C2005/5003, Transcript of Proceedings [2005] AIRCTrans 2292 (4 November 2005)

TRANSCRIPT OF PROCEEDINGS

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Workplace Relations Act 1996 13239-1

SENIOR DEPUTY PRESIDENT LACY

C2005/5003

APPLICATION BY ALCOA WORLD ALUMINA AUSTRALIA
s.113 - Application to vary an Award
(C2005/5003)

MELBOURNE

10.07AM, THURSDAY, 20 OCTOBER 2005

THE FOLLOWING PROCEEDINGS WERE CONDUCTED VIA VIDEO CONFERENCE AND RECORDED IN MELBOURNE

PN1

MR J TILLING: I appear on behalf of Alcoa World Alumina Australia, along with MR D MONOHAM and MR C ADORNETTO.

PN2

MR C WINTER: I appear on behalf of the Australian Workers Union along with MR B NOONAN.

PN3

MS C CHEW: I appear on behalf of the Australian Manufacturers Workers Union, and with me the stewards on the site MR P JOHNSON and
MR S LANG.

PN4

THE SENIOR DEPUTY PRESIDENT: Thank you. Who do we have in Sydney?

PN5

MR M MURPHY: I appear on behalf of the CEPU.

PN6

THE SENIOR DEPUTY PRESIDENT: Thank you. Well perhaps I'll hear from you first Mr Tilling.

PN7

MR TILLING: Thank you your Honour. Your Honour with the video link should I stand or sit?

PN8

THE SENIOR DEPUTY PRESIDENT: Perhaps it's best if we all sit for the purpose of Mr Murphy.

PN9

MR TILLING: This matter your Honour, relates to an application made by the company under section 113 of the Workplace Relations Act to vary the Alcoa Point Henry Smelter and Anglesea Power Station Award 2003. The three main respects firstly, to amend the job descriptions relating to Smelter operators set out in appendix A of the award. Secondly, to insert a job description and job position relating to new structured job roles of team leader and process controller. Effectively we are inserting the new job position of team leader which replaces the current operator 6 and a new job position of process controller and I'll obviously go through that in some detail in due course. And thirdly, to insert a procedure to better govern the progression of Smelter operators through the classification structure.

PN10

Just some background to the application and to the award, I am aware your Honour, that you're aware of the award at some degree but maybe just a short amount of background will assist. The current Alcoa Award was made by Senior Deputy President Marsh on 8 December 2003 as part of the then award simplification process. It replaced in totality, the previous Alcoa Australia Award 1982 pursuant to review conducted under Item 51 of the Workplace Relations and other Legislation Amendment Act of 1996. Now both the previous 1982 Award and the new 2003 Award covers Smelter operators, maintenance trade persons and some ancillary groups employed by Alcoa at its Aluminium Smelter at Point Henry near Geelong. This Smelter covers all activities in or in connection with the Smelting process up to but excluding the casting of aluminium.

PN11

The subsequent operations of casting and rolling are undertaken by a separate but closely associated company entitled Alcoa ….. Products under a separate award. I should also mention that this award, the 2003 Point Henry Award, also covers operators and maintenance personnel at the company's Anglesea ….. Power Station. Your Honour, the union coverage in the Award as is follows; all operators and members are eligibly members of the AWU, mechanical tradesmen covered by the AMWU, electrical tradespersons by the CEPU. The award also covers a handful of several trades persons, about six, who are eligible for membership of the CFMEU, I think mostly bricklayers, and these arrangements are set out clause 8 of the Point Henry Award. However you're Honour, the application before the Commission in these proceedings relates only to operators at the Point Henry Smelter.

PN12

THE SENIOR DEPUTY PRESIDENT: That's only the employees who are covered by the AWU?

PN13

MR TILLING: That's correct. So to put the size of this group in perspective we have prepared a small exhibit, a table that sets out the number of employees covered by each union group under the award and I submit that to the Commission if the Commission pleases. I think the exhibit's self explanatory your Honour, it could be seen as 477 employees covered by the award at Point Henry, of those over 300 are subject to this application. There are a few other AWU people who are covered in that number of 335 your Honour who are not operators but are covered by the structure, I think there are a few in the canteen and whatever which are not subject to this application.

EXHIBIT #ALCOA1 TABLE THAT SETS OUT THE NUMBER OF EMPLOYEES UNDER EACH UNION GROUP

PN14

MR TILLING: You're Honour all of the other union's respondent to the award have been formerly served with copies of the application, the notice of hearing and other relevant documentation in accordance with rule 22. This occurred on October 11. In addition your Honour, senior site delegates have also been provided with copies of all documentation. If I can now make some brief submissions regarding the history of the application.

PN15

The current 9 level classification structure set out in clause 21 of the award was introduced into the then 1982 Award pursuant to the structural efficiency principal in July, 1991 in PRJ7695. The structure largely covered operator and trades job grades. In subsequent years since that time the structure has been amended in a number of ways, but interestingly not for this particular group until this point. The four major amendments which have been made since the 1991 to the structure has been an addition of an additional level of mechanical trades at a level 9, the addition of new classifications covering equipment managers which is a metal trades group of classifications. Thirdly following the review by placing the Anglesea job positions in a separate structure, and lastly by removing the job positions relating to casting and rolling following the establishment of a separate business covering those activities.

PN16

The result and classification structure and job descriptions relating specifically to the Point Henry Smelter remained unchanged as a result of the 2003 award simplification process. So when we went through the whole process before Senior Deputy President Marsh there were no changes to the operator classifications or the job descriptions that were attached to them. However during this process the actual pay rates attached to each classification were adjusted to reflect properly fixed minimum rates of pay, consistent with a Full Bench pay rates review decision of 1998. This adjustment was necessary as the 1982 Award which it replaced was effectively a consent pay rates award. The establishment of the pay rates and the then new simplified award, i.e. the current 2003 Award on a proper basis is confirmed in a decision brought down by Senior Deputy President in making that award.

PN17

Now I say that because that's the basis upon which obviously these amendments are being made and I would just refer the commission to that print of Senior Deputy President Marsh which is PRAW765518 of 8 December, and have a copy of that if the Commission would wish to see it.

PN18

THE SENIOR DEPUTY PRESIDENT: No it's all right.

PN19

MR TILLING: As a result of the 2003, making of that 2003 Award, the classification result and pay structure for the Point Henry Smelter is set out in subclause 21.1.1 of that award. These rates have subsequently been adjusted by the absorption of the 2004 safety net adjustment, the other residual payment. A similar adjustment in line with the 2005 safety net adjustment has not yet taken place. Your Honour the relevant employees are also covered by a federally certified enterprise agreement entitled the Alcoa Point Henry Smelter and Anglesea Power Station Agreement 2004. Now clause 8(b) of that agreement sets out the classification structure and pay rates that actually apply and whilst the classification structure and job descriptions are identical to those in the award, the pay rates are higher and are based on an annualised formula. However in clause 8(g) of the current enterprise agreement the parties are committed to, and I quote:

PN20

Review current award classification structure for the Point Henry Smelter and associated job descriptions following certification of the agreement.

PN21

And that's set out at page 18 of the current Point Henry Agreement 2004. And these proceedings here are effectively the outcome for the operators of that exercise. Just some background to the exercise that was conducted on a consultancy basis, the history of that over the last few months is as follows. In early 2005 senior managers at the Point Henry operation met with senior site delegates of the AWU, who are here with us today. The initial meetings were designed to deal with two matters, one was to identify the business needs to be met by any revised operator classification structure which hadn't been reviewed for 14 years.

PN22

And secondly, the development of a more effective process to govern the career progression of operators through this structure. In having reached some understandings earlier in 2005 the company prepared a first draft of a revised structure, along with an amended job descriptions and a progression procedure. This was discussed with an amendment in conjunction with the local AWU official at the time and senior site delegate. The draft was then considered and then endorsed in principle by a forum of AWU site delegates. Following this consideration ongoing consultation between the senior site delegate and the company resulted in considerable fine tunning involving a series of drafts.

PN23

Now during this process both the AMWU and CEPU senior delegates were informed of the revised operator structure. The company obtained a verbal commitment from both representatives that they did not object to the changes being proposed. Now this was based your Honour, on the understanding that the revised operator position descriptions would not impact on the work currently undertaken by the maintenance unions on site. The final product that was completed in early September an application subsequently sent to the industrial registrar on 28 September 2005.

PN24

Your Honour we prepared an exhibit that sets out the current and proposed classification of wage and pay structure which resulted from this exercise and I'll tender that with the information to Commission.

PN25

THE SENIOR DEPUTY PRESIDENT: Yes. You said that the revised structure doesn't impact on the current work arrangements. What do you mean by that?

PN26

MR TILLING: It doesn't impact on the work that's currently undertaken or required to be undertaken by tradesmen.

PN27

THE SENIOR DEPUTY PRESIDENT: A tradesman?

PN28

MR TILLING: Yes. It involves higher level work for the process controller and a different classification and a change to the work arrangements for a new team leader classification, but they're both within the manufacturing side of the business and not within the maintenance side.

PN29

THE SENIOR DEPUTY PRESIDENT: Right.

PN30

MR TILLING: Which was an issue to those unions when we went through
those - - -

PN31

THE SENIOR DEPUTY PRESIDENT: Yes. Right I see. I'll mark the current classification of current and new classification and pay structure as exhibit Alcoa2.

EXHIBIT #ALCOA2 CURRENT AND NEW CLASSIFICATION AND PAY STRUCTURE

PN32

MR TILLING: Thank you. Your Honour, just some comments concerning the exhibit your Honour, you'll note that the current structure in place since 1991 has an operator one to six, six classifications per operator and nine classifications - sorry I'll detract that, seven classifications of mechanical and electrical trades but they're in one integrated structure, one integrated nine level structure.

PN33

THE SENIOR DEPUTY PRESIDENT: Sorry, what did you say seven - - -

PN34

MR TILLING: Yes, there's a mechanical trades person one to seven.

PN35

THE SENIOR DEPUTY PRESIDENT: I see yes.

PN36

MR TILLING: In effect the tradesmen go from level 3 to level 9 and operators go from level 1 to level 6, and in recent years there's been a new classifications introduced as I said earlier for the equipment manager, and they are level 7(a), 8(a) and 9(a). That's the structure that's currently in the award, endorsed by or made by Senior Deputy President Marsh. Now the new structure on the right hand side, the Commission will note that the first 5 levels of operator are fairly well unchanged. Effectively what's happened here is that there's been some streamlining and restructuring of the descriptions, the job descriptions but there's been no change to the job position classification or to the pay rate so their identical to what they are now.

PN37

Level 6 effectively we've removed the current level operator 6 and it replaced that position with a team leader position, so that's a reorganisation at that level and again there's no increase in pay, the team leader has been slotted in at the level 6 level. The only increase in pay involved within the context of the structure is the process controller at a margin of 113 per cent, and that new position of the process controller has been lined up at level 7 which happens to be the same level as the NT5 and the current award. So we're not talking about any increases in pay rates at all outside the current structure, but we are talking about a small number of AWU operators being able to get to level 7 by vacancy and appointment.

PN38

We submit your Honour, that the application is consistent with principle two of the Commission's statement of principles attached to the recent safety net review decision. Firstly, while the job descriptions for operator levels 1 to 5 have been sharpened and streamlined, after being in place for 14 years there are no changes in wage rates involved as I mentioned.

PN39

Secondly, the replacement of the old operator 6 classifications with the new team leader position also does not involve any change in pay rate. Thirdly, we believe your Honour, that the new process controller classification is consistent with the work value principle, principle 6, and in this regard we make the following observations. The job descriptor for the process controller in the draft order involves a number of accountabilities over and above those previously expected of senior operators. These include, to summarise, three key additional abilities. Firstly, to provide supervision and direction setting for other operators, and team resources and periodically to perform the role of acting supervisor. Secondly, the process controller a little bit similar to the equipment manager on the other side of the fence of tradesman, will be a shift - - -

PN40

THE SENIOR DEPUTY PRESIDENT: Sorry which one are you talking about now - which one were you talking about just then?

PN41

MR TILLING: I'm sorry; I'm talking here just about the process controller.

PN42

THE SENIOR DEPUTY PRESIDENT: Yes, level 7.

PN43

MR TILLING: I just made the observation that one or two of the roles of the process controller on the manufacturing side are similar in terms to those that apply to equipment managers who are the tradesmen, who are not subject to this application and already paid under the current structure. Maybe that's a bit confusing.

PN44

THE SENIOR DEPUTY PRESIDENT: No I'm fine now.

PN45

MR TILLING: It's not directly relevant I was just trying to make the observation that there was some symmetry there your Honour. So as I said if I could just go back to the three points. Firstly the additional key accountabilities of this job. One, to provide supervision and direction setting for other operators and team resources, and periodically to perform the role of acting supervisor. Two, the process controller will be the shift expert resource responsible for the practical, timely and economic solutions to process issues. He's responsible for a multiple manufacturing processes, being the expert resource available for any problems that may arise, and what I mean multiple manufacturing processes for example in the pot rooms, varies ….. area, that would include tapping as a process, setting is another process, pottering is a third one and possibly some others I'm unfamiliar with.

PN46

That's the second major additional accountability and the third one is to be sure that shift manufacturing objectives are met on behalf of the supervisor. This requires the incumbent to in affect, champion the identification and rectification of critical process deviations previously left to management. They're the three major additional accountabilities involved your Honour. Later on if you wish further expert information on that Mr Adornetto who is the appropriate manager in that area could make submissions if you found that necessary.

PN47

THE SENIOR DEPUTY PRESIDENT: I think I follow what you're saying about that.

PN48

MR TILLING: The second point in regard to the - an observation I'd like to make on the process controller new job position, is that the additional skills, knowledge and competencies associated with this job position are reflected in the additional training that's required and I've a further exhibit setting out the training schedule which we seek to submit to the Commission.

PN49

THE SENIOR DEPUTY PRESIDENT: Yes right.

PN50

MR TILLING: I should say your Honour, that this training schedule deals with all levels. The training requirements specifically for the process controller are on page 3.

PN51

THE SENIOR DEPUTY PRESIDENT: Just before you go - these training requirements, are they additional for all levels or just - - -

PN52

MR TILLING: No, these are the training - this is the training that is required at each of the levels.

PN53

THE SENIOR DEPUTY PRESIDENT: Right.

PN54

MR TILLING: However it is additional, because there's a higher pay rate involved, it is additional for the process controller. As I mentioned earlier on the pay rates that apply to operator levels 1 to 5 aren't changed, really it's a streamlining of the classifications, but yes the answer for the process controller is that by a new additional training requirements and competency requirements of this job which we submit are substantial.

EXHIBIT #ALCOA3 NEW TRAINING REQUIREMENTS FOR EQUIVALENT COMPETENCIES

PN55

THE SENIOR DEPUTY PRESIDENT: When you say that it's substantial perhaps if you can just take me through that.

PN56

MR TILLING: If I could pass over to Mr Adornetto your Honour to do this.

PN57

THE SENIOR DEPUTY PRESIDENT: Yes.

PN58

MR ADORNETTO: Yes. The competencies that we talk about here at process controller level in the dense phase operation which is how we convey our luminare into the pots and the management of that operation. What we call abnormal event management so that anything that goes wrong with the process these people having accountability to address those and make recommendations as to how to rectify.

PN59

THE SENIOR DEPUTY PRESIDENT: Who used to do this in the past?

PN60

MR ADORNETTO: Well it was a combination with the shift supervisor and other technical resource people.

PN61

THE SENIOR DEPUTY PRESIDENT: Right.

PN62

MR ADORNETTO: We would now see that as a core competency of the process of the controller at that level. Pot line switching which is a fairly high level activity in the management of the pot line at Point Henry.

PN63

THE SENIOR DEPUTY PRESIDENT: What is involved?

PN64

MR ADORNETTO: Well it involves working with electricians and understanding that process of how to switch the potlines from live to being offline.

PN65

THE SENIOR DEPUTY PRESIDENT: Yes.

PN66

MR ADORNETTO: And also the management of the fume system which is a fairly key critical process environmentally for the pot line.

PN67

THE SENIOR DEPUTY PRESIDENT: What does that involve?

PN68

MR ADORNETTO: Making sure that the fume system is running efficiently, correctly, addressing any issues with either the fume system itself or the delivery of alumnae into the plant and the pot lines. And they're the key activities that the process controller would have in this new role. They're all previously done by a combination of staff, technical people with the assistance of sometimes the PSA.

PN69

THE SENIOR DEPUTY PRESIDENT: Yes.

PN70

MR TILLING: Thank you your Honour. So we would submit the process controller involves a significant increase or higher level in regard to accountabilities required and the competencies that underpin those accountabilities. The third observation I'd make your Honour, is that the pay margin is a relatively modest 2.7 per cent for these additional work value factors.

PN71

THE SENIOR DEPUTY PRESIDENT: How many people would this involve by way of process controllers?

PN72

MR TILLING: How many?

PN73

THE SENIOR DEPUTY PRESIDENT: How many people?

PN74

MR TILLING: Around about 30 to 35.

PN75

THE SENIOR DEPUTY PRESIDENT: Would be process controllers?

PN76

MR TILLING: Yes. It's 30 to 35 and a total number of over 300. I should also mention your Honour that the document I've given you there for training covers pot room operations. There are basically two areas within the smelter, pot rooms and electrode, but the number of people in pot rooms is 240, and we thought that was the appropriate documentation to present to the Commission. As I said the third observation of the pay margin is a relatively modest 2.7 per cent. We'd also submit that the pay level for the process controller is already embodied in the longstanding 9 level integrated pay structure. The company appreciates that it is an increased award rate of pay for a particular group of people classified at this new position of process controller, but it is within the 9 level structure and not above it. And as I did mention earlier a promotion is by appointment and vacancy and we would expect a number of people to be around about 30 to 35.

PN77

I have prepared submissions your Honour, it's going into more detail for each of the levels.

PN78

THE SENIOR DEPUTY PRESIDENT: What about the - you mean regarding the wage relativities?

PN79

MR TILLING: No. Basically summarising what is in the draft order that the Commission's already had an opportunity to review. I was a bit reluctant to go into that unless you considered that necessary.

PN80

THE SENIOR DEPUTY PRESIDENT: No I've got some questions about that but what do you say about the wage relativities? Does this make any change to wage relativity or result in any change in wage relativities internal or external?

PN81

MR TILLING: There will be no change in actual wage relativities because the award sets the safety net minimal upon which is some 30, 40, 50 per cent below actual rates of pay. The actual enterprise bargaining agreement also has the same 9 level structure but has a much higher, obviously as I just said, pay rates in them. Effectively within the context of the minimum award these process controllers are picking up the additional skills which resulted from a review which in effect has already occurred. We would submit to some degree for the metal workers in the electrical trades who had benefited previously from the equipment, the manager structure which was put in some years ago, quite some years ago actually. But there are – we wouldn't see that as impinging, and as I mentioned earlier on discussions have already been taken place with the metal workers and the CEPU will obviously speak for themselves, informing them of the new classification structure and indicating that we would be introducing a new level 7 for operators but within the current integrated 9 level structure.

PN82

THE SENIOR DEPUTY PRESIDENT: Right.

PN83

MR TILLING: If the Commission pleases there is one other matter I'd like to address. In discussions with the metalworkers, the ETU, we obviously went through the document with them as well to ensure that all parties were comfortable. There is a variation to the draft order the addition of one sentence which appeared to be inadvertently left out despite the lengthy drafting process, which we would like to submit to the Commission.

PN84

THE SENIOR DEPUTY PRESIDENT: Whereabouts is that? Do you have a copy of this change there?

PN85

MR TILLING: Yes I do. This variation is consistent with the objective and recent discussions held with representatives of all unions that there would with these changes as a consequence of a review of work changes would not impinge on work that is currently undertaken by the product union. Is that correct?

PN86

MR ADORNETTO: That's correct.

PN87

MR TILLING: The Commission will note that 1.4, I think, is on page 1 of the draft order.

PN88

THE SENIOR DEPUTY PRESIDENT: Page 2.

PN89

MR TILLING: Sorry?

PN90

MR ADORNETTO: Page 2.

PN91

MR TILLING: Page 2 I'm sorry. The additional sentence is that it's in italics reading:

PN92

These additional duties will be agreed between the company and accredited employee representatives in accordance with 1990 Skill Share Agreement.

PN93

The Commission will note that a similar statement occurs already in the award for the job descriptions for metals and the electricians and indeed was in the 2003 award and the 1982 award and somewhere along the line it got left out.

EXHIBIT #ALCOA4 VARIATION OF DRAFT ORDER

PN94

MR TILLING: Thank you your Honour. In summary your Honour, if you're happy for us not to go through in detail, as you indicated of the draft order, we would end our submissions on that basis and let the Commission sees itself clear to make the variation as sought.

PN95

THE SENIOR DEPUTY PRESIDENT: Yes. I just have a couple of questions Mr Tilling. In clause 1.11, well basically throughout all of the clauses from thereon, the heading says Operator 1 but the actual designation in the clauses themselves is smelter operator. Is that simply because the local designation is simply operator is it?

PN96

MR TILLING: Yes. But we would certainly not have any objection to an amendment to those headings if the Commission felt that – but yes that's a colloquial terminology operator - - -

PN97

THE SENIOR DEPUTY PRESIDENT: Yes it depends whether or not to insert smelter operator would be inconsistent with other provisions in the award. I haven't had a close look at that, whether or not sure if to refer to them, as simply to the classification as operator in the other parts of the award then perhaps you should simply have it as operator.

PN98

MR TILLING: Yes, no objections there.

PN99

MR ADORNETTO: No objections.

PN100

THE SENIOR DEPUTY PRESIDENT: The other thing is in clause 1.11.1, is a reference to OSHA certificates, it might be a very commonly understood term amongst most people but I don't understand what it is.

PN101

MR TILLING: Occupational Safety and Health Authority.

PN102

THE SENIOR DEPUTY PRESIDENT: Occupational Safety and Health.

PN103

MR TILLING: These certificates - - -

PN104

THE SENIOR DEPUTY PRESIDENT: They're not occupational health and safety authority, they're occupational safety and health, are they? I'm not saying it's wrong but it just sounds different than I normally hear.

PN105

MR ADORNETTO: It's generally the terminology that most people understand.

PN106

THE SENIOR DEPUTY PRESIDENT: All right.

PN107

MR ADORNETTO: They are at our location but we agree with that. We refer to them normally as OSHA in all of our - - -

PN108

THE SENIOR DEPUTY PRESIDENT: Okay that's all right. In clause 1.5 and clause 1.17.4 there is a reference to EHS in 1.5 first:

PN109

A plant EHS policies and procedures.

PN110

What's EHS?

PN111

MR ADORNETTO: Environmental Health and Safety.

PN112

THE SENIOR DEPUTY PRESIDENT: And that's a commonly understood term within the industry is it?

PN113

MR ADORNETTO: Yes. Environmental health and safety is certainly in the industry. There are references to EHS in all of our plant policies and procedures.

PN114

THE SENIOR DEPUTY PRESIDENT: In 1.11.4 there's an entry to smelter operator should that simply be smelter operator 1?

PN115

MR ADORNETTO: Yes.

PN116

THE SENIOR DEPUTY PRESIDENT: In 1.14.7 - see I seem to be missing out on something here, it says:

PN117

This classification level will be the maximum level that can be obtained by all current employees working in support functions such as the respiratory support centre and a transportation, east enders and workshops.

PN118

And in 1.15.1 it says:

PN119

All operators have the opportunity to advance to this level on the basis of achieving a necessary level of skill and competency.

PN120

That seems to be in conflict with 1.14.7 which says it's the maximum level.

PN121

MR MONOHAM: Your Honour I think the correct reference there probably should denote all production based operators have the opportunity to achieve level 5. We have a number of operators as Mr Tilling earlier alluded to engaged in support for ancillary functions such as the respiratory support centre and indeed the canteen, but would not attract the opportunity of going through to a level 5.

PN122

THE SENIOR DEPUTY PRESIDENT: So how do I make it clear that that's what the distinction is? Or do you say the distinction is evident on the terms of those clauses as they stand?

PN123

MR MONOHAM: I think we would need to note unless otherwise identified, all operators unless otherwise identified.

PN124

MR TILLING: With the exclusion of those specified in 1.14.7, all operators have the opportunity, that would be more mutually exclusive, your Honour. To start off 1.15.1 with the exception of the operators specified in 1.14.7, all other operators - - -

PN125

THE SENIOR DEPUTY PRESIDENT: So just to clarify then, is the defining terms in 1.14.7 "employees working in support functions", is that the support functions aspect that defines the limitations on those classes.

PN126

MR MONOHAM: That's correct your Honour.

PN127

THE SENIOR DEPUTY PRESIDENT: Well if 1.15.1 said all operators other than those engaged in support functions have the opportunity?

PN128

MR MONOHAM: Yes that would be acceptable your Honour.

PN129

THE SENIOR DEPUTY PRESIDENT: I'll hear what the union has to say about it obviously. All right, in 1.15.7 it simply reads:

PN130

This classification is set at level 5 in the pay rate structure.

PN131

In all other cases in levels 1 to 4 it has this classification is set at level 4 in the pay rate structure in 21.1, should the words in 21.1 occur after structure in that?

PN132

MR TILLING: Yes your Honour. Indeed in my draft it is, but it must have got left out somewhere. Yes it all should relate to 21.1.1.

PN133

THE SENIOR DEPUTY PRESIDENT: Yes. In 1.16.2 there are words in quote in the third last line in that paragraph "walking flow", what does that mean?

PN134

MR ADORNETTO: It generally means walking the way that the process operates so that you're following the flow path of how the metal is made and distributed and or sent down ….. is generally what they talk about. We walk the flow by walking from end of the plant where we make the carbon right through to where we deliver the metal to ….. Mill, and that's what they call walking the flow.

PN135

MR TILLING: It is a physical walk.

PN136

MR ADORNETTO: It is a physical walk sorry.

PN137

THE SENIOR DEPUTY PRESIDENT: Yes right. In 1.16.10 there's a reference to "shift help chain", what does that mean?

PN138

MR ADORNETTO: The shift help chain is, that would be the person who that shift would go to if there was an issue and they needed some advice or direction about what to do.

PN139

THE SENIOR DEPUTY PRESIDENT: Is that a commonly understood term in the industry?

PN140

MR ADORNETTO: Yes. Help chain is something that we have throughout the organisation, help chains. We have designated help chains for EHS for all sorts of activities including the process.

PN141

MR TILLING: Which is documented.

PN142

THE SENIOR DEPUTY PRESIDENT: And 1.17.4 ABS, I've only ever heard of ABS in relation to cars, which is automatic brakes isn't it?

PN143

MR ADORNETTO: It is. ABS is the Alcoa version of the Toyota production system.

PN144

THE SENIOR DEPUTY PRESIDENT: Is it?

PN145

MR ADORNETTO: It is called the Alcoa Business System.

PN146

THE SENIOR DEPUTY PRESIDENT: Right and it is defined in it.

PN147

MR ADORNETTO: Yes, your Honour.

PN148

THE SENIOR DEPUTY PRESIDENT: clause 20 I think.

PN149

MR ADORNETTO: Sorry?

PN150

THE SENIOR DEPUTY PRESIDENT: Clause 20. Anyway it is defined. All right did you want to say anything else Mr Tilling at this stage?

PN151

MR TILLING: No thank you.

PN152

THE SENIOR DEPUTY PRESIDENT: No. Yes Mr Winter.

PN153

MR WINTER: Thank you your Honour. We support the detailed submissions put forward in relation to application. The application is clearly consistent with commitments reached in our certified agreement that was certified by Commissioner Mansfield on 29 October 2004 and in particular as already mentioned, clause 8(g) of that agreement that the parties were committed to review the current award classification structure for the Port Henry Smelter and associated job descriptions immediately follow the certification of the agreement.

PN154

Now the agreement as you know, was certified on 29 October 2004. It was envisaged by the parties that the review and the new structure would be completed within six months, but because of the massive job involved and the processes of consultation et cetera, it's clearly taken significantly longer than that, but - - -

PN155

THE SENIOR DEPUTY PRESIDENT: As these things do.

PN156

MR WINTER: As these things do, and probably one of the last applications of its kind before this Commission that may be dealt with. The application itself we would argue, is consistent with the wage principles, and there was some areas of concern in regards to the trades area and we would give a commitment that this application would have any impact on trades areas. It's not a matter of production workers' performing trades functions and I think that the variation to the application, exhibit 4.1.4 clearly spells that out, it is part of a, I suppose an agreed document that goes back to 1990.

PN157

THE SENIOR DEPUTY PRESIDENT: Sorry which exhibit are you talking about?

PN158

MR WINTER: Four. The revised - it was the variation to the draft order.

PN159

THE SENIOR DEPUTY PRESIDENT: Yes.

PN160

MR WINTER: And that makes it clear that we're not there to seek to perform traditional trades work. If anything this application and maybe some of the variations to the higher levels, such as the team leader's position, will be have an impact at probably the supervisory level and some of the management type areas where our member's will be taking additional workloads if you like and taking responsibility for work that in some instances, it was traditionally performed by supervisors. That this is not designed to have for production workers' to perform trades tasks.

PN161

We would - in relation to one of the matters you mentioned at 1.14.7 of the application, in relation to 1.15 sorry the operator level 5, we acknowledge that those operators at level four are working the support functions are unable to go any further up the classification structure. Many of those support functions cover people that work in the canteen et cetera.

PN162

THE SENIOR DEPUTY PRESIDENT: Do you agree then that the wording that I proposed to be added would be satisfactory?

PN163

MR WINTER: Yes we do your Honour. Unless you have any further questions we would support the application to vary the award as outlined and seek the variation as today's date.

PN164

THE SENIOR DEPUTY PRESIDENT: And do you agree with what's been put by Mr Tilling that it doesn't disturb any internal relativities?

PN165

MR WINTER: That's correct.

PN166

THE SENIOR DEPUTY PRESIDENT: Thank you. Ms Chew.

PN167

MS CHEW: Thank you your Honour. We can confirm that the contents of exhibit Alcoa4 the revised clause, for clause 1.4 that issue has certainly been brought to the notice of the AMWU delegates and I have instructions that they are certainly agreeable with the amendment. We raise no issue and acknowledge that that represents the nature of the arrangements at the site. Further to that we also - we've heard the company's statement in relation to this variation of the award not affecting the type of work that our members - that the union covers and so do not oppose the variation to the award.

PN168

THE SENIOR DEPUTY PRESIDENT: Do you agree about the proposed changes to the introduction of the new level process control is it, will not disturb existing relativities?

PN169

MS CHEW: I might just have five seconds your Honour.

PN170

THE SENIOR DEPUTY PRESIDENT: Yes.

PN171

MS CHEW: Yes that is correct your Honour.

PN172

THE SENIOR DEPUTY PRESIDENT: Thank you Ms Chew did you want to say anything else?

PN173

MS CHEW: No that's all.

PN174

THE SENIOR DEPUTY PRESIDENT: Yes Mr Murphy?

PN175

MR MURPHY: Thank you your Honour. The CEPU notes the variation of the draft order obtained with exhibit Alcoa4, on that basis the variation sought to the award, we wouldn't oppose the award being made today. In relation to internal relativities to the ….. of my knowledge of operation your Honour, there's no disturbance in internal relativities on the site if the Commission pleases.

PN176

THE SENIOR DEPUTY PRESIDENT: Yes. What do you say about external relativities?

PN177

MR MURPHY: Your Honour, I indicated on the basis that I had limited knowledge of the site and my advice is that there is no issue to prevent the 113 application being granted.

PN178

THE SENIOR DEPUTY PRESIDENT: Very well. Thank you Mr Murphy. Did you want to say anything in reply Mr Tilling?

PN179

MR TILLING: No thank you your Honour.

PN180

THE SENIOR DEPUTY PRESIDENT: Basis of the assurances given by the parties that the proposed change in the classification structure to introduce the process controllers classification will not cause any internal or external changes to the relativities, and being satisfied that I am of that, the changes in the nature of the work of that position constitutes such a significant net edition to work requirements that warrants a creation of new classification upgrading to a higher classification.

PN181

I'm satisfied that the application generally meets the requirements of the principles and on that basis we'll make an order substantially in the terms of the draft order with the incorporation of the amendment reflected in exhibit Alcoa4 and by the addition of the words "all operators other than those engaged in support functions" in clause 1.15.1.

PN182

I should say that the spelling throughout the draft order reflects the American style of spelling with words like - or all words ending in ize, using a z, they'll be changed to reflect plain English ending ise.

PN183

MR TILLING: And again rule out word for windows.

PN184

THE SENIOR DEPUTY PRESIDENT: Anything else?

PN185

MR TILLING: Just one further comment, you mentioned also change to the reference to smelter operator, we will change reference from smelter operator to operator.

PN186

THE SENIOR DEPUTY PRESIDENT: Yes sorry. To smelter operator.

PN187

MR TILLING: To operator 2.

PN188

THE SENIOR DEPUTY PRESIDENT: Sorry what are you up - the heading is smelter operator or you just want them changed to operator?

PN189

MR TILLING: I think that in light of the point that you made your Honour, that there may be some consequential references to operator elsewhere in the document I think we use the term operator throughout the whole award.

PN190

THE SENIOR DEPUTY PRESIDENT: Do you agree with that Mr Winter?

PN191

MR WINTER: We're supportive of that.

PN192

THE SENIOR DEPUTY PRESIDENT: All right I'll make the order - again given it only affects the parties to the award, there are no other parties apart from the unions that are present here today and the companies, is that right?

PN193

MR TILLING: The only other union that's a party to the award is the CFMEU who cover six or so bricklayers who were properly notified on 11 November of the proceedings, and are provided with all documentation.

PN194

THE SENIOR DEPUTY PRESIDENT: Well do you see any reason why I shouldn't make order to come into affect on or from the first pay period to commence on or after today?

PN195

MR TILLING: No your Honour.

PN196

THE SENIOR DEPUTY PRESIDENT: I'll make it - what's the date tomorrow the 20th is it?

PN197

MR TILLING: The 21st.

PN198

THE SENIOR DEPUTY PRESIDENT: I'll make it on or after today's date the 20th to remain in force for a period of 12 months. The matter is adjourned.

<ADJOURNED INDEFINITELY [11.02AM]

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #ALCOA1 TABLE THAT SETS OUT THE NUMBER OF EMPLOYEES UNDER EACH UNION GROUP PN13
EXHIBIT #ALCOA2 CURRENT AND NEW CLASSIFICATION AND PAY STRUCTURE PN31
EXHIBIT #ALCOA3 NEW TRAINING REQUIREMENTS FOR EQUIVALENT COMPETENCIES. PN54
EXHIBIT #ALCOA4 VARIATION OF DRAFT ORDER PN93