ADF Workplace RemunerationArrangement (WRA)

2011 – 14

ADF Consultation Brief

Directorate of Military Salaries and Allowances – PolicyPeople Strategies and Policy Group

What is the purpose of this briefing?

• To explain the ADF wage setting environment

and how it fits into the Defence Employment

Offer.

• To outline the specific details of the ADF WRA

2011-14.

• To answer your questions.

Jan 11 Jun 11May 11

Formulation of ADF propositions

Account taken of Government policy –

Bargaining Framework

27 Oct 11Aug 11

Member consultation

COSC

Focus Groups

Service Newspapers

Service Messages

Websites etc

CDF and Chiefs of Service consideration

of Quantum/timing

Funded Draft WRA prepared

Member feedback on support of propositions

DFRT hearingNew

arrangement commences

4 Nov 11

First pay increase

10 Nov 11

Advice to Minister on s58KD arrangement

Presentations

Timeline

What is the WRA?

• The ADF WRA is the military version of workplace bargaining.

• Requires improvements in productivity and efficiency.

• It provides the across-the-board pay rises over a specified period (usually 2 – 3 years).

• Confined to pay and pay related allowances only.

The WRA covers:• Salary • 17 salary related allowances:

Adventurous Training Instructor

Arduous Conditions

Diving

Field

Flying and Flight Duties

Hard Lying

Language Proficiency

Paratrooper

Reserve

Seagoing

Separation

Service

Special Forces Disability

Specialist Operations

Submarine Escape

Submarine Service

Trainee

What the WRA does not cover

• The WRA does not specifically review:– Allowances structure and amount.– Warlike and Operational Conditions of service.– Conditions of service covering special nature of

military service– Placement within the pay grades.– Any other condition of service.

WRA: Establishing the context:It is a tangible part of the Defence Employment Offer:

• The ADF employment offer includes tangible and intangible elements, including:– Pay– Pay related allowances (eg. Service, Field, Seagoing, Flying etc)– Retention/Completion Bonuses– Other allowances (eg. Locality, Clothing, Travel, meals etc)– Superannuation– Leave– Medical– Accommodation benefits– Removals– Family support– Compensation and benefits on illness or death– Career transition schemes

DEFWEB Portal Essentials:

• Pay and Conditions

• ADF Publications

• Members Guide to ADF Pay and Conditions of Service in Australia

The WRA takes account of:

• Defence global productivity and Organisation Savings eg Strategic Reform Program.

• Pay trends in the Australian workforce.

• What the organisation can afford.

• Economic circumstances (the budgeting environment).

• The DECA and the APS Bargaining Framework

Current Economic Circumstances– Lingering effects of Global Financial Crisis.

– Two speed economy. Mining sector doing well. Non mining sector static.

– Commonwealth budget remains substantially in deficit ($49.4B end Jun 2011)

– Commonwealth May 2011 budget – fiscal austerity.

– Spending on Commonwealth outlays constrained which affects salaries for public sector and Defence employees.

Budget Economic Forecast• Inflation

– Annual CPI rate 3.6% (Jun 11 quarter)– CPI 2.75% to Jun 12– CPI 3.00% to Jun 13 (Carbon Tax? + .7%)

• Budget– $22.6B deficit in 11-12– $3.5B surplus 12-13– Unemployment rate 4.5% 12-13

The proposed WRA will deliver:

• Total increases of 9% over 3 years.• 3 instalments:

– 4.0% with effect first available pay period that processing can occur

– 2.5% with effect 8 Nov 12– 2.5% with effect 7 Nov 13

• Expires 3 Nov 14

Salary Benefit

Rank PG

Rates

Total IncreaseBase Rise 1 Rise 2 Rise 3

PTE (E) 3 $45,054 $46,856 $48,027 $49,228 $4,174

CPL (E) 3 $50,401 $52,417 $53,727 $55,070 $4,669

SGT (E) 3 $57,540 $59,842 $61,338 $62,871 $5,331

WO2 (E) 5 $72,110 $74,994 $76,869 $78,791 $6,681

LT (E) 2 $52,124 $54,209 $55,564 $56,953 $4,829

MAJ (E) 2 $78,098 $81,222 $83,253 $85,334 $7,236

LTCOL (E) 2 $109,753 $114,143 $116,997 $119,922 $10,169

Allowance Benefit

Allowance

Rates

Total IncreaseCurrent Rise 1 Rise 2 Rise 3

Service $11,662 $12,128 $12,431 $12,742 $1,080

Field (Tier 1) $51.59 $53.65 $54.99 $56.36 $4.77

Seagoing (3-<6yrs) $17,522 $18,223 $18,679 $19,146 $1,624

Flying $7,451 $7,749 $7,943 $8,142 $691

SFDA (SAS (Q)) $35,218 $36,627 $37,543 $38,482 $3,264

Other mechanisms to increase pay

• Pay category reviews:– The process recognises and rewards the general up-

skilling of specific groups within the ADF workforce. – Initiated by the Services.

• Allowance reviews– Salary related allowances are formally reviewed every

2 years.

Recent Salary Reviews• 2010

– Medical Officers restructure– ADF Investigators (PG 5 to PG 5 & 6)– Army and Air Force Physical Training Instructors (PG 3 & 4 to PG 3 - 5)– Ground Base Air Defence (PG 2 – 5 to PG 2 – 6)– Surveillance Target Acquisition (PG 1 - 5 to PG 2 – 6)– Royal Australian Infantry Corps (PG 1 - 5 to PG 1 – 6)– Air Base Protection (new category PG 1 & 2)– Navy Aviation Support (new category PG 2 – 5)

• 2009 – Aviation (OARS) introduction

Recent allowance reviews

• Currently 17 pay related allowances• 2010

– Reserve– Language Proficiency– Paratrooper– Separation– Special Forces Disability

Recent retention/completion bonuses

• 2010 – Navy Aircrew retention and completion bonus scheme review.

– Bonus framework introduced.

Why are we consulting?

• COSC requirement,

• DFRT requirement,

• ADF Remuneration Framework, and

• To obtain member feedback.

Provide Feedback

• Determine Support for WRA as demonstrated by:– Mailbox feedback

– Feedback Form

– Show of hands at briefings.

– Formal reporting of support through chain of command.

Where can I get more information or provide feedback?

• Web (follow Workplace Remuneration Arrangement link):– DEFWEB – http://intranet.defence.gov.au/pac/– Internet – http://www.defence.gov.au/dpe/pac/

• Email: DMSAP.IPBS@Defence.gov.au• Fax: (02) 6127 2543• Post: Industrial Policy

Directorate of Military Salary & Allowances (Policy)BP35-3-07Brindabella ParkCanberra Airport ACT 2609

Summary of key WRA features:

• Total increases of 9% over 3 years.• 3 instalments:

– 4.0% with effect first available pay period that processing can occur

– 2.5% with effect 8 Nov 12– 2.5% with effect 7 Nov 13

• Expires 3 Nov 14

QUESTIONS?

SRP - Where can I get more information on the Non-Equipment

Procurement (NEP) reform stream?• SRP - http://intranet.defence.gov.au/oscdfweb/sites/srp/

(select: Strategic Reform Streams > Non-Equipment procurement)

• NEP Reform - http://intranet.defence.gov.au/dsgweb/sites/dsgreform/

• Navy - http://intranet.defence.gov.au/navyweb/sites/_home/(select: NGN/SRP)

• Army - http://intranet.defence.gov.au/armyweb/sites/srp_a/

• Air Force - http://intranet.defence.gov.au/raafweb/sites/AFI/comweb.asp?page=98403&Title=What%20is%20AFI%20%20SRP

SRP - Where can I get more info on the Workforce and Shared Services

(WSSR) reform stream?• SRP - http://intranet.defence.gov.au/oscdfweb/sites/srp/

(select: Strategic Reform Streams > Workforce and Shared Services)

• WSSR Reform - http://intranet.defence.gov.au/dsg/sites/wssrs/

• Navy - http://intranet.defence.gov.au/navyweb/sites/_home/(select: NGN/SRP)

• Army - http://intranet.defence.gov.au/armyweb/sites/srp_a/

• Air Force - http://intranet.defence.gov.au/raafweb/sites/AFI/comweb.asp?page=98403&Title=What%20is%20AFI%20%20SRP