PSA members in health conducted an industrial campaign to reduce the adverse effects of positions and services being transferred to Shared Services SA.

The 2006-07 State Budget handed down on 21 September 2006 announced that Shared Services were to be introduced in the Public Service for corporate areas including Human Resources, Finance, Payroll, Procurement and Information Technology with expected savings of $130 million.

Since that time the PSA has been pursuing the interests of members through commissioning research on the Shared Services experience in Australia and overseas – that research is available here – and pursuing issues raised by members over what is being proposed in South Australia. Research clearly showed the concept is flawed and has not delivered expected savings.

The PSA's concerns about Shared Services included the impact on members being required to move from their work sites into the CBD, as well as the reduction in services to all members resulting from payroll, HR, ITC, Accounts Payable and Accounts Receivable and Procurement moving off site to a CBD location and resulting in loss of agency specific knowledge.

The concept of Shared Services as put to the PSA by the Government prior to the certification of the current Enterprise Agreement was that Shared Services for the health sector was to be within the Department of Health only, which would not have affected the continuation of salary sacrifice arrangements as already existed. The disadvantages for these members were greater than for non hospital, city based employees.

CAMPAIGN RESULTS

Country Employees

Initially, due to pressure from the PSA and local communities, the Government agreed that country based employees would not be required to move to the city when their jobs transferred. The PSA subsequently negotiated that for those employees deciding to relocate, the relocation allowances for conveyancing expenses would be increased by $8,500 to $22,000.

All assistance will be given to any country employee electing not to relocate to stay employed in health. An assurance was given that an employee may only be directed into a lower level position if they have been excess for at least 6 months and then refused the offer of at least one suitable position at their substantive level. There will be no forced relocation and PSA had already obtained government guarantee of no forced redundancies.

Maintaining Health Fringe Benefit Tax (FBT) Benefits

The PSA had for over 18 months been advising Government of the potential income losses for employees compulsorily transferred to a non Public Benevolent Institution (PBI) status employer.

In May 2008 the Government announced that it had obtained an Australian Tax Office Ruling that health employees who had the benefit of salary sacrificing would have that benefit maintained for a 12 month transitional period subject to any restructure causing any individual employee to become a redeployee. In other words, this was a commitment given to employees with a 'get out' clause for the Government as the employer.

Through PSA pressure the Government agreed to treble that offer to provide a 3 year transitional period. There will also be a review to determine if the transitional period can be extended.

The Department of Treasury and Finance (DTF) provided assurances that relevant employees will continue to be provided with duties to ensure their eligibility for the ATO ruling.

Access to SA Health Internal Vacancy Notices

Health employees transferring to Shared Services SA (SSSA) will have access to vacancies prior to jobs being advertised in the Notice of Vacancies or external press.

DTF guarantees release back to Health if the employee achieves a temporary position at either their substantive level or a promotional position.

Car Parking

Transfer to SSSA meant considerable increase to traveling costs including car parking for some employees. DTF are to negotiate with DH to allow employees to continue parking at the hospital where they were employed if applicable. PSA has stated that should just require the agreement of the hospital for car parking arrangements to continue after the employee has transferred to SSSA.

Repatriation General Hospital Super

For those RGH employees who were previously employed by the Commonwealth and maintained access to that Super Scheme, amendments were achieved so that employees transferring to SSSA could retain membership of the Commonwealth Superannuation Scheme.

Correct Classification Levels

PSA consistently insisted that all employees to be transferred to SSSA should be independently assessed to ensure they were correctly classified. The PSA is aware of a number of anomalies in the classification of jobs in Payroll and Accounts across agencies. DTF maintained that this was the responsibility of the relinquishing agencies and also that employees could make personal applications for reclassification.

PSA successfully negotiated that transferring health employees could fill out a simple request to have their positions assessed. The form is available on the PSA website here. These applications will then be assessed by assessors independent of Health and DTF.

Compensation Payment

The PSA had proposed a one off payment to compensate for financial losses, including increased child care expenses, travel costs and additional time taken as well as loss of Salary Sacrifice benefits. This was pursued through the Industrial Commission hearings. The Government refused to make any such payment.

Industrial Commission Conferences

As a result of bans and limitations put on by PSA members the issues were referred to the Industrial Commission. This process contributed towards the Government making more favourable concessions to those members transferring to SSSA.

Members affected

The successful campaign was undertaken by Health members in Payroll Services, Accounts Payable and Accounts Receivable. These were the first groups “in scope” to be transferred to SSSA.

The Government has also proposed that Human Resources, Procurement and Information Technology (see www.sharedservices.sa.gov.au) will move to SSSA.

The PSA trusts that the campaign will ensure that the Government has another look at the disadvantages to all concerned of proceeding down this track.

For further enquiries on this matter please contact Acting Assistant Chief Industrial Officer Ian Peak on ian@cpsu.asn.au