Audit Division Restructuring and Staff Redeployment

 The Strategic Policies and Priorities Committee submits, for the information of Council, the following transmittal letter (July 8, 1998) from the Audit Committee and reports having received same:

 Recommendation:

 That the report (June 25, 1998) from the City Auditor regarding the Audit Division Restructuring and Staff Redeployment be received by the Strategic Policies and Priorities Committee and Council for information.

 The Audit Committee advises having requested the City Auditor to report back to the Audit Committee on the possible redeployment of the remaining streamlined staff of the Audit Division.

 Background:

 On July 7, 1998, the Audit Committee had before it a report (June 25, 1998) from the City Auditor, regarding the Audit Division Restructuring and Staff Redeployment.

 In this connection, the Audit Committee also had before it communications from the following:

 (1)Acting President, Canadian Union of Public Employees (CUPE Local 79) (July 6, 1998); and

 (2)President, City of Toronto Administrative, Professional Supervisory Association, Incorporated (COTAPSAI) (June 1, 1998).

 The Audit Committee received the report (June 25, 1998) from the City Auditor and directed that it be forwarded to the Strategic Policies and Priorities Committee and Council for information.

 Mr. Denis Casey, Acting President, CUPE Local 79, and Mr. David Neil, President of COTAPSAI, both addressed the Committee

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 (Report dated June 25, 1998, addressed to the

Audit Committee from the

City Auditor)

 Recommendation:

 It is recommended that this report be received for information.

 Background:

 The Audit Committee at its meeting of March 24, 1998, had before it a joint report dated February 6, 1998, from the Chief Administrative Officer, the City Auditor and Chief Financial Officer and Treasurer on the provision of audit services to the new City of Toronto. The Committee approved the report and in doing so, requested that the restructuring of the Audit Department as proposed in the report be referred back to the City Auditor with the request that:

 (a)"a dialogue be commenced with representatives of CUPE Local 79 as soon as possible;

 (b)every effort be made to introduce a redeployment program for staff to be streamlined; and

 (c)when he reports back to the Audit Committee a proposed organization chart for the new Audit Department be included."

 In addition, at its meeting on May 13 and 14, 1998, City Council approved the joint report from the Chief Administrative Officer, City Auditor and Chief Financial Officer and Treasurer, recommending the contracting out of the attest audit. At the same meeting, City Council further recommended that the City Auditor be requested to:

 (1)"submit a report to the Audit Committee on alternate work possibilities for affected bargaining unit staff; and

 (2)submit a report to the next meeting of Council to be held on June 3 and 4, 1998, through the Audit Committee on the efforts made to accommodate the 30 employees affected within the Corporation."

 The timing of the Audit Committee meeting, as well as the timing of various meetings with Local 79 and Audit staff, did not permit the reporting on this issue to the June 3 and June 4 Council meeting.

Comments:

 The contracting out of the attest audit and the consequent restructuring of the Department will result in a significant reduction in staff. The current staff establishment of the amalgamated Audit Department is 50. The number of staff will be reduced to 20 once the restructuring is complete.

 In order to support staff related to the restructuring which is taking place and the downsizing required within the Audit Services Division, the following initiatives have been undertaken.

 Meetings with CUPE Local 79 and Staff:

 The City Auditor met with representatives of CUPE Local 79 on March 29, 1998, April 14, 1998 and May 21, 1998, to discuss various issues in connection with the downsizing of the Department. In addition, on May 29 and June 1, 1998, three information meetings led by the City Auditor and supported by Human Resources Division representatives responsible for Staffing, Labour Relations, Career Development Services and other employee counselling were held for Audit Services staff. Issues discussed included the approved organization structure, the staffing process including the time-table for filling vacancies in the new Division, opportunities for staff related to the Voluntary Exit Program, the potential for redeployment opportunities, the commitment of the Corporation to honour collective agreements and other contractual obligations, and the availability of Career Development Services to employees. Also attending these meetings was a representative from CUPE Local 79 and COTAPSAI (the Management Association of the former City of Toronto).

 Staffing Process:

 The Process employed to fill vacancies within the Division was a "top-down" approach, commencing with the most senior positions. At the most senior levels, the City Auditor was supported on the interview panel by a senior audit professional from outside the Corporation, a senior manager from another division and a senior Human Resources consultant. All other interview panels included a management representative from outside the Division and a senior Human Resources consultant.

 To ensure the greatest opportunity for existing staff, the competitions for all professional positions were "restricted to current employees of the Audit Division including employees of the Internal Control Division of the former Municipality of Metro Toronto". In addition, in regards to the "Auditor" position, the qualifications were broadened to qualify additional staff, allowing for "experience and formal training combined with demonstrated performance and ability" as a substitute for the stipulated academic requirements. The competition for positions was consequently open to all existing Audit staff.

 The Redeployment Process:

 The redeployment process in regards to staff is ongoing. Of the 30 staff impacted by downsizing, accommodation has been provided for 20 to date.

 Details of Staff Redeployment to date is as follows:

 Total Establishment of Amalgamating Municipalities50

Proposed Establishment of Restructured Department 20

 Downsizing Required 30

 Placement of Downsized Staff:

 Tourism Toronto (Bargaining unit employee)1

Budget Division Secondment (excluded)1

Mandatory Retirements (excluded)2

Placements outside Corporation (Bargaining unit employees)3

Social Services Division (excluded)1

*Vacancies in former Metro (Bargaining unit employees)2

*Vacancies in former Metro (excluded)3

Management staff who did not apply for positions5

Bargaining unit staff who did not apply for positions1

Voluntary exit (Bargaining unit employee) 1

  20

 Staff Requiring Redeployment 10

 *Positions unfilled during the latter part of 1997 in anticipation of excess staff becoming available to conduct 1997 attest audits.

 Internal Job Vacancies:

 As appropriate, job vacancies in other parts of the City organization are being brought to the attention of Audit Division staff prior to posting. At the same time, during the information meetings, employees were encouraged to monitor bulletin boards, etc. related to other job vacancies which are required to be posted on a City-wide basis. Nevertheless, it should be noted, and staff have been informed that the number of opportunities in other Departments/Divisions will be limited due to restructuring, service rationalization and the requirement to also downsize to meet the 1998 approved budget.

 External Vacancies:

 The City Auditor and Human Resources Division representatives are pursuing career opportunities for staff with other public and private sector organizations. In addition, certain Audit Division employees of the former Metro have been successful in securing alternate external employment due to their personal efforts.

 Voluntary Exit Program:

 The voluntary exit program has been made available to all Audit Services Division staff. In this way, it is hoped that the negative impact related to employee terminations will be minimized. Personal counselling/advice/guidance and individual monetary entitlement calculations are being provided to interested staff.

 Normal/Early Retirements:

 Individual counselling has been made available to two members of Audit Division staff who are approaching normal retirement age 65. In addition, seven additional individuals are eligible for an early retirement pension.

 Career Development Services:

 Specific representatives of the Career Development Services Section of Human Resources have been identified to support the staff of Audit Services. Group and individual appointments have been arranged/are available based on the needs of the employees. Assistance is provided related to:

Educational Planning, Re-skilling and Re-training:

 (a)developing skills for employees in future positions;

(b)designing individualized educational plans;

(c)advice on where to take courses; and

(d)information of skills needed in the future (internal, and by external organizations).

 Career & Personal Life Decisions:

 (a)assessment of career interests, skills, aptitudes, etc.;

(b)matching individual needs, values and personal style to the workplace;

(c)life stage decision-making and goal setting; and

(d)retirement and/or exiting the City.

 Job Search:

 (a)accessing information on jobs;

(b)writing a resume;

(c)interview preparation (including practice "mock" interviews); and

(d)networking and self-marketing.

In addition, Career Development Centres are available at the former Toronto City Hall and Metro Hall, and are being established in the North York, Scarborough and Etobicoke civic centres. Facilities/materials include:

 (a)computer workstations: access to Internet/Intranet, self-assessment tools, skills training, etc.;

(b)community college and university course calendars;

(c)job postings; and

(d)career related books and materials.

 Restructuring of the Audit Services Division:

 The restructuring of the Audit Services Division has been ongoing and has been conducted concurrently with the finalization of 1997 audits. The organizational plan was validated by an external consultant, and approved in May 1998 by the Commissioner of Corporate Services and Chief Administrative Officer. In accordance with the request of the Audit Committee, an organization chart is included in this report as Appendix A. The current staff complement is 20 structured as outlined in the organization chart.

 Conclusion:

 The number of staff who will be impacted by restructuring in the Audit Services Division, as well as throughout the organization, is substantial. In this regard, the City Auditor and other senior management as well as Human Resources representatives, through extensive programs and services, are endeavoring to support/accommodate/respond to the needs of employees. These efforts are ongoing.

 Contact Name and Telephone Number:

 Jeff Griffiths, 392-8461.

Appendix A - Audit Services Division

(Communication dated July 6, 1998, addressed to the

Audit Committee from

Mr. Denis Casey, Acting President, CUPE Local 79)

 This report was written in response to requests by the Audit Committee concerning the organization of the new department and to recommendations by City Council regarding the efforts made to accommodate affected employees.

 This report responds to neither matter.

 The organizational plan for the department is still unknown. This report contains only a chart which does not indicate the rationale for the new department, new job responsibilities, or the range of work. What we do know is that the span of control is well below the target recommended for the Corporation. Out of twenty employees in the department, twelve will be managers, and administratively, there will be one Secretary for nineteen people.

 The secrecy surrounding the reorganization of the Audit Department is unfortunate. CUPE Local 79 has applied under the Municipal Freedom of Information Act for the organizational plan. We are very disturbed about the lack of an open and democratic process. It is difficult to assess the implications when there is so little access to documents. We are all diminished by reductions in public participation.

 The information in this report on the impact on affected staff is not up to date or completely correct. While six unionized staff may have been placed in other positions or have left, it is still unknown how many of the remaining ten have been promoted, how many will retire, take the exit package or remain to be placed. Other information is inaccurate. Contrary to the report, it is our understanding that job vacancies are not being brought to the attention of Audit Department staff prior to posting.

 The Auditor position was identified as one suitable for union applicants and many did apply with the hope of continuing their service to the Corporation. These expectations were shattered when it became clear that unsuccessful candidates for management positions were being interviewed for the Auditor position, even though they had applied after the closing date! Employees deserve an explanation for this inequitable treatment.

 The report is premature: there are too many unexplained issues. We encourage members of the Audit Committee to recommend that:

 (1)The Audit Department reorganization report be distributed and reviewed publicly by this Committee; and

 (2)The terms and conditions of the Collective Agreement be followed, including the responsibility to place displaced employees in another position.

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 (Communication dated June 1, 1998, addressed to

the Audit Committee from

Mr. David Neil, President, COTAPSAI)

 I am writing to you to express our deep concerns over the restructuring process currently underway in Audit Services. At the City's request, our association attended a briefing on Monday, June 1, 1998, with all non-union employees impacted by the reorganization in Audit Services.

 Audit staff from all across the City were told that the process for selecting the directors and managers and the remaining staff would be undertaken simultaneously and would be completed within two weeks. The time to submit an application for all remaining positions was five days. Staff were told by Human Resources staff that if they were not offered a position and they choose not to take a voluntary exit, the City would move to terminate them. Although staff had many questions regarding the City's previous obligations and efforts to find them alternative permanent positions elsewhere in the organization, all were extremely concerned and upset by the City's position.

 At the meeting, the City Auditor was asked about the status of Clause 3 of Report No. 8 of the Strategic Policies and Priorities Committee to be considered at the June 3 and 4 City Council Meeting. As you know, that clause was amended by adding the following:

 It is further recommended that the City Auditor be requested to:

 (1)submit a report to the Audit Committee on alternate work possibilities for affected Bargaining Unit staff, and

 (2)submit a report to the next Council to be held on June 3 and 4, 1998 through the Audit Committee, on the efforts made to accommodate the 30 employees affected within the Corporation.

 With reference to item (2) above, the City Auditor explained that it was not possible to prepare that report and forward it to the Committee before the next Council meeting. He indicated that those employees displaced by the reorganization would be gone by the time this report on the efforts made to accommodate them was forwarded to the Audit Committee. I am very concerned that the City would consider taking such drastic action before making every 'reasonable effort' to accommodate displaced employees as Human Resources has stated it would do and in accordance with an existing agreement.

 Why the urgency? The City Auditor explained that because of existing vacancies (8), retirements and attrition, only 12 actual employees would be displaced through this reorganization. He also suggested that Audit Services was not required to make its cuts until June 30, 1998.

 Given the information provided by the City Auditor at the meeting, it seems reasonable that since gapping and attrition account for 18 of the 30 positions, that any decision to terminate individual employees can and should be deferred until the City Auditor submits his report to the Committee and until such time that the Audit Committee is satisfied that the City has made every effort to accommodate employees impacted by this reorganization.

 I believe this approach to be prudent, financially feasible and affords to staff displaced through this process that all reasonable efforts to find alternative employment opportunities will be taken. A win-win scenario.

 On behalf of all our members in Audit Services and throughout the City of Toronto, I welcome the opportunity to bring our concerns and suggestions forward to the Audit Committee for its consideration.