RIGHT PEOPLE RIGHT PLACE

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1 R I G H T P L A C E RIGHT PEOPLE RIGHT PLACE A Health Services Union strategy to attract and retain the workforce we need to provide quality health services in regional Western Australia to provide quality health services in regional Western Australia 1

R I G H T P E O P L E One of the most complex challenges is ensuring people living in rural and remote locations have access to trained health workers.

World Health Organisation 2010: Increasing access to health workers in remote and rural areas through improved retention Health Services Union The Health Services Union (HSU) represents more than

HSU members include Administrators, Clerks, Technicians, Medical Scientists, Physiotherapists, Audiologists, Bioengineers, Chemists, Dieticians, Engineers, Occupational Therapists, Physicists,

Technologists, Radiation Therapists, Orthotists, Certified Clinical Perfusionists, Librarians, Supervisors, and Maintenance Officers.

The HSU believes that Western Australia s new resources boom will present particular challenges to the attraction and retention of regional health workers and that the State Government should take a

2 R I G H T P E O P L E One of the most complex challenges is ensuring people living in rural and remote locations have access to trained health workers. Skilled and motivated health workers in sufficient numbers at the right place and at the right time are critical to deliver effective health services and improve health outcomes. World Health Organisation 2010: Increasing access to health workers in remote and rural areas through improved retention Health Services Union The Health Services Union (HSU) represents more than 10,000 people employed in Western Australia s hospitals and health services, with more than 2,500 of those in regional WA. HSU members include Administrators, Clerks, Technicians, Medical Scientists, Physiotherapists, Audiologists, Bioengineers, Chemists, Dieticians, Engineers, Occupational Therapists, Physicists, Pharmacists, Clinical Psychologists, Psychologists, Research Officers, Scientific Officers, Social Workers, Speech Pathologists, Podiatrists Medical Imaging Technologists, Nuclear Medicine Technologists, Radiation Therapists, Orthotists, Certified Clinical Perfusionists, Librarians, Supervisors, and Maintenance Officers. The HSU believes that the attraction and retention of a skilled regional health workforce is vital to ensuring the delivery of quality health services in regional communities. The HSU believes that Western Australia s new resources boom will present particular challenges to the attraction and retention of regional health workers and that the State Government should take a proactive approach to ensuring regional communities have the people they need to provide quality health services. The HSU recommends Right People Right Place to the State Government as a strategy for attracting and retaining staff in the WA Country Health Service. Dan Hill, Secretary, Health Services Union RIGHT PEOPLE RIGHT PLACE A Health Services Union strategy to attract and retain the workforce we need to provide quality health services in regional Western Australia 2 a Health Services Union strategy to attract and retain the workforce we need

3 R I G H T P L A C E Forecast Growth in Gross State Product 5% Western Australia s booming economy Western Australia s economy is forecast to grow strongly in the years ahead, driven by significant growth in WA s resources industry. Strong international demand for resources like iron ore and natural gas continues to underpin strong commodity prices and this is driving major investment in the mining and petroleum industries. Major projects included FMG s proposed $US8.4billion iron ore expansion in the Pilbara and Rio Tinto s commitment to invest an additional $US7.2billion to expand its iron ore operations. Additional projects include Chevron s $43billion Gorgon LNG project, BHP Billiton s Rapid Growth Project 5 and Citic Pacific s Sino Iron Ore Project. Underpinned by this strong investment in the resources sector, business investment in Western Australia is expected to grow by 12 per cent in , 10 per cent in and 8 per cent in The Western Australian economy is expected to grow strongly on the back of this, with Gross State Product expected to grow by 4 per cent in , 4.75 per cent in and 4.5 per cent in % 3% 2% 1% 0% Source: WA Department of Treasury & Finance Midyear Review Forecast Growth in Average Weekly Earnings 6% Shortage of Workers Strong growth in the Western Australian economy is expected to lead to significant employment growth, with Access Economics and Monash University predicting that between 222,000 and 239,000 new jobs will be created in Western Australia by In addition to these new jobs, new labour will also be required to replace workers who leave the workforce due to retirement and emigration. This strong demand for labour is expected to place upward pressure on wages, with higher paying industries (such as mining and petroleum) seeking to induce workers with higher salaries. Average weekly earnings are expected to grow by 4.5 per cent in , before growing by 5.25 per cent in and by 5.75 per cent in Public sector workers, including health workers, are seen as particularly susceptible to poaching by resources companies offering higher wages, with this providing a significant barrier to the retention of the health workforce. 5% 4% 3% 2% 1% 0% Source: WA Department of Treasury & Finance Midyear Review to provide quality health services in regional Western Australia 3

4 R I G H T P E O P L E While we were encouraged to complete post-graduate studies, which improve the potential services we can offer to patients, there are no financial incentives for health professionals to improve their skills. We have to pay out of our own pockets to get the higher qualifications and we don t get any extra pay. Physiotherapist: Goldfields WA Population Growth During the period of the last boom, Western Australia s population grew strongly, with high levels of interstate and international immigration feeding industry s need for additional labour. With high levels of interstate and international immigration required to feed Western Australia s strong demand for labour, Western Australia s population will continue to grow strongly. Based on current trends in fertility, life expectancy at birth, net overseas migration and net interstate migration, WA s population is expected to reach three million people in Demand for Health Workers Western Australia s strong population growth will require similar growth in the capacity of the State s health sector if community expectations about the availability and quality of health services are to be met. During the period of the last boom, WA s health care and social assistance industry created a total of 28,300 new jobs (2001/ /09). Over the seven year period to 2016/17, an additional 21,800 jobs are expected to be created in this sector, corresponding to an average annual growth rate of 2.5 per cent. Employment in the health care and social assistance industry is only expected to grow at 1.4 per cent per annum over the same period Sep-2005 Sep-2006 Sep-2007 Sep-2008 Sep-2009 Sep-2010 Source: ABS Estimated Resident Population - Western Australia 4 a Health Services Union strategy to attract and retain the workforce we need

R I G H T P L A C E WA Country Health Service The WA Country Health Service is the largest country health system in Australia and one of the biggest in the world. It covers an area of some 2.

Staffing the Country Health Service While strong population growth will necessitate corresponding growth in the capacity of Western Australia s health services, the health sector is expected to find

In regional communities, where resources companies operate, the competition for labour is even tighter.

5 R I G H T P L A C E WA Country Health Service The WA Country Health Service is the largest country health system in Australia and one of the biggest in the world. It covers an area of some 2.5million square kilometres, servicing a regional population of 454,000. In March 2011, the WA Country Health Service had more than 6,600 full time equivalent staff. Staffing the Country Health Service While strong population growth will necessitate corresponding growth in the capacity of Western Australia s health services, the health sector is expected to find it more difficult to recruit staff, as higher paying industries (such as mining and petroleum) induce workers with higher wages. This challenge is expected to be even greater in regional WA. In regional communities, where resources companies operate, the competition for labour is even tighter. For example, the average unemployment rate in the Pilbara, where many of WA s large scale resources projects operate, was 4.5 per cent in , compared to a State average unemployment rate of 4.9 per cent over the same period. In regional communities, it is not uncommon for public sector workers to be poached by resources companies seeking high quality, local staff. Compounding the challenge of attracting and retaining regional health services staff are the increased cost of housing and relocation. In addition, Western Australia s geographical size introduces barriers for health workers seeking to undertake professional development or further education. WA Country Health Service by Region REGION Full time (equivalent) Area Office 126 Goldfields 701 Great Southern 842 Kimberley 836 Midwest 957 Pilbara 665 South West 1,402 Wheatbelt 1,125 TOTAL 6,654 Source: HR Data Warehouse Investing in Country Health Service staff Western Australia is at the start of another period of strong economic activity, and with this growth likely to drive high levels of population growth and an associated increase in demand for health services. The Health Services Union believes the State Government should take a proactive approach and fund new initiatives to attract and retain health workers to regional WA, where competition for labour will be felt most intensely, particularly in mining communities. It costs an arm and a leg to live in this town. I love working in the hospital, but the cost of living is crazy. It sort of pushes you to the mines. Maintenance Officer: North West WA to provide quality health services in regional Western Australia 5

R I G H T P E O P L E Recommendation 1: That the State Government provide adequate funding to the Regional Community Services Fund to enable the establishment of initiatives designed to attract and

Regional Community Services Fund Under its Royalties for Regions policy, the State Government established the Regional Community Services Fund with the objective of improving access to services in

6 R I G H T P E O P L E Recommendation 1: That the State Government provide adequate funding to the Regional Community Services Fund to enable the establishment of initiatives designed to attract and retain workers for the WA Country Health Service. Regional Community Services Fund Under its Royalties for Regions policy, the State Government established the Regional Community Services Fund with the objective of improving access to services in the regions. The Fund is promoted as supporting services that have shown they are effective in enhancing the quality of life for residents in regional areas and in providing better access to government services and infrastructure. The stated aims of the Regional Community Services Fund are to: 1. assist regional communities achieve improved access to a range of community services; 2. assist regional communities overcome disadvantages caused by remoteness; and 3. attract and retain essential regional government employees. Programs currently assisted by the Fund include the:»» Patient Assisted Travel Scheme;»» Boarding Away from Home Allowance;»» Royal Flying Doctor Service;»» Community Resource Centres; and»» Country Age Pension Fuel Card. The Health Services Union believes that initiatives to attract and retain health workers to regional communities, with the objective of ensuring regional communities have ready access to quality health services, should be a priority for the Regional Community Services Fund. initiatives to attract and retain health workers to regional communities, with the objective of ensuring regional communities have ready access to quality health services 6 a Health Services Union strategy to attract and retain the workforce we need

R I G H T P L A C E Access to affordable housing The availability of affordable housing in regional communities is a significant barrier to attracting and retaining regional health workers.

For example, the median house price in Karratha in 2008 (when the last boom ended) was $689,000, compared to a median house price in Perth of $462,000 at the same time.

Over the same period, the median house price in Perth grew by only 120 per cent from $209,800 to $462,000. The price of rental accommodation is also significantly inflated in mining communities.

7 R I G H T P L A C E Access to affordable housing The availability of affordable housing in regional communities is a significant barrier to attracting and retaining regional health workers. This is particularly felt in mining communities, where house prices and rents are inflated by resources industry wages and the activity of resources companies in the property market. For example, the median house price in Karratha in 2008 (when the last boom ended) was $689,000, compared to a median house price in Perth of $462,000 at the same time. In the five years from 2003, the median house price in Karratha grew by 193 per cent from $235,000 to $689,000 in Over the same period, the median house price in Perth grew by only 120 per cent from $209,800 to $462,000. The price of rental accommodation is also significantly inflated in mining communities. The average price of rental accommodation in Karratha was $1,566 per week in December 2010, which is significantly higher than the $380 per week median rent in Perth. Health workers are provided assistance to meet the increased cost of living associated with working in different regions within Western Australia through District Allowances and other baseline measures. While of assistance, these measures are often locked in for specific periods of time and are often insufficient to meet the increased cost of living in communities affected by the resources boom. Unless health workers are adequately compensated for the increased cost of housing in some regional communities, a significant barrier will remain to the attraction and retention of health workers, which will, in turn, undermine access to quality health services in those communities. Recommendation 2: That the State Government establish a scheme under its Regional Community Services Fund that provides financial assistance to health workers working in regional Western Australia, in the event that their rental costs exceed by more than 10 per cent, the cost component for rental included in the calculation of the relevant District Allowance. Recommendation 3: That the State Government develop a long term strategy to provide affordable housing for health workers in regional Western Australia so that the WA Country Health Service has the workers it needs to provide quality health services in regional communities. to provide quality health services in regional Western Australia 7

R I G H T P E O P L E Professional Development The health care and social assistance industry requires a highly educated workforce, with the 2006 Population Census finding that 65 per cent of people

5 per cent). In addition, 4.6 per cent of people had Postgraduate qualifications and 2.7 per cent had Graduate Diplomas or Certificates.

8 R I G H T P E O P L E Professional Development The health care and social assistance industry requires a highly educated workforce, with the 2006 Population Census finding that 65 per cent of people employed in the industry had postschool qualifications. These qualifications included Bachelors Degrees (26.3 per cent), Advanced Diplomas (14.5 per cent), Certificate I-IV qualifications (16.5 per cent). In addition, 4.6 per cent of people had Postgraduate qualifications and 2.7 per cent had Graduate Diplomas or Certificates. It is in the interests of both the quality of health services and the professional development of people employed in the sector for health workers to engage in ongoing professional development and further education. However, the geographical size of Western Australia and under funding in the public health system is often a barrier to the participation of regional health workers in such programs. Post-school qualifications profile The Health Services Union believes that programs that facilitate professional development and further education for regionally based health workers would both remove barriers and provide an incentive to work in regional WA Postgraduate Graduate Diploma/Certificate Bachelor Degree Advanced Diploma/Diploma Certificate I-IV None/Not Stated Source: ABS, 2006 Population Census (as published by the WA Department of Training and Workforce Development 2010 Industry Profile) 8 a Health Services Union strategy to attract and retain the workforce we need

R I G H T P L A C E Recommendation 4: That the State Government meet the enrolment costs / tuition fees of a regional health worker who has obtained a recognised degree, post graduate

These costs / tuition fees should be progressively reimbursed or paid on behalf of the employee over the same period as taken by the employee to acquire the qualification, provided

Recommendation 5: That the State Government provide three days of additional professional development leave per annum to employees in regional health services.

professional development event to be paid by the employer.

9 R I G H T P L A C E Recommendation 4: That the State Government meet the enrolment costs / tuition fees of a regional health worker who has obtained a recognised degree, post graduate or VET qualification while employed at a country health service or within five years prior to having commenced being employed. These costs / tuition fees should be progressively reimbursed or paid on behalf of the employee over the same period as taken by the employee to acquire the qualification, provided that no further payments will be paid should the employee leave employment in a regional health service. Recommendation 5: That the State Government provide three days of additional professional development leave per annum to employees in regional health services. Recommendation 6: That the State Government reimburse travel time, reasonable accommodation and meal expenses relating to attendance of regional health service employees at an approved professional development event to be paid by the employer. Recommendation 7: That the State Government cover the fees and charges incurred by an employee employed in a registered profession requiring specified professional development activities. The Health Services Union believes that programs that facilitate professional development and further education for regionally based health workers would both remove barriers and provide an incentive to work in regional WA. to provide quality health services in regional Western Australia 9

R I G H T P E O P L E providing relocation assistance for all new appointments would remove a significant barrier to recruitment of health

community would remove another barrier to recruitment and also encourage health workers to remain in regional communities for that period of

10 R I G H T P E O P L E providing relocation assistance for all new appointments would remove a significant barrier to recruitment of health workers to regional communities Relocation expenses The cost of moving to and from regional areas can be a significant barrier to attracting health workers to regional communities. The Health Services Union believes that providing relocation assistance for all new appointments would remove a significant barrier to recruitment. In addition, the provision of relocation assistance to health workers who resign having provided at least 3 years service in a regional community would remove another barrier to recruitment and also encourage health workers to remain in regional communities for that period of time. Recommendation 8: That the State Government fund the provision of a Transfer Allowance, Removal Allowance and Property Allowance for all new regional health service appointments and that these also be provided to employees who resign after satisfactorily completing at least 3 years regional health service. 10 a Health Services Union strategy to attract and retain the workforce we need

R I G H T P L A C E Recognising regional service The retention of health workers in regional communities provides significant benefits to the quality of health services provided, as well as providing

The Health Services Union believes that specific programs to retain health workers in regional communities would benefit regional communities through the development and retention of an experienced

The retention of health workers in regional communities provides significant benefits to the quality of health services provided, as well as providing cost savings to the State Government

11 R I G H T P L A C E Recognising regional service The retention of health workers in regional communities provides significant benefits to the quality of health services provided, as well as providing cost savings to the State Government through lower attraction and recruitment costs. The Health Services Union believes that specific programs to retain health workers in regional communities would benefit regional communities through the development and retention of an experienced health workforce with local knowledge and expertise. Retention of health workers will be enhanced by providing earlier access to Long Service Leave and to accelerated salary increments. The retention of health workers in regional communities provides significant benefits to the quality of health services provided, as well as providing cost savings to the State Government Recommendation 9: That the State Government make pro rata Long Service Leave payable to health workers on completion of 3 years continuous employment in a regional health service Recommendation 10 That the State Government fund accelerated salary increments for regional health workers.. to provide quality health services in regional Western Australia 11

R I G H T P E O P L E Address: 8 Coolgardie

Australia (Union of Workers) ABN 944 72768

12 R I G H T P E O P L E Address: 8 Coolgardie Terrace, Perth WA 6000 Telephone: (08) Facsimile: (08) hsu@hsuwa.asn.au Website: Health Services Union of Western Australia (Union of Workers) ABN Secretary: Dan Hil 12 a Health Services Union strategy to attract and retain the workforce we need

Public Relations Institute of Australia 2006 Golden Target Awards & State Awards for Excellence

Rio Tinto WA Future Fund Working Together For A Sustainable Future Public Relations Institute of Australia 2006 Golden Target Awards & State Awards for Excellence Table of Contents Executive Summary 1