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T2528 and T2606

 

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

 

T.2528 of 1990 IN THE MATTER OF AN APPLICATION BY THE FEDERATED CLERKS UNION OF AUSTRALIA to vary the AERATED WATERS AWARD
   
  AND
   
T2606 of 1990 IN THE MATTER OF AN APPLICATION BY THE FEDERATED LIQUOR AND ALLIED INDUSTRIES EMPLOYEES' UNION (TASMANIAN BRANCH) to vary the AERATED WATERS AWARD
   
  RE: SECOND STRUCTURAL EFFICIENCY ADJUSTMENT IN ACCORDANCE WITH THE WAGE FIXING PRINCIPLES
   
PRESIDENT F. D. WESTWOOD 7 AUGUST 1990
   

INTERIM DECISION

 
   
APPEARANCES:  
   
For the Federated Liquor and Allied Industries Employees' Union
Tasmanian Branch
- Mr. M. Gard
   
For the Federated Clerks Union of Australia,
Tasmanian Branch
- Mr. D. J. Fry
   
For the Tasmanian Confederation of Industries - Mr. T. J. Abey
   
DATE AND PLACE OF HEARING:
   
18.7.90 Hobart  

At the commencement of the hearing on this matter, Mr. Abey informed the Commission that the agreement between the Federated Liquor and Allied Industries Employees' Union (FLAIEU) and the Tasmanian Confederation of Industries (TCI) sought to do three things:

(i) to address the requirements of the structural efficiency provisions of the Wage Fixing Principles for the second increase;

(ii) to adjust award rates of pay to reflect the second tier increase of 4 per cent; and

(iii) to recognise in the award the 38-hour week.

Mr. Abey outlined the structural efficiency agreement provisions which, in order of appearance in the award, are:

1. Deletion of the special allowance relating to coldrooms.

2. Provision to allow annual leave to be taken in two or more separate periods, subject to genuine, written consent.

3. Insertion of a new Hours of Work clause which -

    (a) comprehends the 38-hour week;

    (b) permits any existing agreed working hours arrangements to continue;

    (c) extends ordinary hours to 6.OOam to 6.OOpm;

    (d) provides for 12-hour shifts subject to certain criteria;

    (e) provides for employees to work for six hours without a meal break in certain defined circumstances;

    (f) provides for starting times to be changed with 48 hours notice.

4. The mixed functions clause shall not apply where an employee is performing work as part of a structured training programme.

5. Changes to the overtime clause in respect of enterprise agreements and providing time off in lieu of overtime payment at the penalty equivalent.

6. Fortnightly pay and payment by electronic funds transfer are available subject to negotiation at an enterprise level.

7. The Proportion of Juniors clause to be deleted.

8. Sick leave, in the first three months of service, to accrue on a monthly basis. Any single day absence on sick leave continuous with a weekend, public holiday or rostered day off, to require evidence of genuine illness or incapacity.

9. The insertion of an Enterprise Agreements clause in identical terms to that recently introduced into the Retail Trades Award.1

It was noted that the parties were continuing negotiations on a new classification structure for the award and would be in a position to report progress in September.

As to the incorporation of the 4% second tier adjustments in the award, Mr. Abey informed the Commission that one of the three principle companies subject to this award had its second tier negotiations ratified and registered in this Commission on 25 November 1987. The other two companies reached their second tier agreements on an enterprise basis but their agreements had not been registered in the Commission.

A similar position existed in relation to the 38-hour week, even though the 38-hour week, as Mr. Abey put it, "has been in place in the field for at least 6 years."2

Documentation of circumstances prevailing at Cascade and Coca Cola was provided to the Commission to substantiate their positions.

Mr. Abey submitted that the structural efficiency package provided "every realistic variation to the award to make it more flexible and (that it was) consistent with the structural efficiency principle."3

Mr. Gard supported the agreed package and confirmed the agreement on operative date.

After expressing concern that the FCU had not been included in the negotiations, Mr. Fry obtained an assurance from the employers that he would be advised in future when meetings are to be held. Following a brief private conference Mr. Fry indicated that he accepted the proposition outlined by Mr. Abey and requested the Commission to vary rates of pay for clerks in accordance with the structural efficiency principle.

CONSIDERATION OF THE ISSUES

Whilst I recognise the parties' wishes to conduct their affairs through the medium of enterprise agreements, I consider that the parties have a responsibility to ensure that an award, such as this, should not become so far out of date in respect to such significant factors as rates of pay and hours of work. However, I accept Mr. Abey's reasons why that has occurred and I also accept his argument that the award should now be varied to reflect current rates and standards. I trust that the parties will ensure that the award is kept up to date in the future.

The arrangements in respect of the second tier agreement and the 38-hour week are accepted, as is the proposed structural efficiency package which satisfies the Wage Fixing Principles of this Commission, and the award will be varied accordingly with effect from the agreed operative date of the first full pay period commencing on or after 18 July 1990.

The order and correction order varying the award is attached to this decision.

 

F.D.Westwood
PRESIDENT

1 T.2401 of 1990, decision 29.6.90
2 Transcript, p.3
3 Transcript, p.9