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ERA Concerns Highlight In Latest Salary Survey

ERA Concerns Highlight In Latest National Salary Survey

Uncertainty over the impact of the introduction of the Employment Relations Act 2000 is highlighted in the latest Salary Survey from Cubiks Limited.

The latest survey, for the twelve months to 1 March 2001, marks the 31st year that significant trends and issues related to remuneration have been measured by the company.

It also marks the second time that the information, which is published twice yearly, has been available on line to subscribing clients.

The survey reveals that anticipation of the flow-on effects of the Act has created some uncertainty.

“While most organisations have experienced minimal negative impact since the Act was introduced last October we are seeing some caution among respondents related to problems they anticipate could arise,” Kevin McBride, Country Head of Cubiks Limited, said.

“Key areas of concern relate to the interpretation and practice of Good Faith Bargaining; the handling of appointment and dispute procedures; and union membership and access to the workplace,” he said.

One of the more immediate impacts of the Act, according to the survey, was reported in the area of human resource management workload. Out of those surveyed, 5.1 percent reported that the Act has resulted in a significant increase in workload, and a further 23.9 percent reported a slight increase.

Another area of notable change, says McBride, has been a growth in the number of staff now on collective employment agreements.

“Again there has been little change exhibited among senior and professional staff. However, around 10.3 percent of organisations reported an increase in the number of employees below this senior level on collective contracts,” he said.

In terms of general salary trends and indicators, the survey reveals little dramatic change although base salaries have risen slightly and there has been a small increase in the incidence of employee benefits. This is particularly noticeable in the areas of bonuses based on individual and organisational performance, and subsidised superannuation.

Highlights of the current survey are:

- Base salary movement for top executives is higher than that recorded in both March and September 2000. (March 2001 = 6.0%; September 2000 = 5.7%; March 2000 = 5.4%)

- Base salary movement for general staff is slightly higher than that recorded in recent surveys. (March 2001 = 4.3%; September 2000 = 4.2%; March 2000 = 3.9%)

- Seventy five point three percent (75.3%) of all top executives who were in the same position at 1 March 2001 as they had been in at 1 March 2000 received an increase in base salary for the year ending 1 March 2001.

- Increases of over 10.0% were received by 19.7% of top executives. This compares with the 18.1% of top executives awarded increases of 10.0% and above in the year ending 1 March 2000.

- Overall median total remuneration movement for top executives was 2.5%, lower than both inflation and the overall movement in base salary for top executives.

- The proportion of top executives not receiving cars as part of their package continues to increase with each successive survey. This now stands at 45.5% representing an increase from the 41.5% recorded in March 2000.


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