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T3232

 

TASMANIAN INDUSTRIAL COMMISSION

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

Health Services Union of Australia
Tasmania No. 1 Branch

(T.3232 of 1991)

HOSPITALS AWARD

 

COMMISSIONER R J WATLING

28 October 1991

Wage rates - expense related allowances - State Wage Case August 1991 - 2.5% increase - granted - Division A only

INTERIM DECISION

The increases in wage rates pursuant to the second stage of the Structural Efficiency Principle were granted to the Hospitals Award from the first full pay period to commence on or after 16 January 1991.

Part of that package contained (1) a programme and timetable to finalise negotiations on the new classification structures to be inserted in the award and (2) an understanding on award modernisation and the need for training.

In my decision on that matter (T.2709 of 1990) I stated:

"Having considered the submissions of the parties I have arrived at the conclusion that the package taken as a whole including the ongoing programme relating to classification structures, is sufficient to warrant the granting of the second structural efficiency increase and I decide accordingly."

The delay in accessing the 2.5% increase, arising out of the State Wage Case decision of 13 August 1991, has come about because the parties had not complied with the undertaking they gave the Commission in respect to (a) the programme and timetable to finalise negotiations on the new classification structures to be inserted in the award and (b) award modernisation and training needs.

During the course of this hearing on 18 October 1991 the parties indicated their preferred position, when dealing with this application, was to consider each Division contained in the award separately and measure the change against the Structural Efficiency Principle. They also requested the Commission to progressively hand down its decision on the completion of its review on each of the clearly delineated divisions.

This I am prepared to do, however, there will be no need for me to deal with,

    Division B - Employees in establishment providing care for aged persons, and

    Division D - Employees of homes for handicapped persons and in the case of St Giles Society also includes employees engaged in auxiliary services as provided,

because those divisions have been the subject of a separate application (T.3478 of 1991) in which the Commission, in its decision dated 18 October 1991, endorsed the making of a new award which will eventually see the two previously mentioned divisions removed from the Hospitals Award.

That being the case I am left to consider,

Division A - Staff employed in private hospitals, and

Division C - Blood Bank Services.

Division A

As part of finalising the Structural Efficiency programme for this division, the Commission was informed by the parties that they had reached an agreement that would see new classification structures and the establishment of relativities and classification definitions inserted in this award in a like manner to that which applies in the public sector.

Those issued in the public sector are before a Full Bench of the Commission for arbitration and are waiting a decision1.

As a result of this hearing it was the parties clear intention to establish a definite nexus between the wage rates and classification structures and standards applying in the public hospitals and the Hospitals Award.

The agreement was tendered in the form of an exhibit (HSU 3) and reads as follows:

"MEMORANDUM OF UNDERSTANDING
BETWEEN
THE TASMANIAN CONFEDERATION OF INDUSTRIES
REPRESENTING ITS MEMBERS WHO ARE PRIVATE
HOSPITAL EMPLOYERS

AND

THE HEALTH SERVICES UNION OF AUSTRALIA
TASMANIA NO. 1 BRANCH, REPRESENTING ITS
MEMBERS EMPLOYED IN PRIVATE HOSPITALS
IN TASMANIA

1. The parties agree to establish an independent common rule private Hospitals Award in Tasmania as a consequence of, and in part resolution of, matters Nos. T.2709 of 1990 and T.3478 of 1991.

2. The parties agree that this Award will be a paid rates Award.

3. The parties agree that a formal nexus exists in respect to wage rates between Division A of the Hospitals Award No. 1 of 1991 (Consolidated) and the Hospital Employees (Public Hospitals) Award.

4. The Union recognises the right of the Tasmanian Confederation of Industries to negotiate and intervene on all matters relevant to this nexus.

5. The parties reserve their rights to argue opposing dates of effect on any matter but recognise that any future date of effect which is negotiated or arbitrated will have common application to both public and private Hospitals' Awards.

6. The parties reserve their position on conditions of employment in respect to the Hospitals Award but recognise that certain public sector conditions of employment are not relevant to the private sector."

The parties also presented submissions on items (a) to (g) contained in the Principle 2 - Structural Efficiency and agreed to include clauses in the award dealing with consultative procedures and giving the employer the ability to direct employees to carry out such duties as are within the limits of the employee's skill, competence and training.

Over the years wage rates contained in Division A of this award have been almost identical to those applying in the public hospitals and therefore I can understand and support the view of the parties and their desire to continue that position, especially in a small state such as Tasmania.

As a result of the previously mentioned agreement (Exhibit HSU 3) which I endorse, classification structures and standards cannot be finalised in this award until the deliberations of the Full Bench dealing with the public sector matters2 are known.

Given the new classification structures are now out of the hands of the parties and the results of the Full Bench decision3 will be reflected in Division A of the Hospitals Award and in all other respects the parties can satisfy the Structural Efficiency Principle enunciated in the State Wage Case decision of the 13 August 1991, I am prepared to grant the 2.5% increase to Division A of the award. This will be operative from the first full pay period on or after 28 October 1991.

There was some discussion during the course of the hearing about the words to be contained in the new clause dealing with consultative procedures.

The HSU supported the view that a consultative mechanism shall be established at each enterprise. The Tasmanian Confederation of Industries was of the opinion that it would be more appropriate to use the word may instead of "shall".

I support the HSU's view on this matter and in doing so I rely on Principle 2 - Structural Efficiency, subclause (c) which states:

"that the award requires enterprises to establish a consultative mechanism and procedures appropriate to their size, structure and needs for consultation and negotiation on matters affecting their efficiency and productivity."

Therefore Exhibit HSU 6 will be adopted.

This is an interim decision as I now intend hearing submissions in respect to Division C - Blood Bank Services. That hearing will commence at 10.30 a.m. on 12 November 1991.

The orders giving effect to this interim decision are attached.

 

R J Watling
COMMISSIONER

Appearances:
Mr R Warwick for the Health Services union of Australia Tasmania No. 1 Branch.
Mr P Targett for the Tasmanian Confederation of Industries.

Date and place of hearing:
1991
September 10
October 11
October 18
Hobart

1 T. Nos. 2399, 2469, 2471, 2475, 2480, 2508, 2511 , 2586, 2605 of 1990
2 ibid
3 ibid