New awards for Fire and Rescue NSW firefighters

Headnote

On 22 February 2024, the Fire Brigade Employees’ Union (FBEU) filed applications for three new awards, to be known as Crown Employees (Fire and Rescue NSW Permanent Firefighting Staff) Award 2024 (Permanent Award), Crown Employees (Fire and Rescue NSW Retained Firefighting Staff) Award 2024 (Retained Award), and Crown Employees (Fire and Rescue NSW Firefighting Staff Death and Disability) Award 2024 (D&D Award). Subsequently, on 14 August 2024, the Industrial Relations Secretary (Secretary) filed competing applications for new three-year awards on behalf of Fire and Rescue NSW (FRNSW).

The FBEU sought a 20% increase to wages and wage-related allowances over 3 years, in the form of an 8% wage increase commencing 26 February 2024, a 6% increase commencing 26 February 2025 and a further 6% increase commencing 26 February 2026. The 20% increase comprised a 17% increase to reflect past changes in the cost of living and projected changes in the cost of living during the life of the award and a further 3% to reflect the prevalence of road crash rescue (RCR) work performed by firefighters.

Regarding the ‘cost of living’ component of the wage increase, the FBEU contended that the Commission, when considering the changing value of money over time, should not take the usual approach of limiting its consideration to changes in money values since the date on which the last wage increase for the relevant employees took effect, but ‘repair’ the fall in real wages caused by wage increases awarded by this Commission in 2021 and 2022 that with the benefit of hindsight were substantially lower than necessary to maintain real wages. The FBEU further contended that the ‘RCR’ component of the wage increase ought to be granted on the basis of the Work Value Principle, submitting that RCR work has increased in prevalence and complexity since the Awards were last assessed for work value in 2008.

The FBEU also made a great number of further claims, including an increase in superannuation contributions to 15%, the creation of new allowances recognising the work value of holding particular rescue competencies, the introduction of on call and disturbance allowances, increases to overtime rates, adjustments to how retained firefighters are remunerated, and the creation of a ‘Remuneration Taskforce’ that would aim to reach agreement on new classifications and rates of pay for firefighters which FRNSW would then implement.

The parties agreed on several variations proposed by the FBEU, which the Commission is content to implement, on the basis that they are by consent. The Secretary opposed the remainder of the FBEU’s application.

The Secretary’s applications sought a 9% increase to wages and wage-related allowances over 3 years, in the form of 3% annual increases; a no extra claims clause for the duration of the nominal term of the awards; and a large number of textual changes, especially regarding the consultation obligations in the Permanent and Retained Awards.

The Commission held:

1. When having regard to the mandatory consideration of the fiscal position and outlook of the Government and the likely effect that the making of an award would have on that position and outlook, the Commission will consider the extent to which a non-budgeted increase to wages and wage-related allowances would increase overall debt levels and the consequential effect on borrowing costs and the State’s credit rating in the context of the overall NSW Budget. The Commission may also consider the potential for a decision to flow on to other public sector employees and the impact that would have on the Government’s fiscal position and outlook.
2. The usual approach taken by the Commission when considering the changing value of money over time is to have regard to the date on which the last wage increase for the relevant employees took effect, and the changes in money values since that date and which are forecast during the term of the award. In adjusting rates of pay to have regard to changes in the value of money so that they remain fair and reasonable, the Commission will not precisely adjust wages to reflect the extent to which the previous award accurately predicted inflation and the exact predicted rate of inflation for the balance of the term of the award, but set increases that are broadly capable of absorbing changes in the cost of living over time.
3. It is however appropriate for an award to include a one-off “reset” in an extraordinary situation where below-trend wage increases combined with significantly above-trend inflation caused a substantial fall in real wages in the past, as happened after the COVID-19 crisis. The FBEU established that needs to occur in respect of these awards.
4. A special case was made out which justified the RCR component of the wage increase sought by the FBEU being granted. The work of firefighters is currently significantly undervalued, due to historic or intrinsic factors, because the rates of pay in the Awards do not reflect the fact that every firefighter needs to have the basic rescue competencies that are associated with RCR work.
5. Overall, wage rates and wage-related allowances are to be increased by 14% over three years, in the form of 4% effective 26 February 2024 (being a further 1% on top of the interim 3% already granted), 4% effective 26 February 2025 and 6% effective 26 February 2026 (3% of which is an increase to recognise competency in RCR work). That is on top of a 1% increase in statutory superannuation contributions.
6. The current Rescue Operator allowance is to be reduced from 26 February 2026 to avoid double counting the work value of conducting RCR work.
7. New allowances are to be introduced or expanded to recognise the work value of holding other competencies in rescue work, Remote Piloted Aircraft System work, Hazmat work, and Major/Minor Aerial work.
8. Allowances are to be introduced or expanded to compensate firefighters who are rostered to be on call or disturbed, firefighters sent on deployments, and firefighters who travel in their private vehicle to a work event where public transport is not reasonably available or practicable.
9. The consultation structure set out in Schedule 5 of the Permanent and Retained Awards are to be maintained. Other clauses relating to consultation are to be amended to remove the need for agreement between the parties when there are changes to entitlements that arise where an employee is given notice of transfer to work in a new location as well as the Country Relief model subcommittee.
10. A clause identifying the extent to which it is open to the parties to make further claims that would take effect during the life of the Awards is to be be introduced.
11. The Retained Award is to be amended to increase the minimum payment for Retained Firefighters from 1 hour to 1.5 hours.
12. The Retained Award is to be amended to introduce an ex gratia payment where an officer has accepted a deployment offer and that deployment is cancelled, delayed, or altered with less than 48 hours’ notice.
13. Cultural and ceremonial leave is to be introduced.
14. Entitlement to overtime pay at single time is to be introduced for Superintendents and Chief Superintendents for hours worked outside the ordinary span of hours which they are directed or required to work due to an incident or emergency.

In addition recommendations are made concerning the appropriate work value and relativities for firefighter positions, particularly the relative work value of non-station based roles and senior officer roles; feedback for unsuccessful candidates for promotion; the provision of galateas for retained firefighters; and the performance of ComSafe duties by permanent firefighters.

Decision

Outcome

1. We have determined to make two new awards to apply to permanent and retained firefighters in NSW to be known as:
   1. Crown Employees (Fire and Rescue NSW Permanent Firefighting Staff) Award 2024 (Permanent Award), and
   2. Crown Employees (Fire and Rescue NSW Retained Firefighting Staff) Award 2024 (Retained Award).
2. The awards will apply for a nominal term of three years commencing from 26 February 2024. In summary they will:
   1. increase wage rates and wage-related allowances by 14% in addition to a 1% increase in statutory superannuation contributions, in the form of the following increases:
      1. 4% to wages and wage-related allowances, effective 26 February 2024, or a further 1% on top of the interim 3% already granted in January of this year;
      2. 4% to wages and wage-related allowances, effective 26 February 2025;
      3. 6% to wage and wage-related allowances effective 26 February 2026, 3% of which is an increase to recognise competency in road crash rescue (RCR) work;reduce the current Rescue Operator Allowance from 26 February 2026 to avoid double counting the work value of conducting RCR work;
   2. reduce the current Rescue Operator Allowance from 26 February 2026 to avoid double counting the work value of conducting RCR work;
   3. introduce additional allowances to recognise the work value of holding other rescue competencies from 26 February 2026;
   4. introduce into the Permanent Award an on call allowance and a disturbance allowance;
   5. introduce into the Permanent and Retained Award a Remote Piloted Aircraft System allowance;
   6. expand the coverage of Hazmat and Major/Minor Aerial allowances;
   7. increase the minimum payment for Retained Firefighters from 1 hour to 1.5 hours;
   8. introduce an ex gratia payment which Retained Firefighters may apply for if they have accepted a deployment offer and that deployment is cancelled, delayed, altered with less than 48 hours’ notice;
   9. confirm that the consultation structure set out in Schedule 5 of the Permanent and Retained Awards will be maintained on an ongoing basis;
   10. remove the need for agreement between the parties in the event of changes to entitlements that arise where an employee is given notice of transfer to work in a new location;
   11. remove the Country Relief model subcommittee;
   12. include a clause that identifies the extent to which it is open to the parties to make further claims that would take effect during the life of the award;
   13. introduce cultural and ceremonial leave for Permanent and Retained firefighters;
   14. introduce an entitlement to overtime pay at single time for Superintendents and Chief Superintendents for hours worked outside the ordinary span of hours that they are directed or required to work as a result of an incident or emergency;
   15. permit permanent firefighters to be reimbursed at the official business rate when they travel in their private vehicle if public transport is not reasonably available or practicable;
   16. extend the accommodation allowance to employees who are on intrastate and international deployments;
   17. extend the deployment allowance to employees who are on intrastate and interstate deployment who have to stay in accommodation that is either not indoors or has no private sleeping and bathroom facilities;
   18. extend the entitlements in current clause 26 of the Permanent Award to DART members engaged in training; and
   19. make by consent a number of other variations to the Awards.
3. We have determined that there should also be changes in respect of the following matters, but they require further discussions or conciliation before we can determine exactly how they are to be resolved:
   1. accommodation and deployment allowances for firefighters who are sent on intrastate, interstate and international deployments;
   2. how firefighters who have Hazmat and Major/Minor Aerial skills and are employed in positions where it is expected that they will from time to time be required to utilise that skill are to be appropriately remunerated;
   3. how firefighters who are not full-time pilots are to be appropriately remunerated if they are required to operate RPAS;
   4. to reflect our conclusion that allowances ought to be introduced for retained firefighters who hold additional rescue competencies, along with the quantum of new allowances; and
   5. whether anything beyond the insertion of the words “and practicable” after “reasonably available” in clause 20.7 of the Permanent Award is required to ensure that firefighters are reimbursed whenever they need to use their private vehicle because public transport, while technically available, is impracticable and if there is any other textual amendment to assist to reduce disputation as to the circumstances in which the entitlement arises.
4. The Commission has also determined to make recommendations concerning the work value and appropriate relativities for the various firefighter positions, particularly the relative work value of non-station based roles and senior officer roles; feedback for unsuccessful candidates for promotion; the provision of galateas for retained firefighters; and the performance of ComSafe duties by permanent firefighters.
5. The parties are to have discussions with a view to providing us with draft Awards that reflect our decision within 21 days. To the extent that any revised clauses are not agreed upon, the parties are to file a document setting out their competing positions on the terms of clauses that reflect our decision. That is to include their position as to any of the issues which are identified above at [3] that are not agreed. To the extent any such issues are not resolved by conciliation the Full Bench will determine the variations necessary. It is the intention of the Full Bench to finalise and make the new awards by no later than 30 November 2025.
6. In respect of the application by the FBEU to vary a third award that applies both to permanent and retained firefighters in NSW, namely the Crown Employees (Fire and Rescue NSW Firefighting Staff Death and Disability) Award 2022 (D&D Award), we have determined that there be directed conciliation before Commissioner McDonald to attempt to resolve a dispute as to the terms of a recommended change to clause 11.4. If the dispute cannot be resolved by conciliation before the end of 2025 it will be determined by the Full Bench by arbitration early in 2026.