AG2003/9304, Transcript of Proceedings [2003] AIRCTrans 5601 (15 December 2003)

AUSCRIPT PTY LTD
ABN 76 082 664 220

Level 7, ANZ House 13 Grenfell St ADELAIDE SA 5000
Tel:[phone] Fax:[phone]

TRANSCRIPT OF PROCEEDINGS

O/N 1159

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

DEPUTY PRESIDENT HAMPTON

AG2003/9304

APPLICATION FOR CERTIFICATION
OF AGREEMENT

Application under section 170LJ of the Act
by Lloyd Helicopters Pty Limited and Another
for certification of the CHC Helicopters (Australia)
Pilots Certified Agreement 2002 - 2005

ADELAIDE

9.16 AM, TUESDAY, 2 DECEMBER 2003

PN1

MR C. RIDINGS: I appear for CHC Helicopters (Australia) and with me is MR P. CLIFFORD, Deputy Resource Manager.

PN2

MR L. COX: I appear for the Australian Federation of Air Pilots.

PN3

THE DEPUTY PRESIDENT: Yes, Mr Ridings?

PN4

MR RIDINGS: Thank you, sir. This is an application under section 170LJ for the ratification of an agreement between Lloyd Helicopters Pty Limited, which trades as CHC Helicopters (Australia), and the Australian Federation of Air Pilots. It covers all the company's pilots in diverse operations around Australia and East Timor, approximately 100 employees in total. It is the latest in a series of certified agreements between these parties and it replaces the award, the Safety Net Award, being the Helicopter Pilots General Aviation Award 1999. It replaces that award in total. Sir, the agreement has had a long negotiation period. You have probably noted that the current agreement actually expired on 1 May 2002.

PN5

THE DEPUTY PRESIDENT: Yes.

PN6

MR RIDINGS: And so there are some retrospective clauses as a result of that, including pay rises which are backdated and allowance rises backdated to 1 May 2002. The negotiation took place with the Federation and the employee pilot representatives. There was copious communication to ensure that adequate information and representation of the employees occurred. I refer the Commission to the statutory declaration of the parties. We submit that the agreement complies with all the requirements of the Act, both its content and its negotiation. Unless the Commission had questions in that area I would add nothing further to my submissions on that point.

PN7

THE DEPUTY PRESIDENT: No, look obviously I will hear from Mr Cox in due course.

PN8

MR RIDINGS: Very well. Sir, it is a comprehensive agreement and I won't go through the detail of it. There are a number of significant changes from the current agreement and there is one point, which is that the parties have signed a memorandum of understanding, a copy of which I have filed with the Commission. I have the original here today for the Commission's file.

PN9

THE DEPUTY PRESIDENT: Very well.

PN10

MR RIDINGS: The purpose of that memorandum of understanding is to clarify a point about the field leave applicable to pilots undergoing training, and just in case in the future that the current representatives are not around, it would pay to have something like that on the Commission's file as a record of the intention of the parties. I seek to table that by consent.

PN11

THE DEPUTY PRESIDENT: Very well. Mr Cox, Mr Ridings has just given me the original of that memorandum of understanding. I take it that you are happy for it to be formally admitted to the Commission's file?

PN12

MR COX: Yes, we are, Deputy President.

PN13

THE DEPUTY PRESIDENT: Thank you. Yes, well the memorandum of understanding dated 21 October 2003 will be admitted and marked as exhibit A1 and now forms part of the Commission's formal file for the reasons that Mr Riding intimated.

EXHIBIT #A1 MEMORANDUM OF UNDERSTANDING DATED 21/10/2003

PN14

MR RIDINGS: Thank you, sir. The Commission will note that there are some - in the salaries clause, the salaries are significantly higher than the award and without going into unnecessary details for the purposes of today, it is our submission that this agreement in totality passes the Safety Net when compared - sorry, passes the no disadvantage test when compared against the Safety Net Award and I would propose, unless the Commission really wants to do so, that I won't go through clause by clause the changes in the agreement or the reasons why it passes that test.

PN15

THE DEPUTY PRESIDENT: No, you can safely take it, Mr Ridings, that I have read both the agreement and considered it in the context of the Safety Net Award.

PN16

MR RIDINGS: Thank you, sir. Well, for the moment then I will leave my submissions there subject to any questions that might come up.

PN17

THE DEPUTY PRESIDENT: There are only two matters that I want to raise. Firstly, I do note the way in which the agreement deals with casual pilots, and in particular, established rights of pay and certain conditions but otherwise the balance of the agreement does not apply to casuals and secondly, I would note that the agreement surpasses the award in its entirety. In that context I would be interested to know what role the casual pilots play in relation to the organisation, what extent they are utilised and in what circumstances, so I can get an understanding of the practical implication of that approach.

PN18

MR RIDINGS: The use of casuals is really to fill short-term need. At the moment there are only two casuals to whom this award applies. One of those is filling a position in East Timor and in fact it is very likely that that employee, if he already has not been made permanent is right on the verge of it, and there is also one pilot who regularly works in the Latrobe Valley operation on a weekly basis. He does not work every week but when he does he tends to work for a week. So the total extent is two to probably a maximum of four casuals at any one time basically filling in for positions that we have not been able to fill on a permanent basis. I do not know if that answers the question you asked.

PN19

THE DEPUTY PRESIDENT: Well, it certainly gives me some context. The second issue relates to something you have just said, and that is I do note, as you set out in your opening, that the agreement also applies in East Timor. Now, I could be wrong but it is my understanding that there was at some stage some proceedings involving East Timor operations?

PN20

MR RIDINGS: Yes.

PN21

THE DEPUTY PRESIDENT: Involving Senior Deputy President Watson? Is that - - -

PN22

MR RIDINGS: Yes, that is true. There was a section 170LW arbitration, private arbitration, earlier this year and that related to the allowances payable. There is a clause in the agreement that says that overseas allowances will be agreed between the parties. Unfortunately, we could not reach an agreement and so we had one imposed upon us by private arbitration.

PN23

THE DEPUTY PRESIDENT: Right. I see.

PN24

MR RIDINGS: But that matter is resolved.

PN25

THE DEPUTY PRESIDENT: Now, do I take it the same approach is adopted in this agreement?

PN26

MR RIDINGS: Yes, sir. That is correct.

PN27

THE DEPUTY PRESIDENT: So that the outcome of that will basically apply to this agreement as well?

PN28

MR RIDINGS: Yes, sir.

PN29

THE DEPUTY PRESIDENT: Very well. Anything further, Mr Ridings?

PN30

MR RIDINGS: No, Deputy President.

PN31

THE DEPUTY PRESIDENT: Thank you. All right, Mr Cox?

PN32

MR COX: Deputy President, the Federation's position is we endorse the submission of Mr Ridings and we rely upon the statutory declaration in terms of the meeting of the requirements of the Act and we support the certification of the agreement. Unless there are questions specifically of us, we will leave our submission there.

PN33

THE DEPUTY PRESIDENT: I take it in that context you accept what has been indicated to me with respect to the two matters that I have raised?

PN34

MR COX: Yes, I do.

PN35

THE DEPUTY PRESIDENT: Very well. Gentleman, I propose to deal with the agreement now as I have had an opportunity to read the statutory declarations, the comprehensive agreement and I have considered both in the context of the Safety Net Award. I indicate that I am satisfied that all the requirements of certification of the agreement in this jurisdiction have been met. Without dealing with each of the findings required by the Act, I would confirm that I accept that a valid majority of the employees have endorsed the agreement following a process which is contemplated in the legislation.

PN36

The agreement, in my view, clearly passes the no disadvantage test and meets all other requirements for its certification. So in that context I will shortly issue a certificate certifying this agreement pursuant to the Workplace Relations Act 1996. The order will formally indicate that the agreement comes into force on and from today's date as a consequence of the Act and will have a normal life of 3 years as dated from the original date, being 2 May 2002. Now, in that context, I do note the retrospective commitments made by the parties and in light of the Commission's certification of the agreement, those retrospective obligations now take full force and effect consequent upon certification of the agreement.

PN37

A copy of that certificate and the now endorsed instrument will be supplied to both parties for your own use and records. Lastly, without knowing a great deal about the detailed negotiation process or the circumstances that led to the timely delay of, the records of the Commission do indicate a long-term constructive relationship between the parties and I trust that the agreement I have just certified will stand the organisation and the association and the employees in good stead and I wish you all the best for the future.

PN38

MR RIDINGS: Thank you, very much.

PN39

MR COX: Thank you very much, Deputy President.

PN40

THE DEPUTY PRESIDENT: Thank you. The Commission will be adjourned.

ADJOURNED INDEFINITELY [9.27am]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #A1 MEMORANDUM OF UNDERSTANDING DATED 21/10/2003 PN14