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DHHS Privatisation Update: Letter from Lloyd Williams


The Victorian Government announced today they are proceeding to put DHHS services out to tender to the non-government sector.
This is an extremely disappointing development and HACSU remains opposed to privatisation. However, yesterday evening, after 700 days of campaigning and negotiating, HACSU reached an in-principle settlement with the Government to secure important workforce protections in the event of privatisation.
This settlement features an 8-year period of protection over two EBAs, which includes one year of no change until 1 January 2019, then a period of two-years until 1 January 2021 where DHHS employees will be seconded to non-government organisations (they remain DHHS employees). From 1 January 2021, DHHS workers will be offered direct employment with non-government organisations with their wages and conditions protected until at least 31 December 2025.
Other key features in this settlement are:

  • 29% wage increases over the 8-year period, made up of:
    • 17% in the first EBA (the first 6.5% will be paid in the next 6 months, with a 3% immediate increase from today)
    • 12% in the second EBA


  • $2,000 lump sum sign-on payment for ongoing employees (pro-rata for part-time workers and regular and systematic casuals) made up of:
    • $1,000 from today
    • $1,000 upon approval of EBA1


  • $15,000 transfer payment for ongoing employees who choose to transfer (pro-rata for part-time workers and regular and systematic casuals) made up of:
    • $7,500 at start of a secondment period (from 1 January 2019)
    • $7,500 at point of transfer (from 1 January 2021)


  • Redundancy packages for a maximum of 15% of the ongoing workforce (approximately 500 packages) available prior to the secondment period (1 January 2019).


  • Protection of current terms and conditions for the 8 years.

The settlement was presented to over 300 members attending the statewide stop work meeting on 19 December 2017. The meeting overwhelmingly endorsed the settlement. Please click here to read the resolution.
The details of the settlement will be finalised with the Government between now and February 2018 in a formal Memorandum of Understanding (MOU) and a finalised EBA.
Whilst we have campaigned hard for two years against privatisation, almost every State and Territory Government around the country have either privatised or is currently privatising their public disability services in the wake of the NDIS. Unfortunately, the Victorian Government is set to follow suit.
Whilst it is disappointing that privatisation is proceeding, we have been the most successful union in Australia at winning protections for workers.
All HACSU members who participated in the work bans, took stop work action and attended stop work meetings should be incredibly proud of your efforts. It is YOUR action that has won these important protections for the entire DHHS disability workforce.
The details of the settlement are attached here for your information. Please contact the HACSU office if you need clarification on any of these matters. You can contact HACSU on 1300 651 931 or email Please note that the HACSU office will be closed for three days between Boxing Day and the New Years Eve weekend, reopening 2nd January 2018. Please click here to read details. 
I will be hosting a series of meetings in the new year to meet with members on the settlement and the EBA. We will be in contact in the new year with details.
Please be aware that the work bans remain in place until the EBA is finalised.
Finally, the initial 3% increase and first $1000 payment will be processed by DHHS payroll as soon as possible and should arrive in January.
Have a happy and safe Christmas and new year, I wish you and your families all the best.
Yours sincerely
Lloyd Williams
HACSU State Secretary

handout from the statewide meeting