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T7329

 

TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s55 application for the approval of an industrial agreement

National Union of Workers, Tasmanian Branch

and

King Island Dairies Pty Ltd
(T7329 of 1997)

KING ISLAND DAIRIES PTY LTD
ENTERPRISE AGREEMENT 1997

 

PRESIDENT F D WESTWOOD

HOBART, 11 March 1998

Industrial agreement - agreement approved - operative 12-3-98 - forwarded to Acting Registrar for registration

REASONS FOR DECISION

This application was lodged by the National Union of Workers, Tasmanian Branch (the NUW) and King Island Dairies Pty Ltd pursuant to section 55 of the Industrial Relations Act 1984 for approval of the King Island Dairies Pty Ltd Enterprise Agreement 1997.

At the outset Mr Baker, together with Ms Urquhart for the Automotive, Food, Metals, Engineering, Printing & Kindred Industries Union (the AMWU) sought leave to appear to represent members who, it was alleged, had authorised the union to represent them in negotiations with the company on the agreement. That application was withdrawn following objections from the parties and after consideration of advice from Mr Richardson, for the NUW, that, amongst other things, a clear majority of employees had endorsed the proposed agreement.

Mr Molnar, for the company, then proceeded to outline the terms of the agreement which he submitted had been negotiated with representatives of the employees and the NUW over several months. He said the agreement had resulted from the establishment of a reasonable working relationship with the union, and that it was a forward looking document that deals with the economic interests of all stake holders.

He said the agreement dealt with "outstanding industrial issues between the employer and employees"; that it provided "needed stability to the employment relationship"; and that it was "made in the context of a company that dramatically needs to improve profitability".1

Mr Molnar said that King Island Dairies was one of two main employers on King Island. In the "season", which is from September to March, up to approximately 140 were engaged; in the off-season about 100 employees were engaged; approximately 74 employees were regarded as permanent. Twenty-three dairy farmers supplied the company with milk.

The agreement's objectives are to -

(a) implement a classification structure relevant to the employer's operations;

(b) develop a joint approach to the reduction of waste; and

(c) reward employees for reducing waste.

The agreement sets out the ordinary hourly rates applying prior to 6 October 1997, the rates to apply from 6 October 1997, and the rates to apply from 6 July 1998. A new classification structure involving four levels, grades 1, 2, 2A and 3 are described in Appendix 2 to the agreement.

A dispute settling procedure is outlined at appendix 4.

The establishment of a Waste Committee is provided for at Clause 15, Waste Reduction. It discusses:

  • how waste is to be measured
  • the amount of waste in the previous month
  • the reason for the waste
  • methods and procedures to reduce waste.

The definitions of waste in its various forms were set out in Appendix 1. If waste is kept below a certain tonnage of manufactured output a bonus of 1% of the employee's ordinary wages as at 6 October 1998 is to be made to those who have been continuously employed in the preceding 12 months. Mr Molnar informed the Commission that the "bonus" was not to be paid at the discretion of the employer as the payment had to be made if the appropriate waste indicator measurement had been achieved.

A further Special Allowance of $160 (net of any tax) is payable to the same employees in respect of the achievement of the waste indicator.

Under the heading "Workplace Reforms" the agreement provides a span of ordinary hours to be eight between 6.00 a.m. and 6.00 p.m., Monday to Saturday, to be worked at the discretion of the employer. Two consecutive days off per week were to be provided except where operational requirements do not permit. All work on a Saturday as part of the 38-hour week is to be paid at the rate of time and one half. Overtime, shift work, permanent part-time employment, and minimum engagement provisions are detailed as well as a special arrangement for rewarding employees in respect of accrued sick leave when voluntarily terminating their employment, the latter provision being addressed in some detail by Mr Richardson.

A Discipline and Termination Policy is attached as Appendix 3.

The agreement generally provides a comprehensive employment code for the company and its employees.

Having examined the document and heard from the parties on those issues which required clarification, I am satisfied that it complies with the wage fixing principles of the Commission and is in the public interest in accordance with section 36 of the Act.

Accordingly the agreement is approved and will be referred to the Acting Registrar for attention pursuant to section 56 of the Act.

The agreement has a life of 15 months which will commence on 12 March 1998.

 

F D Westwood
PRESIDENT

Appearances:
Mr C Molnar from the Australian Chamber of Manufacturers, with Mr J Foley for King Island Dairies Pty Ltd
Mr P Richardson with Mr D Strickland for the National Union of Workers, Tasmanian Branch
Mr P Baker with Ms A Urquhart intervening in accordance with section 27 of the Act, for the Automotive, Food, Metals, Engineering, Printing & Kindred Industries Union

Date and place of hearing:
1998
January 20
Hobart

1 Transcript p.25