Military Order: pay to keep staff
by
Geoffrey Barker
Key Points- The government is prepared to offer retention bonuses to key military servicemen and woman
- Pilots, who are regularity lured away by civilian aviation companies, are a particular concern.
The government has told service chiefs to offer key military personnel whatever pay and conditions it takes to ensure that they do not resign to accept lucrative private sector jobs.
Deeply concerned by resignations of skilled tradesmen and technicians, Defense Minister Brendon Nelson is understood to have told the navy, army and air force chiefs that it is cheaper to offer premium to hold key people that to try to recruit new ones.
While he is not giving the service chiefs a blank cheque, he has made it clear that on a case-by-case basis he wants them to find out what pay conditions and postings would ensure key personal stay.
His move come as federal cabinet was signing off on the first $20 billion-plus defense budget, which will contain substantial new funds to hold key personal.
Dr Nelson has acknowledged that the present defense budget even with a guaranteed 3 per cent real annual increase to 2016, will not be sufficient to pay for the new weapons systems and cover rising costs.
He has called proposed forward expenditure "minimalist" and said the public could expect the government to make provision for extra expenditure - as it has done for the C-17 heavy transport aircraft and the $6 billion Super Hornet jet fighter acquisitions.
But his immediate concern is the retention of key defense staff who are being lured away from the military life by higher salaries and better conditions offered by a booming private sector desperate for skilled tradesmen and technicians.
Of particular concern are pilots who are regularly lured away by civilian aviation companies, and key personnel required to operate Australia's Collins-class submarines. It is understood that Collins-class submarine sea-days had to be cut by up to 30 per cent due to crew shortages.
While Dr Nelson is confident the army will be able to recruit sufficient personnel to fill two extra infantry battalions, he is understood to be concerned about its ability to retain engineering plant operators, construction supervisors and certain tradespeople.
Earlier this week he announced the army had started to pay soldiers two types of retention bonuses as part of a $1 billion retention and recruitment initiative included in last years budget.
He said the bonuses were targeted financial incentives to employment groups and to individual soldiers with high-value skills required for the hardened and networked army and enhanced land initiatives.
One set of bonuses to be offered this year and next year, provides an initial retention payment of $10,000 followed by bonuses of $30,000 for three years additional service for selected ranks. Some 5000 army personnel are potentially eligible this year and 1600 will be next year. Further to these, retention bonuses of up to $25,000 for two years additional service will be offered this year to 380 army personnel in designated critical employment categories.
Dr Nelson has said retention bonuses will be worth $193.5 million over the next seven years and that they will be used as short-term measures until other reforms are in place.