C2002/4765, Transcript of Proceedings [2002] AIRCTrans 4071 (14 October 2002)

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TRANSCRIPT OF PROCEEDINGS


AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER REDMOND

C2002/4765

APPLICATION FOR AN ORDER TO STOP
OR PREVENT INDUSTRIAL ACTION

Application under section 127(2) of the Act
by GlaxoSmithKline Australia for an order
to stop or prevent industrial action re
restructuring at the Boronia site

MELBOURNE

2.34 PM, MONDAY, 30 SEPTEMBER 2002

Continued from 26.9.02 in Sydney

PN12

MR B. SHARP: I appear for the CEPU Electrical Division.

PN13

MS J. STAPLES: I appear for GlaxoSmithKline and MR P. OSBORNE for GlaxoSmithKline.

PN14

THE COMMISSIONER: Well, the parties were to confer and report back to me today. Who wants to give me the report?

PN15

MR MATSON: Well, Commissioner, we are happy to lead off. There was a meeting on Friday, the 27th, involving the company and the various shop stewards and organisers for the union. It wasn't - perhaps it should have been anticipated, it wasn't terribly productive. The company indicated that it is their intention to continue using what they call Town Hall meetings to communicate the changes as they come through. They are mass meetings. They are not a venue that is a suitable forum for debate, let alone consultation, let alone involvement in decision-making.

PN16

They did indicate that there is no effect on our members yet. Precisely what that means we are not overly sure. The company indicated their intention is that any change or decision that may affect us will be presented before implementation. We take it that means to be presented to members en masse. They did indicate they would be looking for feedback and input from the unions before the implementation of changes but that doesn't really measure up to the commitments that have been made under the enterprise agreement.

PN17

There was no hard data provided or no documentation provided at the meeting and the company further indicated that they did not or they have not and they will not use the working party which is set out in the enterprise agreement as a forum for communication on the issue due to what they described as privacy and confidentiality issues. So it seems to me that there is a very live issue about what the function of clause 21 of the enterprise agreement is about and there is an even bigger issue about being able to obtain some hard information from the company as to what their intentions are.

PN18

THE COMMISSIONER: Mr Matson, is there any industrial action occurring at the moment?

PN19

MR MATSON: No, there isn't. There has been none threatened, planned or even discussed at this point, Commissioner.

PN20

THE COMMISSIONER: Thank you. Yes. Do you - who is going?

PN21

MR OSBORNE: Commissioner, I would just like to give you a quick overview of where the company is at first so that you can put things into context in reference to some of the comments that have been made. To start with we are implementing a major business process overhaul at the site that is driven by a corporate over in the UK and we get templates that are fixed or standard. Now in doing that a part of the site role is then to make the business, local business, fit the business process and the business process that we are implementing is a program called ..... under the heading of MERPS and MERPS is Manufacturing Enterprise Resource Planning Solutions.

PN22

Now in doing that we have a working party on the site. It consists of 60 full time people and they have been working on it for the last three months, will be working on it for another three months at least. There has been a smaller group of people been working on this project for two years and on top of that there are another 60-odd people on site that are engaged on a part-time basis in this committee. Now there are six members from these groups here today that are in those working parties and their role is to look at how the business operates and how do you fit the new business process to our business or vice versa.

PN23

So when they say that there has been no consultation in the bigger picture there has been a lot of consultation and they have been deeply involved. Now a part of the MERPS implementation is a thing that lends itself to what is called value streams which is end to end processing. In doing that we have to restructure our management on site and instead of having one business with silos we have got definite product streams now and the structure has to meet or match the business process.

PN24

It is true that we haven't given them structural information where other parties and other individuals have been concerned for confidentiality reasons but I would just like to go through where we got to on Friday. Where we got to on Friday is that there are lots of communication methods. There is the Town Halls which is one method, there is direct communication to individuals, there is, like today, there is structure - the release of the next layer of structures going out at 3 o'clock today and the individuals involved in that have been consulted beforehand and then - so there is lots and lots of communication methods.

PN25

There is also a question and answer system set up. On Friday we said that we were not going to outsource any of the members during this process. It has never been on the table, never been on the agenda. We said that it is likely that their reporting would change, they would not be reporting to the same people or the same one as they do now. Their jobs will change slightly because they will be interfacing a new business model and that we couldn't give them written guarantees at this stage that their jobs would not be affected.

PN26

THE COMMISSIONER: What do you mean by that?

PN27

MR OSBORNE: At this stage we don't know where - we just announced the next layer of management today. So far we have got the manager or the head of manufacturing, his direct reports and the next layer of direct reports. Those direct reports will now meet and then work out how the reporting structure fits under them with the MERPS team. So that is where we are at at the moment. So to that end we said as soon as we have a proposal that makes some sense that affects their members we would present that proposal and let them comment on it.

PN28

We didn't say at any stage that that would be at a global Town Hall or a public forum and it wouldn't be at a Town Hall or a public forum. So I am not sure where they get some of those comments from but that is what we were proposing, that as soon as we have a proposal that affects their members that makes some sense in terms of the overall business context and as we understand how this MERPS process will affect business we will advise them and let them comment prior to implementation. This - - -

PN29

THE COMMISSIONER: That is the union officials, is it?

PN30

MR OSBORNE: No, the working party team as per clause 21. The process itself does not go - we don't cut over until 1 January. So the new structure - although appointments are being made now those appointments don't come into reality until 1 January. Now obviously between now and then we have to get the structure in place and everyone trained in what their new roles and how to interface with this new business process.

PN31

THE COMMISSIONER: Thank you.

PN32

MR OSBORNE: Thank you.

PN33

THE COMMISSIONER: All right. Well, what I propose to do then - are you claiming there is now still industrial action or are you satisfied - - -

PN34

MR OSBORNE: No, there is - Commissioner, I am satisfied that right at the moment there is no industrial action.

PN35

THE COMMISSIONER: All right. Well, look, what I want to do now is adjourn these proceedings and talk to the parties privately but given that there is no industrial action it would be difficult for me to issue 127 orders and I will make that comment on the transcript in case we don't go back on. The Commission stands adjourned.

NO FURTHER PROCEEDINGS RECORDED