IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1985

Application T. No. 97 of 1985 seeks variations to Part I and Part II of the Timber Merchants' Award to accommodate an agreement to reduce working hours from 40 to 38. It also sought other minor award changes and:

The catalyst for the application was essentially variations to the Federal Timber Merchants' Award; which we were advised covers ninety-five percent of the Timber industry in this State. Consequently, this application has relevance to approximately five (5) percent of those covered by Timber Merchants Awards.

The Federal Award variations had effect from the first pay period commencing on or after 20 February 1984.

The subject application was lodged with the Registrar on 4 April 1985 and heard by this Full Bench on 7 May 1985.

At the outset of proceedings on 7 May, Mr. Bannister appearing for the Australian Timber Workers' Union (T.W.U.), sought an adjournment. He advised the Commission that Mr. Durkin appearing for the Federated Clerks' Union (F.C.U.) and the Shop Distributive and Allied Employees' Association (S.D.A.E.A.) foreshadowed problems with the application, and the parties needed time to resolve them in conference. The proceedings were adjourned for one hour.

On recommencing, Mr. Sertori appearing for the Tasmanian Chamber of Industries (T.C.I.) and the Tasmanian Sawmillers' Industrial Association (T.S.I.A.) advised as follows:

It was further indicated that while agreement had been reached with the T.W.U. on all matters contained in the application, further discussion with other parties was necessary.

The matters for consideration in this decision are therefore thirteen variations to Section 1 of Part II of the award to accommodate the agreement to reduce working hours. In addition three relatively minor changes in conditions are sought to reflect variations already made to the Federal Award.

Exhibit B.1. submitted by Mr. Bannister for the T.W.U. contained a summary of the cost offsets negotiated by the parties. The offsets were divided into two categories - direct and indirect cost savings.

Direct cost savings are achieved in the following areas:

- removal of afternoon smokos;

- removal of wash up and walk off time, except in the case of wash up time where unusually dirty or objectionable work situations had applied;

- an extension of the daily spread of hours during which ordinary time can be worked;

- flexibility of starting and finishing times;

- a rostering of meal breaks where this will assist work procedures and productivity (no penalty payments will be made in such circumstances);

- payment of wages by non cash means;

- employment of casuals to cover peak periods (this has not been possible in the past).

Indirect cost savings may be achieved in the following areas:

- the introduction of continuous shift work where possible to allow a better utilization of equipment and therefore capital;

- union participation in the counselling of employees where excess absenteeism is shown to exist;

- the union will assist in ensuring the mandatory wearing of protective clothing and/or equipment;

- union agreement to greater flexibility in the use of labour;

- a reduction of close down provisions during Christmas and New Year periods;

- an agreed disputes procedure to handle any disagreement over the taking of rostered days off;

- acceptance of twelve (12) programmed days off per annum.

It was estimated by the parties that the average cost offsets that should be achieved across the industry would be 3.86%. A further saving could be achieved by employers, where possible, implementing one or more of the indirect savings proposals.

It is our view that the above cost offset proposals represent a genuine attempt by the parties to comply with the National Wage Principles. Subject to proper advice and instruction being given to the employers affected substantial cost offsets can be achieved.

An important consideration in this matter is that the Federal award covering up to 95% of employees in this industry have had the benefit of a 38 hour week since February 1984. The agreement reached resulting in that award being varied by a Full Bench of the Federal Commission is basically the same as in this matter.

In dealing with the three matters agreed but not part of the hours claim, we do not believe that they conflict with the National Wage Principles or Public Interest considerations. In fact, the agreement to rewrite clause 30 "Shop Stewards" has the following stated intention:

and is therefore commended.

The award will be varied to accommodate the agreement of the parties as detailed in claims 1 to 16 inclusive in the statement of particulars attached to the application. The variations to apply from the first pay period commencing on or after 30 May 1985.

Because of the complexities involved in the preparation of an order in this matter a draft will be forwarded to the parties for their perusal and checking. Should it be necessary, Commissioner King will convene a hearing or conference to settle the final order.