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Winter 2004

Employers seek to reduce redundancy payments

In a cold-hearted move, the Tasmanian Chamber of Commerce and Industry (TCCI), the employers’ representative organisation, has advised the Tasmanian Union Movement that it will apply to the Tasmanian Industrial Commission to reduce the redundancy payments for workers under State awards.

The current standard in Tasmania for workers who are made redundant is two weeks for each year of service without an upper limit, i.e. if you have worked for an employer for twenty years, you are entitled to forty weeks redundancy pay.

The TCCI wants to reduce this to a maximum of sixteen weeks redundancy pay if you have worked for ten years or more.

The basis of their application is a recent decision by the Australian Industrial Relations Commission (AIRC).

The State standard of two weeks for each year of service without a cap has been in operation since 1985 and has worked well. The application being pursued by the employers is simply to reduce entitlements, which have been available to employees for nearly twenty years.

Redundancy is always the employer's decision, including how many staff are made redundant, who is made redundant etc are decisions made by the employer.

Redundancy is always a very tough time. It can make or break families.

Redundancy payments never make it right. They just soften the blow.

In a world where redundancies are increasing we should be looking to set higher standards for our society. Not trying to axe more and pay them less.

This application, if successful, will seriously reduce members' entitlements. All members working under State awards will be affected.

The application will be vigorously resisted by unions in Tasmania.