Industrial Relations Commission of New South Wales CITATION: Department of Corrective Services and Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales [2009] NSWIRComm 121 NOTIFIER: Department of Corrective Services PARTIES: RESPONDENT: Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales FILE NUMBER(S): IRC 759 of 2009 CORAM: Walton J Vice-President CATCHWORDS: INDUSTRIAL DISPUTE - conciliation - correspondence from Minister for Corrective Services - savings requied in court security and escort services of Department of Corrective Services - prospect of outsourcing - time frame for completion of conciliation - parties co-operating - substantial partial realisation of savings - further conciliation programmed - Statement issued LEGISLATION CITED: Industrial Relations Act 1996 HEARING DATES: 26/5/09, 30/6/09, 2/7/09, 21/7/09, 22/7/09 DATE OF JUDGMENT: 27 July 2009 NOTIFIER: Mr J Murphy of Counsel Crown Solicitors' Office LEGAL REPRESENTATIVES: RESPONDENT: Mr S Turner and Mr S Little Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales JUDGMENT: INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES CORAM: WALTON J, Vice-President Monday 27 July 2009 Matter No IRC 759 of 2009 Department of Corrective Services and Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales Notification under s 130 of the Industrial Relations Act 1996 STATEMENT [2009] NSWIRComm 121 1 By correspondence from Mr John Robertson, MLC, Minister for Corrective Services, dated 20 May 2009, there was notified, pursuant to s 130 of the Industrial Relations Act 1996, the existence of an industrial dispute as to a range of industrial issues surrounding the prisoner escort and court security functions undertaken by the Department of Corrective Services. 2 The background to the industrial dispute may be briefly stated. The Minister requested the Department of Corrective Services ('the Department') and the Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales ('the PSA') identify and implement strategies that would realise savings of $5 million per annum in relation to the Department's inmate escort and court security functions within six months. He further advised that, should the savings through efficiencies not be identified and implemented within six months, the Government intended to outsource inmate escort and court security service functions to the private sector. 3 The industrial dispute proceedings were first listed for compulsory conference on 26 May 2009 and have continued thereafter in conciliation conferences before the Commission. In the interval between the initial compulsory conference and the issuing of this Statement, conciliation conferences have been held over four sitting days. This Statement deals with the progress of that conciliation to date. 4 At the commencement of the conciliation process, the Department made a submission which identified possible savings from the Court Escort Security Unit ('CESU') budget sufficient (in fact, more than sufficient) to meet the earlier mentioned savings objectives of the Government. That submission documented, in some detail, the nature of the changes proposed by the Department and was supplemented by comprehensive factual material as to the operation of the CESU. As the conference progressed, representatives of the PSA assisted the process by also identifying possible areas of savings. In the result, the parties have focussed their attention, during the conciliation proceedings, upon the merits of the proposed savings initiatives and costings for the same. 5 In my view, parties have, to date, constructively approached the task presented them in the conciliation proceedings and have engaged in the utmost good faith bargaining. They have fully co-operated with each other and with the Commission in its efforts to assist them in reaching a suitable outcome to the subject matter of the dispute. This much is illustrated by the fact that, in the first two month interval since the conciliation process commenced on 26 May, the parties have identified savings of about $2 million. Those savings concerned the utilisation of casual correctional officers within the court escort and transport function of the Department. They consisted of tangible, recurrent savings in the CESU's budget. 6 There is an agreed programme for the consideration of a further, specified set of cost savings in the next two month interval after the issuing of this Statement which, if realised, would either wholly or substantially meet the savings objectives for the prisoner escort and court security functions of the Department well in advance of the six month limitation period. All of this does seem to confirm the wisdom of the Minister's approach in this particular case. 7 It is not possible to provide any more detail in this Statement as to the progress of the matter for two reasons. Firstly, that step would be inappropriate in conciliation proceedings. Secondly, the issuing of more information in that manner would undermine the confidentiality arrangements presently applying to the conciliation process. Whilst the parties will have an opportunity in due course to consult with persons affected by the savings and other relevant stakeholders and interests, the parties are bound to strict confidentiality arrangements during the course of the conciliation proceedings. 8 Those same considerations constrain the capacity to immediately implement the savings deriving from the casual utilisation process, as the parties have not, as yet, had the opportunity to consult with persons affected by any proposed change. It is the intention of the Commission, however, to examine whether those confidentiality conditions might be lifted during the next two month interval so that there may be consultation with those interests and, if appropriate, an interim implementation of the then agreed savings measures. 9 The Commission intends to issue a further Statement in relation to this matter at the conclusion of a further two month interval in the Conciliation proceedings which are due to recommence on 4 August 2009. ___________________ DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.