I have a story in the Crikey e-mail today about the ABC withdrawing a pay offer to staff in what the union is describing as a demonstration of “incompetence at the most senior levels of the ABC.” I promised to put the core documents on the blog.

here is the  Union Bulletin put out by the CPSU this week.

Here is the  letter from ABC Director of People and Learning, Kate Dundas, sent in December, withdrawing and revising the offer, citing economic circumstances.

Here is the  long letter to Mark Scott written by CPSU ABC Section secretary Graeme Thompson, pleading with him to reconsider.

And below is the text of the e-mail Mark Scott sent to ABC staff on the matter earlier this week.

February 04, 2009

Employment Agreement Wages Offer

Dear Colleagues,

I want to take the opportunity to update you on discussions with the

Unions over recent months around proposed pay increases for ABC staff

and to detail for you a proposal on a cash payment and wage increase for

all employees this year. I also want to ensure that you have a clear

picture in relation to what the ABC has offered.

Discussions with the Unions

Our current Employment Agreement notionally expires at the end of next

month with an expectation of the next wage increase for staff being from

July (the effective date for wage increases for a number of years).

From August last year, a number of meetings were held with Union

representatives around the prospect of extending the current agreement

until June 2010, with a 4% increase from the first pay period in July

2009. Without an extension, we would be negotiating a new Enterprise

Agreement now and it would be made under the existing Work Choices

industrial scheme. And, as you know, the ABC currently has a funding

submission before the Federal Government that will be determined at the

next budget.

By extending the agreement, we would have certainty over funding and

have allowed a full transition to the new workplace arrangements being

implemented by the Rudd Government, which become operational next year.

The arguments in favour of an extension were sound in our current

circumstances and remain so.

The discussions were held in good faith. It is clear, though, that there

was not sufficient clarity and precision around the proposals being

advanced and discussed. I regret that this occurred as the result was a

proposition for an extension being presented to members by union

representatives of a full 4% increase from April this year that the ABC

was not ever in a position to afford and deliver. It would have

represented pay rises of 7% within one financial year – unfunded and

unaffordable.

I met with Union leaders last December to discuss the situation, which I

agreed was disappointing and unsatisfactory. On this, we were in heated

agreement. In my view, I don’t think there was bad faith by negotiators

on either side, simply a lack of precision in the detail on what wage

increases would be available and affordable when. I think we agreed to

take all steps to ensure there can be no repetition of the current

disparity of views around the shape and detail of a pay offer.

At that December meeting, I indicated that we still wanted to reach an

agreement and I understood that the Unions also believed there were

merits in reaching a deal. Consequently a revised offer was forwarded to

the Unions in the lead-up to Christmas.

A proposal for ABC staff

I think the arguments in favour of extending the current agreement are

still in the interests of staff and the ABC.

What we propose is for:

1. The equivalent of a 1% non-recurrent payment for the April to June

quarter (this could be packaged in a number of ways – see below);

2. an across the board wage increase of 4% to base salary from the first

pay period commencing on or after 1 July 2009 (from 6 July, payable on

23 July 2009);

3. the current Agreement would be extended until 30 June 2010; and

4. the parties to the Agreement would negotiate on:

performance management;

the work level standards and role templates; and

forms of employment.

The parties would commence formal bargaining no later than early

February 2010 with a commitment, to finalise the bargaining, subject to

reaching an agreement, to enable subsequent wage increases to be payable

in July each year. It is the ABC’s position that future EA wage

increases should be from the beginning of the financial year.

Discussions were ensuing with Unions on the precise details of how the

payment at 1 above could be packaged (either a fortnightly payment or a

one off, non recurrent cash payment) Either of these approaches equates

to at least 1% payment for the April to July quarter. We would make this

payment available as soon as the varied agreement was approved by staff,

which could be as early as this month if possible. Part timers will

receive a pro rata amount.

I think this proposal is fair to staff and provides certainty in these

economically uncertain times. With inflation now at 3.7% and expected to

fall further in coming months, it represents payments above the expected

CPI level over the rest of the extended agreement term. I think it will

compare well to industry agreements reached in coming months as

inflation falls and unemployment rises.

Of course, any extension now or more detailed EA negotiation will take

place in the context of the economic crisis. The sharp slowdown has had

its effect on the money available to the ABC for expenditure,

particularly through the increased costs of our foreign operations and

the impact on our commercial operations. We are not hit as hard as

commercial media organisations, but there is still a significant impact

on the ABC in a downturn like this. It affects the money we have

available to spend and our forecast for future expenditures.

The economic conditions have deteriorated further since December when we

put this specific proposal before the Union. It is all we can afford but

I believe it is highly competitive and represents good value.

I hope staff and the Union leadership give it full consideration.

Mark Scott