Subject
CPSU Update #6 – Cost-Cutting

Dear XXXX
Representatives from DPAC and Treasury yesterday presented the CPSU and other public sector unions with proposals on how they intend to protect the Tasmanian economy against the economic crisis. Treasury officials did little to establish the case for severe reactions like wage freezes or job losses yet these are the foundation their proposal is built on.
But we still need to see:

· That Government is exploring options and taking all necessary steps to minimise the impact on public servant’s wages and employment

· A quantification of the savings task facing the state before any strategies are implemented

Details of how much remains to be saved after all avenues of saving, other than wage freezes or job losses, are implemented.

Obviously wage freezes or job losses are the easiest way to achieve savings but we don’t need simple solutions, we need sensible strategies that look after the economy, public sector families and other Tasmanians.
Threats of wage freezes and job losses diminish confidence and aren’t in the best interests of government, workers or the community they serve.
Government representatives told us the package foregoing wage increases and increments should save 1500 jobs but they refused to speculate on how many positions would go even if the package was implemented.

Government must show CPSU Members it’s showing genuine fiscal restraint in other areas and has no other choice… but at this stage it appears set on presenting the last resort as the first and only resort.

We’ve been accused of being out of touch and not suffering with private sector workers but this accusation is unfounded and only seeks to politicise the terrible misfortune of the 280 workers at Caterpillar ( http://www.abc.net.au/news/stories/2009/04/07/2536800.htm ). Most of you work in areas with a significant level of vacant positions – jobs that are effectively gone for now – and those of you on contracts know what may well face you at their conclusion.

Despite our very serious concerns there are some good elements to the package and we’re willing to work with government to bring about sensible savings.

We’d like to hear your thoughts when you’ve read this email and the following package summary. I’ve read all the feedback so far and, while not being able to reply to everyone individually, your comments have provided the basis for all CPSU positions.

In Unity,

Mat Johnston
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Acting General Secretary
Community and Public Sector Union
(State Public Services Federation – Tasmania) Inc.
Acting Branch Secretary
Community and Public Sector Union
(State Public Services Federation – Tasmania) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Summary of Government’s Four Part Strategy as presented to unions:
1. Wage Restraint
· Will apply to all state employees including judges, politicians,
Heads of Departments etc
· Freeze salaries for 12 months as from the next increase. In most
cases this is December.
· Freeze increments progression and advanced assessment points for
18 months from 1 July 2009
· Extend current agreements by 12 months
· Presently agreed future increases paid 12 months later
· Any nexus arrangements will not continue

2. Employment Practices and Procedures
Provide greater access by employees to the following, subject to these being matched against duties no longer to be performed or job savings – full or part time:
· Leave Without Pay – Up to 2 years
· Secondments – Up to 2 years
· Reduced Hours or SSALS – Guaranteed to return to full-time
· Phased in Retirement
· Vacancy Referral Mechanism
· Possible early Retirement Packages

3. Future Wages Policy – Future Negotiations of Expired Agreements
· Freeze salaries for 12 months, including increments, from
anticipated date of effect of the increases
· Freeze increments for 18 months from 1 July
· Annual salary increases thereafter to be limited until 2010 to
1.5%
· Salary increases for 2011 and 2012 to be limited to 1.5%
· Any nexus arrangements will not continue in new Agreements

4. Identified Efficiencies – non wages, Structural Change and
Programs
· Senior Executive & SES – Includes Bands 9 & 10:
o No increase in numbers in any agency
o Assessment of all entry level SES positions to be reviewed on
vacancy to establish whether position is required
o Targeted reduction of SES offices in areas where there are
disproportionate numbers
· Management review of middle management and senior positions
including:
o General bands 7 & 8
o Professional Bands 4 & 5
· Expenditure review and budget process to identify
activities/programs to not be undertaken or deferred in each agency
· Reduce expenditure for all areas of government in the areas of:
o Motor Vehicles
o Mobile Phones
o Travel
o Entertainment