AG2002/1438, Transcript of Proceedings [2002] AIRCTrans 870 (18 March 2002)

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TRANSCRIPT OF PROCEEDINGS


O/N VT02809

A 12.3.02

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

SENIOR DEPUTY PRESIDENT WATSON

AG2002/1438

APPLICATION FOR VARIATION OF
CERTIFIED AGREEMENT

Application under section 170MD(6) of the Act
by Ansett Australia Limited to vary the Ansett
Australia Union Collective Bargaining Agreement
1999 concerning the extension of stand down provisions

MELBOURNE

4.00 PM, MONDAY, 4 MARCH 2002

PN1

MR D. McLAUGHLIN: I seek to leave to appear for Ansett Australia Ltd, administrators appointed.

PN2

MR R. WATTS: I appear on behalf of the ACTU and the affiliated unions who are parties to the Ansett Australia Union Collective Bargaining Agreement 1999.

PN3

THE SENIOR DEPUTY PRESIDENT: Okay, there is no objection? The leave is granted. Yes, Mr McLaughlin?

PN4

MR McLAUGHLIN: Your Honour, you will recall that a related application was before you on 28 February when we applied and the Commission indeed did extend the operation of the stand-down clause to the conclusion of the last flight on 4 March 2002. That was in relation to the majority of employees covered by the enterprise agreement. There was an also an extension to 15 March for certain employees providing services to Kendell Airlines.

PN5

Your Honour, the application today sought to extend the operation of the clause to 31 March 2002. We have had discussions with the ACTU, on behalf of all unions party to the agreement, and an agreement has been reached to simply seek an extension of the clause to midnight on 12 March 2002, and also to vary the sub-clause that applies in respect of Kendell Airlines to include, "employees in Melbourne". And if I could hand up a draft order to that effect.

PN6

THE SENIOR DEPUTY PRESIDENT: Thank you. And what is the purpose of that extension, Mr McLaughlin?

PN7

MR McLAUGHLIN: In relation to the general body of employees, the purpose of the extension is to enable the parties to determine what employees are needed and in what areas following the shutting down of the airline operations, or the flights, as from the last flight tonight. There has been some work done in that area but it still needs some tidying-up. To some extent it is hoped that there won't be any need for any further extension of the stand-down, that the parties will be able to reach agreement on the number of employees required, where they might work and for how long they are going to be required to work and if they can do that on a full time basis.

PN8

But at he moment that has just been beyond the scope of the parties to finalise that at the moment and therefore the extension is to next Tuesday.

PN9

THE SENIOR DEPUTY PRESIDENT: Yes. To allow that to occur.

PN10

MR McLAUGHLIN: Yes. So there will be further discussions over the next week. I guess what we would seek, your Honour, is that variation be made in the terms sought today and that the current application be left open for, if needs be, relisting on 12 March to make, again if needs be, any final orders in relation to specific areas that might need some further time.

PN11

THE SENIOR DEPUTY PRESIDENT: Yes. Very well, thank you, Mr McLaughlin. Mr Watts?

PN12

MR WATTS: Yes, your Honour, I will just concur with the submissions made. The areas are currently being sorted out in terms of where we expect employees to be required in the future. There is a number of business units that may well still be sold to third parties, that are discrete and separate to the TESNA operations. To facilitate that, and the changes that may be required as a result of the failure of the TESNA deal, we need a few more days to sort those issues through.

PN13

It may well be that there is also a need to come to the Commission to extend all various and facilitative agreements that have been reached between the parties to enable some of these operations to continue. We will continue to explore that and inform the Commissioner as soon as we come to a view on those matters. Other than that we concur that we may need to come back to the Commission. We will try and avoid it - not that we don't enjoy coming here on a regular basis, your Honour. If the Commission pleases.

PN14

THE SENIOR DEPUTY PRESIDENT: Yes, thank you, Mr Watts. Is that all you wish to put, Mr McLaughlin - that is all you wish to put?

PN15

MR McLAUGHLIN: Yes, your Honour.

PN16

THE SENIOR DEPUTY PRESIDENT: You don't want to endorse Mr Watts' pleasure of attending here regularly?

PN17

MR McLAUGHLIN: Absolutely, I can think of nothing better.

PN18

THE SENIOR DEPUTY PRESIDENT: Very well, thank you. Yes, this a further application pursuant to section 170MD(6) of the Act to vary the Ansett Australia Union Collective Bargaining Agreement 1999 to extend the period of operation of the stand down clause in clause 26(a) of the agreement. The clause was inserted by Bolton J in September of last year at the commencement of a period of administration of Ansett Australia Limited. Some variations to the period of operation of the stand down provision have occurred from time-to-time.

PN19

But further application is sought, and is consented to by the union parties to the agreement represented by Mr Watts, to extend the operation of the stand down provisions until midnight on 12 March. The further extension of the stand down provisions is to allow a period in which the parties can engage in further discussions to determine how many and which categories of employees might be given some further employment beyond that period. I am satisfied that I should give effect to the variation which is sought jointly now by the parties, to extend the period to 12 March 2000.

PN20

In my view the variation is justified in light - in order to provide the opportunity for further discussion sought by the parties. The order will be issued in the terms of the draft order handed up by Mr McLaughlin.

EXHIBIT #A1 DRAFT ORDER BY MR McLAUGHLIN

PN21

THE SENIOR DEPUTY PRESIDENT: The order includes, in addition to the issue I have just dealt with, a variation to clause 25(a)(7) to include "location of Melbourne" in respect to the stand down provision operating in respect to provision of services to Kendell Airlines Australia Pty Ltd. The order shall come into force from 4 March 2002 and shall remain in force for a period of three months.

ADJOURNED INDEFINITELY [4.12pm]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #A1 DRAFT ORDER BY MR McLAUGHLIN PN21