T6582 and T6597
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TASMANIAN INDUSTRIAL COMMISSION Industrial Relations Act 1984 The Australian Workers' Union, Tasmania Branch Automotive Industries Award Australian Municipal, Administrative, Clerical and Services Union Aerated Waters Award
Award variation - nominated private sector awards - meal allowance - increase to reflect CPI movements - applications granted - operative ffpp 15 Feb 97 REASONS FOR DECISION These applications which were joined at the outset were made by The Australian Workers' Union, Tasmania Branch (the AWU) and the Australian Municipal, Administrative, Clerical and Services Union (the AMACSU). They sought to vary the meal allowance provided in the nominated awards by increasing the allowance to reflect the Australian Bureau of Statistics Consumer Price Index (CPI) movement in the appropriate category of 'meals out and take away foods' for the June quarter 1995 up to and including the June quarter 1996. The AWU and the AMACSU sought to increase the meal allowance specified in each of the nominated awards by 2.2 percent from $9.25 to $9.45, an increase of 20 cents. With the aid of appropriate exhibits the AWU sought to demonstrate that following a decision of a Full Bench of the Commission in 1995 and other decisions after that, a precedent had been established so that the meal allowances in awards of the Commission would be able to be increased from time to time on a regular basis by the application of the movement in the previously mentioned category. The AWU produced further exhibits showing that the relevant CPI movement for the 12 month period immediately following the previously mentioned Full Bench decision, from the June quarter 1995 up to and including the June quarter 1996, had been 2.2 percent. The application of the 2.2 percent increase to the meal allowance presently prescribed in the nominated awards, $9.25, yielded an additional 20 cents making the new claimed allowance $9.45 per meal. The AWU submitted that its application was consistent with the Wage Fixing Principles of the Commission and it was in the public interest that the increase be granted so that the expense-related meal allowance continued to properly reflect a fair amount. The AWU stressed that its claim was based on the previous Full Bench decision in matter T5763 of 1995 which stated inter alia: "It is desirable that allowances such as this are reviewed and adjusted where appropriate on a regular basis." And further: "We consider that a consistent method for reviewing the allowance is to be preferred, ...." The AWU also requested that the proposed increase be made to take effect from the first full pay period to commence on or after the date of the hearing, 26 November 1996. The AMACSU supported the AWU's submissions and adverted to the awards for which it had submitted like applications. The AMACSU also submitted that the applications were consistent with the Principles of the Commission and the previous Full Bench decisions on meal allowances and their approval was in the public interest. The AMACSU requested the same date of effect for the application as the AWU. The Tasmanian Chamber of Commerce and Industry (the Chamber) opposed the applications on the basis that it would be more appropriate to include the latest increase in the previously mentioned CPI category as, at the date of the hearing, the September quarter 1996 increase was available. The Chamber submitted that, unless the September quarter 1996 figures were included the true increase would not be reflected and leaving it out was not in the public interest. Not being an applicant in these matters the Chamber submitted that the Commission was empowered so to do under its general discretionary powers, especially under Section 21(1) of the Act relating to the Commission regulating its own procedures. The Chamber also opposed the date of effect sought by the unions and requested that the increase be made to come into effect from the first full pay period to commence four weeks after the decision in these matters is given to enable sufficient time for employers to be notified in advance. The AWU in reply, expressed disappointment at the Chamber's opposition and maintained that its pursuit of an annual regular period of review was reasonable and appropriate. The AWU also rejected the Chamber's date of effect submissions saying that, in this case, only a 20 cent increase was involved whereas in the previous agreed case the increase in the allowance varied from around $4.90 to $5.20 to make a new total allowance of $9.25. The AMACSU supported the AWU's reply and also submitted that the method of increasing this cost allowance had been established firmly thus allowing a firm footing for future movements. Decision We accept the evidence and submissions of the unions and confirm that they are consistent with the Wage Fixing Principles of the Commission and previous Full Bench decision referred to earlier. We do not accept the Chamber's submission that the September quarter 1996 increase ought to be included. It was not claimed formally, but, more importantly the Full Bench decision previously referred to indicated that a regular review was desirable and in that context we consider a yearly basis acceptable. The applications are approved and the nominated awards will be varied as requested by the applicants. The Commissioners responsible for each of the nominated awards will issue orders in due course. The orders will take effect from the first full pay period to commence on or after the 15 February 1997.
F D Westwood Appearances: Date and place of hearing: |