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T880

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

 

T.880 of 1987

IN THE MATTER OF AN APPLICATION BY THE MINISTER FOR PUBLIC ADMINISTRATION TO VARY THE OFFICERS OF THE STATE FIRE COMMISSION AWARD

   
 

TO AMEND THE TERMINOLOGY TO ACCORD WITH THE STATE SERVICE ACT 1984, AND TO DELETE OLD AND INSERT NEW CLASSIFICATION

   

ACTING PRESIDENT

26 AUGUST 1987

   

REASONS FOR DECISION

   

APPEARANCES:

   

For the Minister for Public Administration

- Mr F. D. Westwood
  with
  Mr J. D. Stewart

   

For the Tasmanian Public Service Association

- Mr N. Buchanan

   

DATE AND PLACE OF HEARING:

 

14.8.87  Hobart

 

The application on behalf of the Minister for Public Administration seeks to:

(1) Correct outdated and inaccurate references in the Officers of the State Fire Commission Award to the now defunct Public Service Board, and the Fire Services Act 1979, which has been altered by legislation;

(2) Delete from the award the redundant classification of "Secretary";

(3) Insert a new classification of Director (Finance and Administration) at a salary of $45,670 per annum;

(4) Amend Clause 8, Salaries, by extending 2(a) Clerical Officer scale beyond the existing maximum of Class X, to Class XV. This would increase the maximum award salary from $32,215 to $39,439;

(5) Insert a suitable supersession and savings provision and renumber award provisions as a consequence.

All of the changes as detailed in the application were consented to by the Tasmanian Public Service Association. Apart from items (3) and (4), the matters submitted are considered consequential upon either legislative changes or re-organisation of administrative arrangements which followed such change.

Accordingly I do not intend to dwell upon items (1), (2) and (5), but simply indicate that I endorse such tidying up of the award which is long overdue.

Item (3), insertion of a new classification of "Director of Finance and Administration" was the subject of considerable evidence. It was submitted that the proposed variation in this regard is both urgent and necessary. A summary of the arguments advanced in support of the proposal covered the following:

A. BACKGROUND

In October 1984 a position paper relating to a review of the administration and financial management of the State Fire Commission was forwarded to the Minister for Police and Emergency Services.

Subsequently a review was conducted by the Public Service Board which produced a number of recommendations and concluded that:

"The recommendations contained in this report affirm a general agreement that the current staff structure does not allow for acceptable levels of control to be exercised over the processing of accounts, purchasing of stores functions or investigation of expenditure and budget variations.

The proposed re-organisation structure would allow the performance of the Accounts Department to be elevated to an acceptable standard and provide financial and statistical data needed to further improve the financial control of the State Fire Commission."

In the Auditor-General's report for the financial year ended 30 June 1986, at pages 156-157, the following comments were made in relation to the State Fire Commission's position in 1984/85:

"State Fire Commission

The audit of the Commission's accounts in recent years has presented difficulties due to the standard of accounting and to deficiencies in internal control. The Commission has been unable to prepare financial statements in accordance with legislative requirements, and statements have not been substantiated by supporting documentation."

This position was followed by a further comment concerning the status at the date of preparation of the report:

"Improvement is anticipated following appointment of new staff. Accounts for 1985-86 have been prepared in accordance with legislative requirements."

In his report to the Minister on 1 October 1984, Commissioner Stewart stated:

"In order to strengthen the corporate management process of day-to-day running of the Commission's affairs, it is intended to establish an Executive Committee comprising of the Chairman and the three senior officers of the Commission, the Director of Urban Brigades, the Director of Country Brigades and the Manager (Finance & Administration). This will allow a regular and consistent high level of interchange between the three functional areas and allow a more comprehensive form of presentation of information and recommendations to meetings of the Commission."

The corporate management process was put into effect immediately following the appointment of the Manager (Finance and Administration) in May 1985.

B. CURRENT SITUATION

The effectiveness of this corporate approach on the management of the Fire Service over the past two years has been evidenced by the following -

  • the markedly improved Auditor-General's Annual Report relating to the financial year 1985/86;

  • strengthening of financial and administrative controls;

  • implementation and presentation of financial statements in accordance with the accrual concept of accounting;

  • development of a Budget Manual and strengthening of the management of budgetary processes;

  • improvement in the level of staff morale and output; and

  • major progress towards achieving the Commission's medium and long term objectives.

However, the award was never varied to accommodate the appointment of the Manager (Finance & Administration).

On 1 May 1987, the incumbent left and took up a new position as Deputy Director, Department of Sea Fisheries.

His departure from the State Fire Commission placed the Authority in a critical situation with regard to its essential administrative and financial support requirements at a time when major initiatives for change and enhancement to administrative, financial, industrial and operational functions are in progress.

A submission to the Minister for Police and Emergency Services that the position of Manager (Finance & Administration) be redesignated Director (Finance & Administration) and be reclassified within the range of an Administrative and Clerical Class XIX/XXI level, was discussed with the Minister for Public Administration who recommended that the matter be pursued with the Department of Public Administration. On the advice of that Department, the matter of the establishment of this position and its classification within the Officers of the State Fire Commission Award has been brought before the Tasmanian Industrial Commission.

C. CLASSIFICATION CONSIDERATIONS

The following facts were put forward in support of the wage level proposed for the classification of Manager (Finance & Administration):

The classification of the Director of Urban Brigades and of the Director of Country Brigades is equivalent to Grade 6 Head of Department and that of the two Deputy Directors of Brigades is equivalent to an Administrative and Clerical Class XIX, which is four (4) grades above that of the Manager (Finance & Administration). Although the Manager (Finance & Administration) is not a prescribed member of the State Fire Commission, he is in attendance on the Commission at all of its meetings and is required to accept an equivalent level of responsibility and accountability in areas of policy determination as is expected of the two Directors. This is particularly so in the following areas -

  • budget policy;

  • financial forecasting;

  • stores policy;

  • property policy;

  • personnel management;

  • industrial relations;

  • administrative and information systems;

  • secretarial services.

The Manager (Finance & Administration) is also Head of the Administration and Finance Division which is responsible for the administration, accounting, stores, personnel and property functions of the state-wide Fire Service. This Division provides these support functions for the Tasmania Fire Service. There are four permanently-manned urban brigades, 31 volunteer, partly-paid urban brigades and 300 volunteer country brigades state-wide.

It was submitted that the level of responsibility and accountability, and formal qualifications and experience required to effectively fill this position warrants its classification to be equivalent to an Administrative and Clerical Class XIX level. It was considered that any lesser classification will not attract applicants of the required calibre. Alternatively, incumbents of the quality of the previous office holder naturally will be attracted to more senior positions resulting in unacceptable turbulence in a critical area of the Commission's operations.

For uniformity and organizational appropriateness it was also recommended that the position be designated Director (Finance & Administration). This, it was claimed, would more clearly and accurately reflect the level of responsibility vis-a-vis the Directors of Brigades.

DECISION CONCERNING CLAIM FOR NEW CLASSIFICATION OF DIRECTOR (FINANCE & ADMINISTRATION) AT A SALARY OF $45,670 PER ANNUM

This claim is not for a wage increase for an existing classification. Nor is it for a reclassification matter.

What is proposed is the creation of a new classification within the award following a radical management re-organisation; a substantive expansion of the State Fire Service to co-ordinate rural and urban fire services; and a need to improve fiscal and associated control following the comments of the Auditor-General in his official report.

The Wage Fixing Principles applying from 10 March 1987 stipulate in the preamble, at page 1, that:

"In considering whether wages and salaries or conditions should be awarded or changed for any reason either by consent or arbitration, the Commission will guard against any contribed arrangement which would circumvent these principles. The Commission will also guard against any principle, subject to the second tier ceiling, being applied in such a way as to become a vehicle for general improvement in wages and conditions."

I am quite satisfied on all of the evidence before me that the circumstances are genuine and the creation of a new, very senior position is a necessity, and that it is within public interest that the award be varied by making provision for the new classification concerned.

There is certainly no reason to believe that the variation sought could possibly become a vehicle for other general improvements in wages or conditions.

Principle 12 - First Awards and Extension to Existing Awards provides as follows:

"(b) In the extension of an existing award to new work or to award-free work the rates applicable to such work will be assessed by reference to work already covered by the award."

I believe this part of the Principles has relevance to the present case, and that the position and salary sit comfortably with the level of responsibility and skills required for the position.

In this regard I have also had regard for the enormity of the State Fire Service budget encompassing, as it does:

Personnel

· Permanent - 411 (Uniformed 356, Non-Uniformed 55)
· Urban Volunteers - 958
· Country Volunteers - 10,029(+/-)

Buildings (including fire stations and administration, workshops and training buildings)

· Total number - 136
· Replacement Value - $7.9m (approx.)

Vehicles (including firefighting appliances and administrative/ technical vehicles)

· Total number - 758
· Replacement Value - $17.0m (Approx.)

Extensive detail was supplied concerning the functions; primary tasks; level of responsibility; effort and skill; work environment; qualifications and organisation ability required.

I am satisfied in all of the circumstances that the claim meets all proper relevant criteria, and the claim is therefore granted and the award will be varied accordingly.

DATE OF OPERATION

This variation, together with the consequential matters, will apply as from the beginning of the first pay period to commence on or after 26 August 1987.

The remaining items, claim No. 4, the extension of the existing Clerical Officers' scale in Clause 8, is held over for the time being. The reasons for this are two-fold, i.e.:

(1) The need to give urgent priority to the other substantive award matter; and

(2) Insufficient detailed evidence was supplied at the hearing.

This matter will be relisted for further hearing and possible inspections at a mutually convenient date.

 

A. Robinson
ACTING PRESIDENT