T1018 and TA33
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IN THE TASMANIAN INDUSTRIAL COMMISSION Industrial Relations Act 1984
In July 1987 the Minister for Tourism, the Hon. G.A. Pearsall, announced the intention of the Government to restructure the Department of Tourism to create a new organisation, Tourism Tasmania, with strong private sector orientation. The realisation of that objective contemplated that certain changes be made to the conditions of employment and, consequently, rates of pay for some employees who would staff the new agency. As a result of the proposed alteration to existing employment provisions for State employees in Tourism Tasmania, the Tasmanian Public Service Association, (the Association) notified the Commission in September 1987 of the existence of an industrial dispute, identified as T.929 of 1987. Following a number of hearings and conferences, I adjourned the dispute proceedings to enable the parties to draw together all of the necessary concepts for the making of the Tourism Tasmania Staff Award which would, as an end result, cover employees excluded from the application of certain provisions of the Tasmanian State Service Act, 1984 (TSSA). At the same time the parties agreed to negotiate an award document, for presentation to the Commission, containing the elasticity which would to enable Tourism Tasmania to operate effectively and efficiently with commercial flexibility in the market place. The creation of Tourism Tasmania was formalised on 23 December 1987 by virtue of an amendment to the Tourism Act, 1977 which deleted references to the Department of Tourism and substituted in lieu thereof Tourism Tasmania. In these award proceedings the parties were principally represented by Mr Jarman appearing for the Minister for Public Administration (the Minister) and Mr Buchanan appearing for the Association. They are to be commended for the fact that, after several months of intensive negotiations between Association and Government representatives, they were able to present to the Commission an agreed draft award document. As a prelude to the presentation of final submissions I undertook inspections with the parties at three major travel centre locations where employees were comprehensively briefed on the wholesale restructuring taking place and the intention of management to devolve the decision making process in the new organisation. These briefing and information sessions conducted with flair and a high degree of professionalism by Mr Reed, Assistant Director, Finance and Administration, Tourism Tasmania, provided the Commission with an excellent overview of the private enterprise directional thrust embraced by Tourism Tasmania and supported by the Association. A valuable part of the exercise from my point of view was to be able to listen to the comments made by employees, most of whom had sighted the proposed draft award. I gained the impression that Tourism Tasmania employees are anxiously awaiting the finalisation of the new award; that they are enthusiastic towards the new structure and the challenges which will be presented as a consequence of more autonomy being vested in travel centre management. Focus is often brought to bear on the importance of the tourist industry to the economy of this State. In this award making exercise the great economic significance of this industry to Tasmania was put into perspective by Mr Reed. He indicated that the tourism industry - · contributes 10.73% to Gross State Product, · provides 16700 direct jobs, · generates $462 million dollars income per annum, · has a multiplier of 2.25 i.e. for every $1 spent on goods and services a further $2.25 is generated, · creates one additional job for every 50 additional tourists that visit Tasmania, over and above the "base line"1. The contribution of Tourism Tasmania to the above industry statistics is said to be in the order of 65%. It was stressed to me on numerous occasions that the single most important objective of Tourism Tasmania is to increase tourist numbers to the State and for visitors to stay longer. The realisation of that objective must be supported by all. Included in the restructuring of Tourism Tasmania is the implementation of improved computer technology and systems which will eliminate long message processing time and reduce the keying error rate. The new computer system will significantly streamline the number of information options available which will result in quicker computer response time. Also, new data sources will be progressively added to the system which will further extend the range of information at the disposal of employees. This will in turn facilitate the delivery of a more efficient and expeditious service to clients. In net terms Tourism Tasmania will be extremely information rich, which will enhance the job knowledge of employees and provide them with the necessary information more speedily. The changes to the information system will dovetail neatly with the re-organisation of the management process in Tourism Tasmania. With the devolution of decision making comes the grouping of employees into a number of quality circles in each location. Each circle will comprise groupings of six to seven employees, which whilst responsible for nominated activities, e.g. counter, reservations, phone areas, agents processing, and itineraries, will also provide resources to other circles as necessary. This mixing and matching, or multi skilling process will broaden the job scope of most employees through the development of a greater range of skills and the vertical and horizontal integration of work. The organisation of employees into identifiable quality circles will also facilitate the measurement of outcomes, which will in turn identify future ongoing training needs as well as providing other valuable feedback. At this stage the precise details of how the measurement of outcomes will be related to performance appraisals is still to be settled between the parties; suffice to say that the Association and the Minister are in broad agreement on this issue. Having had some detailed involvement in the formation, adoption and refinement of performance appraisals in private industry, I support that approach. However, in the current wage fixing environment their use as a tool for the adjustment of remuneration levels appears difficult, as the parties would realise. Of course this in no way mitigates against the use of performance appraisals to shape ongoing individual, "circle", and travel centres key tasks and objectives. Also, this type of cumulative adjustment, over time, may in itself produce identifiable changes capable of being tested against conventional wage fixing principles. I have noted with satisfaction that the training needs for employees which obviously arise from the changes in management approach to the operation of Tourism Tasmania, have not been overlooked. Mr Reed commented that staff development questionnaires have been completed by employees and appropriate training programmes will be implemented which will encompass, inter alia, skilling in computers, communication and interpersonal techniques. TOURISM TASMANIA STAFF AWARD From the date of operation of the Tourism Tasmania Staff Award, Statutory Rule No 255 of 1987 will take effect. That statutory rule will exclude the application of the following provisions of the TSSA for employees subject to the new award.
Whilst the above exclusions are readily identified by reference to the TSSA, the overall effect is to substantially alter employment provisions for Tourism Tasmania employees. One of the most important changes that will be formalised with the finalisation of the Tourism Tasmania Staff Award, concerns the employment of new appointees in accordance with Section 38 of the TSSA. The effect is that persons so appointed will, for the purpose of the Act, be engaged as temporary employees and the employment procedures relating to Section 34 (permanent) employees will not be applicable. This means jobs will be able to be filled with far less delay. The employment process will be further significantly streamlined in that the appeal mechanisms relating to appointments and promotions contained in TSSA will not apply. A simplified process, not contained in this award and which is unique to Tourism Tasmania, has been hammered out between the parties. Termination of employment practices will also be subject to different arrangements. Whilst existing employees (i.e. those permanently employed under the TSSA), will have reversion rights to the State Service in the event of termination, all employees will be subject to the provisions of Clause 16 of the award - Notice of Termination. That clause allows termination by either the employer or the employee subject to giving the required notice; save in the case of misconduct. The notice period was one of the very few unresolved issues. The Association requested a two week period of notice of termination, whilst the Minister has a preference for a four week period. The usual period of notice for award employees outside the State Service is one or two weeks, normally coinciding with the pay period specified in the award. Whilst a four week notice period (or longer) may be desirable for contract appointments (of which there are a number in Tourism Tasmania) I am of the opinion, on what has been put before me, that a two week period of notice of termination is reasonable for both the employer and employees covered by the award. In recognition of the uniqueness of the circumstances necessitating a separate, dedicated award for Tourism Tasmania I have decided to endorse the document without significant change. I do so on the assurance given by the parties that they will seek further variation to the award to include the full detail of those provisions currently included on a short hand basis. I have however varied the definition of controlling authority to conform with the decision of the Full Bench in the "Drafting Officers" test case. PERSONNEL MANUAL As indicated during the proceedings I am not prepared to include in the award proposed Clause 9C which in effect provides for an adoption by the Commission of an administrative and personnel manual. That document will, in part, provide its own interpretation of award provisions, whereas the function of providing a formal (legal) interpretation of awards is bestowed on the President of the Commission by the Industrial Relations Act 1984. Whilst I support the approach of parties in putting in place this type of agreed documentation, I do not, for the above reasons, consider that it is appropriate to confer any degree of award status on such a document. ANOMALIES CONFERENCE REFERRAL By way of introduction to this part of my decision I indicate that as the proposed salary range for Travel Consultants, derived from the Clerical Employees Award scale, has been significantly compressed by the removal of several incremental steps, the matter was brought before an Anomalies Conference for the President to determine how, if at all, the matter should proceed. In the event, the President concluded that an "arguable case" had been made out and accordingly the matter was referred to me for determination. As submissions in respect of the proposed award, apart from Clause 8 - Salaries, had already been put before me in matter T.1018 of 1987, I joined the Anomalies referral TA.33 of 1988, with the former application. It is in respect of the Travel Consultants scale that significant change has taken place and which gave rise to the matter going the an Anomalies Conference. The number of annual incremental salary levels for this newly titled classification has been reduced from a 12 to 5. The reason for the reduction is that fundamental changes have been made to the design of jobs commensurate with the change in title from tourist officer to travel consultant. Earlier in this decision I outlined the substance of the changes (including work re-organisation through the introduction of quality circles, more sophisticated technology, and multi skilling) which will facilitate mobility, horizontal and vertical, of employees within and between "circles". Whilst in 1980 the then Public Service Board approved an accelerated progression for travel officers I consider, having regard to the very significant work value changes to the role and function of travel consultants and the training to be provided, that a five year salary range is far more appropriate. I have also decided to endorse the submissions of the parties in respect of the inclusion in this award of the entire Clerical Employees Award salary scale, as Classes I to IXX are currently being used. The extra two levels (i.e. Classes XX and XXI) will ensure desirable flexibility for the controlling authority. INCREASES IN EXCESS OF 4% SECOND TIER CEILING The compression of the existing salary scale for travel consultants will result in increases for some classifications in excess of the 4% second tier ceiling. As well as work value increases for travel consultants, all of the salary levels to be contained in the Tourism Tasmania Staff Award incorporate 4% second tier increases. In that regard, when the applications2 for 4% increases for State employees were before a Full Bench of this Commission tourist officers at that stage subject to the Clerical Employees Award were specifically excluded from the increases which were awarded operative from the beginning of the first full pay period to commence on or after 23 March 1988. The reason for the exclusion by the Full Bench was because of these Tourism Tasmania Staff Award proceedings. Because I have now been satisfied that all of the relevant offsets specified in Registered Agreement T.1233 of 1988 (endorsed by the Full Bench) will also apply to all employees subject to the Tourism Tasmania Staff Award, the 4% second tier increases are also incorporated in the new award for those employees previously employed as tourist officers under the Clerical Employees Award (operative from the abovementioned date). The introduction to Clause 8 - Salaries makes reference to the offsets agreed to for Tourism Tasmania employees. The parties have also indicated their intention to make application, in due course, to seek variations to the award to spell out, as appropriate, the offsets in question; and as I have indicated earlier in this decision, to set out, in full, provisions currently included by means of source reference only. In addition to the general offsets contained in the above agreement, Mr Buchanan submitted that the significant changes in the method and terms of employment referred to previously in this decision, provide many additional benefits to management and reflect what has been a genuine and extensive restructuring and efficiency exercise. I concur with that submission and I am satisfied that the requirements of the Wage Fixing Principles as they relate to Principle 3 - Restructuring and Efficiency and Principle 4 Work Value Changes have been demonstrably met. OPERATIVE DATE The new award structure now endorsed by the Commission (except as already specified for tourist officers/travel consultants) will operate from the date of this decision. The award document is attached hereto.
R.K. Gozzi 1 Base line =340,000 tourists per annum
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