The proposed new enterprise agreements include a number of savings/compensation provisions and benefits from the service delivery partnership plan agreed between the parties. Achieving these benefits will help cover the ongoing implementation costs of new or improved staff services. The amount of additional funding to be granted includes these savings/compensations. The more “localized” modeling method also implies a more direct link between EBA costs and the application of DFM indexation for each public hospital or health service to determine the appropriate level of additional resources. This means that if the department has calculated the DFM indexation as a match or an increase in EBA costs in a given year (or year), there will be no additional funding in the corresponding year (or years). Public hospitals and health services will be funded by the Budget Payment System (BPS) as part of the payment on 10 April 2018. Users of the Healthcollect portal can view the details of this payment through the portal. As soon as the new agreements come into force, public hospitals and health services will have to ensure that the 3% increase in salaries is applied from the first full pay period from 1 January 2018 to the same “basic amounts” for which the 6% increase in the “additional adjustment of the wage scale” has been applied to wages. The combination of these two increases should be not to increase the base amounts by more than 9% – that is, the two increases do not get worse. Figure 1 below shows how the MFD would be calculated for a hospital with a salary base of $100,000.
DFM indexation, considered a DFM indexation, is calculated on the basis of the corresponding salaries at the time of the expiry of the prior enterprise agreement. DFM compounds at a rate of 2.5% per year after that. The former physician enterprise agreements have reached their nominal expiry date of March 30, 2017, with the last annual salary increases to be paid under these agreements coming into effect from the first full pay period from December 1, 2015. To be eligible, the doctor must have been employed by a public hospital or health service as of January 1, 2018 in order to benefit from the payment of the signature either under the new DIT agreement or under the new specialist agreement. Since the annual wage increases under the proposed new enterprise agreement exceed the government`s usual wage increase of 2.5% per year, the government has agreed to provide a financing bonus equal to the difference between the annual wage increases described in the proposed new enterprise agreements and the standard rate of 2.5% per year. This additional funding will be recurrent. The proposed new enterprise agreements provide for four annual wage increases of 3% for the first full salary periods, which will begin on January 1, 2018, January 1, 2019, January 1, 2020 and January 1, 2021. An additional salary increase of 6% is also due from the first full pay period from or after 1 January 2018, so that the overall wage increase of 9% must be paid from that date. In general, the government`s labour relations policy requires that a new enterprise agreement be approved by the Fair Labour Commission before the payment of a benefit under that agreement can be passed on to the workers concerned.
However, recognizing the special circumstances in this case, the government authorized the prepayment of the 6% increase in wage increases after the workers` successful votes were reported. This payment has a retroactive effect on the first full salary period, which begins on January 1, 2018.
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