T1526 (1 September 1988)
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IN THE TASMANIAN INDUSTRIAL COMMISSION Industrial Relations Act 1984
REASONS FOR DECISION
In this matter the applicant seeks the making of a new award to be known as the Miscellaneous Workers (Public Sector) Award, (the Award). An amended application in the form of an award was submitted by Mr O'Brien at the outset of proceedings on 19 August 1988. He advised us that the document reflected the general agreement of the parties, however, there were some aspects of it which were still opposed by the Minister for Public Administration (the Minister). The main objection of the Minister went to three matters which were also opposed in an earlier similar application1. Those matters are:
Other matters were also opposed or were sought to be qualified by the Minister. However, it was agreed that the Commission should make an award leaving out those matters that were contested, with rights reserved to the parties to argue any, or all set aside claims. The Award, if made, would have application to approximately twelve hundred employees who currently have their conditions of employment and rates of pay regulated by private sector awards. The making of the award would also have the effect of implementing the 4% second tier package for those employees. Whilst it is generally agreed by the parties that the contested matters should be set aside, the applicant sought arbitration at this point on the extension of the benefits of a 38 hour week to part time and casual employees. It was submitted that savings or potential savings were contained in some of the proposed award provisions, which would enable the Commission to grant that particular part of the claim now and remove this issue from the list of contested matters. Exhibit FW(1) details a list of agreed offsets for a second tier increase for employees in miscellaneous worker classifications in the public sector generally. Exhibit FW(2) details a memorandum of agreement in relation to the second tier provisions having application to the Transport Commission. As there was no opposition to the making of the Award, we will not summarise the respective supporting submissions of the parties. We are satisfied that it is in the public interest for an award to be made in the terms agreed between the parties and we decide accordingly. Mr O'Brien explained in some detail the background to each clause in the draft award, clearly indicating where agreement had not been reached. We are satisfied that so far as agreement was indicated the new award does no more than reflect the existing conditions that are applied to the subject employees. We therefore accept that the agreed position sits comfortably within the Wage Fixing Principles of this Commission and in particular Principle 12 - First Awards and Extensions to Existing Awards. We also accept the 4% second tier package. Exhibits FW(1) and FW(2) clearly detail the offsets agreed between the parties and also the estimated cost savings that can be achieved. The wage rates that are endorsed, reflecting the consequent 4% increase, are those that are contained in Column A of the wage rates clause in the draft order. The claim to extend the benefits of a 38 hour week to part time and casual employees has caused us some concern. While we accept that some cost amelioration will be achieved by our endorsement of some of the proposed award provisions, we do not believe the savings will be as significant as submitted by Mr O'Brien (in the order of 5.6%). As indicated in other public sector hours matters, we think it unfortunate that part time and casual employees have been isolated from other employees. In such circumstances, the scope for achieving cost offsets is very limited if not non existent. A 38 hour week and therefore a 38 hour divisor has been a fact of life for public sector employees generally for some time now. Having regard to that situation and given the concessions offered by Mr O'Brien, notwithstanding the inherent difficulties in identifying and implementing suitable cost offsets for this group of employees, we have decided to grant that part of the application given the inherent difficulties referred to above. The date of operation of the order giving effect to this decision will be the first pay period commending on or after 1 September 1988. As indicated earlier the new award will reflect the agreed position of the parties with the addition of variations necessary to implement the benefits of a 38 hour week for part time and casual employees. All contested matters are set aside and will be the subject of a further hearing at a time and date to be fixed. The order in the form of an interim award will be issued by the Registrar as soon as is practicable.
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