TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.23 application to vary an award

Federated Clerks Union of Australia,
Tasmanian Branch
(T.3501 of 1991)

Transport Workers' Union of Australia,
Tasmanian Branch
(T.3528 of 1991)

FUEL MERCHANTS AWARD

Wage rates - State Wage August 1991 - Structural Efficiency Principle - 2.5% increase in wages and work-related allowances

REASONS FOR DECISION

These applications, which were joined at the outset were for the 2.5% August 1991 State Wage Case (SWC) decision increase to be implemented in the Fuel Merchants Award (the Award).

The unions submitted that the requirements of the Structural Efficiency Principle (SEP) in the SWC decision had been almost completed in the Award. A proposed new structural efficiency clause was submitted to cover those few requirements outstanding in particular relating to the establishment of consultative mechanisms and the introduction of a provision whereby an employer may direct an employee to carry out certain duties.

The unions sought the date of the hearing, 5 November 1991, as the operative date.

The Tasmanian Confederation of Industries (the Confederation) advised that it was not opposed to the granting of the 2.5% increase and it confirmed that the requirements of the SEP had been met. However, the Confederation was strongly opposed to the operative date sought by the unions on the grounds that:

• the second 3% SEP increase from the previous SWC decision only very recently had been applied to the Award and it was unfair to expect employers to absorb this virtual double increase especially in these troubled economic times;

• granting the increase now would be against the public interest; and

• the long delay in the second 3% SEP increase had not been the Confederation's fault.

• The Confederation sought for the operative date to be made for six months prospectively.

The unions in response pointed out that the Wage Principles did not provide for prospectivity. They submitted that the Guidelines had been met and therefore the increase was due immediately. The unions also said that the employers had avoided the cost of the 3% increase up till recently whereas other employers (some with counterpart employees under Federal awards) had been paying the 3% increase for some time.

I am satisfied that the requirements of the SEP in the SWC decision have been met in this case and the wage rates and work related allowances in the Award will be increased by 2.5%.

As to the date of operation I accept the unions' submissions: the key factor is that once the requirements of the Wage Principles have been met I believe the 2.5% increase should be made available. I do not accept that the timing of the 3% second SEP increase is relevant especially as most of the awards of the Commission have required that increase to be paid for quite some time. However, I think it preferable that the 2.5% increase follow the 3% increase and, to ensure that, the amendment arising from this decision will operate from the first full pay period to commence on or after the date of this decision, 21 November 1991.

An order will be issued in due course

P A Imlach
COMMISSIONER

Appearances:
H Dowd for the Federated Clerks Union of Australia, Tasmanian Branch.
B Hansch for the Transport Workers' Union of Australia, Tasmanian Branch.
S Clues for the Tasmanian Confederation of Industries.

Dates and place of hearing:
1991.
Hobart:
November 5.