C2004/4305, Transcript of Proceedings [2006] AIRCTrans 588 (10 April 2006)

TRANSCRIPT OF PROCEEDINGS

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Workplace Relations Act 1996 14642-1

COMMISSIONER WHELAN

C2004/4305 C2006/2286

TEXTILE, CLOTHING AND FOOTWEAR UNION OF AUSTRALIA
AND
HUYCK AUSTRALIA PTY LIMITED
s.99 - Notification of an industrial dispute
(C2004/4305)

TEXTILE, CLOTHING AND FOOTWEAR UNION OF AUSTRALIA
AND
HUYCK AUSTRALIA PTY LIMITED
s.170LW - Application for settlement of dispute (certified agreement)
(C2006/2286)

MELBOURNE

2.09PM, FRIDAY, 24 MARCH 2006

Continued from 23/11/2005

PN52

THE COMMISSIONER: Good afternoon everyone. I think I have got the appearances in relation to this matter in the section 99. Just formally for the record can I get them for the section 170LW?

PN53

MS V WILES: I appear on behalf of the TCFUA and with me at the bar table I have MS J KRUSCHEL who is the Assistant Secretary of the Union and MR B CORKER who is the delegate, or one of the delegates for the site.

PN54

MR A DALTON: I am from the Australian Industry Group and with me today is MR M PRAETZEL from the company.

PN55

THE COMMISSIONER: Thanks. Thanks Mr Dalton. This matter was originally listed obviously for a report back in relation to an ongoing matter. I think when I look at it, it was first lodged in June 2004. I think for the purposes of ensuring that the matter didn't lapse entirely on Monday, the union has also lodged a section 170LW which in substance I think it agrees - deals with exactly the same matter. So at this stage I think in relation to the LW, all I need to say is that I understand the intention of the union is that the LW should take over from the 99 on Monday and that the matter should otherwise continue. Is that correct?

PN56

MS WILES: That's correct Commissioner.

PN57

THE COMMISSIONER: Okay then. All right. All right then, Ms Wiles, I think you're first off the block in relation to the report back.

PN58

MS WILES: Thank you. Commissioner, you will recall that the section 99 originally related to 12 employees in a joining room. Ten of those worked in the joining room and two were involved in what's called measure and cut work. In terms of the 2004 certified agreement, that did obligate the parties to meet and try and reach agreement on a proposed Huyck classification structure and obviously in terms of the joining room, that would apply to more than just the 12 employees who are the subject of the section 99 dispute.

PN59

THE COMMISSIONER: Yes.

PN60

MS WILES: When the matter was before you for direction on 23 November last year, you directed the parties to hold discussions with a view to try and reach agreement about a proposed structure. I can report that the parties met on 9 December 2005, 25 January 2006, 6 February 2006 and 15 March 2006 and from the union's perspective, the discussions have been held in good faith by both parties and they have been very productive in terms of progressing towards a proposed structure.

PN61

We should say that final agreement has not yet been reached between the parties but significant progress has been made through those negotiations. Specifically, we do have a draft document developed by Huyck in terms of a joining structure. It's not the final document. but it has been distributed to employees and feedback has been sought from employees about that structure. The company has also added dollar figures to each of the levels in that structure. I should indicate that the proposed structure is premised on six levels being from level A to level F.

PN62

Through the negotiations, the company has also conducted a preliminary assessment of where it sees each individual employee in joining in terms of at which level they believe the employee would commence at, under a new structure. It's anticipated that, with the new structure that there would be a six month trial period to see how that structure pans out in practise. There has also been extensive discussions about the issue of training, in particular the amount of training that would be available to employees during the transition period, how it would be delivered and who, and in what order and I must say that that is an issue of significant importance to our members.

PN63

They believe that, unless those things or that training is transparent and properly structured that the structure will not be as good as it otherwise could be. The union, in conjunction with the company has also drafted a transition protocol outlining key aspects of the proposed structure, the six months trial and training and assessment issues resulting from the structure. After the last meeting on 15 March, it became apparent that that transition protocol will need to be further amended before there is final agreement about its terms. In terms of progress, there are some key issues that still need to be resolved.

PN64

Those issues include the proposed structure as it applies to the measure and cut employees. Finalising comprehensive agreement protocol in relation to training which I mentioned just now. Higher duties allowance, pay rates for the level F structure and importantly issues around red circling, and by that we mean that as part of the structure, the company is proposing incorporating a range of allowances into the rates of pay under the structure and there is some concern by employees about that.

PN65

In terms of the joining room, we think that probably impacts on two to three people but more broadly across the plant it would impact on a significant number of employees, well significant in the sense that probably at least eight to 10 employees across the plant, if not more. In terms of the future progress of the matter, it is the union's submission that the parties be allowed to continue their negotiations with a view to finalising the structure and as I said, those key issues need to be resolved before that, - the final proposal can be put for the members for a vote.

PN66

In those circumstances we would be seeking that the matters be adjourned and be relisted for another report back, say at the end of April, subject to any submissions the company may put to you today. If the Commission pleases.

PN67

THE COMMISSIONER: All right. Thanks, Ms Wiles. Mr Dalton?

PN68

MR DALTON: Yes. Thank you Commissioner. Look I would concur very much with the submissions of my colleague from the TCFUA. The company is also very satisfied with the progress that has been made and the good faith that has been shown by the parties in progressing this matter. Yes there are a few matters that still need to be finalised but they believe given appropriate time that that will be able to be satisfactorily dealt with.

PN69

So we would concur with the union's submissions this matter be adjourned at this point in time to continue those discussions and hopefully we won't need to put anything to the Commissioner for a decision. It might all be worked out for us. If the Commission pleases.

PN70

THE COMMISSIONER: That would be fabulous, Mr Dalton.

PN71

MS WILES: Sorry Commissioner, I should add one thing. That if agreement can be reached, it was anticipated by the parties that we would put a final document to the Commission for the Commission file that sets out the basis of the agreement.

PN72

THE COMMISSIONER: Yes.

PN73

MS WILES: And that it would allow the parties to come back to the Commission if and when there was any issues arising from that agreement.

PN74

THE COMMISSIONER: Okay. Well I tell you what. It seems to me that the discussions have been very fruitful and that it looks as though you are getting close to having achieved the objective of developing a structure that is suitable for the company and for the employees. I think that it is a good idea if those discussions continue. Rather than set down a date for report back at the moment, I think what I might ask the parties to do, is to contact me at the end of April and let me know if you would like to have a conference and I will organise a time then, because it might be that you think you need some assistance or it might be that you think if you are given a bit more time that you are actually going to sort it out yourselves.

PN75

So, if I perhaps ask the TCFUA to contact me in the last week of April, just to let me know where it's at and we'll then list it if you want me to or I will just leave things open until you notify me one way or the other what you wish to do. All right. Well thank you for that. I will formally adjourn this matter and then I wish to speak to you about something else.

<ADJOURNED INDEFINITELY [2.19PM]