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At last, HACSU and the ASU can report to members that legislation to establish a portable long service leave scheme for the not for profit sector in Victoria is being tabled in Parliament today.
Union members may recall that in 2008, the Victorian Government announced the allocation of $1.2 million to the Department of Human Services to establish the scheme for the community sector in Victoria.
Following a feasibility report and an actuarial report the recommendations included that the scheme be established as prospective, compulsory and statutory.
Both HACSU and the ASU have been on a reference group to oversee the development of the scheme which was intended to begin from 1 July 2010, but employer opposition caused further delays. The Government held further consultation with the industry and sought an additional review by Price Waterhouse Coopers which was concluded in May of this year. Following this review, the Government has adopted a number of additional recommendations from this report including:
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Clarifying scope (eligibility) of employees in the scheme;
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LSL benefits can be taken flexibly nature (by mutual agreement), for example 4 day weeks etc;
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Employers can opt in to allow the fund to make additional voluntary contributions and have the scheme administer LSL entitlements for employees that have above the base entitlement;
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DHS will meet all establishment costs of the Scheme, which are estimated to be up to $5million (this will include initial office, staffing and legal costs) and will provide an additional $4million (directly to the Scheme) for 3 years to offset some of the administrative costs borne by the employer levy. This will reduce the 0.2% administration levy for the first 2 years;
The scheme will be reviewed 3 years post the commencement of operation.
Where to from here:
Due to the impending state election on November 27, the legislation will not be able to be passed by both houses of Parliament until the first sitting of the new Parliament, post election in December, at the earliest. Should the scheme be passed by both houses of Parliament, the commencement date for the scheme will be 18 months after the legislation has passed (time needs to allow for the set up of the Authority who will administer the scheme).
HACSU and the ASU congratulate the Victorian government for their commitment to the 40,000 workers who stand to benefit from this scheme, and urge all political parties to ensure the legislation has a smooth passage through the Parliament. It will provide improved conditions of employment in a sector where benefits are significantly less than comparable sectors.
Union members are to be congratulated for their campaigning efforts for more than seven years for the establishment of the scheme, to finally see some positive progress in the right direction!
For more information, follow this link, or call HACSU on 1300 651 931 |
