ETU Media Releases

ETU Media Releases

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Essential Energy workers vote to take industrial action.

Paul Lister - Tuesday, March 29, 2016

Electrical Trades Union members employed at Essential Energy have voted overwhelmingly in support of industrial action and other work bans, with stoppages at the publicly-owned electricity network company now able to lawfully take place from early next month.

The ballot, conducted by the Australian Electoral Commission, found 94.8 per cent supported implementing work stoppages of between one and 72 hours in length, while 96.1 per cent endorsed imposing bans on a range of work practices, including overtime, training, paperwork, and the use of computers, mobile phones and other technologies.

The vote came as the NSW Government-owned company is undertaking an unprecedented legal attack on workers, seeking to terminate a range of agreements and policies.

If successful, the case could terminate policies covering redundancy provisions, staff redeployments, and salary maintenance, stripping away wages and conditions from thousands of employees across the state.

The company has also proposed a new workplace agreement that would allow the immediate sacking of 800 regional employees, as well as an unlimited number of job cuts after June 2018.

ETU secretary Steve Butler accused Essential Energy management of treating their loyal workforce with complete contempt.

“Essential Energy management are holding a gun to the head of their entire workforce, telling them to voluntarily accept cuts to their pay and conditions or face an unprecedented legal move that would see workplace agreements and policies simply torn up,” he said.

“The result of this ballot shows workers won’t accept that kind of treatment, and they are ready and willing to take industrial action and other forms of protest until Essential Energy starts to bargain in good faith by considering the needs of their workforce.

“This is the first time a publicly-owned company has attempted to rip up their own workplace agreement, which had been negotiated in good faith, using it as a tool to threaten massive cuts to wages, conditions and jobs.”

Mr Butler said the company was refusing to budge from their proposal that staff accept a two-year wage freeze, a ban on redundant employees applying for other jobs with the company for two years, a halving of the payment when workers are called in from home to emergencies, and the removal of requirements for private contractors conducting outsourced work to pay appropriate wages and conditions.

“Liberal and National Party MPs should hang their heads in shame,” he said.

Thousands of NSW power workers have jobs, pay and conditions threatened in unprecedented attack

Paul Lister - Tuesday, March 08, 2016

In an unprecedented legal attack, NSW Government-owned electricity distributor Essential Energy this afternoon filed legal proceedings seeking to terminate a range of agreements and policies covering thousands of power workers across the state.

The move to terminate an existing workplace agreement, along with policies covering redundancy provisions, staff redeployments, and salary maintenance, is the first attempt by a publicly-owned corporation to use a controversial legal precedent — set last year — to strip away wages and conditions.

Documents filed with the Fair Work Commission, signed off by Essential Energy CEO Gary Humphreys, confirm that existing job protections and conditions would be lost, with staff instead receiving lower pay and conditions under the Award.

The Electrical Trades Union and United Services Union, which together represent Essential Energy workers, said the move to tear up the agreement — the week a ballot asking staff whether they support taking industrial action opens — was nothing more than an attempt to intimidate the workforce.

“This is an unprecedented attack by a publicly-owned organisation on its own workers,” USU energy manager Scott McNamara said.

“Either the NSW Government is behind this attempt to carry out unfettered job cuts in rural and regional NSW, or management have gone completely rogue.

“If Essential Energy succeeds in having the existing workplace agreement torn up, thousands of jobs could be cut across NSW, while wages and conditions for the remaining workforce would be slashed.”

ETU assistant secretary Neville Betts called on rural and regional MPs to demand urgent action by the Baird Government to have Essential Energy’s management brought into line.

“Before the election, Mike Baird promised the people of NSW that Essential Energy would remain in public hands, that regional jobs would be secure, and that electricity consumers wouldn’t face a downgrading to local skills and services,” he said.

“Instead, Essential Energy management — either in a rogue move or with the blessing of the NSW Government — has launched an unprecedented legal attack on his own workforce that could see thousands of highly-skilled and loyal workers lose their jobs.

“Regional MPs need to urgently speak up in defence of local workers who are being stood-over and intimidated by management.

“To do anything else would be an admission that the voters of NSW were deliberately deceived about the future of the publicly-owned electricity distributor.”

Mr McNamara also questioned the timing of the application, which came just hours after it was publicly revealed that the Australian Electoral Commission was carrying out a ballot of Essential Energy employees that could result in them taking protected industrial action as early as next month.

“This has all the hallmarks of a heavy-handed attempt to pressure staff ahead of this vote,” he said.

“Management are using the threat of having this workplace agreement terminated entirely to strong-arm staff into signing away conditions in advance.”

Essential Energy workers hold vote on industrial action over proposal to slash 800 regional jobs

Paul Lister - Monday, March 07, 2016

A ballot of Essential Energy employees across NSW will decide whether staff at the publicly-owned electricity network take industrial action over a proposal by the company to slash 800 regional jobs and remove key workplace conditions.

The Fair Work Commission has approved the vote, with the Australian Electoral Commission this week distributing ballot papers to thousands of Essential Energy employees.

Essential Energy staff have until March 22 to vote on a range of protest actions, including work stoppages of between one and 72 hours in length, and bans on a range of work practices including overtime, training, paperwork, and the use of computers, mobile phones and other technologies.

The Electrical Trades Union and United Services Union, which represent Essential Energy workers, said the industrial action vote was a direct response to a new workplace agreement, proposed by Essential Energy management, that would see the forced sacking of 800 regional employees and allow an unlimited number of further job cuts after June 2018.

The unions said the proposal would also freeze wages for two years, ban employees who are made redundant from applying for other jobs with the company for two years, halve the amount workers are paid when called in during emergencies, and remove a requirement that private contractors doing outsourced work must pay appropriate wages and conditions.

“Industrial action is always a last resort,” ETU assistant secretary Neville Betts said. “Our members would much rather negotiate a fair outcome that protects regional jobs.

“While we remain committed to negotiations, workers were left with few alternatives after Essential Energy circulated a draft agreement that includes massive job cuts, cuts to wages and conditions, and provisions that allow work to be outsourced to unscrupulous contractors.

“If workers vote in support of industrial action, a range of work stoppages or other protest actions could begin as early as next month.”

USU energy manager Scott McNamara said the NSW Government was responsible for a slash-and-burn mentality at the publicly owned company, which put the future of regional jobs and services at risk.

“The Nationals told voters in rural and regional NSW they wouldn’t privatise Essential Energy, but what they didn’t tell them was that they would slash regional jobs and services after the election,” he said.

“Cuts to jobs and conditions inevitably impact on local communities, while also undermining safety, network reliability and response times following emergencies and natural disasters.

“It’s time for Essential Energy to abandon their attacks on thousands of loyal workers and instead negotiate in good faith to reach a fair workplace agreement.”

ETU vindicated as Tribunal confirms Australian Energy Regulator got it wrong on power pricing

Paul Lister - Friday, February 26, 2016

The Australian Energy Regulator is being urged to strike a better balance between affordability, reliability and safety after the Australian Competition Tribunal today ruled there were flaws in the modelling and assumptions used to set NSW power prices required the process to be conducted again.

The Electrical Trades Union, which represent the workers that maintain and operate the state’s electricity network, said the decision vindicated their argument that massive cuts imposed by the AER were wrong and would negatively impact on service delivery and network reliability.

ETU secretary Steve Butler urged the AER to take a more sensible approach when remaking their determination, with a greater emphasis on striking a balance between price, safety and reliability.

“The people of NSW don’t just need an affordable energy supply, they need one that is reliable, well-maintained and safe,” Mr Butler said.

“Unsustainably slashing the money spent on maintaining, repairing and operating the network simply leads to inadequate infrastructure that may spark bushfires, fail in periods of extreme weather, or result in a growing number of blackouts and service disruptions.”

Mr Butler also hit out at Opposition Leader Luke Foley over his support for the flawed AER process.

“Luke Foley simply has no idea when it comes to delivering an affordable, safe and reliable electricity network that best serves the interests of the people of NSW,” he said.

Steve Butler also said the decision should now force a rethink of the significant job cuts being pursued by Essential Energy, Ausgrid and Endeavour Energy.

“Thousands of proposed job cuts being pursued by the publicly-owned electricity companies Essential Energy, Ausgrid and Endeavour Energy, were based on the flawed AER determination and should now be abandoned,” Mr Butler said.

“The loss of loyal, highly-skilled workers across the state is short-sighted and will inevitably impact on consumers through poorer services in the future.”

The decision by the Tribunal includes an order that the AER go back to the drawing board and remake their operating expenditure decision using a broader range of modelling and benchmarking using a "bottom up" approach.

That ruling aligned with the findings of an extensive independent review — commissioned by the ETU and conducted by economist Thomas Devlin —  that identified serious flaws in the AER’s modelling and assumptions including:

  • the use of customer density instead of line length;
  • a failure to breakdown operating expenditure into subcomponents, making it impossible to credibly identify potential drivers of inefficiency;
  • an over-emphasis on labour costs, based on questionable research;
  • a simplistic approach to asset life when comparing networks; and
  • relying on benchmarking rather than a ‘bottom up’ approach considering process and structure.

You can read Thomas Devlin's report and findings here.

Premier urged to send NSW power workers to Fiji to assist with recovery efforts following Cyclone Winston

Paul Lister - Monday, February 22, 2016

The Electrical Trades Union this morning wrote to Premier Mike Baird urging him to send a team of NSW power workers to Fiji to assist with restoring electricity services after the island nation was devastated by Cyclone Winston on the weekend.

The union identified more than two hundred highly trained employees from Ausgrid, Essential Energy and Endeavour Energy that management at the publicly owned electricity network companies have recently withdrawn from frontline work after classifying them as “excess to requirements” or “redeployees”.

ETU secretary Steve Butler said NSW was in a unique position of being able to quickly deploy a team to assist in the rebuilding and repair of Fiji’s electricity network.

“The fact is that once power is restored, other recovery efforts can take place more quickly,” Mr Butler said.

“The publicly owned NSW electricity companies currently have the resources available. All that is required is the political will to accept volunteers from the workforce to travel to Fiji.”

Mr Butler said recent decisions by management at the NSW electricity network companies had left many employees sitting in depots without work to do despite local maintenance backlogs and that these workers could be easily and quickly deployed.

“Many of these workers have simply been told to sit in the depot and not interact with other staff despite local maintenance backlogs,” he said.

“A large number of them would happily volunteer to assist the people of Fiji.

“Not only would that benefit our Pacific neighbour as it attempts to repair a ravaged electricity network and restore power, but it would allow these highly skilled workers to get back to work.”

The union pointed to the response to Cyclone Tracey in 1974, when a team of NSW power workers travelled to Darwin to assist local crews with the mammoth task of reconstruction.

“Assistance may be required from the Commonwealth to liaise with the Fiji Government in order to establish the exact number of power workers and the type of skills that they require, as well as some logistical support, but I would be shocked if such an offer wasn’t welcomed with open arms,” Mr Butler said.

“The ETU has identified how our members are able to assist, but at the end of the day we need to await a response from the Premier.

“Once we get the green light the ETU is ready to work quickly with the NSW Government and the Commonwealth to get these crews in place.”

Mr Butler also suggested that airlines may be able to assist, with relatively empty flights heading to Fiji to accommodate the many Australians wanting to return home.

“If the Premier picks up the phone to some of the airlines, hotels and Canberra there will almost certainly be offers of assistance to get these crews’ to Fiji, and have them fed and accommodated.” he said.

A copy of the ETU's letter to Premier Baird can be viewed here.

Essential Energy delegates reject proposed agreement that would slash 800 regional jobs and cut conditions

Paul Lister - Thursday, February 11, 2016

A draft workplace agreement produced by Essential Energy, which includes clauses allowing the immediately forcible sacking of 800 regional employees and an unlimited number of job cuts after June 2018, was rejected by workplace delegates from around the state at a meeting in Sydney today.

More than 50 Essential Energy delegates, representing colleagues from workplaces and depots across NSW, met to examine the agreement which was provided to staff this week by management.

The proposed agreement strips employees of a range of conditions and outlines massive job cuts across rural and regional NSW, with clauses in the draft Essential Energy enterprise agreement seeking to:

- cut 800 full time jobs, using forced redundancies;
- allow unlimited job cuts from July 2018;
- deem all currently redeployed staff as “excess employees” and, if no position is immediately available for them, make them redundant;
- ban employees who have been made redundant from being re-employed by the company within two years, unless it is a casual or temporary job and has the CEOs approval;
- halve the amount workers are paid when they are called into work in emergencies, from a minimum of four hours pay to just two;
- remove requirements that when work is outsourced, the private contractors must pay appropriate wages and conditions; and
- implement a two year wage freeze.

The Electrical Trades Union and United Services Union, which represent Essential Energy workers, said the proposal was the latest in a series of savage cuts that threatened the NSW Government-owned electricity network’s ability to provide reliable and safe services to rural and regional NSW.

“This proposal is an attack on Essential Energy employees and their communities that would result in massive cuts to services and jobs in regional NSW,” ETU Secretary Steve Butler said.

“Since 2013, the number of Essential Energy employees across regional NSW has been slashed by more than 1,000, and if this agreement is approved a further 800 jobs would be axed immediately.

“Enterprise bargaining generally means that if you give something up you get something in return, but it seems Essential Energy management think it’s a one-way street.

“Not only is Essential Energy wanting to sack people, but they want to slash working conditions for remaining staff as well as implement a two-year wage freeze that will leave people worse off.

“The NSW Government seems intent on slashing regional jobs at Essential Energy, which threatens service standards while maximising the profits they take from rural and regional electricity customers.”

USU energy manager Scott McNamara said workplace delegates had made clear at today’s meeting that this proposal was simply unacceptable.

“Regional communities across NSW are facing a double whammy from the NSW Nationals as they push ahead with council amalgamations as well as regional job cuts at Essential Energy,” he said.

“Workplace delegates today reaffirmed their commitment to negotiating a new agreement in good faith and considering any proposal that contained reasonable options.

“But they refuse to stand by while jobs, services and standards are cut across regional NSW.”

Central Coast residents forced to wait for power reconnection

Paul Lister - Monday, January 18, 2016

The Electrical Trades Union (ETU) says Central Coast residents were forced to wait days for power to be reconnected following last week’s storm because of massive staff cuts at electricity network operator Ausgrid.

ETU Secretary Steve Butler said that extended delays in the restoration of power supply following storms and major network breakdowns was becoming a regular occurrence because electricity network company’s across the state, including local provider Ausgrid, have cut more than 1,000 front line staff in the past year.

“What we have seen in the past year is the slashing of more than 1,000 front line electricity jobs across NSW with almost fifty of those coming from Ausgrid’s Central Coast depots.” said Steve Butler.

“The community should not be forced to wait days after a storm has passed to have their electricity supply restored.”

“Some parts of the Central Coast around Bateau Bay, Berkley Vale, Somersby and Kulnura were without power for up to four days and we believe that is a direct result of the fifty local jobs that have been cut on the Central Coast.” Mr Butler said.

“Imagine there were an extra twelve work crews out there reconnecting people following last Thursday’s storm – my bet is that every single resident would have been reconnected at least 24 if not 48 hours earlier than what they were.”

“My fear is that this type of delayed response will only get worse in the future because these power companies are planning even more cuts with Ausgrid wanting to sack a further 1,100 workers from the Central Coast, Hunter Valley and Sydney.”

“Our members pride themselves on going out to help the community after major blackouts, often in dangerous conditions, but to have management make a decision to slash jobs makes the task of reconnecting the public more difficult.” said Mr Butler.

“On top of this the Baird Government implemented new regulations in 2014 limiting the amount of compensation payable to customers following extended blackouts while adding a list of conditions that must first be met.”

“Ausgrid customers are now restricted to claiming a measly $80 for blackouts of more than 18 hours however this is not payable if the blackout was caused by a third party or natural disaster, including storm events, meaning that local residents will be left empty handed for the latest blackouts.” said Mr Butler.

“A lot of people are unaware of the massive changes taking place in the electricity sector, I hate to be the bearer of bad news but none of these changes are good for customers.” Steve Butler finished.

NSW Electricity Network will struggle in hot conditions

Paul Lister - Tuesday, January 12, 2016

As NSW gears up for a period of hot weather the Electrical Trades Union (ETU) has raised concerns over the NSW Electricity Network’s ability to cope in what will be forty degree days as we approach the middle of summer.

ETU Secretary Steve Butler said that cuts to staffing levels and a reduction in network investment by the NSW Government have left the network vulnerable to periods of high demand like those presented this week with extremely hot weather forecast.

“What we have brewing is the perfect storm where the Baird Government has drastically cut investment in the NSW electricity network over the past 18 months while at the same time they have sacked more than one thousand frontline electricity workers across the state.” said Steve Butler.

“When the mercury rises to levels around forty degrees and above what we see is thousands of businesses and households crank up their air conditioner which puts and enormous amount of pressure of the electricity network as the demand for power peaks.”

“In the past the electricity network has coped well during these extreme weather periods but we now hold serious concerns about the Network’s ability to cope due to cuts to investment and massive staff reductions.” said Mr Butler.

“In the past year alone Ausgrid have slashed 879 electricity workers while Endeavour Energy has cut 155 staff and regional network operator Essential Energy has axed more than 350 regional jobs”

“Coupled with frontline staff cuts is a reduction of almost $500 million in network investment in the past year meaning the network we had twelve months ago is expected to cope with the demands of today.”

“The feedback from electricity workers is that the network is not in good shape and recent cuts to staff numbers and investment is having a material effect.” Mr Butler said.

“So today we are simply warning members of the public not to be surprised if the air conditioner stops working or your refrigerator is blacked out because we believe the decision of the Baird Government to cut staff numbers and slash network investment will come home to bite the general public at some time.”

“On top of these cuts, last year the NSW Government quietly reduced the amount of compensation customers can claim in the event of prolonged blackouts to a measly $80 per year but only when certain circumstances are met.”

“When your air conditioner, refrigerator and lights go out this summer remember to thank Mike Baird and his government for the deep cuts they have made to the NSW electricity sector but don’t bother emailing because your computer and internet connection will probably not be working.” Mr Butler finished.

Essential Energy executives paid generous bonuses while front-line jobs slashed across regional NSW

Paul Lister - Monday, December 21, 2015

Executives at publicly-owned electricity network operator Essential Energy received almost $4 million, including generous bonuses of up to $72,000, at the same time they were claiming challenging financial conditions left them with no choice but to axe 700 regional jobs and reduce services for consumers.

The company’s annual report, quietly released this month, also revealed that after tax profits for the last financial year were $266.3 million, while the company paid a total of $248.8 million to the NSW Government.

Essential Energy chief operating officer Gary Humphries took home the most generous package, with his wage and bonuses totalling $544,731, in addition to superannuation and other benefits.

Ten executives at the company received a total of almost $4 million, with base wages of $3,522,747, while seven pocketed a share of $303,910 in bonuses. The ranks of senior management also swelled by more than ten per cent, going from 138 the year before to 153.

The revelations came as Essential Energy management on Friday told employees they would be forced to use accrued annual and long service leave, whether or not they wished to, to help the company save money.

The Electrical Trades Union slammed the culture of executive greed, saying it was extraordinary that at the same time apprentice programs were being axed, regional depots closed, 700 jobs cut, and employees were being forced to use up leave entitlements, management were pocketing such huge salaries.

“Essential Energy is meant to be a publicly owned company delivering an essential service to vast parts of NSW,” ETU secretary Steve Butler said.

“Instead, it is being run as a profit-making machine, with the NSW Government gouging $270.8 million from the electricity bills of homeowners and small businesses, while senior management take home huge salaries and massive bonuses.

“The community was told Essential Energy had no choice but to slash jobs and services because of the financial challenges it faced, yet now we see that those cuts were only necessary because the Baird Government and the individual executives have been lining their pockets.

“What is even more disturbing is that this executive management team and their actions have been supported whole-heartedly by the NSW Government, including local MP’s from the Liberal and National parties.

“These are the actions of a company and executive team that are totally out of touch with the communities they are meant to serve, and quite frankly completely out of touch with the expectations of voters about how publicly-owned utilities should behave.”

Click here to read a full copy of the Essential Energy 2014-15 Annual Report.

Endeavour Energy executives receive generous bonuses while front-line jobs slashed

Paul Lister - Monday, December 21, 2015

Executives at publicly-owned electricity network operator Endeavour Energy received almost $4.6 million, including bonuses of up to $165,474, at the same time they claimed challenging financial conditions left them with no choice but to axe 120 jobs across Sydney, the Illawarra, and Southern Highlands.

The company’s annual report, quietly released this month, also revealed that after tax profits for the last financial year were $243.6 million, while the company paid a total of $270.8 million to the NSW Government.

In addition to superannuation and other benefits, Endeavour Energy chief executive officer Vince Graham’s wage and bonuses totalled $953,444, while chief operating officer Rod Howard was paid $558,147.

In total, executives at the company received almost $4.5 million, with base wages of $3,857,176 along with $443,222 in bonuses.

The Electrical Trades Union slammed the culture of executive greed, saying it was extraordinary that at the same time apprentice programs were being axed and 120 jobs cut, management were pocketing huge salaries and annual bonuses that were much larger than most employees’ total salaries.

“Endeavour Energy is meant to be a publicly owned company delivering an essential service to millions of people in Wollongong, the Southern Highlands, Blue Mountains and much of Sydney,” ETU secretary Steve Butler said.

“Instead, it is being run as a profit-making machine, with the NSW Government gouging $270.8 million from the electricity bills of homeowners and small businesses, while senior management take home huge salaries and massive bonuses.

“The community was told Endeavour Energy had no choice but to slash jobs and services because of the financial challenges it faced, yet now we see that those cuts were only necessary because the Baird Government and the individual executives have been lining their pockets.

“What is even more disturbing is that this executive management team and their actions have been supported whole-heartedly by the NSW Government, including local Liberal and National Party MPs.

“These are the actions of a company and executive team that are totally out of touch with the communities they are meant to serve, and quite frankly completely out of touch with the expectations of voters about how publicly-owned utilities should behave.”

Click here to read a copy of the Endeavour Energy 2014-15 Annual Report.