TASMANIAN INDUSTRIAL COMMISSION

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

The Australian Workers' Union, Tasmania Branch
(T10789 of 2003)

and

Tassal Limited
(Receivers and Managers Appointed)

Industrial dispute - treatment of employees as a consequence of significant operational adjustments

RECOMMENDATION

(1) On 1 April 2003, The Australian Workers' Union, Tasmania Branch (the applicant) 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 Tassal Limited (Receivers and Managers Appointed).

(2) This dispute arises from a decision by the Company to terminate a significant number of employees as a response to an unforeseen, but hopefully relatively short term, reduction in production capability. The status of the employees affected, (i.e. whether casual or permanent) is a matter in contention between the parties.

(3) Following a series of private conferences with the involvement of the Commission, agreement has been reached as to the resolution of this dispute. The terms of this agreement are set out below:

1. Subject to skill requirements, the principle of Last On First Off is to be applied. Where this has not occurred the position will be remedied.

2. The Company will actively seek alternative employment opportunities within the local community.

3. The Company will maintain a register of persons interested in being re-engaged by the Company. Subject to skill requirements, the principle of Last Off First On shall apply. It is more likely than not that the Company will be able to offer employment to all that seek re-engagement.

4. Twenty employees will be identified and offered permanent employment. Objective criteria based on skills and length of service will be applied to the selection process.

5. Employees with more than 6 months' continuous service, shall if terminated, be paid an amount of $800.00 as a bona fide redundancy.

6. The terms of this settlement shall be incorporated in an "Operational Adjustments Agreement" and registered with the Commission. This Agreement shall be in full settlement of all matters arising out of T10789 of 2003. Neither the union nor employees affected by this settlement shall institute any further proceedings against the Company in relation to any matter identified in the settlement.

7. The Operational Adjustments Agreement shall, pending the finalisation of a new Workplace Agreement, contain a provision based on the Metal Industry Award prescription for the conversion of long-term casual employees to permanent employees. Such provision is to apply prospectively from the date of re-engagement.

8. The parties agree in principle, that any new Agreement may make provision for a new category of employment known as permanent seasonal.

9. There is to be a new election of the Joint Consultative Committee. An AWU appointed scrutineer is to be present at the time of voting and the vote count. The AWU is to be formally recognised as a member of the JCC.

10. All parties expressly accept that the above agreement represents a resolution to the immediate dispute, and does not have any precedent status as to what might apply in the future.

(4) I am satisfied that this outcome meets the twin objectives of reducing the financial hardship on employees affected without imperilling the ongoing viability of the business. As such the agreement represents a positive contribution to future employment security.

(5) For these reasons I recommend in the strongest possible terms that the workforce endorse the agreement.

Tim Abey
COMMISSIONER