Proposed Excess Employees Policy in the IRC
03-Feb-2012The proposed new policy for excess employees in the NSW Health Service was in the IRC this week.
The NSW Nurses Association (‘NSWNA’) last Friday filed a notice of dispute re the proposed new policy for the NSW Health Service, which is slated for commencement on 30 April 2012. The matter was then listed before the President, Justice Boland on Wednesday, 1 February.
At those proceedings, public health unions (NSWNA, HSUeast and ASMOF) made submissions that: (i) the proposed policy was being presented as a fait accompli; (ii) would create inordinate dislocation to the health reform agenda; (iii) would impact significantly on those caught up in the transition from one policy to another; and (iv) accordingly the outcome of current appeal proceedings in relation to a relevant decision of the Industrial Court from late last year would be crucial in determining what may or may not be provided to affected employees.
The Ministry submitted that: (i) it was not a done deal; (ii) that it was a draft policy and they were willing to engage in good faith discussion on the policy itself and the transition arrangements; and (iii) that it was “not off the table” that transition to a new policy could be postponed to facilitate appeal outcomes.
On that basis the President suggested that the two meetings scheduled by the Ministry for February go ahead and that proceedings resume before the Commission on Tuesday, 21 February, to discuss progress or otherwise, or whether the NSWNA and/or other affected parties would seek something more specific from the Commission at that time.
So what is the fuss about?
For some thirty years, the policy for dealing with displaced or excess employees in the NSW Health Service has had at its heart the primary goal of redeployment - underpinned by priority of employment arrangements and salary maintenance provisions. Unfortunately, the proposed revised policy adopts a polar opposite approach - and is underpinned by a mandatory initial offer of VR up front if a staff member is declared excess (with the dollar value equivalent broadly speaking to that currently available).
If the excess staff member refuses this offer, they move onto a three month retention period. If at the end of this three months the staff member has not obtained placement in a suitable/equivalent vacancy, they are forcibly retrenched and receive a redundancy payout roughly HALF of the initial VR offer.
If in the alternative - for a variety of circumstances - you accept to be placed permanently against a lesser paid position, whilst you do retain a priority you can exercise for positions equivalent to your previous substantive role, you only receive salary maintenance for three months. In other words, you drop to the salary rate of the lower paid position after three months in that role.
To check out the proposed revised policy, which at this stage is only a draft from the Ministry, click on the link below. Whilst only a draft policy, it does reflect all the key (and draconian) features of the policy applied to the wider public sector last year by the O’Farrell Government without any prior warning or consultation.
Accordingly, it is a moot point as to whether the Ministry is genuinely in a position to depart radically from the path set by the NSW Government last year. Watch this space .....
Revised excess employees policy for the NSW Health Service - draft for comment (2529 KB)