Dnarever wrote on Dec 24
th, 2010 at 9:04am:
Quote:Many employers have paid the higher rate not because they can afford to, but because they have misunderstood the changes .
year1 (2010) - 0%
year2 (2011) - 20%
Year 3 - 40%
year 4 - 60%
Year 5 - 80%
Yeah you would need to be a rocket scientist to understand - I get your point much too difficult for the typical finance department / management team to cope with.
Actually I would have made it more simple for them
year 1 = 100%
What this is doing is to bring industries where penalties were not being paid to the required standard.
In reality it is saying that these employers will not be allowed to rip off their staff any longer - well in 5 years time anyway - in my opinion not good enough - I would say pay the correct rates and pay it today.
Well actually it starts at 20% on 1 July 2010.
As for the department, I fully understood it and as a result educated the staff, but from reading the award it isnt all that clear to a degree.
That said, are you prepared to go the other way with the deductions happening in 100% in year one as well?
The casual annual leave loading of 8.66% has been changed to zero, should we be taking 8.66% of our staff in one year?
Also, those under the award as management, instead of paying them overtime (Senior management are on 3 year contracts) and the like, we pay them a 30% exemption rate to cover things like return to work penalities (which never happens), break shifts, early and late starts and overtime. It doesnt exclude public holidays.
Under the new award its back to 20%. Should we take 10% off them in year one.
Also, employees engaged before 1999, permanent part times got a loading of 15%, guess what, back to zero now.
Under the new changes we the employers would have come out far rosier if we applied it across the board of both the increases and decreases.
The transition rules make it fair for both parties. Employers need to ensure that they meet their obligations, but also meet their obligations to the owners/stakeholders/members by ensuring payments in excess of our legal requirements are not made unless a determination has been made by management or the board that those employees are deserving of a higher rate of pay.
One example is we pay our cleaners higher than our floor staff. Reason being after a floor staff refused to clean a toilet after a patron had defecated and vomited they said "I'm not the frigging cleaner". It was at that time we as management decided the cleaners although rarely have a hard time of it, and as a result deserve to be paid more than those that wouldnt do the job.
Higher than required wages should be at the decretion of management and the boards, not by misinterpretation of the new award conditions.
And if it was so simple all these new changes, why was I the one helping other businesses run through it, as well as our payroll software provider? The misconceptions and misunderstandings are rife as people try to apply new rules, old rules and transitional rules while ensuring employees receive no reduction in their take home pay.