You’ve kept FRV operating for the last 6 years. You should be recognised for that.
For six years, FRV corporate staff have kept the fire service operating without a pay rise. The offer on the table is a step backwards, and UFU is fighting for you to get a better deal. Here’s what you need to know.
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Your bills have gone up. Rent and mortgages have gone up. Groceries have gone up.
Cost of living keeps rising but, since 2020, you’ve lost around 23% of your purchasing power.
FRV’s offer averages out to just 1.5% per year across the life of the agreement and the time spent negotiating. It’s not enough to make up for what you’ve lost, and it’s not enough to keep up with inflation.
Since your last payrise in 2020, you’ve lost around 23% of your purchasing power. This is what your pay can actually buy. Since your salary hasn’t changed while costs have gone up, this means your current pay is effectively worth 23% less than it was in 2020.1
Meanwhile, the real value of your pay has fallen by more than 41%. Real value is what your pay should have been worth by now if it kept up with trends as projected in 2020.2
These figures show a huge gap between what you are worth, and what you’re being paid. They are based on independent analysis commissioned by the UFU.
FRV’s offer does not address this gap. Looking at the 6 years of negotiations and 4 years of the proposed agreement, the offer averages out to a pitiful 1.5% pay rise per year. This doesn’t make up for what you’ve already lost.
Your superannuation contributions have also been affected by not having a pay rise. Because superannuation contributions are tied to your pay, not having a pay rise in 6 years means your yearly super contribution hasn’t risen, either. So it’s not just your monthly pay that’s lacking, and it’s not just your day-to-day life being affected. Your retirement savings are behind where they could have been.
Even a proposed lump sum payment won’t address the gap between your worth and their offer. These one-off payments (a ‘patience in bargaining’ payment) are taxed at the highest rate. This means an $8,000 lump sum may only be ~$4,000 you actually get to keep. This lump sum is also not factored into your salary. This means that the next time you’re discussing a pay increase, you’re coming from a lower number.3
Meanwhile, your groceries, rent, insurance and cost of living keep going up. Increasing costs and stagnating pay have put many corporate staff in a position where their lives are on hold.
Accepting FRV’s current offer will not offset increased costs until now, or further cost increases during the agreement. The current offer does not even keep up with inflation, which is the rate at which prices for goods and services rise over time.
You deserve an agreement that helps you now, but FRV wants to give you as little as possible. While you’re struggling, FRV is proposing an offer that would withhold a significant uplift until the third year of the agreement. This is unjustifiable given the financial stress many employees are facing. Even knowing this, FRV is proposing that you should keep waiting to receive what you’re worth.
1, 2 These numbers are based on independent economic analysis by Professor Bill Mitchell. You can find his report here.
3 To explain further, imagine you earn $50,000 a year for 4 years of the proposed agreement, plus an $8,000 lump sum. When it comes time to give you a pay rise, they base the increase on your stated $50,000 a year. If the lump sum was factored into your salary across the 4 years, you would instead be discussing a pay rise from $52,000 a year.
A fair classification structure is clear and objective, and lifts everyone up. FRV’s proposed offer doesn’t do that.
Under their unfair model, pay rises for some would be at the expense of others. And your progression would be subject to someone’s opinion.
Classification structure is the system that determines what level you’re employed at, what you get paid at that level, and how you move up to higher levels over time.
FRV wants to introduce a problematic classification structure as part of their offer. The UFU believes this would be a bad change for four main reasons.
Firstly – increases for some classifications would effectively be funded by reducing what others get. In other words, some people would benefit, but only at the expense of others. FRV only wants to advertise the ‘winners’ under their offer, but the UFU believes that an agreement should leave everyone better off.
Secondly – the current clear pathway for your progression will be taken away. Under FRV’s model, moving up the classification ladder would depend on someone’s assessment of you rather than objective, measurable criteria. That means your advancement could depend on your relationship with a manager rather than the work you actually do. And, if you’re passed over for a role, it is much harder to object to this (or prove it) without the objective criteria.
Thirdly – payments you’re counting on might look very different. Many employees are counting on receiving additional payments, either as a result of progressing through classification levels (an ‘uplift’ payment), or because of current yearly ‘top of band’ payments. If employees are unable to progress under FRV’s proposed model, they will not receive expected uplift payments. And, for employees at the top of their band, what is currently a yearly payment will change to a once-off payment.
Finally – FRV wants to take away your right to ask for a reclassification. Reclassification is, essentially, being moved up within your pay band because your work responsibilities have grown. Under your current agreement, you have the ability to request reclassification. This request is overseen by an independent person, rather than FRV management. FRV’s current offer has removed the clause that allows you to request an independently overseen reclassification. Accepting this would mean giving up your right to ask for reclassification. It would mean you have no recourse if your workload grows but your wages don’t.
FRV says they don’t have the money to give you a better deal. But this simply isn’t true.
In fact, for six years FRV has been receiving money from the government specifically allocated for corporate staff wage increases.
What FRV tells you and what is true can be very different things. And what they refuse to tell you – like where the money they received is going – should tell you everything you need to know.
FRV communications to staff seem to say two things: that they can’t afford a better deal, and that they are limited in what they can offer you. But they refuse to provide the relevant information to the UFU (or to you) to verify this. The UFU believes:
FRV can afford to give you a better offer. They haven’t struggled to fund executive pay rises and new director roles. And they haven’t struggled to pay for lawyers to fight your claims. Neither have they struggled to pay for consultants and contractors. This isn’t an organisation that needs to cost-cut at your expense. And, if they’ve mismanaged their funding, that shouldn’t be your problem.
FRV does have the money. They’ve been receiving government funding specifically allocated for your wage increases for the last six years. But they won’t be clear about where this money is going. The UFU has repeatedly asked FRV to show where this money has been (or will be) spent, or how it factors into the current offer. You are entitled to know that money dedicated for you is going to you, but FRV is keeping you in the dark. It is relevant information that the UFU and you as members are entitled to know.
FRV can make a better offer. When bargaining with workshop staff, FRV cut a deal for 24% over three years. They pretend they can’t do the same for you, but they can. And, if you keep holding out, they will have to. Even if their claim about being limited by a government policy was true, they could negotiate with the government for a change or exemption instead of offering staff less than they’re worth.
It is worth noting that FRV is funded by the Emergency Services & Volunteer Fund (emergency services tax). This is a specific way the government raises money for emergency services. It is not the same as the government’s other income. Since you last had a pay rise, the government has nearly doubled the emergency services tax that Victorians pay. If the funds being collected have almost doubled, it’s clear that the money for an adequate pay rise should exist.
Other front line workers have received deals much better than what FRV is offering you.
Even other FRV staff have received a deal that is much more fair than what FRV thinks you should accept.
But corporate staff keep the fire services operating. You are not less essential than other frontline workers. So why should you be asked to accept less?
Other frontline workers in emergency services have received up to 30% over 4 years. Nurses secured 28% over four years. Police secured close to 20% over 4 years. And paramedics received up to 30%. These figures don’t even account for other benefits or lump sum payments they secured.
Other government workers look set to secure even better deals. Recently, teachers and other education staff were offered between 28% and 32% over 4 years. While this offer wasn’t ultimately accepted, the government was prepared to offer these increases.
Even other FRV workers received a fair deal. As the Executive Leadership Team has reminded you, they were happy to approve a 24% overall increase in wages for workshop staff, including additional conditions such as a salary-based all-purpose, retention and continuous improvement allowances.
You are not worth less than others. You kept FRV operating during COVID-19. You kept FRV operating during the cyber attack. And you keep FRV operating every day. The least they can do is offer you the same fairness that similar workers were offered in terms of salary-based allowances.
Corporate staff deserve a deal that addresses how long you’ve gone without a change in your pay.
A fair deal doesn’t just look at the next 4 years. It looks at the last 6 years of stagnating pay.
For many members, insufficient pay has meant putting life on hold for far too long. As cost of living has increased, members have had to forego essentials. The UFU is fighting for a deal that addresses the drop in your purchasing power, letting you catch up on lost time.
A new EBA should improve the terms and conditions of your employment, not wind them back.
Your bargaining representatives have been firm in telling FRV that it’s not acceptable to wind back any hard-fought terms and conditions of employment.
Your bargaining representatives have worked hard to negotiate in clauses that give you improved conditions – like menstrual, menopause and miscarriage leave. There are also other essential clauses that many workers rely on – like top-of-band payments and the reclassification clause. The UFU is fighting for a deal that doesn’t strip out important terms and conditions like these.
We’re also fighting to ensure that no clauses are introduced that would make your work life worse. It’s alarming to see FRV proposing an offer with clauses that would potentially see you monitored or surveilled. The UFU categorically opposes any clauses that aim to take away your privacy, such as allowing management to access your emails.
You should be able to count on keeping your job and progressing fairly over time.
Without that basic guarantee, how can anyone plan for the future?
FRV must understand that CTA roles are not an opportunity for cost-cutting. The UFU is fighting for a deal where it’s crystal clear that your job isn’t going anywhere. We’re also fighting to ensure your progression pathways are clear and objective – not at the whims of someone else’s feelings about you.
The UFU exists to advocate for workers and has a legitimate right and interest in negotiating for the best outcome.
But we can’t do that if information is being withheld, or if we’re stuck having to go to Fair Work to get anything done.
While it may suit FRV’s narrative to cast us as the source of delays, the reality is that we’ve been repeatedly stonewalled. Without the full financial picture, for example, how can we advise members about the truth of FRV’s claims?
The reality of the situation is simple: Only FRV has an incentive to offer you a bad deal.
The UFU are mindful that we should be methodical, meticulous and analytical regarding any documentation that FRV provide. In doing so, we will maintain a position of responsibility in delivering the best possible outcome for corporate and technical staff.
The UFU and our bargaining representatives are committed to securing a fair deal as soon as possible. Our bargaining representatives are ready and waiting to finish negotiations.
The UFU believes six years without a pay rise is far too long. This is especially true when the government instructed FRV to wrap up negotiations by June 2022 – making a deal four years overdue.
However, despite wanting to, our bargaining representatives haven’t been able to continue negotiations about the agreement with FRV in over a year. Instead of engaging with our bargaining representatives, FRV has instead authored their own version of an agreement and offered it to CTA staff. The UFU does not think this is a genuine attempt on their part to finalise things. We believe it’s an attempt to subvert the bargaining process entirely.
There are still outstanding discussions to be had about specific terms and conditions. For example: we don’t believe your email should be monitored and don’t want any clauses or terms that would allow that. Our bargaining representatives are determined to see these discussions through in a timely manner. All we need is for FRV to come back to the table.
If you need more information, just let us know.
Unions have fought for decades to defend your right to seek fair pay and fair conditions, and to ensure your job security. Under the Fair Work Act, there are legislated general protections that protect you from FRV taking any detrimental action against you. Therefore, you cannot be punished for joining your union or getting involved in protected industrial action. The UFU will use all avenues to defend your legal rights and your employment.
If you have any concerns about how you are being treated (or might be treated) if you get involved, let us know.
