Full description
Background
Establishment of the Public Employment Industrial Relations Authority
On 2 September 1988, the Public Employment Relations Authority (AG 6453) was established under the Public Sector Management Act 1988 (Act No.33, 1988). The main purpose of the Authority was to replace the Public Service Board as the employer of Public Servants for industrial relations purposes. The Authority was managed by the Secretary of the Department of Industrial Relations and Employment and was subject to the control and direction of the Minister for Industrial Relations and Employment except in relation to salaries, wages, or other remuneration, and other conditions of employment, and any disputes relating to an Industrial matter. (1)
The Management Strategy Review of the Department of Industrial Relations and Employment
Between late 1988 and early 1989, a Management Strategy Review was conducted into the Department of Industrial Relations and Employment (DIRE) by Ernst and Whinney Services. (2) A report on the review was provided to the Premier, Nick Greiner on 23 February 1989, and a summary of the review was circulated in a Memorandum to the Departmental staff on 13 April 1989. The review concluded that that the Department’s organisational structure did not “facilitate an efficient and effective delivery of its products and services, nor a focus on Ministerial and customer service”, or “foster a sense of corporate identity.” This was due to the structure not being planned but evolving ad hoc with its various “units, branches and divisions” being created “within or attached to the Department.” (3)
The Review mainly recommended that the Department be restructured, to separate “operations and service delivery from administration and policy development”, and to include two new Executive Director positions into the proposed organisational structure. The Operations and service delivery functions were to be divided into five Divisions each of which was to be “headed by a Director and be responsible to the newly created position of Executive Director - Operations.” The five Divisions included: Industrial Relations; Public Employment Industrial Relations; Operations; Employment Programs; Vocational Education and Training. (4)
The Review also concluded that the model for public sector management in New South Wales, comprised of the Public Sector Management Act, and the activities of the Authority, had created an environment where managers in the public sector had a “lack of autonomy”. This meant that they couldn’t “reasonably be held accountable for their performance” because they had “limited influence over staff classification, gradings and industrial relations issues.” (5)
In order to address these problems the Review recommended the following: “the Public Sector Management Act be amended to give Department heads greater autonomy”; that the Department, rather than the Authority, “take responsibility for the establishment and monitoring of Government policy on broad industrial and wages issues affecting the public sector”; that Departments “and declared authorities be given greater responsibility for managing their own Industrial disputes.” (6)
The implementation of the recommendations of the Review, in regards to Public Sector Management, was assisted by a cabinet decision on the Department’s responsibility to the Public Sector in April 1989, (7) and summarised in Memorandum to all Ministers from the Premier, effective from 31 May 1989. The Department was to be responsible for “broad Government policy on an Industrial – economic plane in the public sector area”, whilst the Authority was to continue to fulfil its functions under the Public Sector Management Act 1988 (Act No.33, 1988). (8)
Establishment of the Public Employment Industrial Relation Authority [Division]
However, the functions of the Authority were also effectively expanded, by the Memorandum, beyond the scope of the Public Service Management legislation which had established it. The Department therefore appears to have established the Public Employment Industrial Relation Authority [Division] by early June 1989 in order to carry out the additional functions. (9)
The functions of the Division were to:
• Promote consistent policies throughout the public sector on wages, classifications and conditions;
• Provide support services, such as training, development and education to government agencies;
• Provide advocacy services to government agencies for appearances before industrial tribunals;
• Co-ordinate major industrial claims; and
• Advise the Minister on matters in the public sector affecting salaries and conditions. (10)
The Authority continued to be the ‘Employer of Public Servants’ for legal purposes, apparently as a branch of the Division. Some its functions were also devolved on 1 June 1989, as had been recommended by the Review. (11)
Public Employment Industrial Relations Services [Division]
By January 1990, the Department appears to have been restructured, and the Division had also been renamed the Public Employment Industrial Relations Services [Division]. However, there was no change in functions. (12)
On the 23 January 1991, when the Department of Industrial Relations was merged with the Department of Further Education, Training and Employment, the Division became a branch of the Department of Industrial Relations, Employment, Training and Further Education. (13)
By June 1993, the Public Employment Industrial Relations Service [Division] aimed to:
• coordinate the framework for public sector employee relations, including policy and strategy development
• manage remuneration and other conditions in the public service not devolved to chief executive officers
• provide specialist assistance to the Parliamentary Remuneration Tribunal and the Statutory and Other Officers Remuneration Tribunal. (14)
Public Employer Service Branch
In 1993-94, the Department of Industrial Relations, Employment, Training and Further Education was restructured to streamline and coordinate the major functions of the department through three assistant directors-general to ensure consistency of policy direction and program management. (15) As part of the restructure, some of the functions of the former Public Employment Industrial Relations Service Division were performed by the Public Employer Service Branch of the Public Employer Service and Industrial Relations Consultancy Division. (16)
The Public Employer Service Branch aimed to:
• coordinate the framework for public sector employee relations, including policy and strategy development
• manage remuneration and other conditions in the public service not devolved to chief executive officers
• promote enterprise bargaining
• provide specialist assistance to the Local Government Remuneration Tribunal. (17)
The Branch continued to assist the Director – General of the Department, by managing the Public Employment Industrial Relation Authority. (18)
On 6 April 1995, the Department of Industrial Relations, Employment, Training and Further Education's title was changed to the Department of Industrial Relations when the non-industrial relations functions were removed from the Department. (19) The Public Employer Service was removed from the Department of Industrial Relations and transferred to the Premier's Department on 6 April 1995. (20) By 30 June 1995, Public Employer Services was a branch of the Public Employment Office, an administrative unit of the Premier's Department. (21)
Once transferred to the Premier's Department, Public Employer Services coordinated Government-wide union claims and other major matters which affected more than one agency or that impacted significantly on Government policies, strategies, or practices; promoted innovative employee relations and best practice attuned to government policies; and provided strategic advice on developments in employee relations. (22)
Employee Relations Division
It would appear Public Employer Services became the Employee Relations Division of the Public Employment Office by October 1995. (23) The Division provided strategic advice to the Premier, Cabinet, Ministers and Chief Executives on sector-wide industrial relations issues as well as assisting the Commissioner as the employer of New South Wales public servants for industrial purposes. Advice was also provided to government agencies on enterprise bargaining, negotiations with unions and on matters before Industrial Tribunals. (24)
Other functions undertaken by the Employee Relations Division included assistance with the development of broad public sector pay policies; the management of public service cases; formulation of employee relations policies, strategies and practices; monitoring and coordination of sector-wide industrial issues and the coordination of redeployment of displaced staff. (25)
In 1996, the Employee Relations Division consisted of:
• the Workforce Management Centre
• Monitoring and Coordination
• Legal and Management Services
• Client Services. (26)
The Workforce Management Centre was restructured in 1995-96 to assist displaced employees through provision of information on their entitlements and assistance with redeployment. Advice was also provided to public organisations on services available for displaced employees, including those who accepted voluntary redundancy. (27)
On 30 September 1996 the Premier announced that the Premier's Department would be enhanced to ensure continuing effectiveness in implementing government policy and driving public sector reform. Responsibility for public sector management, previously with the Public Employment Office, was transferred to the Director General, Premier's Department. On 2 October 1996, by an order under the Public Sector Management Act 1988, the Public Sector Management (PEO) Order 1996, all branches of the Public Employment Office [I] were added to the Premier's Department and the Public Employment Office [I] was abolished as a department of the Public Service. (28)
Employee Relations, the Workforce Policy Division, the Senior Executive Service Unit, Superannuation Policy functions, and the Spokeswomen's Programme from the former Public Employment Office [I] were integrated with the Service Performance and Operations Division (SPOD) of the Premier's Department to form the Public Sector Management Office (PSMO) within the Premier's Department. (29)
Following a restructure of the Premier's Department on 1 July 2003, Employee Relations was merged with Workforce Planning to create the Employee Relations and Workforce Planning Branch of the Public Employment Office [II]. (30)
Endnotes
1. Public Sector Management Act 1988, ss. 3, 56 (1)-(2); ss.62–65, s.105, Schedule 7 — Savings, Transitional and Other Provisions, Part 2; NSW Government Gazette No. 140, 2 September 1988, p.4557; Department of Industrial Relations and Employment Annual Report 1988–1989, p.85.
2. Department of Industrial Relations and Employment: General Correspondence Files, 1976-1995; File No. 88/1644, Department of Industrial Relations and Employment, Internal Minute, ‘Restructuring within the Department’, 7 November 1988; Secretary of the Department of Industrial Relations and Employment to the General Secretary of the Public Service Association of NSW, regarding the report of the Management Strategy Review, 13 April 1989, SRNSW Ref: 10/50800.
3. Department of Industrial Relations and Employment: Central Records, Administrative files, 1955–1992; File No.89A/568, Vol.1, Department of Industrial Relations and Employment, Secretary’s Memo, ‘DIRE Management Review: Implementation and consequential matters for attention‘, 13 April 1989, pp.1-2, SRNSW Ref: 10/50583.
4. Ibid., p.3.
5. Ibid., p.6.
6. Ibid., p.7.
7. Department of Industrial Relations and Employment: Central Records, Administrative files, 1955-1992; File No.89A/568, Vol.2, Submission to Minister, ‘Structural Efficiency’, 8 June 1989, Attachment D, Department of Industrial Relation and Employment, Internal Minute, ’Award Restructuring – Industrial Relations Co-ordination Unit’, n.d., SRNSW Ref: 10/50583.
8. Department of Industrial Relations and Employment: Central Records, Administrative files, 1955-1992; File No.89A/568, Vol.2, J. Fahey, Report on Structural Efficiency within the NSW Department of Industrial Relations and Employment, 30 June 1989, Attachment B, ‘Devolution of Authority to Departments’, 28 June 1989, Memorandum to all Minister (No. 89/24), ‘Industrial Relations role and functions of the Department of Industrial Relations and Employment and of the Industrial Authority’, 31 May 1989, Schedule A, SRNSW Ref: 10/50583.
9. Loc. cit.; Public Sector Management Act 1988, op. cit., ss. 62–65; Department of Industrial Relations and Employment Annual Report 1988–1989, op. cit., p. 85; Department of Industrial Relations and Employment: Central Records, Administrative files, 1955-1992; File No.89A/568, Vol.2, Submission to Minister, ‘Structural Efficiency’, 8 June 1989, Attachment A, Department of Industrial Relation and Employment, Internal Minute, ‘Structural Efficiency - Industrial Authority’s Achievements’, 6 June 1989, SRNSW Ref: 10/50583.
10. Ibid., p.85.
11. Ibid., pp.85-87; Public Sector Management Act 1988, op. cit., ss. 62–65; Department of Industrial Relations and Employment: Central Records, Administrative files, 1955-1992; File No.89A/568, Vol.2, ‘Devolution of Authority to Departments’, op. cit., 28 June 1989, and attached correspondence regarding devolution, 1 June 1989, SRNSW Ref: 10/50583.
12. Department of Industrial Relations and Employment Annual Report 1989–1990, pp.7, 35-36; NSW Department of Industrial Relations and Employment Statement of affairs as at 30 June 1990, Department of Industrial Relations and Employment, Sydney, 1990; Department of Industrial Relations and Employment: Central Records, Administrative files, 1955-1992; File No.89A/568, Vol.3, Department of Industrial Relations and Employment, Internal Minutes; ‘Structural Efficiency Principle Implementation - Department of Industrial Relations and Employment’, 22 January, and 7 February 1990, and attached background papers on ‘SEP Implementation in DIRE’, SRNSW Ref: 10/50583.
13. NSW Government Gazette No.20, 1 February 1991, p.874.
14. NSW Department of Industrial Relations, Employment, Training and Further Education Annual Report 1992-1993, p.35.
15. NSW Department of Industrial Relations, Employment, Training and Further Education Annual Report 1993-1994, p.4.
16. Ibid., pp.6, 10, 24-26.
17. Ibid., p.24.
18. Ibid., p.146; NSW Department of Industrial Relations, Employment, Training and Further Education Annual Report 1992-1993, op. cit., p.117; Department of Industrial Relations and Employment, Training and Further Education: General Correspondence Files, 1976 - 1995; File No. 88/1770, Vol. 4, Submissions to Minister [of Industrial Relations and of Further Education, Training and Employment], 14 April 1992 and 5 February 1992; Vol. 5, Department of Industrial Relations, Employment Training and Further Education – Public Employment Industrial Relations Services, Internal Minute, 8 July 1993, SRNSW Ref: 10/50801.1 - These are some examples, of the numerous records contained in these correspondence files, which clearly show that the Public Employment Industrial Relations Authority (PERIA) was reporting to the Public Employment Industrial Relation Services [Division]/Public Employer Services.
19. NSW Government Gazette No.39, Special Supplement 5 April 1995, p.1859.
20. NSW Government Gazette No.39, Special Supplement 5 April 1995, p.1862 - this Gazettal Notice names the Public Employment Service as the branch being transferred from the Department of Industrial Relations to the Premier's Department but it is possible the Notice incorrectly used "Employment" instead of "Employer" because there did not appear to be a branch of the Department of Industrial Relations titled Public Employment Service.
21. NSW Premier's Department Annual Report 1994-1995, p.36.
22. Ibid., p.24.
23. NSW Government Directory 1995, 17th Edition, p.351.
24. Public Employment Office Annual Report 1995-1996, p.7.
25. Loc. cit.
26. Ibid., p.6.
27. Ibid., p.12.
28. Ibid., p.4 and NSW Government Gazette No.113, 4 October 1996, p.6791.
29. NSW Premier's Department Annual Report 1996-1997, p.9.
30. NSW Premier's Department Annual Report 2003-2004, pp.27-28.
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