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Monday, May 5, 2014

Civil servants to lose job security in austerity bid

Politics and policy 
Retired civil servants: The government has tried to remove the pension burden. Photo/FILE
Retired civil servants: The government has tried to remove the pension burden. Photo/FILE 
By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com
In Summary
  • Minister reveals plans to put top government workers on contracts to raise productivity.
  • The proposal means that future promotions of persons serving as directors (Job Group T) and secretaries (Job Group S) would come with contract conditions that are tied to performance.
  • The policy shift aims to cut down on the wage bill that currently stands at more than Sh500 billion

 

Hundreds of senior civil servants may soon find themselves without job security that comes with government employment as the State moves to trim its wage bill and increase the productivity of its workers.

Planning secretary Anne Waiguru has announced plans to place all State employees in Job Group U and above on contracts, signalling a possible end to their employment on permanent and pensionable terms.

“We want to put top cadre officers on contract once they get to a certain job group and tie their continued stay in the public service to how well they perform,” Ms Waiguru told the Business Daily on telephone.

“In fact, there will be a major policy announcement this Friday in line with this. Unless we are advised that introducing contracts will be expensive to the government or even illegal, this is the direction we want to go,” she said, adding that anyone who gets employed on contractual terms would be deemed to have left the Civil Service and immediately receive their pensions.

The proposal means that future promotions of persons serving as directors (Job Group T) and secretaries (Job Group S) would come with contract conditions that are tied to performance.
This group of senior civil servants would join Cabinet secretaries, principal secretaries and those serving as members of independent commissions in contractual employment for specified periods of time.

Ms Waiguru said the policy shift aims to cut down on the wage bill that currently stands at more than Sh500 billion and has become a big risk to the country’s development.
“There is a lot of discontent among employees that their seniors earn way more than them and introducing contracts is one of the structural reforms that will address this disparity and bring down the wage bill,” Ms Waiguru said.

Adoption of the proposal would free the government to extend or terminate the employment of senior civil servants and pay them a gratuity for the period served.
The exit of such highly paid senior civil servants would then create room for the hiring of cheaper and more productive people to fill the vacant positions – enabling the state to meet the twin objectives of retaining a better priced and more productive labour.

Improving productivity is particularly important to the government, which is facing criticism over the sluggish growth of efficiency in service delivery in the past decade.

Official statistics show that productivity in the Civil Service improved by a paltry 30 per cent margin in the past 11 years but the wages rose 28 per cent in the past five years alone, making the public jobs more lucrative than private sector employment.
It is estimated that contractual employment could help the government make extra savings in pension payments.

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