AG2003/2431, Transcript of Proceedings [2003] AIRCTrans 1502 (23 April 2003)

AUSCRIPT PTY LTD
ABN 76 082 664 220

Level 4, 179 Queen St MELBOURNE Vic 3000
(GPO Box 1114 MELBOURNE Vic 3001)
DX 305 Melbourne Tel:[phone] Fax:[phone]

TRANSCRIPT OF PROCEEDINGS


O/N VT2256

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER FOGGO

AG2003/2431

SUSPENSION COMPONENTS AUSTRALIA
PTY LIMITED ENTERPRISE BARGAINING
AGREEMENT 2002

Application under section 170LS of the Act
by Automotive, Food, Metals, Engineering,
Printing and Kindred Industries Union -
Vehicle Division and Another for certification
of above agreement

MELBOURNE

10.02 AM, MONDAY, 7 APRIL 2003

PN1

MR W. BUTLER: I appear for the AMWU Vehicle Division.

PN2

MR I. BAJER: I appear as shop steward, Suspension Components.

PN3

MR G. JOHN: I seek leave to appear on behalf of Suspension Components Pty Limited. With me is MR P. KRAKOUER.

PN4

THE COMMISSIONER: Yes, leave is granted. Who is going to do this? Mr Butler.

PN5

MR BUTLER: Commissioner, this matter is a 170LS application for the certification of Suspension Components Australia Pty Limited Enterprise Agreement 2002. This agreement was filed within 21 days of the agreement being approved. The parties have lodged supporting statutory declarations consistent with the requirements of the Workplace Relations Act 1996 in respect to division 2 of part VIB of the Act.

PN6

The company's stat decs are per Phil Krakouer and the union from Gail Tierney. The union submits that this application meets the requirements as specified in section 170LT of the Act. Specifically the union submits that consistent with section 170LT(5) of the Act, that genuine approval of the agreement was made by a valid majority of the persons employed at the time. Formal endorsement of the agreement was given on 21 March 2003 and this is specified in point 5.2 of the statutory declarations.

PN7

In relation to section 170LT(7) we submit that the explanation of the terms of the agreement took place in appropriate ways having regard to the person's particular circumstances and needs. In respect to section 170LT(8), the agreement does include procedures preventing and settling disputes about matters arising under the agreement. Such procedures are detailed in clause 38.

PN8

In regards to section 170LT(10), the agreement at clause 8 specifies 30 November 2000 as the nominal expiry date of the agreement. The agreement satisfies the requirements specified in 170LT of the no disadvantage test by ensuring that no employee will be disadvantaged as a result of the agreement. Commissioner, you will recall that the path to reaching the point of certification was not always a smooth one and that the parties did require the assistance of the Commission on occasions and we thank you for that.

PN9

The agreement reached between the parties represents a consolidation of previous agreements and existing arrangements between the company and the union and as a consequence, this agreement supersedes and prevails over any other agreement that might otherwise bind the company, but we specify that it does not affect any right, obligation or liability accrued or incurred under such previous agreement.

PN10

With the new agreement, the union draws the Commission's attention to the following matters. Part 5, redundancy and security of entitlements, page 18. We believe that that provides that in the unlikely event of compulsory redundancy, there will be three months' notice and the company will negotiate improvements on their current agreement. Part 5 also provides that in order to bring certainty to employees, that sufficient assets exist to cover all employee entitlements in the event of the company closing, that the company will open its books and make a schedule of arrangements which will guarantee employee entitlements in the future and that this process will occur no later than one month after the certification of the agreement.

PN11

In attachment 1, schedule of wage rates, in the classification structure at section 2, organisational structure, page 28, there are alternative options for employees receiving the team leader or group leader allowance if the review of the work organisation results in a reduction in the number of team leaders or department leaders. This will be dealt with by discussion. Attachment 3, training and development on page 52, we believe that that reinforces the vehicle industry certificate or as from 1 January 2003, certificate 2 automotive manufacturing and shall be used as the vocational base for skills, training and development and career progression. That is a re-jig of the memorandum of understanding we had previously.

PN12

THE COMMISSIONER: Yes.

PN13

MR BUTLER: In conclusion, the union submits that the application meets the necessary requirements in section 170LT of the Act for the certification of the agreement and we request that the agreement be certified by the Commission effective from today's date. Thank you.

PN14

THE COMMISSIONER: Thank you, Mr Butler. Mr John.

PN15

MR JOHN: If the Commission please. Commissioner, Mr Butler has outlined quite properly all of the certification arrangements required by the Act which this agreement in our view also meets and meets comprehensively. There are some issues in relation to the agreement that we specifically would like to draw attention to, but by and large the issues that have been covered by Mr Butler are also included on our list, although there are some more in addition.

PN16

It is important from our point of view that today's agreement represents a comprehensive agreement that settles claims served by the union on the company on 24 September 2002 and as Mr Butler has said, consolidates all previous agreements between the company and the union. The agreement covers the terms and conditions of employment of employees engaged by the company who fall within the coverage of the Vehicle Industry Award 2000.

PN17

The agreement is to be read and interpreted wholly in conjunction with the Vehicle Industry Award 2000, except for clause 4.1.5 of that award which is to have no application. Clause 4.1.5 of the Vehicle Industry Award refers to juniors. Clause 6 of this agreement makes clear that the agreement supersedes and prevails over all other previous agreements, again as Mr Butler has indicated, with the exception of all rights accrued under those previous agreements they continue.

PN18

The agreement is a consolidation of agreements between the company and the union that extend as far back as 1993. The process of negotiation between the parties has resulted in an agreement which not only consolidates, but also resolves a variety of differences that now allows a comprehensive and contemporary agreement to emerge. The aims of the agreement as set out in clause 10 of the agreement have been restated and added to.

PN19

A no extra claims provision that recognises the comprehensive nature of the agreement has been stated at clause 11 and importantly, at clause 11A, the leave is reserved to the union to advance claims for a closure and/or relocation compensation package should the company decide to relocate or close its North Melbourne plant prior to the nominal expiry date of the agreement, that is 30 November 2004.

PN20

Wage increases mandated by the agreement are firstly a four per cent increase operative from 1 December 2002 and a second increase of four per cent operative from 1 December 2003. Wage matters are covered in part 2, wages and benefits, clause 16 and attachment 1, schedule of wages gives the details of the wage rates. In addition to the primary wage increases, the agreement provides potential for additional increases to occur under certain conditions.

PN21

Clause 16.2, headed incentive payment, occupational health and safety, provides for the parties to develop an action plan to address occupational health and safety standards in the workplace and by so doing to reduce the injury rate at the plant. Successful achievement of the benchmarks identified in the action plan in a manner that results in a revenue positive saving for the company would trigger a bonus payment to employees.

PN22

Clause 16.3, headed productivity bonus, provides for the parties to establish a productivity plan identifying benchmarks, the achievement of which would have a positive impact on the volume of production. Attainment of increased volumes will result in a bonus to be agreed upon to employees. Clause 18, superannuation, contemplates the parties undertaking a review of the performance of the funds providing superannuation to employees.

PN23

Rostered day off arrangements are set down in clause 22 of the agreement. Future flexibilities in RDOs are subject to consultation with employees and the union and the general flexibilities available under the Vehicle Industry Award 2000. Flexibilities relating to the working of overtime at Christmas and Easter are set out in clause 23 and clause 24 details arrangements for flexible starting times.

PN24

Clause 26 recognises the company may choose to use labour hire contractors. The framework for such engagements is detailed in the clause. The maximum number of contractors that may be engaged at any one time is set at 10. Additional labour may be engaged for specific tasks subject to consultation with shop stewards.

PN25

Occupational health and safety matters are covered by part 4 of the agreement, clauses 27 to 33. Detailed procedures to cover working in hot weather are elaborated in clause 29 and redundancy terms and conditions are set down in attachment 2 to the agreement. The agreement recognises employee and community concerns associated with the loss of employee entitlements in circumstances of company collapse.

PN26

The company has agreed to allay employee concerns by providing the union with evidence that sufficient assets exist to cover all employee entitlements. Consultation and dispute resolution procedures are detailed in part 6, clauses 36 to 38. The dispute resolution procedure set down in clause 38 is to apply to the resolution of all differences between the parties on matters that are dealt with in the agreement, including individual grievances.

PN27

Part 8 of the agreement deals with anti-discrimination, diversity and equal employment opportunity and harassment in the workplace. Clause 45, harassment in the workplace, puts in place a policy for addressing harassment and workplace bullying. Clause 46 establishes a specific grievance procedure for dealing with the incidence of harassment and/or workplace bullying.

PN28

In attachment 1, the rationale behind the classification structure mandated by the agreement is set down in clause 1A. Comprehensive job descriptions are elaborated in clause 3 of the attachment. Present organisation structure is detailed in clause 2. This clause provides for the parties to review the structure in the light of alterations in the manufacturing requirements of customers of the company.

PN29

Options for dealing with any reduction in the number of team leaders and/or department leaders are detailed in the clause. Finally, attachment 3 details the agreed approach to training and development to be taken by the parties. These provide for a skills audit to be undertaken by no later than 30 November 2003 and if following the completion of the skills audit there exists any dispute as to the level of skill and payment applicable to an employee, the matter will in the first instance be dealt with via discussion between the company and the consultative committee operating in conjunction with the union's servicing organiser.

PN30

Finally, Commissioner, as Mr Butler has indicated, let me thank the Commission for the assistance given to the company in the course of the negotiations which have led to this agreement. They were robust, but they have produced a final analysis and agreement that I think suits both parties.

PN31

THE COMMISSIONER: Yes, I agree with you in relation to your last point and I hope that from here the parties can get together and have unlimited success in the implementation of the agreement. I note the submissions by Mr Butler for the union. He has gone through all the required elements in relation to section 170LT and similarly the submissions of Mr John has done the same. Lodged with the application were statutory declarations by Mr Krakouer for the company and Ms Tierney for the AMWU. I am satisfied on the basis of the submissions and the statutory declarations that the provisions of the Act have been satisfied and the rules of the Commission complied with.

PN32

In accordance with section 170LT of the Workplace Relations Act, the Commission certifies the Suspension Components Australia Pty Limited Enterprise Bargaining Agreement 2002. The agreement shall come into force from today's date, 7 April 2003 and consistent with the terms of the agreement reached between the parties shall remain in force until 30 November 2004. The certification of this agreement brings to an end a bargaining period in BP02/6018. There being nothing else, these proceedings are now adjourned.

ADJOURNED INDEFINITELY [10.16am]