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T2486 and T2487

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

 

T.2486 and T.2487 of 1990 IN THE MATTER OF APPLICATIONS BY PASMINCO MINING-ROSEBERY FOR THE MAKING OF THE PASMINCO (MINING) AWARD AND TO VARY THE MINING (LEAD-ZINC) AWARD RESPECTIVELY

RE: RESTRUCTURING PRINCIPLE

COMMISSIONER R K GOZZI HOBART, 8 August 1990

REASONS FOR DECISION

APPEARANCES:
For Pasminco Mining - Rosebery - Mr D Skinner and
  Mr R Evetts
For the Australian Workers' Union,
Tasmania Branch
- Mr B Lowe with
  Mr T Lewtas and
  Mr R Cohen
For the Electrical Trades Union
of Australia
- Mr K D Becker and
  Mr G Bower
For the Amalgamated Metal
Workers' Union
- Mr T Harding with
  Mr M Stewart and
  Mr P Morgan
For the Transport Workers' Union
of Australia, Tasmanian Branch
- Mr B J Hansch
For the Federated Engine Drivers'
and Firemen's Association of
Australasia, Tasmanian Branch
- Mr B Best and
  Mr L Kneebone
DATE AND PLACE OF HEARING:
23 July 1990                 Hobart
3 August 1990              Hobart

 

This application by Pasminco Mining-Rosebery (Pasminco) is for the restructuring of the Mining (Lead-Zinc) Award in accordance with the Structural Efficiency Wage Fixing Principle.

The documentation in support of the restructuring proposals, Exhibit S1, represents the final outcome of in excess of two years constructive negotiations between the parties to the award.

I congratulate all of those involved on achieving an agreed position which has resulted in many new initiatives which will provide extensive workplace flexibility for the employer and access to six distinct career paths, based on skills acquisition, for employees.

Before turning to the specifics of what has been placed before the Commission in this matter, it is appropriate that I make the observation that I regard this restructuring proposal as epitomising what can be achieved where those involved aspire to commonality of purpose to produce enhanced workplace efficiencies and greater flexibility for the employer, and at the same time introduce initiatives which recognise the legitimate expectations and aspirations of employees.

Pasminco Restructuring Proposals

Exhibit S1 presented by Mr Skinner for Pasminco comprehensively details an integrated strategic restructuring plan for that Company's operations at Rosebery.

Training and Skills Acquisition

The principal advocates in these proceedings, Mr Skinner and Mr Harding for the Amalgamated Metal Workers, Union, predicated their approach on the recognition that tradespersons and operating personnel at Paminco have the required base generic skills applicable to their work areas: but as a consequence of increasing technological change in the mining industry the workforce will necessarily have to perform at more advanced levels.

In essence the justification for committing large capital funds aimed at increasing the productive capacity of the Pasminco mining operations at Rosebery is synonymous with the workforce attaining significantly higher levels of skill which will enable it to deliver and facilitate in a direct way optimum production results.

Accordingly formalised skills acquisition modules have been developed which will expose tradespersons and operating personnel to internal site specific training modules as well as to TAFE accredited external modules.

All modules are comprised of a number of individual competencies, i.e. tasks. Each task addresses machine specific or area specific skills related to testing, adjusting, analysis, rectification and or operating at an advanced level beyond that expected of a base tradesperson/operator.

Existing trades and operating personnel will be slotted into a designated career path at a level compatible with their existing competencies. This level will be established having regard to individual responses to carefully designed Audit Questions which have been developed to asses how an individual applies concepts and principles to real life situations.

Completion of additional accredited training will advance employees in their chosen career path.

A Supervisory Skills Module has also been developed for all award employees which aims to develop those type of skills to complement the implementation of semi-autonomous work groups where it is necessary for award personnel to carry out basic supervisory management functions throughout the mine operation.

It is not my intention to canvass the entirety of the skills acquisition programme put forward by the parties. Suffice it to say that it totally underpins the structural changes to be implemented at Pasminco.

The internal skills acquisition modules have been expertly constructed to have direct impact on the work required to be performed.

This aspect together with TAFE training will provide employees with additional skills and knowledge relevant to their individual work locations.

This will enhance cross-skilling and by definition will generate greater workforce flexibility and effectiveness.

To complement skills acquisition is the creation of skill-related career paths for employees. As access to career paths is regulated by the level of skill an employee can demonstrate, some employees will be required to undergo initial retraining before they can enter any one of the career paths and progress consequential to completing stipulated formal training at TAFE and or the relevant internal training at Pasminco.

The reason for this is because career paths range from an intermediate standard, though post trade to diploma or degree level.

Progression through the career paths is determined by accreditation and participants obtaining a minimum standard.

Classification Structure

The skills acquisition programme, as I have indicated, is the linchpin which has enabled the parties to reduce the existing number of classifications in the award from one hundred and eleven to five. Similarly wage rates will be reduced from one hundred and fifty-six to five.

This is indeed of great significance because that is the practical outcome of the skills acquisition programme. Clearly the reduction in the number of classifications results in dramatically broadened job scope which in turn produces enormous gains in workforce flexibility.

That this magnitude of sustainable and coherent change to the work arrangements at Pasminco can be brought forward by consent to the Commission for endorsement speaks volumes for the endeavours of those involved in this exercise.

The extent of employee flexibility that will be achieved, starting immediately and increasing over time as employees acquire the available skill levels will be of significant and increasing benefit to the employer.

Equally and in the strict terms of the Structural Efficiency Principle, employees will have access to more varied, fulfilling and better paid jobs.

Definitions

Commensurate with the reduction in the number of classifications is of course the reduction in the number of definitions.

The new definitions for each of the classifications are extremely broad with definitions being identical for Mill Operator, Surface Operator, Miner (Underground Operator), Mechanical Tradesperson and Electrical Tradesperson.

The scope of the work to be performed within each classification will be limited only to the extent that any particular employee may not achieve the prerequisite skill level through the skills acquisition programme.

The important fact is that any employee will be able to be totally and beneficially employed on tasks for which he/she has gained the appropriate accredited skill and his or her progress in the career stream will then be up to the particular individual.

If an employee decides not to progress in any one of the career streams then his/her career path options and access to other work is curtailed.

Shared Functions

A further component of the restructuring package presented to the Commission is a document contained in Exhibit S1 which sets out negotiated work functions which are to be shared between Mill Operators, Mechanical Tradespersons. Surface Operators and Miners (Underground Operators).

Obviously in many cases it is not possible to share particular functions between all the above categories of employees; however there are several examples where this is the case. Indeed eleven of the one hundred and one shared functions will be able to be performed by any one of the above classified employees.

The principal point is that many traditional demarcations have been resolved.

The Commission was required to arbitrate on a relatively small number of outstanding proposed shared functions and these have now been incorporated into the document contained in Exhibit S1.

The only comment that is required is that in respect of functions involved with Winders and the "Driving of Rope Change Winch", employees who have gained the appropriate level of expertise are first to be approved by the appropriate Inspector of Mines.

From what Mr Skinner indicated in the proceedings, having regard to the Mines Inspection Regulations, this procedure is not necessary, however I consider that adherence to it will overcome the concerns raised by Mr Best on behalf of the Federated Engine Drivers' and Firemen's Association of Australasia, Tasmanian Branch (FEDFA).

Whilst dealing with the matter of shared functions I take the opportunity to express my appreciation for the courtesies extended to the Commission when on site inspections where first hand information was provided on the functions in dispute as well as a whole range of other award restructuring issues.

The commentary and assistance provided by Mr P Morgan and others was indeed helpful.

Contractors Agreement

The use of contract labour at Pasminco has, at times, been the subject of disputation between the parties. To overcome this a comprehensive Contractor's Agreement has been included in Exhibit S1.

I have noted the terms of the Agreement, which is not intended to be filed with the Commission. I support the rationale, terms and conditions applicable to the use of contractors and regard the documentation on that matter as forming part of the proposals which will elevate the Pasminco Rosebery Mine to a significantly higher operating plane.

Special Case

Mr Best for the FEDFA indicated in the course of the proceedings that it was the intention of that organisation to seek an Anomalies Conference to consider a Special Case application.

As the intention to seek Special Case status for a small number of existing classifications was signalled early in these hearings and given that some procedural matters had to be overcome by the FEDFA to enable it to access the Anomalies Conference in the first instance, which I understand will be in the very near future, increases in wage rates endorsed in this decision will be interim for the classifications in question.

Of course the outcome of the Anomalies Conference is a matter for the President.

Decision

The restructuring initiatives placed before me in these proceedings are comprehensive. In every respect I consider that the requirements of the Structural Efficiency Principle have been satisfied.

The parties have deliberately not sought a first instalment structural efficiency increase, when it was available in November last year. They preferred instead to bring to fruition a fundamental structural review of the award. This review has, as I have previously said, been in train for over two years. That the parties have stuck to the task is a credit to them.

They have produced for the Commission's endorsement a new way of organising work activities at Pasminco, which best meets the requirements of employer and employee alike. Having regard to all of the material before me I endorse the award restructuring initiatives contained in Exhibit S1.

Operative Date

Accordingly the operative date for the consequential increase in wage rates will be from, in respect of the first instalment structural efficiency adjustment, the first full pay period to commence on or after 23 November 1989.

The second instalment structural efficiency adjustment, including all consequential award variations giving effect to Exhibit S1, will be from the first full pay period to commence on or after the date of this decision.

Award Variations

Whilst the parties have sought the variation of the Mining (Lead-Zinc) Award, application T.2486 of 1990 contemplates the making of a new award; the Pasminco Rosebery (Mining) Award.

The intention of the parties is to incorporate into the new award relevant provisions from the Mining (Lead-Zinc) Award and all of the matters germane to this "structural efficiency" decision which are appropriately included in an award document.

Given that circumstance and that initial proceedings in T.2486 in respect of the making of the Pasminco Rosebery (Mining) Award have been held, I will, for the purposes of decision, join matter T.2486 with T.2487 the latter being the application made in respect of the Mining (Lead-Zinc) Award.

Therefore, rather than vary the Mining (Lead-Zinc) Award to give effect to structural efficiency changes, all of the appropriate structural efficiency matters will be included in the new Pasminco Rosebery (Mining) Award which is made operative from the date of this decision.

In the circumstances and in order to accommodate the first (November 1989) structural efficiency adjustment I have decided that the relevant order will not be incorporated into the Mining (Lead-Zinc) Award. This is because the classification structure applying at Pasminco at that time, i.e. November 1989, and now further modified consequential to my endorsement of the restructuring proposals, does not have any relevance to that award. The order dealing with the November 1989 adjustment is to provide Commission endorsement for those rates of pay and to provide a record of those particular adjustments.

The Mining (Lead-Zinc) Award will be rescinded following the transfer of relevant provisions from that award to the Pasminco-Rosebery (Mining) Award and following the final settling of all matters in the new award.

In summary therefore the Pasminco Rosebery (Mining) Award is established and at this stage will contain the following clauses:

1. Title
2. Scope
3. Arrangement
4. Date of Operation
5. Parties and Persons Bound
6. Definitions
7. Wage Rates

The Commission format for awards will be implemented when the Pasminco Rosebery (Mining) Award is varied to include all other relevant clauses. To expedite this matter, resumption of hearing will be on 10 September 1990.

At that time the parties should be ready to address the Commission on:

(i) additional clauses to be included in the Pasminco Rosebery (Mining) Award;

(ii) the question of award interest (see (iii) below) in respect of the new award. It should be noted that I have included the parties and persons bound in the Mining (Lead-Zinc) Award as the parties in the new award;

(iii) the union parties must ensure in respect of determination of interest that they make written application to the Registrar pursuant to Section 65A(1) of the Industrial Relations Act 1984 to put in progress proceedings for the amendment of certificates of registration;

(iv) the parties are also to address the Commission on the rescission of the Mining (Lead-Zinc) Award.

Monitoring Process

The structural changes envisaged by the parties and which have now been endorsed by the Commission are far reaching.

All of those changes are ready for implementation and they will impact throughout the Rosebery Pasminco operating environment.

To assist the parties in the transition from the existing structure to the new I have decided to conduct a site monitoring conference in 2 October 1990 or earlier at the request of any of the parties.

Subsequently I will conduct a monitoring hearing on 26 November 1990 or earlier at the request of any one of the parties.

Orders

The appropriate orders in respect of the totality of this decision are attached.

 

R K Gozzi
COMMISSIONER