Rees Energy Privatisation Plan: Five Years Employment Protection For All Affected Employees
By Ben Kruse
USU General Secretary
Nov 13, 2009
After a long struggle the USU has finally held the State Government to account over the employment protection guarantees outlined in the Rees Energy Privatisation Plan. It has taken twelve months for the Union to have the Government's undertakings reduced to writing. With the consideration of tenders about to commence, ongoing uncertainty about key elements of the Government's promises remain a major concern for the thousands of workers employed by state owned energy corporations.
The USU campaign has finally delivered results.
Employees Staying with State Owned Energy Corporations:
State owned energy corporations will be required to provide a five year guarantee of employment to all affected employees impacted by the Energy Privatisation Plan.
Affected employees will not be required to transfer to the private sector.
The five year protection extends to a guarantee of employment, together with the preservation of conditions and rates of pay.
Affected employees are also guaranteed to receive future general award and collective bargaining increases.
Guarantees that there be no forced transfer of location of employment
Reconfirmation of the Government commitment to maintain regional employment opportunities
The guarantees will be implemented through two mechanisms.
Firstly, the Government will issue a regulation under the State Owned Corporations Act requiring energy SOCs to comply with the employment protection guarantees.
A second regulation will require each SOC to incorporate the employment guarantees into the common law contracts of employment. The terms of the contract of employment shall also include a requirement that the Union be consulted if, by agreement, the energy SOC seeks to vary the terms of the contract within the five year period.
Employees Transferring to the Private Sector:
A five year guarantee of employment
The five year protection extends to a guarantee of employment, together with the preservation of conditions and rates of pay.
Guaranteed receipt of future general award and collective bargaining increases.
Portability of superannuation entitlements including continuation of defined benefit obligations, protection of those benefits paid above the statutory 9%, ongoing Government guarantee concerning defined benefit reserve shortfalls.
The employment protections will transfer to new and subsequent owners
Preservation and portability of leave accruals
Transfer payment based on length of service; up to 30 weeks pay after six or more years
These undertakings will be included as a condition of sale, requiring private sector operators to provide contracts of employment incorporating the five year employment guarantees. The terms of the contract of employment shall also include a requirement that the Union be consulted if, by agreement, the employer seeks to vary the contract within the five year period.
Key Protection Provisions A major improvement won by the Union in the current round of undertakings is that the employment protections now extend to all affected employees, including those in generation, not just retail. This has been a key demand of the USU. Protections against forced transfers of job location are also particularly important in supporting employees and communities in rural and regional areas.
Throughout the debate the USU has insisted that employment protections be sustainable and not dependent on the goodwill of the government of the day. We have no doubt that future employers and/or governments may seek to erode the enforceability of these undertakings. Embedding the five year protections within the contract of employment creates individual rights assisting in the preservation and enforceability of these entitlements.
Bitter Sweet Victory While the protections won by the USU are significant this is a bitter sweet victory. The Government is heading down the path of privatisation despite clear flaws in policy. USU members have campaigned tirelessly and the Union continues to advocate the case against privatisation of government services and businesses. Notably, there remains a considerable likelihood that market conditions may not allow the sale to proceed.
Further Issues & Mass Meetings The Union is continuing to engage with the Government concerning the rights of employees presently employed on contract. Consultation will also occur regarding the drafting of the SOC Act regulations, ministerial directions and common law contract provisions.
The Government is also working with the USU towards developing an enforceability requirement in affected employees' contracts requiring conciliation and arbitration before an industrial tribunal where possible and legally permissible.
The Minister has noted the agreement from Unions NSW that these protections do not create a precedent for future reforms in other industries.
The USU will conduct information sessions with members over the next several weeks.
