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SUMMER 2009 The magazine for AMWU members
New IR laws introduced Apprentice conferences in 2009 Boost for auto industry
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Growing the union, bargaining for our future Dave Oliver, AMWU National Secretary
The protection of entitlements against company collapses is another key factor that members have identified for our campaign.
This year AMWU members at workplaces across Australia will be negotiating hundreds of new collective agreements. It is an opportunity to grow our union, and build on the successes of 2008.
This year’s bargaining will occur in the context of a global economic downturn. During the long period of growth over the past 15 years, executive salaries were allowed to spiral out of control, but working people were not invited to enjoy the relatively good times. Instead we were slugged with hikes in the cost of education and health, reduced services and a Howard Government political theory that said governments should simply get out of the way of the free market. Now, as the results of this greed, stupidity, and government inaction begin to bite, working people are being asked to foot the bill.
Australia’s Prime Minister, Kevin Rudd, has been joined by leaders around the world in his call for ‘extreme capitialism’ to end. Working people should wholeheartedly support government action to intervene and properly regulate the obscene excesses allowed by the governments of John Howard and George Bush. It is a welcome but long overdue change in political orthodoxy that the AMWU has long argued for. As manufacturing workers begin a huge round of bargaining in 2009, the union and its members are determined that employers will not use the pay packets of workers to pay for the crisis. And we will remind Australian employers that there is some good news for them, with lower interest rates and the much lower Australian dollar greatly helping our exporters. Our wage claims will be reasonable, and we will demand that employers invest in the research and development, training, and management systems that will help protect our industries against such crises in the future. The protection of entitlements against company collapses is another key factor that members have identified for our campaign.
Government and the union can look back positively on a period of significant change for the benefit of working people. Despite some disagreements, 2008 was an example of how much an active government, prepared to intervene in the market, can achieve. 2008 was a troubled year for the auto and components industry, which began with the closure of Mitsubishi in Adelaide, and ended with major lay-offs at Ford in Victoria. Although these were difficult times, at every turn, the Federal Industry Minister Kim Carr took action to ensure workers who lost their jobs received support. By the end of the year, a $6.2 billion dollar plan for the auto-industry was announced. As a result of this and other government initiatives, Ford has announced its Geelong engine plant will no longer close in 2010, and Toyota will begin building a hybrid Camry in 2011. The production of hybrid cars represents the kind of jobs that the AMWU argued could be part of our future as the world looks for solutions to climate change through environmentally-friendly products. It’s a great opprtunity to grow manufacturing jobs. Again, the union pushed hard for government investment and was successful. In 2009, we will continue. The union also had wins on the issue of 457 visa exploitation, and the government’s apology to indigenous people was an achievement for all Australians. Lastly, on the one-year anniversary of its election, the new Labor Government introduced legislation into Parliament which shifts the balance back towards workers. This legislation will now go before a Senate Inquiry to conclude in February, after which the Liberal Party will need to be forced to pass it through the Senate. The AMWU and our members spent much of 2008 continuing the Your Rights at Work campaign to ensure Labor delivered on its election promises. Although we remain concerned with some elements of the legilsation, AMWU members can rightly see the legislation as a significant win and a great result from many hard years of campaigning. The issues that remain will not be left to rest. The Your Rights at Work campaign still has unfinished business. In 2009, by delivering results for members, growing the union and continuing to advocate for progressive policies to help build a better society, we will further increase our support in the community. I look forward to continuing this work with you this year.
In Unity, In 2009, we also need to make sure our bargaining campaigns increase our membership. There is no better time to explain and demonstrate the benefits of union membership to non-members. The union’s growth strategies and the growth we experienced in 2008 need to continue, and will only make our ability to bargain stronger. This is a key message that all workers need to hear. DAVE OLIVER Last year was also Australia’s first full year under the new Labor N AT I O N A L S E C R E TA R Y
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We need to keep up the Your Rights at Work campaign until we achieve all of our goals.
Power industry delegates
news
New IR laws a welcome step forward but more needs to be done The AMWU has welcomed the new IR laws as a step forward that returns fundamental rights to working people, but leaves some unfinished business for the Your Rights at Work campaign. AMWU National Secretary, Dave Oliver, said workers should be proud of the fundamental shift that the Your Rights at Work campaign had achieved. “The new industrial relations laws proposed by the Labor Government are a welcome step forward for working people and a good start to break down the 11 years of extremism we experienced under the Howard Government. The new laws have abolished Australian Workplace Agreements, introduced a fundamental minimum standard that cannot be undercut, restored unfair dismissal rights, and greatly improved workers’ rights to have their union and represent them in their workplace. They have also reduced or removed many of the technical hurdles that created roadblocks to union bargaining, including mandatory secret ballots for minor activity, and introduced “The Australian Building and Construction positive protection for union delegates and Commission (ABCC) and the extraordinary activists against employer victimisation. penalties for construction workers must also be “The pendulum has swung back towards gotten rid of.” working people, but our campaign must continue so that we can remove the remaining The AMWU has been particularly concerned about the capacity to have protracted disputes restrictions on bargaining. arbitrated. Dave Oliver and workers from the “We also need to increase the ability of the Cochlear plant in Sydney met with Julia Gillard independent umpire to settle matters through to confirm that the new laws would provide a arbitration, and to remove the penalties remedy for extreme cases of employer against workers who choose to exercise belligerence. democratic rights to industrial action to improve their working conditions. The new laws have since been referred to a
AMWU News SUMMER 2009 AMWU News is the official publication of the Australian Manufacturing Workers’ Union, (registered AFMEPKIU) National Office, 133 Parramatta Road, Granville, NSW, 2142. Editor: Dave Oliver Production Management: Essential Media Communications, Melbourne
Dave Oliver’s editorial
Senate Inquiry, which will conclude on 27 February this year.
Deputy Prime Minister, Julia Gillard, accepts a shirt signed by members
“The fact that the Liberal Party has already back flipped on its initial support for the laws shows the power of the business lobby to change the Liberals position”, said Mr Oliver.
at Cochlear, from Delegate Huy Kha
“That is why keeping up our campaign is all the more important over the next few months and beyond. “We need to keep going forward from this position, and we cannot afford to rest and allow business to drag the agenda back.”
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New members get first agreement
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Boost for auto industry .......................................................................................... 5 Bargaining for our future
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Design: dcmc Design, Melbourne All information included in this publication was correct at the time of publication, but is subject to change at any time. Please contact your union organiser for updates.
AMWU women push for stronger representation
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Apprentice conferences in 2009 ........................................................................ 9
© AMWU National Office Made in Australia by AMWU labour
Understanding the global financial crisis
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Geoscience workers demand fair deal in historic dispute particularly concerned about a career path structure which workers face difficulty accessing due to a patronising management culture. Emails were sent to staff warning them that if they took industrial action it would be ‘career limiting’ and hamper their chances of ongoing employment. Workers at Geoscience handed out leaflets to the public during an Open Day explaining their position.
AMWU members at Geoscience take action in Canberra
Workers at Geoscience Australia took industrial action last November for the first time in 30 years in order to pressure management to negotiate in good faith with them for a new collective agreement. AMWU and CPSU members voted to take action following management’s intransigence over wage claims and more equitable career path
advancement. AMWU organiser, Jane Timbrell, said that the workers are frustrated by their inability to have access to an independent umpire to help resolve the dispute. “Workers at Geoscience Australia receive wages substantially below workers at other Commonwealth agencies and there is no valid reason for this.” Ms Timbrell said that workers were
“The community understands that workers at Geoscience do very important work such as carbon capture and storage, natural hazard impacts including the tsunami warning system, and research on water efficiency.” Recently, 15 years of scientific and technical expertise secured a landmark United Nations decision securing an extension of the continental shelf of Australia by almost 35%. “We are of the view that quality work deserves fair pay. It’s about time management showed some respect to its workforce and started to negotiate with us in good faith,” said Ms Timbrell.
HPM workers vote on their first EBA Workers at HPM at Auburn in Sydney recently voted on their first collective agreement since joining the AMWU in June last year. AMWU NSW organiser, George Simon, said that workers were very happy to secure the pay and conditions enjoyed by their fellow HPM workers at the Waterloo site, who have had a union agreement for some time.
Workers at HPM Auburn vote on their first union collective agreement after being recruited by the organising unit
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“The AMWU members at Waterloo told us about the Auburn site and the organising unit was asked to develop a strategy to join them up. “It was initially difficult to convince workers to join the union and only a few signed up. It was obvious that they felt intimidated by what their employer might do. But when they saw the union in action in the workplace, solving
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problems, they began to move.”
affecting them.
Identifying some key issues helped the unit Delegate Eseta Vea said that since they to organise the workers and show them what joined the union everything is ‘much better’. being union meant. "The union intervened and our wages improved. But it's not only that. Now if we're “There was a problem with pay rates. We not happy about something, we feel we can organised and got a pay increase for have a say and everyone feels much more everyone and after that all the workers comfortable at work. Before it was 'if you joined. There was no hesitation.” don't like it' there's the door. Since then, two delegates have been elected and attended training for their new roles. An "One of the workers recently took four weeks OHS Committee and a Workplace paid maternity leave which we never had Committee have been established where before. It's fantastic." workers can have a say about issues
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Cash injection gives auto industry a brighter, greener future Late last year, Prime Minister Kevin Rudd and Industry Minister Kim Carr announced a crucial investment package to secure the future of the Australian auto and components industry and save tens of thousands of jobs. The Federal Government will invest $6.2 billion in the vehicle industry over the next 13 years, including urgent funding to help the industry to adjust to global economic conditions over the next 12 months. “The new vehicle industry package delivers much-needed investment to maintain tens of thousands of jobs and the heart of the Australian manufacturing sector,” said AMWU National Secretary, Dave Oliver. “This investment package is the key to securing a sustainable future for the Australian vehicle industry beyond the next few months of economic uncertainty. While the government has not committed to maintain tariffs, this package delivers many of the other measures that unions have been calling for. “The vehicle and component industry is the driver of research and development and employs over 65,000 people directly in Australia and an additional 250,000 in the supply chain of jobs dependent on the industry. Many of these jobs are in regional areas”, said Mr Oliver. The announcement was made at a Melbourne auto training centre, where workers and the AMWU welcomed the plan which was in stark contrast to the policies of the former government.
“This plan will encourage investment in new plant and equipment, more fuel efficient and environmentally friendly vehicles, and more research and development. “The AMWU particularly welcomes the expanded green car innovation fund as an opportunity to transform what we make and how we make it in this country. “We also welcome that this funding is based on mutual obligation for companies to invest in the industry”, said Mr Oliver. AMWU members Tansel Mehmet and Alex Franco, from Venture Industries in Victoria said the package was something the union had been fighting to get for a long time. Mr Mehmet said it was broader than he anticipated.
amount will be invested and it should lead to a growth in jobs.”
National Secretary, Dave Oliver, Prime Minister, Kevin
Mr Franco said the announcement by the Prime Minister showed a real commitment from the government. “They really consider the auto industry as an important industry.”
Rudd, Vehicles Secretary, Ian Jones, Vehicle Official, Dave Smith, Gayle Tierney MLC and
Both men said workmates were cheered by the news.
Industry Minister,
“This is the only good news we’ve had in the last two years. It’s been bad news for a very long time,” said Mr Franco.
for a greener
Kim Carr launch the ‘New car plan future’
“People have been very stressed about their jobs and the future.”
Geelong jobs saved Within weeks of the auto package announcement, Ford reversed its decisionb to shut the Geelong engine plant saving hundreds of jobs. For AMWU delegate Mick Stirling, the news brought relief and joy. “The announcement was greatly appreciated by us. A group of us here in Geelong have worked very hard over a long period to campaign for this, including going to Canberra recently. “For me, personally, it means I can get my life back on track and plan for the future.”
“It’s very encouraging to hear this
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Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009C
Gearing up for Campaign 2009 The AMWU is gearing up to negotiate new collective agreements across the manufacturing industry, as agreements begin to expire in 2009. The union is urging members to prepare themselves and their workplaces in order to ensure the best outcome in a new union collective agreement. Now is the time to get ‘bargain ready’. We need to ensure our workplaces have: • Sufficient numbers of trained delegates • High union density and financiality
• Up to date contact details for all members. “In this tough economic environment, it’s in every worker’s best interest to secure their job and get a good pay rise,” said AMWU National Secretary, Dave Oliver. The AMWU is campaigning heavily on securing entitlements, the restoration of rights at work lost under the Howard Government and a commitment to more apprentices and improved education and training for all workers.
Mr Oliver said the union is also targeting workplaces where there are currently no agreements. “They’re the ones that stand to lose the most. It’s important for people to understand that they are in a stronger position to get the best deal possible when everyone is in the union. “A united, well-organised, workplace gives us the best chance to get an agreement that nails down your job and your entitlements and gets you a decent wage rise.”
New scheme to protect entitlements will be a key goal employers, often without workers knowledge. If a company goes bust, this money has usually not been kept aside.
“The AMWU estimates that over 38,000 manufacturing workers have lost their jobs since last February and that number will rise above 50,000 by February 2009.”
Neil Sartori, worker at John Valves
The union intends to make protection of entitlements a key issue in upcoming wage negotiations in the manufacturing sector, after union research showed that around $6 billion worth of entitlements owed to 250,000 manufacturing workers is unsecured. “The Federal Government has guaranteed business and bank savings, but billions of dollars of worker entitlements in Australia remain unsecured,” said National Secretary Dave Oliver. “While the government has delivered much
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The AMWU is calling for an income protection scheme that guarantees 100% of accumulated employee entitlements. Such a system could involve:
needed investment to manufacturing, especially the vehicle industry, everyone acknowledges that the next year is going to be hard. “Over 38,000 manufacturing workers have lost their jobs since last February and that number could rise above 50,000 by February 2009. “That means thousands of workers may soon need to rely on their entitlements to continue to pay their mortgages and support their families. “Unfortunately, redundancy, annual leave and superannuation payments are often treated as unsecured, interest free loans by
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A universal insurance scheme to cover employee entitlements, which could be developed and managed nationally or industry by industry
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A pay as you go contribution plan as exists in industries like building/construction
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Legislation that ranks employee entitlements above secured creditors.
Neil Sartori, former John Valves worker from Ballarat welcomes the union’s move. Mr Sartori was one of many workers from the company who lost their job after the company went broke and consequently lost all his entitlements. He said laws need to change so that workers don’t constantly lose out. “Banks always get their money, and everyone else seems to be in the picture, except for workers. We should never be put into this position. There should be laws to protect us. This is a terrible thing to happen to anyone.”
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2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 2009Campaign 20
What we are fighting for in 2009 Your entitlements Almost $6 billion in manufacturing workers’ entitlements are currently unprotected. If a company goes bust, these entitlements are often lost, leaving manufacturing workers and their families in financial trouble. Together, we can fight to: • Protect 100% of your annual leave, long service and redundancy entitlements • Win better job security and redundancy protections
The global financial crisis occurred after years of Australia’s top executives receiving enormous salary packages and walking away with million-dollar golden handshakes. The costs of this crisis should not be taken from the pay packets of manufacturing workers. Despite the global economic situation, the Australian economy is predicted to continue to grow. The AMWU is demanding that workers get a fair wage increase that matches rising living costs.
Your rights at work
• Negotiate for re-training and reskilling for workers in the event of redundancy
AMWU members fought hard against the unfair WorkChoices laws. Now we’re campaigning to win back rights in our union agreement, including:
• Win 100 cents in the dollar for workers when companies are mismanaged and fail.
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Your standard of living
Rights to allow your delegates to be able to represent you effectively Protecting our jobs against unfair dismissal
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Equal rights for workers in all industries, including construction
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Fair wages for labour hire and contractors
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Making sure we have the strongest say possible at our workplace by growing to 100% membership.
Apprentices and training The lack of investment in education and training by employers has contributed to the skill shortages Australia is facing. Across manufacturing, the AMWU is campaigning for: -
Better wages and conditions for apprentices
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More apprenticeships
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Greater investment by employers in education and training.
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Women are pushing for stronger representation in the union AMWU members at the Womens Conference in Brisbane
AMWU women members will develop a formal activist network in the union to strengthen the participation of women and give voice to their concerns.
At the Women’s Conference held in October in Brisbane, a number of resolutions were passed that aim to boost women’s involvement in the union. National Secretary, Dave Oliver, acknowledged that the union could do more to attract more women members and encourage more activism. “While women now number 25% of our industry, the AMWU has only 10% women members. AMWU Queensland Industrial Officer, Katelyn Allen, said everyone was happy with the policy changes with regard to women arising from State and National Conference, but pointed out that more needs to be done. “There was a great deal of enthusiasm for
action and a feeling that there is support within the union for change.” Ms Allen said there was overwhelming enthusiasm among those who attended and they expressed a strong desire to get more involved. “They want to learn how to attract other women to the union and encourage them to get active as well.” Mr Oliver said he was very happy with the enthusiasm and commitment of those who attended. “The union recognises that different groups will have particular issues and our focus on growth must include strategies to pick up groups that are under-represented.” “This Conference was a great initiative and will help us address this goal.”
Sweeping changes to visa scheme timely after another guest worker dies on the job Temporary overseas workers should receive the same pay and conditions as Australian workers is just one of the recommendations for sweeping changes to the temporary 457 visa scheme which was released at the end of 2007 by Immigration Minister Chris Evans. The recommendations which aim to stop the exploitation and abuse of overseas workers came weeks after the work related death of a 457 visa worker in Wagga Wagga, New South Wales. Lian Ron Xia, a welder from China died from head injures in an accident at Byrne Trailers. Repeated attempts by the AMWU to gain entry to the site to meet with workers before the accident, were obstructed by the employer. “On two occasions we tried to get in to talk to the workers and were denied access,” said NSW Secretary, Paul Bastian. “We’re still being denied access.” Mr Lian Xia’s death is the latest in a total of nine fatalities among 457 visa workers in the last two years. The report came just days after the AMWU took a delegation of temporary workers who had experienced exploitation and abuse at the hands of their employer to see the Minister. One of those workers was Rico Mavotas from the Northern Territory, who was forced to work
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Rico Mavotas with visa workers and AMWU National President, Julius Roe (centre)
while ill with chicken pox and as a result contracted the potentially fatal Meliodosis disease. Mr Mavotas was in hospital fighting for his life when his employer threatened him with deportation and it was then he came to the attention of the AMWU. The findings of the report have been referred to the Skilled Migration Consultative Panel, which comprises representatives from business groups, state governments and unions. AMWU National President, Julius Roe, who is a member of the Panel, said the inquiry found there was exploitation of 457 visa workers which would continue unless major changes were made to the existing scheme. At the time of writing, the Skilled Migration Consultative Panel is set to provide feedback and advice to Government on the report, which includes recommendations to: • Abolish the minimum salary level in favour of market rates of pay for all temporary visa holders on salaries less
than $100,000 • Develop new lists setting out the skilled occupations for which temporary work visas can be granted • Give workers clear information about their rights and obligations when they come to Australia • Develop better regulation of migration agents • Allow workers to apply for permanent residency independent of their sponsor employer in order to reduce employers’ power over them. While the number of workers coming to Australia under the scheme is likely to decrease due to the economic conditions, Mr Roe said there may be demand in some sectors. "Receiving the same pay ensures the system is not used to undermine the wages and conditions of Australian workers during tough times," he said.
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Apprentice conferences in 2009! The AMWU is holding apprentice conferences around the country in February and March next year. The conferences follow a successful Queensland conference last year, which saw apprentices get together and organise on issues that mattered to them. AMWU Skilled Trades Officer, Ian Curry, says that the AMWU is aware that apprentices are doing it tough, and keen to see things change. “Apprentices have a lot of issues that we as a union can help with. Low wages, the pressure of going to TAFE, or the way a boss or training organisation treats apprentices are all major issues.” “Apprentices may not realise how many government and employer bodies have a say in the way their apprenticeship is put together and run. Apprentices need to make sure their voice is just as strong.”
If you’ve ever thought that there was a better or fairer way of running apprenticeships, this is your chance to have your say – and do something that will make a real difference to your apprenticeship. The two-day conference will include speakers from government and employer groups who will also take time to hear the concerns of apprentices. Workshops will allow apprentices from across their state to meet, and sessions to plan future union action will aim to improve apprentices’ rights, pay and conditions. If you would like to come along, give the AMWU Helpdesk a call, or look out for the registration pack being sent to all apprentice members in January. Your union organiser or delegate may be able to help organise paid time off from work to attend. Union delegates should encourage apprentices from their workplace to attend.
What the AMWU wants for apprentices • Shop rates to be paid to Group Training Company apprentices • Increased minimum pay rates for first and second year apprentices • Pay rates to be linked to the trades rates on site • Income protection • The adult age in awards and agreements to be lowered from 21 to 18 • Consistent minimum protections and disputes procedures for apprentices at the State level • Promotion of women into apprenticeships and into the union • A charter of apprentice rights and standards to be pursued with state and national governments
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REDUNDANCY – WHAT YOU NEED TO KNOW ABOUT TAX AND SUPER Job losses are likely to increase as the economy slows. Unfortunately if you lose your job, you’ll have many important financial decisions to make at a difficult time. So be careful and think it through. Your industry superannuation fund will be able to direct you to a licensed financial planner if you want personal financial advice.
Payments from your employer You may be entitled to various payments from your employer if you lose your job. Following are details of different payments that may be paid: 1. A lump sum payment called an Employment Termination Payment (ETP) may be paid to you as a result of your termination of employment. An ETP can include: • Any amounts for unused rostered days off • Any amounts in lieu of notice • A gratuity or ‘golden handshake’ • An employee’s invalidity payment (for permanent disability, other than compensation for personal injury), and • Certain payments after the death of an employee. 2. A tax-free part of a genuine redundancy payment or an early retirement scheme payment. 3. A payment for unused annual leave or unused long service leave.
Tax implications The tax implications will differ depending on the type of payment you receive. 1. Tax on an Employment Termination Payment (ETP) for the 2008/2009 income tax year: The tax free component of an employment termination payment consists of the following (if applicable): • The invalidity segment of the payment • The pre-July 83 segment of the payment.
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The taxable component of an employment termination payment is the amount of the payment less the tax free component of the payment. The tax that applies to the taxable component of the ETP is as follows: Under preservation age (currently 55 years) • Taxed at 30% plus Medicare levy up to $145,000* • Taxed at 45% plus Medicare levy on remaining balance. Over preservation age (currently 55 years) • Taxed at 15% plus Medicare levy up to $145,000* • Taxed at 45% plus Medicare levy on remaining balance. Effective from 1 July 2007, an ETP can no longer be rolled over into super. You can make a personal contribution (after tax) to your super fund up to the maximum limit.
Transitional arrangements will cease to apply from 1 July 2012. 2. The tax-free part of a genuine redundancy payment or an early retirement scheme payment is calculated based on a formula. For the 2008/2009 income tax year the tax free component is $7,350 plus $3,676 for each completed year of service. This base limit and service amount are indexed in line with Average Weekly Ordinary Time Earnings (AWOTE) each income year. This tax free payment must be taken in cash and applies only if you are under the age of 65 years. 3. Tax on unused annual leave or unused long service leave for the 2008/2009 income tax year, where payment is made for reasons of bona fide redundancy, invalidity or an approved early retirement scheme:
However transitional rules do apply….. If the ETP is specified in a workplace agreement that existed before 9 May 2006, it can still be rolled over into super. If the ETP is rolled over to your superannuation fund it will be classified as a directed termination payment and will be preserved until you satisfy a condition of release. A directed termination payment rolled into super is taxed at 15%. If a transitional employment termination payment is taken as a lump sum (cash) the tax on the payment for the 2008/2009 income tax year will be: Under preservation age (currently 55 years) • Taxed at 30% plus Medicare levy up to a maximum of $1 million • Taxed at 45% plus Medicare levy for amounts in excess of $1 million.
Annual leave
Over preservation age (currently 55 years) • Taxed at 15% plus Medicare levy up to $145,000* • Taxed at 30% plus Medicare levy for amounts above $145,000* to $1 million • Taxed at 45% plus Medicare levy for amounts in excess of $1 million.
*The cap of $145,000 is indexed annually in line with AWOTE (in $5,000 increments). This document is of a general nature and does not take into account your personal objectives, situation or needs. For further information you should obtain a Product Disclosure Statement (PDS) from your relevant industry super fund. This article has been prepared by the major industry funds covering the AMWU’s membership. The article was prepared by AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788, Trustee of AustralianSuper ABN
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Taxed at a maximum rate of 30% plus Medicare levy
Long service leave •
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Accrued pre 16/8/78 – 5% of the total accrued for this period is taxed at a person’s marginal tax rate plus Medicare levy Accrued from 16/8/78 – total accrued for this period is taxed at a maximum of 30% plus Medicare levy.
Remember, your industry superannuation fund will be able to direct you to a licensed financial planner for personal financial advice.
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Understanding the global financial crisis, with Nixon Apple.
How did we get here and how do we get out of it? The 2008 global financial crisis is having an impact on people all over the world, including Australian manufacturing workers. Jobs are being lost because of the crisis and the International Labour Organisation is predicting global unemployment to go up by more than 20 million at the same time that another 100 million people in the poorest nations find themselves earning less than $A2 a day. Many of the biggest banks in the world with trillions of dollars of workers’ deposits or shareholders funds have gone broke or had to be bailed out by governments. Stock markets around the world have seen the share prices of companies crash by 50% or more. The average Australian with a superannuation account balance of $150,000 on January 1 2008 will probably have about $125,000 by the end of the year after two decades of getting 10% per annum returns. The causes of the crisis and the solutions to fix it are complex issues. But in simple terms, we
got into this mess because too many bankers, mortgage originators, market speculators and company executives got too greedy and took too many risks and bought too many assets at inflated prices with too much borrowed money. And the people who were supposed to regulate all of this to make sure it didn’t happen, had too little information. This is because there was too little regulation and too little transparency and disclosure about who was taking too much risk in buying, borrowing and selling assets. The most common example of this was the sub-prime housing loans made to those who had little chance of repaying the loan if housing prices fell and interest rates increased. When housing prices crashed in the United States and interest rates went up, people defaulted on their mortgages, the bonds lost their value and the banks got very nervous about lending to each other, let alone their customers, for fear of not being repaid and not knowing who was holding how much bad debt. The crisis won’t be resolved overnight. Governments around the world will have to cooperate and reach agreement globally to reregulate the financial markets.
The re-regulation of banks, and how much capital and liquidity they need to protect the money of ordinary workers, will be at the centre of the agenda. Hopefully the obscene salaries paid to executives to take short term risks for short term elusive gains will be discouraged by preventing such payments from being a deductable operating expense. These and other changes are long over due. But the most important part of the short term solution will be governments and reserve banks around the world cutting interest rates, and stimulating their economies by bringing forward investments in much needed infrastructure as well as cutting taxes to increase the spending power of low and middle income earners. Australia is better placed than just about any other country to deal with this crisis; but we will still pay a cost in lost jobs, lost income and lower superannuation account balances because of the activities of those who caused the crisis and practised what they preached…that greed is good and regulation and government intervention is bad.
In honour of a union legend Two hundred people gathered in Brisbane last week to honour the achievements of legendary unionist and former Victorian Secretary and Assistant National Secretary of the AMWU, Laurie Carmichael. The Queensland Branch of the AMWU held the dinner in Mr Carmichael’s honour which was attended by officials from the union, past and present as well as former ministers of the Hawke Labor Government. National President, Julius Roe, said that Mr Carmichael’s achievements were such that even though he was a communist union leader, he advised Bob Hawke, Paul Keating, Kim Beazley and John Dawkins. When Laurie Carmichael was Secretary of the Victorian Branch of the union, there were many more members per official than today. This was based on Lauries belief in a high level of political and trade union education for union delegates, to enable them to effectively organise and bargain without the need for a full time official. “Laurie has been a passionate believer in working class education throughout his years as a union official and it was built
on this tradition.” Mr Carmichael began his union activity as an apprentice in the union’s campaign for paid time off to attend TAFE training during the day. He is remembered as a great strategist by all those who worked with him and he himself admitted that he did nothing without a plan. “I always thought ‘If I do this here, what will it set off over there?’” Mr Carmichael was the leading architect of the successful struggle for the shorter working week, 38 hours, in the metal industry. It came on the back of strong union density. Some 70% of all metal tradespersons were members of the union at the beginning of the Accord in 1983. He was at the centre of the big battles of the second half of the 20th century. He was one of the patient architects of the struggle to defeat the penal powers. “Our union, along with all others paid the fines and penalties for industrial action until the judgment was reached that the momentum was sufficient for effective defiance which culminated in the jailing of Clarrie O’Shea and the national stop work action which it precipitated. He addressed a massive
rally in central Melbourne outside the courthouse,” said Mr Roe. Mr Roe also described how Mr Carmichael understood long before many others about the significance of the growing power of the transnational companies. He supported research and organisation around these questions from the 1970s onwards.
Laurie Carmichael, Julius Roe, Andrew Dettmer and Former Treasurer, John Dawkins at the dinner
“He understood that the only response to this power was to confront it industrially and politically at both the national and international level.” “Laurie would be the first person to point out that none of these achievements were his. Nothing is ever achieved without a collective approach and the work of our delegates and members. “However, nothing effective is achieved without an effective and strategic plan and good leadership and Laurie has delivered that in spades.”
Laurie Carmichael
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Bargaining is our fundamental right Ian Steward, AMWU delegate, Qantas Changing economic circumstances are exploited by companies to hide management inadequacies. Companies highlight issues such as imports/exports, fuel prices, forward orders for products or services and then tell employees that they must reduce their wages and conditions or cut jobs for the good of the company. In good times employers promote themselves as the reason for the company’s success, but you don’t see employers planning to look after the employees if times get tough. Employers are reluctant to accept that their employees are trying to survive and provide for their families. When the livelihood, remuneration and conditions of employees are threatened, morale in the workplace crashes and workers can be forced to look elsewhere for employment opportunities either by being sacked or choice. Workers must be acknowledged as an integral part of the company and be looked after by management, but often this is not the case. That’s why we need to look after ourselves and ensure we get a fair and decent wage, despite the spin put out by employers that they’re doing it hard. They can’t be doing it that hard if massive salaries and bonuses are paid to management while they cry poor when we ask for a pay rise.
EssentialContacts AMWU National Office Location: Level 4,133 Parramatta Road, Granville Postal: PO Box 160, Granville, NSW 2142 ............................................................(02) 9897 9133 2nd Floor, 251 Queensberry St, Carlton South, VIC 3053 ............................................(03) 9230 5700 NSW Branch Location: Level 1, 133 Parramatta Road, Granville Postal: PO Box 167, Granville, NSW 2142 ............................................................(02) 9897 2011 Albury/Wodonga ................................(02) 6024 1099 Newcastle ..........................................(02) 4929 2644 Western Region ................................(02) 6337 7162 Wollongong ........................................(02) 4229 7611 VIC Branch 1st Floor, 251 Queensberry St, Carlton South, VIC 3053 ............................................(03) 9230 5700 Albury/Wodonga ................................(02) 6024 1099
When the livelihood, remuneration and conditions of employees are threatened, morale in the workplace crashes.
for news and views www.amwu.org.au email amwu@amwu.asn.au Ballarat ..............................................(03) 5332 2910 Bendigo ..............................................(03) 5442 5101 Corio ..................................................(03) 5274 2844 Dandenong ........................................(03) 9701 3044 Geelong ..............................................(03) 5229 9358 Latrobe ..............................................(03) 5134 3306 Portland ..............................................(03) 5523 2525 Shepparton ........................................(03) 5822 2510 QLD Branch Location: 366 Upper Roma Street, Brisbane Postal: PO Box 13006 George Street, QLD 4003 ............................................................(07) 3236 2550 Mackay ..............................................(07) 4953 0550 Rockhampton ....................................(07) 4927 1487 Townsville ..........................................(07) 4771 5960 SA Branch 1st Floor 229 Greenhill Road, Dulwich, SA 5065 ............................................(08) 8366 5800
Whyalla ..............................................(08) 8645 7115 WA Branch 121 Royal Street, East Perth, WA 6004 ............................................(08) 9223 0800 Bunbury ............................................(08) 9721 7933 Henderson ..........................................(08) 9410 1400 Port Hedland ......................................(08) 9140 1885 TAS Branch 28 Station Street, Moonah, TAS 7009 ............................................(03) 6228 7099 Devonport ..........................................(03) 6424 7177 ACT Office Canberra ............................................(02) 6273 2412 NT Office 1st Floor, 38 Woods Street, Darwin NT 0800 ..............................................(08) 8941 1511