State Water Bargaining update No. 2

On October 18 and 19, 2007, The unions met with State Water Corporation to progress negotiations on your replacement conditions and salary agreement.

At this meeting State Water presented their issues paper which identified some of the areas in which they sought change, including moving from a number of agreements to a single agreement to cover all employees; a comprehensive job evaluation process, reducing the number of allowances and simplifying the way that leave loading is paid. Another key objective expressed is to develop a common salary scale. State Water's interest paper can be read in detail on the State Water intranet site.

Proposed Restructure at State Water

State Water advised that while they are able to meet IPART's required reduction in OPEX for this financial year, they do not believe they can meet the OPEX reduction target of 14% for the next financial year and that the resourcing arrangements under the current regional structure is unsustainable. Consequently, they are considering proceeding toward implementing a functional based structure across State Water.

While Management were unable to provide details on the number of staff positions to be deleted to meet their 14% target, they have advised that staff costs equal 64% of OPEX expenditure and that State Water is currently carrying an 8% staff vacancy rate.

The PSA expects that any reduction in staff numbers would also result in an identifiable reduction in work to be performed and we expect to have that information clearly communicated through any restructure proposal. The PSA wants to be sure that our members have available all relevant information required to make the necessary assessment of the impact any proposed changes will have on your working lives.

The PSA will not be agreeing to any changes that disadvantage our members either through an unreasonable increase in workload or through loss of job security.

During our discussions, State Water agreed to the following:

• a program of no forced redundancies and to following State Government policies and practices;
• providing the unions with the information required to assess impact on work load and work responsibilities;
• a program of consultation
• consideration of the impact that drought and non drought conditions have on staff workload

Your Pay Rise and the impact of the Restructure on the current bargaining

As such the PSA has suggested that State Water consider paying staff a 4% pay rise applicable from July 1 2008 and rolling over the existing conditions of employment for a 12 month term.

This would enable all parties to concentrate our immediate efforts on the proposed restructure and the contents of a new single agreement without the pressures associated with trying to secure a payrise.

It would also demonstrate to State Water employees that Management have recognised and appreciate the additional efforts staff have made for State Water in recent times.

Employees at State Water have had to endure considerable instability and uncertainty in recent times. For instance, there has been the proposed restructure of the Coastal Dams, the ongoing Storages Review, the problems associated with the failed financial systems and until recently, the non-appointment of an ongoing CEO.

In addition to this, staff have absorbed the increasing workload pressures arising from staff freeze which State Water implemented last year. This means that many staff have worked unpaid overtime or lost flex hours and been unable to take their recreation leave in order to meet the increasing demands.

Staff have demonstrated considerable goodwill during these trying times and so the PSA believes it is now time for State Water to recognise your efforts and agree to a 4 % payrise payable from 1 July next year.

The PSA expects to receive a response to our request for a 4% pay rise at the next Enterprise Bargaining Meeting.