2016 PSA annual and financial report

Congress 2016 approved our annual and financial report, detailing both our activity over the previous 12 months, and our financial position.

2016 PSA annual and financial reports

The annual and financial reports can be downloaded here.

Presentation of the 2016 annual report

At Congress 2016, PSA president Mike Tana gave a short presentation on the annual report.

annual report 1At the core of everything we do are our four strategic goals: Transforming our Workplaces, Building our Union, Stronger Public & Community Services and Equal Pay.

Each goal has an end point we plan to reach by 2024, and is further broken down into steps to reach in the intervening years.

The PSA Executive Board reviewed and refreshed these at the end of last year, and we’re confident that we’re on the right track.

Supporting each of these goals, and woven through them, is our commitment to Te Tiriti o Waitangi.

annual report 2At a time when many of our sister unions across the country are shrinking, I’m particularly proud that we’ve now grown three years in a row.

This has been challenging – our public service and state sectors in particular have been subject to significant restructuring and redundancies in recent years, while our local government sector faces outsourcing and contracting out, our district health board sector is under tremendous budget pressures and our community public services members face often unstable and insecure contracting environments.

That we have managed to grow despite these difficulties is a credit to the hard work of our 3000+ delegates who are the beating heart of our union in our workplaces. By making the PSA an active and visible part of the workplace, by creating strong union cultures, and by taking that step and actually asking people to join together with us, we have managed to continually increase our numbers.

annual report 3The public service and district health board sectors continue to be our largest, together making up nearly two thirds of our membership.

Following our successful merger with the Southern Local Government Officers’ Union last year, our local government sector grew significantly, and on current trends will overtake the state sector and become our third largest sector before the end of this year.

Our real success story as a union in the last 12 months has been the community public services sector. On the back of a significant focus on recruitment, combined with some real wins in union member-only benefits and the in-between travel settlement, our CPS sector grew by 15% in the year to 1 April 2016, and we’ve grown by an additional 6.5% in the five months since.

Our membership continues to be overwhelmingly women, reflecting the sectors in which we organise.

annual report 4Building our union isn’t simply about growing our membership numbers. Growing strength also means developing our delegates, the beating heart of our union.

In the last 12 months, more than 900 delegates attended one of our three formal training courses around the country. These three courses – an introductory three-day workshop, a more advanced three day training, and a one-day bicultural unionism session – provide delegates with the skills and knowledge that we need to help our union thrive.

Additionally, many more members attended specific training, from training given to bargaining teams prior to entering negotiations, to leadership development programmes run by our youth and women’s networks, and more.

As you can see from this map, the wide spread of our delegate development programme is a strength of the PSA. No matter where you live, there will be an opportunity to attend training.

annual report 5You might recognise a slight change in name for our strategic agenda – formerly Transforming the Workplace, it is now known as Transforming Our Workplaces (ToW), to better emphasise our shared ownership of our union activity in our workplaces.

Across the five strands of ToW, we continue to make good progress. The strands are used to structure our plans for each sector’s bargaining strategy, to analyse our activity in enterprises, and to discuss with employers our vision for the future of the working relationship.

As part of ToW, we are having success in pushing high-engagement strategies with employers across our sectors – sometimes as trials or pilots, other times as long-term commitments, and we will continue to push these where we have the relationships and the commitment to make them work.

annual report 6Much of our cross-union campaigning in the last two years has been on the issue of equal pay. Our nearly 800 equal pay advocates have done a great job raising the issue in workplaces, with politicians and in the media.

All of this hard work has had results – our pressure, alongside that from our sister unions and civil society groups, has forced the Government to come to the negotiating table with us and business representatives to agree equal pay principles, and to try to agree an equal pay rate for the care and support sector.

Nobody should be paid differently due to their gender. I’m proud that we’ve played a leading role in pushing for equal pay, and I’m excited to see what comes next in this space.

annual report 7Te Rūnanga o Ngā Toa Āwhina is the collective voice of our Māori members, building strong Māori leadership in our union.

I’m proud that Māori are leading the way in our union. While only 9.2% of our members are Māori, 16.7% of our delegates are. This means that Māori are significantly more likely to step up to delegate roles than others. Our Māori members are also more likely to be active in our union campaigns.

In the last year, we have started rolling out Maranga Mai, our training for rūnanga delegates. The initial feedback has been extremely positive, and we are glad to be able to include this targeted training in our delegate development programme.

Te Rūnanga continues to work closely with rūnanga in other unions through the Council of Trade Unions Te Kauae Kaimahi, and to build links with our indigenous cousins from Australia, and I’m glad we could welcome some of them to join us here today.

annual report 8Our largest sector remains the public service sector, with nearly 22,000 members.

Also this has slowed down slightly, restructuring continues to occur across the sector, creating an unstable working environment for PSA members in the public service.

A Government push for outsourcing remains a significant concern, with outsourced services often being provided by fewer staff on worse pay and conditions than when it was done in house, with poor results for those using the service.

The current front line of our battle with outsourcing is in the Ministry of Social Development, with the recent announcement that the functions provided by Child, Youth and Family and some other parts of the Ministry will be carved off into a new Ministry for Vulnerable Children Oranga Tamariki.

annual report 9For our DHB sector, the last year saw a significant dispute at the three Auckland district health boards during negotiations for a new collective agreement for the allied, public health and technical staff.

This dispute was one of the sharp edges brought forth because of the Government’s decision to underfund our public health system.

Likewise, our members working in mental health are facing a crisis, with workload pressures and understaffing reaching critical levels.

Our administrative and clerical members in particular have been active in the equal pay space, with a comprehensive equal pay claim forming part of the South Island DHBs admin and clerical bargaining.

annual report 10Restructuring is a large issue for our State Sector members, with the Crown Research Institutes in particular struggling for secure funding. Our members at Housing New Zealand have also been under considerable stress with huge change for their organisation.

Bargaining has been a challenge across much of the sector, and this was particularly true for the Aviation Security Service, where PSA members joined our union colleagues in E tū in voting to take industrial action earlier this year. Thankfully, the pressure from our strike ballots helped to produce an improved offer at mediation, and we have now signed a new collective agreement.

Many of our collective agreements in the state sector still do not include pay, and we are starting to use a recent legal precedent as leverage to get employers to negotiate on pay.

annual report 11The big news in our local government sector was our welcoming of 2000 new members through our merger with the Southern Local Government Officers’ Union, the union of people working in local government in Canterbury and Otago.

I want to recognise the significant work on both sides that went into making this merger so successful, and I’m pleased that as the national union of local government workers, we now have a stronger voice to advocate for the working lives of those of us working for councils across Aotearoa.

This year a large amount of work has gone into building links across our local government membership. Regional delegates forums were held, and a bi-monthly newsletter for local government members established.

Additionally, we recently held a hui for delegates at libraries across the country. Library staff are our biggest group of members in local government, and they have particular issues relating to equal pay and to the future of public libraries, so I’m glad they had a forum to discuss joint work on those issues.

annual report 12Our community public services sector is growing rapidly, which is great to see but also poses challenges. Currently, nearly half of all PSA collective agreements are in this sector.

This year we held the first ever CPS Emerging Leaders course, which helped to upskill a great group of new leadership in this sector. Many attendees have since gone on to join the sector committee, play an active role in our campaign for equal pay, and be great delegates in their workplaces, and I know some of them are here today.

As our membership increases, we are beginning to negotiate some first-ever collective agreements in a number of workplaces, which means more PSA members are now enjoying the benefits of being covered by a collective.

annual report 13Lastly, our networks continue to go from strength to strength.

Our Women’s network has led our union’s work on equal pay, and has built even greater leadership capacity amongst our women members.

PSA Youth, our largest network, has held successful leadership training, hui, and social events across the country with great results.

Out@PSA members helped to develop the NZ standard for inclusive workplaces, and showcased our union at the Auckland Pride Parade with a wonderful float about equal pay.

PSA Pasefika is starting to reinvigorate itself, with a new logo and a plan to advance the interests of our Pasefika union colleagues.

Our Social Workers Action Network has been leading the way in providing a voice for social workers, particularly in light of the changes at Child Youth and Family.

I’m proud of our union for developing these structures that unite our membership on a basis other than where we work, and know that in doing so we’re giving all of our members the best possible chance to feel a sense of ownership over our union.

Presentation of the 2016 financial report

At Congress 2016, PSA treasurer Andy Colwell gave a short presentation on the financial report.financial report 1Our statement of financial position has continued to indicate that the PSA is in a strong financial position with good liquidity and nothing to indicate any issue with continuing operations.

The PSA held cash reserves as at 31 March 2016 of $19,595,836 (2015 - $17,206,574) which amount to 97% (2015 – 86%) of our actual annual operating spend in the 2016 year. These cash reserves are enough to fund 11.6 months of operations (2015 – 10 months). This is well within the ideal range in which the PSA prefers to operate.

financial report 2The net operating surplus before tax of $1,534,139 represents a net surplus on income of 7%. Total income is up 7% on the previous year while expenses decreased by less than 1%.

The number of fee paying members as at 31 March 2016 was 58,743 compared to 56,578 at the end of the previous year.  Member numbers rose at the beginning of the year following the merger with the Southern Local Government Officers Union (SLGOU) on 1 April 2015, and have fluctuated since then. Final income from member subscriptions increased by 8.6%, which was expected in a fee increase year and with the merger with SLGOU.

Other comprehensive income shown in the financial report of a net $543,830 gain, relates to the net increase in market valuation of the PSA properties, and a transfer of cash from the SLGOU merger.  This comprehensive income is included in the financial report to fully reflect the impact of non-operating changes in the value of the PSA assets.

financial report 3The Statement of cash flows shows the actual cash that the PSA received and paid during the year into its operating bank accounts.  It excludes non-cash expenditure such as depreciation and movements in the liabilities and debtors of the Union.

The importance of the statement of cash flows is that it can identify potential problems if cash outflows consistently exceed cash inflows.    If this were the case, it would show that the PSA was using its reserves to maintain operations, which is not a sustainable practice.

This year net cash flows from operating activities are $2,390,887 (2015 - $1,331,098).  This change is mainly the result of the increase in cash received from member subscriptions and the transfer of cash from the merger with SLGOU.