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T2304

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

 

T.2304 of 1990

IN THE MATTER OF AN APPLICATION BY THE AUSTRALASIAN MEAT INDUSTRY EMPLOYEES UNION, TASMANIAN BRANCH TO VARY THE MEAT TRADES AWARD AND ABATTOIRS AWARD

   
 

RE: 3% SUPERANNUATION

   

COMMISSIONER R.K. GOZZI

HOBART, 8 February 1990

 

REASONS FOR DECISION

 

APPEARANCES:

 

For the Australasian Meat Industry Employees Union
Tasmanian Branch

- Mr J Swallow

 

For the Tasmanian Confederation
of Industries and
the Meat and Allied Trades'
Federation of Australia
(Tasmanian Division)

- Mr T Edwards

 

DATE AND PLACE OF HEARING:

 

2 February 1990

Launceston

   

In this matter the Australasian Meat Industry Employees Union, Tasmanian Branch, sought the variation of the Meat Trades Award1 and the Abattoirs Award2 to reflect in those awards the appropriate amount of the employer contribution to superannuation consequential to the handing down of the State Wage Case3 decision in November 1989.

In both of these awards the employer contribution is based on the rate of pay for General Butcher as set out in Division A classification 4 of Clause 8 - Wage Rates of the Meat Trades Award.

Accordingly when superannuation provisions were included in the respective awards the parties agreed that the employer contribution, based on the above wage rate, should be $10.50 a week.

That amount was inserted ahead of the March 1989 State Wage increase amounting to a flat $10.00 a week. Prior to that increase the amount of $10.50 employer contribution was slightly ahead of 3 per cent of the General Butcher's rate. Subsequent to the March 1989 State Wage increase the $10.50 was slightly below the 3 per cent level of the General Butcher rate.

The reason the parties opted for $10.50, endorsed by the Commission, was simply to facilitate a convenient rounding off and to facilitate administrative ease.

The problem that has now arisen is that the employers subject to the award wish to base subsequent employer contributions arising from State Wage increases on the $10.50 a week. The union on the other hand considers that the employer contribution should be based on the General Butcher award rate, as adjusted by State Wage Case decisions from time to time.

I support the submissions of Mr Swallow in this matter. Clearly employer contributions for superannuation purposes are based on ordinary time earnings, as defined.

In the awards in question ordinary time earnings for superannuation contributions is the General Butcher rate.

It follows therefore that as that rate is adjusted (increased) the 3 per cent employer contribution must be calculated on the award rate.

In this matter the parties also requested that the Commission alter the hourly rate of employer contribution for casual employees.

This is a consequential adjustment and is endorsed. However, for the purposes of record I indicate that the calculation is based on the General Butcher rate plus 20 per cent casual loading. The hourly rate is derived by dividing by 38 hours . The result is the figure upon which the 3 per cent contribution is calculated.

However the maximum amount of contribution an employer will be required to make shall not exceed $11.10 which is the weekly amount for a full-time permanent employee. Naturally that amount will vary consequential to future wage case decisions.

Further as a tidying up exercise the proviso to Clause 46 (b)(iii) of the Meat Trades Award is superfluous and will be deleted.

The orders, operative from the first full pay period to commence on or after 23 November 1989, are attached.

 

RK Gozzi
COMMISSIONER

1 P044
2 P001
3 T.2146, T.2147, T.2167 & T.2152 of 1989