AG2001/639, Transcript of Proceedings [2001] AIRCTrans 813 (9 May 2001)

AUSCRIPT PTY LTD
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TRANSCRIPT OF PROCEEDINGS

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER LARKIN

AG2001/639

DRAYTON COAL PTY LIMITED and ANOTHER

Application under section 170LS of the
Act re wages and conditions

SYDNEY

4.05 PM, THURSDAY, 19 APRIL 2001

Adjourned Indefinitely

PN1

MR J. HUGHES: I appear for Drayton Coal, and beside me is MR R. LAURENCE, Operations Manager Mining, and MR J. WILSON, Operations Manager Mining Services.

PN2

MR P. JORDAN: I appear for the Construction Forestry Mining Manager Union, and with me I have MR R. EDWARDS, President of Drayton Coal, the Lodge Secretary MR D. VAUGHAN and Vice Presidents MR B. DORIN, MR B. CREBBIT, MR G. GRAHAM and MR C. SUDERS, all of whom have been involved in the negotiation of the Agreement.

PN3

THE COMMISSIONER: I suppose the parties are quite surprised to see me sitting here and not Commissioner Wilks this afternoon, but unfortunately the Commissioner was called away, so he has asked me to peruse the agreement and hear the parties on the certification on both, the Commissioner had a certain amount of input into the agreement, or discussions with the parties. Now, who has drawn the short straw to address? Mr Hughes? Yes, please.

PN4

MR HUGHES: Commissioner, you have before you an application of Drayton Coal Pty Limited under section 170LS of the Workplace Relations Act, certifying industrial agreement which is our enterprise agreement 2001, in accordance with division 3. The application was lodged as prescribed by section 170LS(2) within the 21 day period. Drayton Coal has met the statute requirements set out in section 170LT of the Act, and has completed statutory declarations supporting this fact as prescribed by 170LS 141 R32. I would like to take a few moments if I could, Commissioner, and just take you through a few points. Drayton Coal is currently implementing a business plan that will give the business the best possible chance to remain competitive in an aggressive market.

PN5

The intent of the company was to reach a consent agreement that would build on the strengths of the previous agreement, the A 99, with its employees, to underpin this business plan. Discussions between the parties to determine what industrial legal would replace the Drayton Coal Industrial Agreement 1999 began on 15 December 2000, and in accordance with clause 34 the agreement review process of that agreement, which was certified on 1 March 1999 by Commissioner Harrison. The parties entered the negotiations at the time with the CFMEU and Drayton Coal Pty Limited, discussions occurred at both Lodge Executive sites .... district levels. A joint paid introductory meeting was conducted on 30 January 2001 onsite, where employees were taken through what the company was seeking in terms of replacement of the enterprise agreement 99.

PN6

The company also spoke to the economic and resource challenges that lay ahead for Drayton, and the need for replacement of EA 99 to facilitate our ability to be able to meet those challenges. The employees' representatives then took counsel from the employees on their expectations from negotiations. The company employees and the union representatives met a number of occasions to negotiate and workshop a range of issues associated with renewal of the enterprise agreement, following on from the joint meeting of 30 January 2001. A further paid report back meeting was held onsite for the employees and their representatives on 27 February 2001, to keep them informed of the progress of the negotiations. On 27 and 28 February 2001, a draft EA document was provided to all employees for their consideration. Over the next two weeks, paid shift meetings were held with each crew to allow members of the negotiating team to explain the document and intent and deal with the issues that needed clarification. The statutory declaration submitted by the company details the process used.

PN7

On 16 March 2001, a paid meeting was conducted off site for the employees to discuss the outcome of negotiations and vote on the agreement. Commissioner, today I am pleased to report that after extensive discussions between Drayton Coal Management, employees and representatives of the CFMEU, agreement has been reached between the parties in all outstanding matters associated with renewal of the Drayton Coal Industrial Agreement, as amended, for a further period of two years. The agreement was endorsed and a mass meeting of Drayton Coal CFMEU members on Friday 16 March 2001.

PN8

Drayton Coal believes the maturity displayed by the members of the negotiating team and the workforce in their acceptance of the long term necessity of remaining competitive in the very difficult mining environment, with increasing strip ratios, is one of the key elements arriving at a consent agreement. As a package, this agreement represents a further refinement of the relationship between both Drayton Coal and its employees. The parties are committed to the 2001 agreement, and are committed to a successful implementation over the coming months, if the Commission pleases.

PN9

THE COMMISSIONER: Thank you, Mr Hughes. Mr Jordan?

PN10

MR JORDAN: Commissioner, the application before the Commission today is for the certification of the Drayton Coal Industrial Agreement 2001, and is made pursuant to division 3 of the Workplace Relations Act 1996. The Agreement partly settles the matters found to be in dispute in C number 22841 of 1995. In order for the agreement to be certified, it must satisfy the statutory test contained in section 170LT of the Act. The Commission should be in receipt of a statutory declaration made by me that addresses the specific requirements of section 170LT. The CFMEU submits that the Drayton Coal Industrial Agreement 2001 satisfies the requirements of section 170LT of the Act.

PN11

The Drayton Coal Industrial Agreement 2001 replaces the Drayton Coal Industrial Agreement 1999, which was certified by the Commission on 1 March 1999 in accordance with the Workplace Relations Act 1996. The agreement is binding on the CFMEU, Drayton Coal and its employees, who are members of the CFMEU and are employed in the principal functions of production, mechanical or electrical. The agreement has been made in regard to the special circumstances of the Drayton Coal open cut mine, it is a stand-alone agreement.

PN12

Commissioner, a significant provision of the agreement is sub-clause 28.1, Work Practices. Whilst it is in identical terms as the 1999 agreement, the parties have a further separate document that remains the property of the parties, that sets out their understanding of the agreed work practices. The aim of the parties was to determine how flexibility between principal functional areas will ensure continuity of the business processes. The discussions developed the application of the general principals of flexibility as outlined in subclause 28(1) of the agreement.

PN13

Commissioner, a further significant provision of the agreement is a long standing provision of past agreements, it being sub-clause 2.2, Working Relationship. It is an important provision, and is worthy of drawing attention to. The clause states:

PN14

The parties are committed to establishing a working relationship ...(reads)... in order to effectively manage change.

PN15

Commissioner, that relationship has been established in the past, and very much exists today. That sub-clause Working Relationship has a direct link to clause 15, Consultative Arrangements. Commissioner, Consultative Arrangements is a direct clause that commits the parties to working together, also it commits Drayton Coal to meet with the duly elected representatives of the union to discuss any major change, also to communicate to employees the nature of and the need for any proposed changes, and also to provide opportunities for employees to express their view on, and provide input to, those proposed major changes.

PN16

Commissioner, those are the three significant and important provisions that are in the Drayton Coal Industrial Agreement. In finishing, may I say this is the parties' fifth agreement since 1992. This agreement like others before it had been developed by a long and well established working relationship. The parties entrust each other to deliver their commitments and credibility in the true spirit and intent, as the agreement was negotiated. The agreement creates a positive atmosphere, and will deliver what's needed to the business. The CFMEU negotiating group are all represented here today. Their involvement and effort in the development of the agreement is worthy of mention.

PN17

I thank them for their valued assistance, I am privileged to have been associated with such a group, I also wish to acknowledge the involvement and effort of the senior management team who are also represented here today. They are respected management and their cooperation and understanding was appreciated. I commend the agreement and respectfully seek the Commission to certify the Drayton Coal Industrial Agreement 2001 effective as of today. May it please the Commission.

PN18

THE COMMISSIONER: Thank you Mr Jordan. Gentlemen, thank you for your submissions this morning, they are much appreciated. The application that I have before me this morning, is pursuant to section 170LS of the Workplace Relations Act, the certification of an agreement known as the Drayton Coal Industrial Agreement 2001. The agreement has been made between Drayton Coal Pty Limited and the Construction, Forestry, Mining and Energy Union. The application has been heard by me this morning and on the basis of the statutory declarations filed by the parties to the agreement and the submissions of Mr Jordan and Mr Hughes, I am satisfied that the relevant requirements of the Act and the rules have been met.

PN19

In accordance with section 17LT of the Act, I will certify the attached written agreement between the parties in the matter before me. The agreement shall come into force from today's date, being 19 April 2001, and shall remain in force until 19 April 2003. I complement on your agreement, gentlemen, and also on your submissions.

PN20

The Commission is adjourned.

ADJOURNED INDEFINITELY [4.20pm]