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Tasmanian Industrial Commission

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T1135 T1136 T1151

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

See end of Decision for Awards Varied 

 

T1135 of 1988

IN THE MATTER OF AN APPLICATION BY THE TASMANIAN PUBLIC SERVICE ASSOCIATION TO VARY NOMINATED PUBLIC SECTOR AWARDS IN LINE WITH THE NATIONAL WAGE CASE DECISION OF 5 FEBRUARY 1988

 

 

AND

 

 

T1136 of 1988

IN THE MATTER OF AN APPLICATION BY THE TASMANIAN TRADES AND LABOR COUNCIL TO VARY AWARDS AND AGREEMENTS IN LINE WITH THE NATIONAL WAGE CASE DECISION OF 5 FEBRUARY 1988

 

 

 

AND

 

 

T1151 of 1988

IN THE MATTER OF AN APPLICATION BY THE AUSTRALIAN RAILWAYS' UNION TO VARY THE EMU BAY RAILWAY AWARD IN LINE WITH THE NATIONAL WAGE CASE DECISION OF 5 FEBRUARY 1988

 

 

FULL BENCH:
PRESIDENT L A KOERBIN
DEPUTY PRESIDENT A ROBINSON
COMMISSIONER R J WATLING

15 FEBRUARY 1988

 

 

REASONS FOR DECISION

 

 

APPEARANCES:

 

 

 

For the Tasmanian Trades 
and Labor Council

  - Mr P A Lennon

 

 

For the Tasmanian Public 
Service Association

  - Mr G J Vines
    with Mr K Grey

 

 

For the Minister for Industrial 
Relations in Matters T1135 and 
T1136 (intervening)

  - Mr J McCabe

 

 

For the Minister for Public Administration

)

His Excellency the Governor

)

The Speaker of the House of
Assembly      

)

The President of the Legislative Council

)

Commissioner of Police

) - Mr M Stevens

Tasmanian Development Authority

)

North West Regional Water Authority

)

Southern Regional Cemetery Trust

)

Tasmanian Council of Advanced
Education

)

 

 

For the Tasmanian Confederation of Industries

)
)

Meat & Allied Trades Federation of Australia, Tasmanian Division

)

Hop producers Association of Tasmania    

)

 

) - Mr T J Edwards
)

Metal Industries Association 
of Tasmania

)   with
)

Tasmanian Sawmillers Industrial 
Association

)   Mr K Brotherson
)

Tasmanian Hairdressers' Association

)

Pharmacy Guild of Australia

)

(Tasmanian Branch)

)

 

 

For the Building Workers' Industrial 
Union of Australia, 
Tasmanian Branch

)
)
)

 

)

Operative Plasterers and Plaster

)

Workers' Federation of Australia

) - Mr M Cordwell

Tasmanian Branch

)

Federated Engine Drivers and
Firemen's Association of

)
)

Australasia, Tasmanian Branch

)

 

 

 

 

For the Amalgamated Society of 
Carpenters and Joiners, 
Tasmanian Branch

  - Mr A J Grubb

 

 

For the Australian Railways' Union

  - Mr W R Neil

 

 

For the Musicians' Union of Australia (Hobart Branch)

  - Mr D A Cushion

 

 

For the Retail Traders Association of Tasmania

  - Mr J G Blackburn

 

 

For the Tasmanian Farmers & Graziers Employers Association

  - Mr K J Rice

   

DATE AND PLACE OF HEARING:

11.02.88                       Hobart

The three applications before the Commission were filed consequent on the 5 February decision of the Australian Conciliation and Arbitration Commission in which award rates for adult employees were increased by $6 per week.1

Whereas the Tasmanian Trades and Labor Council (TTLC) application in fact became the vehicle by which all awards and agreements could be adjusted, the Tasmanian Public Service Association (TPSA) claim nominated some 59 awards covering State employees, while the Australian Railways Union application was directed only at the Emu Bay Railway Award.2

In addressing the TTLC application Mr Lennon announced at the outset that agreement had been reached between the Tasmanian Confederation of Industries and the Director of Industrial Relations (the latter representing the Minister for Public Administration and others) that:

1. All public and private awards and agreements of this Commission be varied by increasing adult wage and salary rates by $6 per week in the case of weekly hired employees, or $312 per annum in the case of salaried employees;

2. Where appropriate junior rates be increased proportionately;

3. The minimum wage be increased by $6 per week, or $312 per annum;

4. The foregoing variations to apply from the first pay period commencing on or after 5 February 1988.

It was further agreed that where appropriate separate applications would be made in due course to adjust shift allowances expressed as flat money amounts in certain awards.

Mr Vines, while maintaining the TPSA's earlier expressed concern about the suitability of the current wage package, none the less supported and adopted as his own the submissions made by Mr Lennon.

Messrs Neil and Cordwell also adopted Mr Lennon's submissions.

Mr McCabe, representing the Minister for Industrial Relations (intervening) went to some lengths to explain to the Commission that before the Federal Commission the State of Tasmania had opposed an increase at this time. A number of reasons were given, including the size of the national external debt; the rate of inflation in Australia compared to that of its trading partners, and the rate of remuneration growth vis-à-vis the remuneration of major trading partners.

In view of the fact that the Australian Commission, notwithstanding those submissions, had decided to increase adult award rates by $6 per week, the Minister in these proceedings did not now intend to oppose a flow-on of that decision into awards and agreements of this Commission.

Mr Stevens supported and adopted Mr McCabe's submissions while indicating that if the Commission was minded to grant a flow-on, the appropriate date would be no earlier than first pay period to commence on or after the 5 February 1988.

Mr Edwards indicated that the Tasmanian Confederation of Industries and other organisations whom he represented "have adopted a position whereby they will not oppose flow-on of the $6 national wage increase in the terms outlined to the Commission by Mr Lennon". Nevertheless he reminded the Commission that those for whom he appeared did not believe that the decision of the Australian Conciliation and Arbitration Commission was, in the circumstances of the present state of the economy, entirely appropriate. He submitted that the economy generally could not sustain across-the-board wage adjustments unaccompanied by offsetting productivity increases. In short, Australian industry cannot afford the luxury of making itself less competitive with its overseas trading partners.

In its February decision the Australian Conciliation and Arbitration Commission said, inter alia:

"We are also influenced in coming to this decision by the size of the increase under consideration, by the clear evidence of wage restraint which has been involved in the application of wage fixation principles adopted by this Commission and State Tribunals, and by the commitment to the existing principles of the trade union movement generally. Commitment is now a tangible feature of the wage fixing system, but we emphasise that unless the Commonwealth, State Governments, relevant tribunals and organizations, including those of employers, apply to all claims for increases in incomes principles consistent with those applied by this Commission and the State Industrial Tribunals that commitment may be jeopardised. We also consider it is important that the disciplined approach reflected in the application of existing principles, particularly with respect to second tier matters, be continued. As determined in the March 1987 National Wage decision the current principles will operate until the next review is completed and in the meantime the Commission will continue to deal with second tier applications in an orderly and expeditious manner."

(Ibid Print H0900)

In raising this general question of continued application of the principles to awards of this Commission we have been heartened by the response given by the principal parties. We interpret this to mean that the commitment already given will remain in place until the next review of the principles has been completed.

The Commission also notes and concurs in the observation of the Australian Commission that -

" ... it is our belief that the compression of relativities which would occur as a result of a series of flat increases is undesirable and not sustainable over time."

Ibid p6

In coming to a decision on these applications we again endorse what we said in our 24 April 1987 State Wage decision, that:-

"Given the measure of consensus by Governments, both State and Federal, peak trade unions and major employer organisations during the National Wage Case, we have formed an opinion that only in extraordinary circumstances would it be desirable to settle upon objectives manifestly inconsistent with those of the Commonwealth (Commission) in a National Wage case."

T665, T675, T691, T712 of 1987

We have therefore decided to grant the claims for a flow-on. Accordingly we determine that:

1. Adult rates in all awards shall be increased by $6 per week where those rates are expressed as weekly amounts;

2. Where ordinary rates are stated as annual salaries they shall be increased by an amount of $312 per annum;

3. In view of the expressed wishes of the parties, wage rates contained in agreements be similarly adjusted;

4. Junior award rates be adjusted pro rata and in accordance with the percentage each rate bears to the minimum adult rate upon which those rates have been established. Where no such percentages are stipulated, individual Commissioners are authorised to include the appropriate percentages to be applied after consultation with organisations as necessary.

5. The minimum wage be increased by $6 per week where expressed as a weekly amount, or by $312 per annum where stipulated as an annual amount;

6. The foregoing shall take effect from the first pay period commencing on or after 5 February 1988;

7. Orders giving effect to our decision should be settled by individual members of the Commission within whose assignments those awards and agreements fall;

8. Separate applications will need to be filed in cases where it is sought to adjust shift allowances expressed as flat money amounts;

9. The principles of wage determination now in operation shall remain in place until either revoked or varied following our next review. In the meantime the Commission will continue to deal with second tier applications in an orderly and expeditions manner.

1 Print H0900
2 P026

Awards Varied:
Aerated Waters
Agriculturists
Automotive Industries
Barristers and Solicitors
Boarding Schools and Student Hostels
Bootmakers
Broadcasting and Television
Building Trades
Butter and Cheesemakers
Carriers
Cement Makers
Chemists
Cleaners
Clerical Employees
Clothing Makers
Concrete Products
Dairymens
Dental Officers
Dentists
Electrical Engineers
Electrolytic Zinc
Entertainment and Correction Order
Estate Agents and Correction Order
Ferro Alloys
Fibreglass & Plastics
Fuel Merchants
Furnishing Trades
General Officers
Governor of Tasmania Staff
Hairdressers
Hobart Regional Water Board Staff and Correction Order
Horticulturists
Hospitals
Hotel and Motel Keepers
Ice Cream Makers
Inland Fisheries Commission Staff
Insurance
Laundrymens
Legal Practitioners and Apprentice-At-Law
Licensed Clubs
Meat Trades
Medical Practitioners (Private Sector)
Medical Practitioners (Public Sector)
Miscellaneous Workers
Monumental Masons
Musicians
North West Regional Water Authority Employees
Officers of the State Fire Commission
Optical Industries
Parliamentary Staff
Plumbers
Police
Police Departmental Employees & Road Safety Officers
Printers
Prison Officers
Produce
Public Accountants
Public Vehicles
Restaurant Keepers
Retail Trades
Professional Engineers & Scientists (Private Industry)
Quarrymens
Rubber Trades
Sea Fisheries
Security and Watching Services
Shipbuilders and Correction Order
Shipping
Southern Regional Cemetery Trust
Surveyors (Private Industry)
Tasmanian Ambulance Service
Tasmanian Museum & Art Gallery Employees
Technical Employees
Textile
Timber Merchants and Correction Order
Totalizator Agency
Vegetable Preservers
Veterinary Services
Welfare and Voluntary Agencies
Wholesale Trades
Wireworking