C2005/3247, Transcript of Proceedings [2005] AIRCTrans 1353 (22 June 2005)

TRANSCRIPT OF PROCEEDINGS

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Workplace Relations Act 1996 11845-1

COMMISSIONER BLAIR

C2005/3247

BOSTIK AUSTRALIA PTY LTD
AND
NATIONAL UNION OF WORKERS
s.99 - Notification of an industrial dispute
(C2005/3247)

MELBOURNE

1.34PM, WEDNESDAY, 08 JUNE 2005

Continued from 6/6/2005

PN1

MR P NOLAN: I lodge myself as an additional appearance, Commissioner, along with MR T BURKE and MR C THOMPSON.

PN2

MS S ALLISON: I appear with MR M KILKENNY on behalf of the National Union of Workers. With us we also have the NUW Bostik delegates
MR J FALZONE and MR B HANSEN.

PN3

THE COMMISSIONER: Thank you. We seem to have a problem with the initials of each person. Mr Kilkenny got called Mr K Kilkenny until there is a slight switch and then Tom became Kelvin or whatever it was. Mr Nolan?

PN4

MS ALLISON: We are off to a good start.

PN5

MR NOLAN: Thanks, Commissioner. The reason for my appearance today is merely because Mr Burke was scheduled to be in Launceston today to deal with another matter. Unfortunately the weather in Launceston evidently isn't quite as good as in Melbourne and after spending six hours at the airport he decided to give up the attempt to get there. So, because of the developments that had occurred at Bostik, Commissioner, I became involved with it. This matter was before you on Monday at which stage I believe after some time there was a recommendation made following some negotiations in the Commission where the opposition was that, as I understand it, that the offer that the company had made be considered by the employees.

PN6

That there be a lifting of the industrial action in the form of the overtime ban on each shift and that there would be further negotiations under your auspices at the site on Friday morning in an atmosphere hopefully free of industrial action. Our understanding or my understanding is that the union had undertaken to be at the plant to talk to day shift yesterday morning and that it didn't transpire. As it turns out I think Mr Kilkenny visited the site about the time the night shift started yesterday. The company's offer has been rejected by the employees at that meeting and a meeting of day shift this morning so the overtime bans on each of the shifts remain in place.

PN7

This is causing the company added concern, Commissioner, particularly about its capacity to supply the automotive industry where, not only being a Tier 1 supplier to the four car companies, is also a second tier supplier to another first tier supplier and clearly the capacity to service those contracts and as I say I am focussing on the auto industry not other clients that the company might service but it is concerned that it has a diminishing capacity to be able to supply and maintain the contracts, the contractual requirements for the car companies. So that adds, you know, a pretty serious dimension to the dispute, Commissioner and when we learnt that in fact the proposal and the recommendation had been rejected we sought an urgent relisting of the matter to see if progress in one way or another couldn't be made as quickly as possible.

PN8

We are just, really, mark the spot with this issue at this point in time, Commissioner, but in the event that we can't make any additional progress in conciliation before you we may seek that you exercise your general powers under the Act to implement a process whereby there can be ongoing negotiations between the parties under the auspices of the Commission as currently constituted that that be in an atmosphere free of industrial action taking place. We are not pursuing that at this moment. It may be appropriate that after you have heard from the NUW that we go into proceedings under your chairmanship in conference. If the Commission pleases.

PN9

THE COMMISSIONER: Thank you. Yes, Ms Allison?

PN10

MS ALLISON: Thanks, Commissioner. Commissioner, I can confirm that the proposal that had been discussed in the Commission the last time the parties were here was put to members of the NUW and employees at Bostik and that proposal was seriously discussed and it was indicated that the Commission did support such a proposal. However, after serious discussion our members voted unanimously that unless the company could indicate they were seriously prepared to look at moving on the superannuation issue and the issue of the number of clauses in the agreement that we are still in dispute about, the employees and the NUW members were not currently prepared to remove the legitimate overtime bans of the protected industrial action in which they are engaging.

PN11

Commissioner, we are also very happy to see if discussions can be furthered today. I will just flag in response to Mr Nolan flagging the issue about seeking the Commission to exercise power under section 111. Essentially, we see that he is possibly seeking directions or an order to cease industrial action and we have, we will be submitting that there are serious jurisdictional issues in relation to that and we would be further submitting that if the company intends to make such an application that natural justice would require that there be an adjournment and a time to prepare formal submissions in relation to that application. But putting that aside, Commissioner, we are also happy to go into conference to see if negotiations can be furthered at this point.

PN12

THE COMMISSIONER: You might need to clarify something for me, Ms Allison. I must say I am slightly confused. What the Commission put Monday was that the offer of the company was to be put to the members. It didn't necessarily say that the Commission endorsed that offer. The second thing is the Commission set aside some time this coming Friday at the plant to go through the wording of the proposed agreement. Now the Commission said that it is happy to do that but it would like the industrial action to cease. If the employees, the members of the union reject the offer then the offer would be the first item to be discussed at the meeting at the plant. What you have said to the Commission is that and I understood Monday that superannuation was an issue. There is no dispute about that. That appeared to be the sticking point. But you have now advised the Commission that the company must move on the issue of super and on the wording of the agreement. Is that what is being put?

PN13

MS ALLISON: Commissioner, my understanding - and I do apologise because I have come late to these negotiations- - -

PN14

THE COMMISSIONER: No, I understand that.

PN15

MS ALLISON: - - -is the issue is to do with an increase in superannuation and there are a number of clauses in the enterprise agreement which the company has sought be changed from the previous agreement and the union is not prepared to consent to those changes but I will just - - -

PN16

THE COMMISSIONER: Well, I have got to say Ms Allison, the purpose of going to the plant on Friday quite apart from the issue of money was to go through with the parties the clauses. It was not anticipating to go through the clauses whilst there was still overtime bans on because that may take some time.

PN17

MS ALLISON: Commissioner, we certainly understand that and that is right and that was conveyed to the members and the general feel was that they would be most happy for the Commission to be involved in the negotiations however, they were not prepared at this stage to reduce the legitimate pressure of the overtime bans.

PN18

THE COMMISSIONER: Well, maybe I should hear from Mr Nolan as to where the bans are affecting the auto industry if they are because I have got to say to you and I will be perfectly up front with you, I am not, under any circumstances, going to participate in discussions about wording of an agreement that may take some time whilst bans are on affecting thousands of other employees. I am not going to do that and in fact if that is the position of the union then I just may as well hear a section 170MW application now. To suspend or terminate the bargaining period. I don't play games. I am quite serious about offering the services of the Commission to try and resolve the issue but I am not going to have a gun at the Commission's head by way of a threat to thousands of other employees when the Commission is genuinely trying to help the parties reach an agreement.

PN19

MS ALLISON: And Commissioner, we appreciate that but the employees are currently engaged in legitimate industrial action.

PN20

THE COMMISSIONER: There is no dispute about that. There is no dispute about that.

PN21

MS ALLISON: If the company wishes, the company has made a number of allegations regarding the effects of industrial action that Commissioner, you have referred to. If the company wishes to make such an application there is a formal process it needs to go through.

PN22

THE COMMISSIONER: Well, the Commission can under its own motion, under section 170MW(3)(b), and that is that to cause significant damage to the Australian economy or an important part of it and the auto industry is an important part of the Australian economy.

PN23

MS ALLISON: Commissioner, I am afraid I have missed what you are saying that the Commission- - -

PN24

THE COMMISSIONER: Under its own motion, can issue or can suspend or terminate a bargaining period under section 170MW(3)(a) or (b). It doesn't need an application from either of the parties to do so.

PN25

MS ALLISON: Commissioner, we would be saying that there has been no evidence put and challenged in this forum in relation to that.

PN26

THE COMMISSIONER: I am not, you didn't listen to what I said. I said I may as well now invite Mr Nolan to advise the Commission on the on the effects that this is having on the auto industry. Now all the union has got to do, all they have to do is tell the Commission this, that if it participates in conciliation now and if we are able to reach an agreement on the monetary outcome including the superannuation issue then the bans will come off and allow the Commission to participate in the wording of the agreement. It is not going to participate if we reach an agreement on the monetary outcome and still have bans on and try and work to the wording of an agreement which may take some time. Not going to play that game. Simple.

PN27

MS ALLISON: Commissioner, if I can just seek a very short adjournment to speak to the organiser to get instruction on that?

PN28

THE COMMISSIONER: Absolutely. We will adjourn for 10 minutes. Thanks.

<SHORT ADJOURNMENT [1.49PM]
<RESUMED [2.07PM]

PN29

THE COMMISSIONER: Ms Allison?

PN30

MS ALLISON: Thanks, Commissioner. Commissioner, if we are able to resolve the monetary issues in conciliation today we would recommend to the members that the bans are lifted while further discussions occur with the assistance of the Commission to resolve the matters in dispute about clauses in the enterprise agreement.

PN31

THE COMMISSIONER: Okay. Thank you. Do you wish to add anything, Mr Nolan or do you just wish to go in conference?

PN32

MR NOLAN: No Commissioner, not formally at this point in time. I think if we go into conference your chairmanship would be appropriate.

PN33

THE COMMISSIONER: Thank you. All right. The Commission will go into conference then.

<NO FURTHER PROCEEDINGS RECORDED