Health
textual image stating 'Department of Health, Victoria, Australia'

Hospital Circular 28/2004

Date Issued: 15 September 2004

Distribution: Chief Executive Officers; Chief Finance Officers; HR Directors

Enquiries: Industrial Relations Branch Tel (03) 9616 2583

Subject: Funding and Payment of 2004 General Nurses’ EBA


In May of this year, the Victorian Hospitals’ Industrial Association (VHIA), on behalf of its members, and the Department reached an “in-principle” settlement of the Australian Nursing Federation’s and the Health Services Union of Australia Victoria No.1 Branch’s 2004 General Nurses’ Enterprise Bargaining Claims. Since that time, the parties have been working towards drafting an enterprise bargaining agreement (EBA) capable of being certified in the Australian Industrial Relations Commission (AIRC), encapsulating the matters settled in principle in May.

The parties have now agreed on a draft of the proposed new multi-employer agreement for general nurses. This draft agreement has been sighted by Commissioner Cribb of the AIRC who has encouraged employers and the unions to move it forward to certification and implementation expeditiously. [The VHIA has issued a bulletin to its members (Bulletin 863) which is accompanied by copies of both the draft agreement and the Commissioner’s Statement.]

Both the VHIA and the respective unions will be circulating the final draft agreement to their respective members in anticipation of a staff ballot and then an application to the AIRC to certify of the agreement by the AIRC. Certification is expected to occur in October.

The Department had already made various adjustments to health services budgets from 1 July 2004 relating to the general nurses EBA. Further adjustments have been made recently and more are in train to finalise central funding for the implementation of the general nurses settlement. The status of general nurses’ EBA funding is:

Program Current Funding Status Further Adjustments to be Made

Acute/Sub-Acute

All 2004/05 funding for salary increases and conditions matters incorporated in budgets (excluding “reserved items”*)

2003/04 arrears will be paid in the first payment run in October.

Aged Care

No funding yet provided

  • Funding for 3% salary increases including 2003/04 arrears for 1 April 3%
  • Conditions funding, including 2003/04 arrears

These adjustments are to be flowed in mid- to late-October

Community/Primary Health

Funding for the General Nurses’ EBA incorporated in budgets from 1 July 2004 through application of NGO indexation (2.6%)

EBA impact will be re-assessed in October/November

* “Reserved Items” (eg additional EFT) will be funded separately via a process to be advised.

Given that the parties have finalised an agreement capable of being certified, and have signed a Deed which commits the parties to certifying that agreement and abiding by its terms, it is appropriate that general nurses now be paid the salary increases and other conditions benefits contained therein.

Therefore, Health Services are advised that payment of the salary increases and other new benefits agreed in May should be passed on to all affected nurses in the next available pay period, with arrears being calculated and paid as soon possible after that. This applies to nurses in all program areas.

Stand-Alone Primary Care agencies and Community Health Centres should also pass payments on from the next available pay period.

Stand-alone Aged Care facilities named as Respondents in the draft agreement should take all necessary steps to ensure that the salary increases and new conditions provided for in the settlement, including arrears, are passed on to nurses at the earliest possible date.

Please note that the advice in this circular authorising payment of recent EBA settlement outcomes pertains only to the General Nurses’ EBA and only to nurses employed by Respondents named in the draft multi-employer agreement.

Previous advice stands with regard to the timing of payment to general nurses employed by respondents to other agreements and to Psychiatric, Health Professional and Medical Scientist staff - that is, payment may not be made to these staff until their respective new agreements are certified, or until otherwise advised by the Department.

Timothy Lee
Acting Executive Director
Financial and Corporate Services