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 About Us  About Unions NSWAbout UnionsWho's WhoInformation Centre What's Going On? Annual Reports   
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Michael Costa - Secretary
Organising Model1999 was an exciting and fruitful year for the Labor Council of New South Wales. Following a successful Executive Planning Day in April attended by the Executive and all major Labor Council affiliates, a decision was taken to adopt the organising model. The activities of the Council during 1999 were underpinned by this strategic reorientation. The Council and its officers have been actively involved in initiating and supporting campaigns that have an organising focus. It is pleasing to report that the Labor Council is well on the way to becoming the model Organising Peak Council. Of course, adopting the Organising model has not meant a withdrawal from traditional industrial servicing. Affiliates have continued to require the Labor Council to support them in wage campaigns and traditional industrial relations advocacy. State ElectionEarly in 1999 the Labor Council put significant resources into the successful campaign to re-elect the State Labor Government. The result of the election clearly shows that the people of New South Wales will not accept a Howard/Reith approach to industrial relations. The Conservative Opposition in New South Wales was unable to score any points against Labor on industrial relations. Industrial Relations SystemThe New South Wales Industrial Relations System has the broad confidence of all industrial players. The system continues to work well and I am sure will provide a model for a future Beazley Labor Government. However, there are significant areas of the current legislation that need to be developed to reflect the changing structure of the modern labour market. Of particular concern to the Council is the explosion of casualisation and sub-contracting through the activities of labour hire firms. The Labor Council has advanced a number of possible changes to the New South Wales Industrial Relations Act to regulate the activity of unscrupulous labour hire firms. In addition, we have canvassed the introduction, by majority agreement, in enterprise agreements of an agency fee. This proposal has generated much controversy, largely based on ignorance. The proposal makes great sense in an industrial relations system based on the complexities of Enterprise Bargaining. Whilst the Premier appears to have indicated his reluctance to accept the proposal, the Labor Council will continue to press for its introduction. Social AuditFollowing the State Election I sought on behalf of the Council to place firmly on the Government's agenda the need for a Social Audit. As a consequence during the year there has been much debate about what a Social Audit would encompass and why it was in the interests of Labor to undertake such an audit. This activity culminated in a successful conference held in conjunction with the Ethnic Communities Council of NSW and the National Council of Social Service, just before the ALP State Conference, which brought together people from diverse backgrounds to develop in detail the scope of the Social Audit. State Labor Advisory CouncilIt is pleasing to report that the Social Audit has been referred to the State Labor Advisory Council (SLAC), a new body established directly as a result of the Labor Council's agitation for more co-operative and sincere consultation between the industrial and political wings of the Labour Movement. The need for SLAC reflected the growing concern expressed by many public sector affiliates that the Government was not fully appreciative of the implication of many government decisions on public sector services and public sector workers. Of particular concern in this regard has been the policy of compulsory Competitive Tendering. Public Sector Wages NegotiationsThe State Budget caused additional problems for public sector workers in that it failed to acknowledge their legitimate claim for realistic wage movements. The Government chose not to explicitly budget for wage increases, which resulted in uncertainty and industrial tension within the public sector. This was not resolved until the very end of 1999 in negotiations co-ordinated by the Labor Council which led to a breakthrough on public sector wages. The Teachers' wage negotiations have not concluded and for almost all of 1999 the Government has refused to sit down and have proper discussions over the replacement of the Teachers' Award which expired at the end of June 1999. It is pleasing to report that as a direct result of the Labor Council's intervention these preliminary negotiations commenced at the very end of the year. It is hoped that the Government has learnt from its error of trying to bypass trade unions in wage negotiations. Trade Union UnityThe Labor Council played an important role in trying to reunify the trade union movement in the Hunter and on the South Coast. The integration process in the Hunter has proceeded successfully. During the year, the Labor Council co-sponsored a Strategic Planning Session for unions in the region which has provided a common focus for trade union activity. The trade union movement on the South Coast has experienced a number of difficulties over recent times in achieving a common focus. As a consequence of the Annual General Meeting of the South Coast Labor Council (SCLC), a number of unions disaffiliated from the SCLC and an attempt to create an alternate Peak Body for the region was initiated. The Body known as the Illawarra Council of Trade Unions (ICTU) applied to the Labor Council of New South Wales for affiliation. The Labor Council took the view that a single unified Peak Body was in the interests of the broader trade union movement. Following the efforts of Tom McDonald (former ACTU Vice President) and John Whelan, President of the Labor Council of New South Wales, a package of measures to resolve the difficulties and re-unify the movement was accepted. The Labor Council contributed the sum of $30,000.00, in the form of a loan, to the SCLC to assist the Council in meeting its financial liabilities. This loan is to become a grant on the successful implementation of the agreements that will lead to a unified SCLC. On behalf of the Labor Council of New South Wales and the trade union movement, I express our sincere thanks to Tom McDonald and John Whelan for their efforts in a satisfactory resolution of this difficult issue. Finances
Income from Sustentation Fees recorded a small increase of $13,903.00. Total income for the year was $1,365,194 as compared to $1,299,430 for the year ended 30 June 1998. Total expenditure for the Year was $2,068,731 as compared with $1,772,958 for the year ended 30 June 1998 - an increase of $295,773. The increase in expenditure was attributable to a one off rise in Industrial Campaign Expenditure not recovered of $66,680, and an increase in salary and wages of $121,037 due to an industrial officer transferring off a grant and onto the payroll, the employment of an additional senior industrial officer and salary increases. It is expected that in the year to June 30, 2000 a budget deficit on the Management Account of $837,930 will be greater than the budget net surplus from the Property and Currawong Accounts of $748,886. A deficit of $89,044. In the medium term it is desirable to return to a balanced position between all three accounts. Critical to achieving this outcome is the finalisation of the Currawong Management arrangement. The Management Fee of $200,000 per annum coupled with the reduction of the Currawong Account budgeted deficit of $51,455. means that the net impact on Labor Council's operating accounts of the Currawong Management arrangement will be $251,455. CurrawongIn respect of the Currawong site, the Labor Council agreed during the year to enter into a Management Contract for the re-development of the site. The key points of the Management arrangement are:
The Council resolved hat the Trustees be authorised to enter into a Management Agreement and Development Agreement with the Foundation, subject to the certification by the Labor Council's Finance Committee that its audit of the final terms of the Development and Management Agreement reasonably and substantially meet the key terms of the Agreements distributed to Labor Council delegates. Legal advice has been obtained that the arrangements proposed by the Agreements do not infringe the provisions of Rule 45 of the Labor Council Rules. Radio Station 2KYThe management and staff of Radio Station 2KY continue to produce excellent results both in terms of funds generated and quality of programming. During 1999 2KY maintained its position as Australia's premier Race Broadcasting Station. The Racing Radio Network has been further expanded with the installation of ten additional high power FM transmitters relaying the 2KY Racing Radio program to northern New South Wales. These new transmitter installations have improved the audience coverage for the Racing Radio program, which also continues to broadcast on 110 high and low power FM transmitters throughout NSW. Under the direction of General Manager Barrie Unsworth the rollout of the country racing network is almost complete with 15 installations in the southern part of the state due for completion in the next few months. During the year, narrowcast licences were obtained for Grafton, Coffs Harbour, Kempsey, Port Macquarie, Taree, Gloucester, Muswellbrook, Murrurundi, Tamworth, Gunnedah, Canberra, Queanbeyan, Cooma, Jindabyne, Thredbo, Bombala, Yass, Goulburn, Eden, Moruya, Narooma, Batemans Bay, Nowra and Bowral. High power transmitters are currently being installed at these locations. The major AM narrowcast licences for Newcastle and Wollongong were renewed for a further 5 years. The station has maintained its revenues in the face of increasing competition for advertising from other media operators such as pay TV and SKY Channel. This has been achieved by active support of 2KY advertisers with outside broadcasts at various advertisers' venues such as clubs, hotels, racecourses and commercial premises. In September 1999 2KY embarked on a major program change by presenting "The Big Sports Breakfast" from 5:30 a.m. to 10:00 a.m. weekdays. This program complements the daily racing programs and immediately secured audience support. 2KY is the only radio station concentrating on sport as its principal format. This program differentiation has been a benefit at a time of controversy arising from the 2UE "cash for comment" investigation. Racing personalities Ian Craig, Kerry Buckeridge and Kim Stewart assisted by many well known racing journalists provide the racing audience with up-to-date information on daily race meetings. The 2KY "All Time Favourites" overnight music program, continues to please audiences and a country music show is transmitted on the Racing Radio Network overnight. 2KY installed a digital broadcast transmitter in December 1998 and was joined by three other Radio Broadcasters - ABC, Austereo and ARN, to continue the experiment with digital transmissions in the Digital Radio 2000 Consortium ahead of the commencement of commercial digital services in 2001. The finances of the station are soundly based and resulted in a surplus of funds being transferred to the Labor Council Wireless Committee in the financial year 1998-1999. Sale of 2HD Broadcasters Pty LimitedIn March 1999 a Share Sale Agreement was concluded with Broadcast Operations Pty Limited to transfer the Labor Council's interest in 2HD for gross proceeds of $3,600,000.00. After repayment of bank debt and a loan account a net amount of $2,744,657.00 was received and placed on deposit pending the setting up of a Special Purpose Trust in conjunction with the ALP. The Labor Council and the ALP will each appoint three Directors to the Trust and an independent Chairman will be appointed. An expert panel of investment advisors will be appointed to advise on the investments of the Trust with income generated being used to fund future election campaigns. Trades HallThe proposal to upgrade the Trades Hall that was approved in 1998 did not proceed due to the length of time in obtaining approvals including those from the Sydney City Council. However, towards the end of the year discussions commenced with UTS to the view of a redevelopment of the Trades Hall which would also incorporate a tower to accommodate UTS student accommodation. The Trades Hall Association has given the Labor Council authority to act on its behalf in these discussions. External financial expertise has been brought in and it appears that a development along these lines is financially viable. Negotiations between the parties and the Sydney City Council are now being undertaken. During the year, I represented the Labor Council at the New South Wales Drug Summit, as a delegate to the ACTU Executive and the ACTU Council, and has acted as a Member of the Advisory Board of the Melbourne Institute of Applied Economic and Social Research, Managing Director of Radio 2KY, Director of 2KY Broadcasters, Director of 2KY Marketing Pty Limited, Director of NSW Race Narrowcasts, Director of Airsales Pty Limited, Director of Chifley Financial Services Limited, Director of Chifley Operating Services Pty Limited, Director of Pacific Power, Director of Sydney Water Corporation, Director of Totalcare Industries Limited and Director of the WorkCover Authority of NSW.
I would like to thank Deborah James the Office Manager, Kelly Hutchison, and the other administrative staff at Labor Council for their help during the year. Also, I would like to mention that Margaret Morgan, the Labor Council's previous Office Manager retired in May this year after 28 years and five months service with the Labor Council. A special retirement dinner was held in honour of Margaret, which was well attended, including six of the Labor Council Secretaries Margaret had worked with.
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