EmailHospital Circular 02/2010
Date Issued: 25 January 2010
Distribution: Public Hospitals, Denominational Hospitals, Ambulance Services, Health Purchasing Victoria, Infertility Treatment Authority, Victorian Institute of Forensic Mental Health and Dental Health Services Victoria
Subject: HSUA-1 and HSUA-5 Enterprise Bargaining Agreement – Funding Supplementation for the First Salary Increase; and Advice re HSUA-3 Full Bench Decision (and related ‘exchange of letters’) Second Salary Increase
Purpose: To advise Victorian public health sector agencies of funding supplementation being provided by the Department with respect to the first salary increase pursuant to the 2009 Enterprise Bargaining Agreement (EBA) reached between health services and the Health Services Union of Australia Victoria No. 1 and No.5 Branches (HSUA-1/5). To also advise Victorian public health sector agencies of the Department’s position re the second salary increase payable to Health Services Union of Australia Victorian No. 3 Branch (HSUA-3) employees under the Decision of a Full Bench of Australian Industrial Relations Commission (and the related ‘exchange of letters’ between the industrial parties with respect to employees not covered by the Decision).
HSUA- and HSUA-5
A new EBA was struck earlier this year covering hospital and health services employees covered by HSUA-1 and HSUA-5. The new EBA is a 2 year and 1 month agreement operating from 1 August 2009 to 31 August 2011 and providing two salary increases of 3.25% effective 1 August 2009 and 31 July 2010.
Departmental Funding Model (DFM) indexation for 2008/09 through the Policy & Funding Guidelines provides a 3% increase with respect to HSUA-1 and HSUA-5 covered employees. This will leave hospitals and health services with a shortfall in funding for the part-year period from when the first 3.25% salary increase mentioned above came into effect. Also, as the new EBA’s period of operation overlaps that of the previous EBA by one month, a further funding shortfall occurs with respect to that month.
The Department is therefore distributing additional funding to hospitals and health services by way of supplementation to address the shortfalls between EBA cost and DFM indexation provided. This supplementation will flow to hospitals and health services by way of a payment variation. The supplementation has been calculated to reflect a direct top-up of DFM indexation already received.
A similar supplementation approach will be effected for stand-alone Community Health Centres and stand-alone Public Residential Aged Care Services.
HSUA-3
A Full Bench of the Australian Industrial Relations Commission handed down its Decision in the arbitration of the enterprise bargaining claims of HSUA-3 and a number of Victorian public health sector employers in April 2009. That decision awarded a series of salary increases to employees of the employers named in the arbitration proceedings. Subsequent to that Decision, the industrial parties exchanged letters committing to passing on commensurate salary increases to employee of other Victorian public health sector employers not party to the arbitration proceedings.
The second of the salary increases provided for by those documents was a 3.25% salary increase with effect form 21 November 2009.
While DFM indexation provided to hospitals and health services in 2009/10 with respect to this group of employees is 3% - an amount less than the 3.25% increase payable in that year – the Department is of the view that the combined DFM indexation received by health services since the payment of the last salary increase payable to these employee under the previous multi-business agreement on 1 October 2006 is still sufficient to make up for any gap between DFM and salaries payable in 2009/10.
The Department will review the issue of supplementation to DFM for this group in 2010/11.
If you have any queries regarding the above, please contact Simon Chant on telephone 90967313 or by email address to simon.chant@health.vic.gov.au
LANCE WALLACE
Executive Director
Hospital & Health Service Performance
