T4421 - 28 June
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TASMANIAN INDUSTRIAL COMMISSION Industrial Relations Act 1984 Meat and Allied Trades' Federation of Australia MEAT TRADES AWARD
Award variation - occupational superannuation, wage rates and hours. REASONS FOR INTERIM DECISION This application by the Meat and Allied Trades Federation of Australia - (Tasmanian Division) (MATFA) sought the variation of the Meat Trades Award and the Abattoirs Award in the following terms. 1. Meat Trades Award "Amend Division E - Carters and Drivers
2. Abattoirs Award "Amend Clause 24 - Hours - Clerks not detailed correctly". Mr Flynn submitted that the 38 hour week provisions should not apply to clerks as they were not subject to the variation requested to be made when hours were altered from 40 to 38 hours a week. The original application to vary hours of work from 40 to 38 hours a week was T.619 of 1986. That application by The Australasian Meat Industry Employees Union, Tasmanian Branch was framed in the following terms:
Having regard to the research undertaken by the Commission with regard to the submissions made by Mr Flynn, the application for a 19 Day Month by the AMIEU does not appear to have been amended to exclude clerks as may have been thought to be the case. There also appeared to be no distinction in the application for clerks to be treated differently. Some light may be able to be shed on this matter in as much that when the award was varied to provide a 38 hour week, operative from 3 May 1988, Division K applicable to Clerks and/or Cashiers, which forms part of Clause 8 - Wage Rates, was not varied to delete the reference to "Amount for Week of 40 Hours". It may be that this should have been the subject of a consequential adjustment that should have been made when the 38 hour week was introduced into the award. Had this been done then the present confusion may not have arisen. Having regard to the foregoing, MATFA is granted leave reserved to further address this issue. 3. Abattoirs Award and Meat Trades Award "Increase the weekly Superannuation Contribution Rate" When the amount of employer contributions to the nominated Occupational Superannuation Funds contained in the Meat Trades and Abattoirs Awards were determined in matter T.2304 of 1990, the Commission endorsed the submissions of the parties that the 3 per cent should be based on the General Butchers rate contained in Division A of the Meat Trades Award. A problem has arisen in that when the General Butchers rate was adjusted for State Wage Case linked increases in May and August 1991, consequential adjustments to the occupational superannuation contributions required to be made by employers were not adjusted.
Meat Trades Award
4. Meat Trades Award and Abattoirs Award It should be noted that in light of the foregoing, consequential adjustments will be necessary for the contribution rate for casuals. The formula as set in T.2304 of 1980 is as follows: (i) General Butchers Rate plus 20% divided by 38 hours per week to produce the hourly rate x 3% for the contribution to be paid by employers. (ii) Accordingly the consequential adjustments to Clause 50(b)(iii) of the Abattoirs Award and Clause 48(b)(iii) of the Meat Trades Award are as follows: (a) Operative from the first full pay period to commence on or after 24 May 1991 36c. per hour or part thereof with a maximum payment of $11.50 per week. (b) Operative from the first full pay period to commence on or after 30 August 1991 37c. per hour or part thereof with a maximum payment of $11.80 per week.
5. Meat Trades Award and Abattoirs Award "Include "Legal and General Direct Super" as an approved Occupational Superannuation Scheme (In addition to TASPLAN)"
Mr Flynn elicited evidence from Mr Taylor from Legal and General. It was established that contributions on behalf of employees would be directed to "Legal and General Direct Super" which was stated to be a sub fund of the Legal and General Superannuation Fund. Several problems arose in establishing if the Legal and General Direct Super Fund is a complying fund as far as the Insurance and Superannuation Commission is concerned. Exhibit MATFA 5 refers to Legal and General Employed Persons Superannuation Fund and this was given preliminary listing by the Insurance and Superannuation Commission (ISC) in December 1988. However no reference is made to Legal and General Direct Super. Also it was noted by the Commission that whilst the application forms signed by employees are headed "Direct Super" the body of the application refers to Legal and General Superannuation Fund. This does not accord with the title of the fund listed by the ISC. In all of the circumstances the Commission is unsure as to the status of the funds specified in the employee application forms. Also presumably only one fund should be nominated in the application forms signed by individual employees. As indicated the forms refer to "Direct Super" "Legal and General Superannuation Fund". In addition Exhibit MATFA 7 shows that employees agreed at a meeting to utilise "Legal and General Direct Super". At this point, given the uncertainties that have arisen, which the Commission is confident will be able to be satisfactorily addressed by MATFA, the Commission is in no position to conclude that the nominated fund(s) are complying superannuation funds in accordance with Section 32(1D) of the Act. Accordingly the parties should further address this issue on resumption of proceedings on 29 June 1993.
R K Gozzi Appearances: Date and place of hearing: |