Board Awareness of Human Resources Industrial Relations Strategic Matters Presentation to Mutuals Audit Governance Pr

1. Board Awareness of Human Resources & Industrial Relations Strategic MattersPresentation to Mutuals Audit & Governance Professional Institute16 Annual Conference Sydney 2-3 October 2008

2. Understanding the Legislative Framework and what is changingAndHR Strategies to meet these changes

3. Legislative Landscape 1988 Industrial Relations Act (Cth) 1992 Credit Union Award (Vic, NSW,ACT) 1996 (Dec) Workplace Relations Act (Cth) 1996 New Credit Union Award 2005 (Mar) WorkChoices Introduced 2007 (May) Fairness Test Introduced 2008 (Feb) AIRC commences Award Modernisation 2008 (Mar) Changes to Workplace Relations Act - Transition to �Forward with Fairness�

4. What Changed under WorkChoices? Spelt the end of the State IR Systems Introduction of the Fair Pay Commission Australian Fair Pay and Conditions standards Focus on AWAs Fairness Test introduced Online Agreement making More options for agreement making Tightening of Right of Entry powers

5. Amendments To WorkChoices Legislation passed in March this year Transition to �Forward with Fairness� Act We will not see major changes until 2010 WorkChoices as we know will remain largely intact Changes will be slow and inremental

6. First Round Changes Amends only a small part of the Legislation No new AWAs ITEAs introduced - very short life span - to Dec 09 Revised �No Disadvantage Test� New rules for making and terminating Agreements Award Modernisation commenced Feb 08- Finance & Investment Services award comparisons now underway

7. No Disadvantage Test Applies to Agreements and ITEAs Assessed by Workplace Authority Director Done at the time of lodgement and employer notified if Agreement fails Agreements and ITEA�s only start 7 days from date they pass Test is based on the overall conditions of Agreement or ITEA compared to those of a nominated award

8. Changes in 2010 10 National Standards to be introduced As part of the award modernisation process they will contain only 10 �allowable matters� The Government is to have all IR matters under 1 banner - FairWork Australia (includes the AIRC)

9. What are the new National Employment Standards? 38 hours per week The ability for parents to request �more� flexible working arrangements Parental Leave Annual leave Personal/Carers and Compassionate leave Community Services leave (SES etc) Long Service Leave Public Holidays Notice of termination and redundancy Fair Work information statement

10. Allowable Award Matters Min wages, classifications & incentive payments Employment types, shift & flexible working arrangements Overtime Penalty rates Annualised salary/wage arrangements Allowances Leave and loading Superannuation Dispute settlement procedures

11. What does all this mean for employers? Awards will be restricted to the 10 matters Segment or industry type awards may become more generic This process has started - FSU has made submissions to the AIRC There will be continued emphasis on Agreement making - FSU is already active

12. What initiatives have been introduced? More flexible LSL arrangements including cashing out Part cashing out of accrued annual leave Notional weekends - 7 day trading New classification structures Performance based pay structure Paid parental leave After hours training Flexible working arrangement - work life stlye balance

13. Human Resources Strategies In today�s complex employment landscape, employers should be aiming to: Identify, recruit, train, develop and retain a talented, diverse and motivated workforce And ensure that recruitment and retention strategies are those aimed at reducing the loss of employees the organisation does not want to lose

14. Human Resources Strategies Employ an effective selection & recruitment process - �right person � right job fit�- key to success - Recruitment Policies - Position descriptions - Money? Know what the position is worth - Recruitment process � Outsourced? In-house? - Selection criteria � who makes the decision - Visible costs of replacement between 50%-150% of annual salary

15. Human Resources Strategies Effective Induction Program Giving a consistent perception of the organisation Mentoring plan Coaching plan Communications plan Plan to review performance regularly and give feed back

16. Human Resources Strategies Training and Development Ensure that a policy exists that at least formal performance review is undertaken yearly Helps to identify training/development gaps Process needs to contribute to a balanced and realistic feedback Work with staff to develop a career path which will help them with achieving job satisfaction Process should work to differentiate , reward & manage staff performance Personal development/career advancement

17. Human Resources Strategies Reward & Recognition - Both have significant impact on performance & development -Industry minimums may not be enough to both attract and retain as they don�t recognise the complexity of many of the jobs - Research the market

18. Human Resources Strategies Work/Life Balance - flexible hours - flexible employment contracts - carer responsibilities - flexible leave arrangements - job-share arrangements