QNU letter to DG: Proposed way forward for Queensland Health Payroll
Published: 9 December 2011
Dear Dr O’Connell,
Re: Proposed way forward for Queensland Health Payroll
Thank you for your correspondence dated 2 December 2011 outlining a suggested way forward in relation to Queensland Health (QH) payroll matters.
As you are aware, since the implementation of the new payroll system in March last year the Queensland Nurses’ Union (QNU) has been very actively engaged in mitigating the impact of the payroll disaster on its members. This has involved intensive ongoing consultation with QH management, the provision of continuous feedback to QNU Council on developments, ongoing support of members adversely affected and the regular updating of QNU membership via our publications.
You are also aware that in July this year delegates to QNU Annual Conference voted to endorse the proposed Heads of Agreement (HoA) on QH Payroll with a number of important caveats. It has not been possible to obtain broad agreement on the HoA in the intervening months since QNU Annual Conference and in light of this the QNU acknowledges that it is essential to find a way forward in order that the problem of the systematic generation of overpayments and underpayments is addressed.
The QNU Council has considered the current proposed way forward on payroll as outlined in your correspondence and provides in principle support for most of the proposals contained in your correspondence. Council however places on record the need for ongoing close consultation with the QNU on the implementation of this plan and highlights the following issues of particular concern related to the various components of the plan.
It should also be noted that while the QNU is supportive of certain measures outlined in your correspondence this support is based on assurances given to us that the proposed changes will demonstrably remedy the payroll issues facing our members
1. Change of pay day
Testing of proposed system changes
- It is essential to ensure that any change to the pay day is well planned and subject to rigorous system testing prior to the change occurring.
Communication to staff and support mechanisms
- A comprehensive communication strategy aimed at all staff will be essential if this change is to be successfully implemented. The QNU and other health unions must be closely involved in planning the communications strategy and messaging in order that union communications can reinforce the QH communications strategy.
- Due consideration must be given to the support required at the local facility level to ensure the successful implementation of the change, including the potential need for additional support to line managers given their centrality to successful local change management.
Employee “loans”
- Further consultation is required with the QNU and other health unions regarding the details of the proposed “loan” arrangements. It is essential that a number of options are provided to staff in relation to the proposed change, including the option to not accept a loan from QH or to repay such a loan in advance of resignation/retirement. Clarification is also sought with respect to the loan amount, including whether the loan will be specified as a dollar amount and whether it is intended for the loan to be “interest free”.
No Financial Disadvantage
- Particular attention will need to be paid to the potential for unintended consequences of this change on particular cohorts of staff such as concurrent employees, part-time and casual staff and new employees. The change process will need to demonstrate that appropriate risk mitigation has occurred with respect to these cohorts.
- We are particularly concerned about the disruption that this change will cause the timing of existing direct debit arrangements with financial institutions, especially for significant payment amounts such as mortgage repayments. This requires further close consideration and examination of all possible avenues to address the potential impacts of this change in pay timing. The No Financial Disadvantage Policy should be applied to cover employees who are financially disadvantaged due to a change in the pay day.
Relationships with employees
- Obviously a key element in the successful implementation of this change is the re-establishment of trust between employees and QH and the forging of positive relationships. As the QNU has stated since the outset of this disaster, particular attention must be paid to the management of the “human” as well as the technical elements of the change and this assertion holds true for this proposed way forward.
2. Selective lifting of the moratorium on the recovery of overpayments
The need to end the moratorium on the recovery of overpayments is acknowledged, as is the determination to commence with a staged recovery commencing with high value overpayment amounts and those who are no longer employed by QH. A sensitive approach to those affected is required.
Proposed staged process
- It is not clear from your correspondence what the “staged” approach will look like after stage one. We request detail of the proposed stages and resources allocated to each stage.
- We seek further details about the proposal to recommence recovery of overpayments from ex-employees and in particular how this group can gradually repay any amounts owed.
- Further consultation needs to occur with QNU and other health unions regarding the process of recovery of overpayments beyond the initial high dollar amount/ex-employee cohort. This must be managed in a sustainable and holistic fashion where each individual employee affected is effectively case managed by one case manager.
Case management
- As we have always maintained, it is essential that any underpayments are corrected before recovery of overpayments commences. A holistic case management approach is required, where an individual’s concerns with respect to underpayment (in relation to pay, leave and superannuation entitlements) are dealt with along with their alleged overpayments through the appointment of one case manager.
- The ability for employees to query their overpayment and be assigned a case manager, as was the established process before the moratorium, should be facilitated by QH. It is not clear whether the proposal is that case managers will only be provided for employees in stage one.
- QH must be responsible for verifying overpayments and meeting all costs associated with independent verification if this is required.
Repayment amounts
- Care must be taken not to implement “hard and fast” rules with respect to the recovery processes. In our view, any recovery of overpayment arrangements must be consistent for all groups and the processes that we agreed with respect to recovery of overpayments prior to the moratorium being announced should remain. There must also be the ability for individual circumstances to be taken into account when determining recovery amounts.
- We note with concern the proposal to require employees to repay an overpayment in a maximum of 52 fortnightly instalments, or earlier if they separate employment. This is a significant deviation from the process agreed with unions before the moratorium was put in place. In that process employees were asked to nominate an amount they were able to repay each fortnight. It is not clear why this process is proposed to be changed.
- There may be reasons some employees would prefer to repay their overpayment by a payment method other than payroll deduction. There were numerous options available to employees before the moratorium was put in place. These should continue to be available.
- No Financial Disadvantage The “no financial disadvantage” commitment from QH must continue to operate until such time that historical overpayments and underpayments are rectified.
- There needs to be a robust dispute resolution process in place as part of the recovery process. This should include the involvement of the Queensland Industrial Relations Commission and/or Workplace Rights Ombudsman as necessary.
Workplace Rights Ombudsman
- To date, we do not believe there has been adequate information provided to employees about the Workplace Rights Ombudsman’s role in resolving payroll disputes. This must be rectified before any recovery of overpayments recommences.
Outstanding issues relating to overpayments
- Before the Moratorium was put in place the QNU was in constant communication about key issues raised by our members after they were notified they were overpaid. Many of these issues remain unresolved because the Moratorium meant the matters did not need to be resolved at the time. The QNU requests Queensland Health’s response in relation to the following:–
- Employees who were overpaid were only notified of overpayment up to May 2011. How will Queensland Health deal with overpayments after May 2011?
- Employees who repaid an overpayment still received an overpayment letter and Queensland Health has acknowledged that was confusing. What will be done to ensure this confusion is overcome?
- Queensland Health has previously committed to providing employees who entered a repayment plan a confirmation of that plan and a confirmation on the date it is finalised. Will this continue to occur?
- How will 1c overpayments be treated?
- Many employees who were underpaid sought in interim cash payment and then received a letter stating they were overpaid by the amount of the interim cash payment. How will these matters be resolved?
Taxation implications of overpayments
- At the QNU Council meeting attended by Queensland Health representatives on 2 December 2011, one of our councillors queried if an employee who receives an amended payments summary for the 20009 – 2010 year because of an overpayment submits an amended tax return if they will be taken by Queensland Health to have agreed to the amount of the alleged overpayment? We seek a response to this issue in writing.
- Further, in the event the employee disputes their overpayment at the time they are asked to repay it and the overpayment is in fact greater or lesser than they were advised by Queensland Health, we seek Queensland Health’s about the taxation implications.
3. Implementation of a new rostering system
- The trialling of a new rostering system is noted with caution and we eagerly await further consultation about the trial process and its evaluation.
- Comprehensive trialling and robust evaluation is essential. Any extension of the trial must be done in a staged and planned manner. The applicability of any new rostering system must be demonstrated in a wide range of settings.
- The driving imperative must be that any new rostering system supports health service delivery and the workforce (rather than the service delivery/the workforce adjusting to meet the design of a system). In particular, the impact on part-time, concurrent, casual and agency staff must be adequately addressed by the new system.
- Ongoing consultation is required with the QNU with respect to a wide range of issues associated with the interface between the rostering and payroll system. This includes, but is not limited to, the issue of AVAC generation and processing, the potential (in the medium term) for the implementation of straight through real time processing, resourcing implications (such as ongoing support for NUMs and other line managers) and training and communication needs.
The above represents a broad outline of initial issues highlighted through QNU Council consultation on the proposed way forward with respect to QH payroll. We look forward to ongoing consultation with respect to this important matter.
The QNU remains committed to advancing and protecting the interests of our members with respect to this critical issue. Please do not hesitate to contact me should you wish to discuss this response further.
Yours sincerely,
Beth Mohle
Secretary
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