AG2002/1814, Transcript of Proceedings [2002] AIRCTrans 1140 (8 April 2002)

AUSCRIPT PTY LTD
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TRANSCRIPT OF PROCEEDINGS


O/N VT03264
AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER FOGGO

AG2002/1814
AG2002/1815

APPLICATION FOR CERTIFICATION
OF AGREEMENT

Application under section 170LJ of the
Act by Toyota Motor Corporation Australia
Limited and Toyota Motor Sales Australia
Limited and Another for certification of
the Toyota Australia Workplace Agreement
(Altona) 2002

Application under section 170LJ of the
Act by Toyota Motor Corporation Australia
Limited and Toyota Motor Sales Australia
Limited and Others for certification of
the Toyota Australia Workplace Agreement
(Port Melbourne, Sydney and Regions) 2002

MELBOURNE

10.35 AM, THURSDAY, 21 MARCH 2002

PN1

MS H. BOX: I appear for Toyota Motor Corporation Australia Limited with MR P. ELKINS.

PN2

MR M. SYMON: I appear for the CEPU Electrical Division.

PN3

MR D. SMITH: I appear for the AMWU Vehicle, T and S and Metal Divisions with MS G. TIERNEY and MR A. COLE.

PN4

MS A. PARKES: I appear for the National Union of Workers.

PN5

THE COMMISSIONER: Thank you. I also have correspondence which has been received from the Australian Services Union and from APESMA. Both those organisations are unable to be represented but have provided their authorisation for the certification of both agreements. Ms Box?

PN6

MS BOX: Thank you, Commissioner. Commissioner, the company has made an application in accordance with division 2 of part VIB of the Workplace Relations Act 1996 in that it seeks certification of an agreement made in accordance with section 170LJ of this Act. Also before you today is an application AG2002/1815 which seeks certification of the Toyota Australia Workplace Agreement (Port Melbourne, Sydney and Regions) 2002. Although this matter will be dealt with separately it is worth noting, Commissioner, that I will be relying on the submissions of this case to support the separate application.

PN7

Commissioner, if I may I would like to outline the processes and the key features of the agreement before you to which we seek certification. Commissioner, at a conciliation hearing before you on 18 February 2002, the number was AG2002/1008, a detailed account of the procedures undertaken of our negotiations was presented. I do not intend today to go into as much detail as was presented on the day but I do intend today to give you a brief overview and to re-state the necessary provisions of the procedure.

PN8

Negotiations for this agreement commenced on 10 October 2001. On this date the Company presented its log of claims. Unions party to the agreement presented their log of claims on 24 October 2001. Over the ensuing months working parties in conjunction with the main table negotiations proceeded to discuss and negotiate all issues in the log of claims. On 14 February 2002 the parties reached an in principle agreement. Draft conditions of the proposed agreement were finalised prior to 20 February 2002 and the 14 days statutory communication process commenced on Wednesday 20 February 2002.

PN9

Throughout the negotiations both the company and the union have undertaken communication to all affected employees via employee bulletins and face to face communication. During the statutory communication process copies of the agreement were made available via the Internet, in group rooms and individual copies of the proposed agreement were issued to all affected employees. I would now like to highlight some of the key features of this agreement. The agreement before you today is a very comprehensive one. As a summary the following are some of the key outcomes included in the agreement.

PN10

Firstly, there is a mutual commitment to the continuation of achieving improvements in international standards, teamwork, productivity and flexibility. Flexibility is still a key focus of our agreement and is fundamental to Toyota and collective success within the market. there is a mutual commitment to continuing the focus on improving and adhering to acceptable behavioural standards as outlined in the teamwork charter. The purpose of the charter is to ensure an understanding, consistency and fairness in dealing with behavioural issues at the workplace. Mutual recognition of effective communication is another feature of the agreement.

PN11

As such the recognition of the importance of the role of the Senior Consultative Group, known as the SCG, is there. This agreement also identifies changes to representation of the SCG and is intended to ensure that all occupational groups are represented. There is a new process and procedure for facilitating the implementation of business structure change including out sourcing and this can be found at clause 15.4. Commissioner, during the course of the main table negotiations the unions asked explicitly will Toyota use out sourcing. We responded equally explicitly that over the next few years our company will undertake some significant changes will include out sourcing.

PN12

Therefore, it is essential we have clear processes to jointly address this issue. The new workplace agreement process provides for consultation, conflict resolution and Toyota's right to decide on business structure change. These are the focus of the process. Toyota in this agreement clearly states its commitment to recognition to the job and income security of its employees. In doing so it is recognised that the long term achievement of job and income security for employees is directly linked to Toyota's ability to achieve alternative work as defined in the agreement and employment practices to allow for operating at world competitive levels in relation to productivity and cost.

PN13

The business prosperity and job and income security process is Toyota will decide on business structure change which includes out sourcing decision and joins with unions, employee representatives and employees to follow the new process and consult and reach agreement on implementation issues. Key points to note, Commissioner, in this process are consultation on implementation, status quo while consultation for processes are in place. There is a time frame of 10 weeks and there are four separate pathways to resolve conflict which may arise including in the case of industrial action Toyota may refer the issue to the AIRC for conciliation and arbitration.

PN14

In respect to some significant condition outcomes in the agreement the agreement allows for firstly wage increases is 15.5 per cent over the life of the agreement as found at clause 35. That is wage increases of 5 per cent in the first year, five per cent in the second year and 5.5 per cent in the third year. Increases are payable on the first full pay period starting on or after 8 February each year. Shift premiums have also been reviewed and shift premiums are now payable to authorised leave excluding long service leave. These are found at clause 21. This is a major improvement in conditions for shift workers at Toyota. Toyota will now follow the standard award conditions and past local arrangements will now cease.

PN15

The establishment of a working party in clause 19.9 has been agreed to to review the concept of a nine day fortnight 38 hour week. In committing to this review Toyota has clearly outlined that the introduction of such a concept must not increase the costs of running the business. Any costs identified in the review must be satisfactorily removed or mitigated. We have identified some issues which assist in factors in the process of removing and mitigating the costs. Some of these are the possibility that this concept or practice may not apply across all areas or employment groups within Toyota, allowing for the scheduling of RDOs with flexibility across the working week to minimise impacts on production.

PN16

The proposal may impact employment conditions related to working time and these issues must be identified and resolved. The ability to use employment contracts, that is Toyota having the capacity to decrease employment levels in a timely way to respond to market changes therefore needing to use fixed term or maximum term contracts as well as other forms of non-ongoing or permanent contracts. And also the ability for switching between RDOs and PDOs for scheduling them singularly or in a block is an essential flexibility to support cost reduction in circumstances where we must alter our production in response to domestic and export demands.

PN17

At clause 10, Commissioner, you will see some new provisions in relation to leaving Toyota and in particular a new clause on redundancy which outlines definitions of redundancy and consolidates existing positions. Also outlined in clause 10, Commissioner, is the payment of 15 days accrued sick leave paid out on death, retirement, redundancy and for employees with 15 years or more service on resignation.

PN18

THE COMMISSIONER: I am sure if people are dead they will really appreciate that.

PN19

MS BOX: Commissioner, there is also new allowances and increases to car and allowances found at clause 33. The agreement also allows for career progression models as outlined in appendix F. There are new initiatives for team leaders and production and warehousing streams for achieving QF3 qualifications. For the trade areas under the career structure, progression and development a need has been recognised to review the current positions that include design, manufacturing and installation. Currently elements of this work are performed by employees operating in various streams, that is those in the trades, techs and engineering streams.

PN20

To mirror this need in our work place the current task commonality operating between the trades and tech streams will need to be reviewed. The review for this trades area will also involve the techs division. And, Commissioner, you will find at appendix K the commitment to improvements in occupational health and safety by the parties. Commissioner, this is just a summary of the key points arising from this comprehensive agreement which we are seeking clarification for. In respect to our legal obligations for certification it should be noted, Commissioner, that this agreement clearly passes the no disadvantage test.

PN21

It has a dispute settling procedure and you will find that at appendix C clause 5 under our heading of "Problem resolution and disputes avoidance procedure". The agreement also specifies a nominal expiry date of not more than three years. Clause 5 - period of operation states:

PN22

This agreement will operate for a period of three years from the date of certification.

PN23

At clause 6 - our no extra claims clause - the parties commit to making no further claims during the life of the agreement apart from those specifically referred to. In relation to the matter that was before you on 18 February, case number AG2002/1008, in respect to outstanding issues between the Trades Group and Toyota these matters have now been resolved with the company agreeing to delete inclusion of the trade skill allowance of $15. In doing so the Trades Group recognise and accept this matter cannot be raised again for discussion and/or negotiation for the life of this agreement in accordance with our no extra claims clause.

PN24

This commitment was given both at the conciliation hearing on 18 February and reaffirmed at our discussion with the Trades Group when it was agreed the company would delete this allowance from the draft agreement. Commissioner, as stated previously, during the 14 days statutory communication process the agreement was made available to all affected employees. This also included translating the agreement into Mandarin and Vietnamese to cater for employees of non-English speaking backgrounds. Upon the conclusion of the 14 day statutory communication period which concluded on 6 March 2002 a vote was conducted regarding the acceptance of the agreement by the unions on 7 March 2002. At this vote a valid majority of employees overwhelmingly approved the agreement.

PN25

Commissioner, since the vote was undertaken the agreement has had some very minor variations to it. These variations do not significantly change the intent and/or purpose of the agreement and were varied prior to any parties signing the agreement. The variations are merely typographical or correction variations. Those are at page one, clause 3.1, correction to the title of the union party to the agreement. At page four, clause 7.2.2.4 a correction to the title of a management representative on the SCG which showed as "GM' which should show as "DGM". And in appendix F on page 47 the heading was to read "Production and Warehousing Streams" not "Employees".

PN26

In conclusion, Commissioner, the company would also like to re-state the undertaking which was made to the AIRC by the company in response to an application made by the CEPU regarding an application by the CEPU for respondency at Altona in September 1999. That undertaking is Toyota will not engage in any conduct in reliance of clause 3.1 of the Toyota Workplace Agreement 2002 which contravenes part 10A Freedom of Association of the Workplace Relations Act 1996. Commissioner, for the record the company would like to take this opportunity to thanking and congratulating all participants involved in the negotiations. All participants have worked extremely diligently in negotiating claims but more so have worked in a spirit that can only be described as the most productive manner in Toyota's history of negotiating agreements.

PN27

The spirit of these negotiations has been very collaborative and participative. The parties at all times remained focused on the issues at hand and as such the maturity displayed by all involved is a credit to all. It has resulted in an agreement that is the first - sorry - in an agreement reached without the threat or initiation of industrial action. Again this is the first time in the history of Toyota's negotiations of enterprise agreements this has occurred. Commissioner, it is for these reasons that Toyota is seeking certification of the Toyota Australia Workplace Agreement (Altona) 2002 in accordance with the provisions of the Act. If the Commission pleases.

PN28

THE COMMISSIONER: Thank you. Mr Smith.

[10.55am]

PN29

MR SMITH: Commissioner, I concur with Ms Box's submissions and ask today that you certify both Toyota agreements before you. The agreements from my union's perspective are outstanding and they are a credit to all unions that have been involved in the negotiations, and at this point I would also take the opportunity to compliment Toyota management on the professionalism they displayed during the negotiations. Commissioner, I will now take you to two issues contained in the agreements, the first being the nine day fortnight proposal in the agreement which is one of a number of matters still requiring further work to bring it to fruition.

PN30

Importantly though the parties are committed to doing this in a co-operative way prior to the end of June this year. The claim, and ultimately the outcomes, reflect two imperatives, one bringing our members' desire for more meaningful leisure time, and equally, the company's need to boost capacity. This will be done by rostering that extra day off per fortnight, thus creating a potential further 12 days production. It will also mean employing four to five per cent more labour to accommodate the new rostering arrangements.

PN31

Commissioner, this particular issue was once subject to some reasonably internal negotiations, as you would expect. The outcome is one now that satisfies the competing interests of both our membership, to see a guaranteed introduction, and the employer, who places a great deal of emphasis upon the introduction of the new arrangements being affordable. The agreement before you, Commissioner, addresses this issue at clause 19.9.2 on page 17 where it states:

PN32

The parties will work to mitigate the costs.

PN33

Etcetera, Etcetera. The point of this language is to recognise there may be costs identified, but they would have to be weighed up in terms of the benefits of the introduction, and once identified the parties would work together to address and limit these costs. We are confident with good will all parties will realise substantial benefits from this approach. Ultimately, Commissioner, like with all change, we will still need to submit any negotiated outcomes to our membership for their consideration, and perhaps yourself, to vary the agreement for its detail.

PN34

Commissioner, secondly contained within the agreement is arrangements for an AQF3 or Australian Qualification Framework proposal which builds on previous agreements and those reached elsewhere within the industry in this bargaining round. AQF3 is in fact an equivalent qualification to that of base trade and recognises the evolution in skill that has taken place within the industry for non-trades workers. Previous agreements recognise the seamless progression between AQF2 or the VIC in the newly established AQF3 levels.

PN35

This agreement is about giving real meaning to progression between these levels and has identified skill and competency as the sole means of movement. We will now commence the process of identifying jointly with the employer these competencies providing access to higher rates of pay for our membership and higher skill levels for the employer. If the Commissioner pleases.

PN36

THE COMMISSIONER: Yes, thank you. Mr Symon.

PN37

MR SYMON: Commissioner, I only appear in relation to the Port Melbourne, Sydney and Regions Agreement because we are not a party to the Altona Agreement directly. In regards to that before you I have already lodged a statutory declaration which has been endorsed by the majority of our employees and I also believe it meets the requirements of the Workplace Relations Act. We are in agreement with the submissions of the other parties and we, therefore, wish to have the agreement certified. If the Commission pleases.

PN38

THE COMMISSIONER: Yes, thank you. Ms Parkes.

PN39

MS PARKES: If the Commission pleases. If I could firstly just tender original signed versions of a statutory declaration in the name of Mr Greg Sword, general secretary of the union and an original signed version of the agreement also by Mr Sword. Commissioner, the NUW would support the submissions that have been put before you by both Toyota and the other unions in support of the certification of the agreement, and we would seek to rely on the statutory declaration of Mr Greg Sword before you to attest that the agreement meets the requirements of the Workplace Relations Act 1996.

PN40

The NUW would also like to tender a letter dated 19 March 2002 entitled Recognition of NUW Employee Representatives at Toyota's Brisbane Warehousing Operations under the Toyota Workplace Agreement 2002. That relates to AG2002/1815, the Toyota Australia Workplace Agreement Port Melbourne, Sydney and Regions 2002. This is a letter that has been agreed to between the NUW and Toyota. Indeed, it would be fair to say that the NUWs signing of the agreement was conditional upon this agreement being reached.

PN41

The letter provides for a recognition in certain circumstances of a second NUW employee representative at the Brisbane warehousing operations.

PN42

THE COMMISSIONER: Yes, a copy of that is on file and has been forwarded to the Commission so I won't mark it as a separate exhibit.

PN43

MS PARKES: If the Commission pleases that concludes my submissions.

PN44

THE COMMISSIONER: Yes. Thank you. Do the other parties have a copy of the correspondence which has been jointly signed by Mr Jakobi for Toyota and Mr Sword for the NUW?

PN45

MS BOX: Yes, we do, thanks, Commissioner.

PN46

THE COMMISSIONER: In listening to the submissions of the parties this morning I was struck by firstly how long some of you people, as I look around, have been involved in negotiations at the workplace level, and secondly, how much things change or have changed at this workplace and other Toyota workplaces over the past few years. There are some downsides to this and there are some pluses. On the downside a key source of additional money will be cut off for Charlie Mirmara, who no longer will be able to be seen on the front page of the paper striking at Altona and being picked up as an extra in the movie game. Bad luck, Charlie. On the other hand, the sort of words that have been used by the unions this morning and by the company, even for mean old Commissioners, really do give you goose bumps.

PN47

I mean to have the union, the major union involved at the Altona site coming out with some of the words and complimenting Toyota management is fantastic, nothing short of that. By the same token, and having been involved early on with some of the management people, but to hear the involvement of such a wide range of people on behalf of the union and on behalf of management in the working parties, and all the way through, and carrying an agenda which is reflected in your agreements, not only shows the capacity of all you people to be able to change, but also shows that the aspirations of the employees and the company, where they are properly understood, can be complimentary to each other and that it is not a them and us situation.

PN48

And I would certainly endorse the spirit of the submissions here this morning and say that the agreements themselves show a degree of sophistication which are not apparent in some other agreements, and that from both sides - or from all sides you are to be congratulated in the level of communication that has been the hallmark of this enterprise bargaining process and also in the commitment that you have shown to resolving the process to a mutual advantage. And it certainly is an agreement which in this day and age is a fabulous agreement for everyone concerned.

PN49

Quite rightly Mr Elkins has said this is the start of the next stage. The proof will be in the pudding and with these little million dollar page puddings here I don't want you coming back to me every week and saying, "No, Commissioner, that wasn't what we meant," or "No, that wasn't what was behind the agreement in this particular part." I have every faith, having got this far, that the systems that you have set up to deal with such issues will be put into place and that the assistance of the Commission, whilst gladly given, will be very seldom required.

PN50

In fact I will probably have to ask Glenys to come out and see if you are all okay because I won't have heard from you for a while. In relation to the implementation of the agreements, and based on past disputes that have been before the Commission, the most important issue in my mind will be the consistency of approach to the implementation of the agreement right across all the sites and I hope that you are able to achieve that. I deal first with the application in AG2002/1814 which is an application for certification of the Toyota Australia (Altona) Agreement.

PN51

Lodged with the application were statutory declarations from Mr Elkins of Toyota, Mr Jones for the vehicle division, Mr Nicolaides for the technical and supervisory division of the AMWU and Mr Oliver for the metal division. On the basis of those statutory declarations and the submissions of the parties this morning I believe that the provisions of the Act have been satisfied and that the rules of the Commission have been complied with. In accordance with section 170LT of the Act the Toyota Australia Workplace Agreement (Altona) 2002 is certified. The agreement shall come into force from today's date, 21 March 2002 and consistent with the terms reached by the parties the agreement shall remain in force until 20 March 2005.

PN52

Pursuant to the Act the certification of this agreement brings to an end the bargaining period in C573/2002. In relation to the application filed in AG2002/1815 for the Toyota Australia and Toyota Motor Sales Agreement I note the statutory declarations of Mr Elkins for Toyota, Mr Mighell for the CEPU, Mr Slape for the ASU, Mr Artis for APESMA, Mr Oliver for the metal division of the AMWU, Mr Jones for the vehicle division of the AMWU, Mr Nicolaides for the T and S division of the AMWU and Mr Sword for the NUW. The statutory declarations and the submissions of the parties show that the provisions of the Act have been satisfied and the rules of the Commission complied with.

PN53

In accordance with section 170LT of the Act the Toyota Australia Workplace Agreement (Port Melbourne, Sydney and Regions) 2002 is certified. The agreement shall come into force from today's date, 21 March 2002 and shall remain in force until 20 March 2005. The certification of this agreement brings to an end the bargaining period which was lodged for all the unions, excluding APESMA, in C573/2002. There being nothing else my congratulations to the parties and these proceedings are now adjourned.

ADJOURNED INDEFINITELY [11.07am]