C2006/2840, Transcript of Proceedings [2007] AIRCTrans 152 (28 March 2007)

TRANSCRIPT OF PROCEEDINGS

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Workplace Relations Act 1996 16684-1

COMMISSIONER SIMMONDS

C2006/2840

AUTOMOTIVE, FOOD, METALS, ENGINEERING, PRINTING AND KINDRED INDUSTRIES UNION
AND
AMCOR FLEXIBLES AUSTRALIA
s.170LW -prereform Act - Appl’n for settlement of dispute (certified agreement)
(C2006/2840)

MELBOURNE

10.22AM, THURSDAY, 27 JULY 2006

PN1

MS K WILD: I appear on behalf of the AMWU with MR J BELLERBY, and we also have members from the site here today.

PN2

MR A FARR: I appear on behalf of the company in this matter.

PN3

THE COMMISSIONER: No, you don't, Mr Farr, you seek leave to appear.

PN4

MR FARR: I do seek leave to appear, Commissioner. And today in appearance with me, Commissioner, is MR J BOURKE, MS J STAVROU and MR D TREWIN.

PN5

THE COMMISSIONER: Yes, thanks. Any objection, Ms Wild?

PN6

MS WILD: Commissioner, not at this stage. If the matter was to go - - -

PN7

THE COMMISSIONER: No, you either object or you don't object.

PN8

MS WILD: Okay, I won't object, thank you.

PN9

THE COMMISSIONER: In that case leave is granted.

PN10

MR FARR: Thank you, Commissioner.

PN11

THE COMMISSIONER: Yes, Ms Wild?

PN12

MS WILD: Thanks, Commissioner. Commissioner, today we're here to seek some assistance from the Commission in relation to a dispute about selection of redundancies at Amcor. There are 15 redundancies in total that have been called for, nine from printing and six from extrusion, and what's happened is that people have been asked to put in voluntary redundancies by 24 July, so that's been done. However, we've got some concerns around that. There have been a number of discussions with Jamie and also Jim Reid, the secretary of the printing division and the company in relation to this process, and we'd ask that the voluntary redundancies not close on 24 July because there's still issues in relation to what shift the people that don't take a redundancy will be working in the extrusion plant, and we say that when the company - we could work out the shift that people would be working on that would make a difference to people that might volunteer or might not volunteer. So the uncertainty of what remains is a problem.

PN13

And we've also been told that whilst there are volunteers the company is not going to accept all of these, and we have some concerns about that. We're not here disputing the company's right to make people redundant, however, we are saying that the process doesn't help mitigate all the adverse effects on some of the employees, on some of our members, and that's why we're here today. We'd seek some further discussions with the Commission's assistance to see if we might be able to work something out.

PN14

For example we've been advised that some machines are going to close down altogether, and we'd say for example people that are working on those machines should have a right to a voluntary redundancy first. That's just an example, Commissioner. We're concerned that the process isn't necessarily going to be totally see through, and we want to make sure that no one is targeted in this process. We don't feel like we're asking for anything unreasonable, just asking for voluntary redundancies to be open to the other departments as to widen the net and to mitigate.

PN15

So we believe there would be enough volunteers and there wouldn't need to be any forced redundancies and that the company could still maintain its skill mix if we could sit down and have some further discussions. So that's why we're here today, Commissioner.

PN16

THE COMMISSIONER: Yes, okay. Mr Farr?

PN17

MR FARR: Commissioner, if I might just raise one significant issue from the company's perspective. As my friend has indicated, that there was a process when VRs closed on 24 July, and that not all the VRs were able to be accepted, and that will mean that there will be some compulsory redundancies. There was a delegation that came to senior management last evening and asked that we put a stop to where the process was at pending the Commission hearing this morning, and quite a significant plea to the company not to advise employees about compulsory redundancy last evening.

PN18

And there was a threat made by employees that if we didn't stop the process then all the machines would be stopped and all the employees would attend the Commission here this morning. The company gave a commitment last evening that it would put a stop to the process as at 6 pm last evening pending coming to see you this morning, Commissioner, but that was only on the basis that the machines would continue to run throughout the evening and would continue to run this morning, and that only two people, a representative from the printing department and a representative from the extrusion department, would be in attendance here at the Commission this morning.

PN19

Now, that commitment has not been kept by the union nor by its members, and there are a number of people in the Commission at this moment who are taking unlawful industrial action. There are people who left shift at 2 am this morning as well and did not complete their shift. Commissioner, the company is very much of a mind to call its part to these proceedings at an end today on the basis that the union has failed to keep up its part. The company is going to have obligations pursuant to the Act in relation to deduction of wages for unlawful industrial action and needs to consider its position, whether it should be lodging more formal proceedings to ensure that employees attend in accordance with their contracts of employment.

PN20

I don't want that significance lost in this, Commissioner, that the company is here under extreme protest in relation to the behaviours. However, Commissioner, we would like to put on the record the chronology of the consultation that has taken place between the company and the union in relation to these matters, and if I could hand to the Commissioner a chronology of that consultation.

EXHIBIT #F1 CHRONOLOGY OF CONSULTATION

PN21

MR FARR: Thank you, Commissioner. Although it is detailed I think it is worthy of taking the Commission through it by way of background before the matter is adjourned into conference. And that is, over a significant period of months the company has been communicating with its employees to update them on where the business is at, and that there's been declining volumes of work, and that has been taking place since October through to July.

PN22

On 6 July we had confirmation from two customers of the ceasing of a significant volume of work, and an action plan needed to be put into place and formalised in relation to that, and a recommendation was made to divisional management on
7 July. And at that point in time, Commissioner, the company took the effort of giving Mr Reid a call to advise him that there was a confidential matter that it needed to discuss with him to get the consultation process going.

PN23

On 10 July senior management has approved the restructuring with a requirement for the site to retain its critical business skills. At that same time there was conversations again with Mr Reid who happened to be on leave on that particular day, and agreement to speak again on 11 July. And at that point in time after some conversations there was actually a meeting held between the senior site management and human resources assistants with Mr Reid, and he was taken through the presentation of what the advice was going to be to employees, and there was a commitment given to the union that it would consult, the company would consult with the union more formally on 14 July after all the employees had been advised of the restructuring process.

PN24

And that had to take a number of days, Commissioner, just because of the change in shift situation, and that took place over a period of three days. So they were given, employees were given a presentation, there was a back up handout in relation to that and organisational announcements were also put on the noticeboard. So on the 14th a meeting then of a restructuring steering committee which was attended by Mr Reid and Mr Bellerby, and the union raised a number of issues and requested company response by 19 July, and minutes were taken of that particular meeting.

PN25

Subsequently there was a shop floor meeting and a further demand came back that all employees on the PF7, a particular printing machine, should be given an automatic redundancy. At this time, Commissioner, part of the restructuring is also a restructuring of the extrusion rosters to ensure that there is continuous running through breaks to achieve the productivity that is absolutely necessary for the business going forward. So on Monday, 17 July there was a meeting in relation to that extrusion roster and regarding the issues that had been raised through the consultation process to date.

PN26

So there was ongoing negotiations, discussions between various representatives of the company and the union over the next couple of days till 19 July, where there was a further consultation session. Mr Bellerby was there, feedback sought regarding the selection process. Employees were then advised of the key dates in terms of applying for a voluntary redundancy and the remainder of the redundancy process, and at that point employees presented a draft proposal for the roster for the extrusion department. 21 July, a further meeting with the steering committee and the company presented its response to the roster, and the company agreed at that point to defer the commencement of any new roster pending further consultation.

PN27

So there's been no formal notification of any roster change to date, Commissioner. 24th, the VR applications closed, and as at yesterday the employees who were on shift were being advised of whether they had been successful in that VR process, and it was the intention then to cover off employees on that shift yesterday in relation to whether or not they had been selected for CR. But that stopped as a result of the commitment given by the union.

PN28

Commissioner, where the company has been able to be flexible in relation to this process it has been, but, Commissioner, this has an overriding business imperative, and that is the need to maintain the appropriate skills that are required to run the business in the future. Just more formally in terms of just by way of background on the record in relation to the redundancy process. The redundancy process has sought to adopt a fair and consistent selection process. And, Commissioner, I might just by way of background provide you a copy of the selection criteria that's been used in this process that was shared with the union through the consultation process.

EXHIBIT #F2 SELECTION CRITERIA

PN29

MR FARR: I won't take you through that verbatim, Commissioner, but you can see that there's been a significant amount of thought given to the appropriate knowledge, skills and attributes that are necessary to run the business into the future. Employees through the process have been told again and again that the company does need to obtain the appropriate skills to maintain this competitive business going forward, and as such there could be no guarantee in relation to whether a voluntary redundancy application would be accepted.

PN30

The process has been clearly outlined to the union, we've accepted their feedback in relation to that as well as, and I've mentioned the selection criteria. I think importantly, Commissioner, although there has been some changes to the unfair dismissal laws the company has still maintained an appeal process throughout the redundancy process so that employees who were selected for or are selected for compulsory redundancy have the opportunity of lodging an appeal against that selection. With the intention of alerting employees last night, that closes on Monday the 31st, and then that appeal would be dealt with on Tuesday 1 August.

PN31

Again it's to provide an opportunity for fairness and to avoid the issues that my friend raised. We don't want to see anyone targeted in this. So that that certainly avoids any misunderstanding about that. Commissioner, throughout the discussions with the union the company has also said that those employees who have had their VR applications turned down may also access that appeal process and have that decision reviewed in the same way that we would for anybody selected for a compulsory redundancy.

PN32

So in many respects you would be able to state that the decisions in relation to VR, the nos, a preliminary decision subject to the right of appeal, and if the CRs had have been announced last night then they would be determined as preliminary decisions pending the outcome of that process as well. So we have only advised a small portion of those who had been successful in their VR application, and there are a number of other people to be advised in relation to whether they were successful or not at this stage.

PN33

I should note, Commissioner, there has already been one extension to the VR process closing date. Originally that was planned around Thursday 20 July, but after consultation that was extended out until the 24th, Monday the 24th. And so we have taken on board everything that the union has said. Now, we're not always in agreement with them, but we've certainly sought to accept as much as we can in this process where we can be flexible. So, Commissioner, that's in terms of the voluntary process.

PN34

We say it's a robust, it's a fair process, it is actually more than what our obligations are. It's also important to note, Commissioner, that the enterprise agreement is silent on the redundancy process. The enterprise agreement is also silent on what is the pool of employees to be selected from in redundancy. And essentially we're saying there are redundancies in the printing department and we will be selecting from the printing department in relation to those redundancies. There are redundancies in the extrusion department and we will be selecting employees out of the extrusion department in relation to that, and under no circumstances, no circumstances, Commissioner, will any other part of the business be considered in relation to this process.

PN35

In terms of the roster, Commissioner, it's not the issue of dispute that the union has lodged today, but just by way of background, we are trying to reach agreement with the employees in relation to a 12 hour, five day roster, which is a change from a 12 hour, six day roster as is presently in place in the extrusion department. And it would appear that the main sticking point at the moment is not the concept of 12 hours per se, but is that the company's obligation within the roster is that there be continuous running through the shift cycle. And that means that there will be staggered meal breaks and staggered tea breaks.

PN36

Again, Commissioner, the company says that that is not negotiable. It's consistent with our rights under the award, which says that we can nominate the hours of work for an eight hour day, we accept, but also that we can roster the meal breaks as well consistent with clause 6.7.8 of the underpinning award. In relation to the roster I guess it's just fair to say, Commissioner, that it would be the company's intention to continue to meet and consult with the extrusion department to take that through to finality. But as my friend has raised it, and it is an important point, I thought an update on that was also of use to you, Commissioner.

PN37

Commissioner, I guess finally, because of those issues in relation to the absence of these processes in the enterprise agreement we'd just reserve our position in relation to how we would respond should this matter proceed out of conciliation and into arbitration. Unless we can be of any further assistance, Commissioner, we're agreeable to going into conference.

PN38

THE COMMISSIONER: What sort of numbers are we talking about, Mr Farr?

PN39

MR FARR: We are talking about 15 redundancies, Commissioner. We're talking about nine in the printing department and six in the extrusion department, and that's out of an approximate workforce of 100,Commissioner.

PN40

THE COMMISSIONER: But how many in printing and how many in extrusion?

PN41

MR FARR: There's about 35 in the printing department, Commissioner, and approximately 24 in extrusion.

PN42

THE COMMISSIONER: So we're talking about a quarter?

PN43

MR FARR: Yes, that's right, Commissioner. And it's about matching work capacity with the volume of work.

PN44

THE COMMISSIONER: Yes, thanks.

PN45

MR FARR: Thank you, Commissioner.

PN46

THE COMMISSIONER: Ms Wild, do you want to respond or do you want to go into conference?

PN47

MS WILD: We're happy to go into conference at this stage. I mean, it may be actually - sorry, I should just say there was something that Jamie raised with me in relation to the shift matter, and that is that the discussion over the roster is that what would happen if it changed from the five to the six - from the six to the five I should say, five days, is that our members would be losing $200 a week. They would be in a position where the hours of work would change and their wages would be reduced by $200 a week.

PN48

THE COMMISSIONER: Yes, okay, I understand the issue. The proceedings are adjourned into conference.

<NO FURTHER PROCEEDINGS RECORDED

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #F1 CHRONOLOGY OF CONSULTATION PN20
EXHIBIT #F2 SELECTION CRITERIA PN28