Prepared by Consulting and Audit Canada - February, 1997
The following report is intended to provide a more detailed and comprehensive
assessment of the review that was undertaken on the initial workforce adjustment
activities for the Treasury Board Secretariat (Secretariat) on which we had
previously reported March 28, 1996.
Background
Consulting and Audit Canada have undertaken a review of the Workforce
Adjustment Programs that have been utilized by the Secretariat in achieving its
employment adjustment initiatives. These initiatives were the result of a
government-wide program review.
To assist departments in managing their activities of expenditure and
workforce reduction, the federal government introduced two new incentive
programs. The Early Departure Program (EDI) and the Early Retirement Program
(ERI) were added to the existing Workforce Adjustment Directive (WFAD), and the
Executive Employment Transition Policy (EET).
Due to the size and significance of the restructuring and downsizing
initiative, a large number of policies, procedures and administrative
infrastructure had to be developed. All of these developments were aimed at
assisting departments and agencies in managing their ERI, EDI, WFAD, and EET
programs. The most significant guide available to all departments was a
monitoring framework entitled: Workforce Adjustment Departmental Monitoring
Framework for EDI and ERI Programs. Our review focused primarily on the issues
and indicators within this guide and the extent to which the Secretariat has
managed and monitored its workforce reductions.
The program review exercise and the budget of February 1995 had a significant
impact on the Secretariat. Its operating budget was reduced by $14.6 million and
the workforce was reduced by 170 FTEs. (19% of the Secretariat's workforce).
Review Strategy for Phase One
The review methodology consisted of documenting the systems and processes
utilized in managing Workforce Adjustment Programs. To assess these areas,
interviews, file reviews and analysis of information and management practices
were required. As part of the review, the following information was examined.
- The documentation being maintained by the Financial Services Division and
Personnel Services Division.
- The methods and modes of information communicated on workforce
adjustments.
- The utilization of the Alternates Program, and the reporting and
assessment of this program.
As this workforce reduction is an ongoing program over a three year time
frame, the program will require further review and assessment as to target
reduction and other human resource issues. This particular review covers the
first nine months (April 1st, 1995 to December 31, 1995.)
Departmental Workforce Adjustment Program - Findings
The Business Plan for 1995 to 1997/98 identified in broad terms the core
activities that would form the basis of the Secretariat's operations. Although
the document outlines strategic directions and new initiatives for the
Secretariat, workforce reduction numbers are simply identified as an aggregate
number of approximately 170 FTE's.
Our review was able to identify that management had communicated the results
of budgetary reductions to the Secretariat staff through a series of meetings
and E-mails.
From these announcements it was evident that involuntary departures would be
held to a minimum.
To manage the initial exercise, employees were encouraged to indicate their
individual interest in a departure incentive. A Human Resources Committee was
subsequently established that reviewed all requests' for a cash-out. We were
unable to establish how the Committee actually operated as little documentation
exists with respect to the Committee's meetings or decisions on downsizing. No
documentation was available that would indicate that cash-outs had been
determined on a functional or specific activity review basis.
For employees in receipt of a cash-out, there was documentation to indicate
that counselling and assistance were readily available. Information sessions or
departure programs were held and each departing employee was assigned a human
resource counsellor.
All fifty-five cash-outs were examined to determine that basic documentation
was completed. Fifteen of the cash-outs were examined in considerable detail to
determine if the payments had been made in accordance with the ERI, EDI arid EET
policies and eligibility criteria. All fifteen cases were assessed as meeting
the required eligibility criteria.
The following sets out the exact nature and magnitude of the Secretariat's
Workforce Adjustment Program. The data covers the period April 1st, 1995 to
December 31, 1995.
Treasury Board Secretariat
Cash-Outs by Month
|
Treasury Board Secretariat
Cash-Outs by Type
(EDI, ERI, WFAD, EETP)
|
April/95
May/95
June/95
July/95
August/95
September/95
October/95
November/95
December/95
Total |
1
10
21
15
1
4
1
1
1
55
|
ERI
EDI
WFAD
EETP
Total |
37
10
3
5
55
|
Treasury Board Secretariat
Cash-Outs by Organization
|
HRB
OLEEB
PB
FIMB
INFA
Other
Total
|
24
4
14
10
1
2
55
|
Impact on Employment Equity Target Groups
As of this review, the Secretariat was in the process of reviewing and
analysing Statistics on target groups (i.e. visible minorities, aboriginals,
persons with disabilities and female EX's). Although numbers had been provided
to the review team, further monitoring will be required to clearly establish the
precise effect that downsizing may have had on these groups.
Areas for Improvement
As of this review, the Secretariat has not finalized its calculations with
respect to pay back periods. The responsible financial officer was closely
monitoring salary reductions by the individual branches against approved salary
budgets. As it is the Secretariat's intention to return to this review in the
Second year, pay back periods shall be examined in detail at that time to assess
average pay back times that are being achieved.
The Secretariat should also strengthen the documentation it maintains on
workforce adjustment decisions. Some indication as to why a position is being
abolished (i.e. reduced effort, lack of work, discontinuance), should be visible
within the documentation supporting the reduction and cash out.
In conclusion, and based on our preliminary review, we have determined that
the Treasury Board Secretariat has managed its critical reductions in a
satisfactory manner.
Subsequent to this initial phase one review, the Secretariat has undergone a
major restructuring. This development has substantially altered all Branches and
will significantly alter the numbers of employees that may be subject to the
workforce reduction program in the future. As agreed to in our recent
discussions with the Director, Financial Services Division and the Director,
Human Resources Division, the second phase of our review will commence in early
April 1997.
We would be pleased to meet with you, at your convenience, to discuss this
report with you.
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