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Tasmanian Industrial Commission

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T10592

 

TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.29 application for hearing of industrial dispute

Australian Municipal, Administrative, Clerical and Services Union
(T10592 of 2002)

and

TasPage Pty Ltd
(Administrator Appointed)

 

COMMISSIONER T J ABEY

HOBART, 16 December 2002

Industrial dispute - entitlements to severance pay in the event of redundancy - order issued requiring application to vary award

REASONS FOR DECISION

(1) On 5 December 2002, the Australian Municipal, Administrative, Clerical and Services Union (AMACSU) applied to the President, pursuant to Section 29(1) of the Industrial Relations Act 1984, for a hearing before a Commissioner in respect of an industrial dispute with TasPage Pty Ltd in respect to entitlements to severance pay in the event of redundancy.

[2] The application reads in part as follows:

"The Union has likely dispute with TasPage Pty Ltd ABN 96505 285 152 in respect of failure to consult in relation to potential changes to company structure and operations, with implications for security of employment and entitlements of members of the Australian Municipal Administrative Clerical and Services Union.

The employer operates under the Business Services Award.

The Union seeks to establish entitlements to severance pay in the event of redundancy in accordance with industry standards and general standards of equity and fairness established by the Tasmanian Industrial Commission on an ongoing basis."

[3] The application was received in the Commission at 2.52pm on 5 December 2002. At approximately 4.00pm on the same day an Administrator was appointed pursuant to section 436A of the Corporations Act.

[4] The application was listed for a conciliation conference on 16 December 2002.

[5] Mr I Paterson, together with Mrs P Harvey, Mr R Kiely and Mr R Nichols appeared for AMASCU. Mr B Hamilton, the Administrator, appeared for the employer.

[6] Mr Paterson explained that the union represented some ten employees of the Company.

[7] He explained that whilst there are no actual redundancies at this stage, the likelihood that this would occur in the next few days was very high. He sought an order pursuant to section 31 of the Act granting a severance payment based on two weeks' pay for each completed year of service, in the event that these likely redundancies became an actuality.

[8] Mr Hamilton outlined the prospects for the Company as they appeared at this moment. This certainly confirmed the likelihood of redundancies in the immediate future. Whilst acknowledging certain administrative/legislative difficulties, he did not oppose the application as outlined by Mr Paterson.

[9] In the ordinary course of events I would be prepared to issue an order as requested by Mr Paterson as this would be consistent with the Commission's approach in dealing with a number of recent applications. However there are at this point in time no actual redundancies.

[10] There is no doubt that the matter of severance pay arising from a redundancy is an industrial matter, and that an industrial dispute includes a dispute that is likely to arise or is threatened or impending.

[11] Section 31[1C] reads:

"(1C) A Commissioner, in hearing an industrial dispute relating to termination of employment resulting from redundancy, may make an order in respect of severance pay for an employee or former employee whose employment is to be, or has been, terminated."

[12] It follows therefore, that to make an order pursuant to this section, the employee made redundant must be identified. That of course is not possible at this stage.

[13] Section 31[2][b] precludes the Commission as presently constituted from making an order that varies an Award.

[14] Section 31[3] however specifically provides that an order may be made requiring that an application be made to vary an Award.

[15] In all the circumstances, and given the urgency of this matter, I propose to issue an order requiring AMACSU to lodge an application to vary the Business Services Award so as to provide a redundancy provision applicable to this employer only.

Order

Pursuant to section 31[3] of the Industrial Relations Act 1984 I hereby order that the Australian Municipal, Administrative, Clerical and Services Union lodge an application to vary the Business Services Award, the effect of which will, if granted, provide a redundancy provision applicable to TasPage Pty Ltd.

This file shall remain open pending the resolution of the above application.

 

Tim Abey
COMMISSIONER

Appearances:
Mr I Paterson, for the Australian Municipal, Administrative, Clerical and Services Union with Mrs P Harvey, Mr R Kiely and Mr R Nichols
Mr B Hamilton, Administrator for TasPage Pty Ltd

Date and Place of Hearing:
2002
December 16
Hobart