Forty ETU Delegates from Essential Energy met at our ETU Sydney Office yesterday to hear an Enterprise Agreement proposal from Essential CEO John Cleland. The intention was to ascertain the views of the ETU on an early settlement of the Essential Energy Enterprise Agreement 2018 negotiations.
Employment Conditions- A roll-over of current employment conditions through a new enterprise agreement with the one exception of replacing the current Individual Flexibility Arrangements (IFA) clause with the model flexibility term (As contained in the Fair Work Regulations 2009).
Term of Agreement- A nominal expiry date of 30 June 2021.
Pay Increase - A consumer Price Index (CPI) adjustment to wages and allowances (excluding the Electrical Safety Rules Allowance). The CPI adjustment would be capped at the NSW Governments Wages Policy Task Force limit of 2.5% per annum.
If parties reach agreement on an in-principle basis by mid-November, first wage increase would be 1 January 2018 (6 months earlier than the current expiry date of 30 June 2018), second wages increase 30 June 2019 and third wages increase 30 June 2020.
The Delegate’s had the opportunity to hear directly from John and to ask questions about Essentials proposal. After considering the proposal the Delegates called on Essential to improve the offer by putting a minimum cap of 2% in place and bring the second and third wage increase forward. The parties will work on wording for the IFA Clause.
John committed to consider the ETU’s counter proposal and respond in a timely manner. When questioned about Essentials the intent of reaching an early agreement, John’s response was the Business needs to reform through less bureaucracy, better systems and processes, improved technology, not by making changes to the Enterprise agreement.
On the question of redundancies John stated there will not be any massive wholesale redundancies. Essential are achieving reductions through voluntary redundancies and natural attrition. There will be further reductions through improved technology, but it is anticipated it will be through voluntary redundancies.