Premier & Cabinet

Type:
Premier's Memorandum
Identifier:
M1998-24
Status:
Archived

M1998-24 Managing Displaced Employees - Relocation of Employees to Available Work

Description

This memorandum has been superseded by M2008-08 Consolidated Policy On Managing Displaced Employees and is related to M96-5

Detailed Outline

The Public Service Association and the Public Employment Office recently negotiated a settlement for salary increases to staff covered by the Crown Employees (Public Sector -Salaries June, 1997) Award. This settlement was based on agency level initiatives consistent with the Co-operative Negotiation Agenda and a copy of the signed Memorandum of Understanding is attached for your information.

One of the initiatives covered by the Memorandum of Understanding is the relocation of employees to available work. The agreed provisions have been developed to assist public sector agencies in the implementation of organisational change programs and in the management of displaced employees. The provisions provide flexibility in placing employees, in particular displaced employees, in cases where work is no longer available at a particular metropolitan or rural location.

In summary, the parties agreed that:

  • Effective service delivery requires that work be located in areas to meet community demands.
  • The employer can require an employee to relocate to available work, should work cease to be available at their current work location.
  • The job at the new location may be similar to the work previously performed or different to that previously performed by the employee at their existing salary.
  • In any case, the employee should possess the qualifications required for the other job and the work assigned to the other job is appropriate to that salary.
  • Where the work is different the employee will receive necessary support, including staff development to perform the role.

It is expected that displaced employees within the Sydney Metropolitan area may be required to transfer to suitable available positions elsewhere in the Metropolitan area. Officers in Regional New South Wales may be required to relocate where there are no suitable available positions in their current location. Employees should not however be relocated if they have a valid reason for refusing a transfer. A checklist of issues that organisations should consider in relocating employees is included in the Information Sheet attached.

These provisions are consistent with sections 50 to 53 of the Public Sector Management Act 1988.

The relocation provision for transferred officers contained in the Crown Employees (Public Service Conditions of Employment 1997) Award will also apply to employees who may be required to relocate.

Ministers are requested to ensure that these provisions are brought to the attention of all Departments and Authorities which are covered by the Crown Employees (Public Sector -Salaries June, 1997) Award falling within their areas of administration.

The services of the Workforce Management Centre will continue to be available to assist Chief Executives in the management of displaced employees.

Any enquiries on this matter should be referred to the Employee Relations Division, Public Sector Management Office, Premier's Department.

Bob Carr
Premier.

This memorandum has been superseded by M2008-08 Consolidated Policy On Managing Displaced Employees.

____________________________________________________________

INFORMATION SHEET NO 5

CROWN EMPLOYEES (PUBLIC SECTOR SALARIES JUNE 1997) AWARD

The Public Service Association and the Public Employment Office have negotiated a settlement to enable a further increase of 2% from July 1998 for staff covered by the PSA Crown Award and a process for progressing the 2% from January 1999.

The settlement is based on your agency level initiatives which are consistent with the Co-operative Negotiation Agenda and a number of initiatives of sector wide importance that will assist your organisation achieve savings. The sector wide initiatives are:

  • Office Accommodation Workspace
  • Workers Compensation
  • Relocation of Employees to Available Work

The terms of the settlement are attached to this information sheet.
The Award will be varied and a Pay Circular will be issued, soon.
Any enquiries may be directed to your client contact Officer on telephone number (02) 9228 5013.

C Gellatly
Director-General

____________________________________________________________

Crown Employees (Public Sector Salaries June 1997) Award

Overview

Following intensive negotiations over the last few days the Public Service Association and Public Employment Office have agreed on a range of initiatives on a sector-wide and agency level basis to enable a 2% increase effective from the first pay period to commence on or after 1 July 1998 and to progress the payment of the 2% effective from the first pay period to commence on or after 1 January 1999.

Sector-Wide Changes

The initiatives are:

1. Office Accommodation Workspace

The Public Service Association accepts the recommendation of the Public Employment Office that the appropriate space per person for public servants should be an average of 18 square metres per person per organisation (new offices fit outs are more likely to be around 15 square metres per person). The parties also agree that in planning individual work environments they will reflect the needs of the business and individual characteristics of the site in question (heritage and occupational, health and safety issues may be significant). Further the parties agree that in planning new fit outs of typically administrative public service work environments the space per person may be significantly less and again may significantly increase depending on needs of the business. It is agreed that appropriate and practical consultation processes need to be established.

2. Workers Compensation

The Public Service Association accepts the recommendation of the Public Employment Office that the Association enter into a Memorandum of Understanding in terms of the document dated 17 June 1998 (Appendix A). The Association in particular agrees to work with:

  • Department of Community Services
  • Department of Corrective Services
  • Department of Education and Training
  • Department of Health
  • Home Care Service of NSW
  • Department of Juvenile Justice
  • NSW Police Service

on this initiative.

3. Relocation to Available Work#

The Public Service Association accepts the recommendation of the Public Employment Office as follows:

  • Effective service delivery requires that work be located in areas to meet community demands.
  • The employer can require an employee to relocate to available work, should work cease to be available at their current work location.
  • The job at the new location may be similar to the work previously performed or different to that previously performed by the employee at their existing salary.
    In any case, the employee should possess the qualifications required for the other job and the work assigned to the other job is appropriate to that salary.
  • Where the work is different the employee will receive necessary support, including staff development to perform the role.
  • The employee will be assisted through the provisions of the Crown Employees (Transferred Officers Compensation) Award such as removal expenses and conveyancing costs incurred in relocating outside the Metropolitan area.
    To facilitate the move by an employee, organisations should consider the need for a reasonable time off work to arrange accommodation, school transfers for children and other matters. The emphasis is on assisting employees take up the job.
  • A checklist of issues that organisations should consider when assessing the impact of relocations on employees is attached (Appendix B). The employee may have a valid reason for refusing a transfer.
  • The above procedures should be undertaken with the employee affected. The employee may seek support of the union.
  • In the case of issues of unfairness or harshness rising, the employee must have access to normal dispute resolution procedures.

# This provision is consistent with sectins 50 to 53 of the Public Sector Management Act 1988.

4. Agency level Issues

Negotiations regarding the first 2% have been completed with NSW Health, NSW Police Service and the Department of Education and Training at either a sector-wide or agency level.

The Public Service Association accepts the recommendation of the Public Employment Office that agency level issues which are consistent with the Co-operative Negotiation Agenda will be progressed with agencies as a priority and urgency to address issues concerning the first and second 2% increases. In particular, the Association will meet with each of the following agencies over the next two weeks to get the process started:

  • Department of Agriculture
  • Attorney General's Department
  • Department of Community Services
  • Department of Corrective Services
  • Department of Housing
  • Department of Land and Water Conservation
  • National Parks and Wildlife Service
  • Department of Public Works and Services

All agencies will have the opportunity to have their issues progressed with the Association.

5. Monitoring and Review

The industrial parties will develop monitoring and review arrangements in support of this initiative and the further 2% from January 1999.

In relation to the further 2% from January 1999 the Public Service Association and the Public Employment Office will operate under a program to assist with the early identification and achievement of savings consistent with the Heads of Agreement.

The program will be that the parties commence discussions on 23 June 1998 and meet regularly, and wherever possible daily, until agreement is reached as to the savings for the second adjustment of 2% in January 1999. It is envisaged that these discussions will be successfully concluded before 31August 1998. Should this not be the case, either party may seek the assistance of the NSW Industrial Relations Commission.

The parties also agree that both the sector-wide and agency level savings identified in this agreement will be taken into account as part of the assessment for the second 2% adjustment in January 1999.

Crown Employees (Public Sector Salaries June 1997) Award

This Memorandum of Understanding has been duly executed on 19 June 1998.

Signed by PEO

Signed by PSA
________________________________________________________

Improving Occupational Health, Safety & Rehabilitation (OSHR) and reducing Workers Compensation Costs across the NSW Public Sector

1. A brief background of corporate Services Reform

  • Corporate Services Reform Initiative established to achieve savings and efficiency in corporate services across the NSW public sector.
  • Workers' Compensation identified as target area.

2. Why OHSR & specifically workers compensation costs is a target area for improvement

  • Spiralling costs of premiums, far above rate of wage increases.
  • Cost of workers' compensation premiums in NSW Treasury Managed Fund was $298 million in financial year 1996/1997.
  • If current trends prevail, projected annual premium for 2001/2002 will be in excess of $408 million.
  • Additional indirect costs to agencies and the community.
  • No negative impact on jobs while improving productivity.
  • A decrease in costs depends on improved performance in prevention, rehabilitation and claims management can be achieved.

3. The major cost drivers

  • Major types of injuries and accidents in the NSW public sector in 1997 were:
    • mental stress 29%
    • body stress, including manual handling 24%
    • falls, trips and slips 19%
    • other 28%
  • Agencies' performance in workers' compensation varies from poor to excellent.
  • A small number of agencies have made great improvements over the last few years, including HomeCare Service of NSW, NSW Police Service, NSW Fire Brigades, Department of Land and Water Conservation and some Area Health Services.
  • The full cash impact of improvements takes up to three years after the commencement of improvement strategies.

4. Potential areas of savings in agencies

  • Agencies with high premiums have been identified.
  • Targeted agencies will be visited over coming weeks.
  • Overall, expected savings of $11 million in 1998/99 will be achieved based on improvements in:
    • prevention
    • improved management of existing claims;
    • improved rehabilitation of staff currently on weekly payments; and
    • reduction in the severity of claims, including legal and medical costs

5. Progress to date

  • Three Year Improvement Plan has been endorsed by the NSW Government.
  • This plan to be developed in partnership with Treasury, TMF, WorkCover, PSA, Labor Council and agencies.
  • The plan is based on five key areas including:
    • Government and central agency leadership;
    • Sector-wide OHS&R policy guidelines underpinning the Three Year Improvement Plan;
    • Targeting agencies with poor claims experience and the highest cost gap;
    • Setting targets; and
    • Incentives and sanctions
  • To date, initiatives include CEO Briefings on workers' compensation, the development of indicative targets for agencies and the incorporation of OHS&R into the NSW Premier's Awards.

6. Planned next steps

  • Visits to agencies to finalise targets and agree on strategies.
  • Finalise OHS&R policy.
  • Incorporate reporting structure into HRMIS system.
  • Introduce comprehensive training strategy.

7. Suggested areas for union involvement

  • Critical dependencies is about partnership.
  • Success depends on a cooperative approach.
  • It is suggested that this approach be incorporated into a Memorandum of Understanding between the parties.

Prepared by Wendy Barett and Valerie Corbett - Corporate Services Reform Team - 17 June 1998

___________________________________________________________

Appendix B - Relocations Checklist

The purpose of this checklist is to assist organizations assess the impact of relocations on employees. It provides a process to help inform you about the affect of recommendations to relocate on employees.

(1) What is the purpose of the proposed relocation?

(2) Is the proposed relocation consistent with Government's current policies and broad objectives?

(3) Would the employees have to move house as a result of relocation?

(4) What consultative arrangements are in place to assess the potential impact of the relocation on:

a. employees; and
b. service delivery?

(5) What are the potential impacts on employees in regard to real estate, transport, re-establishment and other costs?

(6) What are the social impacts on employees' families, including education, medical facilities, job prospects and other such responsibilities?

(7) Would the potential relocation have a disproportionately higher impact on:

a. female employees;
b. employees with disabilities;
c. employees caring for elderly or sick relatives; and
d. any others with special needs or responsibilities?

(8) What is the likely impact of losing key employees as a result of proposed relocation?

(9) What is the likely impact of the proposed relocation on employees' prospects for career and personal development?

(10) Will employees have access to support facilities and services at the proposed relocation area?

(11) Has sufficient information been collected to satisfactorily assess the impact of proposed relocation, including the state of the property market?

(12) Has this information been satisfactorily analysed?

(13) Have there been any areas identified in the consultation process that require further attention?

(14) What assistance is available to employees who transfer to the new location?

(15) What is the overall cost/benefit of the relocation?

Overview

Compliance

Not Mandatory

AR Details

Date Issued
Aug 3, 1998
Review Date
Jul 5, 2016
Replaces
Replaced By

Contacts

Contact
Contact us
Phone
02 9228 5555
Publishing Entity
Department of Premier and Cabinet
Issuing Entity
Department of Premier and Cabinet