Review

Further to the information in the last Newsletter.

Both Paul Swain (Chair of the Commission) and Paul Baxter (CE/NC) attended the Union Committee meeting this week to discuss further the Review.

Arising from the discussion, the Union was asked to provide to the Commission key issues that must be address.

Given that almost all the detail is still to be specifically considered and addressed, the Unions key issues relate to the need to develop a detailed road map for progress to include time lines and structure for consultation.

Key personnel need to be appointed and the appropriate working parties established with clear terms of reference and time lines.

The Union were given assurances that we would be properly involved in the development of the Transition.

IFE

Further to previous updates the Union has been advised that the Employment Relations Authority has set down 20th June to hear this matter.

Union Compensation Scheme

For some time the Union has been aware that on renewal of the Scheme (as at April 2016) Premiums must increase.

A simple look at 2014 and 2015 results shows that for both years just under $200,000 was collected in Premiums.

Payments for claims in 2014 was $300,000 and in 2015, $400,000.

After going to tender and considerable negotiation the present Insurer (Sovereign) provided the best prices. The quotes were based on the current benefit structure (including total and permanent disability) of $18.97 (an increase of $8.33 per fortnight).

For death benefit only - $14.96 (an increase of $4.32 per fortnight).

In considering the two options, as well as the magnitude of the increase, the Committee were aware that almost all of the claims over the past few years have been death claims.

Consequently the Committee determined to accept the quote for the death cover only. The consequent increase in Premiums will occur in 6 months’ time – 1 September. The increase will be to $14.96 per fortnight.

Wellington Office Manager

Members are advised that Wendy Devenport has been employed as Pam Boyd’s replacement in the Wellington office.

 

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