Work contract changes inquiry at Macquarie
A retired High Court judge, John Dyson Heydon, is to conduct an inquiry into the apparent changes to the employment contracts of senior staff, which were made without the knowledge of the board or the government.
The surprise development comes as the state government is preparing to open a data room relating to the privatisation of the electricity generator, which operates two power stations in the Hunter Valley.
Mr Heydon is to review the work contracts relating to several senior staff.
The contracts appear to include more generous provisions than approved by the government if the company is sold.
All staff at state-owned power companies have a standard provision to receive up to 30 weeks' pay if the company is sold, depending on their length of service. The provisions that appear to have been changed for many senior contract employees relate to transfer payments, termination notice periods and redundancy terms if the staff decide not to transfer to the new owner of the business.
"Chief executive Russell Skelton and general manager human resources Sharon Howes will step aside from their regular duties while the inquiry is under way," NSW Treasurer Mike Baird said on Monday.
"It is not expected that the inquiry will impact the timing of the Macquarie Generation sales process."
In a separate statement, the board of the generator said it was seeking to clarify "how these changes were made without board knowledge or approval; and whether the changes made to employee contracts are lawful".
Frequently Asked Questions about this Article…
The inquiry was triggered after apparent changes to senior staff employment contracts were discovered that had reportedly been made without the knowledge of the Macquarie Generation board or the NSW government. These possible breaches of authority led the chief executive to step aside while an inquiry is conducted.
A retired High Court judge, John Dyson Heydon, has been appointed to review the work contracts relating to several senior staff at Macquarie Generation.
Chief executive Russell Skelton and general manager human resources Sharon Howes have stepped aside from their regular duties while the inquiry is under way.
The inquiry is looking at contract provisions that appear more generous than government-approved terms for a sale, including transfer payments, termination notice periods and redundancy terms for senior contract employees who choose not to transfer to a new owner.
All staff at state-owned power companies have a standard provision to receive up to 30 weeks' pay if the company is sold, depending on length of service. The reported changes for some senior contract employees appear to go beyond those standard provisions.
NSW Treasurer Mike Baird said it is not expected that the inquiry will impact the timing of the Macquarie Generation sales process. The government is preparing to open a data room relating to the privatisation.
The board has said it is seeking to clarify how the changes were made without board knowledge or approval and whether the changes made to employee contracts are lawful.
Investors should look for the findings of the Heydon inquiry, any formal statements from the Macquarie Generation board or the NSW government about the lawfulness of the changes, and updates on the privatisation process including the planned data room opening.
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