What is the payroll change contemplated by Australia Post?
By now members employed with Australia Post would have learnt from Australia Post that it is contemplating a change to the existing payroll with all ordinary time and variable earnings being calculated for payment in arrears.
In essence this present payroll change contemplated will have all ordinary time earnings (OTE) and variable earnings (VE) (e.g. overtime, shift penalty rates that are currently paid fortnight in arrears) calculated altogether to the present pay period ending Wednesday but won’t be actually paid until the following Thursday (current off pay week) at the latest.
Why Is Australia Post contemplating the payroll change?
Australia Post believes that by introducing this proposed payroll change for paying all OTE and VE in arrears together, it will address the many payroll irregularities occurring with underpayments and overpayments of wages, in particular, where the cut off for payroll involves part OTE being paid in advance and where VE can be correctly calculated, verified and reconciled.
Sources within the Shared Service Division estimate that 20% of the present overall payroll results in pay irregularities every pay period.
What are the consequences with MyPay if this change by Australia Post went ahead?
The consequences of this contemplated payroll change if introduced would mean that members would have to forgo 1 week of their OTE during the transition phase. This doesn’t mean that the wages for payment are lost altogether but would remain outstanding wages payable at the end of employment with Australia Post
Has there been consultation with the union and if so, what is on the table to mitigate the effect on employee wages during the transition phase?
Australia Post has placed on the table a loan and recoverable scheme to offset the 1 week of OTE that will be forgone during the transitional phase of the proposed change.
The loan and recoverable scheme on the table by Australia Post is to the following:
Tier 1 OTE salary range $36k – $52k
Tier 1 – Full Time $600 loan with 3 x $200, 6 x $100 or 8 x $75 payback periods
Tier 1 – Part Time $300 loan with 3 x $100, 6 x $50 or 8 x $37.50 payback periods
Tier 2 OTE salary range $53k – $100k
Tier 2 – Full Time $800 loan with 3 x $266.66, 6 x $133.33 or 8 x $100 payback periods
Tier 2 – Part Time $400 loan with 3 x $133.33, 6 x $66.66 or 8 x $50 payback periods
CEPU NSW State Branch position on overall payroll change
The NSW Branch of your union is of the view that the present overall payroll change package by Australia Post:
- does not provide for a genuine solution for transitioning from present to proposed new pay period change whereby employees are required to carry the consequence of having to manage the shortfall of their pay during transition regardless of whether they opt for the present loan arrangements or not;
- fails to provide for genuine solution for addressing the alarming payroll irregularities occurring each pay period;
- fails to address poor earnings information including inaccurate leave accruals presently contained on the pay slip;
- does not provide for appropriate enforceable measures when recovering overpayments from wages that is presently being undertaken without notice or authority of the employee;
- does not provide for genuine reliable processes for making good underpayment of wage entitlements in a timely fashion;
- fails to satisfactorily resolve the overpayment of PON annual leave – causing 263 NSW/ACT employees distress despite recovery action being presently on hold due to the intervention of the NSW Branch Secretary.
If items 1-6 were resolved for a payroll package to be finalised for implementation – then there must be proper timing and support package developed to help employees make necessary adjustments with their personal payroll deductions to avoid default and potential costs with financial institutions.
Where to from here?
Consultation is continuing with Australia Post at the NSW State Branch level in relation to their payroll proposal whereby management will need to resolve the abovementioned matters of concern before the payroll reform of a kind can be seriously considered.
If Australia Post chooses to progress their payroll reform without resolving the abovementioned matters and/or for being held accountable for failures with their payroll management systems, than we expect that a vote by the workforce must apply with accepting or rejecting the proposed change in this circumstance, given it’s the employees who are expected to carry the consequences of the proposed changes and not Australia Post.
Your feedback is important
Member’s views and input into this important change being contemplated by Australia Post is encouraged. Members can provide their feedback by facsimile at 02 9893 7396 or by email at feedback@cepu.org
Further information will be made available to members if anything further occurs with this matter that remains as a consideration and not a decision at this stage of the consultation process.
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