This year the Commission met three of the five KPIs relating to the Commission set out in the Portfolio Budget Statements.
|Table 29—Key performance indicators|
|Key performance indicators||Budget target||Actual results|
|Improve or maintain the time elapsed from lodging applications to finalising conciliations in unfair dismissal applications||Median time of 34 days||28||28||25||46|
|Improve or maintain time taken to list applications relating to industrial action||Median time of 3 days||3||3||3||2|
|Improve or maintain the agreement approval time||Median time of 32 days||21||17||16||17|
|Annual wage review to be completed||By June 2014||3 June 2011||1 June 2012||3 June 2013||4 June 2014|
|95% of financial reports required to be lodged under the Registered Organisations Act are assessed for compliance*||95% within 40 working days||-||-||-||37.7%|
* This KPI was a new addition to the Portfolio Budget Statements in 2013–14.
Performance and trends
Time elapsed from lodging applications to finalising conciliations in unfair dismissal applications
The Commission has generally met or exceeded our target of improving or maintaining the time elapsed from lodging applications to finalising conciliations in unfair dismissal applications—a median time of 34 days. However, this KPI was not met in the 2013–14 year, where it took a median time of 46 days to finalise conciliations after lodgment.
Between August 2013 and March 2014, five conciliator positions became vacant. This, coupled with monthly peaks in lodgments which did not follow the same pattern as previous years, created a backlog leading to the failure to meet this KPI.
The quality of service delivery at conciliation was not impacted, evidenced by a high settlement rate of 79 per cent.
Measures taken to correct the problem include rostering leave for conciliators, limiting the purchase of additional leave, restrictions on study leave, increases in conciliator case load and training of Commission staff as relief conciliators. As a result of these measures the KPI is considered achievable in 2014–15.
Further information about the Commission’s performance against this KPI can be found in Determining unfair dismissal applications.
Time taken to list applications relating to industrial action
Performance against this KPI has generally been steady, with a median time of three days taken to list applications relating to industrial action. This year, however, the Commission improved our performance in relation to these matters by one day.
The Commission understands the importance of resolving matters relating to industrial action in a timely manner. In order to ensure this KPI is reached and matters are resolved efficiently, the Commission may list matters outside of normal business hours when all parties are available.
For further information on these matters see Orders relating to industrial action.
Agreement approval time
The Commission has consistently exceeded our KPI in relation to agreement approval—a median time of 32 days. In 2010–11 the median time taken to approve agreements was 21 days. For the last three years it has consistently been around 16–17 days.
A factor which has contributed to the Commission’s success in meeting this KPI is the introduction of timeliness benchmarks in relation to all applications to approve agreements received after 1 July 2012.
By mid-2015 the Commission aims to review the process for determining applications for the approval of enterprise agreements to ensure the most timely and efficient resolution of these matters, which may impact positively on the Commission’s future performance against this KPI.
For further information in relation to approval of agreements see Approving agreements.
Annual wage review to be completed
The Commission has consistently met our KPI of completing the annual wage review to enable an operative date of 1 July. Over the past four years there has only been three days difference in the date the decision was handed down.
The Commission has implemented a number of measures to ensure this KPI is met, including immediately after the conclusion of an annual wage review, starting the planning process for the next annual wage review and the provision of high quality internal and external research to inform the Expert Panel’s work.
For further information see Setting the minimum wage.
Financial reports lodged under the Registered Organisations Act assessed
The KPI to assess 95 per cent of financial reports lodged under the Fair Work (Registered Organisations) Act 2009 (Registered Organisations Act) for compliance within 40 working days was a new addition to the Portfolio Budget Statements in 2013–14. Accordingly, trend information cannot be discussed.
In 2013–14 the Commission did not meet this KPI. The performance result in relation to this KPI was a consequence of the unique but very large additional workload arising from the requirement in the Fair Work (Registered Organisations) Amendment Act 2012 (RO Amendment Act) that each registered organisation amend its rules by 1 January 2014. To maximise compliance by registered organisations with the RO Amendment Act, resources had to be diverted to this work.
A further contributing factor was that the Commission experienced an unprecedented increase in the number of inquiries and investigations commenced following the HSU investigation and subsequent Federal Court proceedings.
As these increases were mostly of a one-off nature they are likely to be self-correcting in the subsequent year. However, further measures have been introduced to mitigate the problem including strategies such as implementing a risk-based approach to the assessment of financial reports.
For further information see Regulating registered organisations.