IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.23 application to vary an award

The Federated Miscellaneous Workers Union of Australia
Tasmanian Branch
(T.2851 of 1990)

CLEANERS AWARD

Wage Rates State Wage November 1989 Structural Efficiency Principle Second Stage

REASONS FOR DECISION

This was an application by The Federated Miscellaneous Workers Union of Australia, Tasmanian Branch (the Union) made under Section 23 of the Act for the second Structural Efficiency Principle (SEP) increase to be applied to the Cleaners Award (the Award) and also for the first Minimum Rates Adjustment to be applied to the Award.

In the first instance Mr K O'Brien, who appeared for the Union, advised that after long negotiations, settlement had been reached between the parties and a package of items providing for the implementation of SEP changes in the Award would be presented to the Commission. He said the changes were very much the same as those already endorsed for the same areas by a number of interstate decisions, specifically in New South Wales, Victoria and the Australian Capital Territory.

Mr M Sertori appeared for the Tasmanian Confederation of Industries (the Confederation) and Mr O'Brien deferred to him for the explanation of the package and the draft order which were set out also in two exhibits.1

With the aid of these exhibits Mr Sertori advised that the main items agreed were as follows:

• The title of the Award was to be changed to the "Cleaning and Property Services Award." This was to better reflect the actual situation and trends in the cleaning industry Mr Sertori submitted.

• The scope of the Award was to be varied for the same reasons as the change in the title. It was submitted that the cleaning industry has changed significantly in that contractors now take on the full care or supervision of a building not just the cleaning. The new scope clause referred to such activities as pollution control, general maintenance, repair and ancillary security services. At one time during the hearing the word "janitor" was used to convey the type of duties envisaged.

• A new classification structure was to be introduced replacing the previous two cleaner classifications with three "Property Service Employee" graded positions. In line with SEP aims it was expected that employees, through training, would be able to progress through the grades upon gaining appropriate certification.

• This proposal was to be subject to a six-month trial period.

• The amounts of wage increases involved were initially $12.50 and $15.00 per week plus the minimum rates adjustments (MRA) which were to be absorbed fully into existing over-award payments. After the initial MRA further such adjustments were to be made as required by the current Principles.

• Leading hand allowances were to be increased by 3% and the meal allowance was to be increased from $4.90 to $5.00. Allowances for steam cleaning, window cleaning and toilet cleaning were to be deleted.

• An agreement covering junior administrative officers was to be registered with the Commission.

• A more flexible broken leave provision was to be introduced.

• Some obsolete definitions were to be deleted.

• The Hours of Work clause was to be improved by consolidation and deletion of repetitive items and by provision for an increased spread of hours (from 6.00 am to 6.00 pm), the option of 12-hour shifts and an increase in the number of rostered days off able to be stored. Day workers and shift workers were to be distinguished.

• A provision for meal periods not to fall due until after 3 hours work and to be availed of before 5 hours worked was to be introduced.

• The Overtime clause was to be revised to include time off in lieu at the penalty equivalent and in certain circumstances overtime was to count towards ordinary time worked.

• the provisions for part-time and casual employees were to be entirely revised including:

(i)  time off in lieu of overtime payment at the penalty equivalent.

(ii)  overtime worked under certain circumstances was to count towards ordinary time worked.

• A provision for a 7 day "cooling off" period was to be introduced in the Reference of Disputes clause.

• Variations in the times for taking rest periods were to be permitted by agreement.

• Sick leave absences for single days were to be proved by a statutory declaration or a medical certificate.

• By agreement public holidays were to be able to be worked at ordinary time and substituted for another day.

• The Superannuation clause was to be incorporated in the Award and improved as to enforcement.

Mr Sertori also produced an exhibit of a draft order reflecting the matters agreed as part of the Award restructuring: he advised certain amendments and generally spoke to the exhibit. He also advised (as set out in one of the exhibits) that there was to be a 6 months trial period to test the new classifications.

Minimum Rates Adjustment

The Minimum Rates Adjustment (MRA) prescriptions in the State Wage Decision of 30 October 1989 are as follows:

"Minimum rates adjustments allowable in the State Wage Case decision of 27 October 1989 shall be in accordance with the following:

(i)  the appropriate adjustments in any award will be applied in not less than 4 instalments which will become payable at 6 monthly intervals;

(ii)  in appropriate cases longer phasing-in arrangements may be approved or award and/or parties may agree that part of a supplementary payment should be based on service;

(iii)  the first instalment of these adjustments will not be available in any award prior to 1 January 1990 or 3 months after the variation of the particular award to implement the first stage structural efficiency adjustment, whichever is the later;

(iv)  the second and subsequent instalments of these adjustments will not be automatic and applications to vary the relevant awards will be necessary; and

(v)  acceptance of absorption of these adjustments to the extent of equivalent overaward payments is a prerequisite to their being applied in any award.

Mr Sertori advised that between the parties the agreed rate for the Grade III classification (the maximum) in the Award was $407 per week or 100% of the tradesman's rate approved in the Federal Metal Industries Award. This was on the basis that the skills and responsibilities were considered to be equivalent. In the same manner the Grades I and II classifications in the Award were to be set respectively at 87.4% and 92.4% of the Metal Industries Award tradesman's rate. He confirmed that these relativities and amounts were the same as those endorsed in three other jursdictions for the same area of industry or types of classifications.

At the hearing of this application Mr Sertori produced an exhibit which set out in detail how the MRA amounts were to be progressively applied to each of the three classifications to be provided in the Award. The parties had agreed that there would be five MRA instalments.

For example, the first MRA instalment for the Grade I classification was calculated as follows:

Mr Sertori stressed that the MRA instalments were to be absorbed in any over-award payments and such a provision was included in the amendments to the Award.

Mr O'Brien confirmed the submissions of the Confederation and the operative date for the changes including the second SEP increase and the first MRA, the first full pay period commencing on or after 21 December 1990 with the other MRA's to commence to apply, as required, six months after that by application. He also stressed that the changes proposed for the Scope clause were really only an extension of the present coverage and they should be viewed in the context of the words "caretaking and janitor." It was a total service provision concept, he said. The Union was recognised nationally as the "principal" union in the cleaning industry. The proposed wage structure in the Award was well-established interstate, he said.

Mr O'Brien further explained that the trial period included six months for review and (the initial) three months for the employers to implement concurrently.

At the hearing and when I reserved the decision in this matter I indicated that I had reservations as to two specific proposals, one as to scope and the other as to annual leave.

I have decided to accept both proposals on the basis that in each case the parties have presented with agreement and the changes proposed truly reflect the intent and the spirit of the SEP. Further, on reflection, I do not consider that the proposals in these particular matters are contrary directly to award standards generally.

I am satisfied that the parties in this application, in the words of the Principle, "have cooperated positively in a fundamental review of the Award and are implementing measures to improve the efficiency of industry and provide workers with access to more varied, fulfilling and better paid jobs."

The Award will be varied in the manner sought from the first full pay period commencing on or after 23 December 1990. This will introduce, in effect, a new award. An order is attached.  Correction Order

P A Imlach
COMMISSIONER

Appearances:
K O'Brien for The Federated Miscellaneous Workers Union of Australia, Tasmanian Branch.
M Sertori with P McLean for the Tasmanian Confederation of Industries.

Date and place of hearing:
1990.
Hobart:
December 20.

1 Exhibits S1 and S2a