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Pay strike to hit Centrelink, child welfare agencies

David Marin-Guzman
David Marin-GuzmanWorkplace correspondent

The Commonwealth’s biggest agency Services Australia is set to strike for 24 hours, beginning what is expected to be a wave of industrial action by public servants in protest against the Albanese government’s 11 per cent pay offer.

The Community and Public Sector Union notified the agency on Thursday that members at the 32,000-strong workforce would stop work on Monday, October 9, after rejecting its “meagre” 0.7 per cent increase on its first offer of 10.5 per cent over three years.

Services Australia is responsible for a range of welfare delivery systems. AAP

The strike follows a series of work bans and a one-hour stoppage at Services Australia over the past month and comes as members at other agencies move to seek their own protected action ballots.

While there is broad support for the government’s conditions package, a union poll of 15,000 members this week showed a slim margin of 51.9 per cent backed the pay offer.

CPSU national secretary Melissa Donnelly said that the union had rejected the offer because “we can, and we should be aiming higher than 50 per cent, plus one”.

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“In an environment where every APS worker is feeling extreme cost-of-living pressures, the current pay offer doesn’t cut it,” she said.

“Our members are ready to increase pressure as needed to secure a better outcome on pay.”

A 24-hour strike at Services Australia, which comes under the responsibility of Government Services Minister Bill Shorten, threatens to disrupt welfare, health insurance and pharmaceutical benefits services.

An Australian Public Service Commission spokesman said, “the commission is aware that the CPSU is escalating industrial action which is disappointing”.

“We note, this is in the context that a majority of CPSU members have voted in favour of the full package of pay and conditions on offer,” he said.

“Any action that would restrict the delivery of services would be regrettable.”

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Services Australia is at the forefront of the CPSU’s campaign with the union enjoying relatively high membership rates there and arguing the agency is seeking cuts to conditions such as rights to nominate start and finish times and lunch breaks.

In August, workers engaged in a two-week ban on the agency’s “auxiliary codes”, which require members to complete codes so management can track their movements and tasks. They also walked off the job for one hour in mid-August.

However, the 24-hour strike will be first to affect customers, with the previous work bans only disrupting management.

Services Australia general manager Hank Jongen said, “we respect that lawful industrial action is part of the process for bargaining, and we are working to identify possible numbers of participating staff”.

“It is important to remember that most agency staff are not a part of the action and will attend work as normal,” he said.

“We are making preparations to minimise potential disruption to our customers.”

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He sought to assure customers that payments would not be affected and “our priority remains ensuring that those most vulnerable or with urgent queries, will get the support they need”.

“Our online and self-services will not be affected and will continue to be available 24/7,” he said. “We encourage customers to use these options first by accessing services through myGov, Centrelink, Medicare and Child Support online accounts and mobile apps, and our phone self-services lines.”

The CPSU’s service-wide bargaining team met with the Australian Public Service Commission on Wednesday to deliver their response to the pay offer.

The CPSU has maintained its claim for an ambitious 20 per cent pay rise over three years while the government has offered 4 per cent, 3.8 per cent in the second year and 3.4 per cent in the third year.

Inflation was 6 per cent in the year to June, but the Reserve Bank expects it to decline to 4.1 per cent by the end of the year.

Ms Donnelly warned that “further applications for protected action ballots will be shortly lodged in other APS workplaces”.

She said, “the test for the Albanese government as an employer isn’t just being better than the Coalition government, it is to be a model employer – a goal they set for themselves”.

David Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at david.marin-guzman@afr.com

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