Hobsons Bay council has budgeted $1million for redundancies as it outsources the management of Altona Meadows and Altona North early- learning centres to a Perth-based organisation.
The not-for-profit Children’s Services Support Unit (CSSU) has been awarded the tender to manage the two centres for five years with a further five-year option.
Parents, staff and the Australian Services Union (ASU) oppose the outsourcing, saying it will lead to a 30 per cent cut in wages for staff who keep their jobs.
They also believe it will compromise the quality of care for 212 children at the two centres.
The centres’ 67 educators are now faced with a choice of taking voluntary redundancies or reapplying for their jobs.
Re-employed staff will retain their pay until their current enterprise agreement runs out next year.
CSSU’s corporate general manager, Natasha Burns, declined to say if staff wages would decrease under new management.
“I’m not prepared to comment on that at this stage,” she said.
“We’re still in negotiations so I can’t really say yes or no.
“We will meet staff in the coming weeks and possibly we’ll know at that stage what’s happening.
“But we’re hoping to keep as many staff as possible to ensure continuity of care.”
ASU organiser Martin McDonald said the only thing known about CSSU was that it currently operated mainly in remote and rural communities, and each service contributed to sponsoring orphanages in Bali.
“Profits won’t stay in Victoria,” he said. “The $1 million the council has set aside for redundancies should be used to reinvest in the service.
“Staff are shattered and heartbroken as they have put their hearts and souls into the service and have been guaranteed an interview only. If they are successful, they will lose 30 per cent of their income.
“It should be noted that Moonee Valley council has recently opened two new centres [of its own], which brings the total to six.”
Hobsons Bay’s community well- being director Peter Hunt said the council was currently talking to staff about voluntary redundancies.
“There’s an option for staff to pursue that – probably a redundancy in the shorter term – but if staff wish to stay until the end of December they’ll be entitled to redundancy at that time,” he said.
“There’s approximately $1million in the budget that was endorsed by council for payment of redundancies.
“That would be full coverage of all staff should they elect not to transfer or if they’re not offered employment at the new provider.”
