,

Parliament of Australia

Research Service Background Paper

Absenteeism and the Australian Public Service

Constance LarmourDirectorEducation and Welfare Research Group

19 April 1990

This paper has been prepared for general distribution to Members of the Australian Parliament.The views expressed in the paper do not necessarily reflect those of the Research Service or ofany part of the Parliament. •The content of the paper may be attributed to the aiithor.

ISSN 1034-8107

© Commonwealth oi Australia 1990

Except to the extent ot the uses permitted under the Copyright Act 1968,no part of this publication may be reproduced or transmittea in any form or byany means, inclUding inlormalion storage and retrieval system, Without the priorwritten consent ot the Department of the Parliamentary library. Reproduction ispermined by Members of the Parliament ot the Commonwealth in the course ottheir official duties.

Published by the Department of the Parliamentary library, February 1990.

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This paper was undertaken as an Executive Development Schemeproject with the co-operation and backing of the Department ofFinance and the Department of the Parliamentary Library.My thanks to Sue Fergusson, Nick Mersiades, Tim Burke,Gary Hodgson, Julie Pettit, Jamie Pryor, Chris McLennnan andFiona Duncanson of the Department of Finance; Geoff Winter, DomGarreffa, Mark Peters, Carole Wiggan, Carol Kempner, JaneChapman, Diane Hynes, Sandra Bailey, Linda Calis, Paula O'Brien,Mary Lindsay, Bob Stewart and Dennis Argall of the ParliamentaryLibrary; Helen Bladen and Greg Bunnett of the Public ServiceCommission; Grant Doxey and Dave Roberts of the Department ofIndustrial Relations; Jordan Serena and Personnel Officers ofthe Personnel Practices Contact Group, and Mark Wooden of theNational Institute of Labour Studies.

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CONTENTS

EXECUTIVE SUMMARY

CONCLUSIONS AND RECOMMENDATIONS

INTRODUCTION

Objectives

The Need for Action?

The Structural Efficiency Principle

Review of Absenteeism

PROBLEMS OF DEFINITION

EXTENT OF ABSENTEEISM: RESEARCH AND SPECULATION

(a) Australia

(b) The Australian Public Service

Survey of Sick leave 1972-73

Is Absenteeism a Problem in the APS?

(c) Overseas

AUSTRALIAN PUBLIC SERVICE CONDITIONS

Sick Leave Entitlement in the APS

Special Leave Entitlement in the APS

Effect of Flextime

PROFILES OF ABSENTEES AND ABSENTEEISM

CAUSES OF ABSENCE: FACTORS AFFECTING ABILITY TO ATTEND

(a) Occupational health and safety

(b) Off-the-job accidents

(c) Alcohol and drug related problems

(d) Family responsibilities

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la

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CAUSES OF ABSENCE;

(a) Economic

FACTORS AFFECTING MOTIVATION TO ATTEND 24

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,

(b) Job satisfaction

(c) work norms/personal work ethic

(d) Industrial disputes

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27

28

AGE VARIABLES 29

INCENTIVE SCHEMES/ABSENCE CONTROLS 31

Carrots, Sticks or Good Management? 31

OTC 33

Case Studies of Incentive/Absence Control Schemes 34

Overseas 34

Australia 35

Effectiveness of Absence Control Programs 37

Awards with Provisions for Payment of Unused Sick Leave 39

APPENDIX 1

APPENDIX 2

APPENDIX 3

APPENDIX 4

Structural Efficiency Principle - Excerpt fromNational Wage Case Decision 1989. 43

North American Survey and Anecdotal Evidence onthe Benefits of Employer Provided Child Care. 45

Age Retirement - Use of Sick Leave SurveyResults. 47

Case Studies. 48

(a) Absences of Teachers in State High SchoolAustralia. 48

(b) Incentive Scheme for Teachers - U.S. 48

APPENDIX 5

ENDNOTES

REFERENCES

Sources of Information - Departments,Associations and Companies. 50

51

56

EXECUTIVE SUMMARY

This paper looks at the findings of different research studies onabsenteeism with the aim of identifying options and needs whichrelate to absenteeism in the Australian Public Service (APS).Differences of definition and measurement are apparent in thesestudies. Some perspective is given by studies of absenteeism inother countries.

In attempts to gauge the extent of labour absence, and ofvoluntary absenteeism in Australia, researchers have based theirconclusions or estimates on a 1977 study by Harkness andKrupinski, the 1983 Australian Bureau of Statistics HealthSurvey and the 1972-73 Survey of the Incidence of Sick Leave inthe Australian Public Service. Harkness and Krupinski found anoverall absence rate of 4% for the Australian workforce in asurvey which covered absences attributed to sickness andindustrial or other accidents, but excluded other forms of leaveand industrial dispute absences. The Australian Bureau ofStatistics found in 1983 that 2.6% of the workforce was absent onanyone day as a result of illness. Estimates of the amount ofvoluntary and avoidable absence - the 'sickie' - vary but rangeup to one day in every five of all work absence.

Public servants are perceived to have generous sick leaveentitlements and to take advantage of these. In 1972-73 theaverage number of absences on sick leave in the APS was 3.7% or 8days. No current service-wide figures exist. Despite theapparent comparative safety of the work undertaken, and the wideavailability of flextime provisions, it seems likely that sickleave absence figures may be higher than in 1972-73.

The 1988 and 1989 decisions of the Industrial RelationsCommission listed measures to be considered to effect awardrestructuring and to increase productivity by enhancingflexibility and efficiency in the work place. One such measurewas a suggested review of sick leave, to be undertaken initiallyin the Department of Social Security, to identify the incidenceof and reasons for absenteeism, and to consider what action couldbe taken to reduce this. This Review will provide moreinformation on current use of sick leave, but a service-widesurvey, which can provide a comparison with the 1972-73 survey,is also needed.

Because of the difficulty in differentiating between genuine andnon-genuine sickness, it is not possible to pinpoint accuratelythe percentage of working time lost through non-genuine leave or'sickie' taking. It is possible to predict higher absence rateson particular days of the week and at different times of theyear, and to identify some characteristics of employees which areoften associated with higher rates of labour absence.

Ability to attend is affected by work related and non-workrelated illnesses and accidents, other occupational health andsafety factors, transport problems, alcohol and drug relatedproblems and family responsibilities. Some of these factors areoutside of the control of management, but other factors havescope for management intervention and a resulting positiveresponse. Examples are the industrial programs to cope withalcohol and drug related problems, workplace safety and theprovision of flexible working hours and permanent part-time work.

Motivation to attend work involves factors such as jobsatisfaction, personal work ethic, work group norms, co-workerrelationships, organisational commitment, incentives and absencecontrols. These factors are also greatly affected by managementpolicies and styles of supervision. Case studies are reported tohighlight successful practices, and recognition given to the needto support and encourage the majority of public servants andworkers who do not abuse sick leave entitlements.

The practice of using up sick leave credits before retirement isexamined and the results of a survey undertaken with theco-operation of the Personnel Practices Contact Group isreported. Payment or part-payment of unused sick leave isconsidered and recommended as an option to reduce this practice.

It is noted that many or most of the factors which tend toincrease absenteeism can be addressed by good managementpractices. Incentive schemes and absence controls arediscussed, and the following conclusions are presented forconsideration.

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6 .

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CONCLUSIONS AND RECOMMENDATIONS

That Personnel Sections in all APS departments should berequired to set up systems to record and facilitateaccess to data on use of sick leave, special leave andother types of leave.

That from the above data, regular surveys of theincidence of sick leave in the APS should be made tomonitor the progress of productivity proposals under theStructural Efficiency Principle (SEP).

That a survey of the incidence of sick leave in the APSfor the period May 1990 to April 1991 be undertakenusing the same terms of reference as the 1972-73 survey,and that comparative findings should be reported.

That the role of immediate supervisors in monitoring andcounselling in matters of attendance should bestrengthened and that supervisors should receivetraining for this role.

That managers and supervisors should ensure thatflextime and other conditions of service be administeredwith the aim of increasing morale and productivity.

That employees should be consulted and involved indeveloping programs and strategies to provide greaterjob satisfaction, improved productivity and reducedabsenteeism.

That care should be taken in the development of theseprograms to ensure that the majority of employees who donot abuse sick leave entitlements do not becomedisaffected or feel threatened with the removal of theexisting 'safety net' of sick leave provisions.

8. That use of leave, including sick leave and specialleave, should form a part of performance appraisal andindividual development programs, and that individualrecords on performance should include a more detailedsection on attendance, including number of days and typeof leave, and use of flextime.

9. That departments should extend provision for permanentpart-time work and flexible 'standard days' and haveregard to their obligations to workers with familyresponsibilities. Progress in the ACTU test case onparental leave and special family leave should bemonitored closely and costs and feasibility of increasedaccess to unpaid leave should be investigated.

10. That occupational health and safety concerns ofemployees should continue to be investigated andaddressed.

11. That supervisors, and employees with attendanceproblems, should be encouraged to make use of programssuch as those provided by the Industrial ProgramService.

12. That the growing practice of payment or part payment ofunused sick leave credits in industry should bemonitored.

13. That the Overseas Telecommunications Commission be askedto provide data on the use of sick leave before andafter the introduction of the 20% entitlement toaccumulated sick leave on retirement.

14. That a similar scheme (such as payment of 20 - 25 % ofunused sick leave) within the APS should be initiatedfor a trial period in terms of a SEP restructuringexercise.

1

ABSENTEEISM AND THE AUSTRALIAN PUBLIC SERVICE

INTRODUCTION

Objectives

By reviewing current research on absenteeism, particularly thathaving relevance to the Australian Public Service (APS), thispaper aims to draw together what is known, to highlight areaswhere further studies are needed, and to identify successfulstrategies in combating the misuse of sick leave.

Much available research concentrates on the problem of voluntaryor non-genuine sick leave, commonly known in Australia as 'thesickie'. This type of leave taking appears more of a problem inmany European countries than in Australia, but a culture ofcondoning the practice of taking an occasional 'sickie' doesappear evident in sections of the Australian work force. Somecurrent studies suggest that the practice is more prevalent inthe Australian public service than in the Australian work forcegenerally, and this paper reviews the evidence presented.

The Need for Action?

The entitlement to sick leave is a hard-won and valued conditionof service in Australia and overseas, and not least in theAustralian Public Service. It is a safety net for the bad luckin the form of illness or accident that can happen to anyone. Ithas long been.regarded as a right rather than a privilege, and itwould appear unwise, if not impossible, in industrial relationsterms to attempt to remove or reduce. the existing provisions.That the entitlement to sick leave is abused to some extent isnot disputed, nor is the fact that absenteeism can varysignificantly between different work areas. However, in seekingto reduce absenteeism or voluntary absence in the AustralianPublic Service, departments must be sensitive to the need for

. measures which do not act as disincentives to the majority ofemployees who do not abuse the sick leave entitlement.

2

The Structural Efficiency Principle

In its August 1988 decision, the Australian Industrial RelationsCommission set the structural efficiency principle (SEP) as thecentral element in a new system of wage fixation. The object wasto give incentive and scope to the parties to examine andmodernise their awards so as to better meet the competitiverequirements of industryl.

The 1988 decision listed measures to be considered includingensuring that working patterns and arrangements enhanceflexibility and the efficiency of the industry2.

In its February 1989 review decision, the Commission made itclear that SEP exercises should canvass a broad agenda, and speltout some of the efficiency measures it considered appropriate forconsideration. These stressed greater flexibility in arrangementof working conditions such as hours of work, and included asuggested review of sick leave provisions with the aim ofavoiding misuse.

Review of Absenteeism

In 1987, in the context of the 4% second tier pay increases foroffice based and related classifications, agreement was reachedbetween the public sector unions (ACOA, APSA, FCU) and theGovernment to undertake a review of absenteeism, initially in the

. Department of Social Security. It was considered that theimproved work environment resulting from increased staff mobilityat the workplace and flexibility, together with greater jobsatisfaction for staff, should assist in reducing the incidenceof absenteeism3 .

An interdepartmental committee (IDC), set up in that year, 1987,with representatives from the Department of Industrial Relations(DIR), Department of Finance and Department of Social Security(DSS) had concluded that agreement should be sought with theunions that they would work together with Departments on ways toreduce absenteeism.

The Review of Absenteeism Working Party met first on 26 April1988, with representatives from the Department of SocialSecurity, the Public Service Commission and the public sectorunions. The terms of reference for the Review of Absenteeismwere:

to examine the extent and causes of absenteeism, initiallyin the Department of Social Security, and

to make recommendations on an agreed approach to reducingthe level of absenteeism. .

3

In particular the Review was to:

1. Identify the incidence of absenteeism in the Departmentbeing examined, including any variations between areas,and to compare this level of absenteeism to generalcommunity levels.

2. Identify the possible reasons for absenteeism includingstaff morale, staff participation in decision-making,types and levels of accidents, stress levels, thepublic contact environment, any requirements to workexcessive paid or unpaid extra hours and the impact ofparental responsibilities.

3. Identify the current policies and practices of theDepartment to absenteeism and what action, if any, hasbeen taken towards reducing the level of absenteeism.

4. Identify and examine the appropriateness of existingpolicies and practices relating to absenteeism.

Stage 1 of the Review was conducted by the Australian Bureau ofStatistics and involved a sample of 10% of the 17,000 employeesof the DSS and their leave usage. The Interim Report on Stage 1by the consultants (the Australian Bureau of Statistics) has beenconsidered by the Working Party which has decided not to releaseany findings until the completion of Stage 2 of the Review .because of their 'sensitivity' and the possibilities ofmisinterpretation by other agencies. Stage 1 data should revealthe overall level of absenteeism in the department and perhapsalso indicate variations in locations or work areas which willhave implications for management.

Stage 2 of the Review involves a different sample but with thesame break up of age, classification, location and sex andentails the development, processing and analysis of aquestionnaire designed to elicit the reasons for absences. Thequestionnaire will seek to discover attitudes to work, conditionsand management, as well as factors such as familyresponsibilities, peer attitudes, interpersonal relationships andavailability of leave, including special leave. However, unlessquestions on the reasons for taking sick or special leave includevoluntary absence, it is unlikely that the resulting data will besufficiently comprehensive to include an accurate assessment of'misuse of leave'.

As the second stage of wage increases for the public service thisyear is contingent on progress being made on the agreed measuresto improve efficiency (including the review of absenteeism andthe identification of measures to decrease its incidence), thelength of the review process is causing concern. However it isimportant that the data produced by the Review is sound and canlead to an accurate assessment of the effectiveness of policiesand practices relating to absenteeism. It seems likely thatbefore major new policies can be implemented to reduceabsenteeism, a more widespread survey of current sick leave andspecial leave usage in the Australian Public Service will berequired.

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PROBLEMS OF DEFINITION

According to the Shorter Oxford English Dictionary absenteeism is'the practice or condition of being absent,4, a definition whichperhaps embraces both the state of absence and the suggestion ofa conscious decision being made.

The 'absenteeism' being investigated by the DSS Review does notappear to have been defined. The Review is seeking to quantify,and assess the reasons for, sick leave and special leave, butwhether or not abuse of leave will be considered remains asensitive question. No definition has been issued by theIndustrial Relations Commission to cover such studies.

Many research papers have been written on the problems and causesof absenteeism. In many cases these are studies of 'labourabsence'. Often, though, the term 'absenteeism' is used todenote absence which is both 'avoidable' and 'voluntary' - inother words as a synonym for 'the sickie,5.

In his paper, A Taxonomy of Measures of Absenteeism, R.G. Ensleyindicates some of the problems of definition and measurementwhich exist in the current studies of absenteeism:

Absenteeism has been studied for several decades. Duringthat time many measures of absenteeism have been devised.The profusion of measures contributes to the difficultiesfaced by business practitioners and researchers who seek tostudy absenteeism. These difficulties are increased whenmeasures are not clearly defined ... The third source ofconfusion [is] the distinction between voluntary andinvoluntary absence ...

Ensley identifies 25 different measures of absenteeism. Heclaims that many writers concentrate on attempts to measurevoluntary absenteeism but ignore problems associated with aworkable distinction between 'voluntary' and 'involuntary':

A particular problem in distinguishing between involuntaryand voluntary absenteeism is the difficulty of definingsickness 6 •

This is demonstrated by the ABS finding in its nation-wide surveyof the health of Australians in 1983 that, during a two-weekperiod, 61.9% of all employed persons had experienced someillness condition, but that only 7.5% took any time off work as aresult7 .

Nor is it possible to differentiate between 'certificated' (i.e.with an accompanying medical certificate) and 'uncertificated'sick leave as a measure of genuine illness as opposed to 'thesickie'. As has been pointed out8 , it is often not difficult toobtain a medical certificate for non-existing or non-seriousconditions. On the other hand, doctors now rarely make housecalls in Australia, and a person with an acute but known illnesssuch as influenza may recover more quickly without a visit to adoctor or hospital.

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That voluntary absenteeism or 'sickie' taking occurs, and thatthere is a culture of acceptance of this practice within theAustralian workforce including (and some researchers considerespecially in) the Australian Public Service, are widely heldbeliefs 9 . Perhaps sharing this belief, the Industrial RelationsCommission has identified the reduction of this type of voluntaryabsence on paid sick leave as one way of achieving greaterefficiency throughout the public sector.

In reviewing the literature on labour absence and absenteeism,statistics and findings will be quoted in this paper. This isnot to suggest that the statistics quoted are either comparableor conclusive, but merely to indicate the perceptions ofabsenteeism which exist.

This paper will not attempt a definitive break down of what isvoluntary and avoidable labour absence attributed to sick leave.Nor will it try to distinguish between genuine illness warrantingabsence anq non-serious, imaginary or non-existent illness.Rather it will look at some reasons for such absence which havebeen identified in the research to date on absenteeism, and willconsider the options for reducing these types of absences.

EXTENT OF ABSENTEEISM:

(a) Australia

RESEARCH AND SPECULATION

6

In October 1973 and again in October 1976 the Human RelationsBranch of the then Department of Productivity carried out surveysof absences in manufacturing and non-manufacturing workestablishments throughout Australia lO . The October 1976 surveyfound an overall absence rate of 4.0%, a slightly but notsignificantly lower rate than for 1973. Thus on average thesurvey found that in anyone year, 4% of the Australian workforcewould be away from work on any day as a result of absenteeism,sickness and accidents, and another 0.23% would be absent becauseof industrial disputation (a total of 4.23 % or 57.2 million daysin 1976)11. This study has been quoted widely and forms a basisfor much subsequent Australian research.

Using these figures, Crawford and Volard in a 1980 study soughtto produce estimates of 'temporary non-approved work absence' inAustralia. Of these absences, which included sick leave andindustrial disputes, Crawford and Volard attributed 18.9 % to'the sickie' or 'absenteeism' and another 17.8 % to alcohol andother drug abuse. This Crawford and Volard figure of 18.9% oftemporary non-approved work absences attributed to 'the sickie'has been often quoted since publication of their findings in1981, but this is probably because little hard data is available.Such a figure would mean that 0.8 % of the workforce could beexpected to be 'taking a sickie' on anyone day. The authorsadmit that the figure of 18.9 % was what was left after absenceswere attributed to other factors such as disease (respiratory,circulatory, musculoskeletal or nervous) and other sicknesses,accidents, industrial disputes and substance abuse 12 . The term'non-approved work absence' can be misleading as sick leave isusually approved, albeit usually after the event.

According to the 1983 ABS health survey, overall, on anyone day2.6 per cent of the workforce was estimated to be absent fromwork as a result of illness. The most common types of illnesseswere headaches, minor respiratory illnesses such as the commoncold or influenza, and complaints of the digestive system. Themost common causes of sick leave absences were injuries,influenza and spinal and back problems 13 . The occupation whichwas most absence prone was that of miners, while the leastabsence prone were service workers, and administrative, executiveand managerial workers.

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Estimates of temporary non-approved work absence in Australiafrom Crawford and Volard, 'Work Absence in industrialisedsocieties: the Australian case' 1980.

"09'''0

-0

'Other'sicknesses

9.3%

!ndustrial disputes

5.5%

Other drug abus~

4.0%

1.>'0'9<

o

"The sickle"

18.9%

Alcohol abuse

13.8%

Respiratorydiseases

15.5%

OCher, oH-lhe·job

accidents

10.0%'"-;.'%,..:> "'0

--.:I 0".g ~"

""

Musculoskeletaldiseases

3.8%

Industrialaccidents

6.3%

",0\0,,'0'

8

(b) Australian Public Service

Survey of Sick Leave 1972-73:

In 1974 the Public Service Board reported its survey of theincidence of sick leave in the Australian Public Service for theperiod May 1972-April 1973. This survey found that an average ofeight days sick leave was taken by all staff. Of this an averageof 6.7 days was on full pay. Male staff averaged 7.4 days (6.5days on full pay), and female staff averaged 9.9 days (with 7.5days on full pay). A steady increase in leave taken with age wasapparent for men over 39 years, but for women the averageremained much the same (about 9.9 days) for all age groups.Permanent officers averaged 7.6 days (males 7.0 days, females 9.7days) while temporary employees averaged 8.8 days (males 7.9days, females 9.5 days).

During the year, 8.8% of all staff took no sick leave (10.1 % ofmales and 5.1% of females). With increasing age the proportionsof employees taking no uncertificated leave rose dramatically(from 7.4% for the under 18 age group to 22.2% for the 55-59 agegroup). The proportion taking no certificated leave was steadyover all age groups. During the year 46% of staff took fewerthan 5 days sick leave14 .

Is Absenteeism a Problem in the APS?

A widely held perception is that public servants tend to takemore sick leave than other employees. For example, an editorialin the Australian of 1 November 1989, citing no sources, allegedthat public servants take 16.4 days sick leave per year onaverage compared with the industry average of 4 days per year.More reliable research,15 however, points to statistical evidencethat public administration is second only to mining in terms ofabsence-prone occupations, ahead of transport and storage andother 'heavy' occupations.

No current figures are readily available and personnel areas ofpublic service departments report that their computers systemsare not yet geared to provide breakdowns of leave taking. Formost departments, any coilection of personnel statistics on thetaking of sick and special leave, for example, still involves amanual search of the files of individual officers 16 . A SeniorResearch Fellow at the National Institute of Labour Studies, MarkWooden, has commented:

... it is notoriously difficult to obtain data on absencelevels from public sector agencies (which undoubtedlyserves to reinforce further the perception that there isa problem)17.

Wooden concedes that what figures exist do not provide much of aguide to the extent of any difference between the public andprivate sector. Indeed, he quotes an absence rate of 3.5 % forpublic administration (one of the public sector areas which heconsiders), which is only marginally above the non-manufacturingindustry rates discovered in the 1977 Harkness and Krupinskistudy (3.4 %). One problem, of course, is that many of the

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assumptions are drawn from the 1983 Health Survey and comparisonsare made with the 1977 absence study. The conclusion Wooden hasreached is:

Data on illness related absence from work indicates thatlabour absence is particularly pronounced in industriesdominated by public sector employment. This conclusionholds after controlling for a number of demographic andemployment related influences usually thought to beassociated with non-attendance at work, and even afterthe imposition of the extreme assumption that allabsence that is associated with a medical consultationor with the taking of medication is involuntary. Giventhe implausibility that the observed inter-industrydifferences can be explained by uncontrolled variationsin the healthiness of work environments, it appearslikely that the high levels of public sector absenteeismmust reflect factors such as low job satisfaction, moregenerous sick leave entitlements and conditionssurrounding the use of such entitlements, greater jobsecurity, less effective control mechanisms, and lesscompetitive pressures, and hence greater inefficiency,within the public sector. Investigation of the relativeimportance of these alternative explanations awaitsfurther research18 .

One theory of absenteeism points to its availability as a causeof the problem, noting that the amount of leave taken oftenrelates to the amount of the entitlement. In identifying 'moregenerous' sick leave entitlements as one of the reasonspredisposing public servants to greater levels ofabsenteeism, Wooden cites a 1984 survey of State awards whichshowed only 18%, many of which were awards covering statutoryauthorities or local government employees, as providing more than10 days sick leave.

What information we have indicates that some sections of thepublic service, at least, do have higher sick leave rates thanindustry generally or in comparison with other public serviceareas. For example, the average number of days per year taken onsick leave for the Commonwealth Employment Service in 1986-87 was10.78 days, although the A.C.T. offices averaged the 16.4 dayssick leave quoted by the Australian editorial referred toabove. 19 During this period the CES was being restructured, andthe ACT Office faced a merger with N.S.W. Similarly, other highstress areas or departments such as the Taxation Office orcounter areas of the Department of Social Security are thought tohave markedly higher sick leave rates than the service-wideaverage. A 1988 review of sick leave usage in the centraloffice of the Department of Finance (which is considered alow-leave department) found a sick leave rate of 3.5% or 7 daysaverage, excluding compensation leave 20.

10

Without the benefit of up to date and reliable statistics, it isimpossible to draw any conclusions as to the extent of theproblem of absenteeism in the Australian Public Service or evento assert that the average amount of sick leave taken hasincreased since the 1972-73 survey. For the purposes of theStructural Efficiency Principle measures to be taken bydepartments, Personnel Sections should be advised in advance thatthese statistics will be required and that they should set uptheir systems accordingly.

Conclusions:

Personnel Sections in all APS departments should berequired to set up systems to record and facilitateaccess to data on usage of sick leave, special leave andother types of leave.

From the above data, regular surveys of the incidence ofsick leave in the APS should be made to monitor theprogress of productivity proposals under the StructuralEfficiency principle.

A survey of the incidence of sick leave in the APS forthe period May 1990 to April 1991 should be undertakenusing the same terms of reference as the 1972-73 survey,and the comparative findings should be reported.

(c) Overseas

Absenteeism is a problem of international concern. Again it isdifficult to make statistically valid comparisons but it isinteresting to note the perceptions presented in various studiesof lab9ur absence in other countries. One comparative study,reported in a 1978 Monthly Labour Review, has placed Australianabsenteeism rates as marginally higher than those of the UnitedStates, over all, but substantially lower than those of WesternEurope. In comparison with the October 1976 absenteeism rate of4 per cent in Australia, the study cited a rate of 3.5 per centin the U.S., but 11 per cent in West Germany, 10 percent in theNetherlands and 15 per cent in Italy.21 Steers and Rhodes, 1984,allege that overall absence rates in Western Europe range from 14per cent in Italy to a low of one per cent in Switzerland, withFrance ranking as second to Italy in high absence rates. Theyquote a United Kingdom figure of 13.5 days lost per employee insick days per year (or over 300 million workdays). Yet anotherstudy on the U.K. states that a 1985 survey revealed that 11working days per capita in sickness absence were lost in aworking year. This study quoted a 'mean sickness rate' of 4.6per cent. Absences attributed to personal reasons or industrialdisputes were not included in these figures. 22 Different studiemeasure different things and so these rates may not be strictlycomparable. However it is clear that the problem is a verycostly one, as is shown by U.S. and Canadian studies especially.

11

Overseas research into factors affecting work attendancecomplements that done in Australia and is useful in helping toidentify management strategies to combat unnecessary absence.These comparative studies are also useful in putting theAustralian experience into perspective. A study on 'The SwedishEconomy' was featured in the Economist of 3 March 1990. In partthis report states:

On a typical day, one in every four workers is absentfrom his office or factory. About 10% of workers aresick, while 15% are looking after children, on studyleave, on holiday, or off for one of the 101 reasons forwhich they are entitled to take leave. It is littlewonder that Sweden is plagued by labour shortages.

In the past 50 years the Swedish labour force hasincreased by 30%, yet the total number of hours workedhas fallen by 15%. The formal working week is still 40hours, or about 1,800 a year - one of the longest inEurope ~ but the average Swede clocks up only 1,482hours, the fewest in any OEeD country. This is partlydue to the high rate of participation in the labourforce .•. As many as 86% of women with children tooyoung to go to school have jobs, compared with just 28%in Britain. Many of these work part time or need totake time off to look after their offspring, therebypulling down the average number of hours worked.

Though the so-called "laziness" of the Swedes may bepartly explained by the higher participation rate in thelabour force, absenteeism is also encouraged by Sweden'sgenerous social- security benefits and rules on parentaland educational leave. No other country smiles so muchupon working parents. After the birth of each child, amother and father are entitled to take 15 months' paidleave between between the two of them to look after thechild. The first 12 months are paid by the social­insurance system at 90% of normal pay, the final threemonths at a fixed rate. Parents can also take up to 60days' paid leave a year to look after a sick child underthe age of 12.

If the workers themselves are sick they are paid 100% oftheir normal salary from the first day of illness. Nodoctor's note is required for the first week and thereis no limit on the number of days' sick pay that aworker can claim each year. ,In fact, because of theway sick pay is calculated, shift workers may sometimesenjoy a higher net income by staying at home. Smallwonder that Swedish workers, who have the longest lifeexpectancy in Europe and look the healthiest, can alsoclaim to be the sickest.

12

The average Swedish worker was off sick for 26 days in1988, up from 18 in 1983. The average worker in theengineering industry was ill on 29 days, far more thanin any other country and well above Britain's 11 daysand West Germany's 18. Not only does this cost thegovernment dear in sickness benefits, it is alsodisruptive for employers. They can never be sure howmany workers will show up on any day, forcing them toemploy more workers than they strictly need.Absenteeism is one factor Swedish businessmen alwaysmention when they talk about shifting productionabroad . ..

The Swedish system of sick pay is much more open toabuse than in other countries. Not only is there nolimit on the number of days that can be claimed but sickpay is doled out by the state insurance system, not bythe company as in America. So claims are badlymonitored. Workers claim their sick pay from anonymoussocial-security offices, where often they need onlyspeak to an answering machine. One study discoveredthat 10% of workers who had claimed sickness benefit hadactually been working (either in their usual job or in asecond job) on those days. And because Sweden has sucha tight labour market, workers have little fear oflosing their jobs ...

To crack down on abuses of absenteeism and help relievelabour shortages, the Social Democratic government wasplanning to make employers responsible for sicknessbenefi t for the first two weeks of illness. Firmswould then have a greater incentive to monitor claims,while workers would perhaps be more reluctant to cheattheir own company than the state. In a trial carriedout by the employers' federation, absenteeism was cut byas much as a quarter when firms administered sicknesspay.

13

AUSTRALIAN PUBLIC SERVICE CONDITIONS

Sick Leave Entitlement in the APS

Full-time Commonwealth Public Servants in Australia are noweligible for two weeks sick leave on full-pay and two weeks sickleave on half pay in each year. Sick leave credits accumulatewithout limitation throughout the period of service.Accordingly, the emphasis in the Public Service is that ofgreatest benefit for long-serving and conscientious staff. Up tofive days paid sick leave, with a maximum of three consecutivedays, may be taken without a medical certificate in anyone year.At the end of the period with the Public Service, no payment inlieu is made for unused credits of sick leave23 .

The .first provision of sick leave for Commonwealth publicservants was by means of the 1903 regulations which provided whatmust have been considered generous arrangements for that era.Leave was provided on the basis of a triennial period, and ascale of full pay and half pay entitlements applied, depending onlength of service. For example officers with more than 10 yearsservice could be granted up to three months sick leave on fullpay over the three years. Additional provisions for half pay,one third pay and leave without pay could apply in cases ofneed.

In 1926 sick leave provisions were reviewed by the Public ServiceArbitrator who questioned the principle on which the grant ofsick leave was made. His point was that:

Primarily the employer pays for services rendered. If byreason of sickness the employee does not render service whyshould the employer be bound to continue payment?

Having decided that an obligation to provide sick leave didexist, the Arbitrator decided that the amount should be 12 dayson full pay, 8 days on half pay and 6 days on one third pay.Leave could accumulate but the most which would be taken in anycontinuous absence was set at 52 weeks. An officer who was to beretired on the grounds of invalidity was entitled to firstexhaust all accumulated credits of sick leave. In 1932 thisprovision was limited to the taking of only up to 52 weekscredited leave before invalidity retirement. A more detailedhistory of Sick Leave provisions in the Australian Public Serviceis appended to the 1972-73 Public Service Board survey24.

14

Provisions in private industry were far less generous than thosefor public servants in earlier years. Five days paid sick leavewas introduced in the metal trades and metal industries awards in1952. This provision remained unchanged until the Metal IndustryAward, July 1971, which extended sick leave provision foremployees with more than one year's service to eight days, andaccrual rights were extended from one year to four years (i.e. upto 32 days). From the 70s the number of days of paid sick leaveentitlements, and the length of accrual time have beenprogressivelyextended25 . Many industry awards now contain sickleave provisions which exceed those applicable in the publicsector26 . The generalisation that Public Service sick leaveentitlements are more generous is probably becoming lessaccurate.

Special Leave Entitlement in the APS

A total of three days special leave in anyone year may begranted to permanent and temporary employees of the APS to coversuch contingencies as the illness of a spouse or dependants,moving house, emergency situations in the home, death of a familymember (in conjunction with bereavement leave), the funeral of arelative or friend, car accidents (half day), wildcat transportstrikes (half day), graduation ceremonies, departmental sportsdays, appointment as a polling official and interviews forenlistment in the defence forces or reserve forces.

Effect of Flextime

By March 1974 a significant number of departments had introducedtrial flexible working hours schemes, and the introduction offurther trials was suspended to enable the Public Service Boardto assess the various schemes then operating.

The Board estimated that, overall, because flexleave was used tocover short absences not previously taken as formal leave (latearrivals, visits to the doctor, extended lunch breaks etc.)productive time had increased by the equivalent of 15 minutes perofficer per week. Data from most departments showed a decrease(some a marked decrease) in the amount of non-certificated leavetaken under flexible working hours as compared with standardhours, e.g. the Department of the Prime Minister and Cabinetreported a 19% decrease in non-certificate sick leave for one dayor less. Several departments reported a decrease in the numberof applications for short-term recreation leave, with aconsequent reduction in the processing of applications inpersonnel records sections. The Department of Transport (CentralOffice, Melbourne) reported an overall drop in leave applicationsof 39.4% during the trial period as compared with the pre-trialperiod27 .

15

A later review of Flextime in the Australian Public Service wasundertaken in 1987. Although respondent departments tended toprovide qualitative rather than quantitative evaluations, thereview team was able to conclude that:

Service-wide, the benefits of flextime can be seen toclearly outweigh costs.

Savings directly attributed to flextime included reducedovertime, better use of capital equipment, and more efficient useof staff time. Many departments quantified these types ofsavings. Other benefits for public service operations wereidentified, including reduced sick leave, special leave and othershort term leave. The volume of support for the contention thatflextime led to decreases in both sick leave and overtime isillustrated by the graphs presented in the report (next page)28.

Conclusion:

That managers and supervisors should ensure thatflextime and other conditions of service be administeredwith the aim of increasing morale and productivity.

16

Responses to Flextime Survey: Departments and AuthoritiesReport on Flextime in the Australian Public Service, 1987.

Improves Recruitment/Retention

60

50

40

30

20

'0

oVes No No opinion

Effect on ovenime

No opinionNo e/feclDecreaseIncrease

o ,'------__

60

50

30

20

10

40

Effect on Sick leave

0+...1----_10

60

50

40

30

20

Increases Decreases No effeCl No opinion

Ertect on services to the public

60

50

40

30

20

, 0

oIncrease Decrease I No effect No opinion

17

PROFILES OF ABSENTEES AND ABSENTEEISM.

Although it is impossible to measure accurately the amount of'avoidable' or 'voluntary' absence, anecdotal evidence togetherwith patterns of absence suggest that some of the leave taken aspaid sick leave or paid special leave should be classified ratheras voluntary leave i.e. the 'sickie'. This problem is not ofcourse confined to the Public Service.

About 90% of all uncertificated sick leave in the Public Servicein 1972-73 was of one day'S duration. Monday and Fridays are thedays on which most sick leave is taken. This has held forsurveys of manufacturing and non-manufacturing industries and forthe public service. The Survey of the Incidence of Sick Leave inthe Australian Public Service 1972-73 found

Although major differences are evident in the days of theweek on which one and two day absences were taken, nosignificant differences were noted between certificated anduncertificated absences, or between men and women. 25.0% ofall one day absences were on F~idays, 23.8% on Mondays,16.8% on Tuesdays, 17.6% on Wednesdays, and 13.7% onThursdays. (3.1% were on Saturdays or Sundays ... )29.

All surveys found lower incidences of sick leave taken onSaturdays or Sundays where penalty rates applied.

A U.S. study on absence frequency, reported in the Journal ofApplied Psychology in 1983, found prior absenteeism to be astrong predictor of absenteeism30 . In detailing a N.S.W. casestudy on sick leave, Dawn Linklater reported that 20% of theemployees had taken 60% of the leave31 . Research in SouthAustralia showed that 30% of employees have 90-95% of allabsences, according to an executive of Work Health. 32 Similarly,a French study found that while 50% of French workers never missa single day of work, of the remainder over 80% take more than 40'sick days' per year. 33

Studies have failed to find whether absence repeaters have moreill health than the rarely absent employee, or whether they aremerely more likely to be absent. In an article published in theMedical Journal of Australia, Ferguson claimed that studies haveshown that many sickness absence repeaters have little chronic orrecurrent disease while many who are rarely absent have much suchdisease: .

Physical examination at anyone time is a poor predictorof absence, and absence is a poor indicator of physicalill health. Absence is a measure of acute ill health,mostly, and physical examination is a measure ofchronic ill health; different things are beingmeasured. 34

18

Many studies reported, in general, higher absence rates foremployees who were female, single parents, young, nearretirement, less educated or in lower status jobs. Significantlylower absence rates were reported for supervisors and managersand the self employed. However conflicts exist between thereports when looking at specific characteristics of employees aspredictors of voluntary absenteeism.

19

CAUSES OF ABSENCE: FACTORS AFFECTING ABILITY TO ATTEND

In considering the causes of labour absence - time spent awayfrom work when, in the normal course of events, a worker would beexpected to be present in the workplace35 - researchers havepointed out that work attendance is influenced by both theability to attend and the motivation to attend. The ability toattend will be limited by illness and accidents, transportproblems and family responsibilities 36 . This paper does notinclude any discussion of transport problems nor does it try todefine what constitute 'genuine' illnesses or accidents.

(a) Occupational health and safety

In terms of likely accident or death in the workplace, publicservants probably enjoy the safest working conditions of anyoccupational group. A study of deaths as a result of workrelated injury in Australia 1982-1984 revealed that clericalworkers had the 'safest' jobs, i.e. the lowest incidence of fatalwork injuries of any occupational group37.

An analysis of the 1983 Health Survey revealed that the leastaccident prone occupations were those of transport andcommunication workers, clerical workers, administration,executive and managerial workers, sales workers andprofessionals. Yet in terms of the incidence of work accidents,public administration emerged from this survey as a moredangerous industry than manufacturing38 .

Factors such as stress levels, repetition strain injuries, andthe effects of working in air conditioned offices couldcontribute to greater than expected levels of sick leave for theAPS. A Western Australian study of stress levels in a range ofoccupations has reportedly revealed that public servants sufferfrom the most stress, especially where workplaces are beingrestructured39 .

Professor Robert Spillane of Macquarie University is reported tohave related accountability and autonomy factors to stress in theworkplace. He claims that low autonomy and low accountabilitycan lead to stress in the form of boredom and underload, whereaslow autonomy and high accountability could lead to stress in theform of overload and inability to cope. Work entailing highautonomy and low accountability may not be stressful but may notnecessarily be productive. The optimum situation was on of highautonomy and high accountability, provided the worker was, andfelt, competent. 40

In any program to cut absenteeism rates, occupational health andsafety considerations are extremely important. According to theCrawford and Volard study of work absence in Australia, 6.3% ofall temporary non-approved work absence in Australia results fromindustrial accidents. Obviously this is an area in whichmanagement intervention and action should lead to a reduction oflabour absence. This factor has been recognised within the APSand on-going programs and strategies have been adopted bydepartments. This paper will not encompass consideration ofthese factors except to note their importance.

20

Conclusion:

Occupational health and safety concerns of employeesshould continue to be investigated and addressed.

(b) Off-the-job accidents

Estimates provided by the Crawford and Volard study were thattraffic accidents and other off-the-job accidents accounted for12.2% of all temporary non-approved work absence in Australia.Where compensation provisions apply, as in compulsory third partyinsurance for motor-vehicle accidents, an amount to cover wageslost as a result of the accident may be included in thecompensation paid. An employee who is covered by paid sickleave provisions may have the option of having sick leave creditsreinstated through payment of the wages component of thecompensation back to the employer, or of being paid twice for theperiod of sick leave taken after an accident. Where an employeewith plenty of accrued sick leave thus has the option of doublepay, there is a strong disincentive for an early return to workafter the accident.

(c) Alcohol and drug related problems

The amount of absenteeism resulting either directly or indirectlyfrom alcohol and drug abuse is difficult to assess accurately,but there is no reason to think that the problem is any lessimportant in the APS than in industry generally. Sixty to 70% ofpeople with drug and alcohol problems are in employment. In anywork place an estimated 5% of employees may have alcohol or drugproblems and related problems. Some estimates place theabsenteeism rate of employees with alcohol and drug problems as200 - 300% higher than that of other employees 41 . Crawford andVolard estimate that as much as 17.8% of all temporarynon-approved work absence in Australia results from alcohol anddrug abuse (13.8% from alcohol abuse and 4.0% from other drugabuse).42

Senator Vanstone recently advocated a procedure of screening fordrugs as a standard part of public and private sector employmentrecruitment. She cited the case of the U.S. Postal Service whereduring a trial period beginning in 1987, tests of 4375 newemployees revealed that 8.4% tested positively to illegal drugsand these employees were found to have an absenteeism rate 43%higher than those who returned a negative result. It has beenclaimed that the testing of urine samples could be made as partof the existing medical examination by Commonwealth MedicalOfficers on entry to the Public Service. A precedent for suchpre-employment drug screening was set by Qantas in 1985: throu~h

such programs Qantas claims to have halved its sick leave rate4 .

21

Counselling and advice for alcohol and drug problems in theworkforce are available to supervisors and employees throughState bodies such as the Industrial Program Service in the A.C.T.and in N.S.W. A wider service is now provided than the former'alcohol and drug counselling' and supervisors are trained inmethods of dealing with problem employees and referring them forcounselling on the basis of poor performance. Through theNational Employee Assistance Program Executive, formerly theNational Alcohol and Drugs of Dependence Industry Committee,non-profit government funded organisations such as the IndustrialProgram Service are providing counselling and assistance, and areresearching the problem of drug related absenteeism in Australianindustry. Already these programs cover 10% of employees.Reports and recommendations from these organisations shouldreceive the careful attention of the APS.An Australian study on the comparative absence rates of smokersand non-smokers found that absenteeism of male smokers was over50% greater than that of male non-smokers (the rates reported .being 13.8 days per year compared with 8.2 days per yearrespectively). For female smokers the absenteeism rate was foundto be 12.6 days compared with 12.3 days for non-smokers 44 . Thisproblem has been addressed to some extent by the decision to makepublic service buildings smoke-free work places, and by theencouragement of Quit programs run by such bodies as theIndustrial Program Service.

Conclusion:

That supervisors, and employees with attendanceproblems, should be encouraged to make use of programssuch as those provided by the Industrial ProgramService.

(d) Family responsibilities

To the extent that family responsibilities are seen as a factoraffecting both the ability and motivation to attend work, thequestion of absences caused by family responsibilities isrelevant to this study.

The participation of women in the workforce has increasedsteadily, reaching 52.2% by January 1990. Between July 1979 andDecember 1989 the percentage of mothers of dependent children,who were in the labour force, rose from 44% to 59%. In January1990, 38.8% of all employed persons had dependent children. 45

Most research studies on absenteeism report a relatively higherprobability of absence for employees who are female or who aresingle persons with dependent children. Wooden and Robertsonreport that spouses with dependent children have a low absenceprobability, but although absent infrequently, when absent theytake a relatively large number of days off work 46 (possiblyreflecting the length of illness of a child). In his most recentstudy Wooden reports that the presence of dependent children hasambiguous effects on absence:

22

On one hand, dependants increase the financial pressuresto attend work; on the other, the presence ofdependants creates situations where absence is difficultto avoid (e.g. if a child is sick).47

Since 1983 Australia has indicated intention to ratify ILOConvention 156 which concerns equal opportunities and equaltreatment for men and women workers with family responsibilities.The Convention promotes the development of community servicessuch as child care and family services and facilities, and theconcept of special types of leave for parents to deal with familyresponsibilities. On 2 March 1990 the Prime Minister reaffirmedthis commitment.

In terms of the leave provisions sought by the Convention, theAPS could be described as generally in advance of privateindustry in Australia. Measures such as parental leave of upto 66 weeks in the APS, up to three days special leave which canbe used for family illnesses or crises, flexitime and permanentpart-time work have benefited public servants with familyresponsibilities. Criticisms have centred on limitations tothese benefits, especially the limited availability of permanentpart-time work.

More flexible negotiated standard working day arrangements couldbenefit working parents and have the effect of reducingabsenteeism. This would be in accord with the StructuralEfficiency Principle measures suggested by the IndustrialRelations Commission. 48 Countries with more flexible arrangementof working hours include Sweden where parents of children undereight years may reduce their working hours from eight to six perday with a corresponding reduction of income. 49

The Australian Council of Trade Unions (ACTU) has prepared anational test case on parental leave and special family leavewhich should be heard by the Commission this year. The claim isfor up to 52 weeks unpaid leave for fathers after the birth of achild, with up to 3 weeks of the leave available immediatelyafter the birth and the remainder available at the employee'schoice within two years of the birth. The claim would extendthe options of both mothers and fathers in the labour force totake their extended parental leave at a time of their choice upto the child's second birthday. Optional part-time leave couldalso be taken by agreement between the employee and employer.

The claim for special family leave seeks up to 5 days unpaidleave available to both parents to look after a sick child or tomeet a child's school requirements such as pupil-free days orattendance at school functions. The leave sought would be inaddition to the existing paid leave entitlements. 50

23

In Australia, government programs have increased the number offederally funded child care places to 114,400 (at 30 June 1989)and a government program to encourage work-based child care isnow under way. So far employer response to the employer-providedchild care proposals has been slow. Overseas evidence points tosavings in labour-related costs, especially in reducedabsenteeism and reduced labour turnover, from the provision ofon-site or local child care. 51 The Government's objective onwork-based child care, as stated in the March 1990 Policy Speech,is to provide the incentive for employers to extend child care inboth the public and the private sectors.

Conclusion:

That departments should extend provision for permanentpart-time work and flexible 'standard days' and haveregard to their obligations to workers with familyresponsibilities. Progress in the ACTU test case onparental leave and special family leave should bemonitored closely and costs and feasibility of increasedaccess to unpaid leave should be investigated.

24

FACTORS AFFECTING MOTIVATION TO ATTEND

The Steers and Rhodes model of absence identifies pressures toattend work which are influenced by economic and marketconditions, incentive and reward systems, work group norms,personal work ethic and organisational commitment. Attendancemotivation, according to Steers and Rhodes is primarily dependenton job satisfaction. 2 All of these factors warrantconsideration in any exercise on reduction of absenteeism in thepublic service.

(a) Economic

Steers and Rhodes found a steady decline in absence rates in theUS between 1979 and 1982 attributable to the increase inunemployment over the same period. This thesis is supported bythe work of Kenyon and Dawkins in Australia who found that whenfirms are hiring, the probability of the imposition of severepenalties, especially job loss, is lower and workers will be morelikely to be absent. Conversely when firms are firing employees,absenteeism decreases. This finding has implications for theAustralian Public Service where security of tenure provides anenvironment in which voluntary absence is unlikely to bepenalised by job loss. Wooden (1989) and others identify jobsecurity as one of the factors that may lead to greaterabsenteeism in the public sector. 53

Kenyon and Dawkins (1987) found strong support for the hypothesisthat labour absence responds to economic variables. They foundthat an increase in an hour of overtime per employee could beexpected to reduce absences markedly. Similarly they found thata one hour reduction in standard hours could be expected toreduce labour absence due to illness and injury.54

Kenyon and Dawkins contend that labour absence will differbetween high wage - low monitoring co-operative work environmentsand low wage - high monitoring coercive environments. Theyquote a 'competing incentives hypothesis', attributed to Dragoand perlman55 , that labour markets are likely to segmentaccording to incentive structures: a firm will choose either topay low wages and to monitor its workers closely, 2E to pay highwages and not monitor closely. Firms operating in the high wage- low monitoring sector will wish to preserve trust and avoidperfunctory compliance.

Kenyon and Dawkins concluded that 'occupation does affect labourabsence'. Specifically their studies indicated that:

tradesmen and women and production and process workers,that is, blue collar workers, are more prone to labourabsence than other workers. As well as being moredangerous, these occupations are, on average, relativelylow paid and often involve relatively difficult workingconditions. It might also be the case that theyinvolve a more coercive work environment. 56

25

In another work (Wooden with Dawkins and Kenyon, 1987) the pointis made that the work attendance decision is influenced bynumerous other factors including personnel and compensationpractices and external labour market conditions.

(b) Job Satisfaction

As can be seen from the above, Kenyon and Dawkins (1987) find noconflict between the approach of psychologists and personnelresearchers in stressing the importance of job satisfactionvariables in explaining labour absence, and the approach oflabour economists in stressing opportunity costs:

The key problem for the firm is how to obtain consummateco-operation, and avoid perfunctory compliance.Obviously absenteeism is a symptom of perfunctorycompliance. 57

Disagreement exists in the research studies on the importance ofjob satisfaction variables in determining the extent ofabsenteeism. In a 1976 study an English Occupational PsychologyResearch team concluded that the popular job-dissatisfactiontheory of absenteeism, was 'naive, narrow and empiricallyinsupportable,.58 Keller (1983) also tested a number ofvariables including prior absenteeism, job attitudes, demographicand personality variables and found that job satisfaction, joblevel and age were not predictors of absenteeism. Rather, 'priorabsenteeism, group cohesiveness and an internal health locus ofcontrol accounted for unique variance in absenteeism,.59

Researchers at the National Institute of Labour Studies atFlinders University (Mark Wooden with Peter Dawkins and PeterKenyon) have considered the studies on job satisfaction and haveconcluded that the Steers and Rhodes job satisfaction theoriesare valid and that absenteeism in general is significantlycorrelated with job satisfaction factors. The relationship, theysuggest, is stronger for absence frequency than for absenceduration and is strongest with satisfaction with work. It mayhowever be appropriate to view organisational cOmmitment also asa variable which both creates pressure to attend work and adesire to attend work. 60

As identified by Steers and Rhodes, the seven aspects of workwhich are most likely to lead to job satisfaction are:

(1) Increases in job scope or challenge (task identity,autonomy, variety, level of responsibility, participation indecisions, sense of achievement, enrichment).

(2) Job level - people with more challenging, higher level jobsare more satisfied and less likely to be absent than are workerswith lower level positions.

(3) Low role (job) stress.

26

(4) Work group size - generally a positive relationship seemedto exist between increases in work group size and absenteeism asa result of decreased group cohesiveness, greater specialisationin, and therefore less interesting, tasks and poorercommunication.

(5) Considerate, democratic style of leader.

(6) Positive co-worker relations.

(7) Opportunities for advancement.

According to Steers and Rhodes, the relationship between jobsituation variables and subsequent (resulting) job satisfactionis moderated by individual values and job expectations which inturn are shaped by personal characteristics such as age, sex,education, ethnicity, socio-economic background, and training forand expectations of the position. .

If, as is thought, these aspects of job satisfaction increase themotivation to attend work, a great deal of scope now exists forreducing absenteeism by means of individual development plans,training opportunities, industrial democracy and participation indecision making, and through performance contracts and appraisal.It has been noted earlier in the paper that change andrestructuring have already caused stress within some sections ofthe public service and therefore more emphasis must be given topositive relationships and involvement. Job satisfaction isdependent to a large extent on the encouragement by management ofpositive work attitudes, including those in relation toattendance.

Conclusions:

That employees should be consulted and involved indeveloping programs and strategies to provide greaterjob satisfaction, improved productivity and reducedabsenteeism.

That care should be taken in the development of theseprograms to ensure that the majority of employees who donot abuse sick leave entitlements do not becomedisaffected or feel threatened with the removal of theexisting 'safety net' of sick leave provisions.

That use of leave, including sick leave and specialleave, should form a part of performance appraisal andindividual development programs, and that individualrecords on performance should include a more detailedsection on attendance, including number of days and typeof leave, and use of flextime.

27

(cl Work norms / personal work ethic

Many researchers have assumed a causal link between absenteeismand the availability of 'generous' paid sick leave in theAustralian Public Service. The comments of Mark Wooden, SeniorResearch Fellow of the National Institute of Labour Studies havealready been noted6l . Increasingly the suggestion is that it isthe availability of paid sick leave which in some cases causes itto be taken. Paid sick leave is seen as the rewarding ofabsence, including voluntary absence, and this perception hasgiven rise in many places to a culture of 'sickie taking'. Sickleave is regarded in some work places as an entitlement whichwill be lost if it is not taken, and becomes the norm, i.e.everyone else does it. A U.S. study on teacher absenteeismasserts:

The fact that absenteeism increases with the number ofsick-leave days and with sick-leave pay is one of thefew empirical findings with respect to sick leave policyreported in the literature. 62

In their study 'Sick Pay Vs Well Pay: An Analysis of the Impactof Rewarding Employees for Being on the Job', Harvey et al reportempirical evidence which suggests that organisations with paidsick leave programs experience almost twice the absenteeism oforganisations without these programs. Or Chris Baker of WorkHealth comments that part of the problem is the institutionalisedapproach to work attendance and that one of the failings is that

Under the award you are entitled to take 12 days' sickleave a year, and my experience is that it is apeculiarly Australian phenomenon that the majority ofworkers do take their 12 days whether they are sick ornot. 63

A Victorian study of absenteeism in local government also appearsto substantiate this view:

It is ... noteworthy that of the six municipalitieslisted only one allows sick leave in excess of the awardprovisions. This municipality allows 16 days and hasthe highest absente~sm experience of those listed withan average of 14.1 days per employee. 64

This study concluded that:

on the limited evidence available one must gravitatetowards the belief that employee attitude is a mostsignificant factor.

Steers and Rhodes (1984) and other researchers point to theimportance of work group norms as an influence on absenteeism.Cohesive motivated work groups are contrasted with work areaswhich have an 'absence culture', defined here as a set of sharedunderstandings about absence legitimacy and established customsand practices of employee absence behaviour.

28

Personal factors, and the value systems of individual workers,are also important. A strong personal work ethic has been foundto lead to good attendance, regardless of job satisfaction andother variables. Similarly the respective values whichindividuals place on work and outside activities (leisure orduty) may affect attendance patterns:

Attendance patterns may reflect an attempt to balancethe quantit¥ and quality of time spent in variousendeavours. 5

When leisure activities become more important to individuals thanwork, and when there are competing time demands, more frequentabsences may be expected. Dr Chris Baker has commented:

Absence as a whole is increasing in the Western world ­it has been since the 1950s - and the reason for that isthat we have this disposable income and want to havetime to spend that money. People before had to work topay the rent, or buy a house or pay for food, but nowthey have discretion over how to spend their money.You could argue tha~ their work ethic is lower. 66

Conclusions:

As for last section, and that fair comment on anemployee's attendance and leave record should be arequirement in all documentation such as references andreports.

(d) Industrial disputes

An estimated 5.5% of temporary non-approved work absence inAustralia results from industrial disputation67 . Again this is aform of absenteeism which has implications for management, butthis type of labour absence is outside the scope of this paper.

29

AGE VARIABLES

Most studies report the finding that younger workers are moreprone to absenteeism than older workers. The reasons given arethat younger workers tend to change jobs more frequently, theymay be less committed to their jobs or firms, and they tend to beless experienced and more accident prone. Additionally, theopportunity cost of forgone leisure is likely to be higher foryounger workers than for older workers. 58

Wooden and Robertson report that although illness incidenceincreases with age, the incidence of absence that results fromthat illness does not. 59 However, as the 1972-73 Survey of SickLeave in the APS also showed, when older workers do take sickleave it is likely to be certificated leave of longer duration.

In seeking to identify 'absenteeism' or voluntary absence takenon paid sick leave, many studies concentrate on uncertificatedleave. Indeed in seeking to establish patterns of absenteeismresearch studies have 'corrected out' long term certificated sickleave, and thus the practice of using up sick leave creditsbefore retirement is often overlooked. 70 An example of thismethodology is a study of sickness absence in the AntarcticDivision of the Department of Science in 1984 and 1985. Thisreport states:

However, a small number of individuals did takesubstantial periods of sick leave - in some cases inexcess of 100 working days in a given year. In orderto assess trends in the majority of the workforce,figures were re-calculated after excluding nineindividuals whose leave during a single year exceeded 25days. Not surprisingly average figures weresubstantially lower in the groups affected by thedeletions (most notably, the oldest age groups).71

A study of former employees who were retired early as part of an'enlivening' exercise for departments could shed light on manyage/job satisfaction/ incentive theories of absence.

One of the terms of reference for the Survey of Sick Leave in theAPS in 1972-73 was to discover:

To what extent do officers avail of sick leaveimmediately prior to retirement?

Unfortunately the Public Service Board reported that because ofdifficulties involved in obtaining reliable data from the sample,it was not possible to satisfy this objective. Included in therecommended new collection of data on sick leave usage in the APSshould be statistics on pre-retirement sick leave.

30

The 1972-73 survey did show a steady increase in leave taken withage for men over 39 years, rising from five days for the under 18age group to over ten days for the 60 and over age group. Forwomen the average stayed close to ten days for all age groups.In looking at sick leave taken by completed years of service, amarked increase was shown in leave taken by men after 30 years ofservice. Certificated leave increased after 20 years of service.This could occur because older workers are more susceptible toillness, as Wooden and other researchers suggest72 but it couldalso reflect the using up of sick leave credits beforeretirement. Strangely, women with 30 years or more of completedservice had the lowest average sick leave of any group of women.However perhaps in 1972-73 the number of women in the publicservice with over 30 years of service would not provide astatistically valid base.

An informal survey73 undertaken with the co-operation of thePersonnel Practices Contact Group in Canberra, revealed that in14 Departments approximately 40% of age retirees in 1989 hadtaken in excess of 30 days sick leave in the three yearspreceding retirement; 68.9% retired with less than 9 weeks full­pay sick leave credits remaining, and 20% had no full-pay creditsleft on retirement. On the other hand, 22.2% of age retirees in1989 left with more than 20 weeks in accrued unused sick leave.

Although insufficient data was provided by this survey to enablestatistically valid conclusions, the impressions given reinforcethe anecdotal evidence from Personnel Officers that the practiceof 'using up' sick leave before retirement is still common.This is despite the tightening up of provisions on extended sickleave and the requirement of early review by the CommonwealthMedical Officer. It may be that the new restrictions on thetaking of invalidity pensions could have the effect, over time,of a greater incentive for younger officers to 'use up' more oftheir accrued sick leave. Payment or part-payment of accruedleave on retirement could offset the new invalidity measures, andcould provide the incentive for attendance rather than forabsence.

Conclusion:

That a scheme such as payment of 20 - 25 % of unusedsick leave within the APS should be initiated for atrial period in terms of a SEP restructuring exercise.

31

INCENTIVE SCHEMES/ABSENCE CONTROLS

(a) Carrots, sticks or good management?

Researchers report that schemes requiring proof of illness forall absences have not impacted significantly on absence levels. 74Employees probably just substitute certificated for non­certificated leave, taking perhaps fewer but longer absences.An article on the 'sickie mentality' quotes Dr Chris Baker ofWork Health on this point:

We all know that it is easy to find a doctor who, ifasked, will give a certificate for anything if it is ashort term absence of one or two days. A manager wouldbe far better off not asking for it in the firstplace. 75

Steers and Rhodes (1978) concluded that more effective resultsmay be achieved through positive reward systems than through'punishment', although a number of case studies had shown someabsence control systems based on a combination of rewards andpunishments were quite successful.

The acknowledgement that voluntary absenteeism exists and iscostly has led to attempts to vary employee fringe benefits so asto provide motivation or incentives for attendance while notremoving the safety net of sick leave entitlements for cases ofaccident and genuine illness. Incentive schemes have includedbonus pay, bonus points, lottery tickets and, increasingly,payment or part-payment of unused accumulated sick leave credits.

A 1985 U.K. survey showed that medium sized companies tend tofavour attendance bonus schemes, but that their value oreffectiveness remains in dispute. A study of absenteeism withinlocal government in Australia concluded that:

A comparison of the incentives offered by individualmunicipalities with absenteeism records would suggestthat the incentives are seen as an employment conditionby outdoor employees and have either no effect or verylittle bearing on levels of absenteeism. 76

Many firms have reported greater success through monitoringschemes which give greater responsibility for attendance toimmediate supervisors. In the opinion of the manager ofadministration at BHP, Alan priestly, the best way of controllingabsenteeism is on an individual basis:

... at BHP we don't use direct incentives, unlike othercompanies with attendance bonuses. The researchsuggests that although this may be successful in theshort term, in the longer term it makes littledifference. The way to reduce absenteeism is to manageit; if you are talking about work performance,motivation, work attendance, work environment, you needto manage it on an individual basis.

32

Another commentator, Dr Chris Baker, thinks that controlling daysoff should be an internal matter between management andemployees, and says that the best results occur whenresponsibility is delegated down the line to supervisory levels:ideally supervisors should be responsible for five to tenemployees to develop proper relationships. Employee involvementis also seen as an important motivating factor or incentive.The Ford Company, for example, reported success in involvingemployees in discussions of ways of doing the job better. 77

Increasingly industry awards are incorporating provisions forpayment or part-payment of unused accrued sick leave onretirement, or at other times. Some schemes, for example,provide for the payment of sick leave entitlements accrued beyondthe number of days allowed for a year, to be paid at the time ofthe employee's annual leave. Awards which incorporateprovisions for payment of unused sick leave credits include meatworkers' awards, waterside workers' awards, some mining awards,some local government awards and others. As yet the only suchprovision for federal government employees is the OTC award.

No formal studies appear to have been done on the effectivenessof payment or part payment of accumulated sick leave in reducingabsenteeism. A personnel officer in Western Mining, whichprovides a full pay-out of unused sick leave upon resignationfrom the company to some categories of operations and miningemployees, commented that the scheme was costly and there seemedto be large payouts for unused leave when employees left. Thisindicated, he thought, that 'sickies' were not being taken and someant greater efficiency for the company in loading and otheroperations formerly adversely affected by non-attendance.

Provision of pay-out of unused sick leave is very common in bothState and Federal Meat Industry awards. Often the full .entitlement is paid at the end of the year and then the employeemay take leave without pay if no leave is then available to coverthe period of illness. Some awards make provision for accrualof 10 days and the pay-out of accrued leave over that amount. Ameat industry spokesman thought that the provision had no effectwhen the person valued the time off more, but that it probablydid away with the concept of 'using up' leave before it is 10st78

Waterside workers won the right in 1972 to be paid 50% of thebalance of accrued unused sick leave. The entitlement beforethat was for 7 days of paid sick leave and it was the custom totake the whole 7 days. In 1974 this was extended to 100%payment of accrued unused sick leave. In July of each year, 10days paid sick leave entitlement is credited to each worker. Atthat time they can elect to cash in the balance of unused sickleave credits above 28 days. The benefit of the scheme to theAssociation of Employers of Waterside Labour is that it has cutdown on the number of employees 'failing to report' which was abig problem with the rigid manning scales which apply on thewaterfront. 79

{ , 33

Conclusion:

That the growing practice of payment or part payment ofunused sick leave credits in industry should bemonitored.

(b) OTC

In December 1987 an Agreement between the Professional Radio andElectronics Institute of Australasia and the OverseasTelecommunications Commission (OTC), in the context ofnegotiations within the national wage second tier principles, wasratified by Commissioner Griffin in the Industrial RelationsCommission. The Agreement included the provision of sick leaveaccrual at the rate of three weeks leave on full pay each year,and the entitlement of a lump sum payment equal to 20% of themonetary value of the accumulated sick leave credits for anystaff member with at least five years service with OTC who leavesemployment with OTC other than by dismissal. The Commissioner'sduty was not to approve each item in the Agreement but todetermine whether the agreed package as a whole met the criteriaset out in the restructuring and efficiency principle. TheCommissioner made it clear that the pay-out of any untakenentitlement of sick leave should not become a part of the award:

It should be clear therefore that this item could not beregarded as an award matter or a matter which thecommission would be prepared to endorse for inclusion byconsent in an award. In this case it is one item of anagreed package resulting from negotiations designed tosecure a 4 per cent increase based on genuine andsatisfactory offsets.

No formal study has yet been undertaken on the effects of the 20%pay-out provision on the absenteeism rates of OTC employees.However, if a reduction in absenteeism has been achieved, asseems likely at least in the short term, this is a provisionwhich the APS could well consider. Potentially such a provisioncould result in a significant reduction in pre-retirement sickleave, and perhaps it may also have the effect of reducing orproviding some' disincentive for some invalidity retirement bids.

Conclusion:

That the Overseas Telecommunications Commission be askedto provide data on the use of sick leave before andafter the introduction of the 20% entitlement toaccumulated sick leave on retirement.

34

(c) Case Studies of Incentive/Absence Control Schemes

Overseas:

Harvey et al report one successful U.S. well-pay scheme whichsought to substitute a scheme of bonus payments for fullattendance for the previous sick leave scheme. A bonus of fourhours pay was made each month to employees who were not sick fortwo consecutive pay periods (four weeks). The former scheme ofprovision and accrual of sick leave was discontinued. The firsteight hours of illness absence was unpaid, but illness absenceafter that was on full-pay for up to two months at which point adisability plan came into operation. In the first full year ofthe program (the 1981 fiscal year) absenteeism decreased by 46%and there was a 55% reduction in the amount of sick leave paid.At the end of the trial, 64.3% of employees voted to continuewith the well-pay program and 14.3% wanted to return to theformer sick leave provisions (leaving 21.4% with no opinion or noanswer). Supervisors reported that less time needed to be spentin counselling or reprimanding employees, and less time wasrequired in organising to cover absences. One negative findingwas that although the incidence of sick leave droppeddramatically, the duration of the sick leave increased by 108%(from an average of 9.6 to 20 hours) probably to minimise theloss of the first eight hours pay as much as possible.

Other U.S. research has centred on schemes to reduce teacherabsenteeism. One study concluded that absenteeism isattributable in part to illness and in part to abuse of sickleave privileges by healthy employees. Sick leave data and sickleave policies from California and from Wisconsin were compared.The study found that payment for unused sick leave could beexpected to result in fewer days of absenteeism.

The pay may be explicit, such as $10 for each unusedsick leave day, paid at the end of the year, or theteacher may be allowed to accumulate sick-leave days andapply them to early retirement. 80

In the Edmonds School District of Washington State, pay incentiveschemes for teachers are in operation and have been found to beeffective in reducing absenteeism and thus in reducing the costsof relief teaching provision. Twelve days of annual leave isprovided for illness, injury or personal emergency. Of this, upto two days may be taken in any school year for personalemergencies, and up to 3 days in any school year for immediatefamily illness. A doctor's certificate may be required forpersonal illness or disability absence of 5 or more consecutivedays. Unused portions of this leave accumulate from year toyear to a maximum of 180 days. Upon retirement, compensationfor 25% of the salary entitlement for the unused sick leave daysis paid. This amount, 25%, is considered effective indiscouraging absenteeism, but does not result in people reportingfor work when genuinely ill.

·c

35

Another teacher incentive scheme is reported at Case Study (b),Appendix 4. This involved the payment at the end of the year ofan unknown amount of bonus for each day fewer than seven (theaverage) that teachers were absent, and resulted in improvedattendance even though absenteeism had not been thought aproblem. The stUdy indicated the initial success, at least, ofsuch incentive schemes but gave no indication of whether thiseffect could be maintained.

Australia:

In Australia the problem of absenteeism has also been recognisedand attempts have been made to combat the problem. A survey ofa number of Australian organisations and businesses81 hasrevealed the development of different types of policies andprograms to improve attendance. A number reported increasedmorale and reduced absenteeism where work units were not toolarge or impersonal and where line managers monitored attendance.One comment in a business organised in this way, but with noflextime or rostered day off provisions was:

A bigge~ problem is to get people to stay away when theyare ill: they tend to think of the extra work theyare causing others. 82

Other organisations combined techniques of close monitoring ofsick leave with the incentives of overtime or weekend work. Inone example of a 'carrot and stick' approach, a black list waskept of people who had taken excessive leave and these then hadto provide a certificate for all leave until they were off theblack list. Weekend work was not available to those who hadtaken sick leave in the previous week. 83

In an article on managing poor performance, Dawn Linklatercontras,ts the effectiveness of the ' carrot' and ' stick'approaches in looking at the results achieved respectively by theState Rail Authority of N.S.W. and the Department of MotorTransport in their programs to reduce absenteeism. The SRAachieved an 8% reduction in total sick leave as a result of newrules requiring medical certificates for all sick leave takenadjacent to a weekend, public holiday, recreation leave or anybreak. Thus everyone was penalised, regardless of whether theyhad abused the system in the past or not. The DMT on the otherhand removed the limit of three uncertificated absences perannum, introduced accrual of untaken sick leave (which hadpreviously not applied to staff with less than 10 years service)and instituted a system of interviews and counselling for anyemployees who took leave on six occasions during the year,regardless of the number of days of the leave. With the newsystem, a reduction of 28% in total sick leave was achieved. 84

The experience of the Brisbane City Council (BCC) is discussed inan article by Rhonda Dredge and Peter Milton entitled 'Insickness and in health: The absenteeism dilemma'. Absencemonitoring was i~roduced with the adoption of flextime in

36 .,

1973-74 in some white collar areas. More sections weresuccessively monitored, with blue collar areas being includedfrom 1977-78. Two major impacts on absence behaviour were seenin the BCC. Very significant reductions in overall absenteeismoccurred immediately after the implementation of flextime andagain after an Absence Control Program was introduced forBrisbane City Council employees in 1978.

The absence control program was based on a pattern analysistechnique which provides for supervisors and employees a visualreport on absence. Supervisors were encouraged to consider arange of intervention options in dealing with adverse absencepatterns. These included appropriate counselling and redesignof the job where boredom or dissatisfaction was a problem.

The graph below illustrates the drop in absence rates with theintroduction of flextime and pattern analysis. 8S The rise in1977-78 is largely explained by the inclusion of blue collarworkers into the monitoring.

?crccnt3~C:01197Jrate

j

fle:uime introduced

)1001---------------------------

j---

.9°1'0

;01Y

I I j I I I i i I i1972 1973 197:t i97S 1976 1977 1978 1979 19::l0 1981

Absenteeism In monitored areas. Brisbane CUy Council.

Conclusions drawn by the authors included the need for trainingsupervisors in counselling techniques and the idea that

absence counselling was thought to be effective whenrelated to the annual salary review by DepartmentalHeads, who scrutinised attendance before approving payincreases.

37

The present system86 is that twelve days sick leave on full payeach year accumulates to a total not exceeding 260 days. If theperiod of sick leave does not exceed 3 working days, the TownClerk may 'dispense with the medical certificate'. Upontermination of employment for. any cause other than misconductjustifying summary dismissal, accumulated sick leave credits arepaid on the following basis:

For service of less than 5 years - nilFor unbroken service of 5-10 years - 25% of accumulationFor " " of 10-15 years - 50% of accumulationFor " " of 15-20 years - 75% of accumulationFor " " of 20 years or more - 100% of "

However, as most of the employees of the BCC have been employedfor less than 6 years, and as the sick leave balance is paid onlyon retirement, there is little visible incentive from this systemof payment of accrued leave. A greater incentive appears toresult from the 9-day fortnight system with working days of 8hours 27 minutes instead of 7 hour 36 minutes. An employee whomisses work is counted absent for 8 hour, 27 minutes which ismore than one day of the 12 per year allowed. No formal studieshave been made of the effectiveness of these most recentprovisions.

Effectiveness of absence control programs

Wooden and Robertson argue that any or all of the followingfactors could result in the 'dominance of public sectorindustries amongst the most absence prone industries':

( i)( H)( Hi)( iv)

(v)

Whether orall of themanagement

lower job satisfactionmore generous sick leave entitlementsgreater job securityless pressure placed on workers to attend inthe public sectorthe greater level of "slack" built into publicsector jobs.

not this is the case· in the Australian Public Service,factors except the second can be addressed by goodpractices.

The above examples and case studies show that good results (i.e.lower absenteeism) have occurred where immediate supervisors takean active role in the monitoring of and counselling onabsenteeism, where there is worker participation in decisionmaking, and where work norms and work ethics stress co-operation,commitment and responsibility. The benefits of flexible workingarrangements have been demonstrated. Extending the availabilityof unpaid leave to workers with family responsibilities couldalso improve morale and reduce unauthorised absence. Good recordkeeping by supervisors, even to the extent of graphs and chartson display, the tying of 'rewards' such as overtime to goodattendance, and the payment or part-payment of accrued sick leaveon retirement or at agreed intervals have all been demonstratedas effective absence-control measures, at least in the shortterm.

38

Conclusion:

That the role of immediate supervisors in monitoring andcounselling in matters of attendance should bestrengthened and that supervisors should receivetraining for this role.

"

39

Awards with Provisions for Payment of Unused Sick Leave

Awards which incorporate provision for payment of unused sickleave include:

Administrative Clerks' (Container Terminals and Depots)(Consolidated) Award 1988Cl 22 (h) ...where an employee has accumulated at 1 Julyin any year an unused sick leave entitlement in excessof twenty days he may elect, prior to 31 July in thatyear, to receive his ordinary rate of pay ... for all orpart of such excess in lieu of the actual time.[03/06/89]

Aerated Waters Industry Award 1981Cl 18 (g) (ii) ... the employer shall pay the employeethe value of any untaken accumulated sick leave whichaccrued on or after 4 December, 1980, together with thevalue up to a maximum of 80 hours of any untakenaccumulated sick leave which accrued prior to 4December, 1980. (Note: Accumulated sick leave doesnot include sick leave for the current year of service).[09/10/89]

Austral-Pacific Fertilizers Ltd (Agricultural Chemical Industry)Award 1987Cl 21 (g) In the event of death, retirement, orretrenchment (in special circumstances) of an employee,all accumulated credited sick leave shall be paid to theemployee or the employee's dependant, as the case maybe. [03/01/90]

Clerks (Shipping) Award 1982 Part III and Part IVCl 11 (d) An employee may elect, prior to 31 July inany year, where he has an accumulated sick leaveentitlement at 1 July of that year in excess of 28 days,to receive the money value of all or part of such excessin lieu of actual leave. [12/02/88]

Consolidated Wool Dumping Ltd- FCU Agreement, 1980Cl 17 (a) ... Provided that for any such sick leaveaccumulated on or after 1 July 1980 the employee (or hislegal representative, in the case of death) shall bepaid his ordinary rate of pay prescribed by theagreement, in respect of any balance of accumulated sickleave entitlements.Where at 1 July in any year he has an accumulated sickleave entitlement in excess of 28 days a clerk may electto receive the money value of all or part of such excessin lieu of actual leave. [12/02/88]

40

Carlton and United Breweries (NSW) Pty Ltd ProfessionalScientists Agreement 1986Cl 9 (iii) Cumulative sick leave - paid sick leaveshall accumulate indefinitely, provided that an employeewho has accrued at least 18 days' sick leave may, on theanniversary of his employment each year, elect to bepaid the value of sick leave credit in excess ofeighteen days, up to a maximum of nine sick days, whichshall be deducted from the employee's sick leaveaccumulation. A day shall mean 7.78 hours.[15/02/88]

Federal Meat Industry Award 1981Cl 10 (d) Any employer may, by agreement with anyemployee, pay such employee for the portion of sickleave so accrued; or, should the employee accrue inexcess of 128 hours' sick leave, that additional accrualshall be paid to the employee at the expiration of eachtwelve completed months ...(e) Should an employee being eligible for sick leave,leave his employment for any reason, or be dismissed forany cause whatsoever, he shall be paid for all sickleave that has been accumulating on his behalf up to amaximum of 128 hours .... [28/08/89]

F.J. Walker Ltd, Canberra Division Agreement AwardCl 30 (i) In lieu of paying sick leave in accordancewith the foregoing provisions of this clause, anemployer may give such employee ten days' holiday, onfull pay to be added to his period of annual leave, ormay pay him in lieu thereof, ten days additional fullpay at the time the employee commences his period ofannual leave; provided that the payment for such leavemay be made , if the employee so elects during the yearas occasions direct ... [15/02/88]

Foremen Stevedores' Award 1986Cl 32 (a) (iv) Where a casual or pool Foreman hasaccumulated at 1 July of any year an unused. sick leaveentitlement in excess of 28 days, he may elect, prior to31 July in that year to receive his ordinary rate of payprescribed by this Award for all or part of such excessin lieu of actual leave. [9/10/89]

Footwear - Manufacturing and Component - Industries Award 1979Cl 27 (c) (i) ... shall be paid the unused sick leave(but not more than 182.4 hours) at the award rate ofpay. [05/09/89]

41

Gas Industry (Contractors- Mains and Services) Award 1987Cl 26 (3) .. , condition compensable under the Workers'Compensation Act, shall be paid the amount of wagesequivalent to the balance of sick leave on full paystanding to his credit at the date of his retirement,provided that the balance of sick leave paid shall notexceed in ordinary time the period between actualretirement and normal due date for retirement undernormal employer policies. [26/07/88]

Glass Merchants and Glazing Contractors (South Australia)(Consolidated) Award 1984

Cl 29 ... an equivalent payment shall be made to theemployee concerned at the time of taking his annualleave, (including leave allowed before due date) whichshall be sufficient discharge of the employer'sliability to the employee for sick leave payment forsuch period. Provided that if an employee under theprovisions of this clause is entitled to ten days paidsick leave in a year of service, no payment for sickleave not taken shall be made in respect of the 7th,8th, 9th and 10th days. [29/08/89]

and Glazing Contractors (Victoria) ConsolidatedGlass MerchantsAward 1988

Cl 29 As for South Australia, above. [29/08/89]

Holco Ltd Meat Preservations etc Award 1985Cl 16 (c) An employer may by agreement with anyemployees grant such employees up to eight days holidayon full pay in lieu of payment for absence throughsickness or, if such additional holiday cannot begranted, give up to eight days' pay in lieu thereof.[15/02/88]

Miscellaneous Workers' (The Port Waratah Stevedoring Co Pty Ltd)Watchmen and Gamekeepers Award 1982

Cl (b) •.. of death his legal personal representativeshall be paid 100% of his untaken sick leave.(g) Where an employee has accumulated at 1 July of anyyear an unused sick leave entitlement in excess of 28days, he may elect, prior to 31 July in that year, toreceive his ordinary rate of pay •.. for all or part ofsuch excess in lieu of actual leave. [17/02/88]

Northern Territory Meat Processing Award 1984Cl 15 (c) An employer may by agreement with anyemployee grant such employee eight days holiday on fullpay in lieu of payment for absence through sickness or,if such additional holiday cannot be granted, give eightdays' pay in lieu thereof. Provided that, for a periodof service less than one year pro rata payment shall bemade for each completed month of service or partthereof. [01/09/89]

42

Operational Clerks' (Container Terminals and Depots) Award 1982Cl 22 (d) .,. where an employee has accumulated at 1July of any year an unused sick leave entitlement inexcess of 28 days, he may elect, prior to 31 July inthat year to receive his ordinary rate of pay ... forall or part of such excess in lieu of the actual leave.[14/10/89]

Storemen and Packers (Container Depots) Award 1982Cl 21 (d) As for Operational Clerks' Award above.[14/10/89]

Storemen and Packers' Fibre Processing Industry Award 1982Cl 18 (d) On retirement on account of age or infirmityan employee shall be paid for all sick leave that hasaccumulated on his behalf. The rate of such paymentshall be the hourly rate based on the average weeklyearnings earned ... [26/09/89]

Shipping Clerks Award 1988Cl 27 (d) As for Operational Clerks' Award above.[28/05/89]

Waterside Workers Award 1983Cl 36 (g) Where an employee retires, is de-registeredon redundancy or voluntarily leaves the industry afterten years' service, or dies or leaves the industry undercircumstances where he has been accepted by theStevedoring Employee's Retirement Fund as "totally andpermanently disabled" he shall be paid by AEWL (or inthe case of death his legal personal representativeshall be paid) at the rate prescribed in this clausefor any balance of accumulated sick leave entitlementof which the employee has not availed himself.(k) Where an employee has accumulated at 1 July of anyyear an unused sick leave entitlement in excess oftwenty-eight days, he may elect, prior to 31 July inthat year to receive payment from AEWL at the rateprescribed in this clause for all or part of such excessin lieu of actual leave.Cl 55 (g) and (i) make similar provisions. [26/09/89]

Waterside Workers' (Container Terminals) Award 1984Cl (b) and (g) contain provisions similar to those ofthe Waterside Workers Award 36 (g) and (k) and 55 (g)and (i) above. [14/10/89]

"

43

Appendix 1

Excerpt from National Wage Case Decision August 1989 on theStructural Efficiency Principle.

It will be recalled that in the August 1988 decision theCommission said that

"The measures to be considered should include but not belimited to:

establishing skill-related career paths which providean incentive for workers to continue to participatein skill formation;

eliminatingbroadeningrequired to

impediments to multiskilling andthe range of tasks which a worker may be

perform; and

ensuring that working patterns and arrangementsenhance flexibility and the efficiency of theindustry. "

In relation to the last measure in particular we are of the viewthat many awards have scope for a less prescriptive approach and,without limiting the opportunities for innovation, the followingare some of the measures which are appropriate for consideration:

averaging penalty rates and expressing them as flatamounts;

compensating overtime with time off;

flexibility in the arrangement of hours of work, forexample:

wider daily span of ordinary hoursshift work, including 12 hour shiftsordinary hours to be worked on any day of the weekjob sharing;

introducing greater flexibility in the taking of annualleave by agreement between employer and employee;

rationalising the taking of annual leave to maximiseproduction;

reviewing the incidence of, and terms and conditionsfor, part-time employment and casual employment;

reducing options for payment of wages other than byelectronic funds transfec;extending options as to the period for which wages mustbe paid to include fortnightly and monthly payment;

44

changes in manning consistent with improved work methodsand the application of new technology and changes inaward provisions which restrict the right of employersto manage their own business unless they are seekingfrom the employees something which is unjust orunreasonable;

reviewing sick leave provisions with the aim of avoidingmisuse; and

developing appropriate consultative procedures to dealwith the day to day matters of concern to employers andworkers

45

Appendix 2

North American Survey and Anecdotal Evidence on the Benefits ofEmployer Provided Child Care, 1989.

Weber and Tulloss (1979) estimated that reduced absenteeism wouldaccount for between 8 and 11 per cent of total savings inlabour-related costs. Savings from reduced labour turnover wouldbe equivalent to between 26 and 27 per cent of the totaloperating costs of the centre depending on the type of child careand the extent of labour turnover for other reasons.

Perry (1981) surveyed 305 companies which were providing someform of employer-sponsored child care and found that half of themexperienced significant reductions in absenteeism, while over 40per cent had experienced lower labour turnover. .

Business Week (1981) cites the experience of Intermedics, a Texasmanufacturer of medical equipment. Seventy-five per cent of thecompany's employees are female. Intermedics reported thatabsenteeism fell by 15 000 hours (i.e., equivalent to 2 per centof total person-hours) in the first year of providing child care,and that labour turnover fell by 23 per cent in the first yearand a further 37 per cent in the second year.

Burud, Aschbacher and McCroskey (1984) provide more informationon the Intermedics experience. The labour turnover rate foremployees using the child care centre is one-sixth the rate forthe rest of Intermedics workforce, Burud et al. also cite thecase of Neuville-Mobil Sox, a small hosiery manufacturer (87employees) which reported that its labour turnover savings alonecovered the cost of providing on-site child care. The samecompany also reported an absentee rate of 1 per cent in alocality averaging 5 to 10 per cent.

Alisberg (1984) cites a survey of 58 companies which providedsome form of employer-sponsored child care. Aggregate absenteeismfell by 72 per cent and labour,turnover by 57 per cent afterchild care provisions were initiated. Alisberg also cites thecase of Control Data Corporation, a major computer manufacturer,which found that the absenteeism rate for employees participatingin its child care program was 25 per cent lower than the rate forparent-employees not participating in the program.

Mann (1984) cites the experience of a small textile manufacturer.This company reported a fall in its absentee rate to 1 per cent,down from 10 per cent, and a labour turnover of 7 per cent, downfrom 40 per cent, within 12 months of providing child care to itsemployees.

46

Alisberg, Barbara and Rose, Karol (1985) The Employer's Guide toChild Care: Developing Programs for Working Parents, Praeger, NewYork.

Burud, S. L., Aschbacher, P. R., and McCroskey, J. (1984)Employer Supported Child Care: Investing in Human Resources,Auburn House, Boston, Mass.

Business Week (1981)December 1981, USA.

"Child Care Grows as a Benefit",

Mann, J. (1984) "Child Care - Public Policy Report"Young Children, Vol. 40(1), USA.

Perry, Kathryn S. (1981) Employers and Child Care: EstablishingServices through the Workplace, Women's Bureau, US Department ofLabor, Washington DC.

Weber, R. and Tullos, B. (1986) "Industry and Child Care:Economic Implications", Academy of Management Journal, USA.

From Child Care in the Work Place, Cost Benefit Study of EmployerProvided Child Care, 1989, Department of the Prime Minister andCabinet, Office of the Status of Women.

47

Appendix 3

Age Retirement - Use of Sick Leave Survey Results

Age Retirement

This question refers to staff who retired in 1989.If these questions cannot be answered fromcomputerised records, in order to save you time, itis suggested that you select up to a maximum of 25age retirees, alphabetically and sequentially fromthe letter 'a'.

Please categorise these age retirees into thecorrect box in the following table. Includeretirees who were appointed after 1/7/86.

Between 1/7/86 and 30 6/89 used

",20 Weeks //1/11 l') I J I (3) IFull pay

10-19 Weeks 11 (z.) I IFull pay

0-9 Weeks/111/1 l') I11 JI11 I (~) 1J I J 11/ I

full pay Co)

No full 'pay1& ;:>20 Weeks

1/2 pay

No full pay &I I10-19 Weeks

( .. )1/2 pay

I1 IIINo full pay & I0-9 Weeks

(2 ) c.)1/2 pay

'u

"~--..;

.~

~~

-.,,)

,~

1

~,.;:"i

"~ .~

"''''~~

"- '\.>~

-.0 '"."'­'J ...~ '"':!

(; ~'lJ "Je>:.

10 dayssickleave

or less

10-29dayssick

leave

30-59dayssick

,leave

60 dayssickleaveor more

Tc.h..J olep,,,t.,,.,e,,,-ts reSf'c1"\.,f"·'j It

1;/;"a.L r"er,-rees ,,, 1'1 8 ,/J+.S"

48

Appendix 4

Case Studies

(a) State High School, Australia

Teaching Staff: 43. Of these 28 were male, 15 were female.Four teachers were part-time.

Of the five uncertificated sick leave days allowed per year in1989:

Four teachers took five or more days (9.3% - 3 male, 1female).

Eight teachers took four or more days (18.6% - 6 male, 2female).

Nineteen teachers took more than two days (44,2%).

Only the deputy principal and five other teachers tookno uncertificated leave days (14% - 5 male, 1 female).

Of the six teachers who took no uncertificated leave, five hadpositions of responsibility (i.e. extra duties, higher pay levelsco-ordinators, committee members). Most of the leave occurred onMondays or Fridays.

This private survey of a stress occupation in a public sectorarea was made for comparative purposes. It indicates that up to18.6% of staff were likely to have used uncertificated sick leavedays as a form of extra recreation leave.

(b) Teacher Scheme, United States

A novel incentive scheme for New York District teachers wasreported by Stephen Jacobson in an article entitled 'The Effectsof Pay Incentives on Teacher Absenteeism,.87 In 1986-87 New Yorkenacted an Excellence in Teaching (EIT) program and appropriated$95m for the improvement firstly of entry level teacher salariesand after this of teacher salaries generally. In mostdistricts, collective negotiations resulted in this extra moneybeing divided equally among all teachers. Only 5% of the EITagreements distributed their money on the basis of some measureof teacher effort. One district, the Sugar Hill Central SchoolDistrict, implemented an attendance incentive plan although theiraverage of 7 days absent per teacher from a 187 day school yearwas not considered excessive.

The scheme worked as follows: An amount of the EIT money,$73,000, was set aside to create a parimutuel pool from whichteachers would draw one share for each day less than 7 for whichthey were absent during 1986-87. Theoretically if only oneteacher in the district had fewer than 7 absences, she or hecould have won the whole $73,000. As the total number of sharesto be paid out was unknown until the end of the year, the scheme

49

in its first year of operation had the appeal of being somethingof a lottery. In the event, 1,274 shares of $57.16 were paidout, making the bonus for a perfect attendance record $400.

The mean number of days that teachers were absent dropped from7.21 days in 1985-86 to 5.34 days in 1986-87. The median numberof absences dropped from 6.5 days to 3.25 days, a 50% reductionin one year. However, although the mean number of teacher sickleave days declined significantly in that year, use of personalleave increased from 1.23 to 1.51 days, indicating that teachersmay have substituted between these two categories of absence inorder to maximise their rewards. Nevertheless 71% of alldistrict teachers earned at least one share of the incentive poolcompared with 58% who had fewer than 7 sick leave days in theprevious year. The number of teachers with perfect attendancerecords rose from 8% to 34% of the total workforce. Substantialsavings resulted from the savings on employment of substituteteachers.

50

Appendix 5

The following departments, associations and companies werecontacted between October 1989 and January 1990 with requests fordetails of sick leave entitlements, management initiatives orincentive schemes. I found representatives and officers to begenerally extremely helpful and I am indebted to them for theiradvice and information.

Alcohol and Drug Foundation of Australia, ACT.American Express, Sydney.Angliss Group and Associated Co., SydneyArgyle Diamond Mines, Perth.Brisbane City Council Administration.Business Council of Australia, Melbourne.Commonwealth Bank (Personnel), Melbourne.Citibank, Citicorp, Sydney.Cadbury Schweppes, Melbourne.Department of Industrial Relations, IR Policy Section, ACT.Department of Social Security, ACT.Herald and Weekly Times, Melbourne.Industrial Program Service, ACT and NSW.Meat and Allied Trades Federation of Australia, Sydney.NSW Department of Industrial Relations and Employment, Staff

BranchOTC, Sydney.Personnel Practices Contact Group - Individual members

representing APS Departments, Canberra.Pacific Dunlop Ltd, Melbourne.Public Service Commission, ACT.Victorian Public Service Board.Western Mining Corporation, Perth.Westpac, Sydney.

END NOTES

1. Australian Industrial Relations1989, Reasons For Decision, P2.

2. Ibid p. 10. See Appendix 1.

51

Commission, National Wage Case

3. Agreement between ACOA, APSA, FCU and the Government on 4%second tier pay increases for office based and relatedclassifications, para. 36.

4. 1975 edition.

5. For example, the studies by Dawkins et aI, September 1985 andNovember 1985.

6. R.G. Ensley, A Taxonomy of Measures of Absenteeism, DeakinUniversity Occasional paper No. 93, October 1986.

7. As quoted in Wooden and Robertson, Illness, Injury and Absencefrom Work: An analysis of the 1983 Health Survey, May 1989.

8. For example, Wooden and Robertson, op cit. pp. 33-34. AlsoDr Chris Baker, quoted in James, Business Review Weekly16 June 1989.

9. Wooden, 'The "Sickie": A Public Sector Phenomenon?' .

10. Harkness and Krupinski, "A Survey of Absence Rates, Work andPeople, 1977.

11. As summarised in Dawkins et aI, Labour Absence; A LiteratureReview and Annotated Bibliography, September 1985, p. 1.Figures are from the Harkness and Krupinski survey.

12. Crawford and Volard, 'Work Absence in Industrialised Societies:The Australian Case', 1980, p. 8.

13. Wooden and Robertson, op cit.

14. Public Service Board, Survey of the Incidence of Sick Leavein the Australian Public Service, May 1972 - April 1973.

15. For example the work done by the National Institute of LabourStudies Incorporated, Flinders University.

16. Personnel Practices Contact Group Meeting, Treasury Building,6 December 1989.

17. Wooden, Mark, "The 'Sickie': A Public Sector Phenomenon?"p. 1.

18. Ibidp. 11.

19. Department of Employment, Education and Training, JointStaffin Review of Relief Staffin in the Commo wealthEmployment Service Network, Draft Report of the' viewTeam, June 1988.

52

20. Budget Resources Branch, Department of Finance.

21. D.E. Taylor, 'Absent workers and lost hours, May 1978' MonthlyLabour Review, 102, quoted in Dawkins et aI, LabourAbsence: A Literature Review and Annotated Bibliography,September 1985. The Australian figure of 4% is apparentlyfrom the Harkness and Krupinski study, 1977.

22. Survey of Absence Rates and Attendance Bonuses, IndustrialSociety Vol. 3. 1985.

23. Australian Public Service pamphlet on Sick Leave.

24. Public Service Board, Survey of the Incidence of Sick Leavein the Australian Public Service (May 1972 - April 1973),August 1974, Appendix B.

25. Peter Kenyon and Peter Dawkins, Explaining Labour Absence inAustralia, Murdoch University Economics Programme WorkingPapers, No. 1, August 1987, p. 18. See also John Steinke,'The Long-Term Decline in the Standard Working Year',Journal of Industrial Relations, 25, pp. 415-30. Note,however, that some industries retain 8 days as the annualentitlements. .

26. Infra p. 38.

27. Public Service Board, Report on Departmental Evaluations ofFlexible Working Hours, September 1976, pp. 1-4.

28. Public Service Board-ACTU Taskforce, Flextime in the AustralianPublic Service, 1987.

29. Public Service Board, Survey of the Incidence of Sick Leave inthe Australian Public Service, op cit.

30. Keller 'Predicting Absenteeism From Prior Absenteeism,Attitudinal Factors, and Non-attitudinal Factors, Journalof Applied Psychology, 1983.

31. Linklater, 'The Carrot or the Stick?' Directors in Government,1988.

32. Dr Chris Baker, quoted in James, Business Review Weekly,16 June 1989.

33. Study quoted in Steers and Rhodes, 'Knowledge and SpeculationAbout Absenteeism' in Goodman, Atkin and Associates,Absenteeism, 1984.

34. Ferguson, 'Sickness Absence, An Analysis of the Problem',Medical Journal of Australia, 17 February 1973, p. 335.

35. Wooden, Mark, with Dawkins and Kenyon, Illness, Injury, andAbsence from work: An Analysis of the Health Survey and OtherABS Data Sources, August 1987.

53

36. Steers, R.M. and Rhodes, S.R. Major Influences on EmployeeAttendance: A Process Model, Journal of Applied Psychology£l, August 1978, pp. 391-407. Also Steers and Rhodes,'Knowledge and Speculation about Absenteeism', 1984.

37. James E. Harrison et aI, 'Deaths as a result of work-relatedinjury in Australia, 1982-84', Medical Journal of Australia,Vol. 150, 6 February 1989, and Sydney Morning Herald,6 February 1989.

38. Wooden and Robertson, op cit, May 1989.

39. Financial Review, 6 November 1989.

40. Reported in the Weekend Australian, 7-8 April 1990, p. 39.41. Research Officer, Industrial Program Service, Sydney.

42. See diagram supra. p. 7 from Crawford and Volard, op. cit.

43. Wallace, Chris, Business Review Weekly, 15 December 1989,p. 33 and 36.

44. Althanasou, J.A. Smoking and absenteeism: Medical Journal ofAustralia 1979, Vol. 1.

45. December 1989 figure. Statistics in this paragraph areprovided by the Statistics Group of the Legislative ResearchService of the Parliamentary Library.

46. Wooden and Robertson, op cit, pp. 24 - 25.

47. Wooden, Mark. 'The "Sickie": A Public Sector Phenomenon?'p. 5.

48. See Appendix 1, IRC Efficiency Measures.

49. Department of Employment and Industrial Relations, Women'sBureau, Maternity and Parental Leave Information PaperNo. 3, 1985.

50. A.C.T.U. Parental Leave Test Case Background Information,January 1989.

51. See Appendix 3, North American Survey and Anecdotal Evidenceon the Benefits of Employer-Supported Child Care.

52. Steers, R.M. and Rhodes, S.R. Major Influences on EmployeeAttendance: A Process Model, Journal of Applied Psychology63, August 1978, pp. 391-407. Also Steers and Rhodes,'Knowledge and Speculation about Absenteeism', 1984.Wooden with Dawkins and Kenyon, 1987, provide a comprehensivediscussion of the Steers and Rhodes absence model.

53. Wooden, 'The "Sickie": A Public Service Phenomenon?'

54. Kenyon, P. and Dawkins, P. Explaining Labour Absence inAustralia, 1987, p. 22 and p. 19.

55. Robert Drago and Richardas Competing Incentives:Department of Economics,1985, pp. 1-21.

54

Per1man, 'Supervision and High WagesA Theory of Labour Segmentation',

University of Wisconsin-Milwaukee,

56. Kenyon and Dawkins, op cit, 1987, p. 23.

57. Wooden with Dawkins and Kenyon, 1987, p. 15.

58. Nicholson et al 'Absence from Work and Job Satisfaction', 197pp. 728 and 737.

59. Keller 'Predicting Absenteeism From Prior Absenteeism,Attitudes Factors, and Non-attitudinal Factors', 1983.

60. Wooden, M. with Dawkins, P. and Kenyon, P. op. cit. August1987, pp. 18, 22.

61. Supra p. 9.62. Winkler, 'The Effects of Sick-Leave Policy on Teacher

Absenteeism', 1980.

63. James, Business Review Weekly, 16 June 1989.

64. Robins, The Australian Municipal Journal, October 1988.

65. Quoted in Steers and Rhodes, 1984, p. 248.

66. Quoted in James, Business Review Weekly, 16 June 1989.

67. Figure given in Crawford and Volard, op cit.

68. Kenyon and Dawkins op. cit., 1987, Also Wooden with Dawkinsand Kenyon, op. cit., 1987 especially p. 24.

69. Wooden and Robertson p. 3.

70. Mark Wooden, phone answers to questions put.

71. King 'Sickness absence in a Tasmanian Division of theAustralian Public Service' pp. 155 and 157.

72. Wooden 'The Sickie: A Public Service Phenomenon'. 1989 p. 8.

73. See Appendix 3.

74. Wooden with Kenyon and Dawkins, p. 63.

75. James, Business Review Weekly, 16 June 1989.

76. Industrial Society, Vol. 3, 1985; Robins, The AustralianMunicipal Journal, October 1988.

77. Priestly, Baker and the Ford example are quoted in James,Business Review Weekly, 16 June 1989.

78. AnglissGroup and Associated Co., December 1989.

55

79. Don AlIen of the Association of Employers of Waterside Labour.

80. Winkler, 'The Effects of Sick-Leave policy on TeacherAbsenteeism', Industrial and Labor Relations Review, Vol. 33,No. 2, January 1980.

81. Phone survey conducted October-December 1989. See Appendix 7.

82. American Express, North Ryde.

83. Herald and Weekly Times, Melbourne.

84. Linklater, 'The Carrot or the Stick?' Directions inGovernment, March 1988.

85. Dredge and Milton, article in Work and People, Vol. 8, No. 1,1982.

86. Information from John Stein, Brisbane City Council,20 November 1989.

87 . Journal of Human R.J!sources Vol XXIV (2).

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