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T14

IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

No T.14 of 1985

 

IN THE MATTER OF an application by the FEDERATED LIQUOR AND ALLIED INDUSTRIES EMPLOYEES' UNION OF AUSTRALIA (TASMANIAN BRANCH) for an award to vary the LICENSED CLUBS AWARD

Re: in relation to a reduction of standard working hours

   

FULL BENCH:
PRESIDENT L A KOERBIN
COMMISSIONER J G KING
COMMISSIONER R J WATLING

HOBART, 15 February 1985

 

 

REASONS FOR DECISION

 

 

APPEARANCES:

 

 

 

For the Federated Liquor and Allied Industries Employees Union of Australia (Tasmanian Branch)

- Mr N Sherry

 

 

For the Tasmanian Chamber of Industries

- Mr T Edwards

 

 

For the Licensed Clubs Association

- Mr W L Evans, with
  Mr R Balmer

 

 

 

DATE AND PLACE OF HEARING:

 

 

1 February 1985

Hobart

   

An application seeking a reduction in standard working hours prescribed in the subject award was lodged by the Federated Liquor and Allied Industries Employees' Union of Australia (the Union) on 18 January 1985. The reduction in working hours sought is from 40 to 38.

The submissions of the parties were heard on 1 February 1985, at which time the Commission was advised that agreement in accordance with the Wage Indexation Principles had been reached.

Mr Sherry for the Union in a very detailed and competent submission, explained the award changes necessary to accommodate the agreement. (Ex S3). He also dealt at some length with the cost offsets that had been agreed (Ex S4) and with a number of exhibits which supported or supplemented his case.

The key elements to a reduced working hours variation (to 38 hours) being processed in accordance with the Principles are:-

(1) The agreement of the parties; and

(2) The cost impact of the shorter week should be minimised.

As indicated earlier, agreement has been reached in this case, therefore it is left to the Commission to satisfy itself that as much as possible of the required cost offset is achieved by changes in work practices.

In dealing with cost offsets, Mr Sherry freely admitted that it was difficult to estimate cost savings on those matters that had been agreed. However, genuine attempts had been made to reduce the cost impact of the reduction in hours.

While those anticipated reductions might not result in cost reductions as significant as in some other industries, this should not deny Licensed Club employees a generally accepted benefit. It was submitted by Mr Sherry that this was a very efficient industry, and that the Full Bench in its 23 September 1983 National Wage decision had foreshadowed reductions in working hours in such cases. He relied in particular on the following extract from that decision:-

"In rare cases, where the Commission is satisfied that work practices in a firm or industry are so efficient as to exclude any reasonable cost offsets, the 38 hour week may be awarded with little or no cost offsets."

Mr Sherry also relied on a decision of a Full Bench of the Federal Commission (Print F7321) to grant a 38 hour week for employees covered by the Hotels and Retail Liquor Industry Award 1983. He submitted the circumstances of the Industry covered by that award, the case put by the Union and the agreement reached are virtually line ball with this case. A decision of the Assistant Deputy Chairman of Industrial Boards, Mr R J Watling to ratify an agreement in the Hotel and Motel Keepers Industrial Board to reduce working hours to 38 was also submitted in support of this agreement.

In summary, Mr Sherry listed the following in support of his submission that the award should be varied to accommodate the agreement reached:-

- agreement had been reached

- genuine negotiations had taken place over a period of three (3) months

- there had been no industrial action in support of the claim

- the offsets achieved were the maximum that could reasonably be expected

- similar Federal awards had been varied

- a similar State award had also been varied

- the agreement is in accordance with the Principles.

Mr Edwards for the Tasmanian Chamber of Industries indicated, on behalf of those employers he represented, their agreement to the award variation sought. He also indicated that:-

- the cost offsets are all that can reasonably be achieved

- they are not seeking any further costs offsets

- the Banking system of taking time off (the agreed preferred system) is a real cost
  offset as slack times do occur across the industry

- the employers option of employing staff on a part-time basis would be a significant
  cost offset

- the agreement reached was not a contrived arrangement

- members can accommodate any additional cost without increasing prices

Mr Evans for the Licensed Clubs Association supported the submissions of the Tasmanian Chamber of Industries. He also indicated in response to a question from the Bench that any increase in costs could be absorbed without increasing prices.

Before going to the actual decision in this case, the Commission is constrained to make further comment on the documentation submitted by the Union.

In this case, there is no doubt that the parties accepted that the onus is on them to satisfy the Commission that the agreement reached is in accordance with the requirements of the National Wage Principles. Consequently, a lot of time and effort has been put into the compilation of exhibits going to cost offsets and award changes. Such attention to detail and the setting out in document form the agreement of the parties makes the task of the Commission so much easier.

DECISION

Mr Sherry went to some lengths to emphasise the efficiency of the industry regulated by this award and sought comfort from the above quotation from the National Wage decision. While there is no doubt that there are grounds for the Union claim, re an efficient industry, it is our view that cost saving measures can be implemented. Savings will be achieved if individual employers avail themselves of the cost offsets agreed by the Union and employer bodies.

One of the significant cost offsets agreed is that employers will have the option of engaging part-time employees. The agreement also allows for a change in status of existing employees from casual to part-time. This will not only effect a cost saving for the employer, but will begin a process of "decasualising" an industry which, in our view, is in the long-term interests of employer and employee.

We are satisfied in this case that the parties have complied with the requirements of the National Wage Principles, and in particular Principle 5 - Standard Hours. It therefore follows that the Licensed Clubs Award will be varied by reducing the standard working hours from 40 to 38.

An order reflecting the necessary variations to the award will be issued in due course by the Registrar.

By the Commission

 

PRESIDENT