T9514
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TASMANIAN INDUSTRIAL COMMISSION Industrial Relations Act 1984 Minister Administering the Tasmanian State Service Act 1984 and Tasmanian Salaried Medical Practitioners' Society
Industrial dispute - salaries and bans imposed in public hospitals - salaries arbitrated - Reference Group established REASONS FOR DECISION On 30 April 2001, the Minister Administering the Tasmanian State Service Act 1984 (the applicant) applied to the President, pursuant to Section 29(1) of the Industrial Relations Act 1984, for a hearing before a Commissioner in respect of an industrial dispute with the Tasmanian Salaried Medical Practitioners' Society (TSMPS) arising out of the imposition of industrial action in public hospitals in pursuit of wage increases for salaried medical practitioners. On 30 April the President convened a hearing before myself at "Lyndhurst", 448 Elizabeth Street, North Hobart to commence at 2.00pm on Tuesday 1 May 2001. When the hearing commenced Mr P Targett appeared for the Minister administering the Tasmanian State Service Act 1984. Mr D Lowe, together with Dr T Greenaway and Dr S Day, represented the TSMPS. Mr C Willingham intervened pursuant to Section 27[1] on behalf of the Minister for Justice and Industrial Relations. In his opening submission Mr Targett explained that the application had been lodged as a result of the imposition of certain bans by the TSMPS. These bans fell into two categories. Firstly, bans relating to certain administrative procedures and, secondly, bans relating to elective surgery and appointments in specialist clinics. Mr Targett also provided the Commission with a background summary of the negotiations which had occurred following the serving of a claim by the TSMPS in the latter part of 2000 for a range of salary increases for salaried medical practitioners employed under the terms of the Salaried Medical Practitioners Enterprise Agreement 1999 [the Agreement]. Following the opening submission from Mr Lowe the hearing was adjourned into private conference with the Commission present. As a consequence of this conference the TSMPS agreed to lift all bans relating to elective surgery and out patient clinics. This outcome enabled negotiations to recommence immediately. At the request of the parties the Commission was an active participant in the ensuing process. A series of private conferences took place over the following days. A number of documents were exchanged and a substantial level of agreement was reached. Nonetheless a number of issues remained unresolved and the Commission was asked to determine these issues in accordance with Clause 14 of the Agreement relating to the Grievance and Dispute Settling Procedure. This clause reads in part:
The hearing resumed on 11 May to hear submissions in relation to these unresolved issues. Both parties indicated that they would accept the Commission's finding on these outstanding matters. Mr Targett tabled two documents. The first1 recorded the Government's position in relation to the matters which Mr Targett contended were provided for in the Agreement. The second document2 outlined the Department's proposed terms of reference for the Medical Workforce Planning Reference Group [the Reference Group]. Following preliminary submissions it was agreed that two issues remained unresolved. I now deal with each of these issues. Base Salary Rates The parties had previously agreed that the base salary rates for Salaried Medical Practitioners [excluding specialists] would be a total of 9% in three instalments between 1 February 2001 and 1 July 2002. In the case of Specialist Medical Practitioners, the position reached following the series of private conferences was that the total salary adjustment over the life of the Agreement would be 16.5%. Of this total the first two instalments, namely 1 February and 1 July 2001, had been agreed at 3% and 6% respectively. The Commission was asked to determine the quantum for the 1 July 2002 adjustment, and by inference, the 1 July 2003 adjustment. Mr Lowe said:3
Mr Lowe submitted that on this basis the deficiency was in the region of 18.5% and that the objective of the TSMPS was to:4
Mr Lowe contended that a 15% increase by I July 2002 was a crucial issue for salaried medical practitioners generally, in that it would take base salaries for specialists to a position which, whilst still falling short of rates paid elsewhere in the Australian medical workforce, would substantially narrow the gap. In outlining the Government's approach to the TSMPS claim Mr Targett said:5
Mr Targett submitted that the acknowledgement of these circumstances had led to a departure from the State Service Wages Agreement but that this in turn had6 " impacted on the forward estimates, impacted on the financial situation of the department, ... and the position we are now in is attempting to minimise further impact and the impact we are talking about is a financial one". Mr Targett asked the Commission to recognise both the substantial movement the Government had made together with the reality of the financial constraints. I recognise that both parties have moved substantially from their initial positions and I suspect the creation of the Reference Group has been a significant factor in facilitating this movement. I also accept Mr Targett's submission that there is "no real science" to what is essentially a negotiated outcome. In essence the Commission is asked to arbitrate between two competing positions within a fairly narrow band. Having regard to all the circumstances my strong recommendation is that the salary adjustment on 1 July 2002 be 6%. It follows that the consequential adjustment on 1 July 2003 will be 1.5%, having regard for the agreed "Leave Reserved" clause to apply from 1 April 2003. The details of this decision, together with the previously agreed matters, are consolidated in Appendix 1. Medical Workforce Planning Reference Group The concept of the Reference Group was an initiative of the Department during the earlier private conference process. The terms of reference for this group had been closely analysed during the conference stage and were substantially agreed at the time of this hearing. Mr Lowe said7 "the principle of that body is roundly supported by the TSMPS representatives ..." In seeking certain changes Mr Lowe said:8
Following a further proposal from Mr Targett the area of difference was reduced to one issue. Mr Lowe submitted that the purpose of the Reference Group be expanded to give it a much more precise role in addressing issues relating to recruitment and retention strategies with particular emphasis on salaries and conditions, including matters within the Industrial Agreement. There can be no doubt that a key function of the group will be to provide advice on "the medical workforce market and the medical workforce supply and demand within that market in the Tasmanian context". In commenting on the role of the Reference Group, Mr Lowe said:9
In response Mr Targett observed:10
Mr Targett went on to submit that this was a group established at a Departmental level, and that it was not appropriate to extend to it a purely industrial role which should remain the province of the Government. He said that this would not prevent any organisation from making submissions to Government on any issue including salaries and conditions. However to accept the TSMPS proposal "... is actually going one step too far in a whole of Government sense".11 I accept the submission of Mr Targett. I firmly believe that the Reference Group will have a pivotal role in addressing many, indeed most, of the issues raised by the TSMPS during these current negotiations. However the ultimate responsibility for determining the contents of the Industrial Agreement must rest with industrial partners, namely the Government and TSMPS. The Terms of Reference for the group are shown in Appendix 2. Bans All medically related bans were lifted immediately following the initial hearing on 1 May. However I understand that at least one ban relating to an administrative function remains in place. It is an integral part of this decision that I require any remaining bans to be lifted forthwith.
Tim Abey Appearances: Date and Place of Hearing: APPENDIX 1 INDUSTRIAL AGREEMENT ISSUES 1. The parties to the Salaried Medical Practitioners Enterprise Agreement 1999 will withdraw from that agreement under S61K of the Industrial Relations Act 1984. 2. The TSMPS and DHHS will enter into an Industrial Agreement under Section 55 of the Industrial Relations Act 1984 titled the Salaried Medical Practitioners Industrial Agreement 2001. The contents of the Salaried Medical Practitioners Enterprise Agreement 1999 which are at variance with the Medical Practitioners (Public Sector) Award will be incorporated in the Salaried Medical Practitioners Industrial Agreement 2001. 3. The following salary adjustments will apply for the duration of this agreement:
4. Leave is reserved to the parties to reopen negotiations not earlier than 1/4/03 in light of circumstances applicable at the time. These negotiations may result in an additional salary adjustment to take effect not earlier than 1/7/03. It will be open to the parties to seek the assistance of a mutually agreed independent mediator to assist in these negotiations. 5. Salary Aggregation and Salary Sacrifice (in accordance with Government guidelines) currently available in Schedule 2 of the Salaried Medical Practitioners Agreement 1999 will be made available to permanent salaried medical practitioners under terms to be included in he Salaried Medical Practitioners Industrial Agreement 2001. 6. Within three months Salaried Medical Practitioners (working in PBI institutions) will have access to non superannuation salary sacrifice (Salary Packaging) up to approximately $17,000 grossed up. This benefit will be in accordance with the decision by the Government to allow the Public Hospital workforce to access such a benefit by virtue of the PBI status of these hospitals. Provisions will be inserted into the Salaried Medical Practitioners Industrial Agreement 2001 to this effect.
APPENDIX 2 MEDICAL WORKFORCE PLANNING REFERENCE GROUP TERMS OF REFERENCE Purpose The Medical Workforce Planning Reference Group is an advisory body that provides strategic advice to the Agency Executive Committee on whole of Agency issues affecting the medical workforce. Role and function 1. The Medical Workforce Planning Reference Group is an advisory group established to generate ideas, identify issues and provide advice to the Agency Executive Committee, and the Secretary, Department of Health and Human Services in relation to:
2. Membership
The Medical Workforce Planning Reference Group will be chaired by the Director, Hospital and Ambulance Service. The Agency will be represented by: 3. Administrative support will be provided by Human Resource Services.
Human Resource Services will be responsible for: 4. Minutes are to be circulated within one week of the meeting being held. An agenda will be circulated at least three days prior to the next meeting. 5. Meetings are to be held bimonthly or more frequently as determined by the Reference Group. 6. Recommendations from the reference group will be taken to AEC by the Chair of the Reference Group and any resulting decision from AEC will be actioned in accordance with the decision.
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