TASMANIAN INDUSTRIAL COMMISSION

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

Construction, Forestry, Mining and Energy Union,
Tasmanian Branch
(T.5228 of 1994)

FURNISHING TRADES AWARD

Award variation - structural efficiency principle - minimum rates adjustment principle -new classification structure

REASONS FOR DECISION

This was an application by the Construction, Forestry, Mining and Energy Union, Tasmanian Branch (the CFMEU) for amendments to be made to the Furnishing Trades Award (the Award).

In essence the application reflected a continuation of the Structural Efficiency Principle (SEP) (begun in 1991) in the Award and the furthering of the Minimum Rates Adjustment (MRA) process in the Award.

The Union made detailed submissions and produced a number of exhibits in support of its application. The key elements of the Union's case were:

• the introduction of new classification scale reflecting a broad-banded, skill-based structure. With the exception of clerical and transport classifications the new structure was the same as that now prevailing in the Federal Furnishing Trades Award 1981.

• the introduction of new classification structures for clerical and transport employees reflecting those already established in other awards of the Commission.

• the streamlining and simplification of the Award to some extent.

• the separate provision in the Award, as a temporary measure, of a section for glass workers aligned to the Federal Glass Merchants and Glazing Contractors (Tasmania) Award 1976. The Commission was advised that the parties proposed for the future to seek a separate award for glass workers.

• a revision of the method of calculating wages for junior employees and apprentices reflecting changes made as a result of a recent decision of a full bench of the Australian Industrial Relations Commission in the Furnishing Trades Award 1981.¹

The previous method of using a percentage of the sum of the base rate and supplementary payment B was expanded to include Supplementary Payment A in the calcualtion.

• the implementation of the second MRA in the Award. The CFMEU advised its acceptance of the absorption element required under the Principles.

The Union submitted that its application complied with the requirements of the Act, was not against the public interest and was in conformity with the current Principles of the Commission.

The Australian Municipal, Administrative, Clerical and Services Union endorsed and supported the submissions of the CFMEU.

The Tasmanian Chamber of Commerce and Industry Limited confirmed its agreement to the Union's application.

At the commencement of the hearing the parties were at odds as to the operative date and the form of the MRA, but at the close of proceedings settlement had been reached as to the date of operation (the date of the hearing) and the details of the second MRA.

After the close of the hearing and in the interim period a number of errors and omissions were found in the draft amendments: eventually all corrections were made and the parties confirmed that the draft order was agreed including the original operative date.

The Union will need to apply for the implementation of the third MRA at the appropriate time.

I am satisfied that the agreement between the parties reflects real attempts to implement improvements in the Award under the Structural Efficiency Principle and that the second MRA should commence.

I agree that the changes sought are in accordance with the Principles of the Commission and are not against the public interest.

The Award will be amended as requested to operate from the first full pay period to commence on or after 16 November 1994.

An order is attached.

P A Imlach
COMMISSIONER

Appearances:
R. Lowe and J. Gill for the Construction, Forestry, Mining and Energy Union, Tasmanian Branch.
H. Dowd for the Australian Municipal, Administrative, Clerical and Services Union.
T. Edwards for the Tasmanian Chamber of Commerce and Industry Limited.

Date and place of hearing:
1994.
Hobart:
November 16.