SHARED SERVICES BANS LIFTED 11 November 2008

BANS LIFTED IN HEALTH SHARED SERVICES DISPUTE

A meeting of PSA members affected by the transfer of positions to Shared Services SA, held at the PSA at 12.30pm, Tuesday 11 November 2008, resolved the following

“(a) This meeting of members notes the Statement and Recommendations issued by Commissioner P J McMahon of the IRC on 7th November 2008 and determines:

1. To accept the recommendations of the Commission and to immediately lift all bans and limitations as a sign of good faith.

2. Puts the Government on notice that if it does not genuinely reconsider its position and make a substantially improved offer then some or all of the current bans and limitations may be re-imposed by authority of the General Secretary pending further consideration by members.

3. Adjourns this meeting to 12.30pm on Monday 17 November 2008.”

The Commissioner's Statement and Recommendations were

“(b) The parties met in the Commission today. The Government put their position in relation to resolving the issues surrounding the relocation of Shared Services. The PSA indicated that this position has already been rejected at a meeting of its members held on 5 November 2008. While there was no movement in the negotiations today, I do believe that further negotiations could provide an opportunity to reach agreement. Therefore to avoid the escalation of this matter, I strongly recommend the following:

THAT the Union meet as soon as possible with its members to lift all bans and limitations as a sign of good faith.

THAT the Government reconsider its current position.

This Compulsory Conference is re-listed for Wednesday 12 November 2008 at 2.00pm.”

The PSA is expecting that the Government in reconsidering its position will make a more substantial offer.

The Commissioner recommended after the first hearing in the Industrial Commission on the 3rd of November 2008, that the parties have discussions in the Commission “with the objective of limiting the negative effects of employees moving to Shared Services.”

The following have been discussed in correspondence and in the Industrial Commission.

1.Continuation of Fringe Benefit Tax (FBT) exemption status for Salary Sacrifice purposes. The Government has now proposed that this be continued from 1 January 2009 to 1 January 2012. This may be continued beyond 2012, subject to an internal review. This requires employees continuing to work “exclusively” on health business.

The PSA has sought assurance that no member to whom this applies, will be subject
to an organisational review and placed in the position of being declared excess to requirements.

2.Increased travelling costs and time including impact on Child Care arrangements. Government has not agreed to the one off “dislocation” allowance sought by the PSA. They have offered flexible work arrangements. PSA has had previous concerns about the lack of flexibility in Department of Treasury and Finance, but in any case, employees still need to be at the work site for their required hours.

3.Moving expenses for country employees “electing” to transfer. The Government has agreed to increase the cost of conveyancing expenses to a maximum of $22,000.

4.Ensure appropriate classification levels. The Government has not agreed to an independent assessment as to the appropriate classification of all positions “in scope” to transfer to SSSA.

5.Maintaining salary. PSA was concerned for employees becoming redeployees out of this exercise. This will affect country employees from December of this year, who “elect” not to relocate. The Government's response of 4 November 2008 in part states

“an employee may only be directed into a position (including a lower level position) after the employee has been excess to requirements for at least 6 months and has been offered and declined at least one suitable position.”

The PSA will ensure that this applies.

6.No forced relocation for country employees. PSA concerned that those country members who “elect” not to transfer to the city may later, as redeployees, be required to transfer to another location. The Government in its letter of 4 November 2008, reaffirmed its commitment of “no forced relocation” for employees in regional areas.

During the negotiation process there has been some progress, and the PSA will continue to hold Government to their original assurance that cost savings in Shared Services will be achieved by natural attrition, not by PSA members losing take home pay. PSA expects Government to “reconsider its current position” and offer to further reduce the “negative impacts” of forcing employees to move to the CBD.

Please direct any enquiries to Acting PSA Assistant Chief Industrial Officer Ian Peak on
(08) 8205 3294 or email ian@cpsu.asn.au

11 November 2008