Vol 25 Issue 4 Dec 2010
EdU
Independent Education Union South Australia Working with members in non-government schools
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Contents Secretorial – Rich private schools
4
IEU(SA) Executive 2011-2013
6
Changing of the guard
7
Independent Schools Queensland challenges AEUs funding stance
8
Community textile art project to promote work safety
8
Meet the Principals
9
ISSN 1448-3637 Published by Independent Education Union (South Australia) Inc. 213-215 Currie Street, Adelaide SA 5000 Phone: (08) 8410 0122 Fax: (08) 8410 0282 Country Callers: 1800 634 815 Email: enquiries@ieusa.org.au EdU is published 4 times a year and has a circulation of approximately 4000. Enquiries regarding circulation should be directed to the Communications Coordinator, on (08) 8410 0122.
Frankly Speaking – Actions speak louder than words
10
WorkCover: At what cost?
11
2011 IEU(SA) salary categories
12
2011 IEU(SA) membership fee structure
12
Can’t afford to join?
13
Sharing public sector outrage
14
Balancing Act – Paid maternity and adoption leave for 2011
16
Changes to CEA entitlements in Catholic EA
17
Putting a smile on the faces of children in Bali
18
What’s your problem – ask Dorothy
19
OHS Project – A handy book for health and safety in schools
20
IEU Representatives and Members Education Program
21
Book Review – Power in Coalition: Strategies for Strong Unions and Social Change
21
Lutheran Digest
22
(Vice President)
APHEDA – The power of multiplicity
23
Val Reinke (Nazareth College) (Treasurer)
Absolutely Super – Penchant for a pension?
24
NGS Super is considering a Sharia option
26
NGS Super leading out of the box
26
Editorial comment is the responsibility of Glen Seidel, Secretary.
Advertising Disclaimer Advertising is carried in EdU in order to minimise costs to members. Members are advised that advertising that appears in EdU does not in any way reflect any endorsement or otherwise of the advertised products and/ or services by the Independent Education Union (SA). Intending advertisers should phone (08) 8410 0122.
IEU(SA) Executive Members Margaret Sansom (Retired) (President) Glen Seidel (Secretary) John Blackwell (Retired) (Vice President) Jenny Gilchrist (Prince Alfred College)
Christopher Burrows (Cardijn College) Greg Elliott (St. Peter’s College) Sheryl Hoffmann (Concordia College) Noel Karcher (Christian Brothers College) Marlene Maney (Cardijn College) Stephanie Margitich (Gleeson College) Shirley Schubert (Cornerstone College)
DON’T FORGET TO ADVISE IEU(SA) IF: • You have changed address • You have changed your name • You have changed schools • Your employment status has changed (eg now working part-time) • You are going on unpaid leave • You are retiring or leaving employment – you can remain a member at a reduced rate • Resignation from IEU(SA) must be in writing Details can be forwarded by email to carlyd@ieusa.org.au or by fax: 8410 0282 or by post.
EdU December 2010 IEU(SA)
Secretorial
Rich private schools Glen Seidel Secretary of students received 78 per cent of funding ($28.8 billion), and non-government schools educating 34 per cent of students received 22 per cent ($8.1 billion).
The ongoing federal review of school funding has drawn the all too familiar lies, damned lies and statistics from the AEU. By selectively quoting federal funding levels instead of the total of state and federal government funding, we are presented with an obscene caricature of non-government schools as havens of privilege with their snouts in the public trough. The well-publicised plight of Annesley College struggling for its very existence is a harsh reminder of the commercial realities of the education industry. Heritage buildings and extensive lawns do not indicate extensive cash flows. Rather the opposite as maintenance costs add to running expenses. Working on Vladimir Lenin’s maxim that a lie told often enough becomes the truth, the AEU is again barraging us with the half truth of two thirds of money going to one third of students. It’s a pity that the truth can never be told often enough to be believed. When we look at the combined funding from state and federal governments, the picture becomes reversed. Total government funding for all schools was $36.9 billion in 2007-2008. Government schools educating 66 per cent
2011 direct debit dates If you intend to pay your fees by direct debit in 2011, please make a note of the following dates.
4
January 21
May 20
September 23
February 18
June 17
October 21
March 18
July 22
November 18
April 21
August 19
December 23
Systemic Catholic schools had 72 per cent of their running costs funded by the governments, whereas independent schools had on average only 42 per cent of their costs funded. Parents and other income streams are paying 28 per cent of a Catholic school’s costs and 58 per cent of those of an independent school. The South Australian picture is probably bleaker given that the levels of state government support in SA are lower than in other states. The review of school funding must not degenerate into squabbling between the public and private sectors over how to divide the pie. Every Australian student deserves tax-payer support for a sound education. Whether that support is from a state or federal government is pretty much immaterial. There will always be controversy over how need is measured when needs-based funding is distributed. Measures need to be simple, transparent and impervious to manipulation. I don’t want to spend 2011 in verbal conflict with another education union. I want to have input into a better model for the future. That better model will not be devised through territorial disputes and cross-border raids. At the end of the day, no government is going to discourage a schooling sector where parents pick up one third of the bill as well as pay taxes. It is time to face the social, political and economic realities and talk about a holistic school funding policy for all Aussie kids. Pictures speak louder than words.
IEU(SA) 2011 Reps Conference Monday, 28 February 2011 Education Development Centre, Hindmarsh Programs will be distributed in January.
EdU December 2010 IEU(SA)
Enrolments and funding 2007-2008
Australian school enrolments by sector and level 2009
Enrolment share by sector 1970-2009
Recurrent funding for school education in Australia 2007-2008
Average government recurrent funding per student for government students by state and non-government students nationally 2007-2008
Sliding scale of funding entitlement per student according to SES score
EdU December 2010 IEU(SA)
5
IEU(SA) Executive 2011-2013 Congratulations to the following candidates elected to the IEU(SA) executive.
6
Chris Burrows
John Coop
Michael Francis
Cardijn College
Rostrevor College
Mercedes College
Anthony Haskell
Sheryl Hoffman
Fil Isles
Noel Karcher
Saint Ignatius’ College
Concordia College
OLSH College
Christian Brothers College
Marlene Maney
Val Reinke
Marion Ryan
Glen Seidel
Cardijn College
Nazareth College
St Martin de Porres School
Secretary
EdU December 2010 IEU(SA)
Jenny Gilchrist Prince Alfred College
Changing of the guard Marg Sansom
John Blackwell
Marg has chosen the 2010 election as her time to stand aside from the IEU presidency and roll her sleeves up for what is already a very full and busy ‘retirement’. Marg has filled her role of IEU executive member with characteristic energy, dedication and wisdom since 1995. Fifteen years is a very long time to keep turning up to exec meetings. It is certainly above and beyond the call of duty.
John joined the 1999 executive and in 2000 became Vice President – a position which he has held until this year. John had a long teaching career at Walford and continued on with the IEU(SA) executive after his retirement from teaching. John’s matter-of-fact and assertive approach to issues faced by union members in their professional lives provided a very pragmatic sounding board to executive deliberations.
Marg is one of the original 1984 members and I’m sure her leaving the executive will not diminish her interest in the union and in educational and industrial issues. Marg has served as Vice President from 1995 to 2002 and as President from 2002 to present. She will continue as an IEU(SA) trustee on the NGS Super board and its marketing committee.
John, we thank you for your constant support over the years and we wish you well for the future. John is a great supporter of rallies and I remember fondly him proudly holding a banner at a Catholic rally saying ‘I am cheap but not nasty’. At our next rally, ask John if the sign is at least half true – and which half.
Thanks, Marg, for your wisdom and support over the years. You did make a difference and you will be missed.
Shirley Schubert Shirley is the counsellor at Cornerstone College and a lifelong advocate of justice and fairness. Shirley joined the IEU(SA) executive in 2000 and steps aside after a decade of union leadership at this level. Her input into deliberations was always focussed and considered – essential for effective decision-making. She undertook the Anna Stewart Memorial Project in 2004 and has had a hands-on involvement with Lutheran sector agreement negotiations. Shirley will continue her union work in the current Lutheran agreement negotiations and as her school’s branch rep. Thankfully, we haven’t seen the last of Shirley.
Greg Elliott
Stephanie Margitich
Greg is a teacher at St Peters College and he graciously agreed to fill a casual vacancy on the executive in 2009. He, however, chose to not recontest the position due to other demands on his time. It is always gratifying when capable and busy people agree to step up to take on such an important leadership role.
Stephanie has served one term on executive but has chosen to not recontest this election. She brought the perspective of a Catholic secondary school on a shared campus to our discussions. Stephanie also participated in the Anna Stewart Memorial Project in 2007. Her input into executive discussions was valuable and we are grateful for her willingness to give to her union her time and efforts.
Thanks, Greg, for your contributions.
EdU December 2010 IEU(SA)
7
Independent Schools
Queensland challenges AEUs funding stance Independent Schools Queensland has called upon the Australian Education Union (AEU) to present the public with the true facts on funding for schools, instead of being selective with their figures. Independent Schools Queensland executive director David Robertson said the AEU’s Public Schools for our Future campaign perpetuates the myth that private schools receive more government funding than their public counterparts. Mr Robertson said the reality is that total government funding for public schools in Australia in 2007/2008 was $28.8 billion, compared to just $2.9 billion for independent schools. “A student attending a government school receives about $12,639 each year, whereas a student attending an independent school receives only about $6,076,” said Mr Robertson. “The AEU campaign has skewed the figures by failing to take into account both state and federal government funding.
“The Australian Government is the main source of government funding for independent schools, with combined funding from state and federal governments providing approximately 40 per cent of the money given annually to independent schools. “The fact is that state schools receive 78 per cent of the total government funding for schooling, taking into account federal and state or territory government contributions.” Mr Robertson said Independent Schools Queensland wants to see every student, no matter what school they attend, given the best opportunity to receive an outstanding education. “The AEU’s persistent efforts to muddy the facts about funding do nothing to contribute to the important public policy debate on how governments can best contribute to excellent education outcomes for all students.”
“Under existing funding arrangements, state governments are responsible for providing about 90 per cent of the funding for government schools.
Community textile art project to promote work safety While serious work injuries and fatalities attract news when they occur, there is often little follow-up and recognition of the long-term impact these incidents have on family members, friends and colleagues. Across Australia, men are more likely to die at work than women: 92 per cent to 8 per cent respectively. And workers between 35 and 44 years of age (27 per cent) suffer more fatalities than other age groups. Workers in the transport and storage industries have the highest rate of fatalities at 25 per cent, with the construction industry following at 18 per cent. However, no matter what your age, gender or industry, any fatality or serious work injury has a significant impact on others. This impact is often not visible. Dealing with grief affects us all differently and has many consequences, in our families, at work, and among our friends and social networks. SA Unions, the Working Women’s Centre and the Australian Safe Communities Foundation are sponsoring a community textile art project to promote safety and
8
safe work practices. The project is called Life Quilt SA and has been inspired by a similar project in Canada in 2000. The Canada Life Quilt project commemorated the lives of 100 young people killed in work-related incidents and has been used since to promote safe work practices, touring to conferences, workshops and public meetings to encourage all to take responsibility for safety at work. The Life Quilt SA (LQSA) project will design and make a wall quilt to be used across South Australia to promote safety at work. It will be designed to draw together people affected by a significant workplace incident. Life Quilt SA will be coordinated by local textile artist Sue Morley. Workshops will be held weekly on Friday afternoons in Kent Town over a four-month period, commencing in February 2011. Experience in sewing or textile art is not a prerequisite to becoming a participant, but a willingness to contribute to and be involved in a community art project is. If you would like to be involved, contact the Working Women’s Centre on (08) 8410 6499 or by email at wwc@wwc.org.au
EdU December 2010 IEU(SA)
Meet the Principals Bruno Sartoretto Organiser that she does recognise faces from these sessions when they appear at interviews for teaching positions and makes a mental note of the interest that was shown by the applicant.
Yet another successful session was held at Wilderness School in October. Jane Danvers, Principal at Wilderness, gave the participants a brief introduction to Wilderness’ 126-year history. And, as always, a few gems were delivered at the sessions. One of which pertained to school and college open days and principal tours. Jane Danvers and John Konopka, Acting Principal at St Aloysius College, said that they would welcome potential applicants tagging along on a guided principal tour of their school or college, because this allows the potential applicant to see the school from a parent’s perspective. It was noted, though, that this should not be a pre-interview session but an opportunity to ask questions about daily school activity. Jane pointed out
Once again, the avenue of TRT (temporary relief teacher) roles as ‘a foot in the door’ was discussed and should not be overlooked. Jane recounted the story of one of the beginning teachers who undertook voluntary and TRT work at Wilderness. She impressed a senior teacher to the extent that the teacher approached Jane to say that she would be a valuable asset to the school. Needless to say, she is now a permanent member of staff. The principals invited the group to submit a CV and a request to be considered for TRT and mention their participation at the Meet the Principals session. An invitation one should not refuse! The IEU extends gratitude to Wilderness and to Jane because events such as these are always best held in schools, giving the participants a valuable look and feel for the schools that they may be applying to for employment in the near future. Our thanks are also extended to John Konopka, Acting Principal at St Aloysius College, for his valuable input and insight at the session.
Participants, including principals John Konopka (fourth from left) and Jane Danvers (fifth from left).
EdU December 2010 IEU(SA)
9
Frankly Speaking Actions speak louder than words Frank Bernardi Organiser program which staff were required to participate in, just as IEU negotiators had stated previously. However, their ability to nominate what was and wasn’t done and reject assertions put forward by the employers’ negotiators because of their intimate knowledge of their workload made it difficult for any other outcome to be reached. The employer negotiators acquiesced. St Columba was removed from the Comprehensive list. Given that the new Catholic collective agreement has now been voted upon and ratified, it is important to stop and reflect not just upon the achievements but also how they were achieved. As members work their way through the document it will become evident that much work and effort has gone into it. However, what won’t be apparent to many are the pivotal moments that made this document possible and which won many of the significant improvements. Take, for example, the closing stages of negotiations in which clear differences around which schools belonged in the CEA ‘Comprehensive’ list divided the two negotiating teams. It was obvious to IEU reps that both Nazareth College and St Columba College didn’t belong with this cohort of schools, as they did not have existing comprehensive curriculum extension programs. However, as month after month passed and the employer refused to acknowledge this was the case, it became apparent that an alternative strategy was needed to break the stalemate. Enter union members. Upon contacting the IEU reps at the respective sites and explaining the impasse, action was taken immediately. At Nazareth College, IEU reps approached local management to ask why the employer negotiators were insisting that Nazareth College belonged with the Comprehensive group. Management had provided information which confirmed that a comprehensive program did not exist and the CEA that did occur was done on a voluntary basis. A series of exchanges between school management and the CEO rectified the situation and an undertaking was given to Nazareth College IEU reps that the school would be removed from the Comprehensive list. Due to school holidays, IEU reps at St Columba College could not take similar action. However, owing to the urgency, it was decided that two IEU reps from the school would attend the next EA negotiating meeting during school holidays to assist with arguing the case for their school’s removal from the Comprehensive list. They duly attended and explained to the Catholic employers negotiating team there was no evidence to support the employer view. Neither could point to an existing CEA
10
Both actions took very little time to achieve their desired outcomes and staff at both Nazareth College and St Columba College, whether they know it or not, are indebted to their reps. It was clear that the employer negotiators wanted to implement a comprehensive CEA program at these sites as opposed to codifying what existed. There is a salient lesson to be learnt from this. Dry, intellectual conversation around a table doesn’t always win the day, no matter how much logic or truth supports your case. Early in the process, when negotiations struggled to be meaningful due to an insistence on waiting for a DECS outcome, members showed their displeasure. A series of responses occurred: a branch email campaign, a petition, a Sunday cathedral rally and the wearing of badges on worksites all indicated many staff were dissatisfied with the employer position. And while an immediate outcome, like that at Nazareth College and St Columba College wasn’t achieved, there is no doubt that such public displays played a crucial part in achieving the final product. Without that ‘pushback’ an employer could sit comfortably at the negotiating table, safe in the knowledge that no one cared or could be bothered. Apathy is the employer’s best friend. Agitation, on the other hand, may make people uncomfortable, but that is much less than the discomfort they would feel if the negotiated outcomes simply reflected what the employers wished for. So take a bow all those who did participate and I will leave you with three remaining actions to complete the process. 1. Celebrate an outcome that is groundbreaking on several levels. 2. Be involved in and monitor the new EA’s implementation to ensure compliance. 3. As not one non-union person (or a paid representative of) bothered to turn up to negotiate their claims, feel free to give non-members a membership form and ask them to join the union. Alternatively, you might suggest they would be morally obliged to receive out of the process exactly what they put into the process – nothing!
EdU December 2010 IEU(SA)
WorkCover: At what cost? Wendy Evans Organiser, Workplace Health
Many do go back to work. Many want to return to work. Many say once they are back in the classroom at work they forget about what’s going on outside.
According to WorkCover’s 2009-2010 annual report, unfunded liability fell to $982 million after a profit of $77 million. There were 19,740 claims from workers employed by registered employers. The average levy rate will decrease from 3 per cent to 2.75 per cent in 2010-2011. Funding for schemes was at 60.5 per cent at 30 June 2010. The WorkCover SA investment portfolio recorded a return on investment of 12.3 per cent. Sadly, nowhere in the report does it talk about the biggest cost, which is the human cost of workplace accident, disease and injury. One of WorkCover’s goals, according to its incoming CEO Rob Thomson, is ultimately to make a positive difference to the lives of the 34,000 workers who are injured each year in our state. The challenge for WorkCover is to ask injured workers if they believe that WorkCover makes a positive difference to their lives. I’m confident that WorkCover wouldn’t like the answer. Where are the options for injured workers? The changes in the legislation were supposed to provide better returnto-work outcomes for injured workers – change that was forced on us by our elected politicians. That change was supposed to do good things for workers, but as always, politics corrupted the noblest of stated intentions. We are well aware that injured workers’ salaries drop over time, firstly to 90 per cent and then to 80 per cent. Then, if for whatever reason they are still on the system after 104 weeks, they will probably have their weekly payments ceased altogether. Even prior to the claim being accepted, the injured workers are set up to enter the merry-go-round of doctor’s appointments and bureaucracy, causing the injured worker to relive the injury over and over again.
Some, however, are not able to return to work as quickly as they would like. They know that the longer they are away from work the harder it is to get back. They are forced due to their injury to stay at home. Then weeks go by and the pain is still there. Their family becomes frustrated because there is nothing they can do to help. Still, the injured worker believes they are in good hands and the health problems will be taken care of. Then the denials of the medical treatments ordered by the medical expert chosen by the injured worker begin to happen. The injured worker is already feeling insecure and lazy for not being able to work and provide for their family. They are bored to death because they have worked all their life and, even though the pain is intense and the medications cause them to sleep, they still feel they ought to be out doing something. Many find that they can’t consistently do anything because they have no idea which day will be a good day and which will be bad. They have doctor’s appointments to go to and they tire so much easier than they used to. When the pain is bad the medication they are prescribed makes them sleepy again. For some, the pain and depression are enough to make them think that suicide is the only way out of their awful mess. Thankfully, together their treating medical experts and their union are there to support injured workers, see them through the rough times and remind them how much their families need them. How long will our politicians allow this kind of suffering to go on? How long will society itself allow this to go on? Once again I ask, what is the human cost? When will injured workers become the true priority of the compensation system? They are the people it was designed for. When will human life and the quality of that life be more important than the almighty insurance dollar or the unfunded liability?
EdU December 2010 IEU(SA)
11
2011 IEU(SA) salary categories
ESO
Junior
Grade 1A
Members will have in this edition a reply-paid form to confirm their membership categories for 2011. As new Catholic pay rates are applicable from October 2010, it is timely for members to check that they are paying the correct fees. Part-time employees will need to multiply annual salaries by their FTE fraction.
Grade 1
ESOs in Catholic schools should also confirm with their pay offices whether they have been on the third year of service for 12 months (not necessarily full-time equivalent) in order to be placed on the new fourth-year rate. Please ensure that you send these forms back promptly. In the absence of a response by 14 January, it will be assumed that all category L and M members will be category M and N respectively as we keep the top of our fee structure in alignment with the top of the Catholic teacher salary scale. Teacher
Catholic
Step
Oct 2010
1
$49,818
H
2
$53,222
I
3
$57,451
J
4
$60,617
K
5
$63,814
K
6
$67,038
L
7
$70,289
M
8
$73,567
M
9
IEU fee category
$76,872
Grade 3
Grade 4
Grade 5
Grade 6
N
IEU fee category
Under 18
$30,370
E
18 years
$32,900
E
19 years
$35,710
F
20 years
$38,835
F
1st year
$35,412
F
2nd year
$38,383
F
3rd year
$40,384
G
4th year
$41,192
G
1st year
$41,192
G
2nd year
$43,498
G
3rd year
$45,767
H
4th year
$46,897
H
5th year
$47,835
H
1st year
$47,835
H
2nd year
$48,545
H
3rd year
$49,603
H
4th year
$50,595
I
1st year
$51,032
I
2nd year
$52,026
I
3rd year
$53,453
I
4th year
$54,522
I
1st year
$55,937
J
2nd year
$57,406
J
3rd year
$58,874
J
4th year
$60,051
K
1st year
$60,906
K
2nd year
$63,814
K
3rd year
$66,723
L
4th year
$68,057
L
1st year
$72,540
M
2nd year
$75,448
N
10
$79,814
N
3rd year
$78,256
N
AST
$82,475
N
4th year
$79,814
N
2011 IEU(SA) membership fee structure * 5% discount applies if full yearly payment is made before 25 February 2011. Invoices will be issued to yearly and half-yearly payers at the end of January.
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Grade 2
Annual gross salary as at Oct 2010
Category
Gross annual salary
Yearly*
Monthly
B
Less than $20,000 pa
$175.00
$14.60
C
$20,001 - $25,000 pa
$220.00
$18.35
D
$25,001 - $30,000 pa
$265.00
$22.10
E
$30,001 - $35,000 pa
$310.00
$25.85
F
$35,001 - $40,000 pa
$355.00
$29.60
G
$40,001 - $45,000 pa
$400.00
$33.35
H
$45,001 - $50,000 pa
$445.00
$37.10
I
$50,001 - $55,000 pa
$490.00
$40.85
J
$55,001 - $60,000 pa
$535.00
$44.60
K
$60,001 - $65,000 pa
$580.00
$48.35
L
$65,001 - $70,000 pa
$625.00
$52.10
M
$70,001 - $75,000 pa
$670.00
$55.85
N
$75,001 pa and above
$715.00
$59.60
EdU December 2010 IEU(SA)
Can’t afford to join?
Think again. Real pay increases even after IEU fees. Pay rates in the latest Catholic EA clearly demonstrate the value of an active union membership in securing agreement outcomes. Every category of employee will not only receive a higher pay increase than they would have had the DECS outcome been applied, they will still be significantly better off after their 2011 IEU fees. ESOs Junior
Grade 1A
Grade 1
Grade 2
CURRENT Annual Gross NEW Annual Gross Better off than a flat Salary as at 1/10/09 Salary as at 1/10/10 DECS 4% as at 1/10/10
Better off after 2011 IEU fees
Under 18
$28,651
$30,370
$573
$263
18 years
$31,038
$32,900
$621
$311
19 years
$33,689
$35,710
$674
$319
20 years
$36,637
$38,835
$733
$378
1st year
$33,408
$35,412
$668
$313
2nd year
$36,210
$38,383
$725
$370
3rd year
$38,098
$40,384
$762
$362
4th year
NA
$41,192
$1,570
$1,170
1st year
$37,861
$41,192
$1,817
$1,417
2nd year
$41,036
$43,498
$820
$420
3rd year
$43,177
$45,767
$863
$418
4th year
$44,243
$46,897
$884
$439
5th year
NA
$47,835
$1,822
$1,377
1st year
$44,835
$47,835
$1,206
$761
2nd year
$45,797
$48,545
$916
$471
3rd year
$46,796
$49,603
$936
$491
$50,595
$1,928
$1,438
4th year Grade 3
Grade 4
Grade 5
Grade 6
1st year
$48,144
$51,032
$962
$472
2nd year
$49,081
$52,026
$982
$492
3rd year
$50,428
$53,453
$1,008
$518
4th year
NA
$54,522
$2,077
$1,587
1st year
$52,770
$55,937
$1,056
$521
2nd year
$54,156
$57,406
$1,083
$548
3rd year
$55,541
$58,874
$1,111
$576
4th year
NA
$60,051
$2,288
$1,708
1st year
$57,458
$60,906
$1,149
$569
2nd year
$60,202
$63,814
$1,204
$624
3rd year
$62,946
$66,723
$1,259
$634
4th year
NA
$68,057
$2,593
$1,968
1st year
$68,434
$72,540
$1,368
$698
2nd year
$71,178
$75,448
$1,423
$708
3rd year
$73,827
$78,256
$1,476
$761
4th year
NA
$79,814
$3,034
$2,319
Teachers
Catholic
Catholic
DECS
DECS
Better off than DECS
Step
Oct 2009
Oct 2010
Step
Oct 2010
Oct 2010
1
$47,902
$49,818
$48,533
$1,285
2
$50,930
$53,222
3
$54,715
$57,451
1
Better off after 2011 IEU fees $840
$48,533
$4,689
$4,199
$55,665
$1,786
$1,251 $1,500
4
$57,457
$60,617
2
$58,537
$2,080
5
$60,202
$63,814
3
$61,409
$2,405
$1,825
6
$62,946
$67,038
4
$64,277
$2,761
$2,136
7
$65,691
$70,289
5
$67,156
$3,133
$2,463
8
$68,434
$73,567
6
$70,026
$3,541
$2,871
9
$71,178
$76,872
7
$72,897
$3,975
$3,260
10
$73,827
$79,814
8
$76,781
$3,033
$2,318
AST
$76,288
$82,475
9
$79,816
$2,659
$1,944
EdU December 2010 IEU(SA)
13
Sharing public sector outrage The 2010 State Budget has outraged public sector unions and the IEU shares that outrage. The Rann government is pushing legislation through Parliament that will take industrial entitlements from all public sector workers. The government, when acting as employer, agreed to enterprise agreements with no reference to the removal of leave loading or the cutting back of long-service leave entitlements. Before the state election in March, the government gave written assurances that there would be no forced redundancies of public sector workers under a re-elected Labor government.
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Now comfortably back in power, Rann has threatened that there will be forced redundancies if there aren’t enough volunteers to go willingly. And legislation is being fasttracked to achieve industrial outcomes that should have been negotiated in the recent agreements, if that was the government’s claim. The savaging of WorkCover and this betrayal must make all ‘true believers’ shake their heads and wonder what happened to the core values of the workers’ party. Foley may think unions are dinosaurs, but the rallies he precipitated can serve as his own personal Jurassic Park.
EdU December 2010 IEU(SA)
Unions rally in support of Lilydale Chickens employees
EdU December 2010 IEU(SA)
15
Balancing Act
Paid maternity and adoption leave for 2011 Louise Firrell Organiser/Educator receive their previous entitlement plus the government’s eighteen weeks. Westminster school assistants will have their entitlement reduced by the amount of the government payment.
Unless you have been out of touch with the media for quite some time, you will know that, as of 1 January 2011, the federal government’s paid parental leave scheme will take effect. Subject to an income cap of $150,000 pa, new mothers will be eligible for 18 weeks’ leave paid at the minimum wage (currently $570 per week), accessed by application to the Family Assistance Office. For the first six months of the scheme, employers will be able to choose whether they or the Family Assistance Office make the payments to eligible employees. After that, employers will receive the funds to pass on to their employees. While unions and other lobby groups were campaigning for the government to introduce some form of paid leave, and after the Productivity Commission released its initial recommendations for a scheme, the question of how it would work alongside existing employer paid leave began to be considered. When school enterprise agreements were being negotiated, a number of employers began to consider variations to their quantum of paid leave to take advantage of the proposed government scheme, which in effect would have reduced existing entitlements. The IEU pointed out that the baby bonus was, at that stage, available to women who gave birth, irrespective of any leave paid by their employer. The proposed paid leave scheme would not, in fact, result in a significantly larger sum of money overall because payments would be taxable and, in turn, may have an effect on a family’s other tax rebates. So, to reduce already negotiated entitlements would be a reduction in overall benefits. Despite this, a small number of schools did vary their new agreements in this way. As a result, women who take maternity leave at Walford, St Peters Collegiate and Pulteney Grammar will have their government payments ‘topped up’ to match their usual rate of pay, rather than
16
This situation was never the government’s intention when it introduced the scheme. The legislation specifies that existing employer-negotiated leave will remain as it is. But, because these schools changed their agreements before the legislation was passed, they stand. It is disappointing that schools have engineered a reduction in their commitment to an important family-friendly provision. But it is even more disappointing when two of these are schools which educate young women and should be examples of best practice for their female staff and students. These agreements are the worst examples of an attitude that is still evident in workplaces around parenting leave entitlements. On the one hand, a number of women, who have managed their childbearing and rearing without the benefit of some of the conditions which are now emerging to assist women and their families, seem to approach this provision with a punitive mindset. ‘I managed without anything like that so why should you have it any easier?’ one principal was noted as saying during discussions. Why such an attitude persists is not obvious, because you tend not to hear women making statements such as ‘I don’t see why banks approve loans to women these days. What was wrong with having to have a male guarantor?’ or ‘I long for the days when I was paid two-thirds of the salary my male counterparts were paid’! Hand in hand you have business managers who are focussed on their financial ‘bottom line’, who ask the question ‘What does the school get out of this?’ They see paid parenting leave as an undeserved ‘bonus’. They overlook the value of a committed employee who will return to the workplace, bringing with them training, organisational knowledge and commitment. That is not something that can be articulated as a simple dollar value. On 3 November we celebrated the thirty-fifth anniversary of the first sex discrimination legislation in Australia, passed by the Parliament of South Australia in 1975. As we reflect on what has been achieved by a stalwart cohort of women and men (former Premier David Tonkin was the initiator of the first bill), we are acutely aware that we still have more work to do to change attitudes and continue to effect change.
EdU December 2010 IEU(SA)
Changes to CEA entitlements in Catholic EA
Frank Bernardi Organiser There are some very important changes in the new South Australian Catholic Schools Enterprise Agreement 2010, not least of which are those relating to curriculum extension activities (CEA). Other than the caps, based on the 2003/2004 benchmarks, that were imposed at individual sites, the previous enterprise agreement provided no regulation of CEA. The changes introduced by the new EA, therefore, are ground-breaking. First, it is essential to understand that while the definition of CEA has changed only slightly, it is still significant. Curriculum extension activities are all those activities that fall either within non-timetabled time (e.g. before or after a regular day’s lessons) or outside the school’s span of hours (e.g. early weekday mornings or late weeknights or weekends). This includes activities such as camps, excursions, sporting activities, pedal prix, speech days /nights, graduation ceremonies, debating, open days, fetes, rehearsals and performances of school productions, concerts and choirs and so on.
Category 1 – Primary Schools. Teaching staff can be required to attend up to a total of five hours of CEA per annum without remuneration. Category 2 – Secondary (including Marymount College) and Special Schools. Teaching staff can be required to attend up to a total of 20 hours of CEA per annum without remuneration. A further 40 hours can be required on top of this, but is paid at the flat rate of $25 per hour. Category 3 – Comprehensive. This refers to the schools identified as having existing comprehensive CEA programs. In these 15 named schools, teaching staff can be required to attend up to a total of 30 hours of CEA per annum without remuneration. A further 50 hours can be required on top of this and, like Category 2 schools, it is paid at the flat rate of $25 per hour. The key difference for Category 3 teachers is that, to offset the extra requirements for CEA, the length of the school year is 39.5 weeks rather than 40 weeks. No more can be asked of a teacher. This is their CEA commitment complete.
It is important to note that, previously, religious observances and spiritual activities were included, but that is no longer the case. Masses and liturgies, for example, relating to graduation, class and sacramental programs, are no longer counted and are now regarded as a professional commitment that you can be required to attend.
However, teachers in all three categories can elect to do more than what is required by the category in one of two ways.
The second significant variation is the fact that while camps and retreats are still regarded as CEA, they are no longer counted in the CEA load, but instead paid at a flat rate of $150 per night. It is also worth noting that the employee can negotiate to trade the $150 per night payment for time off in lieu or debit against their ‘unpaid’ tier one requirement.
2. Individual Flexibility Agreement. The individual negotiates the commitment and remuneration (as outlined in Clause 12 of the EA) above the paid thresholds.
The other major changes are organisational and relate to what can be expected and how it will be remunerated. To facilitate this, a new CEA structure has been designed, built around the new understandings mentioned above. Schools are now divided into three distinct categories. Each category then contains tiers which outline the associated workload.
1. Volunteer. The individual participate in CEA above the paid thresholds for no remuneration.
This extra workload can only occur after a risk assessment is done to ensure the health and wellbeing of the teacher. There are some important additional provisos within the detail of the CEA clauses that are mandatory reading. The clauses include topics such as exemptions from participation, exclusion of activities that are compulsory SACE subjects, interstate and overseas trips, community events, specialist and POR positions connected with CEA, and when payment occurs. A final, commendable key feature of the new CEA structure worth mentioning is that time allocations will be negotiated for all activities. This means that each activity will include a pre-determined duration allocated to practice or rehearsals, to games or performances, and to travel, set-up and pack-up. These are to be set and fixed by the school in consultation with staff. Once known, these payments must be paid irrespective of whether or not the sport or activity has taken place. So, if an activity is cancelled due to hot or wet weather policy, or the other team forfeits, then that time is still to be included in the total and remunerated.
EdU December 2010 IEU(SA)
17
Putting a smile on the faces of children in Bali Rosalie Langley Since 2007 I have been travelling to Bali once a year to teach in the kindergartens and schools around Ubud, Wanagiri and Munduk. I take educational resources for them, including books and lesson plans, and I help the teachers to create developmentally appropriate programmes for children aged three to six years in kindergarten. I then go to the school to ‘team teach’ with an Indonesian teacher and do English lessons. The students and teacher learn English and I learn Indonesian.
I told them they were for the anak-anak (children) in Wanagiri and Munduk and that I was a guru (teacher) from Australia. “Oh, terima kasih,” (thankyou) they said with big smiles as they packed up the huge box of dictionaries.
What I have found from past years is that it is very rare for anyone in Bali (but especially up in the mountains) to have an English-Indonesian dictionary. They are like gold up there; everyone wants to get their hands on one, no matter what their age, so they can improve their English, get a better job (most probably in tourism) and escape the poverty cycle. As without a good foundation in English, the people are trapped in the same jobs as their parents, grandparents and so on.
I went to the school the next morning and gave the dictionaries out to the year 4, 5 and 6 classes at Wanagiri Elementary School. The students each proudly put their names in their personal dictionaries and also wrote that they were donated by the IEU in South Australia in 2010.
Those jobs might be cutting grass on the side of the road for other people’s animals, working in other people’s rice paddies, carrying bamboo and bricks on their heads up and down a mountain to make houses, or collecting plastic bottles and rubbish. I was therefore so excited when the IEU gave me $200 to buy some dictionaries. I went to the bookshop in Denpasar and bought about 80. I cleared off two whole shelves in the store and the staff looked at me in amazement, wondering why I had bought so many dictionaries!
18
It took two men to carry it out of the shop for me and then I had to straddle the huge box on a motorbike as a young Indonesian military man wound his motorbike through the heavy traffic, taking me and the huge box back to the place where I was staying before I went up to the mountains.
I had to teach the children how to use a dictionary by writing some English and Indonesian words on their tatty old white board with the page number next to them. It took some time, but by the third lesson they were doing really well and using the dictionaries to look for words in English that they had to translate into Indonesian. They were absolutely grateful for these dictionaries. They take them home each night and bring them back to use at school each day. This generous gift will help change a child’s life and hopefully get them better jobs in Bali. This has a positive effect beyond the child, too, as the children use and share their English lessons and knowledge with every member of their family. It goes to show you that one person can make a difference.
EdU December 2010 IEU(SA)
What’s your problem...? an interactive column
If you have a question about your employment conditions that requires a prompt response, call the office and ask to speak to the duty officer of the day. If it is something that is not urgent, or you think that may be generally relevant to other members, send an email to dorothy@ieusa.org.au Identify yourself by name or membership number and any queries that are not selected for publication will be responded to personally.
A fair deal for TRTs
Q.
Dear Dorothy, Whilst teacher salaries in government and non-government schools generally track in a close band, there is a big gap for temporary replacement teachers (TRTs). In DECS schools, TRTs are paid at their incremental step (with 25 per cent loading). In most non-government schools, they are paid at the starting salary of step 3 (with loading). Irrespective of experience and qualifications, a step 10 teacher doing TRT work in a Catholic school (even after the new agreement) will receive $275 per day, which is $107 per day less than the step 10 rate. The requirement to pay the incremental step for five or more days is open to rorting if a school splits longer periods of TRT work between different people so none works more than five continuous days to earn the higher rate. In Catholic schools, it is also complicated for part-time teachers taking on extra work because of the distinction required between work with their own class and someone else’s. In view of the unfairness and inconsistencies in the rates of pay for TRTs, the union should make it a priority to fight for improving pay for them. Relief teachers working in a range of schools on a casual basis are less able to negotiate than permanently employed colleagues. Did you know that TRTs are entitled to longservice leave? Undervalued
A.
Dear Undervalued, You have identified the biggest single shortfall in market rates suffered by non-government schools now that the government is attempting to legislate away the public sector long-service leave rate of 15 days from 15 years. There are some schools still clinging to the old state award pay rates of step 1 – a step at which one cannot actually gain teacher registration. Some schools actually have EAs paying TRTs their appropriate step, but can get around that by employing TRTs through agencies paying lower rates. TRT pay rates are a standard item on most EA logs of claims, and generally the item is raised by the organiser rather than the members. Employers fold their arms and say they have no trouble getting TRTs, so the price must be acceptable. They point to a lack of preparation and marking, but neglect the skill set needed to keep ad hoc classes on task, the fact that TRTs are generally deployed every available minute of the day, and that they are expected to be available at very short notice. I have even had it seriously suggested that the work is so much easier in a particular school because of the nature of the students. Some TRTs work because they want/need to earn a bit of money in retirement. Some need the parttime work whilst seeking permanent positions. It is no wonder that so many TRTs hold back from accepting a non-government TRT in favour of a DECS job. There is nothing to prevent an employer paying a higher rate to a regular proven TRT, even for shorter periods. I wonder how many other TRTs know that continuous service with an employer as a TRT does count for long-service leave? The 25 per cent loading only compensates for sick leave, public holidays and term breaks. TRTs also get to vote for school EAs if they are employed during the voting period (but obviously only at one school). We will keep plugging away, but it may be a matter of educating your colleagues as much as the employers so the topic gets traction at the negotiating table. Dorothy
EdU December 2010 IEU(SA)
19
OHS Project
A handy book for health and safety in schools Gerry Conley Union Education Officer
The handbook provides information on the process of electing a HSR and their rights to be consulted on OHS&W issues on behalf of all staff. It explains how a HSR can use their powers to resolve health and safety issues if management refuses to accept that any risk might exist.
One of the objectives of the Health and Safety Partnership Program is to develop resources to support HSRs, members of health and safety committees and IEU representatives in their role of representing, maintaining and promoting the health, safety and welfare of workers in non-government schools. So, the IEU has produced the Health and Safety Handbook, which will be a valuable tool for our representatives in the continuing battle to make our schools safer and healthier. But we also hope it will encourage IEU members to become involved in the representative structures provided by OHS&W legislation. And, in those schools that don’t have one already, we hope it will encourage members to elect a HSR and become involved in a health and safety committee. You might ask, ‘Well, what’s different about a health and safety handbook from the policies and procedures that we have in our schools now?’ And we might answer, ‘Do any of your school’s policies promote the rights of staff to elect a HSR, who has the power to ensure that all health and safety hazards that arise at school are addressed? Do they describe how a health and safety committee must be set up? Do they outline all the employer’s responsibilities; one of those being the requirement to consult staff on any matter that affects their health and safety?’ And consultation means being able to have input into the development of policies and procedures, not just being told to follow them once they have been implemented. The handbook outlines the legal responsibilities of all the workplace parties: employers, employees, the people who make and supply the equipment and tools you need to do your work, contractors, parents and students. It describes what employees can do can take some control over how health and safety issues are addressed in schools.
20
And then it looks at how the risk management process works, all the different methods through which hazards can be identified, and details how to assess the risks presented by hazards. And, of course, it explains the proper process of controlling risks through the preferred order of controls; looking first at the possibility of removing any risk from the hazard, before exploring other options. The handbook also provides detailed information on eight specific hazards which have been identified as causing the most problems for employees in schools: • • • • • • • •
workplace bullying workload burnout dealing with challenging students hazardous substances hot weather work, whether working inside or outside manual handling slips, trip and falls, and voice protection.
For each of these hazards the handbook provides information for HSRs, IEU reps and members to determine what is an issue in your school. Then it describes the risk to employees’ health or safety if the hazard is not addressed, before detailing options for controlling any risk. The section on slips, trips and falls also includes a useful risk management tool adapted from a publication by Workplace Health, Queensland. These, of course, aren’t all the hazards that school employees face at work, and we hope to provide information on further hazards in the future, as it is expected that the handbook will be updated and made available in the member’s section of the IEU website. The Health and Safety Handbook will be officially launched at the IEU Reps Conference next February, but we will get copies at least to members who have been elected as HSRs before then. We hope it will prove to be a useful tool for HSRs, reps and all members, and assist in improving the approach to OHS&W in your school.
EdU December 2010 IEU(SA)
IEU Representatives and Members Education Program Gerry Conley Union Education Officer Union training is probably not a high priority for reps and members at this time of year. But, as you enjoy your holiday and put 2010 behind you, there are a few things you might want to think about for 2011. First off, for reps, set Monday 28 February aside for the 2011 Reps Conference at the Education Development Centre, Hindmarsh. All reps will receive a program early in Term 1 inviting them to attend. Eighty-six attended the very successful 2010 conference and we hope to better that number next year. For new reps, or those who have yet to attend reps training, the introductory reps course is a must to find out about your role and rights, where you fit in the IEU structure, and to learn skills in how to effectively represent members and promote the union in your workplace. Continuing reps courses for more experienced reps will be offered again throughout the year with one-day courses on specific skills and legislative information.
Power in Coalition – Strategies for Strong Unions and Social Change
Consultative committee (CC) courses will be held for all members of CCs. Many enterprise agreements allow a day a year for employee representatives to attend IEU-run CC courses, which provide the confidence and skills needed to effectively represent your members at meetings. We will also be presenting a series of after-school, onehour workplace bullying workshops for reps, HSRs and members. These will explore proven techniques for both individuals and groups to use to block bullying behaviour. The popular one-hour sessions on advanced skills teacher (AST) applications will also be held after school. The first semester training program for 2011 will be distributed to all reps early in Term 1 and we hope to see many of you at IEU training next year. In the meantime, have a wonderful and relaxing break.
Book Review Louise Firrell
by Amanda Tattersall Allen and Unwin, 2010 While it only takes one person to begin a movement for change, gaining support from others and being able to exert influence at a decision-making level is fundamental to effecting change.
‘Social movement unionism’ has been demonstrated to be not only effective in bringing about change but in building and renewing partnerships within the coalition in the process.
The union movement, with the collective strength of its membership, has swayed both public and political opinion to improve the lives of working people over the last century and a half. However, with changing patterns of work and the political, social and economic climate, unions, like other movements for social and environmental change, need to begin to explore new paradigms for achieving their goals.
Tattersall observes that for some unions who no longer have the membership density to be a significant force in their own right in the current political climate, ‘workers united are frequently defeated’. While there is still a place for the traditional union show of strength in public rallies, it is no longer the only way to demonstrate cohesiveness and support for the issues.
Amanda Tattersall is a community organiser, and her book, Power in Coalition – Strategies for Strong Unions and Social Change, examines some recent and successful union and community coalitions in Australia, Canada and the United States. She analyses how strong coalitions can broaden a union’s vested interests into a wider social agenda which adds weight and relevance.
The case study of particular relevance is the NSW Teacher’s Federation campaign for improved working conditions and better student outcomes in the late 1990s. As a result of a public education coalition consisting of principals, parent bodies and the NSW Teacher’s Federation, significant gains were made in resourcing public education.
EdU December 2010 IEU(SA)
21
Lutheran Digest Louise Firrell Organiser/Educator This year has seen the IEU and schools coming to grips with yet another wave of changes to industrial relations, which regulate the way we are able to go about the business of agreement-making and problem-solving in the workplace. In May this year, in anticipation of negotiating a new agreement for staff in Lutheran schools, the IEU sent its log of claims to the LSA. While the ‘shopping list’ had the usual items, such as salary, maternity leave and workload matters, the new agreement would ultimately be quite different from any of the previous agreements. The old state awards that had formed part of conditions for all non-government schools in SA since 1985 would be gone forever. The new agreement would contain all the agreed conditions from those, as well as matters from the previous enterprise agreement and new matters arising from the log of claims. Just when we thought everything was proceeding according to plan, the LSA indicated that they wanted to discuss a single agreement for Lutheran schools in SA, NT and WA. A federal election then got in the way of their efforts to gain a single-interest declaration from the Minister of Workplace Relations, but preliminary discussions with all of the stakeholders were held in anticipation of that eventually being granted.
The LSA and the IEU SA, NT and WA branches are still waiting for the necessary declaration from the Minister, which will enable us to begin negotiating an enterprise agreement to cover Lutheran schools in SA, NT and WA in 2011. But the SA negotiating team – Shirley Schubert (Cornerstone College), Sheryl Hoffman (Concordia), Jenny Patching (Loxton Lutheran) and Louise Firrell (IEU) – have met to make preliminary preparations. The team will be setting up communications with the IEU representatives from NT and WA and begin looking at which parts of each state’s current agreements are common to all and which are not. While there is much that is shared, at least in principle, there are a number of significant differences which will be challenging to manage. Each state has different classification structures for teachers and LSOs, as well as corresponding salary schedules. As the LSO Classification Working Party in SA has spent many hours developing a revised and improved classification matrix for LSOs, which has been endorsed by ballot in SA, it will be something that we are sure LSOs in SA will be keen to retain. Each of the IEU branches has committed to genuinely engage in the process of negotiating a three-state agreement. However, members can be confident that it will only happen if we believe that the agreement will be in the best interests of staff in Lutheran schools in SA.
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EdU December 2010 IEU(SA)
APHEDA
The power of multiplicity In 2001, soon after the nation had overwhelmingly voted for its independence, a small workshop in central Dili was buzzing with anticipation. With funds from APHEDA donors, the Labour Advocacy Institute for East Timor (LAIFET) was holding some of its first carpentry training for under- and unemployed men in the area. Clemente, now 43, was one of those men. Married with four daughters and a son, Clemente first heard about APHEDA through LAIFET: “I have learnt many things from APHEDA training projects which were funded through LAIFET.” He recalls his first order (five doors with frames, one window and four window frames) and where his first modest profits went: “I used the money to buy some power tools and daily needs.” These days, Clemente continues to run his successful and much expanded workshop, but also now shares his skills working as LAIFET’s head trainer. So far, nearly 80 men have benefited from Clemente’s hard work – and the numbers continue to grow. Travelling to the districts, Clemente eats, sleeps and works with his colleagues, helping them to upgrade their skills and improve their incomes for themselves and their families.
of Australian supporters, APHEDA covered the remaining costs for a heavy-duty thicknesser and bandsaw. After a decade of working to develop his workshop and learn the finance and management skills needed in running his own business (also held through LAIFET and APHEDA), Clemente now receives orders from many different people and organisations – even other NGOs! “Recently, I got two orders from the government. The education department have asked me to make 200 school blackboards with the total payment of US$5,600. And the finance ministry has asked me to make 39 filing shelves, with the total payment of US$1,500.” “I am known as a good carpenter who can produce good quality pieces. My customers trust me 100 per cent.” In a city where ‘everyone knows everyone’, it’s little wonder Clemente prizes his solid reputation as his greatest achievement. “It’s important that APHEDA supports people over the long term. I know that in the past some international support has set up carpenters’ workshops in the districts, but due to very short commitments, once they stop the support, the workshop also shuts down. I am so happy because APHEDA support us for the long term to increase our skill and capacity through training.”
But he was never alone on his journey. Thanks to the efforts of a long-term APHEDA volunteer, the opportunity arose in 2004 for Clemente to join APHEDA on a study tour to Western Australian carpentry workshops. “I felt very shocked!” Clemente recalls. The workshops, the hardware stores and the equipment in Perth all seemed so huge. “But once we flew to Broome, I was more relaxed, because it was just a small workshop. I am honest that before travelling to Broome, I don’t know how to use the lathe machine, but me and five of my colleagues learnt on it for three days”.
With the income he has earned, Clemente and his wife have built themselves a home, can now afford a motorbike for their children, and have sponsored Clemente’s youngest brother to finish his master’s degree in Indonesia.
Returning to Timor-Leste, Clemente had only one goal in mind: “I started to think on how to develop my workshop and worked very hard for three years to purchase two big machines.” Clemente paid 50 per cent and, with the help
Clemente’s workshop currently hires three other men and creates quality pieces to order, including furniture, Tais screens (room dividers made using the traditional Timorese weaving), doors, windows and computer desks.
When asked what he would say to APHEDA’s donors, Clemente replies: “That APHEDA have done very good work. Because of APHEDA, many groups have had success. APHEDA holds many good trainings and assists groups to draft proposals so that they can get support from other companies and the government.”
Photograph © Scott McKinnon
EdU December 2010 IEU(SA)
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Absolutely Super Penchant for a pension?
Bernard O’Connor NGS Super
pension division returns should generally exceed the superannuation division returns for the same investment option. Here’s how the transition-to-retirement pension works in practice.
It’s clear that government policy aims to encourage workers to provide for their own retirement by drawing a pension from their accumulated superannuation savings. Thus, the idea arises that your super fund will be a trusted partner from the beginning of employment until well into retirement – a cradle-to-grave scenario. NGS Super offers two types of pensions: a transition-toretirement pension and a regular account- based pension. For both types of pensions, payments can be made monthly, quarterly, six-monthly or annually. NGS Super pays its pension members on the first business day on or after the fifteenth of each month and we expect to offer fortnightly payments in 2011. Certain ‘triggers’ for eligibility apply and are age-based as well as being contingent upon whether the member is still working. For a regular account-based pension, the recipient must have reached age 55 and have retired from the workforce. This age (called the preservation age) is set to go up to 60 for those born after 1964. At age 60 an account-based pension may begin with cessation of employment and these payments become tax-free to the recipient. At age 65 full tax-free pension payments are available even in the case where the member is still working. The minimum amount of pension payments is 2 per cent of the entire balance for anyone under 65 and 2.5 per cent of the balance for anyone aged between 65 and 74 for the 2010/2011 financial year. A transition-to-retirement pension allows members to draw down pension payments while still working. The same agebased rules apply, but there is an annual 10 per cent limit to the amount that may be drawn down from the pension account. The minimum deduction per annum is 2 per cent for those under 65. Significant tax concessions provided to pension members include no tax on their investment earnings and no tax on draw-downs after age 60. Currently superannuation funds must pay a 15 per cent tax on investment earnings as well as a reduced capital gains tax. So, in a rising market, the
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Mary Smith is 62 years old and has accumulated $270,000 in her account as a result of her work in schools. She now wishes to reduce her workload to .5 FTE or two-and-onehalf days per week. She may withdraw 10 per cent of her account balance while still working part-time so she decides to take $27,000 per year or $2,250 per month to supplement her reduced income. This will enable her to ‘transition’ to retirement and, when she fully retires, she can either continue the pension with no upper limit or access her money as a lump sum. She will pay no tax on this income stream as she is over 60. Conversely, if Mary wants to keep working full-time, she may access her pension payment and increase her salary sacrifice contribution into her super account because of the increased cash flow. She will have to stay within the contributions limit, which is currently set at $50,000 for anyone over 50 with less than $500,000 in their account. However, due to the concessional tax for superannuation, she is now paying less tax because of her salary sacrificing. Both account-based pensions and transition-to-retirement pensions are designed to provide an income stream while the account is still invested in a tax-free environment. Another interesting feature of these products is the fact that direct payments can be made from specific investment options according to preference. For example, it is possible to specify payments to be made from the cash component of a pension account in times of declining investment markets to minimise the loss. So, how much is enough? It all depends on lifestyle, other assets held, retirement age, investment performance and, of course, longevity. For more information, please refer to the Pension Members section on the NGS website, www.ngssuper.com.au (Disclaimer: The information in this article is general information only and does not take into account your objectives, financial situation or needs. Before making a financial decision, please assess the appropriateness of the information to your individual circumstances, read the Product Disclosure Statement for any product you may be thinking of acquiring and consider seeking independent advice from a licensed or appropriately authorised financial advisor.)
We take socially responsible investing seriously Our Green Shares investment option uses specific criteria to identify companies both in Australia and internationally that contribute to a socially and environmentally sustainable world. At NGS Super, we believe it is important that you have the opportunity to make a socially responsible investment choice. If you care about the environment then the Green Shares option may be for you. For more information about our Green Shares option, please visit www.ngssper.com.au/investments
www.ngssuper.com.au 1300 133 177
NGS Super is considering a Sharia option Louise Firrell Organiser/Educator The term ‘Islamic banking’ refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) and guided by Islamic economics. In particular, Islamic law prohibits ‘usury’, the collection and payment of interest. Islamic law prohibits investing in businesses that are considered unlawful, such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values. In the late twentieth century, a number of Islamic banks were created to cater to this particular banking market.
NGS, following the lead of a number of other financial institutions in Australia and worldwide, is looking at the possibility of launching a Sharia-compliant investment option. This has come about as a result of feedback from Islamic members of the fund. Chief executive Anthony Rodwell-Ball said that NGS is having discussions with key stakeholders in the fast-growing, “ultra ethical Shariacompliant” market. According to figures released last year, this market has grown by 20 per cent since 2004.
NGS Super leading out of the box NGS Super has started the new financial year at a cracking pace, with the following investment performance results, which show the fund ranked first out of the SuperRatings SR50 list of balanced funds surveyed for the financial year to 30 September. NGS Super has achieved 5.06 per cent versus the median return of 4.01 per cent in the group of 50 funds. Taking a short-term view of returns can, however, be misleading. What are of greater interest (and significance) are the results achieved over three, five, seven and ten years:
The results for these longer time periods reveal consistent, median-beating performance, vindicating the NGS Trustee’s policy of active management of the portfolio and the taking of ‘judicious risk’. It must always be remembered, however, that past performance is not a reliable indicator of future performance, and members and readers should seek appropriate financial advice and take their personal circumstances into consideration before making investment decisions.
NGS Super Diversified Option versus SuperRatings Indices As at 30 September 2010
Financial Year to Date
3 Years % pa
5 Years % pa
7 Years % pa
10 Years % pa
NGS Super Diversified
5.06%
-1.12%
4.77%
7.26%
5.79%
Versus SuperRatings
4.01%
-2.95%
3.11%
6.55%
4.93%
Rank
1
4
3
10
5
Quartile
1
1
1
2
1
SR50 Balanced median
26
EdU December 2010 IEU(SA)
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