Other payments or changes should not be made or taken effect until the new enterprise agreements are approved by the Fair Work Commission and officially come into force. This includes the corresponding payments under each of the new enterprise agreements (for more information on these payments, see Appendix 3). Figure 1 below shows how the MFD would be calculated for a hospital with a salary base of $100,000. DFM indexation, considered a DFM indexation, is calculated on the basis of the corresponding salaries at the time of the expiry of the prior enterprise agreement. DFM compounds at a rate of 2.5% per year after that. The former physician enterprise agreements have reached their nominal expiry date of March 30, 2017, with the last annual salary increases to be paid under these agreements coming into effect from the first full pay period from December 1, 2015. Any public hospital or public health service that does not believe that the funding it receives reflects the cost to which it is exposed to implement the „new” results of the enterprise agreement may submit its file to the Department for review. (First, public hospitals and health services should do their own calculations, with MFDs calculated according to the lines described in the example above.) The ministry will verify these local calculations on request. The funding allowance for the impact of salary increases and other changes in the 2017-18 fiscal year is provided by a certain grant. The current effects of these increases and subsequent salary conditions will be incorporated into hospital/public health care budgets from 2018/2019. For the current business negotiation cycle (2015-2017), the department, in its budget modelling, referred more directly to the high staff profile of each public hospital or health service than in previous cycles, where budget modelling focused more on „whole sector profiles.” This will eliminate some of the most serious „swings and roundabouts” that could have resulted from the previous approach.
However, this funding approach remains in its overall „output-based” nature. The proposed new enterprise agreements provide for four annual wage increases of 3% for the first full salary periods, which will begin on January 1, 2018, January 1, 2019, January 1, 2020 and January 1, 2021. An additional salary increase of 6% is also due from the first full pay period from or after 1 January 2018, so that the overall wage increase of 9% must be paid from that date. Similarly, a specialist in political groups who makes appointments at several hospitals or public health services is entitled to a registration payment from each of the public hospitals or health services that employ them. Again, it is estimated that such a physician could receive registration payments totalling more than $3,500. As you know, an agreement in principle has been reached with the Australian Medical Association Victoria Limited on the terms of new four-year contracts for physicians in training and (separately) medical specialists. This regulation in principle was defined in an agreement signed by all parties to the negotiations in December 2017.1 The parties have developed new enterprise agreements to reflect the agreed terms. The new enterprise agreements have a nominal expiry date of December 31, 2021. Public hospitals and health services designated as employers in the new enterprise agreements are listed in Schedule 1 and Appendix 2. The department distributes the credits on the basis of all FTEs reported by each public hospital and health service, through monthly extracts presented to all minimum wage data.