LOCAL GOVERNMENT STRATEGIC ALLIANCES: USU Says "NO" to Separate Entities!
By Ben Kruse
USU General Secretary
Jul 29, 2008
Strategic alliances are loosely defined initiatives involving the collaboration of two or more Councils to improve service delivery and address key industry challenges such as skill shortages.
Members should be wary of Strategic Alliances in local government which involve the formation of separate corporate entities
Councils in NSW have a long history of cooperation in implementing industry reform. Councils are close to local communities and are good at pooling resources and working together to improve service delivery.
Initiatives such as Regional Organisations of Councils (ROCS), rural weights and loads groups, and regional library services are just some examples of effective strategic alliances that are commonly found in the industry.
Traditionally strategic alliances have involved the voluntary collaboration of Councils and their workforces. Voluntary strategic alliances generally do not have a negative impact on jobs, working rights, employment security and conditions of employment.
The USU has supported and will continue to support positive strategic alliance initiatives that do not undermine the employment rights of Local Government workers.
The Danger of “Separate Entities” However, USU members should be aware that the debate about strategic alliances is now entering a new phase. Some industry stakeholders, particularly the Department of Local Government, are rethinking strategic alliance models in a way which could threaten Local Government employment.
A recent draft discussion paper prepared by the Department of Local Government Workforce Relations: a Critical Component in Effective Collaboration Between Councils raises the possibility that strategic alliances could be used to transfer employees out of Local Government employment into separate corporate entities.
The rationale behind the “separate entity” strategic alliance model is confused. It is hard to see how the formation of a new corporation which is not a Council, is not directly accountable to rate payers and duplicates administration and management resources provides a more effective service delivery model.
Indeed, setting up new corporations raises the prospect of “jobs for mates” and creates multiple risks including business failure and institutionalised corruption.
Loss of Employment Rights For employees the formation of Local Government corporations can be potentially disastrous. Employees forcibly transferred into or engaged by such entities would lose the security of employment and bargaining power associated with Local Government employment.
Of real concern is the fact that employees engaged by Local Government corporations would lose the protection of both the State Award and the Local Government Act. This would be disastrous - the industrial problems associated with redundancy, salary systems, wage increases and conditions for Local Government corporations are endless.
USU Lobby The Department of Local Government draft Discussion Paper remains at an early stage of debate. The USU has brought our concerns to the attention of the Minister for Local Government, Paul Lynch. General Secretary Ben Kruse, together with members of the USU Management Team will also attend a Departmental forum on 31 July to press home the fact that the “separate entity” approach to strategic alliances is just not on!
The USU will lobby and campaign to protect members from any adverse affects of Local Government corporations. The Union will work to ensure the strategic alliances are implemented in a true spirit of positive reform.
Should you become aware that your council is considering the establishment of a separate entity, contact the USU immediately.
