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Tasmanian Industrial Commission

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T11055, T11056 and T11057

 

TASMANIAN INDUSTRIAL COMMISSION

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

Cheryl Elizabeth Brown
(T11055 of 2003)
Roslyn Jane Webb
(T11056 of 2003)
Julie Anne Gray
T11057 of 2003)

and

Tannod Pty Ltd

 

COMMISSIONER T J ABEY

HOBART, 20 October 2003

Industrial dispute - alleged breach of the Cleaning and Property Services Award - order issued

REASONS FOR DECISION

(1) On 15 September 2003, Cheryl Elizabeth Brown, Roslyn Jane Webb and Julie Anne Gray (the applicants) applied to the President, pursuant to Section 29(1A) of the Industrial Relations Act 1984, for a hearing before a Commissioner in respect of an industrial dispute with Tannod Pty Ltd arising out of an alleged breach of the Cleaning and Property Services Award.

(2) When this matter came on for hearing on 14 October 2003 the applicants were self-represented. The employer was not represented. However correspondence dated 7 October 2003 from the employer reads as follows:

"We are referring to your letter dated 22 September 2003.

The girls mentioned above were at all times during their employment employed by Tannod Pty Ltd not by us personally being Bruce William Good and Tania Morgan. The company Tannod Pty Ltd has gone into Liquidation as of yesterday 6 October 2003."

(3) Correspondence from ACP Insolvency dated 14 October 2003 and received after the conclusion of the hearing reads:

"On 6 October 2003, pursuant to resolutions of its shareholders and creditors, Tannod Pty Ltd was placed into liquidation and I, Paul Brake, became the company's liquidator.

Further to your telephone conversation with Brian Carey of this office I confirm I will not be attending the Tasmanian Industrial Commission hearing which I understand is set down for today. I note hold no funds in this administration and at this early stage of the liquidation I am not aware of the company having any assets.

For the sake of completeness I do note pursuant to section 500 of the Corporations Act it is not competent for a creditor of the company to commence or pursue any civil proceedings against the company without the leave of the Supreme Court.

Should you have any queries, or require any further information please do not hesitate to contact Brian Carey of this office."

(4) I will return to this correspondence later in this decision.

(5) The applicants were employed as cleaners under the terms of the Cleaning and Property Services Award. They were employed as casual employees for the following periods:

  • Cheryl Brown; from 20 July 2001 until 5 June 2003. An average of 15 to 20 hours per week.
  • Julie Gray; from 17 May 2002 until 5 June 2003. An average of 12 hours per week.
  • Roslyn Webb; from 5 June 2002 until 5 June 2003. An average of 20 to 22 hours per week.

(6) The applicants allege that they were paid less than full entitlements under the Award for the duration of their employment.

(7) I was informed that the applicants were paid the following hourly rates:

  • Monday to Friday
$15 per hour
  • Saturday
$17 per hour
  • Sunday
$20 per hour
  • Public holidays
$15 per hour

(8) Under the Award a casual Property Service Employee Grade 2 is entitled to be paid the following hourly rates:

  Prior to
1/8/01
From 1/8/01
to 1/8/02
From 1/8/02
to 5/6/03
       
  • Monday to Friday
$18.42 $18.94 $19.66
  • Saturday
$24.41 $25.10 $26.05
  • Sunday
$32.24 $33.15 $34.41

(9) It would appear that this matter had it genesis in earlier applications lodged by the same applicants1. These matters were set down for hearing in Ulverstone on 14 July 2003 before Shelley C. However at the request of the applicants this hearing did not take place. On 18 July the applicants jointly wrote to the Commission in the following terms:

"Regards the Industrial Dispute with Tannod Pty Ltd

Due to Mediator Michael Best an agreement has now been reached in full.

The below signed would now like this case closed:

Cheryl Brown
Roslyn Webb
Julie Gray

Date 18/7/03

Thank you for your cooperation from all concerned."

(10) I was advised that Mr Michael Best, the mediator referred to in the above correspondence had been instrumental in calculating the amounts owed to the applicants and had facilitated an arrangement whereby the amount would be repaid, initially in instalments with the balance being paid in full on the sale of a certain property.

(11) All three applicants signed an Agreement to this effect. The agreement in relation to Roslyn Webb is set out below. Save for different amounts, the agreements applicable to Julie Gray and Cheryl Brown are in identical terms.

"TANNOD PTY LTD ("the Company") ACN 087 714 547 of Unit 59, 300 Cottesloe Drive, Mermaid Waters in Queensland acknowledges that ROSLYN JANE WEBB ("the Employee") of 62 Bel-Air Crescent, East Devonport in Tasmania was employed by us as a cleaner under the Cleaning and Property Services Award.

The Company acknowledges that the Employee was underpaid by the sum of $5615.39 (including tax) for wages and redundancy payments up until the time her employment was terminated.

The Company agrees to pay to or on behalf of the Employee: 

  • An amount for wages and redundancy payment (net)
$4604.62
  • Tax on the above payment to the Australian Taxation Office calculated at 18%
$1010.97
  • Superannuation payment to the Employee's superannuation fund calculated at 9% of the gross wage and redundancy payment ($17,231.39)
$1550.82

The above amounts will be paid in the following manner:

  • The sum of $100.00 per week to the Employee until final payment as set out below.
  • The balance on completion of the sale of the property at 14 George Street, Ulverstone in Tasmania owned by Bruce William Good, a director of the Company.
  • The tax and superannuation contributions upon completion of the sale of the above mentioned property at 14 George Street Ulverstone.

By signing this document, the Employee agrees that:

  • The Employee will withdraw in writing the application made to the Tasmanian Industrial Commission which resulted in the Application for Hearing in Respect of an Industrial Dispute under Section 29(1A) so that the intended hearing does not take place.
  • Upon payment of all the above moneys, the Employee releases the Company and the officers of the Company from any further claim against the Company.

Dated this .... day .... 2003

Signed by
BRUCE WILLIAM GOOD
as Director for and on behalf of

TANNOD PTY LTD in the
presence of:
Karen Hamilton
37 Mission Hill Road
Penguin

I agree to the above
Signed by
ROSLYN JANE WEBB
In the presence of:
Karen Hamilton"

(12) A specific term of the agreement was the written withdrawal of the earlier applications to the Tasmanian Industrial Commission. The applicants, by virtue of the 18 July 2003 correspondence, honoured this element of the agreement.

(13) I was informed that the applicants received four instalments of $100.

(14) No further payments had been received.

(15) The applicants advised that the Ulverstone property mentioned in the agreement had been sold. Approaches to both the Directors of Tannod Pty Ltd and the mediator had been unsuccessful.

(16) The applicants advised that Mr Michael Best is the General Manager of the Goodstone Group. This company is owned by Mr Kerry Good, the brother of Mr Bruce Good, a director of Tannod Pty Ltd. Further, Tannod Pty Ltd provided cleaning services to the Goodstone Group.

(17) The applicants said that at no stage were they informed that the employer was in financial difficulty. The employees now believe they were deliberately misled and improperly coerced into withdrawing the earlier applications to the Commission. Whilst I do not have the benefit of any evidence or submissions from the employer, it is not difficult to understand why the applicants have expressed these views.

(18) From my own inquiries I am satisfied that the amounts acknowledged by Tannod Pty Ltd in the contracts as owing, are, after allowing for the $400 already paid, an accurate reflection of the extent of the Award breaches.

(19) I turn now to correspondence from the Liquidator.

(20) The Tasmanian Industrial Commission is an independent tribunal established under its own statute. To the best of my knowledge it has never been considered a "court". Relevantly s.29[1A][c] reads:

"(1A) A former employee may apply to the President for a hearing before a Commissioner in respect of an industrial dispute relating to -

    (a) ....

    (b) ....

    (c) a breach of an award or a registered agreement involving the former employee; or

    (d) ...."

(21) In my view the applications are validly made (See Tata v Watts Communications Pty Ltd [In liquidation]).2

ORDER

Pursuant to s.31 of the Industrial Relations Act 1984 I hereby order that Tannod Pty Ltd, C/- ACP Insolvency, Level 4, Trendwest Building, 130 Bundall Road, Bundall, Queensland 4217, pay to:

1. Cheryl Elizabeth Brown, 8 Stephen Street, Forth, Tasmania 7310 an amount of seven thousand one hundred and ninety five dollars ($7195), together with an amount of one thousand five hundred and fifty seven dollars ($1557) by way of a superannuation contribution payable to Customer No. 7102010, BSB No. 037-930, Account No. 10/2010, Retirement Saver Account, 31-35 Stewart Street, Devonport, Tasmania 7310.

2. Roslyn Jane Webb, 62 Bel-Air Crescent, Devonport, Tasmania 7310 an amount of five thousand two hundred and fifteen dollars ($5215) together with an amount of one thousand five hundred and fifty dollars ($1550) by way of a superannuation contribution payable to Membership No. 10085376, HESTA Superfund, PO Box 600, Carlton South, Victoria 3053.

3. Julie Anne Gray, 6 Woodrising Avenue, Spreyton, Tasmania 7310 an amount of four thousand three hundred and eighty six dollars ($4386), together with an amount of one thousand five hundred and twenty four dollars ($1524) by way of a superannuation contribution payable to Membership No. 122481703, REST Administration, PO Box 350, Parramatta, New South Wales 2124.

 

Tim Abey
COMMISSIONER

Appearances:
Miss C Brown, Ms R Webb and Mrs J Gray, self-represented.

Date and Place of Hearing:
2003
October 14
Ulverstone

1 T10913, T10914 and T10920 of 2003
2 T10387 of 2002