T6976
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TASMANIAN INDUSTRIAL COMMISSION Industrial Relations Act 1984 Automotive, Food, Metals, Engineering, SHIPBUILDERS AWARD
Award variation - fourth minimum rates adjustment; third safety net adjustment and consequential variations to allowances and minimum wage - variation of rates in Special Rates clause - separate orders issued - fourth minimum rates adjustment operative ffpp 11.6.97 - third safety net adjustment operative ffpp 9.7.97 REASONS FOR DECISION This application was lodged by the Automotive, Food, Metals, Engineering, Printing & Kindred Industries Union to vary Clause 8, Wage Rates, of the Shipbuilders Award by inserting the fourth minimum rates adjustment, and the third safety net adjustment with consequential variations to allowances and the minimum wage provisions. At the commencement of proceedings, Mr Baker, representing the applicant union, sought and was granted leave to amend his application to delete superfluous words contained within Clause 10, Annual Leave, and Clause 34, Special Rates. Fourth Minimum Rates Adjustment: Mr Baker said that the minimum rates process was an ongoing issue and the fourth adjustment would end the minimum rates process for a trades person under the Shipbuilders Award. That classification would now receive a weekly wage of $433.20, which was a consistent rate for trades classifications in Tasmania. Classification Levels 3, 2 and 1 were to be adjusted in accordance with the schedule for those classifications which, if the application had been lodged earlier, could have applied from January 1997. He said there were still two minimum rate adjustments due in respect of Levels 3, 2 and 1. He reminded the Commission that because of very low wage rates in the award it had been agreed by the parties to move the classifications below trades level by six safety net adjustments, at six monthly intervals. The award was to be varied elsewhere in that the dunnaging rate and apprentice rates had been increased accordingly, he submitted. Mr Baker tendered an exhibit reflecting the fourth minimum rates adjustments (Exhibit AMWU.1) and requested that this variation come into effect from the first full pay period commencing on or after 11 June 1997. Third Safety Net Adjustment: Mr Baker tendered an exhibit reflecting his application to vary the award in relation to the Third Safety Net Adjustment and to adjust the dunnaging rate, apprentice rates and the minimum wage. (Exhibit AMWU.2) He sought an operative date of the first full pay period commencing on or after 9 July 1997. Mr Benson, for the Construction, Forestry, Mining and Energy Union, Tasmanian Branch, endorsed and supported the submissions made by Mr Baker in respect of both circumstances. Ms Thomas, representing the Tasmanian Chamber of Commerce and Industry Limited (the TCCI), said that the matters before the Commission were consent matters, save for the operative date in relation to the third safety net adjustment. She said that in correspondence to Mr Baker of 11 June 1997 the TCCI had asked the union to agree that the order reflect the intent of the recent negotiations concerning the 1997 State Wage Case, that in essence any increases should be at least 2 months apart on either side of the increase which occurs on 14 July. Ms Thomas said that employers in the industry were faced with the prospect of minimum rate adjustments from 11 June 1997, the $8 per week arbitrated safety net adjustment from 9 July, and a further $10 per week from 14 July from the State Wage Case. She said the parties to the recent State Wage Case proceedings were keen to avoid a situation where employers would have to pick up a number of increases in quick succession. She tendered a copy of an exhibit from the State Wage Case which set out a summary of the agreement reached between the parties on that occasion and drew attention to certain points which referred to the "spacing" of any outstanding increases and "other" increases not being available prior to 14 September 1997. She said the TCCI had requested Mr Baker to consider an operative date of 14 September 1997 for the third safety new adjustment. Ms Thomas referred to the public interest requirements of the Act and said that the Commission should consider the economic impact for the proposed increases because employers would have to meet three wage increases within a short period of time. Mr Baker said the application was under the current wage fixing principles and the proposed operative date for the third safety net adjustment was 9 July. He said that because the proposed new wage fixing principles do not as yet exist the argument put forward by the Chamber was invalid. He strongly urged the Commission to give effect to the variation from the first full pay period commencing on or after 9 July 1997. He said that employers had had six months grace as far as the application of the fourth minimum rates adjustment was concerned. Mr Benson supported the submissions of Mr Baker. He said that the argument put forward by the TCCI was irrelevant, having regard to the proposed principles that Ms Thomas was referring to that have not as yet been accepted by the Commission. This application, lodged pursuant to section 23 of the Act and subject to the 1996 wage fixing principles, conforms with all the requirements of the Act and those principles, so much so that the employer "party" to the award expressed consent to it other than in respect of the operative date of the third arbitrated safety net adjustment. The principles provide that the third arbitrated safety net adjustment at the award level will be available no earlier than 20 June 1996, so long as at least 12 months has elapsed since the second arbitrated safety net increase. In this case the second arbitrated safety net adjustment was awarded with effect from the first full pay period to commence on or after 9 July 1996. Mr Baker submitted that the parties had been committed to review the award and some progress had been made and that further review would occur. This was not disputed by the employer organisation. The employee representatives rejected the employer request to agree to defer the third arbitrated safety net adjustment and it is for the Commission to determine the appropriate operative date. I have considered the submissions of those present, the requirements of the 1996 wage fixing principles and the public interest requirements of section 36 of the Act. I have disregarded the proposed wage fixing principles which are not yet formally in place. In all the circumstances, given
I am satisfied that it is not inconsistent with the public interest provisions of section 36 of the Act and it is in accordance with the current wage fixing principles to apply the third arbitrated safety net adjustment of $8 per week as from the first full pay period to commence on or after 9 July 1997; and I decide the award should be varied accordingly. Orders giving effect to
F D Westwood Appearances: Date and place of hearing: |