IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

In December 1986 applications were made by the Australasian Meat Industry Employees' Union, Tasmanian Branch (AMIEU) to vary the Meat Trades Award and the Abattoirs Award to incorporate a 38hour week and consequential changes.

Since then the parties have applied themselves rigorously and commendably to achieving effective cost offsets to minimise the cost of working shorter hours.

To that end, examination of the introduction of a 38-hour week into the Meat Trades Award (the award) has focussed on the three principal areas subject to the award. These areas are:

1. smallgoods;
2. retail; and
3. wholesale.

As discussions between the parties progressed it became apparent, because of the inter-relatedness of the wholesale and retail sectors, that it was not practicable to consider those segments of the industry separately.

Since then, the exercise of securing real and meaningful offsets has concentrated on smallgoods as one part, and retail and wholesale as the other.

The parties have now reached a position where they wish the Commission to endorse the introduction of a 38-hour week for smallgoods employees only; leaving offset negotiations to continue for the retail/wholesale area.

Smallgoods

As has been the general practice in 38-hour week matters, the parties sought to offset the notional 5% labour cost increase attributable to a two hour reduction in working hours per week.

Cost offsets able to be quantified, as shown in the attached Exhibit E1, amount to 4.04%.

The parties were not able to quantify the effect of the reduction in the casual loading from 50% to 20%; or the benefits of a dispute settlement procedure. Nevertheless, it would be reasonable for me to agree with them that some additional benefits would flow from these offsets, additional to the 4.04% tangibly identified.

Item 2, of Exhibit E1, 'Shift Work during Christmas Peak', has also been the subject of further negotiation between the parties resulting in a further relaxation as to what was envisaged and costed in the exhibit.

That extra flexibility has not been capable of measurement because of the uncertainty of the incidence of application in the smallgoods sector of the award.

Whilst it is not a cost offset, the 40 hours divisor for overtime will be maintained for 12 months to further ameliorate the slight residue cost of reducing hours.

Decision:

This has been a diligent exercise undertaken by the parties and after a very detailed examination, costs have been all but offset.

I therefore endorse the introduction of a 38-hour working week in those smallgoods operations subject to the Meat Trades Award.

Whilst the method of implementation will vary between each establishment, I support the suggestion of the parties that an appropriate clause be drafted by them for inclusion in the award when variations for the whole of the award (including retail and wholesale) are made.

This decision, therefore, is interim, and as indicated has application only to smallgoods employees.

The operative date will be 3 August 1987.

RK Gozzi
COMMISSIONER

EXHIBIT E1   -  'ATTACHMENT A'

COST OFFSETS

SMALLGOODS SECTOR (Blue Ribbon Group)

0 F F S E T S