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Wednesday, 11 May 1994
Page: 694

(Question No. 1292)


Senator Ian Macdonald asked the Minister representing the Minister for Transport, upon notice, on 30 March 1994:

  (1) (a) Please advise the conditions and salaries of senior managers permanently employed under contract within the Civil Aviation Authority (CAA); (b) how are these salaries and conditions established; (c) do the contracts of these senior managers go before a remuneration tribunal for ratification; (d) what review mechanism exists for increases in contracted senior managers salaries; (e) what are the conditions and salaries of equivalent public service officers and if these salaries and conditions differ, why do they differ; and (f) what percentage and how many of these senior managers were recruited from within the CAA itself.

  (2) Please list the aviation industry experience of the contracted senior managers in the Directorate of Safety Regulation of the CAA.


Senator Collins —The Minister for Transport has provided the following answer to the honourable senator's question:

  (1) (a) The basic conditions which apply to senior managers on contract in the Civil Aviation Authority include:

  tenure subject to termination with 3 months notice or payment in lieu thereof (no notice is required if the termination is for reasons of misconduct);

  annual leave of four weeks per year;

  sick leave as required which may be paid or unpaid;

  Long service and compensation coverage in accordance with the relevant Commonwealth Acts;

  redundancy benefits which equate to those prescribed for Award employees of the Authority.

  CAA remuneration packages are based on the concept of Total Employee Cost (TEC). The following aggregated responses provide an accurate comparison between the CAA and the Australian Public Service (APS) Senior Executive remuneration.

  The ranges within which the TEC for each CAA senior manager falls is indicated in Table 1 which compares the remuneration ranges in the CAA with those for Senior Executives in the APS in terms of TEC.

  (b) These salaries and conditions are set by market rates in terms of Total Employee Cost. Approval to move to market rates was given by the Minister on 24 September 1991, in accordance with the Government's Executive Remuneration Guidelines (GBEs) advised to the CAA on 12 June 1990. The market based rates were established by a market rates analysis conducted by an external consultant. This analysis was reviewed and ranges set by the CAA Board (for General Managers) and the Chief Executive Officer. Ranges are varied based on an annual market review.

  (c) No.

  (d) Contract senior manager remuneration ranges are adjusted annually on the basis of market movements advised by the independent consultant. Individual movements within the range are based on annual performance assessment.

  (e) The CAA has adopted a remuneration approach which is commonly referred to as Total Employee Cost (TEC). TEC reflects the true cost of the employees "package" to the Authority. It includes not only the base salary and other standard items such as a motor vehicle but also fringe benefits tax, payroll tax, payroll tax on benefits, employer superannuation contributions and the Comcare levy.

  (f) As at the 30 March 1994 the number of contracted senior managers who were recruited from within the CAA itself was 43 (15 of the total of 58 contract senior managers were outside recruits—ie 26 percent).

  (2)  The aviation experience of the contracted senior managers in the Directorate of Safety Regulation of the CAA is as follows:

  Manager A has 9 years experience with a component manufacturer ranging from apprentice to engineer. The Manager has 6 months secondment as a manager with a maintenance and repair organisation.

  Manager B has 21 years experience as an engineer with the RAAF. The Manager has 9 years with a manufacturing/maintenance area within Defence.

  Manager C has 14 years in Flying Training (General Aviation) both as a pilot and manager involved in charter operations including low capacity Regular Public Transport and management of a maintenance organisation.

  Manager D has experience as a journalist and publisher of aviation magazines. The Manager is a pilot of fixed wing and rotary wing aircraft and was a member of the RAN Fleet Air Arm.

  Manager E has 14 years experience in Sport Aviation as a parachutist and a General Aviation pilot.

  The remaining six senior managers have primarily engineering, legal or administrative backgrounds and have had significant experience with the Authority.

Table 1

Number of CAA

Contract Senior

Managers in this

Range

Minimum Maximum

SES Band 1

BASE SALARY 62064 69693

Superannuation (CSS 23%) * 14275 16029

Car * 8000 8000

Parking * 1000 1000

Spouse Travel * 5000 5000

Leave Loading * 600 600

Telephone * 165 165

Long Service Leave 1552 1742

FBT (Estimate) * 4000 4000

Payroll Tax (Based on 7%) 4344 4879

Payroll Tax on Benefits (Est) ** 900 900

Comcare Levy (0.43% in CAA) *** 465 523

Sub Total Other Benefits 40301 42838

TOTAL EMPLOYEE COST 102365 112531

TEC RANGE WITH PERFORMANCE PAY 102365 122531 27

TEC OVERLAP BETWEEN SES

BAND 1 AND 2 5

SES Band 2

BASE SALARY

74460 86034

Superannuation (CSS 23%) * 17126 19788

Car * 8000 8000

Parking * 1000 1000

Spouse Travel * 5000 5000

Leave Loading * 600 600

Telephone * 165 165

Long Service Leave 1862 2151

FBT (Estimate) * 4000 4000

Payroll Tax (Based on 7%) 5212 6022

Payroll Tax on Benefits (Est) ** 900 900

Comcare Levy (0.43% in CAA) *** 320 370

Sub Total Other Benefits 44185 47996

TOTAL EMPLOYEE COST 118645 134030

TEC RANGE WITH PERFORMANCE PAY 118645 146530 7

SES Band 3

BASE SALARY 86866 103935

Superannuation (CSS 23%) * 19979 23905

Car * 8000 8000

Parking * 1000 1000

Spouse Travel * 5000 5000

Leave Loading * 600 600

Telephone * 165 165

Long Service Leave 2172 2598

FBT (Estimate) * 4000 4000

Payroll Tax (Based on 7%) 6081 7275

Payroll Tax on Benefits (Est) ** 900 900

Comcare Levy (0.43% in CAA) *** 374 447

Sub Total Other Benefits 48270 53891

TOTAL EMPLOYEE COST 135136 157826

TEC RANGE WITH PERFORMANCE PAY 135136 172826 7

TEC ABOVE SES BAND 3 2

TEC LESS THAN SES BAND 1 10

TOTAL CAA MANAGERS 58

  *Based on the figures provided in the Remuneration Tribunal Review 1993.

  **Based on the minimum 6% applicable to motor vehicles (could be as high as 18% depending on private usage) plus 7% of notional parking and spouse travel allocation.

  ***The percentage figure used reflects the CAA's claims experience in relation to this group and may be different to the APS.