T4489 and T4490
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TASMANIAN INDUSTRIAL COMMISSION Industrial Relations Act 1984 The Australasian Meat Industry Employees Union, MEAT TRADES AWARD
Award variation - superannuation contributions REASONS FOR DECISION These applications by The Australasian Meat Industry Employees Union, Tasmanian Branch (AMIEU), were for the variation of the Abattoirs Award and the Meat Trades Award in respect of the deletion of occupational superannuation provisions as set out in Clauses 50 and 48 of those awards respectively. The applications were predicated on the fact that the legislation in the Superannuation Guarantee (Administration) Superannuation Act 1992 (the Superannuation Act) rendered redundant award regulation of occupational superannuation contributions required to be made by employers. Effectively the submissions of the parties were that the current award-based occupational superannuation contribution level of 3 per cent of ordinary time earnings has been overtaken by the Superannuation Act. That Act requires employers with payrolls of $1,000,000 or less to contribute 3 per cent, rising to 4 per cent from 1 July 1994. In the case of payrolls of over $1,000,000 a 4 per cent contribution was required to be made from 1 July 1992; which rose to 5 per cent from 1 January 1993. Having regard to those legislative prescriptions and Section 32(1C) of the Industrial Relations Act 1984 (the Act) which prevents the Commission from including more than 3 per cent in awards because that is the quantum provided for by the wage fixing principles, the parties contended that superannuation arrangements in the awards in question (the same would apply to all State awards) had been superseded. In any event the Superannuation Act, which is a Commonwealth Act, takes precedence over superannuation provisions in State awards. Having regard to the foregoing I recognise the view of the parties, however I have decided to refrain from deleting the current award provisions because I consider that the whole question of occupational superannuation in awards should not be considered in isolation. As it stands the award still imposes obligations on employers in respect of 3 per cent contributions and the funds to which these have to be paid into. Also variations to existing arrangements require the approval of the Commission which must satisfy itself in respect of Sections 32(1B)(a) and (b) of the Act. Obviously if the tests imposed by those particular sections of the Act are to apply to occupational superannuation contributions outlined in the Superannuation Act, then the wage fixing principles will require alteration in order to overcome the limitation contained in Section 32(1C) of the Act. On balance having regard to the provisions of the Act dealing with superannuation it appears more appropriate at this time, in my opinion, to maintain the existing award mechanisms which are only superseded in respect of contribution levels, at this point, where payrolls are in excess of $1,000,000. Also as I have indicated the entire question of award-based occupational superannuation should, in my opinion, be addressed in a much wider context than just in the two awards in this matter. Accordingly the variations sought are not made.
R.K. Gozzi Appearances: Date and Place of Hearing: |