All matters dealing with the future of existing staff should be taken into account in negotiations to privatise and sell government enterprises. These should be embodied as a term in the contractual arrangements with the new owner.

Where an organisation embarks upon a privatisation exercise and issues of redeployment/redundancy arise the policy position to be adopted is that no redundancy is to be paid where comparable employment is offered by the receiving organisation.

Where the disposal of the government asset does not involve an offer of comparable employment it may be appropriate to treat affected staff in accordance with the Premier's Memorandum 91-23 in relation to redundancy and redeployment. However, the specific circumstances of the privatisation proposal and contractual arrangements should be carefully considered to avoid premature use of redundancy/redeployment provisions for affected staff.

Would you please advise the Chief Executive Officers for whom you are responsible, in terms of the above.

Any inquiries on this issue may be directed to Mr P. Keene, Industrial Officer, Public Employment, Industrial Relations Service, Department of Industrial Relations, Employment, Training and Further Education on telephone 266 8128.

John Fahey
Premier

IR Unit
Date: 15 September 1992