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ADF Workplace Remuneration Arrangement (WRA) 2009 – 11

ADF Workplace Remuneration Arrangement (WRA) 2009 – 11. ADF Consultation Brief Commander Jim Clough Directorate of Military Salaries and Allowances – Policy People Strategies and Policy Group. What is the purpose of this briefing?.

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ADF Workplace Remuneration Arrangement (WRA) 2009 – 11

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  1. ADF Workplace RemunerationArrangement (WRA)2009 – 11 ADF Consultation Brief Commander Jim Clough Directorate of Military Salaries and Allowances – Policy People Strategies and Policy Group

  2. What is the purpose of this briefing? • To explain the ADF wage setting environment and establish the WRA context. • To outline the specific details of the ADF WRA 2009-11. • To answer your questions. • To measure your support for the WRA.

  3. WRA context • Hierarchy of policy. • White paper. • WRA is part of the total conditions package offered to ADF members.

  4. Constituent Elements • WRA – global pay increases • Structural Reviews (s58H) – GOPS and GORPS • Pay Related Allowances (s58H) • Retention/Completion Bonuses (s58B) • Non financial conditions of service

  5. WRA: Establishing the context: It is part of a Comprehensive Brand Promise • The Brand Promise includes: • Pay • Pay related allowances (eg. Service, Field, Seagoing, Flying etc) • Retention/Completion Bonuses • Other allowances (eg. Locality, Clothing, Travel, meals etc) • Superannuation • Leave • Medical • Housing benefits • Removals • Family support • Compensation and benefits on illness or death • Career transition schemes • DEFWEB Portal Essentials: • Pay and Conditions • ADF Publications • Members Guide to ADF Pay and Conditions of Service in Australia

  6. How does the WRA fit in the Brand Promise? • The ADF WRA is the military version of workplace bargaining. • It provides the across-the-board pay rises over a specified period (usually 2 – 3 years) • Requires improvements in productivity and efficiency. • Confined to pay and pay related allowances only.

  7. Within the Brand Promise Context The WRA does cover:

  8. WRA misconceptions • The WRA does not specifically review: • Allowances structure and amount. • Warlike and Operational Conditions of service. • Conditions of service covering special nature of military service • Placement within the pay grades. • Any other condition of service.

  9. The WRA takes account of: • Defence global productivity and Organisation Savings. • Pay trends in the Australian workforce. • What the organisation can afford. • Economic circumstances (the budgeting environment). • The DeCA.

  10. Changed Economic Circumstances • WRA 2006-2009: • Commodities boom. • Unemployment falling. • Budget surpluses. • Strong economic growth. • WRA 2009-2011: • Global financial crisis. • Budget in deficit - $300B. • Commodities boom collapsed. • Unemployment rising. • Australia close to technical recession. (negative GDP over 2 quarters) • Expectations need to be realistic. • Now for the proposed WRA increase.

  11. The proposed WRA will deliver: • Averages 3.1% per year for the life of the arrangement. • 3.5% with effect 12 Nov 09 • 2.7% with effect 11 Nov 10 • Expires 3 Nov 11 • Total increases of 6.2% over the 24 month period of the arrangement. • No trade-off of Conditions of Service.

  12. Cost to the ADF • Increases will cost $743m over 2 years

  13. Navy Benefit

  14. Army Benefit

  15. Air Force Benefit

  16. Benefit

  17. Army Benefit

  18. Budgetary CPI Increases 2009-11 • The proposed WRA increases are more than projected CPI: • Budget Forecast: • 1.75% for 09-10 • 1.50% for 10-11

  19. Productivity Savings to Fund WRA • Strategic Reform Program: • Will deliver $20B in savings over the next 10 years. • $3B in savings over the next 4 years. • Savings will also be used to reinvest in current and future capability. • ADF will grow by 3600 by 2015-2016.

  20. Other mechanisms to increase pay • Pay category reviews: • The process recognises and rewards the general up-skilling of specific groups within the ADF workforce. • Initiated by the Services. • Allowance reviews • Salary related allowances are formally reviewed every 2 years.

  21. Recent Structural Reform • $106M pa – Officer and WO1 (E) GOPS placement • $23Mpa – OR 16 grade structure • $98Mpa – OR and WO1 (E) placement in 10 grade GORPS • $28Mpa – Trainee restructure (not including Trainee Allowance of $80M pa)

  22. Recent allowance reviews • Currently 17 pay related allowances • Trainee • Reserve • Restructure – Special Forces Disability • Q&S Removal – Sub Service, Flying, Specialist Ops • Restructure – Separation • Restructure – Paratrooper

  23. Recent retention/completion bonuses • Currently 30 Retention/completion bonuses • Navy Medical Officer Recruitment • Navy Communications Information Systems • Tri-Service Medical Officer • Navy Capability • Army Trade Transfer • Army Critical Category • Air Force Airfield Engineering Trades

  24. Member consultation is required by • Government’s policy parameters for ADF pay arrangements, and • The DFRT.

  25. The Way Forward! • Determine Support for WRA as demonstrated by: • Show of hands at WRA briefings. • Formal reporting of support through chain of command. • DFRT hearing on 16 Oct 09. • Arrangement commences on 4 Nov 09. • Expires on 3 Nov 11.

  26. Average of 3.1% per year over the 2 year arrangement. 3.5% with effect 12 Nov 09 2.7% with effect 11 Nov 10 Total increases of 6.2%. Pay rise front loaded to provide best compounding effect for ADF members. Noconditions of service used as off sets. Summary of key WRA features:

  27. Web (follow ADF Remuneration Arrangements link): DEFWEB – http://intranet.defence.gov.au/pac/ Internet – http://www.defence.gov.au/dpe/pac/ Fax: (02) 6127 2543 Post: Industrial Policy Directorate of Military Salary & Allowances (Policy) BP35-3-26 Brindabella Park Canberra Airport ACT 2609 Where can I get more information or provide feedback?

  28. The End!

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