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Management of human resources

Financial pressures created a challenging year for Customs staffing.

Increased government commitments to border protection produced significant operational pressures as Customs sought to respond more quickly to changed workload demands.

Additional staff were required for activities including Southern Ocean Maritime Patrol and Response, Container Examination Facilities, first port boarding of vessels entering Australia, National Marine Unit patrols and international capacity building.

Customs redeployed staff, recruited additional staff, and considered more flexible employment to meet operational requirements. The delays caused by a structured recruitment process, exhaustive security clearance processes and the requirement to fully train staff before operational deployment put pressure on operational areas.

Task forces on human resource development and recruitment were established to consider variations in training and recruitment strategies to deliver a flexible workforce that can respond quickly to changed workload demands and meet government expectations. Immediate outcomes are:

• the trial employment of 40 officers on an irregular and intermittent basis,
• a project to examine fitness standards required for a changing work environment
• development of national online entry and exit surveys.

An Organisational Health Project was established to look at creating and sustaining a high-performing workforce, and consider the management practices that support and promote a healthy environment. It will also focus on early intervention strategies and improved rehabilitation and return-to-work strategies.

Workforce planning

Key policies, guidelines and toolkits were developed or revised to promote workforce policies. These included assignment and career management policy, managing underperformance, managing change, leading teams, induction, attendance management, conditions of engagement and probation.

Customs reviewed the National Strategic Workforce Plan and the outcome was that human resource strategies were more closely aligned with the Customs corporate priorities. The plan provides analysis of workforce profile detailing demographics, trends and progress against strategies.

Customs continued to develop strategies to reduce unscheduled absences from the workplace, including provision in the new Certified Agreement of a bonus of $150 to all staff if absenteeism is reduced by one or more days over a comparative year.

Staff turnover and retention

The rate of ongoing staff separating from Customs averaged 5.86 per cent in 2002–03, 6.36 per cent in 2003–04 and 6.62 per cent in 2004–05. While separation rates have increased, they are within acceptable benchmark limits.

Analysis revealed significant numbers of separations at specific levels in specific regions, especially the Australian Capital Territory, New South Wales and the Northern Territory. These included higher than normal age-based retirements (Customs Level 4), and resignations (Customs Level 1).

Staffing profile

Customs planned for an estimated average staffing level3 of 4630 staff to enable the delivery of Customs Outcome. The average staffing level in 2004–05 was 4686.

Customs total workforce4 at 30 June 2005 was 5055. This compares to 4806 staff at 30 June 2004.

Areas where additional staff were required included Southern Ocean Maritime Patrol and Response, Container Examination Facilities (CEF) and an additional 19 staff to undertake first port boarding of vessels in Australia. Recruitment for CEF operations and first port boarding was integrated with the Customs Trainee recruitment program. 

Customs recruited 636 staff, including 328 Customs trainees, to address staff shortages brought about by the redeployment of staff. There were difficulties in attracting sufficient suitable applicants for part time positions in New South Wales. This added to the pressures being experienced at the airport due to increased passenger numbers.

Customs recruited eight graduate trainees in 2004 and 12 graduate trainees in 2005.

At 30 June 2005, Customs had staff in all States and Territories of Australia as shown in Figure 45.

Customs staff also hold posts in Bangkok (1), Beijing (1), Brussels (1), Jakarta (1), Tokyo (1), and Washington (2). Some staff are temporarily assigned to capacity building projects in Papua New Guinea (4) and Solomon Islands (1).

Figure 45: Staff employment category by location at 30 June 2005*

	ACT#	NSW	VIC	QLD	SA	WA	TAS	NT	Total
Full-Time
Ongoing employee	1 025	1 138	760	630	153	434	31	109	4 280
Non-ongoing	102	8	4	8	-	2	-	-	124
Full-time total	1 127	1 146	764	638	153	436	31	109	4 404
Part-Time
Ongoing employee	43	233	153	106	26	58	1	5	625
Non-ongoing	12	6	-	3	-	2	-	-	23
Part Time total	55	239	153	109	26	60	1	5	648
Casual
Non-ongoing	1	1	-	-	-	-	1	-	3
Total	1 183	1 386	917	747	179	496	33	114	5 055
Males	750	832	564	446	97	304	20	57	3 070
Females	433	554	353	301	82	192	13	57	1 985
Total	1 183	1 386	917	747	179	496	33	114	5 055

* Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information System). Financial statements report on staff numbers by full-time equivalent (FTE).

# ACT figures include National Marine Unit.

Figure 46: Staff numbers by classification at 30 June 2005*

* Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information System). Financial statements report on staff numbers by full-time equivalent (FTE).

^ Indigenous Cadets are funded by Australian Capital Territory (Central Office) for the term of their cadetship and located in regions, one each in Australian Capital Territory, Western Australia and New South Wales and three in Queensland.

+ Senior Executive Service includes ongoing SES employed under the Public Service Act 1999, including three non-SES staff on higher duties. It does not include the Chief Executive Officer who is the statutory office holder.

3 ASL is the average of the end of month Full-time Equivalent (FTE) staff as paid by the organisation.

4 Actual headcount.

Figure 47: Staff classification and location at 30 June 2005*

	ACT#	NSW	VIC	QLD	SA	WA	TAS	NT	Total
Indigenous Cadet^	1	1	-	3	-	1	-	-	6
Graduate	12	-	-	-	-	-	-	-	12
Trainee	-	46	39	21	22	14	-	16	158
Customs Level 1	237	717	446	449	68	267	13	46	2 243
Customs Level 2	230	376	248	170	51	122	13	30	1 240
Customs Level 3	358	181	137	77	31	71	6	15	876
Customs Level 4	221	48	33	20	6	18	-	6	352
Customs Level 5	96	13	11	6	1	2	1	1	131
Senior Executive Service+	28	4	3	1	-	1	-	-	37
Total	1 183	1 386	917	747	179	496	33	114	5 055

*  Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information Systems). Financial statements report on staff numbers by full-time equivalent (FTE).

# ACT figures include National Marine Unit.

^  Indigenous Cadets are funded by Australian Capital Territory (Central Office) for the term of their cadetship and located in regions, one each in Australian Capital Territory, Western Australia and New South Wales and three in Queensland.

+ Senior Executive Service includes ongoing SES employed under the Public Service Act 1999, including three non-SES staff on higher duties. It does not include the Chief Executive Officer who is the statutory office holder.

Workplace diversity

Customs implemented a new Workplace Diversity Policy and Workplace Harassment Policy by promoting awareness of the policies, roles and responsibilities of all employees.

The National Workplace Diversity Coordinators and Regional Equity Contact Officers networks were revitalised. Cultural awareness sessions were conducted and calendar of events of significance were produced. Specific events such as the International Day of People with a Disability and National Aboriginal and Islander Day Observance Committee (NAIDOC) activities were included in the calendar. Customs implemented a national workplace harassment reporting process so that all employees can report incidents of harassment in a safe and confidential manner and these can be reviewed and analysed centrally.

Customs appointed three Indigenous entry-level trainees in October 2004. These trainees are supported through an accredited training qualification. Customs assisted ten cadets in the National Indigenous Cadetship Project, two of whom were engaged on completion of their studies.

Figure 48 shows the representation of equity and diversity groups in Customs. There was a slight rise in the proportion of female employees but slight proportional decreases in all other groups compared with staffing figures as at 30 June 2004. These figures rely on voluntary self-identification and compliance levels vary from year to year.

Figure 48: Representation of equity and diversity groups by staff classification at 30 June 2005*

		Female		Born Overseas~		People with  disabilities		Indigenous
		Number	%	Number	%	Number	%	Number	%
Indigenous Cadet^		6	100.0	-	-	-	-	6	100.0
Customs Graduate Trainee		9	75.0	3	25.0	-	-	-	-
Customs Traniee		67	42.4	27	17.1	-	-	1	0.6
Customs Level 1		989	44.2	326	14.5	41	1.8	48	2.1
Customs Level 2		481	38.8	140	11.3	34	2.7	16	1.3
Customs Level 3		284	32.4	93	10.6	23	2.6	5	0.6
Customs Level 4		102	29.0	43	12.2	5	1.4	1	0.3
Customs Level 5		32	24.4	18	13.7	3	2.3	-	-
Senior Executive Service		15	40.5	5	12.2	3	7.3	-	-
Total		1985	39.3	655	12.9	109	2.2	77	1.5

*  Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors, consulting or Acting Officers of Customs. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information System).

~  Number of staff born outside Australia.

^  Indigenous Cadets are funded by Australian Capital Territory (Central Office) for the term of their cadetship and located in regions, one each in Australian Capital Territory, Western Australia and New South Wales and three in Queensland.

Training and development

Customs developed new initiatives for training and development to meet changing workloads.

The Australian National Training Authority endorsed a public sector training package on border protection developed by Customs. Customs received accreditation to issue two new qualifications, a Certificate III and Certificate IV in Government (Border Protection).

A range of current learning and development policies and programs was integrated and launched as Customs Framework for Learning and Development 2005–07.

A three-step assessment and development methodology was developed to align training courses against competencies.

A national competency database is being developed to record individual competencies, and support career and succession management within Customs.

Certified Agreement

Customs negotiated a new Certified Agreement for pay and conditions for 2004–2007. The pay increases and other condition enhancements will be funded from productivity gains.

Following lengthy negotiations with staff, the Australian Industrial Relations Commission certified the agreement on 23 December 2004. During the negotiations there was a national strike called by the Community and Public Sector Union. Around 25 per cent of staff participated in the strike, but effective contingency planning by operational areas resulted in no significant adverse impact on operations.

Figure 49: Staff classification, Australian Public Service equivalent level and salary range at 30 June 2005*

Customs Classification	APS Level	Salary Range ($)
Indigenous Cadet	APS Level 1	19 091 – 35 872
Customs Trainee	APS Level 1	19 091 – 35 872
Customs Graduate Trainee	APS Level 2	35 169 – 39 930
Customs Level 1 Customs Officer	APS Level 2–3	29 807 – 46 002
Customs Level 2 Senior Customs Officer	APS Level 4–5	46 002 – 54 045
Customs Level 3 Customs Supervisor	APS Level 5–6	54 045 – 64 525
Customs Level 4 Customs Manager	EL 1	69 794 – 80 789
Customs Level 5 Customs Director	EL 2	80 789 – 97 310

*  Salary range includes minimum and maximum salaries available under the Customs Certified Agreement 2004–2007; Australian Workplace Agreement (AWA) salaries are not included.

Australian Workplace Agreements

Senior Executive Service

All ongoing Senior Executive Service employees have remuneration arrangements agreed through individual Australian Workplace Agreements (AWAs). Salaries are determined by the CEO and are broadly within three bands representing the three classification levels.

Performance pay is available to Senior Executive Service staff and may take the form of an annual bonus, bonus payments during the cycle to recognise outstanding contribution to particular work outcomes, or movement to a higher salary. The performance pay generally accords with certified agreement employee performance assessment and feedback outcomes.

During the past year, three quarters of Customs Senior Executive staff received performance pay. The aggregate amount of performance pay for Senior Executives was $208 000.

Figure 50: Senior Executive Service (SES) classification and gender at 30 June 2005*

	SES 1	SES 2	SES 3	Total
	$99 000 – $120 600	$118 300 – $148 200	$138 100 – $178 500
Females	11	2	0	13
Males	14	4	2	20
Total	25	6	2	33

* The amount shown for each band represents salary levels. The SES staff who received or were due to receive total remuneration of $100 000 or more (including superannuation and other non-salary benefits) are listed under Note 15 of the financial statements, Executive Remuneration. Staff shown above represent substantive ongoing SES at 30 June 2005. It does not include staff not employed by Customs or non-ongoing staff. The figures also exclude the CEO, who is a statutory office holder.

Non-Senior Executive Service

At 30 June 2005 there were 131 non-Senior Executive staff on AWAs. The majority of these were Customs Directors (Customs Level 5). The conditions of employment for staff who are not on individual agreements were governed by the provisions of the relevant Australian Customs Service Certified Agreement.

Performance management

Customs implemented a Performance Management Framework that identifies how individual components of performance management interact across a performance spectrum ranging from positive reinforcement through rewards and recognition to the more negative aspects of managing underperformance. A key tool for assessing the appropriate intervention is through the performance assessment and feedback (PAF) approach.

PAF provides a structured approach to discussing, recording and measuring expectations. A link between individual performance and business Outputs is part of the process as well as individual development needs. This ensures that staff have the skills they require to do their job.

The 2004–05 PAF cycle was the first complete performance cycle in which all agreements were established and managed online.

A range of communication and support materials were developed to facilitate the online process, including quick reference guides, tutorials, frequently asked questions and a help desk. The online system has greatly increased staff compliance.

Performance pay

Performance is managed through the performance assessment and feedback process. Ratings given through this process can result in no salary increase at all or increases of one, three or five per cent up to the top of the salary range. Customs Level 4 staff who received the maximum salary payable for their classification were eligible for a salary increase of two per cent, subject to a satisfactory performance rating. This came about through an adjustment to the salary bands in the 2004–2007 Customs Certified Agreement.

All staff at the top of the salary range who are rated as performing above agreed requirements are eligible for a bonus payment equivalent to five per cent of salary.

There were 4467 employees eligible for performance pay at the end of the 2004–05 period. Two hundred and ninety employees received a rating of performed above agreed requirements. This represents 6.5 per cent of participating employees and a 1.7 per cent increase on 2003–04 results.

Figure 51: 2004–05 Performance Assessment and Feedback Scheme ratings – performed above agreed requirements

		CL1	CL2	CL3	CL4	CL5	Total
Number of staff rated performed above agreed requirements	No	59	68	93	53	17	290

* Not all staff performed above requirements received a performance bonus. Some received an adjustment in salary

Figure 52: 2004–05 performance pay outcomes (Certified Agreement)

		CL1	CL2	CL3	CL4	CL5	Total
Number of staff receiving bonus	No	30	36	34	14	3	117
Total amount paid	$	36 304	49 037	59 489	31 066	7 128	180 024
Bonus amount average	$	1 210	1 362	1 750	2 219	2 376	1 564
Minimum bonus paid	$	424	50	526	2 219	2 376	50
Maximum bonus paid	$	1 289	1 573	1 807	2 219	2 376	2 376

Figure 53: 2004–05 performance pay outcomes (Customs Director AWA holders)

Number of staff receiving bonus	No	5
Total amount paid	$	3 471
Bonus amount average	$	694
Minimum bonus paid	$	36
Maximum bonus paid	$	871

Code of Conduct

Customs increased attention paid to integrity and ethics through Customs trainee courses and the Customs graduate trainee Induction. In addition, news items and the release of online learning assisted in better awareness of the APS values and code of conduct.

Customs conducted 54 investigations on suspected breaches of the Code of Conduct under Section 15(3) of the Public Service Act 1999. (13 were carried over from the previous financial year). At the end of the year, 29 investigations had been finalised and 25 were continuing. Of the 29 finalised investigations, breaches were found in 25 cases.

In the majority of cases, the alleged breaches involved more than one element of the APS Code of Conduct (see Figure 54).

Figure 54: Breaches of the APS Code of Conduct found in 2004–05

Breach	Number of cases*
Failure to behave honestly and with integrity	3
Failure to act with care and diligence in the course of Australian Public Service employment	3
Failure to treat everyone with respect and courtesy and without harassment	3
Failure to comply with all applicable Australian laws	1
Failure to comply with any lawful and reasonable direction	14
Failure to use Commonwealth resources in a proper manner	14
Provision of false or misleading information in response to a request for information that is made for official purposes in connection with the employee’s APS employment	2
Failure to behave in a way that upholds the APS Values and the integrity and good reputation of the APS	17

*  In some instances more than one breach was recorded for the same case.

Sanctions took into account the circumstances and seriousness of each breach (see Figure 55).

Figure 55: Sanctions imposed for breaches of the APS Code of Conduct in 2004–05

Sanction	Number of cases*
Termination of employment	3
Reduction in classification	0
Reassignment of duties	2
Reduction in salary	3
Salary deductions by way of a fine	12
Reprimand	8

*  In some instances more than one sanction was imposed for the same case.

In addition there were four cases where breaches were found but a formal sanction was not imposed. Of these matters, three involved formal counselling and one involved the employee being placed on a development course.

Investigations of employee misconduct

Customs Internal Affairs Unit is responsible for the investigation of all complaints of serious misconduct and suspected criminality against Customs employees. The Internal Affairs Unit provides lectures on integrity issues and internal fraud control to all Customs new members and to all employees attending training/development courses. The Unit addresses work groups throughout the organisation to remind staff of their reporting obligations.

The Unit investigated 72 complaints of serious misconduct and/or criminality against Customs employees and also 154 miscellaneous matters (see Figure 56). This represents a decrease on previous figures, which may be attributed to:

• improved understanding of regulations on the use of computers
• Internal Affairs Unit’s increased visibility throughout the organisation
• continuation of the integrity education program.

Figure 56: Trends in internal investigations, security checks and lectures

	2002–03	2003–04	2004–05
Investigations undertaken	90	122	72
Investigations finalised	78	97	51
Miscellaneous inquiries undertaken	128	159	154
Miscellaneous inquiries finalised	128	159	154
Security checks undertaken	537	466	480
Lectures given (participants)	436	448	585

Of the 72 complaints received, 17 were substantiated, 33 were not substantiated, 19 are open investigation and three were referred to another department. Disciplinary action taken on the 17 substantiated matters ranged from counselling to a reduction in salary (see Figure 57).

Of the 72 complaints received, 40 were deemed to involve fraud as defined by the Commonwealth Fraud Control Guidelines. Of these, 13 were substantiated, 14 were not substantiated and 13 are being investigated. Substantiated fraud related to misuse of corporate fuel card (one case), misuse of corporate computers (nine cases), theft of detained DVDs (one case), attempt to avoid the payment of duty (one case) and abuse of position (one case).

Figure 57: Action taken on substantiated complaints of serious misconduct and/or criminality 2004–05

Action	Number of cases
Awaiting outcome of administrative action	5
Salary reduction and reprimand	1
Offender not identified	2
Information maintained for intelligence	1
Fined	1
Fined and reprimanded	6
Counselled	1
Total	17

Security

Customs granted 1000 security clearances to Customs ongoing and non-ongoing employees. These were comprised of 557 for contractors and consultants (760 the previous year) and 443 for ongoing and non-ongoing employees (508 the previous year).

Vetting service providers were used to assist processing security clearances during peak periods, such as Southern Ocean Maritime Patrol and Response recruitment processes.

CIT Solutions was engaged to provide a protective security course specifically tailored to Customs operational environment. An online security awareness training package was also developed. Customs staff will complete security awareness training annually and this will be linked to the online performance assessment and feedback process.

Customs commenced a Security Enhancement Project to comply with the physical security standards set out in the Protective Security Manual and Australian Communication and Information Security Instructions (ACSI33). Customs enhanced security by redeveloping server/communications rooms and access control arrangements nationally. The project improved signal strength, integrated closed circuit television and improved server room hardening.

The project also delivered major security improvements to facilities in Queensland, the Australian Capital Territory, Victoria and South Australia. Further works are scheduled in New South Wales, Western Australia and Tasmania in 2005–06.

Occupational health and safety performance

Details of compliance with section 74 of the Occupational Health and Safety (Commonwealth Employment) Act 1991 are at Appendix A.

Comcare conducted a whole-of-agency investigation into Customs occupational health and safety policies and practices between August 2004 and March 2005. The conclusion was that:

• occupational health and safety at the workplace level is generally well managed
• Customs occupational health and safety management systems are largely effective.

The report highlighted that Customs performed well in documenting strategy, purchasing and control of product, managing work process, managing movement and material, and collecting and using data. Several recommendations were made such as increasing the awareness of managers and supervisors of their roles and responsibilities for OH&S performance and enhancing their accountability in performing these roles. These will be addressed in the development of future strategies.

Customs pays a premium to Comcare for workers compensation insurance. Revision of the 2004–05 premium rate from 2.18 per cent to 2.34 per cent created a $437 899 penalty amount in the 2005–06 premium. This was due to the adverse performance of claim development generally and the late acceptance of one high-cost claim incurred in 2001.

The forecast premium figure for 2005–06 is 2.49 per cent per cent, which is a rise of 6.4 per cent, slightly above the six per cent increase of the overall premium rate for all Federal agencies. This rise reflects an increase in claims for psychological injury, increased numbers of claims and increases in time off work for injured workers across the Public Service. For Customs the rise reflects an increase in the costs of claims due to increased time off work and higher medical bills rather than an increase in the number of claims.

Customs also experienced fewer accepted psychological injury claims in 2004–05 than in 2003–04.

Figure 58: Occupational Health and Safety Performance

Performance measure	2002–03*	2003–04*	2004–05
Accepted compensation incident claims	243	215	173
Claims per 100 staff (headcount)	4.83	4.47	3.42
Accepted compensation incident claims with time off work	134	115	98
Accepted compensation incident claims resulting in 5 or more days incapacity	71	55	64
Claims of 5 or more days incapacity per 100 staff (headcount)	1.41	1.14	1.27
Quality of return to work outcomes^	87%	91%	88%
Annual absenteeism#	..	..	12.17%

* As at 31 July of that year.

^ Number of staff who successfully returned to employment following the implementation of a return to work plan.

# Annual absenteeism rates are calculated at the end of the March quarter.

 

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