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Home > News > 2017 > January > C&K must take steps to address Director time and retain existing super co-contribution entitlements

C&K must take steps to address Director time and retain existing super co-contribution entitlements

kindergarten_web_qual.pngDespite the beginning of a new year, C&K has not provided any further consideration to protect employees’ working conditions or the quality of education provided in C&K Branch centres.

C&K instead remains steadfast in its resolve to not even take the initial steps needed to address the issues surrounding Director time.

Despite their claim to be an employer of choice for women, C&K are also maintaining their shameful position of cutting employee access to superannuation co-contributions for those not currently accessing the provision (including future employees). Such a cut has the potential to deny employees access to tens of thousands of dollars of additional funds for their retirement (see table below).

Member meetings will soon be held across the state (including via teleconference) in order for members to consider possible action and response to C&K continued unwillingness to address employees’ concerns, ahead of the next negotiating meeting scheduled for 24 February 2017.

Steps must be taken to address Director time

C&K must take some step in resolving the issues surrounding Director time.

Employees in all categories across C&K Branch centres readily know and understand the need for additional time to allow Directors to perform their duties.

C&K can no longer ignore these issues.

Nor can C&K hide behind financial excuses which seem even more questionable given:

  • C&K’s $1.9 million operating profit in the 2015 calendar year;
  • The millions of dollars C&K received from the sale of its Ithaca campus – effectively given to them for free by the state government;
  • C&K’s substantial financial reserves; and
  • The significant on-going funding C&K currently receives from the state government.

The latest commentary from C&K regarding the financial implications of additional time release for Directors, also appears counter to its agreement to an employee suggestion that the next SBU meeting specifically explore the requirements placed on a Director in a C&K Kindergarten.

Super cuts put employees’ financial future at risk

Without the retention of the existing right for all C&K Branch Centre employees to make and receive a superannuation co-contribution, C&K is essentially telling some of its employees that it has little concern for their financial future.

Effectively, C&K’s current proposal regarding the existing superannuation co-contribution entitlement would create two tiers of employees in C&K Branch centres – those who are able to access a better retirement income and those who will be denied the opportunity to do so.

For those denied access to the superannuation co-contributions entitlement, this could potentially mean the loss of tens of thousands of dollars to put towards their financial security during retirement.

The table below outlines the significant difference access to superannuation co-contributions can make to a person’s financial future when it comes to their superannuation balance at retirement. It is based on the key assumption of a $63,000 salary (approximate to Band 2, Step 1 as at 1 July 2015) that increases only by 1% per annum.


* Full details of the financial assumptions used for the above calculations is available from the CUT the CUTS! website www.cutthecuts.org

Employees’ life circumstances are open to change. Just because a current employee may not be accessing the current co-contribution entitlement, does not mean that they may not want to access it in the future in order to plan and protect their financial future.

For future employees, C&K wants to deny them any such opportunity altogether.

It is beyond shameful, that an organisation which claims to be an employer of choice for women would put forward such a proposal despite Industry Super Australia data showing that the average gap in super balances at retirement for women versus men will grow, for example, to around $170,000 by 2030.

Member meetings to be scheduled

The next negotiating meeting is scheduled for Friday, 24 February 2017.

Ahead of that meeting a series of member meetings (including teleconference) will be held across Queensland.

These meetings will provide an important update for all members and include discussion of possible member action in light of C&K’s failure to address the need for additional Director time and its proposed cuts to the existing superannuation co-contribution entitlement.

Read more about this campaign at www.cutthecuts.org

Authorised by Terry Burke, Independent Education Union of Australia – Queensland & Northern Territory Branch, Brisbane.