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  Issue No 66 Official Organ of LaborNet 11 August 2000  

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News

Sneaky Chubb Forced to Pay Redundancy

By Andrew Casey

One of Australia's big security firms has been told they can't avoid paying redundancy payments when they switch their direct-employees to outsourced contract labour.

Chubb Protective Services has recently adopted a cut-throat strategy to reduce costs and increase profits, by out-sourcing, 'licensing-out' and franchising their security work.

The company is part of the British multinational, Chubb Corporation, which last year reported a profit of more than $1 billion in its annual financial returns.

Chubb's personnel manager in Australia, Steve Gates, recently boasted to the industry newsletter HR Report that: "with outsourcing you (may) lose control and quality, but you have a higher margin."

But a sneaky attempt by Chubb to avoid paying redundancies to their Security Patrol Officers - who had been out-sourced - came to a dead halt this week. The company was forced to pay more than $12,000 to members of the Liquor, Hospitality and Miscellaneous Workers Union (LHMU) in Canberra.

Australian Capital Territory LHMU members Peter Merritt and Joe Hudson have, between them, worked for Chubb for 22 years. Peter Merritt has worked in the job for approximately twelve years, and Joe Hudson for ten years

In April this year - without any consultation - Peter and Joe were told of a change in their status. The two Security Patrol Officers were told the jobs they had been doing for so long had been 'licenced' back to them.

Their ( now former) employer, Chubb, still held the master contract but Peter and Joe were no longer employees, instead they were sub-contractors.

Chubb Protective Services tried to have it both ways. They changed the nature of the relationship but argued that as the workers were still doing the same job they didn't have to pay any redundancy monies.

Commissioner Ron Jones of the Australian Industrial Relations Commission has now told Chubb they have to pay out the redundancy entitlements - as well as some holiday leave - based on the Security Employees (ACT) Award.

Commissioner Jones , in his decision, also noted that because of this desire to squeeze out an extra dollar from their employees the work situation, which had been based on a friendly and open manner, has now been reduced to mistrust and extremely stilted communication.


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*   Issue 66 contents

In this issue
Features
*  Interview: Shifting Sands
Michael Crosby Joint Director of the ACTU Organising Centre talks to Workers Online about the changing nature of union power, 'use it or lose it' coverage and how the ALP will have to deal with a transformed union movement.
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*  Unions: Mission Possible
From Cambodia to Kyrghyzstan, from Malawi to Mozambique, this is one nurse who accepts certain missions where life is on the edge, and she loves it.
*
*  Economics: A Progressive Alternative
Andrew Scott outlines a policy approach for an ALP Government that aims to deliver social as well as economic progress.
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*  International: Unions Back International Seafarer Deal
Shipping union representatives from 56 countries have decided to back a pioneering international collective bargaining agreement with ship employers.
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*  Politics: Apolitical Myth
Over the last ten years one story about public interest in politics has found resonance, especially in the US. It suggests that people are no longer interested in political issues. Researchers from the Demos Foundation put this claim under the microscope.
*
*  Satire: Elaine Nile retires citing victory in "War on Masturbation"
There were emotional displays and many tributes paid today as Elaine Nile, Christian Democrat MP of 12 years standing, announced her retirement from the Parliament.
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*  Review: Pure Shit
The 1970s Aussie drug classic, Pure Shit - a 70s Australian style Trainspotting - is being dusted off for a one-off showing at the Chauvel.
*

News
»  It Will Happen Again Warn Fiji Unions
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»  Telstra in Olympic Twist Over Games Allowance
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»  FAAA Uncovers Sham Employment at Impulse
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»  Saloon Doors Flap as Wealthy Owner Walks
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»  ACOSS Slams Job Network
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»  Scrap HECS Say Nurses
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»  Fahey's Flog Off Fiasco
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»  Things Go Better With a $100 a Day Extra
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»  Shopping Centre Silent Over Greedy Grab
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»  Selley's Workers Stick to Union
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»  Taxi Incentive Needed to Avert Olympic Shortage
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»  Sneaky Chubb Forced to Pay Redundancy
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»  Seaforth Picket Marks a Year With Picnic
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»  Road Rage! Air Rage! WORK RAGE!
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Columns
»  The Soapbox
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»  Sport
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»  Trades Hall
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»  Tool Shed
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Letters to the editor
»  Proud To Support s.11
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