IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

REASONS FOR DECISION

I have had the opportunity to assess the relative submissions of the parties in this matter.

Additionally I have had the benefit of private conference discussions with Mr Targett and Mr Edwards.

The parties are agreed that for the purposes of a retrenchment package, which is being sought by the Shop Distributive and Allied Employees Association - Tasmanian Branch (SDA) as a protection for its members in the event that the retail section of Waverley Woollen Mills is closed, that the termination change and redundancy provisions contained in the Textile Industry Award 1981 will apply.

That aspect being settled between the parties the remaining issue concerns the method of payment, in the foregoing retrenchment package, for accrued annual leave.

Mr Targett submitted that the existing arrangements, in force since 1986 should be continued for the purposes of payment for accrued annual leave.

That method is based on the inclusion of work performed on weekends as ordinary time counting towards annual leave.

On the other hand Mr Edwards submitted that the Retail Trades Award provisions should be strictly applied. That is time worked on weekends should not be counted towards annual leave accrued.

Mr Edwards pointed out that the legal obligations of receiver managers unfortunately required to be appointed for Waverley Woollen Mills are not bound by informal agreements entered into prior to their involvement with the Mill.

I am sympathetic and understand the need for the receiver manager to act in a manner aimed at maximising every opportunity for the Company to trade out of its present circumstances.

To be able to do so would be in the best interest of everyone concerned and of course to the overall benefit of Tasmania.

In making my recommendation in this matter I have an obligation to act in the public interest as defined in Section 36 of the Industrial Relations Act 1984. That particular section specifies, inter alia, that I shall:

"(2) In deciding whether a proposed award or a proposed industrial agreement would be consistent with the public interest, the Commission
shall -

(a) consider the economic position of any industry likely to be affected by the proposed award or proposed agreement;

(b) consider the economy of Tasmania and the likely effect of the proposed award or proposed agreement on the economy of Tasmania with particular reference to the level of employment; ..."

Having regard to the foregoing I have reached the conclusion, that for the ten employees or so involved in the retail section, that they should continue to receive the benefits of their contract of employment, which was negotiated in 1986 between the SDA and the Tasmanian Confederation of Industries.

I do not regard the fact that this current arrangement was not formalised as mitigating the requirement to continue what was undertaken to be done at that time and indeed has continued since then.

The financial implications, I am informed, of continuing the arrangement are minimal.

In recommending in this way I have also taken into account the offer of Mr Targett that the SDA will not continue to pursue the existing provision for any new employees.

Also the SDA have compromised to the extent that weekend hours worked will not be included in any retrenchment calculation that may be required to be made.

To the extent that these alterations to future employment contracts have already been agreed to I recommend that the parties negotiate an industrial agreement encompassing all of the new arrangements.

The Agreement should be filed with the Tasmanian Industrial Commission.

R. K. Gozzi
COMMISSIONER