2002/03 Annual Service Plan Report Public Service Employee Relations Commission

Commission's Role and Services

Commission Vision, Mission and Values

Vision

The Government of British Columbia is a preferred employer that attracts, retains and develops people with talent and commitment to the public service.

Mission

The Commission provides Human Resource leadership, governance and management to assist the public service to effectively deliver programs and services to British Columbians.

Values

• We have clear priorities that we openly communicate to our clients.
• We are professional and non-partisan.
• We are publicly accountable for results.

Overview

2001/02 to 2002/03 was a year of incredible transition for the Public Service Employee Relations Commission. In addition to carrying out its responsibilities for human resources management and development across the public service, considerable effort and energy was focused on the following areas:

Workforce Adjustment — The Commission played a key role in managing the workforce adjustment process across the public service.

Public Service Renewal — The Commission led efforts to 'rebuild and sustain a professional public service' through a variety of strategies and projects.

HR Organization Project — The human resource function was identified for consolidation across the public service in order to increase both efficiency and effectiveness. Planning and implementation of all aspects of this process were completed over this fiscal year. The scope of this effort was considerable and involved collaborative planning processes with Ministry Executives and the entire HR community. It included finalizing of models and structures, review of all major business processes for efficiency and effectiveness, and determination of staffing levels, filling of positions, and associated workforce adjustment for the HR community.

March 31, 2003 marked the last day of operation for the Commission as the structure and mechanisms for human resource management services were completely transformed. As of April 1, 2003 the new consolidated services were provided through the BC Public Service Agency. Accordingly, this is the final annual report for the Public Service Employee Relations Commission.

Commission Operating Context

Link to Government's New Era Vision and Strategic Plan

"The best public service in Canada" is the goal that drove this year of transition to the BC Public Service Agency and Leadership Centre. Processes were designed and implemented to ensure the new organizations would provide leadership in people management and human resource practices. At the same time a focus on cost-effectiveness and efficiency was required for future success. In implementing the new model, the HR Organization Project team modeled the values of connecting with clients, providing excellence in service, and achieving results. The resulting organizations, launched on April 1, 2003 accomplished one of the Commission's top priorities: the consolidation of human resource management across government.

Core Services Review Mandate for the Commission

The Commission's mandate under the Core Services Review was to support government's workforce adjustment plan; and, to develop a human resource strategy to support the Public Service Renewal initiative. This mandate was fully served with the transition to the BC Public Service Agency and Leadership Centre and the successful completion of the second year of workforce adjustment.

The Changing Face of Human Resource Management

As fiscal pressures continue to impact government, societal and demographic changes influence the province's workforce. To be effective, human resource management must be state-of-the-practice, without duplication and able to enhance employee performance to achieve results. The BC Public Service Agency and Leadership Centre position the province to respond to the changing needs of government and its workforce for the long-term.

Update of New Era Commitments

Merit Legislation

The first report of the Merit Commissioner was tabled in the Legislature in May 2002. Subsequent reports will be tabled annually.

Strategy for Recruitment and Retention of a Professional Public Service

This was a key project charged to the Commission. As discussed in the Core Business Areas and Performance Reporting sections, the renewal initiatives to rebuild and sustain a professional and qualified public service have been developed and will be implemented with the launch of the new British Columbia Public Service Agency April 1, 2003.

Core Business Areas

HR Strategy and Policy

Overview

The Commission develops and implements policies and guidelines related to terms and conditions of employment and the effective management of public service human resources. It prepares draft legislation, regulations and policy directives for the approval of the Minister Responsible for the Public Service.

The Commission provides ongoing policy advice and project support to the human resource community. It provides research analysis, and advice on human rights, ethics, and standards of conduct.

Year in Review

The Commission initiated an overall review of policies and legislation to prepare for the move to consolidate human resources and to meet targets for the deregulation initiative. As a result of this review, several redundant policies and regulations were identified and eliminated, while others were streamlined and updated. The Policy Branch worked closely with the Staffing Branch and ministry representatives in the review and revision of the recruitment and selection policy. Corresponding changes to the Public Service Act were also initiated. This paves the way for major changes to the recruitment and selection process across government. In addition, the Policy Branch assisted the BC Pension Corporation in changes to regulations under the Public Service Benefits Plan Act.

The Commission plays a key role in the development of workforce adjustment strategies and procedures, including those related to voluntary exit programs. Two voluntary exit programs were offered: Early Retirement Incentive Program (ERIP) and Voluntary Departure Program (VDP). Voluntary exit programs help meet overall workforce adjustment targets.

An employee recognition review was conducted as part of the Renewal initiative. The review confirmed the usefulness of current recognition programs:

• Employee Recognition Program — provides taxable awards of up to $2 000 per employee for improvements resulting from adopted employee ideas or successful, team-based improvement projects;
• Staff Appreciation Awards Program — enables fast nominal recognition for excellent performance; and
• Long Service Awards — recognizes employees who have 25, 35, or 40 years of public service.

The review recommended a new Premier's Public Sector Awards program. In addition it recommended an emphasis on informal recognition — feedback from managers and supervisors to their staff.

A province-wide consultation process was undertaken with 100 line managers and staff to develop core public service and core leadership competencies. These competency models provide managers and staff with a common set of definitions and descriptions about the behaviours that result in high performance. They can be used in recruitment, staffing, performance management, succession planning and training and development to ensure high service quality. These were accepted by the Deputy Ministers' Council on Shared Services. The competencies are:

Core Public Service Competencies:

• Service Orientation;
• Results Focus;
• Teamwork and Cooperation.

Core Leadership Competencies:

• Strategic Orientation;
• Leading Others;
• Innovation and Change;
• Developing Others;
• Empowering Others.

To support the application of competencies in the public service, a number of resources were provided to managers and supervisors. These resources included:

• A dictionary of 43 competencies.
• A Development Resource Guide outlining development activities in relation to each of the competencies.
• A Behavioural Interview Guide providing an interview methodology and criteria for each competency.

In preparation for the transition to the new BC Public Service Agency, functional competencies were also developed for the human resources community in a separate process. These competencies were used in the process of staffing the new Public Service Agency.

Organizational Development

Organizational Development embraces several functions throughout the Commission. Following is a summary that describes the major organizational development functions and achievements over the past year.

Staffing

Overview

The past year has been an extremely active one in the staffing area from a planning perspective. In order to address issues identified in the staffing process, a shift in authority and accountability was planned through proposed changes in legislation, policy, practice and philosophy. While the authority to hire under the Public Service Act rests with the Commissioner, ministries have typically carried out this function with the support of human resource professionals who have delegated staffing authority. Under existing legislation and regulation, an appeal mechanism is used to address unsuccessful candidates' concerns that the merit principle has not been applied appropriately. This has led to a very bureaucratic and rigid process for staffing in the public service to avoid prolonged delays and the high cost of repeating staffing processes if decisions are overturned. Change was necessary.

Year in Review

Under the Core Service Review, the strategic shift endorsed by government for the Commission was to rebuild and sustain a professional public service capable of providing quality services that meet the needs of British Columbians. This led to the review of staffing in the public service with the primary goal of developing a flexible and responsive hiring process based on merit. This review involved analyzing the definition and application of merit, establishing a simplified staffing process, reviewing the appeals process and recommending legislative and policy changes. Many changes have been proposed to legislation, policy and practice including replacing the appeal mechanism with a faster and more practical review process.

A significant shift for staffing in the public service was introduced with the creation of the new BC Public Service Agency on April 1, 2003. It involves a shift in authority and accountability for staffing from the human resource community to line management. The shift is consistent with the government's commitment to support line managers in their role to manage efficiently and effectively. Support for line managers in this transition will occur through streamlined delivery of human resource services, a reduction in policy and regulations and a refocusing on principles, providing managers with practical guidelines rather than dictating processes. All of this is being done with an expectation that we will not only maintain but also, strengthen the merit principle. This has been accomplished in part by the establishment of the Merit Commissioner in the previous fiscal year.

Staffing Actions

There were 1 385 competitions posted, covering 1 633 regular positions, of which 964 were in-service and 669 out-of-service. An additional 191 temporary competitions were posted covering 213 appointments.

Of the 32 appeals of hiring decisions, six went before a hearing; one was granted while five were denied. The remainder were settled without a hearing or through a pre-hearing decision.

From April 2002 to March 31, 2003, 367 youth were hired under the Co-op and Youth Employment and IT Work Practicum Programs.

Employee Learning Services

Overview

The Corporate Human Resource Plan identified employee learning and development as a critical element in revitalizing the public service. Employee Learning Services provided government-wide employee learning programs (corporate learning) to address government strategic directions and ministry business needs. In addition, training specific to each ministry's priorities and mandate was provided. The range of programs offered included: assessment of government-wide learning needs, provision of competency-based learning programs and evaluation of their success.

Employee Learning Services' responsibilities include:

• Implementing the Corporate Learning Strategy;
• Managing the Public Service and Information Technology Learning Funds;
• Managing the planning, procurement and delivery of competency-based corporate learning programs, products and services;
• Planning, consulting and evaluating activities to enable and ensure quality service.

Year in Review

The Employee Learning Services Branch budget for 2002/03 consisted of $8 million in the Public Service Learning Fund, and $2.2 million in the Information Technology Learning fund, for a total of $10.2 million. This funding supported delivery of corporate learning programs in finance, human resources, information technology, leadership and management development, career development, and workforce adjustment. New learning projects included:

• Pilot delivery of the "Leading the Way" leadership training program;
• Development of a new enterprise-wide risk management program for government;
• Introduction of the competency dictionary into planning and development of new training;
• Continued support of the Public Service Renewal project;
• Increased province-wide training to support individuals in their uptake of workforce adjustment options;
• Development and delivery of a two day orientation for all BC Public Service Agency staff;
• Development and implementation of the on-line Course Information and Registration system.

The Corporate Learning Strategy was developed in consultation with ministries, and published in November 2002. The strategy identified three key objectives:

• The creation of a culture in the public service that encourages learning and the acquisition, transfer and use of knowledge.
• Training and development programs that meet the needs of: government strategic priorities, ministry business objectives, and employee job requirements.
• Efficient delivery of training and development programs to employees of all ministries and across all regions.

Program Delivery

Leadership Centre

Overview

The creation of the Leadership Centre is one aspect of a larger plan, which includes the changing role and business of government, a newly formulated vision and values for the public service and recognition that renewal is needed to meet the challenges of the future. The newly created Leadership Centre directly provides or coordinates a wide range of human resource policies, programs and services to approximately 1 100 executives and senior managers.

The Leadership Centre (launched April 1, 2003) is an arm of the new BC Public Service Agency that is led by a Deputy Minister who has a close working relationship with the Deputy Minister of the BC Public Service Agency. The Centre's Deputy Minister holds membership on the Deputy Ministers' Council and is supported by a small strategic and coordinating team of professionals who provide or contract for all aspects of human resource management.

The objectives of the BC Leadership Centre are to:

• Set a standard of excellence and be a model to attract, retain and develop competent and professional public service leaders;
• Build a corporate resource of executives and senior leaders that have the knowledge, support and services they need to implement the business and renewal agendas of government;
• Provide executive and senior managers with the resources they need to foster their professional growth, develop leading-edge skills and gain well-rounded experience in a variety of portfolios;
• Keep our leadership resource vibrant through recruitment, retention, development and succession planning;
• Continually ensure employees with high potential may become our leaders tomorrow.

Year in Review

In preparation for the start-up of the Leadership Centre, the following activities were undertaken:

• 40 executive and senior management personnel were hired during fiscal years 2001/02 and 2002/03;
• Executive competencies were developed for ADMs and DMs;
• Employee performance and development plans were developed and completed by all Deputy Ministers (pay for performance bonus criteria);
• Approval was received from Deputy Ministers' Council and Deputy Ministers' Council on Shared Services to develop the corporate talent pool to meet succession planning needs;
• An Executive Orientation program was developed and delivered to those DMs and ADMs new to the role or new to government;
• An Executive Dialogues program was developed and delivered to executives to promote awareness and understanding of corporate and global issues.

Compensation

Overview

The Commission develops and maintains job evaluation and compensation plans for use across government. It has responsibility for ensuring job evaluation plans are implemented equitably in all ministries and agencies that are governed by the Public Service Act.

Job evaluation is a formal process by which management determines the relative value of different jobs within an organization. This relative value determines the appropriate salary.

The Commission is responsible for: consultation with bargaining unit representatives in the construction of job evaluation plans, design and implementation of management plans and administration of related compensation policy.

The authority to evaluate jobs is vested in the Commission and is delegated to designated ministry staff. To accomplish equitable application of job evaluation plans, the Commission trains ministry personnel, monitors the application of the various plans and conducts random audits. Inter-ministry teams of subject-matter experts conduct some job evaluations.

Year in Review

Over the year, the Commission resolved 32 classification appeals through dispute resolution processes. The Commission completed approval for 1 210 classification review requests for non-delegated positions. Of these decisions, 69% were completed within 20 days, which is the same rate as the previous year.

The highlight for the year was a business process review of the classification and compensation functions. This review was conducted in order to streamline and increase the efficiency of work processes. Recommended changes will be introduced during the 2003/04 fiscal year.

Labour Relations

Overview

The Commission provides comprehensive negotiation and labour relations services and ensures that government objectives are met in negotiation with public service unions and professional associations. Staff provide direction, advice and support to ministries and agencies on the interpretation and application of collective agreements and employment related legislation.

The Commission represents the government on matters arising out of collective agreements and employment-related legislation at arbitration and before the Labour Relations Board and other administrative tribunals.

Year in Review

The past fiscal year was the second year of a three-year term for most master and component agreements; as such bargaining activity was minimal. Agreement renewal negotiations between the Crown Counsel Association, representing crown prosecutors employed by the Province, commenced and remain outstanding. Negotiations were also ongoing with a number of non-unionized groups including Dentists and Denturists providing services to the Ministry of Human Resources Dental Program.

2002/03 was also the second year of the Government's workforce reduction program and significant resources were directed toward associated program support including:

• Devising and operating voluntary separation programs.
• Developing workforce adjustment handbooks and providing technical papers/advice respecting collective agreement layoff and recall provisions.
• Conducting joint union/management committee meetings associated with workforce adjustment.
• Processing associated disputes to arbitration.
• Coordinating the placement process associated with the operation of the layoff and recall provisions of the collective agreements.

Labour Relations support was provided in program devolution associated with several ministries. A number of transfer agreements have facilitated the transfer of health programs to the health sector. The Commercial Transport Inspection groups of ICBC and the Open Learning School of the Open Learning Agency were incorporated into government through transfer agreements negotiated by the branch. The branch negotiated a similar transfer agreement to facilitate the transfer of staff from the Workers Compensation Board to maintain business continuity during the establishment of the Workers Compensation Appeal Tribunal.

Grievance volume continued with approximately 1 128 grievances filed at arbitration from four bargaining units (BCGEU, Nurses, PEA, and Queen's Printer Council of Graphic Arts Unions). Previous years' grievances not yet concluded numbered approximately 2 300, were also scheduled for expedited arbitration, utilizing 38 hearing-days in five locations. Forty-three expedited arbitration awards were issued. The remaining were settled, withdrawn or adjourned by the parties before the hearings. The Branch had conduct of disputes which led to 36 formal arbitration awards and 21 LRB Decisions; 2 BC Court of Appeal decisions; and 1 Supreme Court decision.

Significant decisions included a recent award upholding the employer's position on the payment of STIIP benefits to auxiliary employees.

The Commission continued to provide labour relations specialists to deliver training on Effective Discipline, Fundamentals of Supervision, and Contract Management to supervisors and managers in ministries.

Employee Benefits

Overview

The Commission is responsible for the development, implementation and management of public service employee benefit plans and programs. These cover all eligible employees who are at work or on disability benefits. Some benefits also apply to retired employees. The Commission manages and administers the benefit plans, develops policy, and negotiates service delivery contracts with benefit carriers. The Commission also provides consultative and administrative services to the public service and participating public sector agencies.

Funding for benefits is recovered as a percentage of payroll from ministries. Crown corporations, agencies, boards and commissions that participate in these plans pay the costs of the benefits provided to their employees either by premium or payment of actual costs. The Commission collects premiums from employees on lay off or leave without pay to continue coverage for certain benefits.

Great West Life is the private insurance carrier for Group Life and Long Term Disability, while Pacific Blue Cross is the carrier for Extended Health and Dental plans. Basic medical coverage is through the Medical Services Plan of British Columbia.

Employee and family benefits include: Group Life Insurance, optional Spouse and Dependent Group Life Coverage, Air Travel Insurance, Extended Health and Dental Benefits, Deferred Salary Leave Program, Medical Services Plan of British Columbia, Employee Benefit Trust, and Judicial Benefit Trust.

Illness and injury benefits include: Weekly Indemnity provides income to auxiliary employees while sick; Short Term Illness and Injury Plan, continues part of employees' earnings if they are unable to work due to illness or injury for up to seven months; and the Long Term Disability Plan provides employees with income if they are disabled due to illness or injury for longer than seven months.

The Commission's Managing Health Related Absences Program facilitates the return to work of ill or injured employees and helps control claim costs. This program focuses on early intervention, disability case management, work and work-site accommodations, and retraining and alternate placement.

Employees who are injured as a result of work-related accidents receive Workers' Compensation benefits. The Commission represents ministries before all levels of the WCB appeal system, undertakes claims management and related administrative services, and assists ministries in developing accident prevention programs, managing WCB claims, and ensuring compliance with WCB regulations.

The BC Employee and Family Assistance Program (BCEFAP) provides confidential, professional short-term counseling and referral services to eligible employees and their families to resolve problems that affect their personal lives and, in some cases, their job performance. Additional counseling services were provided to employees impacted by workforce adjustment in 2002/03. BCEFAP also provides a coaching service to ministry supervisors to assist them in dealing with employees with personal problems. A series of newsletters posted on the Commission's website, and training workshops on select topics are part of the program offerings.

A standard protocol enables ministries to obtain Critical Incident Response Services, when required. Brown Crawshaw Inc., an external provider, is contracted to deliver these services.

Government Employee Health Services (GEHS) provides clinical rehabilitation and occupational medicine assessment services to employees and their ministries to support the corporate disability management program and the joint union/employer rehabilitation committee. This assists ministries in responding to employee health matters. The GEHS early medical intervention program targets high-risk disability cases early in the absence of, or prior to an injury becoming disabling. Through close evaluation of disabling factors and review and management of treatment issues, occupational health nurses identify opportunities for safe and timely return to work and resolve workplace safety issues, thus reducing or preventing absences.

GEHS occupational health knowledge and skills contribute to corporate program and policy development, building healthy workplaces and protecting workplace safety. GEHS manages and delivers pre-placement medical screening programs for safety sensitive occupations within government service.

As a requirement of the Public Service Benefits Plan Act, the Commission also produces a separate annual report to the Legislative Assembly concerning designated benefit programs.

Year in Review

The Commission continued development of occupational health and safety programs. The Workplace Guidelines for the Prevention of Musculoskeletal Injuries, developed in partnership with the BCGEU, was distributed to safety committees and supervisors in all public service workplaces. The Emergency Preparedness and Response guide was completed and posted on the commission's website for use by all ministries. Occupational Health and Safety training continued to be delivered in areas such as ergonomics assessment and violence prevention.

The WCB claims management initiative, implemented in September 2000, continues to generate savings through effective appeals representation, pro-active management of longer-term WCB claims, and pursuit of cost recovery opportunities. The program achieved an appeals success rate of approximately 80% during 2002/03. WCB claims management activity continued to build on the success of 2001/02, where a 33% decrease in active claims over two months duration occurred. For 2002/03, an additional 30% decrease was achieved. Direct and indirect savings during 2002/03 totaled more than $2.5 million. In addition, the WCB claims and case management training was delivered to several ministries.

The BC Employee and Family Assistance Program provided counseling services to 2 707 employees and 1 729 family members in 2002/03. A follow-up survey of clients found that 78% felt that their overall life situation improved as a result of the BCEFAP services. Across the province, about 260 employees received training in Facilitating Workplace Respect and Cooperation and 80 ministry supervisors received Early Intervention Dividend training. The workshops were well-received and provided employees and supervisors with information supporting the development of positive workplace relationships.

The Commission, through GEHS, supported the Ministry of Human Resources' behavioural disability management program and provided ergonomic workplace job coaching, in specialized cases, to reduce sick leave. A preventative flu vaccination program was offered and delivered to employees under contract by an external provider.

A contract was signed with Great West Life Assurance Company for long-term disability administration. The contract is for 5 years with an option to renew for another 5 years, and includes performance standards with financial penalties.

The Commission developed an integrated, disability information management system to streamline disability benefit administration and personnel management functions to support the rehabilitation and early return to work of ill employees.

220 people on long-term disability took advantage of the early retirement incentive program for a savings of $18 million in future liabilities.

Corporate and Systems Services

Overview

The Corporate Services branch staff provides budget, financial, administrative, and infrastructure support to the agency. This includes: budget preparation, reporting, and analysis; accounts payable/receivable; internal financial policy; facilities; telecommunications; security; purchasing, contract administration; and records management.

It also provides a wider range of services in the area of Employee Benefit and Workforce Adjustment. Acting as the employer it provides budget, financial, and administrative support for the Public Service Pension and Employee Health Benefit plans, and is responsible for all aspects of budget and financial administration of Workforce Adjustment. These services are provided beyond the agency/employer and extend to a broader audience of clients such as: Plan Carriers, External Employers (who participate in public service benefits plans), financial institutions, ministries, individual government employees, Pension Corporation.

Year in Review

Over the past year Corporate Services has worked through significant transitional initiatives related to:

• Establishment of the new British Columbia Public Service Agency; i.e. the consolidation, regionalization and relocation of the HR community;
• Consolidation and reorganization of previous budgets, records, and services;
• Workforce adjustment; and
• Major cross-government benefit issues.

Deregulation

PSERC's New Era commitment was to reduce its regulatory burden by one third by June 2004. By March 31, 2003, the end of phase one, PSERC had achieved a regulatory reduction of 12% and was well situated to achieve the 2003/04 target.