Re: Redundancy @ FreightCorp?

[mauried@tpg.com.au (Maurie Daly)]

On Mon, 9 Oct 2000 20:32:40 +1000, "avachat"
<avachat@dingoblue.net.au> wrote:

>
>
>Maurie Daly <mauried@tpg.com.au> wrote in message
>39e1991c.32546971@can-news.tpg.com.au">news:39e1991c.32546971@can-news.tpg.com.au...
>> On Mon, 9 Oct 2000 18:34:09 +1000, "avachat"
>> <avachat@dingoblue.net.au> wrote:
>>
>> >Their are notices posted in the Delec Train Crew Assignment building from
>> >many of those who argue that it is their right to receive a redundancy
>> >payout when FreightCorp is sold.They base their argument on the following
>> >two scenarios.
>> >Those who originally went to National Rail received an incentive payment
>> >plus accessed their Super.
>> >Then their was the GrainCorp experience where FreightCorp drivers
>received
>> >the redundancy on a Friday and started with GrainCorp on the following
>> >Monday.
>> >The RTBU Locomotive Division ( 3 Bobs ) feel somewhat differently, citing
>> >the AN experience where the new owner
>> >signed up their employees on AWAs.Sure they received the redundancy but
>are
>> >far worse off now.
>> >The vast majority i am informed are still employed as casuals and are
>> >earning far below what they enjoyed with AN.
>> >The 3 Bobs are arguing for continuity of employment so as the award
>> >conditions remain in place.Their is much to lose by taking the dangerous
>> >road many are demanding, all for a short term monitory gain.
>> >I am not posting this to create heated debate, but would welcome the
>views
>> >of the many active authors to this NG plus maybe some of the lurkers who
>> >subscribe but don't type much.
>> >Cheers
>> >avachat
>> >
>> >
>> >
>> >
>> I cant comment in the Railway industry,but having recently got out of
>> the Commonwealth Public service via a VR(voluntary redundancy),its far
>> far better to get the VR and then take your chances on continuing
>> employment with the new owner,after all they will still need
>> employees.
>> Irrespective of what the State Govt may say , once Freightcorp has
>> been sold there is no obligation on the new employer to offer any kind
>> of job security whatsoever,or to adhere to any industry awards .
>> I would have though that Freightcorp employees would be classiified as
>>
>> State public servants ,and therefore by entitled to VRs.
>>
>> Of course ,the NSW Govt will be trying as hard as it can to avoid
>> having to pay VRs to anyone ,as did my ex employer.
>>
>> MD
>>
>
>Thanks for the response Maurie,
>I can see the points and understand what your saying,
>more to FreightCorp employees point I guess is the worry that today their
>redundancy is worth
>up to 75 weeks pay + + + ++ + + etc
>but after they start with the new employer their redundancy will only be
>worth
>a considerable amount less due to the reduced time employed should they
>become surplus
>to the new bosses needs.
>Heck it's gonna be a hard decision to make, but make one we must so as we
>can tell the union
>which direction we want them to travel on our behalf.
>avachat
>
>
Redundancy payments are a liability of the current employer, in this
case Freightcorp , but as Freightcorp is being sold in its entirety
the liability rests with the State Govt.
They dont pass onto the new employer,so that its pretty important that

existing Freightcorp employees fight hard to get them .
In my case it was 2 weeks pay per year of service ,capped at 48 weeks.
Also redundancy payments are classed by the ATO as an ETP (eligible
termination payment) and are tax free.
If Freightcorp has a lot of employees with many years service ,then
the VR liability can be quite high .

If the buyer of Freightcorp doesnt want to take all the existing
employees,then its the responsibilty of the State Govt to either find
them alternative work,(possibly with Cityrail or Countrylink),but if
this isnt possible ,then its mandatory that VRs be offered.

In the case of the AN sale ,Im pretty sure that it was classed as a
clean break , ie all staff were offered VRs and then had the option of
joining ASR or NRC.
It wasnt assumed that all would be successful or would want to though.

The best option is the clean break approach,as then you get a VR, all
your super entitlements in either a lump sum or you can opt for a
rollover, your existing annual leave and long service leave
entitlements are also paid out..
Long service leave is also concessionally taxed , especially if you
have any pre 1983 entitlements.

Best of luk.

For what its worth ,Im really glad I got out of the rat race.

MD