The Victorian Managed Insurance Authority will conduct an internal probe into disturbing allegations of bullying raised by Crikey last week, after a 3pm all-staff crisis meeting was called yesterday to respond to the claims.
Sources inside the troubled state government insurer told Crikey that chief operating officer Claudio Battilana announced a “process” to investigate the public revelations, the result of which will be tabled at the next VMIA board meeting on February 10. The fresh scrutiny follows another inquiry — launched on Friday by Baillieu government finance minister Robert Clark — to look into the organisation’s alleged “culture of fear”.
This morning Crikey sent the VMIA a series of questions over the revelations and received the following response attributed to Battilana: “The VMIA is assessing these allegations fully. When this process is complete, the VMIA will take any action if required.” The organisation’s CEO, Steve Marshall, is currently on leave.
Last week, Crikey exposed the VMIA’s poisonous climate that has led to a massive staff turnover of 67% in the two years to 2009, with well over 70 staff leaving the body in the four years since 2007.
Staff were urged yesterday to talk to their manager or the general manager of the VMIA if they had any bullying issues and to utilise the authority’s employee benefits program to consult an external psychologist. They were also instructed not to respond personally to media attention and to instead refer all queries on to the VMIA communications area. However, queries would then apparently be passed on to the responsible minister Robert Clark — effectively insulating the VMIA from direct scrutiny.
Last week, three letters — two sent by a former senior staff member to Clark and one sent to then opposition finance spokesman Gordon Rich-Phillips late last year — were obtained by Crikey that spelled out a sordid history of intimidation and redundancies, presided over by a well-paid executive team. Widespread backing for that point of view has been received before and since from a total of 14 current and former staff.
“The allegations made to Gordon Rich–Phillips are not exaggerated and in my opinion are very accurate,” one said. “I agree with everything in your article and the contents of the letter sent to Tim Holding late last year.”
Another questioned the qualifications of many of the senior appointees, with many not possessing specific underwriting or insurance experience. They alleged that special consideration was given to the hiring of ex-staffers of the Victorian Transport Accident Commission, following that body’s relocation to Geelong in 2009.
VMIA chairman Robert Ray, a former ALP senator appointed by his former staffer Tim Holding to head up the organisation in March last year, denied there was a specific culture of bullying at the VMIA, but said the organisation had a “duty of pastoral care” to its employees.
“[These allegations] will be the number one item at the next board meeting,” he said.
Ray strenuously defended his record, saying VMIA had outperformed financially since he took over the post from former chairman Adrian Nye 10 months ago and noted the body had posted an operating surplus of $51.8 million in 2009-10 and exceeded set budgets.
But the media spotlight could be trained on VMIA for some time yet. Channel 7 has lodged several Freedom of Information requests with the VMIA, with the aim of producing a patented Today Tonight “workplace from hell” exposé in the very near future.
The Management at VMIA has got to be kidding. So VMIA senior executives are to conduct their own internal inquiry on allegations of their own organisation’s bullying and financial mismanagement?! So we have the Minister’s independent review versus the VMIA’s own review? Two reviews?!
As if any staff will tell the truth to an internal inquiry about their experience with bullying at VMIA when they know their comments will be read (edited?) by their bosses! Most staff have mortgages and families to feed; and what about recent former staff that were allegedly bullied?
The Minister for Finance should forbid VMIA any internal inquiry and immediately announce the conduct of an independent inquiry under his sole authority directly reporting back only to him.
I suffered the iniquities of VMIA’s so called management team and subsequent toe cutting. I would be delighted to share my experience with any reasonably set up inquiry. However I think it will be highly unlikely the sordid truth will ever see the light of day unless the inquiry is independent.
My view is the board knew and condoned full well the action of the new so-called management, indeed the chairman was instrumental in their employ – he brought them in to do a job. Some months before my termination Adrian Nye assured me personally that employees with my particular expertise would always be required in the risk management area. At the end of my period wiht VMIA I had been forbade to take on the role as outlined in my PD and was conducting data entry for my so-called manager. It became patently obvious they did not want me there and went out of their way to make things as uncomfortable as possible.
I hope there is an inquiry and Nye, the Board, Marshall and his henchmen receive some of what was served up to me. Their actions & corporate governace was a disgrace.
P
Have a look at the VMIA’s website. They have a publication advising other organisations on how to manage their ‘risk culture’!
http://www.vmia.vic.gov.au/~/media/Content-Documents/Risk-Management/Guides-and-Publications/Risk-Insights/7-risk-culture-round-table.ashx
Read page 5 on barriers to building an effective risk culture. Quite ironic in light of these articles.
Need a few cold showers here don’t you reckon? Not to mention a few facts that are in short supply. I don’t know what’s really afoot in this story, but something’s not right. Some sort of fact finding should happen.
Whenever you see anonymous allegations made about an organisation, you can be fairly sure that some change has happened or is happening, like new management or owner, refocus of market or cost reduction or suchlike. In those situations there are always staff who are upset in some degree by perceived threats to their hitherto comfortable existence. Reactions range from enthusiastic adoption of the new setup and operation, to fear and loathing, the latter often related to years of poor performance never brought to account.
New VMIA Chairman appointed not so long ago, new expectations? The website talks about a new corporate plan – has that stirred things up?
Anonymous public sector complainants claim anonymity protects them from ‘retribution’, but I’ve found they often won’t own their whingeing because they fear being shown up by disclosure of the real reasons for their situation.
These straw “victims” are such a gift for journos.
You must be a consultant. They used many of those at this organisation and continue to do so. If there is an enquiry I will gladly give evidence – and not with anonymity . I would be happy to have my performance assessed – would the Board or management?
I suggest you wait for the outcome of the investigation and add your helpful suggestions thereafter.
P