Showing posts with label industrial relations. Show all posts
Showing posts with label industrial relations. Show all posts

Thursday 20 April 2017

Clarence Valley councillors bite the bullet in order to save the local government area from threat of a state government-imposed administrator


Mayor: Jim Simmons    
A/General Manager: Ashley Lindsay                                                                                                                           
LOCKED BAG 23 GRAFTON NSW 2460
Telephone: (02) 6643 0200
Fax: (02) 6642 7647

FOR IMMEDIATE RELEASE

April 19, 2017

Making the Clarence Valley Council financially sustainable

CLARENCE Valley Council has voted to introduce a range of measures to improve its long-term financial position and help it meet the NSW Government’s Fit for the Future benchmarks.

The measures include applying for a special rates variation of 8% each year for three years, including an estimated rate pegged limit of 2%. The cumulative impact would be a rise in the  general rate of 25.9%, which would be retained permanently in council’s rate base. Council will also implement a host of savings measures totalling more than $8 million over four years.

Acting general manager, Ashley Lindsay, said a special rates variation, if approved, would raise an additional $7.08 million over three years.

“These measures will improve our financial position by more than $15 million over four years,” he said.

“None of this will be easy. No-one wants to pay more rates and we don’t want to charge them, but the harsh reality is the only alternative to a special rates variation is deep cuts to, or the elimination of, many of the services council provides and the community expects.

“We have been told by the Office of Local Government we need to have a balanced operating result by 2021.

“The cost-cutting measures we will introduce result in the loss of the equivalent of 24.5 full time staff positions, cuts to a range of services and better cost recovery on others. We have done everything possible to keep rate rises to a minimum.”

At the council meeting on Tuesday night, Cr Andrew Baker said that in 2012 the NSW Government’s TCorp identified the need for council to make efficiency savings and introduce a special rates variation.

He said that since then he and fellow councillors had tried to find ways to make the council financially sustainable without the need for a rates variation.

“I’m certain that each councillor that is here today was elected with an ambition to not increase the rates, to not cut services, to not cut employment, to not reduce facilities and amenities, to not increase debt and to provide responsible governance,” he said.

“Council has individually and collectively examined, debated, challenged and examined again every suggestion in every possible way to deliver on those noble aspirations of no rates increases, no service cuts, no employment reductions, no reduced facilities and amenities, and no more debt.

“While I can’t see how we can avoid a rates increase, I can say we have all made a big attempt to do just that.

“We’ve exhausted the discovery of all options and examined the possibilities and variations; we’ve called for and listened to expert advice, numerous reports and finance models. Some advice we have accepted and some we haven’t.

“We’ve looked for the best outcomes and least pain for our residents and ratepayers.”

Cr Peter Ellem said councillors had no choice but to put their hard hats on and make unpopular decisions to meet the State Government's Fit for The Future benchmarks to become financially sustainable by the end of the current four-year term, and indeed, for the decade thereafter.

“It is the shared responsibility of the nine duly-elected councillors, and not that of a financial controller or administrator, to adopt a draft package of job cuts, to be made in full consultation with the United Services Union, efficiency savings, and regrettably rate increases, to be put up for community consultation,” he said.

Mr Lindsay said council would seek the views of the community before reaching a final decision on a special rates variation application and some of the efficiency measures, and would consider a report at its May meeting on a schedule for community engagement.

Release ends. 
UPDATE

The Daily Examiner, 20 April 2017:

A pre-election survey by The DEX pinned four councillors against the SRV and only two, Cr Debrah Novak and Cr Greg Clancy, remained true to their word……

Cr Toms said voting for the SRV was a hard pill to swallow.

"I made declarations that I wanted better financial management and I wouldn't support the SRV and I wouldn't support excessive rate increase," she said.

"But I've had to change that position.

"When I had that position, I truly meant it... but now I have a lot more information and after a full day with the Office of Local Government (I have changed my mind)."

Cr Toms said despite the community backlash, the councillors had to make the decision.

"It's easy to criticise, people think we do the wrong thing, but the reality is that the councillors make the best decisions they can," Cr Toms said.

"I did change my mind over the SRV and that was also a very difficult decision to make, but I have to make it and I do believe I didn't have a choice."

The adopted recommendation included a detailed report which outlined that from 2017/18 to 2019/20, the council would make $15,566,987, which is more than the council's total debt of $15,343,127. The rates rise is to be rolled out 8% each year over three years which will amount to an expected total of $7.8million in revenue to come from the SRV.

Seven of the nine councillors voted for the SRV recommendation.
It will go to community consultation at the May council meeting……..

Cr Peter Ellem said the council had no choice but to make the unpopular decision.
"I believe that it is the shared responsibility of the nine duly-elected councillors, and not that of a financial controller or administrator, to adopt a draft package of job cuts, to be made in full consultation with the United Services Union, efficiency savings, and regrettably rate increases, to be put up for community consultation," Cr Ellem said.

"As a new councillor I am wiser because we have demanded and recently received more detailed information on the operational side of things, and greater clarity from the Office of Local Government."

Cr Ellem said fixing the $15million "black hole" which the new council has inherited from a "clunky forced amalgamation" needed addressing.

"My personal preference would be for the SRV component of this suite of measures to be lower than the 8% per year, but when we consult with ratepayers and residents in coming months it will become clear that a lower SRV will mean deeper cuts to local jobs and valued, if not cherished, services," he said.

Echoes of the unfortunate term of a contentious general manager linger

On 22 May 2014 North Coast Voices posted mention of Clarence Valley Council's refusal to follow the Information Commissioner's recommendation to allow a staff member access to information in a report on his conduct (which found no corrupt conduct), when in February 2014 at Item 14.005/14 they unanimously agreed to change the wording of the existing April 2013 Privacy Management Plan so that it appears to significantly depart from the Model Plan supplied by the NSW Division of Local Government.

This week the NSW Court List contained mention of this case before the NSW Industrial Relations Commission on 3 May 2017:

  
Yes, the allegedly destabilizing element may have been removed from Clarence Valley Council but the ripple effect flows on.

On the Australian Waterfront Everything Old Is New Again In 2017


Chris Corrigan has returned to his old stomping ground.

Swap April 2017 for April 1998, Malcolm Turnbull for John Howard, Sally McManus for Greg Combet and Paddy Crumlin for John Coombs and what have you got?

Perhaps the start of a replay of the Patrick Corporation Pty Ltd versus Maritime Union of Australia waterfront dispute, in which then Patrick managing director Chris Corrigan and his Liberal-Nationals political allies attempted to kill off the union representing dock and maritime workers at ports around Australia.  

The Sydney Morning Herald, November 2016:

Legendary waterfront warrior Chris Corrigan has announced he will stand down as chairman of logistics giant Qube, just months after the company completed the takeover of Asciano's Patrick's container ports business.

Coal industry veteran and long-time Qube director Allan Davies will be appointed chairman after a transitional program that is expected to be completed by around June 2017.

"I could not be more proud of the achievements of the Qube management team and it has been an enormous privilege to be part of the progress of this business," Mr Corrigan told Qube's annual general meeting in Sydney on Thursday.

Mr Corrigan, who has chaired Qube since early 2011 and is a former managing director of Patrick's, said he will continue as a director of the ports group "for a more extended period" to help oversee its integration following the acquisition from Asciano.

ACTU letter to Patrick Stevedores, 11 April 2017:



BACKGROUND

1. The Maritime Workers Union of Australia (the Union) and employees of companies in the Patricks group of companies (Patricks) who are members of the Union have brought proceedings in the Federal Court alleging that Patricks and others have acted unlawfully by taking steps to replace the employees with non-Union workers.
2. An urgent situation arose on 6 April 1998, when the Union and the employees believed that Patricks were about to dismiss the entire workforce over Easter.
3. The Union and the employees applied to the Court immediately on 6 April 1998 and asked for temporary orders to keep the employees in work until the main application is heard by the Court. The Court listed that urgent matter for hearing on 8 April 1998.
4. The following night, on 7 April 1998, the Patrick companies which employed the employees (the Patrick employers) appointed administrators to companies on the ground that they were insolvent.
5. Part of the cause of the insolvency was that other Patrick companies which owned the stevedoring operation (the Patrick owners) cancelled a contract for the supply of labour by the Patrick employers to the Patrick owners. That contract was the way the Patrick employers obtained stevedoring work to employ the employees.
6. On the same night, the Patrick owners engaged contractors to provide a new workforce. Under these contracts, the Patrick owners committed themselves to substantial financial obligations……
12. The cancellation of the labour supply contract and the appointment of administrators on 7 April 1998 were made possible by a complex inter-company transaction which occurred in September 1997. By dividing the functions of employing workers and owning the business between two companies, the Patrick group put in place a structure which made it easier to dismiss the whole workforce. It is arguable, on the evidence, that this was done because the employees were members of the Union. So there is an arguable case that the Patrick employers acted in breach of s 298K(1) of the Act.
13. There is also an arguable case that these acts amounted to a breach of the employees' contracts of employment.
14. There is also evidence that the Patrick owners and other companies in the Patrick group, together with others, agreed on these unlawful acts as part of an overall plan to replace the workforce with non-Union labour. This means that there is an arguable case that the Patrick owners and Patrick employers have engaged in an unlawful conspiracy.

Patricks conducted the business of stevedoring at 17 facilities around Australia. In particular, four companies in the Patricks group ("the employers”) employed the applicant employees, approximately 1,400 in number, and who were members of the MUA, to carry on the stevedoring business. The employees believed that the employers intended to dismiss their unionised workforce and replace it with non-union labour. This concern was fueled by the fact that, in January 1998, the Patricks group transferred the right to use No 5 Webb Dock in Victoria for stevedoring operations, together with cranes and equipment, to companies associated with the National Farmers Federation (NFF). The MUA employees believed that Patricks had some involvement with the NFF companies, and that the transfer of No 5 Webb Dock was part of a plan by Patricks to train an alternative workforce with which to replace the union employees.
In response, the employees filed an application on 11 February 1998, in which they alleged that the transfer of No 5 Webb Dock was part of a wrongful plan to replace the MUA employees with a non-union workforce. However, matters escalated considerably just before Easter when the employees learned that Patricks intended to dismiss the whole workforce during the Easter period. Then, on 7 April 1998, Patricks announced that it had entered into contracts "for a range of services from nine separate companies including the ... NFF backed P&C Stevedoring ..." and that Patricks had "taken steps to ensure all displaced employees ... will be eligible to receive their full leave and redundancy entitlements.
"On the evening of the 7'h of April, each of the four Patrick employer companies appointed administrators under Pt 5.3A of the Corporations Law. The court was told on 8 April that the administrators intended to dismiss the employees because the employers were insolvent. An interim injunction to restrain the employers from doing so was granted by His Honour North J on 8 April 1998, to have effect until the first hearing day after Easter, that was 15 April 1998. It is this latter hearing, and the subsequent appeals from the decision, which is the subject of this case note.
The employees sought injunctive orders which, in general terms, sought to prevent the employers, until the trial of the action, from dismissing the employees, and which required Patricks to utilise the MUA employees and no others in operating its stevedoring business. The court was also asked to restrain the employers from acting on or giving effect to the purported termination of certain labour supply agreements between the employers and another company in the Croup, Patrick Stevedores ESD Pty Ltd. That purported termination, which occurred on the evening of 7 April 1998, armed the Patricks employers with the power to claim that the MUA workforce was redundant.'' In other words, the purported termination left the employers with no work for their workforces to perform."…..
The injunctive orders granted by North J and upheld on appeal essentially had the effect of requiring Patricks as employers to retain their workforce, and compelled Patrick Stevedores Operations Pty Ltd to use that workforce for any stevedoring work. The orders amounted to the specific performance of the labour supply agreements, and required that the pre-7 April situation, whereby the Patrick operators had employed as their labour force members of the MUA, be maintained. The employees were protected against the imminent termination of their employment….
…the High Court was prepared to uphold the orders made by North J, in light of the undertakings given, on the basis that the administrators had to retain their discretion as to whether the employer companies ought to continue trading, or cease trading, and whether or not it would be feasible to retain the whole workforce. Decisions of that kind were for the administrators to make, not the court. However, if the administrators decided to continue trading, the effect was to restore the pre-7 April employment situation.

The sacked unionised Patricks workforce was finally reinstated in May 1998.


As Chairman and major shareholder in Qube Holdings Ltd Corrigan oversaw the purchase of Patricks in 2016.

Thursday 23 March 2017

Before anyone starts yelling about those big bad unions, take a look at these workplace fatality statistics


The following figures represent someone’s mother or father, son or daughter, brother or sister, niece or nephew, aunt or uncle, grandparent or friend.

The numbers also make clear that, averaged out, three people were killed each week in a workplace accident between 1 January and 14 March 2017.

This is no blip in workplace fatality statistics – averaged out four workers died each week of the year in 2015 and three workers each week in 2016.


Worker fatalities

As at 14 March, 32 Australian workers have been killed at work in 2017.

The number of worker deaths listed on this page is based on initial media reports and is a preliminary estimate of the number of people killed while working. Once the appropriate authority has investigated the death, more accurate information becomes available from which Safe Work Australia updates details of the incident.
Updated information is used to publish Safe Work Australia’s annual Work-related Traumatic Injury Fatalities report which includes finalised work-related fatalities from 2003 onwards.

Year-to-date 2017: Preliminary worker deaths by industry of workplacea
a Ranked in descending order, and then on alphabetical order for industries with no fatalities.
b Mining fatalities include fatalities that occur in the coal mining, oil and gas extraction, metal ore mining, gravel and sand quarrying, and services to mining sectors.
c Includes notifiable fatalities that occurred overseas.
Safe Work Australia also collects and reports on a range of other work health and safety and workers compensation statistics.

These figures are still too high. 

However if it wasn’t for the efforts of unions from the 1830s onwards to have wages, hours worked, sick leave, annual leave and workplace safety included in Australian industrial law, workplace fatalities would be much higher in this country today.

Sunday 12 March 2017

Australian Fair Work Commission: Who's Who - a member cheat sheet for 2017 and other matters


The Fair Work Commission (FWC), formerly known as Fair Work Australia, is the Australian industrial relations tribunal created by the Fair Work Act 2009. It replaced the Australian Industrial Relations Commission (AIRC) and a number of AIRC members became part of the FWC organisational structure.

As part of a four-yearly review of modern awards the Full Bench of the Fair Work Commission handed down a decision on Sunday penalty rates for workers in hospitality and retail sectors on 23 February 2017.

For the purposes of this review the Full Bench was composed of:

Justice Iain Ross, President
Vice President Joseph Catanzariti
Deputy President Ingrid Asbury
Commissioner Peter Hampton
Commissioner Tim Lee

In 2016 the Queensland Labor Government made a submission to the FWC modern awards review opposing cuts to penalty rates, along with the ACT Labor Government, the Victorian Labor Government and South Australian Labor Government

As did the federal parliamentary Labor Party (The Loyal Opposition) as well as the state parliamentary Labor Party in Tasmania , New South Wales and Western Australia.

The Turnbull Federal Coalition Government was notable by its absence in the list of submissions. As was the Coalition state governments in Tasmania, New South Wales and Western Australia.


A full list of submissions, including those by unions and industry/employer groups can be found here.

As this probably will not be the last time the Fair Work Commission decides to extend its brief to cutting the hourly rates of ordinary workers, a closer look at who is making these decisions is merited.

This is as much as I could glean to date concerning the current makeup of the Commission in March 2017:

Fair Work Commission President

Justice Iain Ross AO  – Labor Government appointee 2012 to 2024

Vice Presidents

Joseph Catanzariti  - Labor Government appointee 2013 to 2024
Adam Hatcher SC  - Labor Government appointee 2013 to 2028

Deputy Presidents

Jennifer Acton – Labor Government appointee 1992 and then Labor Government appointee 2009 to 2020
Lea Drake – Labor Government appointee 1994 and then Labor Government appointee 2009 to 2018
Reginald Hamilton - Coalition Government appointee 2001 and then Labor Government appointee 2009 to 2022
Matthew O'Callaghan - Coalition Government appointee 2001 and then Labor Government appointee 2009 to 2021[resigned February, leaving April 2017]
Jonathan Hamberger - Coalition Government appointee 2004 then Labor Government appointee 2009 to 2024
Peter Sams AM – Labor Government appointee 2012 to 2021
Anna Booth – Labor Government appointee 2012 to 2021
Ms Ingrid Asbury - Labor appointee 2013 to 2028
Ms Anne Gooley - Labor appointee 2013 to 2018
Mr Val Gostencnik – Labor appointee 2013 to 2028
Jeffery Lawrence – Labor appointee 2013 to 2017
John Kovacic – Labor Government appointee 2013 to 2022
Geoffrey Bull – Coalition Government appointee 2015 to 2022
Melanie Binet – Coalition Government appointee 2016 to 2034
W. Richard Clancy - Coalition Government appointee 2016 to 2036
Lyndall Dean - Coalition Government appointee 2016 to 2037

Commissioners

Paula Spencer - Coalition Government appointee 2001 then Labor Government appointee 2009 to 2029
Bruce Williams – Coalition Government appointee 2006 to 2023
Anna Cribb - Labor Government appointee 2009 to 2019
Ian Cambridge -
Labor Government appointee 2010 to 2033
John Ryan -
Labor Government appointee 2010 to 2017
Peter Hampton -
Labor Government appointee 2010 to 2025
Julian Roe -
Labor Government appointee 2010 to 2017
Michelle Bissett
– Labor Government appointee 2010 to 2022
Chris Simpson – Labor Government appointee 2010 to 2034
Tim Lee – Labor Government appointee 2011 to 2029
Susan Booth – Labor Government appointee 2011 to 2022
Donna McKenna Labor Government appointee 2012 to 2025
Bernie Riordan -
Labor Government appointee 2012 to 2027
David Gregory -
Labor Government appointee 2012 to 2019
Nickolas  Wilson - Labor Government appointee 2013 to 2025
Leigh Johns OAM - Labor Government appointee 2013 to 2034
Tony Saunders - Coalition Government appointee 2015 to 2039
Tanya Cirkovic - Coalition Government appointee 2015 to 2028
Christopher Platt - Coalition Government appointee 2015 to 2026
Katrina Harper-Greenwell - Coalition Government appointee 2016 to 2033
Jennifer Hunt - Coalition Government appointee 2016 to 2038

Additional members – can be found here.

Tuesday 7 March 2017

A Fair Day's Wages For A Fair Day's Work*: has an employment epoch finally come to an inglorious end?


Looking at the Australian employment market in 2016 and 2017 one has to ask if this country has entered the Era of Exploitation………

ABC News, 1 March 2017:

the Australian economy is currently growing at around 2 per cent per annum. That's about fast enough to keep the unemployment rate steady, but it's not fast enough to create lots of new jobs. To create jobs, it needs to grow at least 2.5 to 3 per cent per annum.

The economy isn't growing fast enough for a whole bunch of reasons, but the big picture is that we haven't been able to transition as smoothly as we would have liked from the mining boom, to an economy being driven by a number of different sectors.

The sectors of the economy that have enjoyed increased activity are healthcare, hospitality, and tourism. These sectors tend to be biased towards hiring part-time workers.

Nine2Three Employment Solutions in Sydney's Sutherland Shire specialises in placing candidates into part-time roles. Managing director, Kathryn MacMillan, say business is booming. Right now, she's placing job seekers into part-time roles including mining, tourism, retail, clerical and accounts-type roles, sales roles and business development.

Ms MacMillan explained to me that she's placing lots of mums re-entering the workforce, and people after just a few days of work a week. Part-time work can also be convenient for students, and for those returning to the workforce after an illness or injury.

You can't ignore, however, the hundreds of thousands of Australians over the past 12 months that have either lost their job, or would dearly like to work more (to help pay the mortgage, utility bills etc.).

We know, for instance, the economy shed 53,000 full-time positions in September last year. Another 44,800 full-time jobs disappeared in January.

It's really quite straight forward. The Australian economy is transitioning, and many workers are getting left behind.

Remember the kids' game, musical chairs? Everyone has a seat to start with. That was the mining boom. The music started playing during the financial crisis, and now that it's stopped, we've noticed quite a few chairs have been taken away. We're now seeing two or three people trying to squeeze onto the same chair in many cases!

Darren Coppin is the chief executive of Esher House. His company spits out all sorts of interest research. He told me recently that this big economic transition has also ignited a bit of a social change.

He explained to me that 30 years ago the man did most of the paid-for work (40 hours a week). Since then millions of women have entered the workforce. During the 1980s and 1990s both men and women were working more, and earning more (excluding the recession).

Recently, however, the economy's been unable to sustain those jobs.

Now, women tend to be working 25 hours a week, while men also work 25 hours a week (in trend terms). So, overall, the household is working more, but because both jobs may not be strictly full-time, the actual combined take-home pay at the end of the day is less.

So yes, you guessed it, overall we're working more, for less pay.

Record low wages growth is also rubbing salt into the wound.

Anecdotally I've met quite a lot of people who are doing their best to make the best of a bad situation.

Many couples with children, for instance, have decided to work nine-day fortnights. That means mum or dad takes one day off each week. That day's devoted to running errands, and, of course, child care... and cooking.

I spoke to a single mum last month who told me she felt quite isolated. She said she spends all of her waking hours working and looking after her child, with no time left over for friends, because the bills keep piling up (child care and rent being the ones that hurt).

While many Australians are working out how to get by, too many are really struggling.

I spoke to a few people last week who told me the decision by the Fair Work Commission to scrap Sunday penalty rate had been a kick in guts.

Mandy Carr, for example, a retail worker on Queensland's Gold Coast, had decided to return to work (post maternity leave) on the Sunday shift so her and her husband could get ahead financially.

She says the decision will cost her $100 each and every week.

There are too many Australians though that are angry... really angry.

They're upset because they'd desperately like to make a go of life. They want a home, and enough money on the side to give their kids opportunities in life. But they're being held back by a job that doesn't offer them enough in terms of hours and/or pay, and the cost of living keeps rising.

There's also the emotional toll that workers face with heightened job insecurity, combined with ever-increasing debt repayments.

The Reserve Bank governor told a Parliamentary Committee last week that the situation households face (having to cut back on spending because of rising costs and low wages) is "sobering".

The recognition of the problem is heartening. At this very moment though, recognising the problem is all we seem to be doing.

Low wages growth is at record breaking level and underemployment is endemic in Australia in this second decade of the 21st Century.

By December 2016 seasonally adjusted wages growth was 1.9 per cent December Quarter 2015 to December Quarter 2016, with growth in the private sector being lower still at 1.8 per cent.

Trend percentages are even more dismal.

In December 2016 the Cost Price Index (CPI) showed rises in the cost of food, non-alcoholic beverages, alcohol, tobacco, clothing, footwear, housing, furnishings, household equipment & services, recreation & culture, education, insurance and financial services – with CPI rises ranging from 1.8 per cent to 5.9 per cent December Quarter 2015 to December Quarter 2016.

According the Australian Bureau of Statistics Labour Force Statistics in  December 2016 there were seasonally adjusted an:

est. 739,600 people who were unemployed and looking for full-time work – an est. 18,100 more individuals than in December 2015;

est. 3,814,200 people who were working part-time but would prefer to be working full-time – an est. 126,600 more individuals than in December 2015; and

est. 212,500 unemployed people who were exclusively looking for part-time work in December 2016 – an fall of est. 1,100 individuals since December 2015.

In November 2016 there were seasonally adjusted an est. 1,099,400 underemployed individuals - usually working less than 35 hours per week for a wage which does not meet economic needs. That represents an underemployment rate of 8.6 per cent.

In January 2017 there were around 129,800 more people working part-time than there were a year ago and around 40,100 fewer people working full-time and, despite an alleged small growth in full-time jobs in December 2016, the trend unemployment rate still stood at 5.7 per cent for the ninth consecutive month.


Affecting the take home pay of more than 700,000 workers, with those who regularly work Sunday shifts being left between $29 and over $80 worse off every week.

Many of these workers are already employed in industry sectors and regions which often allow only limited opportunity for changing employers.

According to the Internet Vacancy Index (based on a count of online job advertisements newly lodged on three main job boards SEEK, CareerOne and Australian JobSearch) in January 2017 job vacancies decreased in the Northern Territory, south west Western Australia, western Victoria and regional New South Wales - with the NSW North Coast showing a twelve month decline of -2.6 per cent and three month moving average of 1,700 job on offer to suitable applicants.



The effect of statistics such as this on individuals, families and communities are amplified across rural and regional Australia where the job market is usually tighter than in metropolitan areas and, I suspect that many of us living in the NSW Northern Rivers region have friends or family members struggling with poverty-level incomes due to unemployment or underemployment.

* The saying A Fair Day's Wages For A Fair Day's Work appears to have entered the public arena in or about 1839.

Thursday 5 January 2017

Next time a man tells you that there is a level playing field.........


Many older Australian women alive today reached retirement age without any superannuation savings. Some will still do so into the future if they have predominately engaged in unpaid work during most of their working-age life.

Superannuation was first paid in the mid‑1800s as a benefit to certain employees in the public service and larger corporate organisations. Invitation to join what were then a limited number of superannuation schemes was predominately restricted to males at professional/managerial level. Full benefits upon retirement could be taken as a lump sum. By 1915 super earnings were exempt from taxation [taxreview.treasury.com.au].

As recently as the late 1960s women often faced an employment bar on marriage and/or once wed were forced to withdraw from any superannuation scheme they may have had the good fortune to be previously eligible for. [Paxton, JA, July 2014, Women and Superannuation: The Impact of the Family Law Superannuation Regime, p.23]

Superannuation was fairly uncommon in Australia until the 1970s, when it began to be included in industrial awards.

In 1985, only 39 per cent of the workforce had superannuation—24 per cent of women and 50 per cent of men had access to super.
At that stage, superannuation coverage was concentrated in higher paid white collar positions in large corporations and, in the public sector.

Superannuation became a major component of Australia's retirement system following the introduction of the Superannuation Guarantee in 1992. The Superannuation Guarantee requires employers to contribute a percentage of an employee's earnings into a superannuation fund, which the employee cannot access until they reach the superannuation preservation age. For most employees, superannuation coverage expanded following the introduction of compulsory superannuation.

In 1993, 81 per cent of employed Australians were covered by superannuation and the gender gap in superannuation coverage had narrowed, with 82 per cent of employed men and 78 per cent of employed women covered by superannuation. The employer contribution rate has increased over time, from 3 per cent in 1992 to the current rate of 9.5 per cent. 
[Economics References Committee, April 2016, 'A husband is not a retirement plan': Achieving economic security for women in retirement, p.6]

The superannuation industry, including the Commonwealth's defined benefit funds, may prefer to forget past practices. There was a time when women were forced to leave their super fund on marriage and, as a result, were deprived of unvested benefits. The winners then were long-term (usually permanent) employees, predominantly male, who reaped their full entitlements on retirement……
It wasn't too long ago that during a family breakdown, women who sacrificed a career to bring up a family were unable to access their partner's vested super benefits. Family law changes now allow women to access a fair share of their former partner's superannuation.  [The Sydney Morning Herald, 6 March 2016]

The table below shows the disparity between men's and women's superannuation balances over time across all age groups.

[Economics References Committee, April 2016, 'A husband is not a retirement plan': Achieving economic security for women in retirement, p.9]

Thursday 22 September 2016

Looking back on the Abbott-Heydon politically motivated fizzer


Professor John Quiggin writing at johnquiggin.com, 10 September 2016:

When Dyson Heydon delivered the report of the Royal Commissioner into Royal Commission into Trade Union Governance and Corruption, he claimed that his findings represented “the tip of the iceberg”. At the time, I commented that, given nearly $50 million of public money and lengthy hearings with the exceptional powers of a Royal Commission, the Australian public was entitled to expect the whole iceberg.

It turns out that I was too charitable. In the months since the Commission reported, a string of the charges he recommended have been thrown out or withdrawn In fact, six months later, there has only been one conviction, resulting in a suspended sentence. The only big fish to be caught since the establishment of Heydon’s star chamber has been the Commission’s own star witness, Kathy Jackson.

And the bills keep coming in. The last budget allocated $6 million more for the AFP-Victorian Police taskforce, which currently has outstanding cases against a grand total of six unionists. By contrast, taskforce Argo in Queensland, focused on child exploitation, has a budget of $3 million.

For another contrast, here are a few of the cases of alleged wage fraud, misappropriation of worker entitlements and so on that have emerged since Heydon’s Commission was launched: 7-11 ( million underpayment), Queensland NickelPizza HutMyers and Spotless, and lots of small employers in the agricultural sector. That’s on top of the general run of sharp practiceenvironmental vandalism, market rigging, and dubious practices of all kinds.

It would be absurd to deny the existence of corrupt union officials and, though it is much rarer, systemic corruption, as in the case of the Health Services Union. But the continued failure of a massively expensive, politically motivated inquisition to turn up more than a handful of cases suggests that the problems are isolated, and that the real drive is to attack unions for doing the job of representing workers.

Wednesday 24 August 2016

Minister Assisting the Prime Minister for the Public Service and Minister for Employment, Liberal Senator Michaelia Cash, is learning the hard way that Australians expect the boss to act fairly


As a recognised bargaining representative of the Turnbull Government, Minister Assisting the Prime Minister for the Public Service and Minister for Employment, Liberal Senator Michaelia Cash is once more before the Australian Fair Work Commission.

Community and Public Sector Union (CPSU), media release, 17 August 2016:

CPSU TAKES ON MINISTER MICHAELIA CASH IN FAIR WORK COMMISSION

The CPSU has taken Employment Minister Michaelia Cash to the Fair Work Commission over her failure to engage in good faith around enterprise agreements for Commonwealth public sector workers.

The case is based on Minister Cash’s refusal to deal constructively with the CPSU, including refusing to discuss or properly consider the union’s fair and reasonable proposals to settle bargaining across multiple Commonwealth agencies.

Action in Fair Work is part of the union’s multi-pronged plan to make the Turnbull Government fix its public sector bargaining mess; the strategy also includes industrial action at international airports and elsewhere, community campaigning targeted in marginal electorates and repeated efforts to engage directly with Prime Minister Malcolm Turnbull and Minister Cash.

CPSU National President Alistair Waters said: “Minister Michaelia Cash is responsible for setting and implementing the Turnbull Government’s harsh and unworkable approach to public sector bargaining. We’re taking her to Fair Work to hold her and the Turnbull Government accountable for this debacle that’s unfairly attacked workers for nearly three years.”

“Minister Cash hasn’t just refused to meet with the CPSU, she has also publicly misrepresented our position on numerous occasions and otherwise tried to undermine our attempts to help her fix the Turnbull Government’s bargaining mess. Our members have shown a willingness to compromise but Minister Cash’s responses have been consistently toxic and unfair.”

“There’s a bitter irony that we’ve had to take Minister Cash to the Fair Work Commission to get her to fulfil even her most basic obligations. This is the person who as Employment Minister is responsible for the Fair Work Act she’s flouting by actively undermining bargaining.”

“Public sector workers have fought for nearly three years to protect their existing rights against this Government’s bargaining attacks and they are determined to secure a fair and reasonable outcome. The only way for this protracted dispute to end is for the Turnbull Government to realise that its attempts to force workers to give up family friendly rights and other conditions have failed, and instead engage with us on a sensible alternative.”

“Our action in the Fair Work Commission is just one part of a much broader strategy to pressure Prime Minister Turnbull and Minister Cash to fix their bargaining debacle. We’re also planning further industrial action in the wake of last week’s Immigration and Border Force strike at international airports and elsewhere and continuing with our community campaigning in marginal electorates.”