North Sydney Council pleads financial crisis: Proposed freeze on salary bonuses and performance progression
By Ben Kruse
USU General Secretary
Jul 1, 2009
USU delegates, officials and General Secretary Ben Kruse met with Council management on 29 June in response to Council's request for a freeze on the payment of salary bonuses and deferral of performance based salary progression for a period of 12 months. "The union is quite concerned about the situation at North Sydney" said General Secretary Ben Kruse. "Despite the relative affluence of this local government area, politics and poor financial planning has led to North Sydney Council rates being the lowest in the metropolitan Sydney basin. While it is extraordinary that Council finds itself in this position we cannot allow this to impact negatively on jobs or wage progression." The Union is also concerned that Council is proposing significant reductions in services to the local community.
The streetscapes together with the civic, social and community services of North Sydney are of a high standard. USU members at North Sydney Council perform an excellent service. North Sydney council workers are not by any means overpaid with the council salary budget positioned strategically within the third quartile for Sydney metropolitan councils.
Council's Proposal Council has approached the Union offering two choices.
Option 1: Involves the Minister for Local Government approving a special rate variation of 13.6% together with the cutting of 11.5 full time equivalent staffing positions.
Option 2: Involves no rate increase over the capped annual rate and would see the cutting of 23.8 full time positions together with a reduction of $1 million from the capital works budget and other savings of 2.5 million dollars per annum.
Proposed Salary Progression Freeze Regardless of which option is implemented, management have advised they are not in a financial position to proceed with the payment of salary bonus payments and performance progression payments within Council's salary system. Unusually, and contrary to State Award regulation, Council is seeking approval from the union to implement these arrangements on a retrospective basis for the last financial year.
Council have clarified that the 3.2% general wage increase due on 1 November 2009 shall be paid.
Union Consultation The USU will be consulting with employees and members over the next fortnight to develop a response to Council's proposals. Union officials and local delegates will conduct informal discussions with employees across council work areas and vocational groups over the next fortnight.
In the meantime the Union has asked Council for a range of financial and other information in an effort to identify alternatives for expenditure savings, including the ceasing of contract work where possible. The Union has also demanded that council provide a copy of the organisation structure identifying all vacant positions and that regular consultation occur regarding such vacancies. No positions are to be deleted from the structure without the endorsement of the elected council. Under no circumstances should there be forced redundancies.
The Union will also seek to meet with the elected councillors and the Minister for Local Government to recommend reforms to improve Council's overall financial position.
What Should We Do? It is important that all employees at North Sydney Council discuss this issue with the Union. Should jobs be cut and if so how many jobs and in which areas? How should council address the issue of the low rate base?
Your USU Contacts If you have any queries please contact your local delegate or USU contact as follows:
Ray Della Pietra (Fleet Services) David Wright (Parks & Gardens) Simon Ocrame (Waste Services & Cleansing)
Salary Staff - we need YOU! The USU is conducting an election for a delegate or contact for the Salary staff - it is important that you are represented - why not nominate on the form that was emailed out last week or contact the USU support team on 1300 136 604.
