AG2004/8267, Transcript of Proceedings [2005] AIRCTrans 402 (17 February 2005)

1800 534 258

TRANSCRIPT OF PROCEEDINGS

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Workplace Relations Act 1996 10379

SENIOR DEPUTY PRESIDENT O'CALLAGHAN

AG2004/8267

s.170MG - application to terminate agreement (valid majority)

APPLICATION BY SYSTEM FORMWORK PTY LTD
(AG2004/8267)
System Formwork Pty Ltd Enterprise Agreement 2002

ADELAIDE

11.40AM, MONDAY, 07 FEBRUARY 2005

PN1

MR M J HOWARD: I appear for System Formwork Pty Ltd.

PN2

THE SENIOR DEPUTY PRESIDENT: Thank you, Mr Howard. Mr Howard, we are in your hands in this matter.

PN3

MR HOWARD: If it pleases the Commission, this is an application pursuant to section 170MG of the Workplace Relations Act 1996, an application by
System Formwork Pty Ltd to terminate what was the System Formwork Pty Ltd Enterprise Agreement 2002, matter AG2002/616. The application has been made, your Honour. The statutory declaration has been filed by Herman Erich, the Managing Director of System Formwork Pty Ltd and also there has been the statement of employer and employees seeking approval of the termination of a certified agreement. Those documents were signed on 21 December and were filed on 22 December.

PN4

The major reason seeking the termination of the System Formwork Pty Ltd enterprise agreement 2002 is that the company is a formwork company and they have lodged an application for a new enterprise agreement, which is a matter directly following this matter. The reason that they sought to terminate the 2002 and make a new agreement was that in the area of employment within the formwork sector of the building and construction industry, a number of the formwork companies in 2003 had increased a number of the benefits applicable to employees working in the formwork industry.

PN5

System Formwork Pty Ltd were finding it difficult to hire people. Their 2002 enterprise agreement - the conditions were well below those that were being experienced in that sector of the industry. By agreement with the employees, and to retain the employees that they already had they sought to make a new agreement and that agreement has been made with the Construction, Forestry, Mining and Energy Union.

PN6

The major differences were they increased the employer contributions to the redundancy fund from $60 to $65, they introduced sick and accident income maintenance insurance which has become very prevalent in the industry, they increased the rates of pay significantly, they increased the consolidated disability allowance. One of the major factors was the introduction of the 36 hour week within the formwork sector of the industry. What the company had agreed to was to implement the additional leisure days off from 1 July 2004 and then introduce a 36 hour week from 1 January 2006. They also increased the travelling allowance so that the rates were more commensurate with what was being paid within the industry.

PN7

THE SENIOR DEPUTY PRESIDENT: You mean they better fitted the pattern bargaining arrangement?

PN8

MR HOWARD: They better fitted the retention of employees and the hiring of new employees, your Honour.

PN9

THE SENIOR DEPUTY PRESIDENT: Thank you.

PN10

MR HOWARD: If the Commission pleases.

PN11

THE SENIOR DEPUTY PRESIDENT: Mr Howard, can I take it that the five employees' signatures contained on the statement of employer and employees represent the only five employees?

PN12

MR HOWARD: They represent a valid majority of employees, your Honour. There was a vote taken. There was eight employees involved. The vote was that they would all agree to the termination of the certified agreement. What happened was five were working in the close proximity and the other three were working a fair way down south. As there was a valid majority, could sign the document they did so because they also wanted to lodge the application for the new enterprise agreement.

PN13

THE SENIOR DEPUTY PRESIDENT: I see. Thank you. On the basis of that information I am satisfied that I have before me an application which is consistent with the requirements of section 170MG(1), that the information provided to me satisfies that a valid majority of the employees whose employment is subject to the agreement genuinely approve of its termination.

PN14

Accordingly, in accordance with section 170MG(4), I approve the termination of this particular agreement with effect from today. An order to that effect will be sent out to the parties in the near future.

PN15

MR HOWARD: Thank you, your Honour.

<ADJOURNED ACCORDINGLY [11.45AM]