Presentation to the Portfolio Committee for Home Affairs

21 February 2012

GOVERNMENT PRINTING WORKS

FUNDED AND UNFUNDED POSTS

Legislative mandates

The Ministers of Finance, Home Affairs and Public Service and Administration approved the business case and GPW was established as a Government Component on 9 October 2009 (Government Gazette 32616) in terms of the Public Services Act of 1999 as amended

Since then, the GPW commenced with operating on regular business principles, having to defray all its expenditure from the revenue generated by services rendered

As a Government Component the GPW delivers security printing services to government.

Overview and Mandate of the Government Printing Works (GPW)

Operating Model

A Government Component is a Government Business that operates on principles of financial management (profitable and viable) whilst cultivating a commercial oriented culture

The focus of GPW is on its core business – security printing

GPW being mandated to produce South African passports and identification documents is an important strategic partner of the Department of Home Affairs.

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Operating Model continued

GPW is 100% Government owned; and the South African Government is its only shareholder

GPW reports to the Minister of Home Affairs; and provides services to the Department of Home Affairs and other Government Departments

GPW is funded entirely from the revenue it derives from its services to Government Departments and the general public

Any ‘profits’ generated are ploughed straight back into the capital replacement programme and the modernisation of GPW

STRATEGIC OUTLOOK OF THE GPW Vision

• To be the State’s Mandated Security Printer

Mission

• To provide cost effective, reliable and timeous services to all spheres of Government in security printing

• To provide the public with equitable information

• To disseminate Government information through technology, innovation and service excellence

Values

• Reliability

• Integrity

• Accuracy

• Stakeholder satisfactionThese belief systems motivate our people to provide excellent service to all our

stakeholders.

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GPW ESTABLISHMENT

As part of the transformation to a Government Component; the Minister approved a new ‘GPW Establishment’

The GPW is the process of migration of all its employees to this new structure

New functions have been created, which did not exist previously such as research and development, strategic management, public relations, legal services, facility management, etc.

The Strategic Plan of GPW 2012-2014 demonstrates that sufficient funds will be available to fill all 698 posts

The new GPW establishment is 698 posts whilst there are currently 530 staff in the employment of GPW

GPW ESTABLISHMENT continued

These posts are funded entirely from the revenue GPW generates through its printing services

The Strategic Plan 2012 – 2014 has been presented to the DG of Home Affairs; and will soon be presented to the Minister for approval; and subsequently to the Portfolio Committee of Home Affairs

Uncompetitive remuneration structure is lagging on average by between 30% to 50% (Especially on specialist positions) compared with the local printing industry. This mainly applies to the technical grades, where significant shortage of skills exists.

Special dispensation is needed for the GPW to succeed as a Government Component to attract and retain skills in the core business, finance and other critical occupations. An amount of R20 million has been provided in the budget for a special dispensation.

VACANCY RATES IN APPROVED POSTS

Levels Approved posts

Filled Vacancy rate

Levels 13 -16 40 7 82.50

Levels 9 - 11 73 31 57.53

Levels 7 - 8 96 80 16.67

Levels 3 - 6 466 395 15.24

Levels 1 - 2 23 14 39.13

Learners   3  

Total 698 530 24.07

SMS POSITIONS

The non-filling of the post of CEO has delayed the filling of SMS positions.

Have since advertised the vacant 2 General Manager positions.

There is a need to review the number of SMS positions.

As soon as GM manager appointments are made the filling of vacant positions in these areas will be fast tracked.

MIDDLE MANAGEMENT AND SPECIALIST POSITIONS

Attention since 1 April 2011 has been given to these levels to be filled.

Until date 25 positions were advertised and more will be advertised by 31 March 2012. 14 of these positions were filled since 1 April 2012. Posta are mainly in Operations & Production, Financial Services and Internal Audit.

Several of these positions are with Strategic Management, Marketing and Information Communication Technology and will be fast tracked for filling once the GM Strategic Management is appointed.

JUNIOR MANAGEMENT AND HIGHLY SKILLED POSITIONS

Attention since 1 April 2011 was has been given to these levels to be filled.

Until date 28 positions were advertised and a further 10 will be advertised by 31 March 2012. 13 of these positions were filled since 1 April 2012.

Several of the vacancies in this group are specialist artisans and GPW is not very successful to recruit them.

LOWER LEVEL POSITIONS

31 Positions were advertised and 23 appointments made until date.

APPOINTMENTS SINCE 1 APRIL 2012

54 Appointments/promotions were made since 1 April 2012 (permanent and contract) (A number of these positions were filled permanent by employees who were on contract employment (8) and promotions (9))

Offer for employment has been made to a further 13 candidates for employment and it is anticipated that most of them will assume duty on 1 March 2012.

(23 Employees has since 1 April 2011 left GPW)l

SPECIAL DISPENSATIONS

Portfolio Committee on Home Affairs, 24 October 2011 :

10.4 Entities

……….“The Minister of Home Affairs should motivate that the Government Printing Works must be given special dispensation by the Minister of Public Service and Administration to pay commercially competitive salaries for technical staff to prevent high vacancies, overtime and high staff turnover”

Page 3391; BBR Reports

HR, Strategy and Transformation

Fully implement new GPW structureo Finalise outstanding job descriptionso Continue with job evaluation process

Migrate staff to Government Componento Migration plano Consultations with labouro Communication strategy

GPW aligned policieso Revise, develop and customize policies in place.

Talent management and Leadership developmento Training partnerships o Time spend on training

Special dispensations o Determine critical jobso Determine which category of jobs dispensation is in line with broader public service jobs. o Negotiate with DPSA for special dispensation.

Performance management o Job descriptions

o Alignment of work plans10

FUNDING OF POSTS IN THE NEW GPW ESTABLISHMENT

The 698 posts of the ‘new GPW establishment’ will be funded entirely from the revenue that GPW generates through the printing services it provides

There are no ‘unfunded’ posts :

Statement of Financial

Performance (R million)

Audited Outcome 2008/09

Audited Outcome 2009/10

Audited Outcome 2010/11

Medium-Term

Estimate 2011/12

Medium-Term

Estimate 2012/13

Medium-Term

Estimate 2013/14

Medium-Term

Estimate 2014/15

Revenue 487.0 639.0 753.4 733.0 814.7 863.5 915.4

Transfers Received

160.9 334.5 97.4 129.0 135.2 142.5 Nil

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Expenditure estimates are summarised as follows

Statement of Financial

Performance (R million)

Audited Outcome 2008/09

Audited Outcome 2009/10

Audited Outcome 2010/11

Medium-Term

Estimate 2011/12

Medium-Term

Estimate 2012/13

Medium-Term

Estimate 2013/14

Medium-Term

Estimate 2014/15

Employee Benefits 86.8 94.0 99.7 113.5 180.5 199.2 221.8

Administrative Expenditure 25.0 19.7 26.0 28.5 52.1 55.0 57.3

Production and Stores 500.7 497.0 473.8 489.4 367.5 363.4 361.5

Equipment 1.4 1.3 1.7 2.1 1.9 2.0 2.1

Professional Services 26.8 24.0 49.1 55.6 67.8 64.7 55.4

Depreciations and Provisions 57.1 66.7 78.3 76.0 128.1 153.9 174.2

Sundry Expenditure 6.5 5.8 3.6 2.6 4.0 4.2 4.4

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WE THANK YOU KINDLY!

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