Best deal negotiated—P.S.A.

Press, 12 September 1986, Page 1

Best deal negotiated —P.S.A.

PA Wellington The Public Service Association last evening said it was unhappy at having to negotiate for the possibility of voluntary severance in the Public Service. But realities forced it to do so, said the general secretary, Mr Colin Clark. The deal was the best that could be negotiated. It will cover any staffing surpluses after the Government’s shake-up of the public sector. The Minister of State Services, Mr Rodger, said the agreement represented a quite significant shift in the attitude of State service unions. The P.S.A. and the Post Office Union had never embraced the concept of redundancy, voluntary or otherwise, he said. “Cn this rhanee in the

machinery of government required them to embrace new concepts,’ he said. The agreement is between the State Services Commission, the Post Office, the P.S.A. and the P.O.U. It is not yet known how many staff will become surplus or will opt for voluntary severance — a matter which is still concerning the P.S.A. The agreement will be in force until October 1, 1988, and contains roughly similar provisions to those in a Railways Corporation redundancy package for employees. However, both Mr Rodger and Mr Clark emphasised that no public servants would be forced to take redundancy. Mr Clark also said there were procedures for the unions to be formally con-

suited when employing authorities believed there was a staffing surplus. Under the agreement, a range of options could be considered on a case-by-case basis — and it was hoped to minimise use of the voluntary severance provision, he said. The provisions cover redeployment, retraining, early retirement, leave without pay, and voluntary severance. There will also be an attrition provision whereby employees who died, resigned, transferred or who were promoted, might not be replaced. The voluntary severance options provide for employees to receive three months pay in lieu of notice and four weeks pay for each dependant, both based on the preced-

ing year’s pay. Employees with one year or more current continuous service will be entitled to a maximum of 42 weeks pay for 20 years of service. That is based on 8 per cent of total ordinary pay for the preceding 12 months and 4 per cent for dependents. Under that option, public servants of retiring age with up to 20 years, service or more will be entitled to retiring leave — on a sliding scale ranging from 65 days for 20 to 24 years and up to 131 days for 40 or more years. Those not of retiring age but who have completed 15 years service can receive 91 days retiring leave with 61 days for 10 to 15 years completed service and 31 days for five to 16 years.

Employees will be eligible for early retirement if they are 50 years of age or more and have 10 years service; Superannuation annuity may be calculated as if the employee were 60 years, with the employer making up any shortfall, but it will not exceed the level of voluntary severance payment the employee would otherwise be eligible for. Where a skill shortage is identified within the particular State service, the employer may agree to offer training to an individual employee. A full salary and appropriate training expenses will be paid. Employees might also be redeployed to a new job at the same or lower salary in the same place or at a new location.

Those who receive a lower salary will be given an equalisation allowance for two years. It may be paid as a lump sum. Assistance will be given with transfer expenses where the employee has to move to a new location. As well as current provisions applying for State servants on transfer, these employees will each get three days special leave on pay for them and their spouse to visit the new location, a $l2OO grant to sell their home and buy another, and they will be able to keep up to $2OOO equity from the sale while remaining eligible for mortgage finance assistance. Employees who do not own a home may claim a maximum of $3OO in expenses for having a compulsory transfer.