CPSU in dispute over ATO redundancy programs and procedures

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 taxmembers@cpsu.org.au if you have any questions, feedback or other information about this topic.