The govt giveth — the govt taketh away

[kiwithrottlejockey]

NZDF staff get payrise, and rent hike

By DANYA LEVY - The Dominion Post | 12:37PM - Monday, 17 September 2012


NZDF personnel are to get their first payrise in
four years, but some will also face rent hikes.
— WARWICK SMITH/Fairfax NZ.

DEFENCE FORCE personnel are to get their first payrise in four years, but many will also face rent hikes.

About $45 million has been allocated for troops, reserves and civilian staff, and an additional $40m has been set aside for one-off buy-back of entitlements and conditions of service which are being phased out.

Also announced today is a rent adjustment later in the year for troops living in defence force housing and barracks to align them to market rates.

Defence Force Chief Lieutenant General Rhys Jones said the pay rise was an opportunity for the Defence Force to reinvest some of the savings it had made in the past three years.

"This was always one of the promised rewards of finding efficiencies - reinvesting in our frontline, which is our people."

Jones said the rent adjustments would remove the rent advantage people living in Service housing had compared with those living off base.

The Defence Force saved $142m in the past financial year as part of a drive to save up to $400m by 2015.

It led to the forced civilianisation of 304 uniformed roles and saw morale plummet to its lowest levels with a record high 19 per cent attrition rate.

Defence Force Vice-Chief, Rear Admiral Jack Steer, announced in March the further civilianisation of 300 roles would be through natural attrition because personnel were suffering "change fatigue" and the process had been "too damaging".

Defence Force numbers have fallen from 14,577 to 13,667 in the past two years and the navy's in-shore patrol vessels are having few days at sea because there are fewer sailors.

Jones today said the pay rise wasn't across the board.

"The remuneration system used within the Defence Force is more complex than that and instead links every position to published market rates."

The changes brought all Defence Force pay up to the average of 2012 market rates, he said.

"The total remuneration of those already above the mid-point is being protected."

There was also an increase for both regular and reserve force troops for what was known as the "military factor", which was an allowance paid to uniformed personnel in recognition of the hardships associated with military life such as often being separated from family and being on call 24-hours a day, seven days a week.

"This compensates for the removal of some current leave and allowance entitlements that will cease. For other entitlements ceasing, choices are being offered in the form of buy-backs or buy-outs of existing entitlements."

www.stuff.co.nz/dominion-post/news/7690047/NZDF-staff-get-payrise-and-rent-hike

[lesterpk]

Ah yes, the usual rent rise just after the pay rise trick.

[jonesy]

Really interesting to see how its distributed....yeah rent rises will be a real disappointment, I've got friends living at Hobby, and things pretty tight now....they'll be really struggling then!

[kiwithrottlejockey]

Defence personel need to be extremely suspicious of “buy-backs or buy-outs of existing entitlements” because you always end up giving up considerably more than what you get in compensation through buy-backs or buy-outs.

Unfortunately for defence personel, they don't have the option of collectively joining or forming a trade union to look after their interests or hiring an employment lawyer, because they don't get any option, apart from leaving.

[meo4]

You don't have choice in buy back / buy outs your incentive or long leave gets either converted to annual leave or payed in cash ,if you don't make decision by 1st December it automatically gets paid out in cash.

[beagle]

So whats the rent for a MQ these days.

[atgv]

Basic summary of the changes:

Universal Accommodation Allowance (UAC) scrapped (approx $6,300?)
Military Factor increased from approx $7,100 to just under $15,000

Numbers aren't exact but this generally leaves everybody up $1800 or so as a starting point. Some pay grades get an increase above this, a small number (i.e warrant officers) go down, however people affected are pay protected, it only applies to new promotions.

The big deal is the rent rises. Hold on to your seats because my jaw hit the floor when I heard this.

On the 1st of December Married Quarters and Barracks charges will increase to become more aligned with 'market rates' (most likely some arbitrary figure that somebody who lives in a swanky house isn't affected by). These 'market rates' are regional - somebody living in Whenuapai/Devonport MQ will pay Whenuapai/Devonport market rates, and somebody living in Waiouru MQ will pay Waiouru market rates. This despite everybody receiving the same Military Factor. A major bugbear amongst Auckland personnel.

The nice part is that the increase in rent is up to a maximum of $150. Apparently barracks will be about $30 a fortnight, not so bad in the scheme of things, but MQs will be the full $150. Problem is, most MQs cost something like $250-300 a fortnight as I understand it, so that becomes $450 a fortnight, still below market rates.

That $150 'maximum increase' is every 180 days.

1st June 2013, another probable $150 increase. And so on.

[kiwithrottlejockey]

Defence Force pay increase under fire

By DANYA LEVY - The Dominion Post | 5:00AM - Tuesday, 18 September 2012



THE Defence Force is being accused of "giving with one hand and taking away with the other".

This is after its first pay rise in four years was countered with a loss of entitlement and a rent increase for personnel living on base.

Defence Force chief Lieutenant General Rhys Jones yesterday announced $45 million had been allocated for pay rises. A further $40m is being spent in a one-off buyback of special entitlements. As part of the same package, an additional rent subsidy for troops living in Defence houses will be removed so they have no advantage over those living off base.

It is difficult for members of the Defence Force to speak out publicly, but the partners of soldiers yesterday took to social media to vent their frustration, claiming pay rises were being swallowed up by rent increases and entitlement cuts.

One said: "Some soldiers will actually get less in the hand each fortnight after this so-called ‘pay rise’. Give with one hand and take away with the other. What a joke."

Another called it a "rearrangement of the remuneration package" that would put more pressure on Defence families to get out of on-base housing.

Funding for the pay package comes from the $143m the Defence Force saved in the last year as part of a push to save up to $400m by 2015. The cost-cutting included the forced civilianisation of 304 uniformed roles, which caused morale to plummet to a record low, plus a record high 19 per cent attrition rate. Defence Force numbers have fallen from 14,577 to 13,667 in the past two years.

Labour's defence spokesman, Iain Lees-Galloway, said the pay rise was a "misnomer" and personnel would not be celebrating the end of the four-year pay freeze once they realised they had to compensate for it. High attrition rates had deeper roots than simply pay rates, he said.

"I doubt this will have a huge impact on the state of Defence Force morale, and they are going to continue having problems retaining their workforce."

But Defence Minister Jonathan Coleman said there was "no question" pay was a factor weighed up in any profession and an average rise of 5.7 per cent was "pretty good".

The Defence Force had been getting out of housing for several years and a waiting list existed for service housing. All personnel got a 12 per cent rent subsidy because they were required to move home regularly.

It is understood only one in five personnel live "on base".

General Jones acknowledged the pay rise would not be across the board, as the Defence remuneration system was linked to market rates and the salary of some posts already met 2012 averages.

The loss of entitlements would be offset by an increase for both regular and reserve force troops in their "Military Factor", an allowance paid to uniformed personnel in recognition of hardships, such as being separated from family and on duty 24-hours a day.

www.stuff.co.nz/dominion-post/news/politics/7692785/Defence-Force-pay-increase-under-fire

[lesterpk]

And therein lies the problem. A regional accomodation allowance was promised when the new pay system came in that would even things out. Nationwide MQ rents were indexed to Palmerston North as a base rate and then discounted due to the age and condition of the houses.

The NZDF is trying to get out of the house ownership game, given the choice to rent a MQ or an actual nice house with insulation, a garageand some storage space for the same price of course many will move out of MQ which is what they want.

People in Ohakea etc that rent in Bulls/Marton and such will be laughing. Those that are forced to live in Auckland (like people direct posted to 6Sqn) will suffer doubly.

[Peter Lewis]

You'd be struggling to find a reasonable stand-alone 3brm house in the Auckland open market for less than $350 per week + power + phone +(probably) water.

Something in a middle-class area with a bit of room on the section would be at least mid-400s.

(That's the game I'm in, so I have a vested interest in getting those rents up).

In the UK they have a thing called 'the London loading'.
If you are employed by a large organization with a structured salary system and by reason of your employment have to live within an arbitrary line drawn on the map around London you get an additional accommodation payment to allow for the much higher costs.
Maybe we will see the growth of that in NZ.

[lesterpk]

Another consequence of the pay 'rise' is that peoples income for tax purposes will increase significantly, especially for those currently in MQ, and thus they will see a decent reduction in Working For Families payments as well as large cost increases.

That will really hurt the young guys/girls with a family trying to get ahead.

Personally I'm glad I left when I did, its really gone downhill in the last year or so. Its funny that when you're in you cant imagine being in the outside world, but once you're out you cant imagine ever going back in and putting up with the crap pay and conditions. While I'm paying over $500 a week for my house, its big, has 2 living areas, en suite, double garage, its warm and I havent seen any mold yet. I'm also earning twice as much as my old NZDF salary doing a similar job, the company values my skills so I get a pay rise each year without even having to ask and have been put on a bonus system of 4% gross salary for each year I stay.

Thats the real world where bosses value an employees skill and experience rather than continually try and shaft them and their conditions and make people choose between loyalty to the NZDF and providing for their family.

Whew, rant over.

[steveh]

Seeing this sort of thing is enough to make one ponder if I could ever recommend a career in the NZDF for any of my lads. Seems to me they're suffering an attack of rampant accountantism.
I guess that the opposite to an London (Auckland) loading is living in Nelson. "You're bl**dy lucky to live in the best place in the country, everyone wants to so we can get all the staff we want so we'll pay you about 75% of what the rest of the country gets" Thats the real world Top of the South style.
A bit maddening at times but I'm not shifting so I guess I should put up & shut up.
Steve.

[beagle]

Sept 18, 2012 15:27:53 GMT 12 lesterpk said:

Another consequence of the pay 'rise' is that peoples income for tax purposes will increase significantly, especially for those currently in MQ, and thus they will see a decent reduction in Working For Families payments as well as large cost increases.

That will really hurt the young guys/girls with a family trying to get ahead.

Personally I'm glad I left when I did, its really gone downhill in the last year or so. Its funny that when you're in you cant imagine being in the outside world, but once you're out you cant imagine ever going back in and putting up with the crap pay and conditions. While I'm paying over $500 a week for my house, its big, has 2 living areas, en suite, double garage, its warm and I havent seen any mold yet. I'm also earning twice as much as my old NZDF salary doing a similar job, the company values my skills so I get a pay rise each year without even having to ask and have been put on a bonus system of 4% gross salary for each year I stay.

Thats the real world where bosses value an employees skill and experience rather than continually try and shaft them and their conditions and make people choose between loyalty to the NZDF and providing for their family.

Whew, rant over.

any jobs going there for another person Les

[Dave Homewood]

Sept 18, 2012 16:12:33 GMT 12 steveh said:

You're bl**dy lucky to live in the best place in the country

Tell them they're liars, everyone knows Cambridge is the best place in the country. And after that the next most popular NZ place seems to be Perth!

[beagle]

Has Cambridge got a supermarket yet ??

[jonesy]

Sept 18, 2012 17:01:04 GMT 12 beagle said:

Sept 18, 2012 15:27:53 GMT 12 lesterpk said:

Another consequence of the pay 'rise' is that peoples income for tax purposes will increase significantly, especially for those currently in MQ, and thus they will see a decent reduction in Working For Families payments as well as large cost increases.

That will really hurt the young guys/girls with a family trying to get ahead.

Personally I'm glad I left when I did, its really gone downhill in the last year or so. Its funny that when you're in you cant imagine being in the outside world, but once you're out you cant imagine ever going back in and putting up with the crap pay and conditions. While I'm paying over $500 a week for my house, its big, has 2 living areas, en suite, double garage, its warm and I havent seen any mold yet. I'm also earning twice as much as my old NZDF salary doing a similar job, the company values my skills so I get a pay rise each year without even having to ask and have been put on a bonus system of 4% gross salary for each year I stay.

Thats the real world where bosses value an employees skill and experience rather than continually try and shaft them and their conditions and make people choose between loyalty to the NZDF and providing for their family.

Whew, rant over.

any jobs going there for another person Les

Theres ALWAYS jobs going over here for trained, positive attitude people who want to knuckle down and work hard.....

[kiwithrottlejockey]

Sept 18, 2012 17:39:12 GMT 12 Dave Homewood said:

Tell them they're liars, everyone knows Cambridge is the best place in the country. And after that the next most popular NZ place seems to be Perth!

Ah....but does Cambridge have a large TVAL collection of airworthy WWI fighter planes?

Does Cambridge have WWI fighters flying over Anzac Day and Armistice Day commemoration parades?

Does Cambridge also have airworthy ex-RNZAF WWII fighter planes resident at a local aerodrome?

I rest my case!

[ngatimozart]

Wheres Cambridge?

[kiwithrottlejockey]

Sept 18, 2012 21:32:08 GMT 12 ngatimozart said:

Wheres Cambridge?

Well....if you're driving north on SH1 towards Hamilton and Jafaville and you don't blink at the wrong spot, you may catch a brief glimpse of Cambridge.

[Dave Homewood]

I am making a list, and your names vill go on it...