1 The ADF Employment Package... … and how the Workplace Remuneration Arrangement fits in Click once to proceed

2 To explain how the ADF workplace remuneration arrangement (WRA) fits into the wider employment package. What is the purpose of this briefing? The characteristics of the ADF, and the work of the service people who belong to it, have long been considered both special and unique. The ADF employment package matches this. The WRA is not the only game in town: to understand it, you need to know what else is out there and how the pieces fit in. Click once to proceed

3 What is the purpose of this briefing? Click once to proceed Two key questions: Why do we need a WRA anyway? How does the WRA fit in to the rest of the ADF employment package? To explain how the ADF WRA fits into the ADF employment package.

4 Why do we need a WRA anyway? Workplace bargaining - a Government requirement to justify pay for productivity/performance The Government requires pay rises for ADF members to follow the same general workplace bargaining principles that apply to the wider community. Workplace bargaining is simply a process that recognises the contribution of the work force to increases in the productivity, efficiency and performance of an organisation. Click once to proceed

5 Why do we need a WRA anyway? For the ADF, workplace bargaining seeks to obtain productivity and pay outcomes in a way that is seen as fair and equitable. It takes account of general community standards, but within the limitations allowed by Government policy and the special nature of ADF service. There is a specific ADF Remuneration Framework agreed for the WRA. The ADF's workplace bargaining process allows all these factors to be balanced, in consultation with the chain of command and ADF members. Click once to proceed Workplace bargaining - a Government requirement to justify pay for productivity/performance Modified for the ADF to reflect special military characteristics

6 Why do we need a WRA anyway? Workplace bargaining - a Government requirement to justify pay for productivity/performance Proposed WRA are examined by an expert and independent body (the Defence Force Remuneration Tribunal). They must comply with workplace bargaining principles and the ADF's special pay setting legislation under the Defence Act 1903, including a thorough consultation process. The existence of the DFRT since 1984 has led to a much more ordered approach to the regulation of ADF salaries. Click once to proceed Modified for the ADF to reflect special military characteristics Independent Tribunal (the DFRT) to ensure fairness and compliance with legislation

7 Why do we need a WRA anyway? Workplace bargaining - a Government requirement to justify pay for productivity/performance The WRA allows us to strike the deal for our global pay rises, within the wider Defence setting. Thats why we need it. Click once to proceed Modified for the ADF to reflect special military characteristics Independent Tribunal (the DFRT) to ensure fairness and compliance with legislation Bottom line: we need the WRA in order to justify and achieve across-the-board ADF pay rises

8 How does the WRA fit into the rest of the ADF employment package? Click once to proceed The WRA is only a part of the whole picture. In Defence, civilians have their conditions of service regulated by the Defence Enterprise Collective Agreement (DECA). It basically covers everything, both across-the-board pay rises and conditions of service and employment. ADF remuneration is delivered through a separate system that covers three main areas.

9 Operational and Warlike Service Special conditions of service on a case by case basis. Not in the WRA. No Civilian Equivalent How does the WRA fit into the wider Defence remuneration picture? Click once to proceed First Area - operations. They are unique to the ADF. Special remuneration provisions apply for each deployment. These conditions of service are not dealt with in a WRA. There is obviously no civilian equivalent to this ADF requirement.

10 No Civilian Equivalent How does the arrangement fit into the wider Defence remuneration picture? Click once to proceed Second Area - the liability of ADF members to serve: the special characteristics of military service. Service allowance, other salary related and disability allowances, housing and other ADF conditions of service help to recognise this. Some special-to-APS conditions of service are specified in the DECA, but they are clearly different in nature to those that distinguish the profession of arms. Special Nature of Military Service Allowances and other conditions reflect the special characteristics of military service (service allowance, disability allowances, housing etc). DECA No direct equivalent Operational and Warlike Service Special conditions of service on a case by case basis. Not in the WRA.

11 Operational and Warlike Service Special conditions of service on a case by case basis. Not in the WRA. No Civilian Equivalent How does the arrangement fit into the wider Defence remuneration picture? Click once to proceed Special Nature of Military Service Allowances and other conditions reflect the special characteristics of military service (service allowance, disability allowances, housing etc). DECA No direct equivalent Core Salary and Conditions of Service ADF WRA: Recognition of across-the-board Defence renewal, performance and efficiency through pay rises. Determined Separately for ADF: Other conditions of service shared with wider workforce: leave, relocation, travel, etc. Third Area - Basic conditions of service that are common to the wider community. Note that the detail of the ADF employment package still differs for things like leave, relocations, employment conditions (hiring & firing) etc. DECA

12 Operational and Warlike Service Special conditions of service on a case by case basis. Not in the WRA. No Civilian Equivalent How does the arrangement fit into the wider Defence remuneration picture? Click once to proceed Special Nature of Military Service Allowances and other conditions reflect the special characteristics of military service (service allowance, disability allowances, housing etc). DECA No direct equivalent The broad pay and productivity outcome is a major focus of the DECA and also for the WRA. It is why a broadly common approach is needed in this area for both the DECA and the WRA. DECA Core Salary and Conditions of Service ADF WRA: Recognition of across-the-board Defence renewal, performance and efficiency through pay rises. Determined Separately for ADF: Other conditions of service shared with wider workforce: leave, relocation, travel, etc.

13 Some frequently asked questions Click once to proceed So there are special and unique conditions of service to match the special and unique aspects of military service. But some things are common to Defence civilians and the wider community. Q: What does this really mean for the WRA? Why are some things in and others out? First, it means theres a focus on broad level performance and pay. The WRA does not get into non-salary related conditions, which are not determined directly by the Defence Force Remuneration Tribunal. Second, the WRA seeks to keep comparative Defence base pay rises broadly in step, but not treat ADF members like public servants in uniform. It is not a simple copy of the civilian DECA. Third, it means that because of this, there will be differences between some ADF and civilian conditions of service. Some things (working hours and leave, for instance) apply quite differently to the military and civilian work forces in Defence. The exact outcomes (either benefits or trade-offs) applying to one side cannot always be applied directly to the other - and nor should they. And finally, it also means that those other ADF conditions of service are looked after on a continuing basis, outside of and in addition to the WRA. You should feel free to ask questions or make comments about them at any time. You can do that direct or through your chain of command.

14 Some frequently asked questions Click once to proceed Q: What other salary-related activity goes on between the Arrangements, apart from the across-the-board pay rises? Trade/employment category reviews and allowance reviews are carried out through the Employment Category Remuneration Review Committee (ECRRC) process and, where appropriate, submitted to the DFRT for consideration. Depending on the number and size of categories reviewed, the impact on actual pay outcomes can be significant. For the ADF, the process recognises and rewards the general up-skilling of specific groups within the ADF workforce. The effect is not counted when comparing overall percentage pay rise outcomes between the ADF and APS, though this kind of adjustment option is not available under the DECA. A: Firstly, pay (trade) category reviews: Review of placements under GORPS and GOPS Each category can cost Defence $1-5m annually

15 Some frequently asked questions Q: What other salary-related activity goes on between the Arrangements, apart from the across-the-board pay rises? To start with, all pay-related allowances (ie service, flying, seagoing, field, Special Forces Disability etc) are automatically increased through each WRA by the same percentage increase as pay, and with the same date of effect. A: Firstly, pay category reviews: Review of placements under GORPS and GOPS Each category can cost Defence $1-5m annually A: Secondly, salary-related allowance reviews Each reviewed around every 2-5 years Average range from $3-11m total annually - much higher if theres a service allowance review (possibly $40-90m) Click once to proceed On top of the automatic increases, current legislation requires all pay related allowances be reviewed by the DFRT every two years. The review will look at whether a new case is needed. Reviews of pay related allowances can also occur in response to Service requirements. A substantive update of each allowance is generally conducted every 2 years, though this can vary.

16 Some frequently asked questions Q: What things are not in the ADF WRA? A: The DFRT has no direct jurisdiction over the following issues and therefore not dealt with in any WRA Non-salary related conditions (domestic and overseas, including deployments) Retention and completion benefits, bonuses and allowances Housing, accommodation and relocation Superannuation and compensation Leave and employment (hiring & firing) policies To summarise, a WRA is not an imitation DECA - ADF members require a more flexible approach to cater for the nature of ADF service and operational demands. Separate conditions of service initiatives will be actioned via the ADF conditions of service system. This is not to say these areas should not be raised or consulted upon at any time, whether a WRA is being developed or not. Just that the WRA is not the means for determining the outcomes. Any proposed reviews to policies on ADF conditions of service and employment are announced when they are known. Where the position has not yet been decided, it would be premature and possibly misleading to speculate on an outcome. Click once to proceed

17 What was the aim of this briefing again? If you want to find out more about the pay and pay related allowances or the WRA in particular, please explore the web site for further information. Click once to finish To explain how the ADF workplace remuneration arrangement (WRA) fits into the wider conditions of service picture.