Civil Service Reform

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• Civil Service Reform

http//hr.dop.wa.gov/hrreform
Department of Personnel January 2003
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Presentation Agenda and Topics

• Civil service reform bill in brief
• Contracting out
• Collective bargaining
• New human resource system
• Research findings
• Where we are now
• Next Steps

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Civil Service Reform (SHB 1268)
Three Key Components
Contracting out
Provisions effective in 2005
Collective bargaining
Will apply only to employees in bargaining
units Contracts effective 2005
New human resource system
Will apply to all employees not in bargaining
units Some provisions will apply to employees in
bargaining units Effective in 2005
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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 identified
• Employees provide alternatives
• If decision to contract out
• Employees may form a business unit
• Respond to bid as would a private sector provider

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Contracting Out (cont.)

• Bid process requires
• Existence of a competitive market
• 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
• Training for employees to be provided by
  Department of Personnel
• Rules to be adopted by General Administration and
  subject to full scope collective bargaining
• Provisions effective July 2005

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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
• Governors Office negotiates contracts for state
  agencies
• Office of Labor Relations in OFM
• Director is Gary Moore
• 12-15 staff comprised of researchers, analysts,
  and negotiators
• Funded by state agencies with staff in bargaining
  units

Higher education institutions may choose to
have Governors Office negotiate their contracts
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Collective Bargaining (cont.)

• 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 (e.g., structure of an
  organization, use of technology, agency size or
  budget)
• Financial basis for layoff
• Directing and supervising staff
• Optional (determined by OFM)
• Classification system rules pertaining to exams,
  job referral criteria, appointments, affirmative
  action, delegation of authority

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Collective Bargaining (cont.)

• 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 Governors 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

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Collective Bargaining (cont.)

• A master agreement with each union with gt500
  members will be negotiated (approximately 7
  master agreements)
• Washington Federation of State Employees25,000
• The Teamsters4500
• Washington Public Employees2800
• Local 17 Professional and Technical
  Engineers2600
• United Food and Commercial Workers775
• Local 1199 Service Employees800
• Remaindercoalition bargain
• Each master agreement (contract) will apply to
  all agencies that have employees in bargaining
  units represented by that union

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Collective Bargaining (cont.)
Unions
Negotiations
Negotiations with States Chief Negotiator
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Collective Bargaining (cont.)
Unions
Negotiations
Master Contracts
Negotiations with States Chief Negotiator
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Collective Bargaining (cont.)
Potential application within agencies
Unions
Negotiations
Master Contracts
Negotiations with States Chief Negotiator
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Collective Bargaining (cont.)

• 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
• For those not covered
• 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

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New Human Resource System

• 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 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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The Timeline
Adopt begin implementation of new HR system
New classification compensation system in place
New job classification system designed
July 02 Jan 03 July 03 Jan 04 July 04 Jan
05 July 05 Jan 06
Collective bargaining begins no later than this
date
Collective bargaining contracts in place
Contracting out provisions apply
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The Real Timeline
Communications and feedback
Training/guidelines for new HR system
Implement all other new HR system
Adopt begin implementation of new HR system
Implement new hiring process
Implement new comp/class
Design all other new processes
Design new rectmt hiring system
New classification compensation system in place
New job classification system designed
Design new compensation system
Develop new classification system
IS Feasibility funding
HR/Customer research
July 02 Jan 03 July 03 Jan 04 July 04 Jan
05 July 05 Jan 06
Hire Chief Negotiator
Determine HRIS capability
Collective bargaining begins no later than this
date
Collective bargaining contracts in place
Collective bargaining
Determine contracting out provisions
Contracting out training
Contracting out provisions apply
Communications
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HRIS Feasibility Study

• Impact of civil service reform and collective
  bargaining on central personnel/payroll system
• System could limit timing and scope of changes
  that can be successfully implemented
• Feasibility Study completed in Dec. 02
• Identified requirements to implement the CSR/CB
  bill and to meet long term needs
• Considered several options
• Recommended replacing current system with a
  commercial off-the-shelf software package
• Implementation of first phase by January 1, 2005

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HR System Research

• A team worked from June through August collecting
  information from
• All 50 states, federal and local government,
  other countries
• Selected universities, private sector, and HR
  organizations
• Dozens of reports, articles, books, and web sites
• Several states have
• Completed classification reform and now have only
  200-300 broad job classes
• Moved away from automatic step increases to pay
  for performance
• Implemented a combination of seniority and
  performance for layoff and re-hire
• Report available at http//hr.dop.wa.gov/hrreform

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Customer 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 agencies and
  job levels
• Focus groups and feedback forums
• More than 50 information and feedback sessions
  held throughout the state
• On-going feedback forum on web site
• Report available at http//hr.dop.wa.gov/hrreform

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General design criteria for the states 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

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What should be the basis for salary increases?
Longevity only
Performance only
Combination of longevity and performance
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What should be the basis for salary increases?
Longevity only
Performance only
Combination of longevity and performance
Development of special job-related skills
knowledge
Greater responsibility within same job
classification
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Lump sum bonus to recognize special
accomplishments?
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Career growth and mobility
Ability to apply for jobs at any time
Disagree
SomewhatDisagree
SomewhatAgree
Agree
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Career growth and mobility
Ability to apply for jobs at any time
Desirable qualifications, rather than minimum
qualifications
Disagree
SomewhatDisagree
SomewhatAgree
Agree
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Career growth and mobility
Consider all qualified candidates, rather than
Rule of 7 limit
Disagree
SomewhatDisagree
SomewhatAgree
Agree
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Career growth and mobility
Consider all qualified candidates, rather than
Rule of 7 limit
Set aside promotional preference in candidate
referral
Disagree
SomewhatDisagree
SomewhatAgree
Agree
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RIF Issues
What should be basis for determining lay-off
during a RIF?
Longevity only
Performance only
Combination
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RIF Issues
What should be basis for determining lay-off
during a RIF?
Longevity only
Performance only
Combination
What should be the basis for re-employment from
lay-off?
Longevity only
Performance only
Combination
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Where We Are Now

• Interagency teams developing initial design of
  key components of new HR system
• Classification and compensation
• Recruitment and selection
• Reduction-in-force (RIF) process
• Performance Management
• Recognition and rewards
• Performance appraisal and monitoring
• Disciplinary and corrective action
• Work/Life Balance
• Further input opportunities as components of new
  HR system are being developed
• Information and feedback sessions will be held
  around the state in late spring and early summer

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Next Steps
Adopt begin implementation of new HR system
Customer feedback on concepts
Rule-making process begins
New classification compensation system in place
New job classification system designed
Concept teams complete options
Jan 03 Mar 03 July 03
Mar 04 July 04
July 05
Collective bargaining begins no later than this
date
Collective bargaining contracts in place
Contracting out provisions apply
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Communications

• Informational presentations as requested
• Web site at http//hr.dop.wa.gov/hrreform
• Ongoing feedback forum
• Research reports available
• Widely distributed employee updates, electronic
  newsletters and briefs
• HR2005 listserv (sign up on web site)

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http//hr.dop.wa.gov/hrreform