1. ADF Workplace Remuneration Arrangement (WRA) 2011 – 14 ADF Consultation Brief Directorate of Military Salaries and Allowances – Policy People Strategies and Policy Group

2. What is the purpose of this briefing? To explain the ADF wage setting environment and how it fits into the Defence Employment Offer. To outline the specific details of the ADF WRA 2011-14. To answer your questions.

3. Timeline

4. What is the WRA? The ADF WRA is the military version of workplace bargaining. Requires improvements in productivity and efficiency. It provides the across-the-board pay rises over a specified period (usually 2 – 3 years). Confined to pay and pay related allowances only.

5. The WRA covers: Salary 17 salary related allowances: Adventurous Training Instructor Arduous Conditions Diving Field Flying and Flight Duties Hard Lying Language Proficiency Paratrooper Reserve Seagoing Separation Service Special Forces Disability Specialist Operations Submarine Escape Submarine Service Trainee

6. What the WRA does not cover The WRA does not specifically review: –Allowances structure and amount. –Warlike and Operational Conditions of service. –Conditions of service covering special nature of military service –Placement within the pay grades. –Any other condition of service.

7. WRA: Establishing the context: It is a tangible part of the Defence Employment Offer: The ADF employment offer includes tangible and intangible elements, including: –Pay –Pay related allowances (eg. Service, Field, Seagoing, Flying etc) –Retention/Completion Bonuses –Other allowances (eg. Locality, Clothing, Travel, meals etc) –Superannuation –Leave –Medical –Accommodation benefits –Removals –Family support –Compensation and benefits on illness or death –Career transition schemes DEFWEB Portal Essentials: Pay and Conditions ADF Publications Members Guide to ADF Pay and Conditions of Service in Australia

8. The Remuneration Picture Operational and Warlike Service Special conditions of service on a case by case basis. Not in the WRA. Special Nature of Military Service Allowances and other conditions reflect the special characteristics of military service (service allowance, disability allowances, housing etc). Core Salary and Conditions of Service ADF WRA: Recognition of across-the-board Defence renewal, performance and efficiency through pay rises. Determined Separately for ADF: Other conditions of service shared with wider workforce: leave, relocation, travel, etc. DECA No Civilian Equivalent DECA No direct equivalent

9. The WRA takes account of: Defence global productivity and Organisation Savings eg Strategic Reform Program. Pay trends in the Australian workforce. What the organisation can afford. Economic circumstances (the budgeting environment). The DECA and the APS Bargaining Framework

10. Current Economic Circumstances –Lingering effects of Global Financial Crisis. –Two speed economy. Mining sector doing well. Non mining sector static. –Commonwealth budget remains substantially in deficit ($49.4B end Jun 2011) –Commonwealth May 2011 budget – fiscal austerity. –Spending on Commonwealth outlays constrained which affects salaries for public sector and Defence employees.

11. Budget Economic Forecast Inflation –Annual CPI rate 3.6% (Jun 11 quarter) –CPI 2.75% to Jun 12 –CPI 3.00% to Jun 13 (Carbon Tax? +.7%) Budget –$22.6B deficit in 11-12 –$3.5B surplus 12-13 –Unemployment rate 4.5% 12-13

12. The proposed WRA will deliver: Total increases of 9% over 3 years. 3 instalments: –4.0% with effect first available pay period that processing can occur –2.5% with effect 8 Nov 12 –2.5% with effect 7 Nov 13 Expires 3 Nov 14

13. Salary Benefit RankPG Rates Total Increase BaseRise 1Rise 2Rise 3 PTE (E)3$45,054$46,856$48,027$49,228$4,174 CPL (E)3$50,401$52,417$53,727$55,070$4,669 SGT (E)3$57,540$59,842$61,338$62,871$5,331 WO2 (E)5$72,110$74,994$76,869$78,791$6,681 LT (E)2$52,124$54,209$55,564$56,953$4,829 MAJ (E)2$78,098$81,222$83,253$85,334$7,236 LTCOL (E)2$109,753$114,143$116,997$119,922$10,169

14. Allowance Benefit Allowance Rates Total Increase CurrentRise 1Rise 2Rise 3 Service$11,662$12,128$12,431$12,742$1,080 Field (Tier 1)$51.59$53.65$54.99$56.36$4.77 Seagoing (3-<6yrs)$17,522$18,223$18,679$19,146$1,624 Flying$7,451$7,749$7,943$8,142$691 SFDA (SAS (Q))$35,218$36,627$37,543$38,482$3,264

15. Other mechanisms to increase pay Pay category reviews: –The process recognises and rewards the general up- skilling of specific groups within the ADF workforce. –Initiated by the Services. Allowance reviews –Salary related allowances are formally reviewed every 2 years.

16. Recent Salary Reviews 2010 –Medical Officers restructure –ADF Investigators (PG 5 to PG 5 & 6) –Army and Air Force Physical Training Instructors (PG 3 & 4 to PG 3 - 5) –Ground Base Air Defence (PG 2 – 5 to PG 2 – 6) –Surveillance Target Acquisition (PG 1 - 5 to PG 2 – 6) –Royal Australian Infantry Corps (PG 1 - 5 to PG 1 – 6) –Air Base Protection (new category PG 1 & 2) –Navy Aviation Support (new category PG 2 – 5) 2009 – Aviation (OARS) introduction

17. Recent allowance reviews Currently 17 pay related allowances 2010 –Reserve –Language Proficiency –Paratrooper –Separation –Special Forces Disability

18. Recent retention/completion bonuses 2010 –Navy Aircrew retention and completion bonus scheme review. –Bonus framework introduced.

19. Why are we consulting? COSC requirement, DFRT requirement, ADF Remuneration Framework, and To obtain member feedback.

20. Provide Feedback Determine Support for WRA as demonstrated by: –Mailbox feedback –Feedback Form –Show of hands at briefings. –Formal reporting of support through chain of command.

21. Where can I get more information or provide feedback? Web (follow Workplace Remuneration Arrangement link): –DEFWEB – http://intranet.defence.gov.au/pac/http://intranet.defence.gov.au/pac/ –Internet – http://www.defence.gov.au/dpe/pac/http://www.defence.gov.au/dpe/pac/ Email:DMSAP.IPBS@Defence.gov.auDMSAP.IPBS@Defence.gov.au Fax:(02) 6127 2543 Post: Industrial Policy Directorate of Military Salary & Allowances (Policy) BP35-3-07 Brindabella Park Canberra Airport ACT 2609

22. Summary of key WRA features: Total increases of 9% over 3 years. 3 instalments: –4.0% with effect first available pay period that processing can occur –2.5% with effect 8 Nov 12 –2.5% with effect 7 Nov 13 Expires 3 Nov 14

23. QUESTIONS?

24. SRP - Where can I get more information on the Non-Equipment Procurement (NEP) reform stream? SRP - http://intranet.defence.gov.au/oscdfweb/sites/srp/ (select: Strategic Reform Streams > Non-Equipment procurement)http://intranet.defence.gov.au/oscdfweb/sites/srp/ NEP Reform - http://intranet.defence.gov.au/dsgweb/sites/dsgreform/http://intranet.defence.gov.au/dsgweb/sites/dsgreform/ Navy - http://intranet.defence.gov.au/navyweb/sites/_home/ (select: NGN/SRP)http://intranet.defence.gov.au/navyweb/sites/_home/ Army - http://intranet.defence.gov.au/armyweb/sites/srp_a/http://intranet.defence.gov.au/armyweb/sites/srp_a/ Air Force - http://intranet.defence.gov.au/raafweb/sites/AFI/comweb.asp?page=9 8403&Title=What%20is%20AFI%20%20SRP http://intranet.defence.gov.au/raafweb/sites/AFI/comweb.asp?page=9 8403&Title=What%20is%20AFI%20%20SRP

25. SRP - Where can I get more info on the Workforce and Shared Services (WSSR) reform stream? SRP - http://intranet.defence.gov.au/oscdfweb/sites/srp/ (select: Strategic Reform Streams > Workforce and Shared Services)http://intranet.defence.gov.au/oscdfweb/sites/srp/ WSSR Reform - http://intranet.defence.gov.au/dsg/sites/wssrs/http://intranet.defence.gov.au/dsg/sites/wssrs/ Navy - http://intranet.defence.gov.au/navyweb/sites/_home/ (select: NGN/SRP)http://intranet.defence.gov.au/navyweb/sites/_home/ Army - http://intranet.defence.gov.au/armyweb/sites/srp_a/http://intranet.defence.gov.au/armyweb/sites/srp_a/ Air Force - http://intranet.defence.gov.au/raafweb/sites/AFI/comweb.asp?page=98403& Title=What%20is%20AFI%20%20SRP http://intranet.defence.gov.au/raafweb/sites/AFI/comweb.asp?page=98403& Title=What%20is%20AFI%20%20SRP