CHA Conference Workforce Compact Presenter: Ian Barton Deputy CEO Date: 16 July 2013
SCC (Vic) goal To pay its employees at the highest rate it can afford in line with its Recruitment and Retention strategy
Workforce Compact Supplement has potential to achieve this goal but ……….
SCC (Vic) response June - advised managers – unaffordable July – Position changed - “interested” to discuss options given latest Guidelines
Compact requirements • Greater of - Min. 2.75% wage increase each financial year or FWC min. increase (2013- 2.6%) • Min wages % in excess of Award • Survey requirements • Need EBA • Workforce commitments
Issues are: • Requirement for an EBA - timeframe and cost • Payment of on costs • Risk of on going funding ceasing • Additional workforce commitments
SCC (Vic) facts • EBA’s – due March/ April 2014 • On costs (32% and increasing) – Year 1= $164,000pa 4 yrs - Aggregate = $1,560,000pa • Ongoing revenue required to fund increases – if funding ceased after 4 years - unfunded SCC wages bill; $4.9m pa + on costs $1.56M = total $6.46m pa
ANF position • EBA claim – 13.5% + Compact for 4 years ; 14% for 4 years without Compact (Compact discount .5%) • However, ANF state they will not enter into EBA without Compact!!!! • On costs – potential (.25 -.30%) depends on subsidy/wages ratio • Wage guarantee clause (offset) if funding ceases - impractical
SCC (Vic)’s position • We meet base requirements Interest dependence on: • Timeframe – probably not before current EBA timelines or we do single issue EBA prior to Dec 13 – gives backdate pay option • On costs – must be borne out of funding • Assurance of on going funding – comfort if large Nos of providers sign up • Extra workforce condition – policy not EBA • “Opt out” option ( EBA drafting challenge)
Thank you
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