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T7514

 

TASMANIAN INDUSTRIAL COMMISSION

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

Textile, Clothing and Footwear Union of Australia, Tasmanian Branch
(T7514 of 1998)

CLOTHING INDUSTRY AWARD

 

COMMISSIONER R J WATLING

HOBART, 17 March 1998

Award variation - wage rates - $10.00 Safety Net Adjustment - consent matter application granted - award varied - operative date ffpp 25 April 1998

REASONS FOR DECISION

This application, lodged with the Commission on 11 February 1998, by the Textile, Clothing and Footwear Union of Australia, Tasmanian Branch (the applicant), pursuant to s.23 of the Act, was for the purpose of varying the Clothing Industry Award to include the $10.00 Safety Net Adjustment.

In a decision arising out of application T7042 of 1997 the Commission, as currently constituted, identified the agreed plan to vary the Clothing Industry Award arising out of the Minimum Rate Adjustment process and the Safety Net Adjustments. The plan was as follows:

· The second $8.00 Safety Net Adjustment to be operative from the first full pay period to commence on or after 24 July 1997;

· The third $8.00 Safety Net Adjustment to be accessible, via a separate application, no earlier than the 25 September 1997;

· The third Minimum Rate Adjustment to be accessible, via a separate application, no earlier than the 26 November 1997;

· The fourth and final Minimum Rate Adjustment to be accessible, via a separate application, no earlier than the 27 January 1998; and

· The $10.00 Safety Net Adjustment arising out of the State Wage Case decision to be accessible no earlier than the 28 March 1998.

This application is the final step in the process and with the exception of the operative date, the matter came before the Commission with the consent of the parties. I am satisfied that the application, to the extent of the wage increase, is consistent with the Wage Fixing Principles and does not offend the public interest.

OPERATIVE DATE

A review of the operative dates for earlier wage increases granted to this award, arising out of the minimum rate adjustment and the safety net adjustment process indicate the following:

APPLICATION

OPERATIVE
DATES

TIME BETWEEN VARIATIONS

2nd $8.00 safety net adjustment

FFPP 24.7.1997

-

3rd safety net adjustment

FFPP 25.9.1997

8 weeks

3rd Minimum Rate Adjustment

FFPP 17.12.1997

12 weeks

4th Minimum Rate Adjustment

FFPP 25.2.1998

11 weeks

All the abovementioned operative dates were agreed between the parties.

Insofar as this application is concerned, Mr D Strickland, on behalf of the applicant, submitted that the operative date should be the first full pay period to commence on or after 28 March 1998, in keeping with the agreed program outlined earlier in this decision.

He said, even though the operative dates of earlier wage increases extended beyond the dates shown in the program, nevertheless, the last variation should be granted in accordance with the timetable as employers covered by this award had the advantage of not having to pay previous wage increases at times shown in the program.

He was also of the view that no employer would be disadvantaged by granting the operative date sought.

Mr R Brown, of the Tasmanian Chamber of Commerce and Industry Limited (TCCI), opposed the operative date sought by the applicant, as the preceding increase granted under the program was operative from the first full pay period to commence on or after 25 February 1998 and another increase within the space of four weeks was inappropriate and a burden on employers covered by the award.

Mr Brown was not opposed to the increase, arising out of this application, being operative from the first full pay period to commence on or after 25 April 1998, being two months from the last variation to the award. He said that was in keeping with the intention of the earlier described program for this award.

Principle 7 of the Wage Fixing Principles states inter alia:

"7. PREVIOUS STATE WAGE CASE INCREASES

7.1 Increases available under previous State Wage Case decisions such as structural efficiency increases, minimum rates adjustments and the three previous $8 arbitrated safety net adjustments will on application continue to be accessible.

7.2 Subject to Principle 7.3 the spacing of increases to awards in accordance with principle 7.1 shall be determined by agreement between the parties to any particular Award or failing agreement by decision of the Commission.

7.3 Increases applied to Awards in accordance with this principle must be applied in such a manner as to ensure that there is no other increase in award wages between the $10 arbitrated safety net adjustment and the first pay period to commence on or after 14 September 1997. This provision may be varied by consent between the parties to any particular Award."

Pursuant to Principle 7.2 and given the previous increase was operative from 25 February 1998, I believe it would be inappropriate and not in the public interest to grant another wage increase within four weeks of the previous variation.

My perusal of the previously mentioned program indicates an intention on the part of the parties to space the wage increases arising out of the minimum rate adjustment and safety net adjustment program to be at least two months apart.

I do not accept the argument that suggests, because a date appears in a previously agreed program that it is binding on the Commission, as separate applications were required for each of those variations and those applications would be considered on merit at the time. The program is only indicative of the intention of the parties.

Having considered the submissions of the parties I am of the view that the increases arising out of this application should be operative from the first full pay period to commence on or after 25 April 1998.

The Order is attached.

 

R J Watling
COMMISSIONER

Appearances:
Mr D Strickland for the Textile, Clothing and Footwear Union of Australia, Tasmanian Branch
Mr R Brown for the Tasmanian Chamber of Commerce and Industry Limited

Date and place of hearing:
1998
March 17
Hobart