Equal Remuneration Implementation Project

IntroductionThis is the first of what will be a number of communications over the next six months relating to the implementation of Fair Work Australia’s Equal Remuneration Case.All of us are very pleased that the contribution and historic low wages of the community sector have been acknowledged by Fair Work Australia (FWA) in this decision. The work now is for all of us, community sector and government, to be clear about what the exact cost implications are of the decision.These newsletters will be issued by the Equal Remuneration Implementation Steering Committee; made up of Government and Community Sector representatives who met for the first time on Wednesday 6 June 2012.

BackgroundAs you are aware, the Australian Services Union and four other unions lodged an application for an equal remuneration case with Fair Work Australia (FWA) on 11 March 2010. On 1 February 2012, Fair Work Australia handed down its decision on the Equal Remuneration Case. The

decision outlines percentage increases against the modern award between 19-41 per cent, with a 4 per cent loading, to be paid in equal instalments over nine periods from 1 December 2012.The Department of Health and Human Services (DHHS), being the largest funder of the community sector in government, has established an Equal Remuneration Implementation Project. The main objective of the Project is to analyse the impact of the FWA decision on the community sector and provide advice to the Minister for Human Services and the Treasurer on the implications of the Order. The Tasmanian Government has allocated an additional $3 million in next year’s budget increasing to $12 million in 2015-16 towards the cost of the FWA decision.The commitment of Commonwealth and Tasmanian governments to increasing funding in line with this decision demonstrates our support for a more equitable salary structure that recognises the value of the work being done by the industry.

Communiqué No. 1

This project is not about moving to

the Modern Award, we are assuming

you will have completed that

transition by 1 July.

Governance structureA joint Steering Committee has been established with representation from DHHS, the Department of Premier and Cabinet and the Community Sector. Our role is to oversee the project work and ensure that the decisions around allocations of funding increases occur in a transparent and equitable manner. Within DHHS the Project Sponsor is Mercia Bresnehan, Deputy Secretary for Disability, Housing and Community Services and the Project Manager is Kylie Dunn. A full list of Members of the Steering Committee is included in attachment A.A Working Group has also been established, to conduct the tasks required for the project. This group is also a joint initiative between DHHS and the Community Sector, membership is included in attachment A.

Project tasksIt has been agreed that the only way to fully understand the financial impact of the Equal Remuneration Order on government and the community sector is to gather detailed information about organisation’s funding and workforce structures.The Steering Committee has agreed that a survey be conducted of community sector organisations in late

July, early August to support this requirement.The survey will be developed by the Working Group over the coming month, and some organisations will be approached in late June to validate the survey questions.

Project timelinesThe project will need to provide the Grants Unit within DHHS with detailed information regarding the funding increases for each community sector organisation by mid-October, to allow for adjustments to be made to Funding Agreements to support the first wage increase due on 1 December 2012.It is vital that organisations respond to the survey in a timely manner so the Working Group can meet timeframes, and increases can be paid for the Equal Remuneration Order start date.

Fair Work Australia’s Final OrderAs you may be aware, a meeting was held on Friday 8 June before a Full Bench of Fair Work Australia to finalise the Order for the Equal Remuneration Case. At the time of writing this communiqué the result of this meeting has not been advised.

Translating to the Modern AwardOrganisations should have already commenced their process to translate staff to the Modern Award MA000100 – Social, Community, Home Care and Disability Services Industry Award 2010. These translations need to be in effect for 1 July 2012, to ensure that all staff receive appropriate remuneration outlined in the Modern Award.The Equal Remuneration Implementation Project survey will require organisations to have completed the translation process, as it will be taking staff from the Modern Award rates, as at 1 July 2012, to the increased rates outlined in the Order.If you have not yet translated your staff, or have no process in place to do this by 1 July 2012, you need to start now as it is not a simple process.

Contact details

If you are unsure about the translation process, you should contact Dale Rahmanovic at TasCOSS 6231 0755 or dale@tascoss.org.au; David Clements at NDS 6223 6086; or contact your industry peak body to provide you with information on your obligations. To clarify any matters in relation to the Equal Remuneration Implementation Project you can contact the Steering Committee members relevant to your sector, listed in attachment A.This is a very important process and we are relying on your support to help us get it right.Regards

Mercia BresnehanEqual Remuneration Steering Committee ChairDeputy Secretary - Disability, Housing and Community Services

Communiqué No. 1Attachment A

Equal Remuneration Implementation ProjectSteering Committee membershipMercia Bresnehan – Deputy Secretary, Disability, Housing and Community Services (DHHS)

Penny Egan – Chief Financial Officer (DHHS)Jo White – Manager, Community Sector Relations Unit (DHHS)Jane Fitton – Manager, Industrial Relations (DHHS) Phil Baker – Manager, State Service Industrial Relations, Public Sector Management OfficeTony Reidy – Chief Executive Officer, TasCOSSJann Smith – Chief Executive Officer, Alcohol, Tobacco and other Drugs Council TasmaniaPattie Chugg – Executive Officer, Shelter Tasmania David Clements – State Manager, National Disability ServicesJohn Hooper – Executive Officer, Tasmanian Association of Community Houses

Working Group membershipKylie Dunn – Manager Strategy, Performance and Information (DHHS)Mark Pitt – Senior Consultant, Community Sector Grants Mgmt Team (DHHS)Annie Curtis – Manager, Disability and Community Services South West (DHHS)Todd Sales – Employee Relations Consultant, Care Reform (DHHS)Shane Bond – Cost Analyst, Finance and Business Performance (DHHS) Dale Rahmanovic – Industry Development Unit, TasCOSSJane Jeppson – Operations Manager, COTA TasmaniaLynne Maher – Workforce Development Officer, Alcohol, Tobacco and other Drugs Council Tas.Tim Gourlay – Executive Director, CentacareMandy Clarke – Executive Manager - Corporate Strategy, AnglicareJohn Stubley – Chief Financial Officer, Optia Inc. and Treasurer, Shelter Tasmania

Phone numbers for Peak bodiesAged and Community Services Tasmania 6231 3100Alcohol, Tobacco and other Drugs Council (Tas) Inc 6224 7780Council on the Ageing – COTA (Tas) 6231 3265Family Support Services Association 6223 6888Mental Health Council of Tasmania 6224 9222Multicultural Council of Tasmania 6231 5067National Disability Service 6223 6086Shelter Tasmania 6224 5488

TasCOSS 6231 0755Tasmanian Association of Community Houses 6228 6515Volunteering Tas 6231 5550Youth Network of Tasmania 6223 5511