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Council owned company

A private civic maintenance company started three years ago by Bankstown City Council is returning profits to the Bankstown community. A restructure of the western Sydney Council in 2000 created a surplus of labour and equipment in the road construction and maintenance unit of Council’s Civic Services Group. To find productive work for affected staff, Council started a company called Civic Maintenance Contractors (CMC), which has become a unit within the Civic Services Group.

Many of the initial recruits had spent their whole working lives for Council and there was an entrenched belief that Council would ‘sort out’ any problems running the business.

Under CMC’s workplace agreement, employees are entitled to performance bonuses and profit shares in the company. However, they must return at least $300 per person per day to cover costs.

To achieve this target, staff have introduced various new practices to give CMC a market edge and improve productivity.

Revenue from CMC works during the 2001/02 financial year exceeded $2.8 million, with a net profit of $191,000 returned to Council. The business grew by 30 per cent this financial year and is on target to exceed $3 million in revenue.

It has established a flawless occupational health and safety record, with no injuries and no lost time this year. Provisional audits of safety and environmental management systems are expected to give the business an ISO 14000 and AS/NZS 4801:2001 accreditation by the end of 2003. This will make CMC one of only a few public or private organisations to have all three aspects of its management system – quality, safety and environment – accredited.

CMC has been a test case for the development of business processes, customer service and innovative work practices within Council. Council’s Civic Services Group has used knowledge gained from CMC to deliver best value services to residents.

For further information contact Council’s Manager Civic Maintenance Contractors, Civic Services Group, Mick Raby, email rabym@bankstown.nsw.gov.au or telephone (02) 9707 9597.

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