The WA parliamentary question seeks details on the criteria and staff covered by the wage parity arrangement between public sector employees and Serco employees at Acacia Prison. The answer provides specific references to the Acacia Prison Services Agreement outlining the calculation and application process for wage adjustments.

AnsweredQoN 2553Legislative Assembly
Asked
20 April 2010
Portfolio
Corrective Services

QuestionView source ↗

With respect to the Acacia Prison contract between the State Government and Serco, will the Minister provide the details on:
(a) the criteria used in the contract to determine when and how additional payments are made to achieve wage parity between public sector employees and those employed by Serco; and
(b) which staff (levels and areas of employment or prescribed callings) are covered by this wage parity arrangement?

AnswerView source ↗

Answered
18 May 2010
Responded by
Minister for Corrective Services
Response time
28 days
(a) Schedule 2, part 4 (a) -
Wages Adjustment
, of the Acacia Prison Services Agreement refers and states the following:
(i) any Prison Workers (Relevant Prison Workers) are granted an increase in wages after the Commencement Date or after the date of any previous adjustment under this section, which increase exceeds the increase in CPI over that period; and
(ii) within 6 months after that wage increase, the Contractor grants a wage increase (the Relevant Wage Increase) to Contract Workers holding equivalent positions to the Relevant Prison Workers (Relevant Contract Workers) which increase exceeds the increase in CPI over that period (the Relevant Period),
The Contractor may apply to the State for a wages adjustment.
In respect to the criteria used to determine the parity, Schedule 2 part (c) refers and states the following:
(c) The Contractor's application must:
(i) demonstrate that this section 4 applies;
(ii) specify the percentage wage increase granted to Relevant Prison Workers (Prison Workers Percentage Increase);
(iii) specify the percentage wage increase granted to Relevant Contract Workers (Contract Worker Percentage Increase);
(iv) specify the increase in CPI over the Relevant Period as a percentage (CPI Percentage Increase);
(v) calculate a wages adjustment equal to that part of the increase in the Contractor's monthly wages costs which is attributable to the difference between:
(A) the CPI Percentage Increase; and
(B) the lower of the Prison Worker Percentage Increase and the Contract Worker Percentage Increase;
(vi) identify the date from which the Relevant Wages Increase took effect (the Wages Adjustment Date)
and provide a sufficient level of detail and supporting evidence to enable the State to verify the Contractor's application and calculations.
The State currently pays Serco the parity in equal monthly instalments which in total equate to 90% of the estimated parity for the financial year period. At the end of the period the parity is recalculated, taking into account any changes to staffing and wages, and the balance of the parity is then paid.
(b) Schedule 2, part 4 (b) -
Wages Adjustment
, of the Acacia Prison Services Agreement refers and states:
In this section 4, Prison Workers means any employees employed by the State in a State operated prison and engaged in any of the following services or duties:
Catering, Facilities Management, Residential, Security and Operations, Health Care, Sentence Management, Offending Behaviour Units, Education and Vocational Training, Prison Industries or Nightshift
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