TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.29 application for hearing in respect of an industrial dispute

The Australasian Meat Industry Employees Union,
Tasmanian Branch
(T.3608 of 1991)

and

R.J. Gilbertson Longford Meat Company

Redundancy claim

REASONS FOR DECISION

In this matter The Australasian Meat Industry Employees Union, Tasmanian Branch (AMIEU) sought the assistance of the Commission in respect of a dispute with the Longford Meat Company (the employer) concerning the quantum of retrenchment pay made to two employees who had achieved twenty five years and twenty years service respectively.

Whilst I recognised that the employer had increased the terms of a redundancy package endorsed by the Commission in 1988 I considered that for the employees in question, one who since died, that the cut off point for recognising service for calculation purposes should be extended to 14 years. I determined that there should not be any variation to the remainder of the package offered by the employer.

In reaching my conclusions in this matter the parties are reminded that in 1988 the maximum provided by the formula in place at that time was 14 weeks pay.

As indicated in the proceedings I am of the opinion that a new retrenchment agreement should be negotiated between the employer and the AMIEU given the frequency, unfortunately, of retrenchments. In making that observation the Commission is mindful of the fact that each case is considered on its merits and no set standards apply for employees subject to awards of this Commission. However, as I have indicated, retrenchments are not uncommon in the business of the employer and it may be appropriate that an agreement be made to enable these matters to be dealt with away from a dispute situation.

Obviously I am acutely aware of the difficulties in the meat industry and in industry generally. Notwithstanding in the current recessionary economic climate employees, who have been made redundant or have been retrenched because of economic downturn, also face, in the main, extremely bleak prospects for new employment. Therefore the Commission urges everything possible is done to assist retrenched employees to find alternative employment when severances become inevitable.

R.K. Gozzi
COMMISSIONER

Appearances:
Mr J. Swallow for The Australasian Meat Industry Employees Union, Tasmanian Branch.
Mr T. Edwards with Mr M. Flynn and Mr O. Jack for the Longford Meat Company.

Date and Place of Hearing:
1991:
Hobart
December 13