IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

This matter concerns an application by the Association of Professional Engineers, Australia (APEA) to vary the Professional Engineers (Private Industry) Award by applying the "Second Tier" principle.

More particularly the APEA sought an increase of 4% in existing wage rates and allowances as part of a package of cost offsets, sufficient to justify such increases.

Both parties consented to the package presented and agreed that the "industry" covered by this award is extremely diverse and flexible.

In addition the number of employees covered by this particular award is small.

Because of the obvious difficulty of presenting one single set of cost offsets to be applied to every enterprise, I was advised that the approach adopted follows closely the formula accepted in the Federal Metal Industry Award area. That is that two documents were circularised.

The first, headed "Matters for Discussion at the Enterprise Level" were circulated to employers and employees by the APEA on one hand and by TCI on the other. In each instance the reaction was interpreted as indicative of positive acceptance.

2. The document (Exhibit S1) provides as follows:

"MATTERS FOR DISCUSSION AT THE ENTERPRISE LEVEL

The following matters shall form the basis of discussions at the enterprise level:

· electronic funds transfer;

· spread and flexibility of ordinary hours;

· disputes settlement procedures;

· flexibility of annual leave;

· meal breaks and rest periods;

· Quality Assurance (QA) e.g. assistance, where appropriate in fostering a positive attitudinal change in the work force at both the shop floor and supervisory levels;

· Just in Time (JIT) e.g. assistance with introduction and acceptance at all levels of production within the enterprise;

· Value Added Manufacturing (VAM) e.g. assistance with introduction and acceptance at all levels of production within the enterprise;

· restrictions on the placement or transfer of professional engineers and scientists;

· wastage of research and development materials and/or time;

· unwarranted use of technical assistants;

· restrictions on the use of special project consultants and contract professional engineers and scientists;

· inflexible manning, coverage of absences and special project work during annual close-down or pre-product launch phases;

· assisting other technical personnel and supervision with the introduction of new technology, processes or products;

· artificial restrictions on employment conditions; work study; indefinite accumulation of sick leave;

· indefinite accumulation of long service leave; report writing and record keeping; commitment to greater innovation; and

· other domestic matters relevant to the working environment."

A second document headed "Statement of the Role of Professional Engineers in Metal and Engineering Industry" (Exhibit S2) was circulated by the APEA to all of its members. It provides as follows:

"VARIATION TO MEMORANDUM OF UNDERSTANDING BETWEEN THE ASSOCIATION OF PROFESSIONAL ENGINEERS, AUSTRALIA AND EMPLOYER ORGANISATIONS BOUND BY THE METAL INDUSTRY AWARD, 1971 - PART III, PROFESSIONAL ENGINEERS

STATEMENT OF THE ROLE OF PROFESSIONAL ENGINEERS IN METAL AND ENGINEERING INDUSTRY

The Association believes that it is incumbent upon all professional engineers to be fully conversant with management techniques and approaches which relate to the improvement productivity in the engineering industry Association believes that techniques such as Just-In-Time, Quality Circles and other productivity improvement techniques involving elements of employee participation are important and necessary components of the approach adopted by professional engineers in their management roles within the Industry.

The Association also believes that professional engineers should be prepared to embrace all available opportunities for the introduction of new technology into the engineering industry on the understanding that the introduction of such new technology will also require the professional engineer to develop procedures and methods of involvement of other employees in ensuring that the introduction of such new technology proceeds as smoothly as possible. In this respect professional engineers will need to recognise that as part of the management process it is important to ensure that fears about employment consequences and 'de-skilling' resulting from the introduction of new technology are properly discussed and resolved with employees effected by such new technology. As such, professional engineers will need to recognise the importance of employee participation within the change process.

The Association encourages professional engineers to ensure that they are conversant with such developments within the Industry so as to maximise the effectiveness of their role as managers within the industry."

Mr Smith, for APEA, was able to indicate that his members had accepted the content of Exhibit S1 without dissent.

Whilst the approach of the parties in endeavouring to comply with the spirit and intent of the principles of wage fixation is unusual, I accept that such approach is genuine and has been dictated by the peculiar circumstances which apply. It would be unrealistic if the Commission failed to properly recognise the difficulties faced by the parties and the extent to which they have gone to genuinely and comprehensively address those difficulties.

Having regard to the circumstances I am therefore prepared to accept that both public interest criteria and the requirements of the wage fixation principles have been satisfied and the claims are therefore granted.

Accordingly all wage rates contained in the award will be increased by 4%, rounded off to the nearest whole dollar, with 50 cents in the result being adjusted upwards.

There are no allowances in the award requiring adjustment.

Having directed the parties attention to the existence in the award of a formula for adjusting the annual leave loading, it was agreed that it is opportune to revise the existing figure of $393.40 contained in Clause 10(a), which applied at the September quarter of 1985.

Operative Date

All variations shall have effect from the beginning of the first full pay period to commence on or after 1 January 1989.

Order is attached.

A Robinson
DEPUTY PRESIDENT