C2004/5634, Transcript of Proceedings [2004] AIRCTrans 3741 (22 September 2004)

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TRANSCRIPT OF PROCEEDINGS

O/N 13663

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

SENIOR DEPUTY PRESIDENT MARSH

C2004/5634

METAL TRADES (AUSTRALIAN CAPITAL TERRITORY)
AWARD 2000

Application under section 113 of the Act
by the Automotive, Food, Metals, Engineering,
Printing and Kindred Industries Union to vary
an Award - safety net review - wages May 2004
and supported wage system

SYDNEY

10.00 AM, MONDAY, 13 SEPTEMBER 2004

THIS MATTER WAS CONDUCTED BY WAY OF VIDEO CONFERENCE

PN1

THE SENIOR DEPUTY PRESIDENT: Good morning. I will take appearances, please.

PN2

MR T. McCAULEY: Thank you, your Honour, I appear for the AMWU.

PN3

MR S. LOEAR: Thank you, your Honour. I am a solicitor and I seek leave to appear for Australian Business Industrial.

PN4

MS N. STREET: Your Honour, I appear for the Australian Industry Group.

PN5

MR F. GILLINGHAM: I appear for the Master Builders Construction and Housing Association of ACT.

PN6

MR C. SMITH: I appear for the Confederation of ACT Industry.

PN7

THE SENIOR DEPUTY PRESIDENT: Thank you. Who has the carriage of this? Mr McCauley?

PN8

MR McCAULEY: Thank you, your Honour. Yes, the AWU seeks to vary the Metal Trades ACT Award 2000 to give effect to the decision of the Full Bench in the safety net review decision, wages May 2004 - of 5 May 2004. In addition we seek to vary the award to include a revised supported wage further to the decision of the Full Bench of this Commission on 22 July 2004 in TR949915.

PN9

Your Honour, the AMWU's application to vary the award, together with a notice of listing for this hearing, was sent by registered post to the respondents to the award on 3 September 2004. Proof of service by way of receipts of registered post were forwarded to the Commission on 6 September 2004 and should be on the Commission file.

PN10

THE SENIOR DEPUTY PRESIDENT: Yes, they are.

PN11

MR McCAULEY: Thank you, your Honour. A draft order pursuant to this application should also be on the Commission file, your Honour. I should note that draft order was slightly amended from the original application, after some correspondence between myself and your chambers. The respondents to the award were also served with that revised draft order along with the application.

PN12

Subsequently, however, there are two minor changes, after discussions with some of the parties, to that final draft or to that amended draft order. At point 5 of the draft order there are two rounding changes to be made, at the fourth row down for 18 years of age, it reads 301.6 when it should be $301.60. Also in the last row for 20 years of age it should have been rounded down to $431.30 instead of $431.35, for consistencies sake.

PN13

THE SENIOR DEPUTY PRESIDENT: Yes.

PN14

MR McCAULEY: In terms of the substance of the application the AMWU has adjusted the wage rates in the award by $19 a week for each of the classifications in the tables at clauses 22.1.3A and 22.1.3B, further to the Commission's decision. The relevant proportional increases have been made to the apprentice rates at clause 23.1 and the unapprenticed junior rate at clause 24.1.

PN15

At point 7 of the draft order the appropriate adjustment has been made to the supported wage at clauses 25.3.2 and 25.9.3. Allowances at points 8 to 40 have on the whole been increased along the lines of work-related allowances according to the furnishing and class industries allowances decision for an MO675 and principle 5 of the statement of principles.

PN16

The exceptions to this are at points 33, 35 and 40 of the draft order in relation to clauses 26.5.2, 26.5.3C and 33.10 respectively. These clauses relate to meal allowances and have thus been increased by 3.4 per cent to reflect the relevant meals out and take-away foods ABS figures at the relevant CPI for the year since the last adjustment to June quarter 2004. I should also note that the rate of clause 26.5.4 has not been increased since 2001. Therefore, the relevant workplace allowance has been applied for the three years 2002, 2003 and 2004.

PN17

Your Honour, in seeking these variations to the award the AMWU gives the undertakings which are required by the statement of principles with respect to absorption and, your Honour, we seek an operative date for this variation for the first pay period to commence on or after today's date being 12 months and four days since the last safety net increase. If it pleases the Commission those are our submissions.

PN18

THE SENIOR DEPUTY PRESIDENT: I should indicate for the record that I have received correspondence from the AWU apologising for not appearing at today's proceedings but consenting to the draft order and giving a commitment to absorption of the increases under principle 8D of the statement of principles of the 2004 safety net review Full Bench decision. Yes, who is first of the employers?

PN19

MR LOEAR: Thank you, your Honour. ABI consents to the award being varied in terms of the draft order as amended on the record today.

PN20

THE SENIOR DEPUTY PRESIDENT: Thank you, Mr Loear. Ms Street?

PN21

MS STREET: Yes, your Honour, AIG has reviewed the union draft order. We have no objections to the variation being made in the terms sought.

PN22

HIS HONOUR: Thank you. Yes, Mr Gillingham?

PN23

MR GILLINGHAM: Your Honour, we do not oppose this award being varied by increasing the wage rates and work rated allowances in accordance with the safety net review May 2004 decision in print PR002004. However, we only received the draft order by way of the service mail - of the registered post mail - on the Friday of last week. We have got copies of that here, your Honour. Accordingly, we have not had time to check the order and we would require at least five days in order to check to ensure that the figures are correct.

PN24

We are also concerned that - and that is in relation to the wage rates and work-related allowances. As my friend from the union has said, it is an application also to increase reimbursable allowances and that of course is in accordance with the wage-fixing principles. We were not supplied with any index of formula for that adjustment particularly in relation to the allowances which we consider expense-related allowances. Including the matters that my friend has raised in relation to item 34, travel allowance; 35, meal allowance; 36, the travel allowance.

PN25

Where we are concerned about some of these allowances is, for example, in the one I just mentioned, 36, which is a travel allowance which is a standard provision in the Australian Capital Territory - and for historical reasons common to a number of awards - this adjustment that is contained in it, currently 14.59 and which will rise to 15.10. In all other ACT awards that allowance is at $13.80. So we need to check some of these allowances against whatever the union's consumer price index figures are. Also that would go to items 37, 38 - they are travelling allowances and camping. Also in relation to the item of meal allowances.

PN26

We do not object to the date of operation which is contained in the second draft which we received dated 13 September. But in order that we can check the figures we would ask for five days please, your Honour.

PN27

THE SENIOR DEPUTY PRESIDENT: Yes. Thank your, Mr Gillingham. Mr Smith?

PN28

MR SMITH: Your Honour, I am over - I think my head mikes cut off from video conference.

PN29

THE SENIOR DEPUTY PRESIDENT: I am sorry, I just didn't hear that.

PN30

MR SMITH: I think the microphone just needs adjustment.

PN31

THE SENIOR DEPUTY PRESIDENT: Yes, if you could just move over. It is a little triangle, yes. Not the microphone - that's it. That is better, thank you.

PN32

MR SMITH: My apologies, your Honour. Can you hear me now?

PN33

THE SENIOR DEPUTY PRESIDENT: Yes, thank you.

PN34

MR SMITH: I just was suggesting that I may remain seated for the purposes of the video conference.

PN35

THE SENIOR DEPUTY PRESIDENT: Yes, certainly.

PN36

MR SMITH: The Confederation received a copy of the union's application on 7 September 2004 in relation to increases to taking into account the safety net decision and supported wage. We acknowledge the union's undertaking as to absorption and acknowledge the commencement date of 13 September. However, we would also seek a further five days for checking in relation to calculation of the expense-related allowances as Mr Gillingham has suggested.

PN37

THE SENIOR DEPUTY PRESIDENT: Yes, thank you. Mr McCauley, are you prepared to make those ABS indexes going to the relevant allowances available to the employers?

PN38

MR McCAULEY: Certainly, your Honour, provided the date of operation remains today's date we are quite happy to have discussions with both these parties.

PN39

THE SENIOR DEPUTY PRESIDENT: All right, thank you. ..... satisfy the employers in Canberra, so subject to Mr McAuley providing the relevant data going to the ABS Index in respect of the relevant CPI increases going to allowances and giving the employers until - I'll give you until 20 September to be satisfied as to the appropriate rates in the amended draft order. I'm satisfied on that proviso as to service. I'm also satisfied that the amended draft order which is served and amended in today's proceeding is consistent with the proper application of the May 2004 Full Bench statement of principles in particular, principles 5 and 8 including the commitment given with respect to absorption by the AMWU and the AWU in writing.

PN40

The terms of the order is also consistent with the Full Bench decision of 22 July 2004 with regard to the level of the supported wage to be inserted into awards. The award will be varied in the terms set out in the amended draft order. The order giving effect to this variation will come into force from the first pay period to commence on or after 13 September 2004 and shall remain in force for a period of six months. If there's any difficulties arising out of the perusal of the index and checking of other rates, the matter can be re-listed. Otherwise the order giving effect to this decision will issue after 20 September.

PN41

Thank you for your attendance. The Commission stands adjourned.

ADJOURNED INDEFINITELY [10.12am]