TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.23 application for award or award variation

The AWU-FIME Amalgamated Union
Tasmania Branch
(T.4856 of 1994)

FARMING AND FRUIT GROWING AWARD

Wage rates - State Wage Case December 1993 - arbitrated safety net adjustment - application granted - award varied - operative ffpp 28 February 1994

REASONS FOR DECISION

This application was made by AWU-FIME Amalgamated Union, Tasmania Branch (AWU-FIME) for the purpose of varying the Farming and Fruit Growing Award to reflect the $8 arbitrated safety net adjustment determined by the Commission in the State Wage Case decision dated 24 December 1993 (T.4692 of 1993).

Mr Cooper for the applicant presented submissions in support of the application and tendered a draft order showing the effect any increase would have on the award.

Mr Rice for the Tasmanian Farmers and Graziers Employers Association (TFGEA) told the Commission that, in keeping with the submission that he placed before the Full Bench in the State Wage Case, his organisation opposed the $8 safety net adjustment being granted to this award.

Decision

After hearing submissions from the parties I am going to grant the increase as sought by the applicant for the following reasons:

1.  it is consistent with the decision arising of the State Wage Case dated 24 December 1993 and the Wage Fixing Principles;

2.  no submission was put to me that would have me arrive at the conclusion that, by awarding the increase, it was contrary to the Public Interest;

3.  Mr Rice, whilst stating that he opposed the increase on the basis of continuing erosion of profit margins for farmers since 1990, offered no submission in terms of the Wage Fixing Principles and in particular the Economic Incapacity Principle, which states:

"Any respondent or group of respondents to an award may apply to reduce and/or postpone the application of any increase in labour costs determined under the principles on the grounds of very serious or extreme economic adversity. The merit of such application shall be determined in the light of the particular circumstances of each case and any material relating thereto shall be rigorously tested.

It will be a matter for the President to decide whether any such application should be dealt with by a Full Bench."

4.  the submission presented by Mr Rice, was consistent with that which he presented during the State Wage Case hearing, where he was representing the TFGA Industrial Association (now the Tasmanian Farmers and Graziers Employers Association), and the Full Bench in that matter, (T.4692 of 1993) stated -

"As to the primary position of the TFGA Industrial Association, which was of opposition to any wage increase, we acknowledge the generally depressed level of profit margins applying in certain areas of the rural sector. However, we consider that allowing a case-by-case approach for relief in appropriate circumstances in accordance with the revised Economic Incapacity Principle will accommodate the concerns of the Association and we so decide."

Mr Rice declined to present any arguments in accordance with the Economic Incapacity Principle therefore it is not possible for me to test the veracity of his submission.

Order

The Order giving effect to this decision is attached and will be operative from the first full pay period to commence on or after 28 February 1994.

R J Watling
COMMISSIONER

Appearances:
Mr G Cooper for The AWU-FIME Amalgamated Union, Tasmania Branch.
Mr K Rice for the Tasmanian Farmers and Graziers Employers Association

Date and place of hearing:
1994
Feb 28
Hobart