WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION. Industrial Relations Act 1979. The Civil Service Association of Western Australia Incorporated and Department of Treasury. No. PSA AG 164 OF 1996. Western Australian Treasury Department Enterprise Bargaining Agreement 1996. PUBLIC SERVICE ARBITRATOR A.R. BEECH. 9 December 1996. Order. HAVING heard Mr R. Carlton on behalf of the Applicant and Mr S. Majeks on behalf of the Respondent and by consent, the Commission, pursuant to the powers conferred on it under the Industrial Relations Act, 1979, hereby orders: THAT the Western Australian Treasury Department Enterprise Bargaining Agreement 1996 is hereby regis- tered. (Sgd.) A. R. BEECH, [L.S] Public Service Arbitrator.. Schedule. 1.—TITLE This Agreement shall be known as the Western Australian Treasury Department Enterprise Bargaining Agreement 1996. 2.—ARRANGEMENT 1. Title 2. Arrangement 3. Scope 4. Parties Bound 5. Date and Operation of this Agreement 6. Relationship to the Parent Award 7. Shared Vision for the Western Australian Treasury Department 8. The Issues— 1 Productivity and Other Improvements and Changes implemented since January 1992 2 Flexible Working Hours 3 Prospective Productivity Improvements 9. Timetable for Payments 10. Efficiency, Flexibility and Quality 11. Public Holidays 12. Dispute Resolution Procedure 13. Leave Provisions 14. Union Delegates 15. Mechanism for Administrative Changes 16. Re-open Negotiations 17. Number of Employees 18. Signatories Appendix A—Productivity and Other Improvements and Changes Implemented Since January 1992 Appendix B—Flexible Working Hours Appendix C—Salary Scales Appendix D—Glossary 3.—SCOPE The Agreement shall apply to all officers employed pursuant to the Public Sector Management Act 1994 in the Western Australian Treasury Department under the terms and conditions as contained in the Public Service Award 1992 and all persons who are members of or eligible to be members of the Civil Service Association of Western Australia Incorporated. 4.—PARTIES BOUND This Agreement shall be binding according to its terms upon: 1. The Civil Service Association of Western Australia Incorporated; and 2. the Western Australian Treasury Department. 5.—DATE AND OPERATION OF THIS AGREEMENT 1. The Agreement shall operate from the beginning of the first pay period commencing on or after 30 June 1996, and shall remain in operation until 31 December 1997. 2. This Agreement shall not be cancelled or varied during its term, unless mutually agreed between the parties. 6.—RELATIONSHIP TO THE PARENT AWARD This Agreement shall be read and interpreted wholly in conjunction with the Public Service Award 1992. Where there is an inconsistency between this Agreement and the parent Award, this Agreement shall prevail to the extent of any inconsistency. 7.—SHARED VISION FOR THE WESTERN AUSTRALIAN TREASURY DEPARTMENT The parties to this Agreement are committed to striving to achieve Treasury’s mission which is: “Leadership in advancing the State’s economic and financial management.” The mission is built on a commitment to quality, professional conduct and excellence of service in acting as a catalyst for improving the State’s financial well being. Four key principles form the cornerstone of the Treasury’s current and future approach: • Unity of Purpose A unity of purpose across Treasury with a clearly understood vision for continuous improvement. An WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 77 W.A.I.G. 224 administrative structure and environment that will maintain, encourage and nurture a commitment to efficiency and effectiveness. • Pursuit of Quality To maintain the confidence of Government and the people of Western Australia through the pursuit of efficient and effective stewardship of resource ac- quisition, allocation, management, and financial con- trol and accountability of the Public Sector. • Active Leadership Leadership and involvement of all levels of Treas- ury management and staff in the process of change for service quality improvement. To ensure continu- ing success, management and staff will adopt flex- ible work practices and be acceptable to change in achieving timely and relevant outputs and outcomes. • Continuous Improvements All staff to be encouraged and provided with train- ing resources to enhance their level of technical skill and professional expertise. 8.—THE ISSUES 1. Productivity and Other Improvements and Changes Implemented since January 1992 The Treasury is committed to a continuing process of improvement to all facets of its operations. Since January 1992, the following improvements in efficiency, effectiveness and productivity have occurred, providing significant cost savings: • Reduction in full time equivalents (FTEs) • Rationalisation of accommodation and other budget savings • Organisational restructuring • Introduction of improved work practices and en- hancement of systems • Increased workload and responsibilities without re- quiring an increase in FTE’s. • Introduction of multi-skilling and improved office communication systems Details of these improvements are contained in Appendix A to this Agreement. 2. Flexible Working Hours To manage seasonal variations in Treasury’s workloads, a system of flexible working hours has been agreed. Staff will be allowed to accrue flexible hours during periods of heavy workloads. These hours will then be available to be cleared as leave during periods of lighter workloads. This will enable staff and management greater flexibility to increase productive hours and reduce unnecessary non-productive hours. The flexitime bandwidth will be extended to accommodate this initiative. Details of flexible working hours are detailed in Appendix B to this Agreement. 3. Prospective Productivity Improvements Prospective productivity improvements account for approximately 5% of the 7.9% salary increase under this Agreement. The prospective productivity payments consist of a 2% payment upfront followed by a 3% payment on 1 January 1997. 3.1 Productivity Improvements The prospective productivity improvement measures include: • revised uniform and more flexible working arrange- ments to improve Treasury’s ability to best meet the needs of its clients and its employees. These include extending the potential flexibility of weekday ordi- nary working hours, and allowing for the possibility of work on the weekend and at a location other than the usual place of work. The development of an integrated system of: • organisational planning including the establishment of objectives for the achievement of the Department’s mission and including elements relating to continu- ous improvement of processes (incorporating best practice investigations), customer focus, safety and teamwork; • working groups to deal with a range of emerging issues identified as part of the planning process; • standards for the Department’s performance in meet- ing its objectives; • operational workplans derived from the organisa- tional objectives and standards and the implementa- tion of improvement strategies relating to the customers, safety and teamwork; • personal work plans that are integrated with opera- tional plans including the identification of standards of performance and the use of personal development plans. This system will involve measurement that includes quantitative measures of performance against agreed standards and assessment involving peers, subordinates and superiors; • development plans that are integrated to ensure that they are consistent with overall organisational de- velopment objectives and the achievement of better value for money training; • performance management as a continuous process involving regular reviews and assessments; and • an information delivery system utilising a Treasury Internet / Intranet facility and CD ROM software that allows for more efficient and timely dissemina- tion of information, both to our customers and inter- nally. The information systems development will be completed over a period of six to eight months with a target date of 1 January 1997 for the completion of the Treasury Intranet and the release of Financial Administration and Audit Act updates and Treasurers Instructions on CD-ROM. The completion of the Treasury Internet system will be targeted for completion by the end of the first quarter 1997. Several working groups have been established to progress critical factors identified in the strategic planning process. These groups will be reporting over the next six months. Organisational performance standards will be developed over the next year as part of the performance management system. The development of Performance Indicators to be applied to the outcomes of this agreement will be one of the responsibilities of the Joint Consultative Committee. The Committee will develop the Performance Indicators over the six months to December 1996 and conduct a pilot of the Indicators for 3 months from 1 January 1997. This will enable fine tuning and application of the Performance Indicators. In addition, Treasury undertakes to continue its programme of productivity improvements through the life of this Agreement, whilst maintaining existing activities, within the resource constraints of the published forward estimates. Through a program of continuous improvement Treasury will: • continue to service government’s demand for qual- ity advice and service in the most efficient and cost- effective way; • provide government, the community and employees with savings gained through improved productivity and work practices; • introduce a program to identify and attain “best prac- tice” in all aspects of its responsibilities to its clients through ongoing reviews of its business practices and service delivery, with the aim of identifying and highlighting barriers to productivity and areas where there may be under-utilisation, duplication and waste; and • conduct a review of the approved average staffing level of Treasury, with the view to reducing it, over the period of the agreement, while maintaining the existing level of customer services. This reduction will be met through: - natural attrition; - a commitment to the extension and promo- tion of contract and part-time employment; and - improved work practices. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 225 77 W.A.I.G. We will promote excellence in our staff and in our outputs by : • ensuring that Treasury advice is clear and concise, well-founded, timely and relevant to the pursuit of government’s objectives; • clarifying objectives and delegating responsibility to individuals within Treasury; • providing an adequately resourced, challenging and supportive work environment; • encouraging the professional development of staff and a broadening of staff skills through training, se- condments, job rotation; • establishing an open communication flow of infor- mation within Treasury; • our commitment to effective individual and organi- sational performance management system; and • continually reviewing our practices and introducing improvements. We will maintain a strategic and flexible business focus by: • enhancing our strategic/corporate planning process with clear links to organisational and individual’s plans; • being flexible in how internal resources are allocated (including the use of team approaches to issues) to meet changing demands and policy imperatives of government; • ensuring clear points of contact exist in order to pro- vide our clients with a coordinated and effective serv- ice; • communicating with agencies in a manner to under- stand their needs, to develop their trust, and to con- vey Treasury’s position; • assisting managers to manage within a delegated environment of approved financial frameworks and standards; and • streamlined financial information demands on agen- cies for Treasury purposes. Treasury will continue to lead in the provision of economic and financial advice to government and agencies and be a leader of new ideas by: • being flexible in encouraging new ideas and debate (internally and externally) on policy issues of con- cern to the government; • being innovative and creative in our policy options and solutions; • being prepared to challenge existing practices and ideas; • clearly communicating our views in external forums; and • researching new approaches and keeping abreast of the latest developments elsewhere on economic and financial issues. However, the parties recognise that it is important to encourage productivity improvements beyond those currently identified in this Agreement. Where such improvements are identified, implemented and savings have been achieved, (including any productivity improvements started but not completed by the end of this Agreement) they will be considered as part of, and payable on or before the commencement of, the next Enterprise Agreement. 3.2 Expected Benefits The above proposed productivity improvement measures will provide a clear and specific return to government and the community and further Treasury’s ability to fund the productivity related salary increases contained in this Agreement. In particular, the measures will increase productivity by allowing greater flexibility in the deployment of staff to meet peak workload requirements in particular areas of Treasury (thereby allowing a reduced average staffing level), the development of an appropriate (and more flexible) skills base for Treasury, and better use of current and future technology to increase workforce productivity. Significant improvements in productivity are expected from these initiatives. The implementation of an integrated Performance Management System will ensure more focused and efficient work planning and a better integration of employee skills and job requirements. Better targeted employee development programs will provide better value for money and ensure resources are directed to priority areas from a whole of Treasury perspective. The development and implementation of an information system utilising a Treasury Internet/Intranet facility and CD- ROM technologies will have a number of ongoing productivity benefits including an overall reduction in the repetition of information and a reduction in turnaround time for documentation dissemination, both internally and to our external customer base. Further expansion of this approach to information accessibility will bring about a reduction in cost of a number of Treasury papers ( ie Budget Papers, Program Statements), again internally and to our external customers. The anticipated financial benefits to the Department will be realised over the life of the agreement and will be ongoing. The immediate financial return to Treasury will be the offsetting of the costs of production of the CD-ROMs by the charging of departments who purchase them. The continuous development of the emergent issues resulting from the implementation of key strategies of the Strategic Plan will enable the department to be better placed to contribute to the reform process of government. Although it is difficult to quantify the magnitude of productivity enhancement stemming from these initiatives it is clear that the strategies being developed on key issues such as private sector investment in public infrastructure, fiscal reporting, revenue opportunities and threats and financial management improvement have major implications for productivity. By progressing the productivity measures detailed above, Treasury will embark upon program of continuous improvement that will enable it to meet customer needs. It will also facilitate the vision required for the department to be at the leading edge of economic and financial policy, whilst enhancing the skills and career development needs of staff. This will position the department to anticipate and incorporate the ongoing innovations in business practices. The financial returns as a result of the implementation and progression of the productivity improvements detailed above, will enable the Department to meet the 5% salary increase within budget, and will result in total savings to the Department well in excess of the 5% increase. It is recognised, to the extent and level of new demands, additional responsibilities or workloads that are entrusted to Treasury, there may need to be commensurate adjustments to Treasury’s forward estimates. 9.—TIMETABLE FOR PAYMENTS 1. Salaries will commence at the level set out in Column E of Appendix C of this Agreement and will be paid in fortnightly instalments, payable from the beginning of the first pay period commencing 9 December 1996. 2. Salaries will be increased by a further 3.0% to the level set out in Column F of Appendix C of this Agreement from 1 January 1997. 3. Annual increments to employee salaries will be paid in accordance with the salary scales set out in Appendix C of this Agreement. 10.—EFFICIENCY, FLEXIBILITY AND QUALITY 1. Past Productivity Improvements (i) The Western Australian Treasury Department and the Civil Service Association of Western Australia Incorporated agree that between the period 1991- 1995 there have been a range of measures introduced by Treasury to improve productivity, efficiency, flex- ibility and quality. (ii) The parties agree that such productivity improve- ments are substantial and in recognition of these improvements there is a specific salary increase of 2.0% forming part of the first instalment of the pro- ductivity related salary increase. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 77 W.A.I.G. 226 11.—PUBLIC HOLIDAYS 1. The following days will be observed as fully paid holidays: New Year’s Day, Australia Day, Labour Day, Good Fri- day, Easter Monday, Anzac Day, Foundation Day, Sov- ereign’s Birthday, Christmas Day and Boxing Day. 2. When any of the days mentioned falls on a Saturday or a Sunday (except Australia Day and Anzac Day), the holiday shall be observed on the next succeeding Monday. 3. When Boxing Day falls on a Sunday or Monday, the holiday shall be observed on the next succeeding Tuesday. 4. In each case, the substituted day shall be a holiday without the deduction of pay and the day for which it is substituted shall not be a holiday. 12.—DISPUTE RESOLUTION PROCEDURE 1. Any questions, disputes or difficulties arising out of the operation of this agreement will be dealt with in accordance with the procedures set out in this clause. 2. In the event of any proposed change in employment conditions, employee grievance or other disputes arising, the parties are committed to the principles of consultation and conciliation and agree to follow the procedures set out hereunder. 3. The parties further agree that all disputes shall be resolved as expeditiously as possible. 4. Procedure of Settlement of Disputes. (a) The employee/s and the employee’s Supervisor shall confer, where appropriate, and clearly identify the facts and, where possible, resolve the issue. (b) If not resolved, or if it is inappropriate for the em- ployee/s to directly approach their Supervisor, the employee/s, the union representative, the Supervi- sor and the relevant Manager shall confer and, where possible, resolve the issue. (c) If not resolved, the union shall confer with the Hu- man Resources/Industrial Relations Director and, where possible, resolve the issue. (d) If the matter is still not settled, either party may sub- mit the matter for conciliation/arbitration by the