Better value in pay deal

By Peter Johnson

PROSPECTS: The ADF is hoping to bring officer and WO1 pay into a more contemporary structure. Photo: ABPH Paul Berry

A new pay structure is proposed later this year for officers and WO1 (E).

This graded pay structure is being developed by the Remuneration Reform Project (RRP) and aims to bring officer and WO1 remuneration into a more contemporary structure by recognising the work value of different employment groups.

According to Head Defence Personnel Executive, MAJGEN Mark Evans, “The ADF has reached a point where we can’t bring officer and WO1 remuneration up to date without changing the way we pay and reward our personnel.

“The ADF’s proposed graded pay structure will create a sound foundation for modernising the way the ADF recognises differences in work value and, over time, deliver differential pay.”

The concept of differential work value is central to introduction of a graded pay structure.

“Currently we pay all officers and WO1 (E) the same core pay and then use allowances to help adjust for differential work values amongst officers of the same rank.

What RRP and a graded pay structure will do is recognise differential work value and factor it in core pay”, MAJGEN Evans said. “When I say work value, I’m talking about the attributes a person needs to perform in their category or employment group. This includes expertise, problem solving, and accountability.”

The proposed graded pay structure will have a number of pay groups at each rank, like the current Other Ranks structure.

Initially, each officer and WO1 (E) will be placed into a new pay group that pays the same as their current salary.

“Officers and WO1 will transition to the new structure at their current rates of pay,” MAJGEN Evans said.

‘This is being done as it is more appropriate for the ADF to recognise differential work value in core pay.’
– MAJGEN Mark Evans

“For those who receive ‘qualification and skill’ allowances, they will be placed in new pay groups that reflect the allowances rolled-in with current salary.

The four ‘qualification and skill’ allowances to be rolled-in are flying, special operations, special action forces and submarine allowances.

The graded pay structure will move the ADF from the present situation where work value is partly recognised by allowances to one where all major work value will be embedded in core pay.

The Defence Force Remuneration Tribunal is currently considering the ADF’s graded pay proposal. Its decision is expected this month and details will be announced when available.

The RRP will deliver structural reform and is not a mechanism for awarding overall pay increases. The upcoming ADF Workplace Remuneration Arrangement negotiations will consider the merits of any general pay increase.

According to MAJGEN Evans, “There is a lot of work that needs to happen behind the scenes to implement a graded pay structure.

• In the meantime, officers and WO1 (E) can keep up to date by visiting the Defence Pay and Conditions Website and clicking on the ‘Remuneration Reform Project’ link.” Defence Pay and Conditions Website: DEFWEB: http://intranet.defence.

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