AG2004/1593, Transcript of Proceedings [2004] AIRCTrans 708 (24 February 2004)

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TRANSCRIPT OF PROCEEDINGS

O/N 9291

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER RAFFAELLI

AG2004/1593

APPLICATION FOR CERTIFICATION
OF AGREEMENT

Application under section 170LJ of the Act
by Intercontinental Ship Management Pty
Limited and Another for certification of
Intercontinental Ship Management Pty Ltd
(Iron Chieftain) Maritime Union of Australia
Agreement 2003

SYDNEY

10.50 AM, WEDNESDAY, 11 FEBRUARY 2004

PN1

MR W. McNALLY: I appear for the Maritime Union of Australia.

PN2

MR R. MANUEL: I seek leave to appear for Intercontinental Ship Management Proprietary Limited.

PN3

THE COMMISSIONER: Thank you. Yes, Mr McNally?

PN4

MR McNALLY: If the Commission pleases, this is an agreement that is reached between the union and Intercontinental Ship Management Proprietary Limited under section 170LJ of the Act in respect of part of the business of Intercontinental Ship Management Proprietary Limited and that part being the operation of the motor vessel, Iron Chieftain, by the employees as defined in clause 5 of the certified agreement.

PN5

Those employees are integrated ratings and people who will become integrated ratings and cooks. Of course being the part of the business being conducted on a ship it is a distinct geographical area. The number of employees involved is 17 and the valid majority approved the agreement on 9 January 2004 by a vote in Singapore where the ship was then located. The expiry date of the award is 3 years from the date of the certification which hopefully is today. ISM of course is a constitutional corporation and the union has at least one, in fact all members on the ship are members of the union and eligible to be so.

PN6

The grievance procedure is in clause 11 and there are no relevant matters to which section 170LU applies that haven't been complied with. In relation to the no disadvantage test the agreement - arguably there was a certified agreement continuing in operation with BHP - this is a former BHP ship that was sold to Intercontinental Ship Management. The relevant award, of course, is the Maritime Industry Seagoing Award and a long service leave award. They are set out in Mr Newland's declaration.

PN7

In relation to the no disadvantage test the rates of pay that are set out in clause 15 and the appendix 2 are in excess of MISA. If I could go to the annexure 2, the salaries range from 60,000 for a rating up to 63,500 for a chief integrated rating. The rates of pay include long service leave which was previously provided for by an award and the rates of pay include redundancy which previously was provided for by the award and the rates of pay include all allowances that are prescribed by MISA.

PN8

There is to be a 4 per cent increase in wages annually and the overall effect of the agreement provides for conditions which on balance are better than MISA. If I could draw the Commission's attention to a couple of matters. The leave factor is in clause 25 and is consistent with MISA, point 926. If I could go to the appendix 2 again, in recognition of some observations that you made in the CSL case, sir, you will be interested to note and it may be relevant to note that overtime is provided for.

PN9

I won't go through the salary and overtime schedule but it does provide for 8 hours per day, 7 days a week and a guaranteed overtime of 20 hours per fortnight in addition which must be provided and must be worked unless an agreement is reached with the master of vessel. If the 56 hours per week is not performed then the overtime ingredient in that 56 hours per week is not paid for. The overtime work that is to be performed is defined in the schedule and an overtime rate is fixed at $30 per hour and the annual guaranteed overtime is provided for.

PN10

The lengths of swing are provided for in clause 26 and have been increased to 8 weeks per year - sorry, swing every 8 weeks, whereas previously it was 6, I think. Extensive negotiations took place to arrive at this agreement between Mr Ives and Mr Rick ..... on behalf of the Maritime Union and Mr Sorensen was involved. I think I said earlier ISM bought the ship, it was actually CSL Australia who bought the ship. It was part of the dispute and the conference that we had before Senior Deputy President Duncan.

PN11

On balance the certified agreement provides for conditions superior to MISA but recognises some of the difficulties that were being experienced by the company in putting in full force and effect MISA. If the Commission pleases, we ask the Commission to approve the - - -

PN12

THE COMMISSIONER: It is slightly out of time, isn't it?

PN13

MR McNALLY: It was filed in time but our declaration was filed subsequently. It was filed in Melbourne on 29 January and it was approved by the valid majority on 9 January.

PN14

THE COMMISSIONER: Yes.

PN15

MR McNALLY: 19 days. In any event, I am instructed that the ratings haven't changed.

PN16

THE COMMISSIONER: Anyway, it won't trouble us, that aspect. Yes, Mr Manuel?

PN17

MR MANUEL: My position is the easy one, Commissioner. I broadly adopt my learned friend's submissions. The only point I would make in terms of the factoring in of the long service leave and the redundancy, that that provides an immediate benefit to employees because that also flows on to any additional payments because it forms part of the base salary and it also provides benefits where some may never have been accrued. In other words, a person who is only there for 6 years will be paid for the long service leave even though they wouldn't have in the ordinary course have qualified subsequently. Likewise with redundancy. A person who resigns in 5 years time has derived the benefits of that redundancy in a variety of methods and we would comment this agreement to the Commission.

PN18

THE COMMISSIONER: Yes, thank you. This is an application to have certified an agreement that is to be known as the Intercontinental Ship Management Proprietary Limited (Iron Chieftain) Maritime Union of Australia Agreement 2003. The parties to the agreement are International Ship Management and the Maritime Union of Australia. On the basis of the submissions and documentation, the Commission is satisfied the relevant requirements of the Act have been complied with. Consequently the agreement will be certified and will come into force from 11 February 2004 and it will remain in force for a period of 3 years. On that basis these proceedings are now adjourned.

ADJOURNED INDEFINITELY [11.00am]