AG2004/3618, Transcript of Proceedings [2004] AIRCTrans 2240 (17 June 2004)

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TRANSCRIPT OF PROCEEDINGS

O/N 11649

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER RAFFAELLI

AG2004/3618

APPLICATION FOR CERTIFICATION
OF AGREEMENT

Application under section 170LJ of the Act
by Qantas Airways Pty Ltd and Others for
certification of the Qantas Airways Limited
(AWU, AMWU) Enterprise Agreement 6

SYDNEY

9.40 AM, FRIDAY, 4 JUNE 2004

PN1

THE COMMISSIONER: Could I have the appearances please?

PN2

MR D. MILLS: May it please the Commission, I appear for Qantas Airways Limited, appearing with me I have MR J. MORLEY, also of Qantas Airways Limited.

PN3

MR N. THISTLEWAITE: If it please the Commission, I appear for the Australian Workers Union.

PN4

MR T. McCAULEY: If it please the Commission, I appear for the AMWU.

PN5

THE COMMISSIONER: Yes, thank you. Yes, Mr Mills?

PN6

MR MILLS: Commissioner, this is an application under section 170LJ of the Workplace Relations Act and is for the certification of the enterprise agreement titled the Qantas Airways Limited (AWU,AMWU) Enterprise Agreement 6. Before we go through the submissions in some detail, there are two typographical errors that the parties have been able to identify, Commissioner, and they both relate to the wage rate section. If I could take you to page 22 of the document, Commissioner, the adult apprentice rate should be 610.12 for the 1/1/04 and $628.42 for the 1/1/05. I take you to page 23.

PN7

THE COMMISSIONER: That's what it is on mine.

PN8

MR MILLS: That's adult apprentices? No, it couldn't be.

PN9

THE COMMISSIONER: It might not be adult apprentices.

PN10

MR MILLS: Adult apprentices is the last - - -

PN11

THE COMMISSIONER: I see, yes.

PN12

MR MILLS: The parties have an agreement that the adult apprentice would be paid at level 3A which is the highest non trade rate. Now, inadvertently in the drafting we put that at 4. At page 23, at level 5 at year 1, on 1/1/05, that's the second last box, instead of 54,086, it should read 64,086. Commissioner, we undertake to make those two changes and get a document sent to you. I'm not too sure how we should do this. We can send the additional pages because you've got the signed copy.

PN13

THE COMMISSIONER: Yes, just send us the additional pages. Yes, thank you.

PN14

MR MILLS: Further to that, Commissioner, just by way of background in relation to the documents, most importantly I think one of the main reasons why this document has taken a reasonable amount of time to deliver after we actually agreed in principle, is that, and I think this will be of some satisfaction to you, Commissioner, is that instead of the usual Qantas way of having five different agreements that we all need to refer to, this is a consolidated document. It happens in every other agreement the parties have agreed to in the past, obviously taking out clauses that are no longer relevant and consolidates all documents, so we have one binding enterprise agreement.

PN15

So to that end, Commissioner, there are a couple of other things that I need to put forward before I talk directly to this document. I have a series of letters that were provided or were party to EBA5 that were not part of the agreement, but were attachments. We'd like to hand them up for the purposes of the court file. I'll just go through those very quickly so I can give you - - -

PN16

THE COMMISSIONER: We'll call it an exhibit, won't we?

PN17

MR MILLS: You can call it an exhibit.

PN18

THE COMMISSIONER: Yes, we'll mark that exhibit QF1.

EXHIBIT #QF1 LETTERS

PN19

MR MILLS: QF1 is a series of letters and they're identical in the sense that there's about six letters to Doug Cameron, who's the National Secretary of the AMWU and exactly the same letter to Bill Shorten, the National Secretary of the AWU. So the first letter is to Mr Cameron, there's one to Mr Shorten in relation to the Brisbane heavy maintenance facility. There's another letter in relation to quota level positions. There's another letter in relation to the reimbursement of examination fees for basics. There's a further letter in relation to the letter on facilities for union delegates. There's a further letter in relation to staff concessional travel privileges. A further letter on carer's leave and long service leave and the final letter relates to paid maternity leave.

PN20

There are two other letters that are yet to be delivered to the unions which relate to the agreements around Enterprise Agreement 6, which we will send to the unions as soon as possible. Our intention is today, maybe Monday, the parties have agreed on those letters. They relate to an increase in the quota from 20 percent to 25 percent which I will also send through to the Commission and also the resolution of a long standing issue about the provision of laundry facilities for uniforms for employees in Melbourne. Those were the matters agreed upon during the negotiations. They don't sit as part of the enterprise agreement within the document, but they are letters of intent and commitment from the parties that have been agreed upon and should be, by rights, placed on the court file.

PN21

A letter will be sent to both Mr Shorten and Mr Cameron in relation to those two issues as soon as possible and also a copy through to the Commission file, Commissioner. Now, about this agreement, it's an agreement between Qantas, its employees and their representatives, the Australian Workers Union, the Australian Manufacturing Workers Union. It covers the work of people involved in the maintenance of aircraft frames, aircraft engines and aircraft component maintenance and people who participate in planning work around that as well.

PN22

It also covers Qantas Defence Services Pty Ltd for employees who are engaged at Bankstown and Villawood sites. It's a document that purports to cover roughly 1990 employees and a valid majority of employees approve the agreement in or around Wednesday 26 May 2004. To facilitate an understanding of the agreement, Commissioner, the company sent out the agreement and an explanatory memorandum covering in particular the fact that it was a consolidated document to each employee's place of residence.

PN23

There were regular briefing sessions by management in particular to discuss the fact that there was a consolidated document and things that employees might not have seen before or things that hadn't been agreed to this time around or an overhang from agreements past. The company facilitated opportunities for the union to go and have regular briefing sessions with its members across the three, I should say four, sites that were to be covered by this agreement, that is Melbourne, Sydney, Bankstown and Villawood.

PN24

Further to that, Commissioner, we say the agreement clearly meets the no disadvantage test when measured against the old Operations Qantas Airways Limited Award 1998, but the certification would not result in a reduction to the overall terms and conditions of employment. There is a dispute settlement procedure. That's contained at clause 8, it's the standard Qantas disputes procedure that's contained in a number of our agreements and there is also a duration clause.

PN25

The agreement is for two years, taking obviously effect from date of certification, but the agreement comes into effect for pay purpose on 31 December 2003 and will expire on 31 December 2005. It cancels four bargaining periods, two from the Australian Workers Union and two from the Australian Manufacturing Workers Union. You will find that they have been identified in the statutory declaration of Sue Ellen Bussell. Commissioner, we would say that all requirements of the Act have been met and that the agreement should be certified, effective from today's date, which is 4 June 2004.

PN26

Can I also say, subject to any questions you may wish to ask, Commissioner, I think it's very important that the company makes this comment: you would be well aware the last time the parties sought to negotiate an enterprise agreement that it was a lengthy process, there was significant disputation between the parties and it was an episode that we probably all don't look upon fondly. I know that I can speak very much for the company in saying that it recognises the efforts of the unions in being able to achieve a fair and equitable outcome without any disputation and in a framework that was conducive and positive and we certainly make our feelings known on that subject, may it please the Commission.

PN27

THE COMMISSIONER: Yes, Mr Thistlewaite?

PN28

MR THISTLEWAITE: Thank you, Commissioner. We support the application for the certification of this particular Qantas EBA6. In terms of the nature and purpose of the agreement I support the submissions that have been made by Mr Mills this morning, it is a two year agreement covering our members employed in engineering and maintenance at Qantas. The agreement does deliver two 3 per cent increases to wages and allowances for our members to annual increases. There are commitments by both sets of parties to the agreement, the unions and Qantas in relation to reviews of classification structures for people employed generally within engineering and maintenance at Qantas and also for those individuals employed in non trades capacities within Qantas and opportunities for improvements in skilling and education for those members who are employed in a non trades capacity.

PN29

The document is a consolidation of relevant provisions from the previous five EBAs negotiated between the unions and Qantas and in that respect it is an improvement in terms of ease of comprehension and access for our members and for Qantas and indeed the Commission in future. As Mr Mills has indicated this particular document was the subject of lengthy negotiations, copies were provided to our members prior to their meeting with officials in relation to the contents and they had ample opportunity to peruse the contents and ask questions of officials. The agreement was consented to by a valid majority of our members on 25 and 26 May at a series of mass meetings held at various Qantas sites nationally.

PN30

In terms of the Act and the Commission's principles for the certification of agreements we rely on the statutory declaration sworn by Carl Phillips, a national industrial officer with the union on 31 May 2004 and file with the Commission's Registry on 3 June. We're satisfied that the agreement meets the Commission's no disadvantage test and in all respects we commend the agreement for certification. If it pleases the Commission.

PN31

THE COMMISSIONER: Mr Thistlewaite, do you think your members, particularly those who are adult apprentices fully understand that the rate is a 3A rate rather than what's written there because this is the document they would have voted on, wouldn't they, with the error?

PN32

MR THISTLEWAITE: Yes, perhaps in terms of both the amendments that are sought to be made on the record - - -

PN33

THE COMMISSIONER: Well the other one is upwards - - -

PN34

MR THISTLEWAITE: Yes, the other one we have no issue with of course.

PN35

THE COMMISSIONER: And that's obviously an error.

PN36

MR THISTLEWAITE: Yes, in terms of the adult apprentice rate I personally do not know of the reasons behind the change to the document and when Mr Mills informed me this morning I sought instructions from Mr Carl Phillips, the national industrial officer who swore the statutory declaration. Mr Phillips has been more involved in the process in relation to the negotiation of this document and indeed the discussions relating to the variation through the adult apprentice rate. He assured me that the rate that appeared in the agreement and the one that was voted on by members was a mistake and that we do consent to the variation to that particular figure in the terms that Qantas have mentioned this morning.

PN37

THE COMMISSIONER: Yes, thank you. Mr McCauley?

PN38

MR McCAULEY: Thank you Commissioner. We support the submissions and the application of Qantas and the AWU this morning and we rely on the statutory declaration of Mr Glen Thompson dated 1 June 2004 and filed in the Commission on 3 June 2004. He's assistant national secretary of the AMWU, in deposing that the statutory requirements of the Act have been met which include, the agreement was approved by a valid majority of our members of 26 May 2004. The agreement does satisfy the no disadvantage test and it is to commence from today's date for certification purposes until 31 December 2005.

PN39

We do note this agreement is a consolidation of previous agreements, we would note that our understanding is that it is not the intention of this consolidation exercise in this agreement to reduce or remove any previous conditions existing for our members. In summary we submit the statutory requirements have been met and that the agreement should be certified under section 170LT. Similarly for the AWU I've sought instructions on the adjustment to the rates that we've heard about this morning and I can assure the Commission that they are simply typographical errors and the correct rates have been inserted into the agreement, so we can commend the agreement to the Commission.

PN40

THE COMMISSIONER: Yes thank you. This is an application to have certified an agreement that is to be known as the Qantas Airways Limited (AWU AMWU) Enterprise Agreement 6 and the parties to the agreement are Qantas Airways Pty Limited, the AWU and the AMWU for short, on the basis of the submissions and documentation the Commission is satisfied the relevant requirements of the Act and of the rules of the Commission have been complied with, consequently the agreement will be certified, it will come into force from 4 June 2004 and will remain in force until 31 December 2005. On that basis these proceedings are now adjourned.

ADJOURNED INDEFINITELY [9.57am]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #QF1 LETTERS PN19