C2003/1900, Transcript of Proceedings [2003] AIRCTrans 2697 (27 June 2003)

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TRANSCRIPT OF PROCEEDINGS

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

SENIOR DEPUTY PRESIDENT DUNCAN

C2003/1900

DREDGING INDUSTRY (AWU) AWARD 1998

Application under section 113 of the Act
by The Australian Workers Union to vary
the above award re casual employment

SYDNEY

2.02 PM, MONDAY, 16 JUNE 2003

Continued from 15.5.03

Adjourned sine die

PN15

THE SENIOR DEPUTY PRESIDENT: Well, Mr Beard?

PN16

MR BEARD: Yes, your Honour. Again I'm the only appearance in this particular matter. However, on this particular occasion I do have something of substance to report to you. Discussions have occurred between the parties concerning an award variation in regard to casual entitlements. You will have noticed, your Honour, on the application that the application sought to vary the award in regard to the casual loading and also in regard to matters concerning long-term casual employees being able to elect to become some form of full-time employee at some stage.

PN17

The nature of the contract dredging industry is such that the work has evolved on a contract basis and therefore, long-term casuals don't come into this particular scenario. So discussions with the employers have highlighted that fact and therefore the only variation that we seek at this stage is to vary the casual loading.

PN18

Prior to the hearing, I gave to your Honour's associate copies of correspondence from Birdon Marine Pty Limited and also Total Marine Services Pty Limited. The manager of Birdon Marine, Stephen Bruce, stated that they don't have any objection to the draft order as prepared by the union. Total Marine Services go a little bit further and state, from their general manager, Mr Menacroft that they are in agreement with the proposed changes. I understand that your Honour has received on the file correspondence from a Mr David Davies, who represents the Dredging industry Secretariat, that they agree with the position.

PN19

THE SENIOR DEPUTY PRESIDENT: Yes, that is on the file. Yes, it's a letter of 12 June 2003 and that's what it says.

PN20

MR BEARD: That you, your Honour. I also took the opportunity prior to the hearing to hand to your associate a copy of the agreed draft order of the parties. The document, your Honour, seeks to vary the award in regard, as I say, to casual loading where it appears twice in the award. Once is regard to the hourly situation regarding a casual and that it be increased from 20 to 25 per cent and the other part, part C of the award, refers to the aggregate wage situation and currently the rate there is 10 per cent and, consistent with other maritime industry provisions, we will be increasing that from 10 to 12½ per cent.

PN21

You will note on the draft order, your Honour, that we seek an operative date for the draft to come into effect form the first pay period commencing on or after 1 August this year and to remain in force for a period of six months. The prospective date, your Honour, is in fact to ensure that there are no problems during the current enterprise agreement that applies. That agreement expires on 1 August this year and obviously will be taken in the context of a new agreement. That's the reason for the prospective date.

PN22

The parties, your Honour, believe that the award variation is consistent with other decisions of this Commission with regard to the casual loading. We believe that the current situation in regard to a casual loading of 20 per cent doesn't properly represent the entitlements the casuals miss out on compared to full-time employees.

PN23

Those situations, your Honour, we believe, are highlighted in major decisions of this Commission, especially the Metal Engineering and Associated industries Award 1998, which was a Full bench decision handed down on 29 December 2000. It was recorded in print T4991 and that arbitrated decision dealt quite exclusively with the situation in regard to the increase. Since then the Pastoral Industry Award at PR930781 has had casual loading increased from 20 to 25 per cent and the AWU Construction and Maintenance Award 2002, also subject to arbitration, was increased from 20 to 25 per cent in a decision recorded at PR928815.

PN24

Obviously the parties, your Honour, believe that the agreed position carries a great deal of weight in this particular matter and, as the matter has been referred to his Honour the President to ensure that proper processing of this matter has occurred, we would ask that an order in the terms of the draft be issued in due course. If it please your Honour.

PN25

THE SENIOR DEPUTY PRESIDENT: Very well, Mr Beard. This decision deals with an application by the Australian Workers Union to vary the Dredging Industry (AWU) Award 1998 by increasing the casual rate prescribed therein from 20 to 25 per cent. This is an application to vary an award for wages above the safety net as contemplated by paragraph 10 of the Statement of Principles and, in accordance with that statement, the matter was referred to the President and the President has advised that:

PN26

In this application the Australian Workers Union seeks to increase the casual loading in the above award pursuant to principle 10 of the Statement of Principles in the May 2002 Safety Net Review.

PN27

I have considered whether the application should be dealt with by a Full Bench. I have decided it should continue to be dealt with by Senior Deputy President Duncan.

PN28

I therefore proceed to deal with the matter in accordance with that advice.

PN29

I am advised by Mr Beard, who appears for the AWU, that the respondents to the award have individually, and in some respects collectively, not opposed or consented to the variation that is sought. I am satisfied of that. The variation brings in a rate which is established by a number of Full Bench and other decisions of the Commission and I'm satisfied that the grounds are made out. The draft order has been supplied and will be marked exhibit AWU1 in these proceedings.

EXHIBIT #AWU1 DRAFT ORDER

PN30

THE SENIOR DEPUTY PRESIDENT: The order will come into force from the beginning of the first pay period commencing on or after

PN31

1 August 2003. That completes the matters this afternoon. I adjourn this matter indefinitely.

ADJOURNED INDEFINITELY [2.10pm]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #AWU1 DRAFT ORDER PN30