Circular 1998/3: Managing downsizing in the APS

Please note: This document is for reference purposes only and is no longer considered by the APS Commission to be current. It may contain good practice advice and/or advice on the transitional arrangements between the 1922 and 1999 Public Service Acts.

Purpose

The purpose of this circular is to advise agencies of changes to the strategy for managing the staffing consequences of reductions in running costs.

2. In Circular No. 1996/7 of 18 April 1996 titled Managing the Staffing Consequences of a Reduction in Running Costs agencies were advised of decisions taken by Government concerning the strategy for managing down staff numbers within a set of common, Service-wide parameters.

3. Following a review of the strategy and a report to the Minister Assisting the Prime Minister for the Public Service the revised strategy outlined in this circular was developed and agreed. This circular replaces the advice provided in Circular No. 1996/7.

4. The changes to the strategy go towards reducing the level of central co-ordination over the process of managing reductions in APS staffing and recognising the new flexibilities arising from the Workplace Relations Act 1996. In a more devolved environment, agencies are expected to achieve the savings required to meet budget commitments and to manage any downsizing within this broad strategy.

5. Agencies are also expected to manage excess staffing situations with proper regard for the rights and interests of all staff of the agency and the obligations under the redeployment and retirement framework which applies in the agency.

Changes to the strategy

6. The main changes to the strategy are the:

disbandment of the Committee of Senior Officials overseeing reductions in APS staffing;
replacement of the quarterly survey of agencies and report to the Minister with a six monthly report to the Minister based on data derived from official statistics; and
cessation of the mandatory scrutiny of vacancies by APS Labour Market Adjustment Program (APSLMAP) prior to advertising in the Gazette.

Revised strategy

7. The key elements of the new strategy are:

Six monthly reports
The PSMPC will provide the Minister Assisting the Prime Minister for the Public Service with a report every six months on APS downsizing using data derived from official statistics.

There will no longer be a requirement for agencies to complete quarterly reports on the management of downsizing within agencies or for their strategies to be oversighted by the Committee of Senior Officials.
APS Labour Market Adjustment Program
The redeployment and retirement provisions of the APS General Employment Conditions Award 1995 and the Continuous Improvement in the APS Enterprise Agreement: 1995-96 (the Service-wide redeployment and retirement provisions) cover the management of excess staff situations in the APS, except where there are agency specific redeployment and retirement provisions under a certified agreement or Australian Workplace Agreements. Under the APS Enterprise Agreement an agency is obliged to immediately refer an excess employee who is seeking redeployment, or who has declined an offer of voluntary retrenchment, to APSLMAP whereas the role, if any, for APSLMAP under a certified agreement or AWA will be described in the document itself.

The Government continues to support the effective redeployment of excess staff. Redeployment provides substantial direct savings on redundancy, recruitment and training costs, both to the APS agency and to taxpayers, and provides indirect savings because the Commonwealth is able to retain people with the skills and experience it requires. Importantly, it also provides individuals with a chance to continue their APS careers.

Accordingly, agencies not covered by the Service-wide redeployment and retirement provisions are encouraged to work with APSLMAP in resolving the people aspects of structural change by referring staff for career advice and assisting with the redeployment of excess staff.
Consideration of excess employees for transfer
The Government has decided that there will no longer be a mandatory requirement for APSLMAP to be advised of vacancies prior to advertising. Currently APSLMAP has five working days to consider whether a suitable excess employee may be available for transfer to a vacancy. Vacancies lodged with the Gazette office will still be monitored by APSLMAP, but there will no longer be a delay in advertising.

Agencies, however, should consider the placement of their own surplus or excess staff when a vacancy arises and should consider contacting their local APSLMAP career adviser before advertising a vacancy if they think there is any likelihood that an excess employee may have the skills required for that vacancy (a list of career advisers and contact numbers is at Attachment A). This action will not only streamline the placement of excess staff, it could reduce the time it takes to fill a vacancy and produce savings for agencies in terms of advertising, interviewing and training costs.

In agencies covered by the Service-wide redeployment and retirement provisions, or by agency specific arrangements under a certified agreement or Australian Workplace Agreements which replicate those provisions, their excess employees must be considered in isolation from and not in competition with other applicants for any vacancy advertised in the Gazette in such agencies to which they seek transfer.
External recruitment and the employment of temporary staff
Consistent with the Government's intention to maximise redeployment of excess staff, agencies should seek to fill substantive and long term vacancies with suitable excess or potentially excess staff before considering advertising the vacancy.

The Government recognises that external recruitment is required to meet a number of broad objectives including the recruitment of staff with specialist skills and to minimise longer term workforce planning problems. The Government also recognises that the engagement of temporary employees is a sensible strategy for dealing with changing workload requirements and with activities of a specific duration. All recruitment and temporary engagements, however, must recognise the need to maintain the integrity of the merit principle and the need to try to redeploy excess staff in the APS.

In the past vacancies could be advertised for external filling only in exceptional circumstances. Now vacancies can be filled externally or by use of temporary staff where the Secretary believes it is necessary for the efficient and effective operation of the agency to take such action.
Restriction on re-appointment of staff who have accepted voluntary retrenchment
The current restriction on the re-employment of APS employees who accept an offer of voluntary retrenchment remains. An APS employee who has accepted an offer of voluntary retrenchment is not eligible to apply for appointment or be selected for temporary employment within 12 months of their retirement, unless otherwise allowed. These arrangements were notified in PSMPC Circular No 1997/8 of 5 June 1997 on Restrictions on the Employment of People who have Accepted Voluntary Retrenchment. A revised notification has been gazetted which will extend the operation of this restriction to employees covered by certified agreements or Australian Workplace Agreements and a circular will be issued shortly providing details of the revised notification.
Use of Temporary Performance (Higher Duties)
Agencies should continue to avoid the use of higher duties as far as possible and consider whether it is essential that the duties of a position be carried out while it is temporarily vacant and explore the use of other options to keep temporary performance to a minimum.

Should there be no further need for duties to be performed on a higher duties basis, existing directions to act can be revoked or varied in writing by the Secretary at any time under Public Service Regulation 116A.
Termination of employment of probationers
Agencies are under no obligation to confirm the appointment of an officer on probation where the Secretary is satisfied that, in view of changed circumstances, the officer is now excess to requirements. Further information on the termination of employment of probationers is contained in Essentials No.5 - Appointment and Probation booklet. Probationers are not covered by the Service-wide redeployment and retirement provisions.
Early retirement of displaced SES staff
Senior Executive Service officers are not covered by the Service-wide redeployment and retirement provisions. Information on the management of surplus SES staff is contained in the Guidelines for Departments and APS Agencies: Management of Displaced SES Officers issued to all agencies in 1992.
Use of Independent Convenors to develop an order of ranking
Where large numbers of staff are potentially excess, agencies can continue to use independent convenors of the PSMPC to develop an order of ranking, on a fee for service basis. While these convenors are staff of the PSMPC they can act as independent convenors under the Merit Protection (Australian Government Employees) Act 1984 .

Further information

8. Enquiries in relation to the issues raised in this circular should be directed to the PSMPC hotline on (02) 6202 3859.

Peter Kennedy
Deputy Public Service Commissioner

February 1998

Attachment A

APSLMAP Careers Advisers: Locations and Contacts

ACT
Sue Crawford
Career Transition Services
Public Service and Merit Protection Commission
4th Floor, Edmund Barton Building
BARTON ACT 2600
Ph (02) 6272 3915
Fax (02) 6272 3073

Graham Hannaford
Career Transition Services
Public Service and Merit Protection Commission
4th Floor, Edmund Barton Building
BARTON ACT 2600
Ph (02) 6272 3912
Fax (02) 6272 3073

Rainer Listing
Career Transition Services
Public Service and Merit Protection Commission
4th Floor, Edmund Barton Building
BARTON ACT 2600
Ph (02) 6272 3911
Fax (02) 6272 3073

New South Wales
Jane Quin
Career Transition Services
Public Service and Merit Protection Commission
Level 16, 447 Kent Street
SYDNEY NSW 2000
Ph (02) 9286 2450 or (02) 9286 7862
Fax (02) 9267 1196

Northern Territory and Tasmania
APSLMAP has associated consultants in these regions; contact the ACT office for information.

Queensland
Robin Lawrance
Career Transition Services
Public Service and Merit Protection Commission
11th Floor, 300 Ann Street
BRISBANE QLD 4001
Ph (07) 3229 7865
Mobile 0419 259 357
Fax (07) 32210806

South Australia
Allan Wadham
Career Transition Services
Public Service and Merit Protection Commission
3rd Floor, 70 Hindmarsh Square
ADELAIDE SA 5001
Phone (08) 8232 7282
Mobile 0419 259 349
Fax (08) 8223 5866

Victoria
Diane Di Battista
Career Transition Services
Public Service And Merit Protection Commission
12th Floor, 257 Collins Street
MELBOURNE VIC 3000
Ph (03) 9650 7490
Mobile 0419 266 059
Fax (03) 9654 6278

Western Australia
Susan Kurtjak
Career Transition Services
Public Service and Merit Protection Commission
Level 27, Exchange Plaza, 2 Sherwood Court
PERTH WA 6000
Phone (09) 221 7610
Mobile 0419 259 358
Fax (09) 221 7767

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