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T450, T455 and T454

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

 

T.450 and T.455 of 1986 IN THE MATTER OF APPLICATIONS BY THE FEDERATED MISCELLANEOUS WORKERS' UNION OF AUSTRALIA, TASMANIAN BRANCH AND THE HOSPITAL EMPLOYEES' FEDERATION OF AUSTRALIA, TASMANIA NO. 1 BRANCH, TO VARY THE WELFARE AND VOLUNTARY AGENCIES AWARD
   
  RE: 38-HOUR WEEK IN DIVISION A
   
  AND
   
T.454 of 1986 IN THE MATTER OF A HEARING FOR APPROVAL OF AN AGREEMENT
   
  RE: 38-HOUR WEEK FOR CERTAIN EMPLOYEES COVERED BY DIVISION A OF THE WELFARE AND VOLUNTARY AGENCIES AWARD
   
COMMISSIONER R.K. GOZZI
HOBART, 10 September 1986
   

REASONS FOR DECISION

   
APPEARANCES:  
   
For the Federated Miscellaneous
Workers' Union of Australia,
Tasmania Branch
- Mr K. O'Brien
   
For the Hospital Employees
Federation of Australia,
Tasmania No. 1 and No. 2 Branches
- Mr P. Imlach
   
For the Royal Australian Nursing
Federation, Tasmanian Branch
- Mr. G. Grant
   
For the Tasmanian Chamber
of Industries
- Mr. M. Sertori
   
DATE AND PLACE OF HEARING:  
   
7 August 1986 Hobart  
     

In this matter three applications were before the Commission going to the introduction of a 38 hour week for employees subject to Division A, Employees of Child Care Centres, of the Welfare and Voluntary Agencies Award.

As each of the applications sought the same objective, they were joined by me with the agreement of the parties. However application T.454 of 1986 seeking the approval of the Commission for an agreement was later withdrawn by leave.

At the outset of proceedings, Mr. Imlach appearing for HEF 1 and 2 requested that I adjourn the parties into private conference in order that further discussions could take place.

Following that conference, Mr. O'Brien, appearing for the FMWU, tendered Exhibit 01 reflecting the negotiated position of all of the parties on the introduction of the shorter working week.

This exhibit clearly detailed twenty negotiated offsets and is appended to this decision.

With regard to the offset dealing with the phasing out of the 20% loading for part time employees, Mr. O'Brien said that from the operative date of this decision the appropriate award provisions would be deleted for all new employees and for existing employees who also elect that option.

In any event, however, the loading would be phased out for all existing employees as from 1 January 1987.

It was further submitted by Mr. O'Brien that where the phasing out of the loading leads to economic problems for specific employees, the parties have agreed to apply to the Commission to determine those individual special cases.

I consider this cost offset to be of significance and confirm that any application going to individual economic difficulty will be promptly listed for hearing .

In relation to the mixed functions provision applying after 4 hours in lieu of the present 2 hours, I was informed that this provision will be amended to 3 hours after a two year period from the date of operation of this decision.

After a further two year period the provision will revert to the existing 2 hours.

Also it was proposed that the mixed functions clause not apply to employees relieving those employees on a rostered day off. This provision will be reviewed after twelve months.

The above award variations, as. well as those others contemplated by Exhibit 01, were incorporated into a draft order forwarded to the Commission in accordance with an undertaking given by Mr. Imlach.

Mr. Sertori appearing for the TCI, in his Exhibit S2, set out the costings associated with the introduction of the 38 hour week.

This exhibit, which is also appended, is self-explanatory. Item G of the exhibit shows that the total additional cost reckoned to be 7.7% has been offset to the extent of 6.6%, leaving a residue cost of 1.1%.

Mr. Sertori said:

    "I would accept there is a possible variation in those figures, and I would accept that perhaps there could be some conservative costs in that area, which would say that the balance could be a lesser figure.

    However, what the document seeks to demonstrate is that given the offsets, and .given the change to a 38-hour week, the offsets are a genuine attempt to offset the cost of the 38hour week to a negligible cost, such that the child care centres in Tasmania are able to agree to the introduction of the 38-hour week on this basis."

    Transcript p.16.

Decision

There is no doubt in my mind that the parties have applied themselves genuinely to achieving real cost offsets associated with the working of a 38 hour week.

Whilst the costs have not been totally absorbed, they have been very significantly minimized in accordance with the intent of Principle 5, Standard Hours, of the Wage Fixing Principles.

I therefore confirm my decision, which was given in transcript, to grant the applications in the terms sought. The award variations are operative from the beginning of the first full pay period commencing on or after 18 August 1986.

The order giving effect to my decision is also appended hereto.

 

R.K. Gozzi
COMMISSIONER

Exhibit S2

WELFARE AND VOLUNTARY AGENCIES AWARD - Division A - Employees of Child Care Centres "Costings - 38 Hour Working Week"

 

1. EMPLOYEES Number of Employees
  (a) Number of Full Time Employees

300 - 350

  (b) Number of Part Time Employees

80 - 100

  (c) Number of Casual Employees

20

  (d) Total number of Employees

400 - 450

  (e) Number of registered establishments

42

     
2. COST OF-38-HOUR WEEK

Additional Cost %

  (a) Time Lost

5.0

  (b) Cost of New Employees

2.5

  (c) Variable

0.2

  (d) Total Additional Cost

7.7

     
3. VALUE-OF-OFF-SETS  
  (a) Variable methods of implementation )            0.2
    In House discussions )
    Review of In House discussions )
       
  (b) Increase in spread of hours

0.5

       
  (c) No sick leave on R.D.O. )
    Substitute days )             0.5
    Storage of R.D.O.'s )
       
  (d) Saturday, Sunday, Public Holidays )
    and Overtime divisor as 40 for )             0.5
    12 months )
       
  (e) Payment of Wages

1.5

  (f) Mixed Functions

2.2

  (g) Morning and Afternoon Teas

0.2

   

Sub Total

5.6

       
4. OTHERS  
  (h) Disputes Procedure  
  (i) Wash up time  
  (j) Half day Cup Holiday  
  (k) Meal Break

1.0

   

Total

6.6

       
5. PART TIMERS  
  (a) Deletion of 20% loading = 4% saving  
  (b) Proportionate time off = avoids 5% wage increase  
       
6. SUMMARY  
   

COST OF 38
HOUR WEEK

SAVINGS WITH
OFFSETS
%

BALANCE
%

   

7.7

6.0

1.1

Exhibit 01

WELFARE AND-VOLUNTARY AGENCIES AWARD
DIVISION-A - "EMPLOYEES OF CHILD CARE CENTRES
"
- 38 HOUR WORKING WEEK -

SUMMARY OF OFFSETS

1. Multiple methods of implementation.

2. Storage of R.D.O.'s to a maximum of 12 per annum.

3. In-house discussion to effect implementation and review of in house discussions.

4. Increase in spread of hours by 1/2 hour at the start and end of the day.

5. No sick leave on R.D.O.

6. Substitution of R.D.O.'s.

7. 40 Divisor on overtime for a period of 12 months.

8. Part time employees may elect to work time off in proportion to full time employees.

9. 20 per cent loading for part time employees to be phased out and be paid pro-rata annual leave, sick leave and public holidays.

10. Payment of wages by cheque, cash and direct bank deposit.

11. Employers will not be penalised for late payment of wages where it is not his fault.

12. Introduction of disputes and grievance procedure.

13. Mixed functions provision to be based on 4 hours not 2 hours. To apply for a 2 year period and then change to a base of 3 hours .

14. The mixed functions clause will not apply where an employee relieves another employee to enable a R.D.O. to be taken off.

15. Meal breaks shall be limited to a minimum period of 30 minutes and a maximum period of 60 minutes provided that no employee shall be required to work more than 5 hours without a meal break.

16. Half day cup holiday to be half the hours normally worked on that day.

17. Saturday, Sunday and Public Holidays divisor to be 40 for a period of 12 months.

18. Morning and Afternoon teas to be reduced by 5 minutes each.

19. Wash up time to be in employees time.

20. Tea breaks may be deferred by up to 15 minutes to allow a work task to be completed.