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Tasmanian Industrial Commission

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T2419, T2730, T3554, T2515, T2604, T2731

 

TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.23 application for awards and variation of awards

National Union of Workers,
Tasmanian Branch

(T.2419 of 1990)
(T.2730 of 1990)
(T.3554 of 1991)

Federated Clerks Union of Australia,
Tasmanian Branch

(T.2515 of 1990)

Transport Workers' Union of Australia,
Tasmanian Branch

(T.2604 of 1990)

WHOLESALE TRADES AWARD and Correction Order

and

National Union of Workers,
Tasmanian Branch

(T.2731 of 1990)

ELECTRICAL ENGINEERS AWARD and Correction Order

 

PRESIDENT

20 DECEMBER 1991

Wholesale Trades Award - Scope and Classification Structure, and Minimum Rates Adjustments

Electrical Engineers Award - removal of Wholesale Sellers of Electrical Goods

REASONS FOR DECISION

For the National Union of Workers (NUW), Mr. Richardson outlined the objectives of the union which were:

  • to delete references to Wholesale Sellers of Electrical Goods from the scope and other parts of the Electrical Engineers Award, and to include appropriate provisions covering such activity in the Wholesale Trades Award.

  • to broadband the classifications involved in a manner consistent with the treatment of similar classifications in the Wholesale Trades Award;

  • to provide for the rates of pay for these classifications to receive the 3% second structural efficiency adjustment available under the 1989 Wage Fixing Principles; and

  • to provide for a further 2.5% increase available in accordance with the August 1991 Wage Fixing Principles.

In addition Mr. Richardson indicated the union's intention to seek the second minimum rate adjustment in accordance with the State Wage Fixing Principles to apply to the Stores and Warehousing, and to the Manufacturing and Packing Streams. In that respect it was drawn to the parties' attention that an appropriate application would be necessary in order for these latter proceedings to commence.

Mr. Richardson submitted that by recasting the scope of the two awards the wholesale warehousing and distribution functions of electrical wholesalers would be catered for in a more appropriate and meaningful manner, and similarly the Electrical Engineers Award could be restructured to enable the industry it presently covers to be dealt with more efficiently. In addition the number of unions involved in the Electrical Engineers Award would be significantly reduced.

Some modification to the classification structure was required to reflect the counter sales nature of several electrical wholesalers. The union tendered a proposed broadbanding arrangement which, it was submitted, was consistent with the process undertaken in the earlier major restructuring of the Wholesale Trades Award, and which would achieve an orderly transfer of the electrical wholesaling classifications into that award. The union proposed an interim arrangement for the "driver" and "commercial traveller" classifications pending further review. It was contended that differences in award rates of pay would disappear over time, consistent with the introduction of minimum rates adjustments.

The union tendered the proposed new classification structure for electrical wholesaling employees, excluding detail relating to Level 5, which was still the subject of discussion between the parties. It was proposed that the classification structure should be the subject of a testing exercise which should last no longer than six months.

Provisions of the Electrical Engineers Award which would be affected by the NUW's proposals were identified as;

  • Clause 2, Scope - delete paragraph (c) Wholesale Seller of Electrical Goods

  • Clause 6, Parties and Persons Bound - delete subparagraph (iv) and the National Union of Storeworkers etc.

  • Clause 7, Definitions - delete definitions of "Storeman (Grade II)" [twice appearing]; "Probationary Traveller", "Section Manager and/or buyer/orderer", "Senior salesman" or "senior saleswoman"

  • Clause 8, Wage Rates - delete Division C - Wholesale Seller of Electrical Goods

  • delete all clauses dealing with conditions for employees in Division C - Seller of Electrical and/or Radio Equipment.

The Commission's attention was drawn to the fact that the classifications drawn from the Electrical Engineers Award had not received the second structural efficiency adjustment available under the 1989 Principles. The union argued that -

(i) by broadbanding the classifications in a manner similar to the existing Wholesale Trades Award, and

(ii) by applying the other provisions of that award which had satisfied the Commission previously these classifications were entitled to the appropriate increase of $12.50, or $15.00 per week.

The union submitted that these classifications should also be awarded a further increase of 2.5% consistent with the requirements of the Structural Efficiency Principle as set out in the Wage Fixing Principles determined on 13 August 1991. The union contended that the parties had met the demands imposed on them by paragraphs (a) to (g) of those Principles and that had been recognised by the Commission in its decision of 28 August when the Wholesale Trades Award was varied to apply the 2.5% increase to all classifications. These classifications would now be subject to the same award arrangements, including those facilitative provisions which had previously found favour with the Commission. The operative date of such an increase should be one month after the date of effect of the second structural efficiency adjustment.

Any consideration of minimum rates adjustments for the classifications would be deferred until the testing process had been concluded.

The representatives of the SDAEA and FCU indicated their support for the proposed variations.

Application T3554 of 1991 was lodged by the NUW the following day, 8 November 1991, seeking the second minimum rates adjustments for all classifications in the Stores and Warehousing and the Manufacturing and Packing Streams and it was joined with all other matters. The Commission was informed that the first minimum rates adjustment had been effective since 23 April 1991 and the union was entitled to the second adjustment six months from that date. The union sought an operative date of 23 October 1991.

In response Mr. Targett, and later Mr. Sertori for the employers, indicated their in principle consent to the proposals, subject to minor refinement for the purposes of accuracy. In relation to the classifications being transported from the Electrical Engineers Award to the Wholesale Trades Award it was conceded that the Principles dealing with the second structural efficiency adjustment were satisfied, as were the Principles affecting the 2.5% increase. An operative date for the second structural efficiency increase of the first full pay period commencing on or after 7 November 1991 was agreed, provided the orders could be issued in a relatively short time. The 2.5% increase to take effect one month later and the second minimum rates adjustment for the other two streams from the date of the Commission's decision. The parties were to submit the necessary draft orders within one week.

Following the second hearing day further draft orders were submitted in an endeavour to accommodate the intent of the proposals. These have been amended in subsequent drafting conferences with the parties to give effect to my conditional approval of the applications which had been given during the proceedings.

The removal of wholesalers from the Electrical Engineers Award is a logical advancement for the purposes of the structural efficiency exercise, both in terms of the Electrical Engineers Award and the Wholesale Trades Award.

In the circumstances I am now satisfied that the proposals are appropriate and meet the requirements of the Principles. However, given the difficulties, and lapse of time associated with drafting the orders, I am not prepared to award the retrospectivity sought by the parties. Orders giving effect to this decision are attached.

The unions which are cited in the Parties and Persons Bound Clause of the Electrical Engineers Award which now have no formal interest in the award should take appropriate action in accordance with Section 65A of the Act.

OPERATIVE DATES

(a) Provisions concerning wage rates and conditions of employment in relation to the Wholesale Sellers of Electrical Goods to be deleted from the Electrical Engineers Award and inserted in the Wholesale Trades Award shall take effect from the first full pay period commencing on or after 20 December 1991.

(b) The application of the 2.5% increase (August 1991 State Wage Fixing Principles) to the above wage rates, is now contained in the Wholesale Trades Award and shall take effect from the first full pay period to commence on or after 20 January 1992.

(c) The second minimum rates adjustment applicable to classifications in the Stores and Warehousing and the Manufacturing and Packing Streams of the Wholesale Trades Award shall take effect from the first full pay period commencing on or after 20 December 1991.

 

F. D. Westwood
PRESIDENT

Appearances:
Mr. P. Richardson with Mr. D. Strickland for the National Union of Workers, Tasmanian Branch
Mr. G. Warn for the Transport Workers Union of Australia, Tasmanian Branch
Mrs. H. Dowd for the Federated Clerks Union of Australia, Tasmanian Branch
Mr. D.A.C. McDougall for the Tasmanian Chamber of Retailers
Mr. P. Targett for the Tasmanian Confederation of Industries

Dates and Place of Hearing:
1991
Hobart
November 7, 14, 27