Calls for Mornington Peninsula Shire to explain executives’ salary ‘secrets’
Western Port News, 21 December 2010 - Keith Platt
MOST of Mornington Peninsula Shire’s highest paid staff received an early Christmas present in their pay packets.
Senior staff earning $110,000-$199,999 were in line to be given an extra five per cent bonus, based on their total salary package.
The bonus is notionally paid for “specific performance criteria”, but several staff – who do not receive the bonuses – say the extra money seems to be paid automatically.
While the shire’s top earner, CEO Michael Kennedy, had told councillors he did not want an increase to his $319,000 salary package, it seemed doubtful other senior staff followed their leader.
It is understood bonuses can be received by team leaders, managers and directors.
The Australian Services Union is trying to breach the wall of secrecy surrounding the awarding of bonuses while it negotiates a new enterprise agreement for the majority of the shire’s 660 plus staff.
The ASU’s Michelle Jackson said the latest talks had also revealed the existence of a gratuity scheme for over-award payments to other staff.
“We’ve asked who gets these bonuses and payments and criteria [for awarding them], but the shire was unwilling or unable to tell us,” Ms Jackson said.
“I’ll be writing to them to seek full disclosure under the Fair Work Act.”
Ms Jackson said changes to the Local Government Act in October meant details of senior officers’ salary packages were no longer divulged.
“We used to be able to see a breakdown, such as salary, cars, superannuation and bonuses, but the state government changed it for some reason.
“I think it sucks, when everyone knows what lesser paid staff earn under the enterprise agreement.”
New mayor Graham Pittock and ratepayer organisations also want to know the extent of the bonuses.
Cr Pittock says he isn’t “concerned” about the bonuses, but intends to investigate.
“At this stage I know very little, but I will find out,” he told The News.
“I will be looking into it and other councillors have expressed interest. For our own benefit it will be nice to know what it’s about.”
David Chalke of the Tyabb and District Ratepayers, Business and Environment Group said his organisation “is looking into that [the bonuses] right now”.
“Rates and fees are all going up. Is it to pay for the bonuses? If they don’t do their jobs, do they lose money?”
Mr Chalke’s group was instrumental in a 2009 investigation by the Ombudsman that raised questions about the validity of Dr Kennedy’s 2004 and 2008 employment contracts and the shire’s release of information to the public.
In January 2010 Local Government Victoria said the CEO’s contracts were valid.
Gary Howard of the Mornington Peninsula Ratepayers and Residents Association said the amount paid in bonuses “is probably buried in the [annual budget’s] salary bill”.
“I’ve never been a great believer in bonuses. The officers should be paid what they’re worth.”
The shire’s $169.2 million budget includes $52.33 million for staff costs, up $3.66 million on the previous year.
In September Cr Reade Smith told The News that cars were offered as part of salary packages to attract “good young staff” from the city.
His defence of the shire’s recruitment strategy followed an audit by the Victorian Auditor-General’s office that found most of the kilometres clocked up by cars leased to staff were for private rather than business purposes.
Although the shire claims to be committed to transparency and sustainability under the credo of The Peninsula Way, communications manager Todd Trimble says the shire will not make public the number of senior officers receiving annual bonuses.
In series of emails between 25 November and 16 December, Mr Trimble made it clear that no one at the shire would respond directly to questions from The News about the bonuses.
Initially, he said the absent team support and development manager John Rankine was “best placed” to answer questions.
The News suggested Dr Kennedy or sustainable organisation director Kevin Clarke may have the information, but Mr Trimble reiterated it was Mr Rankine’s area.
A week after Mr Rankine returned to work, the 11 questions were answered with the following:
“Senior officers in local government have been on employment contracts for many years and Mornington Peninsula Shire is no exception.
“These contracts provide for an annual bonus of up to five per cent of the remuneration package, linked to specific performance criteria.
“The performance is measured through a formal performance review process, overseen by the relevant director, and submitted to the chief executive officer for consideration.”
Again asked to answer the specific questions, Mr Trimble replied: “I have provided you with a statement from the shire. The matter is now closed as far as I am concerned. Again, you are welcome to come in and view the register.”
The register referred to by Mr Trimble is the same one that Michelle Jackson of the ASU says provides scant information on the number of senior staff within a certain salary range.
The shire’s annual report lists 22 seniors officers, with one earning $110,000-$119,999; 11 earning $120,000-$129,999; five $130,000-$139,999; one $140,000-$149,999; one $170,000-$179,000; two $180,000-$189,999; and one $190,000-$199,999.
The 2009 annual report said there were 34 senior officers in the higher salary ranges, but Mr Trimble did not explain why 12 officers appeared to have dropped off the 2010 list.
In his preamble to the 2010 report, Dr Kennedy says: “For the shire organisation, we strive to be a ‘can do’ team of people, seeking to be innovative, looking for ‘new solutions to old problems’, and to ‘go the extra mile’ in responding to diverse community needs and expectations.”
Mayday Footnote - CEO's OAM Citation media release read by Bernard Blessinton
MOST of Mornington Peninsula Shire’s highest paid staff received an early Christmas present in their pay packets.
Senior staff earning $110,000-$199,999 were in line to be given an extra five per cent bonus, based on their total salary package.
The bonus is notionally paid for “specific performance criteria”, but several staff – who do not receive the bonuses – say the extra money seems to be paid automatically.
While the shire’s top earner, CEO Michael Kennedy, had told councillors he did not want an increase to his $319,000 salary package, it seemed doubtful other senior staff followed their leader.
It is understood bonuses can be received by team leaders, managers and directors.
The Australian Services Union is trying to breach the wall of secrecy surrounding the awarding of bonuses while it negotiates a new enterprise agreement for the majority of the shire’s 660 plus staff.
The ASU’s Michelle Jackson said the latest talks had also revealed the existence of a gratuity scheme for over-award payments to other staff.
“We’ve asked who gets these bonuses and payments and criteria [for awarding them], but the shire was unwilling or unable to tell us,” Ms Jackson said.
“I’ll be writing to them to seek full disclosure under the Fair Work Act.”
Ms Jackson said changes to the Local Government Act in October meant details of senior officers’ salary packages were no longer divulged.
“We used to be able to see a breakdown, such as salary, cars, superannuation and bonuses, but the state government changed it for some reason.
“I think it sucks, when everyone knows what lesser paid staff earn under the enterprise agreement.”
New mayor Graham Pittock and ratepayer organisations also want to know the extent of the bonuses.
Cr Pittock says he isn’t “concerned” about the bonuses, but intends to investigate.
“At this stage I know very little, but I will find out,” he told The News.
“I will be looking into it and other councillors have expressed interest. For our own benefit it will be nice to know what it’s about.”
David Chalke of the Tyabb and District Ratepayers, Business and Environment Group said his organisation “is looking into that [the bonuses] right now”.
“Rates and fees are all going up. Is it to pay for the bonuses? If they don’t do their jobs, do they lose money?”
Mr Chalke’s group was instrumental in a 2009 investigation by the Ombudsman that raised questions about the validity of Dr Kennedy’s 2004 and 2008 employment contracts and the shire’s release of information to the public.
In January 2010 Local Government Victoria said the CEO’s contracts were valid.
Gary Howard of the Mornington Peninsula Ratepayers and Residents Association said the amount paid in bonuses “is probably buried in the [annual budget’s] salary bill”.
“I’ve never been a great believer in bonuses. The officers should be paid what they’re worth.”
The shire’s $169.2 million budget includes $52.33 million for staff costs, up $3.66 million on the previous year.
In September Cr Reade Smith told The News that cars were offered as part of salary packages to attract “good young staff” from the city.
His defence of the shire’s recruitment strategy followed an audit by the Victorian Auditor-General’s office that found most of the kilometres clocked up by cars leased to staff were for private rather than business purposes.
Although the shire claims to be committed to transparency and sustainability under the credo of The Peninsula Way, communications manager Todd Trimble says the shire will not make public the number of senior officers receiving annual bonuses.
In series of emails between 25 November and 16 December, Mr Trimble made it clear that no one at the shire would respond directly to questions from The News about the bonuses.
Initially, he said the absent team support and development manager John Rankine was “best placed” to answer questions.
The News suggested Dr Kennedy or sustainable organisation director Kevin Clarke may have the information, but Mr Trimble reiterated it was Mr Rankine’s area.
A week after Mr Rankine returned to work, the 11 questions were answered with the following:
“Senior officers in local government have been on employment contracts for many years and Mornington Peninsula Shire is no exception.
“These contracts provide for an annual bonus of up to five per cent of the remuneration package, linked to specific performance criteria.
“The performance is measured through a formal performance review process, overseen by the relevant director, and submitted to the chief executive officer for consideration.”
Again asked to answer the specific questions, Mr Trimble replied: “I have provided you with a statement from the shire. The matter is now closed as far as I am concerned. Again, you are welcome to come in and view the register.”
The register referred to by Mr Trimble is the same one that Michelle Jackson of the ASU says provides scant information on the number of senior staff within a certain salary range.
The shire’s annual report lists 22 seniors officers, with one earning $110,000-$119,999; 11 earning $120,000-$129,999; five $130,000-$139,999; one $140,000-$149,999; one $170,000-$179,000; two $180,000-$189,999; and one $190,000-$199,999.
The 2009 annual report said there were 34 senior officers in the higher salary ranges, but Mr Trimble did not explain why 12 officers appeared to have dropped off the 2010 list.
In his preamble to the 2010 report, Dr Kennedy says: “For the shire organisation, we strive to be a ‘can do’ team of people, seeking to be innovative, looking for ‘new solutions to old problems’, and to ‘go the extra mile’ in responding to diverse community needs and expectations.”
Mayday Footnote - CEO's OAM Citation media release read by Bernard Blessinton