TASMANIAN INDUSTRIAL COMMISSION

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

Transport Workers' Union of Australia,
Tasmanian Branch
(T.3753 of 1992)

CARRIERS AWARD

Conditions of employment - allowances - expense and work related allowances

REASONS FOR DECISION

This was an application by the Transport Workers' Union of Australia, Tasmanian Branch (the Union) for variations to be made to the Carriers Award (the Award).

The Union sought increases in the allowances specified in the Award both expense related and work related.

The basis of the Union's submissions in support of its application was somewhat complicated in that a number of factors contributed to the end result figure claimed in most cases.

The factors involved were:

• The intended correlation between the allowances specified in the Award and equivalent allowances specified in counterpart awards of the Australian Industrial Relations Commission (the AIRC). Over a number of years, through errors and omissions the respective amounts of the allowances had become unrelated.
• Given the intended State and Federal correlation, the correction of the allowances prescribed in the Carriers Award, whether by application of the Consumer Price Index (CPI) increases in the case of expense related allowances or by application of National/State Wage increases in the case of work related allowances, from an established historic starting point, should result in the reestablishment of the correlation up to the present.
• Due to the occurrence of other errors and omissions over the historic period of time, a not unusual factor, some few allowances still required correction to bring about correlation.

By means of a number of detailed and relevant exhibits the Union was able to demonstrate quite adequately that once the factors mentioned were correctly accounted for, mathematically at least, the allowances in the Award could be increased properly to correlate with equivalent allowances in the counterpart AIRC Awards.

The Union submitted that it had substantiated the technical and historical reasons why the allowances should be increased. In addition, the Union submitted that this catch-up exercise fully satisfied the requirements of the Guidelines of the Commission as to increases in allowances.

The Union further submitted that, as it was not seeking a retrospective date of operation for the increases, employers up till the present had been carrying a lesser burden than they might have.

The Union said that its basis of argument in this case was the same as that put forward successfully in matter T2258 of 1989 which was an application for increases in the allowances specified in the Tasmanian Gaming Commission Staff Award.

The date of operation sought by the Union was the first full pay period to commence on or after 1 June 1992.

The Tasmanian Confederation of Industries (the Confederation) quoted the Guidelines of the Commission as to increases in allowances and confirmed its view that the Union had thoroughly demonstrated its cased based upon those Guidelines.

The Confederation was reluctant in its assent to the Union's application because, it said, no matter what the merit of the case, the increases involved were significant and would be an added burden on employers already struggling in the presented depressed economic climate. The Confederation advised, however, that altogether it did not oppose the application although it stipulated that this was without prejudice to its approach to any similar future applications. It did not oppose the operative date sought by the Union.

For the sake of completeness the relevant Guideline of the Commission, in so far as it relates to the basis of this case, reads as follows:

"A1lowances

1. Existing Allowances

(a) Existing allowances which constitute a reimbursement of expenses incurred may be adjusted from time to time where appropriate to reflect the re Levant change in the leve 1 of such expenses.

(b) Existing allowances which relate to work or conditions which have not changed may be adjusted from time to time to reflect State wage increases, except where a flat money amount has been awarded ..."

In the light of what has been outlined before I am well satisfied that the requirements of the Guidelines have been met in this case: the Award will be amended as requested operative from the first full pay period to commence on or after 1 June 1992.

I take this opportunity to commend the Union for its thorough and complete research and presentation of the evidence necessary to carry this application.

An order is attached.

P A Imlach
COMMISSIONER

Appearances:
B Hansch for the Transport Workers' Union of Australia, Tasmanian Branch.
S Clues for the Tasmanian Confederation of Industries.

Date and place of hearing:
1992.
Hobart:
April 22.