VOLUNTEER firefighters have lost out badly in negotiations between the United Firefighters Union and the CFA.

Every Victorian volunteer firefighter needs to ask one question.

How did the CFA board and its chairman, Kerry Murphy, sign an enterprise bargaining agreement that disempowered volunteers and handed control of its recruitment, training and resources to the United Firefighters Union?

Not only did the union gain some eye-popping conditions, but they locked in the recruitment of 342 career firefighters and gained guaranteed rights to demand even more.

The conditions outlined in the EBA of last August were so outrageous, the union took the unusual step of reinforcing the deal with two secret common-law deeds that were beyond the reach of Fair Work Australia.

It's only now, six months after the EBA was signed, that the deeds have come to light.

How is it that Mr Murphy signed these deals that:

  • Forced the CFA to hire an extra 90 career firefighters a year until it reaches the 342 target.
  • Barred the CFA from making any career firefighter redundant.
  • Retained the powerful Disputes Panel, which gives the union the power of veto on CFA brigade staffing.
  • Gave UFU members 65 days' recreation leave a year and another 33 shifts of personal leave when they start the job.
  • Allowed one hour's pay each time a career firefighter is contacted by the CFA out of hours, plus free gym membership, stamp duty exemptions on buying a new home and a raft of other lucrative allowances.

The UFU knew the power it was being granted could be challenged by Fair Work Australia or a future Coalition Government.

So the union locked in the deal by paying the CFA $1 to sign the deeds that were legally binding contracts, registered with the Supreme Court. It was a red-hot deal for the union, which promised to boost its CFA union membership and fees by more than 60 per cent within four years.

It's clear the former Labor Premier, John Brumby's office oversaw the process in the lead up to last year's state election in a bid to keep the union on side.

There's a telling clause in the main deed, which states: "Although not a party to the deed, the State Government has been represented throughout the negotiations".

The deed was signed on August 10. Three weeks later, Mr Brumby fronted the media to declare the Government would spend $197.5 million for 342 new career CFA firefighters and 100 additional MFB firefighters in response to the Victorian Bushfires Royal Commission recommendations. What rot. The Royal Commission made no such recommendation and John Brumby knew it.

The August 10 deed even included a back-up clause, which stated:"Should the Victorian Government not make the announcement of increased firefighter numbers ... clause 27.4 (Additional Staffing) is enforceable".

Some volunteers may dismiss the EBA and deeds as irrelevant to them, arguing they were matters for the CFA board and its career firefighters to negotiate.

But there's a crucial question volunteers need to remember - who pays for all this?

The CFA has to find the funds to recruit an extra 342 career firefighters. We already know the CFA is bleeding heavily, with a wages bill of $167 million for 1636 staff in 2009-10.

That's an average of $102,078 per staff member.

The CFA's 552 existing career firefighters each cost an average $130,000 annually.

It's not hard to imagine the impact on the CFA's budget of employing an extra 342 career firefighters, given the cost of recruitment, housing and resourcing.

The Coalition Government has stated it will cover 22.5 per cent of the cost, leaving the CFA to cover the rest.

The CFA can either cut back resources, training and equipment to volunteers or it can crank up its budget by demanding even more fire services levy funding from insurers.

The CFA's budget for this year is already set as $398 million, of which 77.5 per cent or $309 m comes from the FSL.

Another 342 career firefighters means the CFA will have to crank up the FSL by at least $30-$40 million a year.

That means even higher insurance costs for thousands of businesses, farmers and households, including the CFA's own volunteers.

  • Peter Hunt is The Weekly Times' state political reporter.