CPSU in dispute over ATO redundancy programs and procedures
14 June 2012, 9:45am
An update following a second dispute conference on Friday 8 June 2012.
1. CAS redundancy program
ATO advised that two out of the 22 Newcastle CAS staff declared potentially
excess (because they were interested in a Clause 119 voluntary redundancy
package) had advised they were no longer interested.
CPSU remains concerned that staff were asked to sign forms that effectively
declared them potentially excess, advised a finishing date and completely
bypassed any consultation requirements before commencing consultation with staff
and CPSU as required by our Enterprise Agreement. These staff did not have
access to the full range of information and options regarding relocation and
redeployment because the ATO did not consult as required. CPSU was unable to
give full advice to members on their options because of the action of ATO in
ignoring requirements to consult.
CPSU requirement to resolve this issue is that ATO commit to not seeking
Expressions of Interest in potentially excess VRs (clause 119) before consulting
as required by clause 118 of the agreement.
2. CAS redundancy program – Expression of Interest sought outside Newcastle
CPSU has been seeking a formal apology from CAS to staff incorrectly asked if
they were interested in a VR. CAS management have advised that as staff had
already received verbal apologies, there was no need to do so again.
3. S&ME clause 116 expressions of interest
SME management have confirmed that large numbers of staff were ‘incorrectly’
asked if they were interested in clause 116 (non-genuine) VRs. They have
apologised in writing to affected staff and confirmed that there is “not a broad
redundancy program being conducted in S&ME”.
4. Register of clause 116 VRs sought by CPSU
Members being asked, or expressing interest in, clause 116 (non-genuine)
redundancies should be now be aware that there is higher taxation of clause 116
VR payments (compared to genuine clause 119 VRs) because the clause 116 VRs are
not considered genuine redundancies. Members are also aware that ATO is required
by the Enterprise Agreement to take action to replace staff departing on 116 VRs.
There are between 100 and 200 non-genuine VRs in ATO every year. If these
employees are not being replaced then ATO is in breach of the enterprise
agreement and members are being slugged with extra tax.
CPSU is seeking an assurance process that employees leaving under clause 116
VRs are in fact being replaced in the form of a register of positions affected
and action taken by ATO to replace these employees.
What happens next?
Further CPSU action in taking this dispute to Fair Work Australia is on hold
whilst we await ATO’s formal response to points 1 and 4 above. We expect to
receive this advice from ATO this week. Information on casual, non-ongoing,
labour hire and contractor usage for the 2012/13 financial year has again been
requested and will be shared with members when received.
Feedback or questions?
Please email us at
firstname.lastname@example.org if you have any questions, feedback or other
information about this topic.