C2002/2806, Transcript of Proceedings [2002] AIRCTrans 2381 (27 June 2002)

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TRANSCRIPT OF PROCEEDINGS

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

SENIOR DEPUTY PRESIDENT POLITES

C2002/2806

ENERGY DEVELOPMENTS LIMITED - AWU
HYDROCARBONS, GAS AND ENERGY AWARD 2001

Application under section 113 of the Act
by the Australian Workers' Union to vary
the above award re Safety Net Review -
Wages May 2002

SYDNEY

2.10 PM, WEDNESDAY, 12 JUNE 2002

Adjourned sine die

PN1

THE SENIOR DEPUTY PRESIDENT: Can I have appearances, please.

PN2

MR G.R. BEARD: I appear on behalf of the Australian Workers'

PN3

Union.

PN4

THE SENIOR DEPUTY PRESIDENT: There is nobody here.

PN5

MR BEARD: It is a little bit different from the usual hearings and conferences we have with regard to an energy developments and AWU matter, your Honour.

PN6

THE SENIOR DEPUTY PRESIDENT: It is.

PN7

MR BEARD: I have to admit I'm not quite sure. I thought there would have been appearance from the company or at least some written advice - - -

PN8

THE SENIOR DEPUTY PRESIDENT: It is out character, isn't it?

PN9

MR BEARD: - - - from them in regard to this matter. However, I can advise you that I did forward a copy of the application draft order and allowance schedule through to the company on 5 June this year, and I said it was afforded by a facsimile and a statement to that effect, together with the covering sheet and also a receipt from the facsimile transmission has been prepared for the file. I will hand that to you.

PN10

THE SENIOR DEPUTY PRESIDENT: Yes.

PN11

MR BEARD: I also take the opportunity to hand to you a copy of the draft order and allowance schedule.

PN12

THE SENIOR DEPUTY PRESIDENT: I will mark it all composite exhibit 1.

EXHIBIT #1 COMPOSITE FACSIMILE TRANSMISSION, COPY OF DRAFT ORDER AND ALLOWANCE SCHEDULE

PN13

MR BEARD: Thank you, your Honour.

PN14

THE SENIOR DEPUTY PRESIDENT: It has still been received, has not it?

PN15

MR BEARD: Yes, your Honour. In fact, I'm following the forwarding of the documentation. I did speak with both Frank Turner and also Kim Timmonds in regard to the matter and I had verbal confirmation from Kim in regard to the contents of the draft order and the allowance calculations.

PN16

THE SENIOR DEPUTY PRESIDENT: Yes.

PN17

MR BEARD: As I said, I did expect either an appearance or - - -

PN18

THE SENIOR DEPUTY PRESIDENT: Yes.

PN19

MR BEARD: - - - some written response.

PN20

THE SENIOR DEPUTY PRESIDENT: Perhaps you had just better run me through it.

PN21

MR BEARD: I think we will go through - thank you, your Honour.

PN22

THE SENIOR DEPUTY PRESIDENT: Yes.

PN23

MR BEARD: You would be aware, your Honour that the application that was filed was a considerable document.

PN24

THE SENIOR DEPUTY PRESIDENT: Yes.

PN25

MR BEARD: However, in today's proceedings the union is seeking to only refer to the first three items contained within the draft which do in fact refer to the safety net review decision of May 2002 which is recorded print PR002002. That is in regard to the wage rates, the work related allowances and also with regard to increases for the expense related allowances. The other matters contained within the application will be subject to further discussion between the parties and at some stage, a re-listing before you. At this stage, your Honour, as I say, we are looking to vary the award in accordance with the safety net review of 2002. The draft order sets out wage increases of $18 per week to the minimum rate and then those have been carried through with regard to all the classifications.

PN26

THE SENIOR DEPUTY PRESIDENT: Yes.

PN27

MR BEARD: The commitment to the absorption of those increases into any over award payments as specified in the safety net review decision, will be inserted into the award and the union gives its commitment in regard to that particular matter. The allowances have been increased in accordance with the appropriate principle contained within the safety net review decision and have been set out in the allowance calculations. You will note, your Honour, that the draft order seeks an operative date to come into force from the first pay period commencing on or after 12 June 2002 and to remain in force for a period of 12 months - I suppose we can reduce that to 6 months, sir, to be consistent with other orders concerning safety nets.

PN28

You are very well aware your Honour that the wage rates in regard to this particular award have been under some focus in the recent past and there was a necessity for the rates to be reviewed that was carried out by yourself in regard to the safety net review decision on May 2000. Fortunately that exercise was completed to the satisfaction of all parties. Subsequent to that order, the company and the union have forwarded an amended draft order through to Commissioner Larkin in regard to the safety net review of May 2001 because of the nature of the May 2000 rates having to change and there to be a follow-up in regard to the May 2001 safety net review and now we are looking at the 2002 safety net.

PN29

THE SENIOR DEPUTY PRESIDENT: Has that been dealt with, Mr Beard?

PN30

MR BEARD: Unfortunately, Commissioner Larkin at this stage is still - - -

PN31

THE SENIOR DEPUTY PRESIDENT: Still on leave.

PN32

MR BEARD: - - - on leave.

PN33

THE SENIOR DEPUTY PRESIDENT: Yes, I know.

PN34

MR BEARD: She is not back until the 19th. However I would expect that once she is back, the matter would be processed very quickly because again, agreement has been reached in regard to an order for the May 2001 safety net. You would also be aware, your Honour, that - - -

PN35

THE SENIOR DEPUTY PRESIDENT: That will only be a technicality anyway, because at that stage there would have been a residual - - -

PN36

MR BEARD: That is correct. Yes, just a matter of clearing up the wages. You would also be aware that the previous safety net review increases were operative from 27 September, both from 2000 and then obviously 2001 and we are seeking an operative date being first pay period to commence on or after today's date in view of principle 8(c) contained with the safety net review decision which refers to the 12 months delay between variations being varied where there won't be an actual increase to the employees or a disadvantage to the employer by applying the latest safety net review increases.

PN37

I am well aware, your Honour, that principle 8(c) does refer to an agreed position between the parties. As I said, I had hoped I would have had written confirmation from the company in regard to the processing of this matter. Whilst I have, as I say, a verbal communication, I would like to have written confirmation on the file and I will undertake to contact the company this afternoon to follow up that processing.

PN38

THE SENIOR DEPUTY PRESIDENT: Yes.

PN39

MR BEARD: However, at this stage your Honour, I believe that you have the - do have in fact, the jurisdiction to deal with this matter and subject to the outcome of discussions with the company, I would ask that an order in the terms of the draft that was the composite exhibit, be issued in due course, if it please the Commissioner.

PN40

THE SENIOR DEPUTY PRESIDENT: This is an application to vary the Energy Developments AWU Hydrocarbons Gas and Energy Award 2001. In this matter, Mr Beard appeared on behalf of the Australian Workers' Union and there was no appearance for Energy Developments Proprietary Limited, although he has claimed from the material in composite exhibit 1 that Energy Developments Proprietary Limited was served and indeed, Mr Beard indicated during the submissions that he had in fact spoken with an officer of the company in relation to this matter and was of the opinion that, at least verbally, Energy Developments Proprietary Limited consented to the terms of the draft order. For reasons which we can apparent, shortly, however that matter needs to be confirmed because of the position in relation to the operative date.

PN41

Having heard what Mr Beard has had to say I am satisfied that the rates contained in the draft order, part of composite exhibit 1, appropriately reflect the increases available under the safety net review decision of May 2002, print PR002002 and that the adjusted, the allowance adjustments contained in the draft order are calculated in accordance with the principles set out in that decision. Accordingly, I will vary the award to reflect the terms of the draft order contained in composite exhibit 1. There is one outstanding matter however which is the operative date.

PN42

The AWU seeks an order for the first pay period to commence on or after today's date and it does so in circumstances where, because of the existence of a certified agreement, there will be no actual impact on the employees concerned and it is submitted by AWU, no detriment or cost increase to the employer. However, the principle does require the employer's consent to that position and for that reason I would be grateful Mr Beard if you would confirm that the employer does accept the operative date. There is one other alteration I would make to the draft order and that is to fix the period at 6 months rather than 12, but subject to that confirmation the award will be varied in accordance with the draft order and composite exhibit 1, as I've just amended it and the formal order together with these reasons will be published in due course. If of course, consent is not obtained I will have to register the matter at least by tele-conference or something to determine what we are to do with it.

PN43

MR BEARD: Yes, your Honour.

PN44

THE SENIOR DEPUTY PRESIDENT: The matter will be adjourned on that basis.

ADJOURNED INDEFINITELY [2.25pm]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #1 COMPOSITE FACSIMILE TRANSMISSION, COPY OF DRAFT ORDER AND ALLOWANCE SCHEDULE PN13