IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

This application was the subject of a meeting of the Cleaners Industrial Board on 18 December 1984, (A.No.54 of 1984) convened under the provisions of the Industrial Relations Act, 1975 and was adjourned sine die.

The application was passed to the Industrial Commission pursuant to the Transitional Provisions of the Industrial Relations Act, 1984 and renumbered as T66 of 1985.

The application by the Federated Miscellaneous Workers Union of Australia (Tasmanian Branch), was to vary the standard hours of work in the Cleaners Industrial Board Award by reducing them from 40 to 38.

It was submitted by Mr. O'Brien, representing the Union, that the parties had reached agreement on the introduction of the 38 hour week, and in their view, it could be implemented with little, or negligible cost.

He then tendered a detailed document identifying consequential alterations to the Award necessary to give effect to the agreement which included such matters as -

(a) Hours of Work;
(b) Implementation of the 38 Hour Week;
(c) Notice of Days Off;
(d) Substitute Days;
(e) Accumulation of Rostered Days Off;
(f) Sickness on Days Off;
(g) Averaging of Payment of Wages;
(h) On-site Agreements;
(i) Overtime;
(j) Holidays with Pay
(k) Annual Leave;
(l) Part-time and Casual Employees;
(m) Payment of Wages.

Mr. Sertori, representing the Tasmanian Chamber of Industries and the Association of Cleaning Contractors of Australia, estimated the breakdown in costs associated with the introduction of the 38 hour week to be an average increase of 5.7% in a typical cleaning contractor's wage bill.

He then proceeded to outline the value of the cost offsets associated with the agreement which he estimated to be up to 5%.

The parties emphasised that in a highly efficient service industry, it was difficult to identify and cost the offsets presented, however, it had been done to the best of their ability.

We are mindful that the Award, in the main, applies to contract cleaners.

We also note that the industry is most competitive and efficient but, nevertheless, the Commission must apply the test to any agreement reached to reduce standard hours of work to ensure that all possible cost offsets can be drawn out of changes in work practices.

The Commission views, with some concern, comments made during the hearing about contracts that contain a "rise and fall" provision and places on record that it will view with disfavour any company passing on costs associated with the introduction of the 38 hour week.

If parties come to the Commission insisting that agreements be ratified on the basis of little or no cost, then it would be quite improper (if at a later state, it was detected that costings presented to the Bench were found to be deficient) to pass on those costs.

In our view, the agreement reached by the parties and the cost offsets associated with the agreement just meet the criteria laid down in the guidelines and in particular, Principle 5.

However, we are satisfied that all possible avenues have been explored in a genuine attempt to negate costs.

Therefore, we have decided that the Cleaners Industrial Board Award should be varied in accordance with the attached Order and Correction.

The operative date shall be from the 25^th of March 1985.