From:
Cassie Botha
To:
s47F
Cc:
Monica Vagg; Vanessa MacBean
Bcc:
LEGAL Buyout review 2020 20130021 Emails
Subject:
Query regarding recent ABC correspondence [ABC-PAL.FID37968]
Date:
Thursday, 7 January 2021 3:34:37 PM
Attachments:
Letter to FWO re buyout and band 1 proposal - 7 August 2020.pdf
s47(1)(b)
Dear s47F
Thank you for the enquiry about the ABC’s recent correspondence to s47F
regarding the ABC Review into Buyouts and Band 1
classifications.
I understand that you are seeking to clarify any changes to the approximate numbers of
employees that the ABC is reviewing, specifically during Phase 0 (50 employees) and
Phase 1 (400-500 employees) of the review.
I can confirm that the total number of employees being reviewed was initially estimated
as 2,000-2,500, referred to in the Phase 1 section on page 3 of the PwC methodology
document provided to the Fair Work Ombudsman on 7 August 2020. For ease of
reference, I’ve attached copies of the methodology and our correspondence on 7
August 2020 to this email.
The reference to 400-500 employees, also in the Phase 1 section on page 3 of the PwC
methodology document, relates to the estimated number of employees being reviewed
who also require a classification review.
The number of employees who require a classification review is a subset of the
estimated total number of employees being reviewed and relates specifically to the
Band 1 classification cohort. The Band 1 cohort require both a file review and a
classification review. The Buyout cohort do not require a classification review.
As part of the work we have undertaken on the review, we have refined our initial
estimate of 2,000-2,500 to 1,965 employees across both cohorts. There are 1,706
employees in the Buyouts cohort and 256 employees in the Band 1 cohort.
I trust that this resolves your query but please do not hesitate to contact me if you have
any further queries.
Kind regards,
Cassie
ABC
Cassie Botha
Employment Counsel
People & Culture
P: 02 8333 4354
M: 0409 833 564
We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians
and Traditional Custodians of the lands where we live, learn and work.
NOTICE: This email and any attachments are confidential, may be legally privileged and may include copyright material. The
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7/08/2020
s47F
Fair Work Ombudsman
s47F
Delivered by email
Dear Ms s47F
Buyout and band 1 classification review
Further to my letter of 16 July 2020, I would like to provide you with an update in relation to
the ABC’s review of employees on buyouts, and employees engaged on band 1.
Thank you for the extension of time for us to provide the requested information. The ABC has
now had discussions with PwC, and as a result of those discussions, PwC has prepared the
enclosed methodology document which responds to questions 2, 4, 5, 6 in your letter of 7 July
2020. I have responded to question 1 in my previous letter to you, and in relation to your
question 3, the contact person for this review will be Vanessa MacBean, Head Employee
Relations.
In short, for employees on buyouts, the ABC intends to adopt a similar process and
methodology to the remediation of flat rate casuals – the ABC will provide relevant data to
PwC, and PwC will then utilise their model to determine whether there are shortfalls in
payments due. The outputs will be subject to testing, and if underpayments are identified,
those will be communicated to employees, and payment will be made. Based on our
experience of the flat rate casual remediation, we have estimated that approximately 10
months will be needed from commencement of the review until any disbursements.
We do anticipate there will be efficiencies in utilising PwC’s existing model for this review,
however, it has already become apparent that additional coding and testing work will be
required, particularly in relation to ensuring that leave benefits are properly calculated
(which was not relevant to flat rate casuals). Hence at this stage, we consider that a
timeframe of approximately 10 months is realistic. Not having yet commenced the review, it
may be the case that internal and external factors not presently anticipated could impact on
our timing, in which case we will notify you as soon as practicable and seek to discuss this
with you.
In relation to employees engaged on band 1, the ABC will adopt a similar process as was
utilised in relation to flat rate casuals. That is, the ABC will review existing employee records,
and seek input from managers in relation to an appropriate band. We anticipate that this
process can be run efficiently within our HR function with manager input, as many of the
employees in this cohort were engaged with job titles and position descriptions. If any
periods of incorrect classification are identified, PwC will be able to calculate the shortfall in
pay, and this will be communicated to employees. In the interest of having a consistent
disbursement date, we would anticipate that this remediation is completed at the same time
as the buyout review.
The ABC proposes to conduct this review (in relation to buyouts and band 1 employees) for
the period from the first full pay period after 1 July 2014 until the conclusion of the review. This
aligns with the commencement of a financial year, and would also be in compliance with the
6-year limitation period for underpayment claims, should any underpayment be identified.
s47E(c)
As we are intending to commence these reviews imminently, once you have had an
opportunity to consider the above and enclosed information, please let me know as soon as
practicable if you have any questions or would like to discuss.
Yours sincerely,
Rebekah Donaldson
Chief People Officer
Australian Broadcasting Corporation
