C2247/000, Transcript of Proceedings [2001] AIRCTrans 2559 (2 October 2001)

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TRANSCRIPT OF PROCEEDINGS

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

SENIOR DEPUTY PRESIDENT DUNCAN

C No 22470 OF 2000

WESTPAC EMPLOYEES' AWARD 1998

Application pursuant to section 113 of the
Act by Finance Sector Union of Australia to
vary re safety net review 2000

SYDNEY

9.40 AM, MONDAY, 10 SEPTEMBER 2001

PN1

THE SENIOR DEPUTY PRESIDENT: Could I have appearances, please?

PN2

MS R. KERLIN: I appear for the Finance Sector Union of Australia and with me I have MS A. MEARS.

PN3

MS M. JEFFRIES: I appear for Westpac Banking Corporation.

PN4

THE SENIOR DEPUTY PRESIDENT: Well, Ms Kerlin, the time has come in this matter, hasn't it?

PN5

MS KERLIN: It has. Your Honour, the FSU section 113 application seeks to update the Westpac Employees Award 1998 to incorporate increases made available under the safety net review wages 2000. Just some short background for your Honour. I'm sure you know it all but our initial application was made in August 2000. At that time the FSU sought to join an application to vary the award to incorporate the 2000 safety net wage adjustments with an application by Westpac to vary the award to incorporate the 1999 safety net wage adjustments.

PN6

At a hearing on 31 August 2000 before your Honour, the FSU indicated that we would seek to have the application for the 2000 safety net award adjustments referred to a Full Bench. The reason for this was that our application was a departure from principle 8B of the statement of principles in the safety net review wages 2000 decision. That principle required that. At least 12 months have elapsed since the rates in the award were increased in accordance with the safety net review, wages April 1999 decision.

PN7

Subsequently, on 10 November 2000, the FSU wrote to Senior Deputy President Duncan with an amended application and asked that our application be referred to the President pursuant to section 107 of the Workplace Relations Act 1996. As your Honour is aware, there is now no longer a need to have this application referred to the President for consideration as a special case as 12 months have now elapsed since the last variation.

PN8

So we are before the Commission today with an amended application but also a consent application which the parties believe complies with the principles of the safety net review wages 2000 decision. I'll just hand up that amended application.

PN9

THE SENIOR DEPUTY PRESIDENT: I'll mark that document. Did you say it's an amended application or an amended draft or both?

PN10

MS KERLIN: Amended draft, yes.

PN11

THE SENIOR DEPUTY PRESIDENT: I'll mark the amended draft handed up this morning, exhibit FSU1 in these proceedings.

EXHIBIT #FSU1 AMENDED DRAFT

PN12

THE SENIOR DEPUTY PRESIDENT: Yes, Ms Kerlin?

PN13

MS KERLIN: I'd like to take you now to the application itself, your Honour. Would you like me to go through all of the items in the application by referring through the grounds? Just starting at paragraph 4 if you like, I can go through each of those items.

PN14

THE SENIOR DEPUTY PRESIDENT: Paragraph 4?

PN15

MS KERLIN: On B the grounds on page 2.

PN16

THE SENIOR DEPUTY PRESIDENT: Yes, do go through that, it would be useful for the record.

PN17

MS KERLIN: You'll see there at paragraph 4 that item 1 in the application seeks to apply the 2000 safety net adjustments to the minimum rates of pay. At paragraph 5, you'll see we put the grounds there for item 2 which updates the arbitrated safety net adjustment clause as mandated by the safety net review wages May 2000 decision. Paragraph 6, item 3 increases the salary related cap on the payment of the shifts loadings in line with the safety net adjustments to the minimum rates of pay.

PN18

At paragraph 7, items 4 and 5 adjust salary related allowances in line with safety net movements in the key classification for the award. That key classification I mention there is O2 and in paragraph 8, item 6 and 7 increase the overtime cap and the cap regarding the fortnightly payment of the salary respectively in line with the increase in the safety net movement for the M1 classification. Did you have any questions, sir?

PN19

THE SENIOR DEPUTY PRESIDENT: No, there's no questions.

PN20

MS KERLIN: Finally, your Honour, I should mention that the parties are having discussion around further varying the award to incorporate increases payable under the safety net review wages 2001 decision. We are hopeful that this will be a consent application and as such will not offend the principles of the decision even though the application will be inside the 12 months since the variation pursuant to the application before the Commission today.

PN21

There are some issues with regard to the application for the 2001 variation that we're still working through and we hope that these will be resolved soon so that we can progress the application as soon as possible. In conclusion, we commend this application to the Commission. If the Commission pleases.

PN22

THE SENIOR DEPUTY PRESIDENT: Thank you, Ms Kerlin. Ms Jeffries?

PN23

MS JEFFRIES: Your Honour, as Ms Kerlin has stated, this is a consent variation and Westpac concurs with all the submissions of Ms Kerlin.

PN24

THE SENIOR DEPUTY PRESIDENT: Thank you. Can you confirm that the variation will not result in an increase in the wage rates actually paid to the employees?

PN25

MS JEFFRIES: That is correct, your Honour.

PN26

THE SENIOR DEPUTY PRESIDENT: This is an application by the Finance Sector Union of Australia to vary the Westpac Employees 1998 Award to include the safety net adjustments awarded by the Commission in the safety net review of wages of April 1999 and May 2000. The variation is sought on two legs. First, that as far as the most recent adjustment that is sought, more than 12 months will have passed since the rates in the award were increased in accordance with previous safety net review decisions and secondly, in reliance on the provisions of the current wage fixing principles, paragraph 8, item (c) which provides that where variations are by consent and do not result in an increase in the wage rates actually paid to the employees or increase the wages costs for any employer, any applicable 12 months delay between variations may be waived.

PN27

I'm satisfied that that is the position in this case. The union, the FSU, party to the award has given a specific commitment as to the absorption of the increase. The clause required to be inserted in the award by paragraph 8 of the current wage fixing principles will be inserted. The rates in the award have not been increased other than by safety net adjustments or as a result of the application of the minimum rates adjustment or work value change principles since November 1991 and adjustments to allowances have been appropriately adjusted in accordance with the Furnishing and Glass Industries decision.

PN28

Draft orders have been supplied by the applicant union and they are consented to by the respondent bank. The award will be varied to take account of the draft order with effect on and from the first pay period commencing after today's date. I adjourn this matter indefinitely.

ADJOURNED INDEFINITELY [9.47am]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #FSU1 AMENDED DRAFT PN12