AG2004/5366, Transcript of Proceedings [2004] AIRCTrans 2791 (20 July 2004)

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TRANSCRIPT OF PROCEEDINGS

O/N 2940

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER HOFFMAN

AG2004/5366

APPLICATION FOR CERTIFICATION
OF AGREEMENT

Application under Section 170LK of the Act
by Sunquip (Australia) Pty Ltd for certification
of the Sunquip (Australia) Pty Ltd Certified
Agreement 2004

BRISBANE

11.15 AM, FRIDAY, 9 JULY 2004

PN1

THE COMMISSIONER: Yes. Could we have the appearances, thank you.

PN2

MS J. FONG: Yes. I apologise for not completing an appearance slip. My name is Jade Fong from Gilshenan and Luton, Lawyers. I have with me MR MARK BLACKBERRY, who is the Managing Director of Sunquip, and MR ROSS HAYNES, who is the only employee proposed under this agreement.

PN3

THE COMMISSIONER: Yes. Thank you. Yes, Ms Fong?

PN4

MS FONG: You should have before you, Commissioner, an application form 29, as well as statutory declarations of Mr Blackberry and Mr Haynes, and the agreement. We submit that the notice has been validly given and a valid majority has approved of the agreement and, further, that the no disadvantage test has been satisfied, and we have put before you a comparative table. We're happy to answer any questions that you have. Other than that, we request that the agreement be certified.

PN5

THE COMMISSIONER: Yes. Can I just take you to 3.3 of the agreement.

PN6

MS FONG: That's 3.3, is it, Commissioner?

PN7

THE COMMISSIONER: That's correct. You indicate in (b) there that you'll adjust by 2.5 per cent, or the amount flowing from, well, what's now called, in living wage cases, the safety net adjustment - not a National wage case any more.

PN8

MS FONG: Right.

PN9

THE COMMISSIONER: How do you equate your rate to a percentage? If the living wage case does what it's done for the last several years and awarded a flat amount, how do you equate either 2.5 per cent or that dollar amount and convert it into percentage terms to say, based on the rate for X, that that is more or less than the 2.5 per cent?

PN10

MS FONG: Just one moment, Commissioner. Commissioner, we simply wish to give a 2.5 per cent increase on $17.80. Now, we would be happy to discuss - just one moment, Commissioner - whether they're happy to accept a 2.5 per cent increase on the $17.80 hourly rate, or whether they'd like to adhere to the living wage case adjustment.

PN11

THE COMMISSIONER: Well, the agreement is now made. I need to know just how you determine what the amount flowing from the living wage case is. In other words, if you use the C10 rate, for example, or C9, or C11 rate, whatever it may be, how does that relate then to the ordinary rate for a driver, either the ordinary rate or the certified rate? So the grade 8 rate in the agreement, where does that fit in terms of the relativities in the parent awards?

PN12

MS FONG: Commissioner, I don't really feel that I have enough instructions to answer the question. I might ask Mr Blackberry if he can explain to you what he'd like to do, otherwise we can go away and consider this further. So, Mr Blackberry?

PN13

THE COMMISSIONER: Yes, Mr Blackberry?

PN14

MR BLACKBERRY: Commissioner, basically the amount of the increase, whatever is flowing on from the wage case, we'd be paying that on per hour, whether it's the 38 hours or whether they do 45 hours. So I guess that's my - - -

PN15

THE COMMISSIONER: So are you saying you'd simply take - just say there was a flat amount increase next year.

PN16

MR BLACKBERRY: Yes.

PN17

THE COMMISSIONER: Just say there might be a range of increases. It might be $18 below C10; it might be $20 above C10. What I need to know is, you know, whether you have some understanding of the relativity - - -

PN18

MR BLACKBERRY: Sure.

PN19

THE COMMISSIONER: - - - adjustment between the award or agreement rates and the relativity that would normally be established under, say, the Metal Industry Award, using it as the Full Bench normally does.

PN20

MR BLACKBERRY: Yes.

PN21

THE COMMISSIONER: I'm not saying they'll do the same thing, but if they did, I just need to be sure that there's some understanding as to where, then, or at what point your rates would be adjusted, whether it would be 2.5 or whether it would be the amount out of the living wage case.

PN22

MR BLACKBERRY: It would be 2 point - well, whatever the amount is, on that minimum award on the 38 hours, and then, obviously, if these guys did more hours than 38 hours, it would be relative to their hourly rate.

PN23

THE COMMISSIONER: Yes. I'm not worried about whether they do additional hours so much. I'm more concerned with the adjustment in the rate. I think, perhaps, you need to get some advice. In terms of the comparison for the purposes of the agreement, you use the Transport Workers Award 1988. Well, that's an outdated award.

PN24

MS FONG: Commissioner, I'll just check the agreement we have been basing those upon.

PN25

THE COMMISSIONER: Yes. Perhaps can I put it to you simply this way?

PN26

MS FONG: Oh, okay.

PN27

THE COMMISSIONER: One, you need to be sure that you're looking at the current Federal award. Two, when you look at that current Federal award you need to then look at what you describe as a grade 8 driver and determine what level that is when comparing, say, to the C10 rate in the metal industry, so you had some established relativity. You might then, as I say, say it's C9, C11, whatever it is, but you know that then. Then in terms of living wage case, if there's an adjustment that relates to that, you know exactly there what increase you have to give, whether it's $18 or $20, and then you can compare what that 18 or 20 dollars means to that rate as opposed to just awarding a 2.5 per cent increase. I just want to get clarification. As long as, you know, everyone understands what they've agreed to and what the consequences are for your future wage adjustment, then I'd be satisfied. So perhaps we might adjourn that for a short time - - -

PN28

MS FONG: Thank you, Commissioner.

PN29

THE COMMISSIONER: - - - Ms Fong, if you can just clarify that issue.

PN30

MS FONG: Certainly, we will.

PN31

THE COMMISSIONER: And then we'll deal with it next time we do - - -

PN32

MS FONG: Thank you very much, Commissioner.

PN33

THE COMMISSIONER: Yes. Thank you. Yes. That matter stands adjourned.

ADJOURNED ACCORDINGLY [11.23am]