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One Problem, Two Solutions (CCSS and ICE)

The Social Security Fund (CCSS) and the Instituto Costarricense de Electricidad (ICE) seem determined to take the bull by the horns and solve the problem posed by the excessive increases in their taxes. The ICE is preparing a plan of voluntary labor mobility and the Fund will run a organizational restructuring to eliminate duplication and excess staff in their offices.

Paths financial crisis took to motivate change. While endured resources, duplication of functions and sprawl were no problem. There are, however, one noticeable difference in the solutions proposed by one and the other body.

ICE aims to reduce its payroll to produce savings. The Fund will be content to redeploy staff to more efficiently use it. Its chief executive, Ileana Balmaceda, rule out the possibility of layoffs. Nor does it propose a plan of voluntary labor mobility, such as ICE.

In the Fund, the wage bill increased by 88% between 2005 and 2010. In the same period, the payroll grew by 10,956 new jobs. The organizational restructuring announced by the entity is a confession of the redundancy of many of these hires. If possible assign new functions without diminishing the services provided to date, the contract must not have contributed significantly to organizational performance. If they are moved to other positions, the institution would do well to explain why it took so long to realize staffing needs in these areas.

It is an unsatisfactory situation: the Case unnecessary personnel hired and admits having “settled” in positions where only serves to duplicate functions. Now, as part of its financial crisis, you realize you really need to officials elsewhere. The bureaucracy will remain intact and be seen if no improvement in services. It is not medical personnel, administrative staff but whose function so far is cramming headquarters.

The report on the intervention performed in the Pension Management between January and August last year, criticized the creation of 217 irregular squares, alone in that department as well as increased 70% in the cost of payroll devoted to management the Disability, Old Age and Death. The increase occurred in the short span of two years, between 2008 and 2010. Where the Fund relocated to these officials, contracted at the time needlessly?

Moreover, the entity that supports the adoption of an online shopping system will reduce the need for staff acting as procurement, but that does not translate into a reduction of the return. The CEO was quick to clarify: “We will play relocate staff, either in other jobs or other areas of care.”

All but reduce the return! Seems to be the watchword in the Box, where unions are jealous guardians of their “conquests” including the explosive growth of costly bureaucracy.

In the ICE behavior is no different, but the Administration seems determined to take steps to reduce costs by eliminating excess. The voluntary mobility plan is part of a package of measures to restrain spending in ¢ 80,000 million this year.

Between 2007 and 2010, the return of ICE grew by 3,800 places. The institution also plans to relocate some of those officials, but offer advantages to those wishing to leave office. The design of labor mobility plan is not ready and to wait the final version to judge its adequacy, but in principle is a correct approach to the problem, unlike the limited scope of the proposed reorganization by the Fund.

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