be sure to keep all workers aware of plans and
  their time frame.

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DESIGN CHALLENGE 4SEQUENCING

• Ensure that any salary adjustments (not just
  major) follow completion of all other steps in
  adjustment program(s).

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DESIGN CHALLENGE 5TARGETING
REDUCTIONSHIGHLIGHT RATIONALE FOR EACH OPTION,
KEY CHALLENGES OF EACH OPTION AND DEVICES FOR
ADDRESSING THESE CHALLENGES

• Involve unions and members in design,
  prioritization as well as implementation.
• Emphasize voluntary attrition.
• Ensure fairness (across the board?).
• Make every effort to minimize pain involved in
  programs of right sizing.

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DESIGN CHALLENGE 6FACILITATING RE-ENTRY INTO
LABOR FORCE FOR DISMISSED EMPLOYEES

• Fully involve unions and members in design of
  both assistance and re-entry assistance programs
• Learn from extensive previous experience (i.e.
  Armour Automation CommitteeGeorge Schultz)
• Programs tailor made to individual assistance
  strategies known to work best.

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DESIGN CHALLENGE 7MAKING SEVERANCE PAY PROGRAMS
EFFECTIVE

• Determine severance budget in advance.
• Be prepared to allow maximum union involvement in
  design and implementation of severance programs.
• Resist desire to object to seniority and/or
  family obligations in design.
• Be willing to allow union to administer severance
  programs and thus allow unions to accept
  criticism and handle complaints from individual
  employees.

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IN SUMMARY

1. Be sure to let union leaders know, at the outset,
   that the World Bank welcomes their input.
2. Begin consultative process at earliest
   opportunity.
3. Encourage bottom up involvement by unions
   representing affected employees.
4. Ensure client governments understand that union
   involvement will be part of the process.
5. Anticipate and accept that there will be
   resistance to retrenchment by unions
6. Be, at all times, open to their input and let
   them know that if they have a better idea, you
   will work for its acceptance.
7. Be sure that unions receive positive
   reinforcement for constructive contributions to
   the overall program.