Pillar Administration - Award and Pay Rise Update

In March 2008 the PSA wrote to Pillar Administration to advise of our claim for a 6.5% pay increase and an increase in employer contributions to superannuation to a level of 12% with all other existing conditions being preserved.

Despite your pay rise being due on the first pay period of July 2008, it was not until the 15 August 2008 that the PSA received a response from Pillar to our wage claim. This is problematic as Pillar already advised they believe they should comply with the NSW Wages policy which prohibits back pay.

The response the PSA did receive failed to address our claim as it does not contain a quantum for a pay increase.

Instead, Pillar's response lists a range of proposed changes to your Award. It also lists two items for proposed savings which do not require agreement but nevertheless are matters of concern for the PSA and our members.

Increase span of hours - Modify Award clause to broaden span of hours from 7.00am - 7.00pm to 6.00am 10.00pm, with no penalty rates.

Pillar has stated that this is only to apply to newly advertised roles. However it is still uncertain how this will affect ongoing staff.

Reduce the maximum accrual of annual leave - Modify Award to allow maximum annual leave accrual of 30 days.

The current maximum accrual is 50 days.

Reduce Absenteeism by 25% - average 6 days per employee per year - Modify Award to introduce a "sliding scale" evidence requirement - Current 3 or more sick days require evidence - Propose 4 single days in 12 months no evidence or 2 lots of 2 days in anyone year no evidence or 3 and more days as per current arrangement.

The current requirement is that evidence is required for any absence in excess of 3 consecutive days.

Reduce overtime by 25% - Fluctuate service levels and rotate employees to reduce necessity to work overtime, and increase skills broadening.

Reorganise 3 specific areas:

1. Current manual process via spread sheet up skill processors in new system to reduce processing time with equivalent reduction of 2 FTE.
2. Centralise pension processing - currently each fund has own people to work the allocated pension. The pool would be centralised and employees would be cross skilled across the funds. There would be an equivalent reduction of 3 FTE.
3. Currently employees have "one job" and batch process and pass on work to the next processor. Proposal to reorganise and cross skill employees, with an equivalent reduction of 8 FTE.

Members may be aware that the PSA and Pillar have attended the Commission several times in the lead up to Pillar's 'negotiating parameters' being approved.

Since approval was received, we have met twice, on the 20th and 27th of August 2008. At our meeting of 27 August, Pillar advised the PSA of the savings claimed to arise from the proposed changes. These savings were presented as raw dollar figures and a corresponding percentage figure was not provided.

The PSA has repeatedly asked Pillar to tell us the corresponding percentage figure. We have also asked that they tell us what a pay increase of 1 per cent would cost. This financial information is important as it will enable the PSA to put the raw dollar figures into an informed context. Pillar have refused to provide this information.

Pillar wants the PSA to first indicate areas for agreement on their proposed Award changes. In other words, Pillar wants members to agree to changes to the Award without having the principle question of a pay rise addressed.

This approach to negotiations is unacceptable to the PSA and we are unhappy with the continuing delay. Consequently, the PSA approached the NSW Industrial Relations Commission for assistance which was provided on Thursday 4 September.

At this conciliation Pillar were requested to provide more information. The request includes details on:

• the most current annual salary bill;
• number of employees;
• projection on how proposed increase to span of hours and removal of penalty rates will impact existing employees.

The PSA and Pillar will now meet on Wednesday 10 September where Pillar is expected to provide this information to the PSA. We are also set to report back to the IRC on 18 September.

The PSA has not agreed to any changes and we will continue to press Pillar for a pay offer.

How you can help...

We need your support.

If you haven't already done so please approach your PSA delegates with any questions you have and with your opinion on Pillar's proposed list of changes above.

Your feedback is critical to the success of our claim and to ensuring our position accurately reflects what you want.

Also, remember there's increased strength in numbers, so please pass this bulletin on to anybody you know who may not already be a member.

Non-Award Staff

Pillar have advised that the cost calculations and savings identified include everyone at Pillar not just Award staff. So if you are not on the Award and you are not a member, join today. Visit http://psa.labor.net.au/join/

Award and Non-Award staff who have not already joined.

There has never been a more important time to join the union. Your contributions at this time will directly affect the quantum of your pay rise. Make a difference, join the PSA.

Workplace Delegates:

PSA Staff:Olivia Morris and Maria Cirillo 9220 0929