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T1420

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

 

T1420 of 1988

IN THE MATTER OF AN APPLICATION BY THE POLICE ASSOCIATION OF TASMANIA TO VARY THE POLICE AWARD

   
 

RE: SECOND TIER INCREASE TO SALARY RATES

   

PRESIDENT

29 June 1988

   

REASONS FOR DECISION

   

APPEARANCES:

   

For the Police Association of Tasmania

- Mr G. R. McDermott

   

For the Commissioner of Police

- Mr C. Willingham (15.10.87)
  with
  Inspector R.S. Ames

   

DATE AND PLACE OF HEARING:

 

27.6.88   Hobart

 

In this matter the Commission is asked to approve an agreement between the Police Association and the Commissioner of Police.

The agreement addresses the 4 per cent second-tier component of Principle 1 (Wage Adjustments) and embraces Principle 3 (Restructuring and Efficiency) with respect to proposed changes to both work and management practices.

During proceedings a catalogue of agreed offsets was identified and discussed. Those items that were capable of being costed in real terms were identified while others that were not capable of being costed precisely were also considered.

The gross cost of the exercise was assessed at $1.14 million for a full year. This figure included shift penalties but excluded allowances and other -extraneous payments which would not be affected.

Unfortunately offsets that were capable of being costed in more or less precise terms only amounted to approximately 50 per cent of the total cost. Nevertheless it does appear that this figure may well have been somewhat understated. Be that as it may, any such shortfall in costing would not balance the ledger to the point where the entire proposal was cost neutral.

Furthermore, Mr. McDermott gave notice to the Commission and to the controlling authority that the Association would, in due course, seek to obtain from the Commission or the controlling authority, by agreement, some reimbursement of Government costs relating to noncash mode of salary payment. In this regard he would rely upon what the Commission might be disposed to grant to the Public Service Association which has already prosecuted a $17 per annum claim for what the Police Association might, fatuously perhaps, choose to describe (albeit in a different context) as the "civilian" workforce. That matter is awaiting the decision of a Full Bench.1

Mr. Willingham observed that the agreed offset claimed by the Association for the item "direct banking of salaries" was of the order of $8,400 per annum. The cost of a $17 per annum salary adjustment intended to reimburse individuals for Government costs associated with direct banking would be in excess of $17,000 per annum - effectively twice the cost offset.

However that may be, I have formed an opinion that greater utilization of non-police officers in the system, as agreed to by the Association, could well save many thousands of dollars in the fullness of time. For example, for each non-police officer appointed to a position previously held by a member of the Association there would be an immediate saving of at least two weeks' annual leave per annum. There would of course be other additional savings, such as the cost of a uniform or a uniform allowance. Already some 38 positions have been identified as those that could be filled by persons other than police officers.

In the decision on the 38-hour week case2 I foreshadowed the likely difficulties confronting the Association in finding sufficient genuine cost offsets with which to bargain for a 4 per cent second tier adjustment.

In that case I formed an opinion that the Association had perhaps contributed more in the way of offsets than any other State employee organisation, bearing in mind that custom and practice appeared to suggest that in not all cases was full cost neutrality required.

The Commission's dilemma therefore is that in the instant case the Government has not insisted upon full cost offsets. I am of the opinion that this is only fair in the circumstances. Nevertheless the Commission must decide whether, in the light of this, it will approve a full 4 per cent, or something less.

This is not an easy decision, bearing in mind the decision of the Australian Conciliation and Arbitration Commission in the 1987 National Wage Case.3 It is even more difficult having regard for the fact that, with one exception, this is the last major group of non-private employees yet to enjoy a second tier adjustment. All others have had 4 per cent. In each case there has not been full cost neutrality. In every case there has been agreement for a 4 per cent adjustment.

In coming to a decision on the matter I have decided to grant the claim on equity grounds. I have been influenced by the fact that the totality of cost offsets offered up by the Association in both the 38-hour week matter of some four months standing and yet to be enjoyed by members, together with the offsets identified in this matter, represent in toto perhaps the most significant number of restructuring and efficiency items given up by one employee organisation. Moreover, all of those offsets affect the same employees and the same agency. In the main State Service case4 a considerable number of agencies were directly or indirectly affected by a standard number of offsets. This means that not all employees in all agencies were equally affected.

The agreement. having been examined by the Registrar will be ratified with effect from the beginning of the first pay period commencing on or after 27 June 1988. It shall remain in force for a period of three years.

Appendix A sets out, for information, the offsets given up in the 38-hour week. Appendix B identifies the offsets agreed to in this matter.

Stated another way, individual departments were affected to a greater or lesser degree, depending upon the nature of their activities and the classes of employees attached to each agency. In this case, as I have said, all the offsets affect, for the most part, all the members in the one agency.

L.A. Koerbin
PRESIDENT

APPENDIX A

T.957 of 1987:

AGREED OFFSETS

38-HOUR WEEK

1. Payment of wages by non-cash mode

2. Qualifying distance to claim meal allowance to be increased to 60 kilometres

3. Issue of ties to be annually - shoes every 18 months

4. Uniform issues to be twice every triennium

5. Higher duty allowance qualifying period to remain at more than 7 days until 1.4.1990

6. The present 8-hour day to continue to be worked with only 10 and not 12 days annual accrual of extra time to be taken in conjunction with recreation leave, after 1.1.89

7. Recall when on "blocked leave" to be paid for actual hours worked up to and including 4 hours at double time with no further entitlement. For recall involving more than 4 hours, the day is to be treated as an ordinary working day with one day recredited

8. 1/40th divisor used in calculating overtime rates to remain until 1.4.1990 when it shall be reduced to 1/38th

9. Notwithstanding item 5, no higher duty allowance will be paid to as member for relieving another member on "block leave" which shall be paid for at ordinary and not "projected" shift rates

10. Operative date for commencement of shorter working week shall be 1.1.88 - not 1.10.87 as earlier agreed.

APPENDIX B

T.1420 of 1988:

AGREED OFFSETS

4% SECOND TIER RESTRUCTURING AND EFFICIENCY ADJUSTMENT

1. Non-police personnel

2. H.E.C. Subsidy - Single men's quarters, West Coast

3. Payment of Drivers' Licence Renewals

4. Police Academy - Overtime for Study and Training

5. Police Academy - Supervision shift

6. Police Academy - Camp allowances on training

7. Promotion Appeals Board election

8. Payment of salaries to be by direct deposit

9. Sick Leave Bank

10. Trainee Constables - Station attachments

1 T1328 of 1988
2 T957/958 of 1987
3 HO100
4 T1119/1120 etc. of 1988