AG2003/535, Transcript of Proceedings [2003] AIRCTrans 1092 (26 March 2003)

AUSCRIPT PTY LTD
ABN 76 082 664 220

Level 7, ANZ House 13 Grenfell St ADELAIDE SA 5000
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TRANSCRIPT OF PROCEEDINGS

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER DANGERFIELD

AG2003/535

APPLICATION FOR CERTIFICATION
OF AGREEMENT

Application under section 170LJ of the Act
by The Australian Workers' Union - Greater
South Australian Branch and Another for certification
of the Eurest (Australia) Support Services
Pty Limited and AWU - Cooper Basin Enterprise
Bargaining Agreement 2002

ADELAIDE

10.08 AM, WEDNESDAY, 12 MARCH 2003

PN1

THE COMMISSIONER: Appearances, thanks.

PN2

MR P. LAMPS: I appear on behalf of the Australian Workers' Union. With me this morning, sir, is AWU site delegate MR D. DANIELO.

PN3

THE COMMISSIONER: Thanks, Mr Lamps, Mr Danielo. Mr Robson, is it, for the company?

PN4

MR M. ROBSON: Yes, from Eurest. I am representing the company for this enterprise bargaining period.

PN5

THE COMMISSIONER: You are the area manager?

PN6

MR ROBSON: I am the area manager member.

PN7

THE COMMISSIONER: Yes. Yes, thanks. Mr Lamps?

PN8

MR LAMPS: Thank you, Commissioner. Sir, application is made this morning pursuant to division 2 of Part VIB, section 170LJ of the Workplace Relations Act 1996 for the certification of an agreement to be known as the Eurest (Australia) Support Services Proprietary Limited AWU Cooper Basin Enterprise Agreement 2002. Sir, the agreement is read in conjunction with the parent award. That being the Santos Limited Cooper Basin Operations Hydrocarbons Award 1998 contained in clause 3 of the proposed agreement.

PN9

The agreement also has a period of operation in clause 4. That being the agreement to operate on and from the first full pay period commencing after 6 December 2002 for a period of three years. The proposed agreement also provides, sir, for wages increases contained within clause 21 of the agreement during the life of the agreement and also for increases to allowances that pertain to the field.

PN10

Sir, in percentage quantum this equates to a 5 per cent increase in year 1, 3 per cent in year 2 and a further 5 per cent in year 3 for the life of the document. The agreement in itself, sir, is the continuation of previous agreements struck between the parties. That being some five over the last 10 or so years. However, the proposed agreement before you this morning does contain some key new features which I would just like to point out to the Commission this morning.

PN11

In clause 5B the parties have committed during the life of this agreement to review the current classification structure contained in the parent award as a starting point to look at how we may further enhance career path opportunities for workers in the field and also to look at how relevant the current structure is hopefully to reach an agreement going forward during the life of the agreement.

PN12

In clause 5C, sir, you will note that the parties have agreed to the formulation of a consultative committee. Whilst perhaps not a new or radical issue in itself clearly, sir, the parties believe that especially in this remote location it will further assist in the communication process from a two way street not just in the Moomba area but also as the Commission may be aware of some of the satellites which are some distance away where this agreement will operate where there are Eurest employees as well.

PN13

The remainder of the document, sir, reflects ongoing practices agreed between the parties of a number of years - over a number of years and continues to build on those ongoing practices. Sir, I turn briefly to the process with the making of this agreement or the - what brought us here this morning. Negotiations between the parties commenced in September where there were meetings held in the field to explain to all employees the process of renewing a new enterprise agreement and also identifying issues.

PN14

Obviously, sir, given the nature of the rosters this was held over a two week period in order to cover all shifts and to try and catch all employees that are proposed to be bound by the document. The parties met to identify issues and a draft document was developed. During those meetings, sir, minutes of meetings were circulated in the field and represented as both company and union representatives also fed back verbally one on one on the progress of negotiations to workers in the field.

PN15

In the first week of December a draft document was circulated into the field and video conferences facilitated by the company were established to give an opportunity for all employees to, one, have the proposed document explained to them as provided - as required for under the Act, to also ensure that there would be an understanding by all those that were proposed to be bound and for those people to have an opportunity to ask any questions and also seek any clarification on any matters contained within the agreement.

PN16

These video conferences took place on 6 December and also 13 December and follow up site reps were on hand in the field to give one on ones. Also the company took the opportunity where required and where asked for by employees whenever required with respect to any and all issues arising out of the document. A secret ballot, sir, was conducted with the final ballot taking place on Christmas Eve of last year. Once again, obviously, because of the roster patterns.

PN17

That secret ballot was conducted and scrutineered by company union and employee representatives and the valid majority at the conclusion of that secret ballot did so endorse the proposed agreement before you this morning to the tune of some 70 per cent of the total work-force, sir. Sir, I take this opportunity now to move to the lodgement of the document. Obviously, the Commission would be well aware that the document has been lodged four weeks outside of time as prescribed for under the Act. We would respectfully seek that the Commission pursuant to section 111(1)(r) of the Act exercise its powers with respect to the varying of a prescribed time.

PN18

Sir, the parties following Christmas Eve were faced with some difficulties that saw this lodgement being some four weeks out of time and I will just briefly touch on them, sir. Whilst we note the Commission probably in itself has a view regarding that Christmas/New Year period when labour and people are away on leave was a - one of the contributing factors, we also had a situation, sir, where normally the state manager of Eurest (Australia), Mr Debroski, was called away overseas to - for work related issues and Mr Robson was, if you like, hurriedly appointed as an authorised signatory of the company.

PN19

As you may be aware, sir, Mr Robson who also works those two on and two off rosters but also had to go into other remote areas during what would have been his off time because of Mr Debroski's sudden departure for a period of time. So getting all the signatures together in an expeditious fashion was proving to be a bit difficult. However, we did get there at the end of the day, sir.

PN20

I can confirm, sir, that in the Commission exercising its powers we can confirm that there has been no change to the size, shape or composition to the work-force. Both parties, sir, and no doubt Mr Robson will make it clear in his submissions, have and do recommend the agreement before the Commission. Many of the outcomes have in good faith between the parties been started and are being exercised. We believe, sir, that if the Commission were not to exercise its powers that perhaps it may well prejudice the parties with respect to the making of this agreement before you this morning.

PN21

Sir, in closing pending any further questions that you may have of me I can indicate that the negotiations have been conducted in a harmonious and productive environment which we believe is reflected in the quality of the document. We believe that the document is one of substance and at this point in closing, sir, pending any questions as I say you may have, I would like to take the opportunity to also thank site delegates, Mr Danielo, who is here with me this morning, and Mr Naismith who is currently in the field who obviously undertook following up back in the field with some degree of vigour to ensure that everybody had a very clear and concise understanding of the proposed document that is before you today. Sir, we therefore respectfully seek that the Commission certify the proposed agreement from today's date. If the Commission pleases.

PN22

THE COMMISSIONER: Just one interesting little question I have got, Mr Lamps, in regard to clause 11 of the agreement it is just a question as to how - well, I will talk - have you got the agreement there?

PN23

MR LAMPS: Yes, sir.

PN24

THE COMMISSIONER: Clause 11E, we are talking there about time off in lieu of overtime and when an employer resigns or is terminated or where agreement is reached to cash out any accumulated hours that have not been taken the employee will be paid at the appropriate hourly rate. Now, what do you regard as the appropriate hourly rate?

PN25

MR LAMPS: Well, sir, that would be consistent with what the award provides for with respect to the working of overtime - - -

PN26

THE COMMISSIONER: Overtime, yes. Well, that is what I would regard as well. It is - it might seem almost a silly point to raise. When I was reading that through it could be taken that appropriate hourly rate actually meant the, you know, hour for hour. I don't think so but when I was reading that through I thought: well, I am sure that is not what was intended and that it was - you know, if you can't take your time off in lieu and you have to cash it out then it has got to be at the ordinary overtime rate.

PN27

MR LAMPS: Can I confirm with you, sir, very clearly that where an employee actually physically takes the time off in lieu it is at the hour for hour rate as you have alluded to, sir, but obviously where there is termination and there is some residual balance there then - - -

PN28

THE COMMISSIONER: It is just ordinary overtime.

PN29

MR LAMPS: That is part of the appropriate ordinary overtime rate.

PN30

THE COMMISSIONER: Yes. No, I thought that was the case but I just thought when it said appropriate hourly rate and because it had just been talking about hour for hour and so on I just thought I would raise it. No, I am satisfied with that. Mr Robson, anything you want to say about the agreement?

PN31

MR ROBSON: Sir, the company is in full agreement with Mr Lamps' submission. We feel it is a document of quality and substance for the company and we are quite happy to go along with it.

PN32

THE COMMISSIONER: Yes, thanks. Well, I can indicate first of all that in regard to the issue of the extension of time having regard to your submissions, Mr Lamps, I have no difficulty in exercising my powers under section 111(1)(r) of the Act to grant an extension of time in this matter. Having regard particularly to the fact that the agreement was reached formally on 24 December and the circumstances that then applied particular with - from management's point of view.

PN33

I also have regard to the fact that there has been change in the composition of the work-force between the agreement being achieved on 24 December and the agreement being lodged on 13 February. So in all the circumstances I think the Commission is quite pleased, happy enough to extend the period of time. I can indicate for the record that I have perused the statutory declarations on file of Michael Robson, area manager of Eurest (Australia) Support Services Proprietary Limited, the employer in this matter and Peter Lamps, branch organiser of the AWU for the employees.

PN34

I have considered the substance of the agreement and I have measured the agreement against the terms of the Santos Limited Cooper Basin Hydrocarbons Award 1998 which I note is the relevant award for the purposes of the no disadvantage test. I am satisfied that the agreement passes that test in the terms of the Act. I note that the agreement at clause 18 includes procedures for preventing and settling disputes between the parties as required by the Act.

PN35

Further, I can say that a perusal of the statutory declarations and the agreement itself is sufficient to satisfy the Commission that all the necessary statutory requirements for certification of this agreement have been met. Accordingly, the Commission will certify Eurest (Australia) Support Services Proprietary Limited and AWU Cooper Basin Enterprise Bargaining Agreement 2002. Wednesday, 12 March 2003 will be the formal date of certification of the agreement.

PN36

For the record I note from clause 4 of the agreement that it is actually expressed to be operative from and will, in fact, operate from the first full pay period commencing on or after 6 December 2002 and it is to remain in force for a period of three years from that date which is in line with the provisions of the Act. The necessary documentation confirming certification will be issued to the parties from my office over the next few days. I congratulate the parties on their agreement. It is, in fact, as you indicated Mr Lamps quite a substantial document and congratulate the parties on that and I think unless there is anything further that disposes of the hearing of the matter.

ADJOURNED INDEFINITELY [10.20am]