User talk:Vtnl1

The EB Mathematical Paradox for Core PSA Members

I was recently elected PSA rep at Yatala Labour Prison employed with DCS for more than twenty years, throughout my service I have actively participated, with fellow PSA members in various industrial bans and action in the past, with some great results.

As we move closer to a new round of rigorous EB negotiations in order to achieve the best possible result for all public service employees.  I would like to bring to the PSA’s attention, a failing in the way wage increases are measured and applied, resulting in a paradox which appears to be left unchecked or seriously unrecognized.

Due to what is now recognized and accepted as a Global Financial Crisis. We need to be more than ever before, ready to deal with our wage demands differently compared with the past. While we need to be responsible in our claims due to current economic environment, the State Governments has a consistent logic or excuse for not awarding better salary increases, to its hard working mums and dads that go to make up our stressed State Public Service. We must gear distributions of pay increases differently from the past, for two valid reasons, the first being Global Financial Crisis which is almost impossible for us to escape, therefore we need to do all that we can for our lower income earners, the second is very much within our control, and that is to confront and transform the across the board percentage pay increases to across the board equal dollar amount increase. I’m confident that the across the board percentage pay increase was well intended, to be just, for all but is significantly flawed in not benefiting our core PSA membership that at some point we must say stop and address it as its a paradox Although not by design, the current system of percentage across the board base salary increases only continues to shatter real desire of significant or best outcome for lower income employees wage increases. As the current system, mostly boost benefits to the minority employees made up of higher senior or management staff, which might or might not be a PSA member. And yes regardless, as to whether they are PSA members or not, they still reap the biggest rewards.

Current percentage variable model Example (1) employee earns $40,000 with 1% EB increase outcome $400 Example (2) employee earns $80,000 with 1% EB increase outcome $800 Example (3) employee earns $100,000 with 1% EB increase outcome $1000

Example (2) receives boost of 100% more than Example (1) Example (3) receives boost of 150% more than Example (1)

Subscriptions gains and losses Example (1) employee earns $40,000 with 1% EB increase outcome $400 ($400 =Subscription $3.85 return to PSA)

Example (2) employee earns $80,000 with 1% EB increase outcome $800 None of this $800 gain would find its way back in .95% PSA subscription whether union members or not. Example (3) employee earns $100,000 with 1% EB increase outcome $1000 None of this $1000 gain would find its way back in .95% PSA subscription whether union members or not.

Status Quo Disguises the Paradox When the PSA and Government finally agree on a percentage. All staff on salary levels less than executives level, in the public service, will be awarded pay increase from what government refer to as a “bucket of money” made available for the purpose of salary increase. This bucket of money is distributed to staff according base level of income. This percentage method I believe was well intended, to allow status quo can remain in the pay structure such as an example below. Example A Income $10,000 10% increase=$1000+$10000=$11000 Example B Income $20,000 10% increase =$2000+$20000=$22000 Despite the fact that with a both incomes (one double the other) a 10% across the board increase example A receives $1000 less than example B, the status quo continues as example B increase still remains exactly double that of example A This destroys the idea or perception that, the gap between (example A and example B) high income earners and low income earners is getting wider. Removing the Paradox and restructure the core foundation The problem needs acknowledging in our EB wage campaign and corrected through a foundation of equal dollar amount increases across the board, as it aims the biggest gain to lower income earners which I believe is the PSA core Membership. This alternative model for allocating anticipated wage increases from governments specifically set aside funds for pay increases shouldn’t cost the government any additional funding then it already is to pays now. The equal dollar amount procedure implies a larger percentage pay increase for those at the low end of the salary scale relative to higher paid employees. The current variable foundation of percentage increase is a poor foundation for lower income earners with a standard of living being eroded

At what point and who will say stop current method is hurting those that rely on the small pay increases the most.