Fair Work Commission holds key to second vote on government’s wage freeze proposal

FAIR Work Australia holds the key to whether NT public servants will have another opportunity to vote on the government’s controversial wage freeze.

UPDATED MONDAY

FAIR Work Australia, the nation’s industrial relations tribunal, holds the key to whether Territory public servants will have another opportunity to vote on the Labor Government’s controversial wage freeze.

An embarrassing administrative bungle by the NT government meant the wrong paperwork around the agreement, concluded late last year, was submitted to Fair Work.

This has left about 13,000 public servants with an opportunity to have another vote on the wages freeze after pocketing the $4000 lump-sum taxable payment that was part of the agreement.

The Territory Government and the Office of the Commissioner for Public Employment are now sweating on whether the Fair Work Commission will grant the NT government an extension to re-submit the correct paperwork.

As part of the Enterprise Bargaining Agreement concluded on December 17 2021, the Territory Government agreed to give public servants a one-off $4000 taxed, lump sum payment in lieu of an annual salary increase.

Over the course of the agreement, public servants would receive three additional lump sum payments of $2000 each – meaning they expect to receive $10,000 taxed over four years instead of a payrise.

Community and Public Sector NT Regional Secretary Kay Densley said the Fair Work Commission would decide shortly whether another vote is required.

Ms Densley resisted the government’s attempt to persuade public servants to accept the pay freeze – and an initial ballot that offered a $2000 sweetener was knocked back.

“When employees vote on an agreement and vote it up, the Commission for Public Employment has 14 days to lodge the agreement with the Fair Work Commission,” Ms Densley said.

“The documents were lodged by December 31 and lodged in time but it was the wrong document and now Fair Work has to determine whether it will grant an extension and if it doesn’t they’ll have to go to another vote.”

Since public servants last voted in December the price of fuel across the Territory has sky-rocketed, extreme weather events have blocked freight deliveries to the Territory and impacted prices and almost half of the $4000 went to the Australian Taxation Office.

“If it went out to another vote the CPSU still won’t support a pay freeze,” Ms Densley said.

“Everybody’s going to be so much worse off in the next four years and it’s not something Labor Government’s usually do.”

Ms Densley acknowledged it’s likely Fair Work will grant the NT government an extension to re-lodge the Enterprise Bargaining Agreement.

Public Employment Minister Paul Kirby declined a request to comment but a government spokeswoman said public servants’ entitlements would not be affected by the error because a legal instrument had been signed by the Commissioner to ensure all provisions of the correct Agreement remained in place and continue to be paid and provided.

Commissioner for Public Employment Vicki Telfer released a statement implying fault on the part of the Fair Work Commission.

“An incorrect version of the General Enterprise Agreement was approved by the Fair Work Commission. The Employer with the support of the unions asked the Fair Work Commission to reverse that decision.”

What the statement omits is the Fair Work Commission approved an ‘incorrect version’ because that was what was handed to it by the Northern Territory Government.

Section 6 of Fair Work’s determination from last week said:

‘As events transpired the purported agreement that was signed and subsequently filed with the application for approval in accordance with s 185(2) of the Act was not the agreement made on 17 December 2021 but an earlier iteration which did not contain the subsequent amendments on 29 November 2021. The error was not discovered until 7 February 2022 by which time the purported agreement had been approved and had commenced operation. Subsequently on 11 February 2022, (deleted) brought the erroneous lodgement to the attention of the Deputy President and sought a correction to the decision which would have required a variation to the decision. The Deputy President correctly advised Ms Winstanley that a variation to the decision was not possible.

EARLIER

THE Full Bench of the Fair Work Commission has quashed the NT Government’s Enterprise Agreement that green-lit the Government’s four-year wages freeze.

Thousands of Territory public servants voted last year to approve the wages freeze in exchange for payments totalling $10,000.

The final tranche of the $4000 was paid on Thursday to several thousand public servants after thousands more had received their payment in January.

While there is no suggestion public servants will be required to repay their $4000, it is possible they could be required to re-vote on the Enterprise Agreement.

In this case, they could then vote the agreement down which could mean the Government would have to try to reclaim the $4000 from each employee.

Industrial relations insiders say lawyers for the Commissioner for Public Employmnent inadvertently submitted the wrong documents when lodging with FWC within the mandatory 14 days.

Section 6 of Fair Work’s determination states:

“As events transpired the purported agreement that was signed and subsequently filed with the application for approval in accordance with s 185(2) of the Act was not the agreement made on 17 December 2021 but an earlier iteration which did not contain the subsequent amendments on 29 November 2021.

“The error was not discovered until 7 February 2022 by which time the purported agreement had been approved and had commenced operation. Subsequently on 11 February 2022, (name deleted) brought the erroneous lodgement to the attention of the Deputy President and sought a correction to the decision which would have required a variation to the decision.

“The Deputy President correctly advised ... that a variation to the decision was not possible. Similarly, the decision to approve the erroneously lodged agreement could not by cured under s 602(1).”

To maximise the embarrassment, the NT News understands the wrong documents were also submitted when attempts were made to lodge the correct paperwork.

The Office of the Commission for Public Employment has also lodged a request for an extension for the approval of their Enterprise Agreement.

Community and Public Service NT regional secretary Kay Densley acknowledged the Government would most likely redress the blunder – but said it was disappointing for public servants.

“It’s concerning that employees voted in good faith to accept this agreement and that has been imperilled over a silly mistake.,” she said.

“It’s a debacle.”

Industrial Relations Minister Paul Kirby has been contacted for comment.