Enterprise bargaining agreements between SECWA and workforce

8/9/94

Historic enterprise bargaining agreements have been struck between SECWA and its workforce which could result in savings to Western Australian energy users of between $10 and $15 million a year. 

SECWA is one of the State's biggest employers and Energy Minister Colin Barnett said today the agreement represented a major step forward in industrial relations reform in the State's power industry.

"The agreement will result in the introduction of more flexible work arrangements and a big reduction in the number of unions covering SECWA's workforce," Mr Barnett said.

Following agreement by the power station workers, all SECWA employees are now covered by Enterprise Bargaining Agreements (EBAs).

This has paved the way for two salary increments of three per cent each.  The first three per cent increase will be paid in recognition of the new arrangements.  The second rise could follow as productivity increased and improved work practices were introduced.

"The end result of the EBAs is particularly significant for SECWA and energy supplies in WA," Mr Barnett said.

He said SECWA employees were formerly represented by no less than 13 unions under both State and Federal awards.

 It was intended that only two unions would cover the separate gas and electricity utilities when SECWA split on January 1, 1995.

"Dealing with only two unions will also be of enormous assistance to the new businesses in terms of simplifying industrial relations and reducing demarcation difficulties.

"It is worth noting that while the whole exercise was a long and difficult process, it has been achieved with minimum disruption and I congratulate SECWA's employees, management and the unions on the way these outstanding changes were negotiated.

"It was also necessary to reduce SECWA's workforce by 500 before the commission splits and to date 391 people have accepted voluntary redundancy."

Mr Barnett said the new arrangements would also do away with the agreement struck under the previous government, which placed heavy restrictions on the use of private contractors.

While core maintenance work would still be carried out by SECWA, the new arrangements allowed for private contractors to do major maintenance work in power stations.

"There is no doubt the major advantage to SECWA flowing from the EBAs will be greater flexibility across the organisation," Mr Barnett said.

"Management will be able to schedule labour resources to better match work requirements."

Mr Barnett said the agreements were in line with comments made in the 1993 Carnegie Report, which said the commission 'had a history of management/union deals which have perpetuated high staff numbers and work practices' and that changes in work practices and an increased use of contractors were needed to lift productivity.

"Thanks to the hard work and dedication of all involved, the necessary changes have been made and the productivity increases will be met," he said.

Mr Barnett said other benefits flowing from the EBAs to staff would include better multi-skilling methods leading to better career opportunities.

The new agreements involving the power stations were yet to be registered by the Federal and State Industrial Relations Commissions but this was expected to be a formality.

Media contact:  Caroline Lacy (09) 222 9699