In July 2007, the Public Service Association (PSA) received advice from members employed by DTF at the Supply SA Warehouse in Camden Park, that speculation was rife among staff that DTF were planning not to renew the lease for the premises and that the warehouse trading and operations were to cease circa September 2007.

The PSA responded to these rumours by writing to the Under Treasurer to ascertain the facts and intentions of DTF to assure a consultative process was implemented for the ongoing operations of the Warehouse. DTF failed to respond cooperatively to the PSA's request, which was the catalyst for the PSA to lodge a dispute notice through the Industrial Relations Commissioner SA (IRCSA) on 13 July 2007.

Commissioner Steele at the IRCSA gave recommendations that DTF must consult with staff prior to implementing any significant changes to the Warehouse operations.

Outcomes

The dispute by the PSA caused the Minister to direct DTF to fully consult with the PSA and Warehouse staff on the possible future operations of the Warehouse. During the series of consultative meetings with the Deputy Under Treasurer, it was identified that DTF failed to understand the criticality of the Warehouse operations, particularly when managing:

• Stationary orders and distribution for the next school year;

• Inventory management for Emergency Services and the State Disaster Plan.

DTF implemented a moratorium on implementing an operational change at the Warehouse, pending a review and resubmission to Cabinet on the Warehouse operations which included submissions from both the PSA and Warehouse staff.

To ensure the continuity of operations during the moratorium, DTF was forced to extend the lease of the premises for another five years. However, during the same period, DTF undertook another review of the Warehouse operations, this time aware of the services provided by the Warehouse to all client departments. This resulted in the key departments, namely Education, Health and Emergency Services agreeing to manage and operate their inventories in conjunction with their existing procurement and distribution operations.

Importantly, this second DTF review had the effect of “white-anting” the confidence of client agencies to the continued operation of the Warehouse, which has resulted in a downturn in business operations which DTF have deemed as rendering the Warehouse operations as financially unsustainable.

DTF failed to confirm to the PSA the content of a revised draft decision to Cabinet. However, Cabinet decided to close the Warehouse operations on Monday 10 December 2007. The irony is not lost on the PSA that Minister Wright officially opened the Supply SA Camden Park Warehouse November 2004, and sanctioned its closure on 10 December 2007.

Where to from here?

While the PSA stridently opposes the closure of the Camden Park Warehouse, the PSA is also mindful that the result is the culmination of an ideological battle between the former Chief Executive of DAIS, who strongly argued for the retention and in-sourcing of the Warehouse operations, and the current Under Treasurer, who is striving to find dollar savings to meet the obligations proclaimed in the 2006 State Budget.

The PSA will ensure that members are not disadvantaged throughout this process and afforded all their entitlements, and given priority for ongoing job security in the public sector. The PSA welcomes advice from members on how to proceed with their particular issues which will be treated in a strictly confidential manner.

If you have any queries please contact PSA Industrial Officer Mike Thorpe on mct@cpsu.asn.au or 8205 3284.