Economy
Taswater’s $1.1 million spend on consultants … ‘Speak up and you’re sacked’ …
Professionals Australia has condemned TasWater’s spending of $1.1 million on consultants in the past year, at the same time the corporation was treating local employees poorly.
The spending details have come to light after a budget document (Download below …) regarding part of TasWater’s restructure budget was leaked this week.
However, Professionals Australia is concerned that this document does not reveal the full extent of wasteful spending and is now calling on TasWater to “come clean” about how much more money has
been spent on the organisation’s contentious restructure.
Professionals Australia’s Tasmanian Director Luke Crowley said that the spending was “outrageous” and had angered many staff who worked hard to ensure the state’s water was properly managed.
“We are extremely concerned to see such reckless spending when there is almost universal acknowledgement that TasWater’s restructure is fundamentally flawed.
“In June we discovered that TasWater had paid $280,000 to two organisations to do senior recruitment and interviews, now this new information shows that TasWater has paid almost half a million dollars to Marchment Hill, to design a new structure for TasWater.
Mr Crowley said it was “completely pointless” to pay almost half a million dollars to Marchment Hill to design a new structure.
“TasWater has a board, a CEO and a management team. It is wasteful in the extreme to engage extremely expensive international consultants when this work could be done in-house.
“There are so many questions about this restructure. In the last six months many engineers and scientists were made redundant. Today we see TasWater advertising for six project managers, 12
engineers, two scientists and nine managers. It prompts the question, have this year’s redundancies been genuine, or just a way for TasWater to avoid negotiating with staff?
“Staff are increasingly frustrated by what they are seeing and experiencing at TasWater. In a recent survey of senior staff, less than 20% of respondents felt that TasWater had sufficient internal capacity to keep the state’s water assets functioning effectively.
Download:
Taswater_Restrucuture_costs__not_including_redundancies.pdf
Professionals Australia, formerly the Association of Professional Engineers, Scientists and Managers, Australia (APESMA). ABN 99 589 872 974. We represent more than 25,000 Australian engineers, scientists and other technical professionals.
AND,
• TasWater
Internal memorandum
To: All Staff
From: Mike Brewster, Chief Executive Officer
Subject: Enterprise Agreement Media Comments
Our Ref: 14/50501
Date: Tuesday August 5 2014
As you would be aware there has been media over the last 48 hours regarding the TasWater EA process.
We are disappointed that the unions are trying to negotiate through the media and we will continue to negotiate in good faith in accordance with the Commission’s recommendations.
We are focussed on achieving an outcome for our people as quickly as possible so pay increases can be applied.
It has been particularly disappointing to see the media release today from Professionals Australia (PA) that also distributed an internal finance document containing commercial in confidence information to media outlets.
PA has again brought up issues regarding the costs of restructuring the business and the hiring of external resources to assist with the restructure. We have responded to these claims in the past and will continue to deal with these mis-truths that are damaging for all of us in the eyes of the community.
As detailed to staff and the media in past weeks, TasWater has never denied any use of external resources, including consultants in the restructure.
The restructuring of TasWater has required us to balance the need to continue to deliver to our customers while working to deliver efficiencies required in the process of merging the four former organisations. External resources were only used where we didn’t have the specific expertise needed, and to help us get through the restructure as quickly as possible to minimise uncertainty for our people.
It is concerning that PA have quoted that ‘many engineers and scientists’ were made redundant in the process and that we are now recruiting for those roles. As we are all aware our focus has always been to hold as many vacancies open to give our people the best possible opportunities for roles in the business.
What is more concerning is the leaking of internal documents to a third party which is now in the hands of the media.
Whilst I am extremely disappointed and concerned for TasWater at this breach, I am more deeply upset for all of us by this breach of trust by a colleague.
As an employee of TasWater, you may have access to a range of information about our business and activities, including information that is commercially sensitive or confidential.
You are reminded that as an employee of TasWater, you are subject to a duty of confidentiality. This duty arises at common law and may also be specifically referred to in your instrument of employment (eg your contract of employment). It is also specifically referred to in TasWater’s Corporate Code of Conduct, which applies to all employees.
Breaching this duty is a serious matter and employees who do so may be subject to disciplinary action, up to and including dismissal.
Given the seriousness of this breach I have asked for an independent investigation of this event to determine the source of the information and to be undertaken as quickly as possible.
• Att: All General, Industrial Relation and Political reporters
Media Release 5 August 2014
Speak up and you’re sacked
TasWater threatens employee’s jobs if they speak up about waste.
The Communications, Electrical and Plumbing Union (CEPU) said members are outraged that TasWater CEO Mike Brewster would threaten employees with the sack for raising legitimate concerns about money wasting.
State Organiser, Todd Lambert today described the decision to threaten workers jobs as the lowest point in any CEO’s career.
“This kind of bullying is inexcusable”. Mr Lambert said “These workers have faced months of insecurity while many jobs have been lost and now if you speak up about waste or mismanagement they want to sack you”.
The CEPU also pointed out the hypocrisy of the CEO’s letter.
“Workers have been told over and over that everyone needs to do their bit to reduce costs. Our members have tried time and time again to point out waste and inefficiency in this organisation and their concerns fall on deaf ears. Out of sheer frustration and because of their commitment to the communities in which they live, these workers are saying enough is enough and demanding the CEO explains hundreds of thousands of ratepayer’s dollars of waste.”
While TasWater are paying consultants up to a thousand dollars a day, workers are being asked to accept deep cuts to their terms and conditions of employment.
“While hundreds of thousands of ratepayer’s dollars are being squandered, this company has asked workers to accept reductions in their conditions such as less annual leave and less public holidays.” Mr Lambert said “Workers are even being told that TasWater want to ban donating blood, what century are we living in?”
“I suppose they will spend a few more thousand dollars to a consultant to conduct this ridiculous investigation.”
State Organiser, Todd Lambert
T.L. Gauld – State Secretary – CEPU Tasmania