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T1037 and T1038

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

 

T.1037 and T.1038 of 1987

IN THE MATTER OF AN APPLICATION BY THE TASMANIAN CONFEDERATION OF INDUSTRIES TO VARY THE QUARRYMENS AWARD AND THE FILING OF AN INDUSTRIAL AGREEMENT BETWEEN THE AUSTRALIAN WORKERS' UNION AND THE TASMANIAN CONFEDERATION OF INDUSTRIES

   
 

RE: SECOND TIER AGREEMENT

   

COMMISSIONER J.G. KING

HOBART, 8 December 1987

   

REASONS FOR DECISION

   

APPEARANCES:

   

For the Australian Workers' Union

- Mr E.J. Butler

   

For the Tasmanian Chamber of Industries

- Mr T.J. Abey

   

DATE AND PLACE OF HEARING:

 

17 November 1987  1990

 

Application T.1037 of 1987 seeks variations to the Quarrymens Award (the Award) to accommodate the agreement of the parties to increase wage rates, in accordance with the second tier provisions of the Wage Fixing Principles. T.1038 of 1987 seeks the filing of an agreement (the Agreement) reflecting changes in work practices and other matters which will justify, if ratified, the necessary variations to the Award sought in T.1037 of 1987.

Both applications were listed and joined for hearing purposes on 17 November 1987.

The Agreement, to be known as the Quarry Industry (Second Tier) Agreement 1987, contains the following in relation to wage rates:

"5. Second Tier Wage Adjustment

It is agreed that the appropriate wage rates in the Quarrymens Award be increased on the following basis:

· 2 per cent operative from the beginning of the first pay period to commence on or after the date of ratification by the Industrial Commission.

· a further 2 per cent operative from the beginning of the first pay period to commence on or after 1 March 1988."

The Agreement also contains details of changes going to the Restructuring and Efficiency Principle of the Commission's Wage Fixing Principles. The changes are briefly described under the following headings:

1. Staggering of Breaks

The employer has the right to stagger meal and other breaks to provide for continuous operation.

2. Flexibility of Rostered Day Off

The employer has the right to roster days off to allow for continuous operation.

3. Fortnightly Pay

On the giving of three(3) months' notice the employer may introduce fortnightly, in lieu of weekly, payments.

4. Time of Taking Leave

Annual leave to be taken at a time most suitable to the operations.

5. Requirement to Work Reasonable Overtime

The requirement to work reasonable overtime is reinforced with a definition of 'reasonable overtime'.

6. Remuneration for the Job

Recognition is spelt out of the employer's right to reclassify employees without the continuation of payment of the higher rate or allowance.

7. Maintenance Systems

Consultation is to take place with the aim of improving maintenance systems.

8. Training

Safety issues and the correct handling of equipment are to be the subjects of further training.

9. Pre-start Checks

An employee is to be designated to commence work early to do pre-start checks and to warm up plant and equipment to allow for an immediate start.

10. Broadbanding and Multiskilling

Existing quarry classifications are to be reduced to five grades. Each employee is to operate or be trained to operate all plant within his grade and where applicable any lower grade.

11. Substitution of Rostered Day Off

In addition to the flexibility described in 2 above the employee is to take a rostered day off in the event of a break down of machinery or loss of power.

12. Safety Equipment

A provision is to be included in the Award reinforcing the supply and wearing of all necessary safety equipment.

I point out that the above descriptions are my wording for the benefit of this decision only. The actual wording and intention of the parties is as contained in the Agreement.

In addressing the restructuring and efficiency aspects of the Agreement the parties advised that:

- the quarrying industry is already efficient;

- there are no significant bad work practices to trade away;

- the changes agreed have occurred or will occur immediately the Agreement is ratified, whereas the increase in wage rates is staggered;

- the Agreement is the best that could be achieved without inroads into award conditions;

- although no costing of the changes has been attempted the employers are satisfied that over time the changes will produce significant improvements in production and efficiency.

While I do not accept that all of the above listed changes will produce cost savings or increase efficiency, there is no doubt that substantial benefit can be derived from their totality. As with any such agreement its ultimate benefit will depend on the employers' resolve, not only to properly implement the changed work practices, but also to ensure their continuation over time.

I see particular benefit to the employer of 1. Staggering of Breaks, 4. Time of Taking Annual Leave, 5. Requirement to Work Reasonable Overtime, 9. Pre-start Checks and Warm up of Plant, and 10. Broadbanding and Multiskilling.

There can be no doubt, from the content of the Agreement and the submissions of the parties, that the requirements of the Wage Fixing Principles going to restructuring and efficiency, have been addressed.

I would have been happier in considering the package if some effort had been made to cost the savings represented in the items detailed above. However, the parties maintained that to do so would produce no more than guesstimates' because of the varied quarry operations and in any case many second tier agreements had been processed in the Federal Commission without costings.

In spite of the above stated reservation I approve the Agreement and will vary the Award as requested, both effective from the first pay period commencing on or after 8 December 1987.

 

J.G. King
COMMISSIONER