AG2010/14623, Transcript of Proceedings [2010] FWATrans 1843 (22 December 2010)

TRANSCRIPT OF PROCEEDINGS

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Fair Work Act 2009 34157-1

DEPUTY PRESIDENT SAMS

AG2010/14623

s.185 - Application for approval of a single-enterprise agreement

Application by Fluid Power (NT) Pty Ltd
(AG2010/14623)





Sydney

4.00PM, UESDAY, 7 DECEMBER 2010

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

PN1

THE DEPUTY PRESIDENT: Yes, Ms Ross, are you there?

PN2

MS J. ROSS: Yes, I am.

PN3

THE DEPUTY PRESIDENT: Katie Sterk is it? The employee representative there?

PN4

MS K. STERK: Yes, I'm here.

PN5

THE DEPUTY PRESIDENT: Yes, thank you. Could you indicate to Fair Work Australia why I should approve this enterprise agreement?

PN6

MS ROSS: Because it's much better than the award the employees would be working under and in fact we couldn’t get anyone to work for us if they worked under the award.

PN7

THE DEPUTY PRESIDENT: That's not exactly what I wanted you to say but that will do.

PN8

MS ROSS: I think it's actually fairer for our employees, we pay them much better than the award stipulates and the agreement is something that our employees would like.

PN9

THE DEPUTY PRESIDENT: I was really going to the relevant sections of the Act which you say have been complied with by the company both in processing of the agreement and the terms of the agreement itself. Perhaps I can do that by way of questioning rather than asking you the reverse. You identify there is one less beneficial term relating to the tool allowance, is that right?

PN10

MS ROSS: That's correct.

PN11

THE DEPUTY PRESIDENT: In all other respects there are higher rates of pay for employees working away from the company's workshops.

PN12

MS ROSS: Yes.

PN13

THE DEPUTY PRESIDENT: You also pay a cash payment of 75 per cent of untaken personal leave on termination.

PN14

MS ROSS: That's correct.

PN15

THE DEPUTY PRESIDENT: I will ask Ms Sterk that. Did you receive the notice of you representational rights around 28 July, did you Ms Sterk? Do you remember? Are you there?

PN16

MR STERK: I did, yes, yes.

PN17

THE DEPUTY PRESIDENT: What was the process by which you were asked to approve the agreement? Are you there?

PN18

MS STERK: I am. I said we all had to take a vote on it.

PN19

THE DEPUTY PRESIDENT: How was that done? So you had a show of hands in the workshop or the lunch room?

PN20

MS STERK: Yes.

PN21

THE DEPUTY PRESIDENT: There were 18 employees present?

PN22

MS STERK: (Indistinct) employees were present.

PN23

THE DEPUTY PRESIDENT: Everyone voted in support of the agreement? Yes? Is that right or is this phone cutting out? Hello?

PN24

MS STERK: Hello. (Indistinct) said yes.

PN25

THE DEPUTY PRESIDENT: Back to you, Ms Ross. I note that you have made a comparator to the award which seems to indicate a very significant difference in the rates.

PN26

MS ROSS: It was attached to (indistinct) yes, that's correct.

PN27

THE DEPUTY PRESIDENT: If you looked at the agreement's terms for a tradesman, and I take it that's working off site, yes?

PN28

MS ROSS: That's correct.

PN29

THE DEPUTY PRESIDENT: He would get $3,615 gross as compared to the award which includes overtime rates and travel of $1,854.

PN30

MS ROSS: Yes, that's correct.

PN31

THE DEPUTY PRESIDENT: That's a significant difference.

PN32

MS ROSS: It certainly is, our employees work very hard and we want to make sure that they get paid what they're worth.

PN33

THE DEPUTY PRESIDENT: Part of the arrangement, I'm looking at attachment A now refers to SS rate and SB rate which these are salary rates are they?

PN34

MS ROSS: These are the site rates they get paid when - - -

PN35

THE DEPUTY PRESIDENT: They're that shut downs.

PN36

MS ROSS: The shut downs. One is if they have been given plenty of notification and the other one is if it's an emergency.

PN37

THE DEPUTY PRESIDENT: Does this happen very often?

PN38

MS ROSS: Yes, it happens quite a bit, all around Australia. In fact some of them are going international in the next couple of weeks.

PN39

THE DEPUTY PRESIDENT: Really?

PN40

MS ROSS: Yes, from a little business in Alice Springs we service the whole of Australia in the mining industry and now doing repairs at mine work in the Solomon Islands and in Papua New Guinea.

PN41

THE DEPUTY PRESIDENT: With 18 employees, 19?

PN42

MS ROSS: Yes.

PN43

THE DEPUTY PRESIDENT: That's very good, and it's a specialist hydraulic systems operation is it?

PN44

MS ROSS: Mainly on site repair work with lasers, (indistinct).

PN45

THE DEPUTY PRESIDENT: Very well. Ms Sterk, do you confirm the employees support the making of the agreement?

PN46

MS STERK: Yes, I do, yes thank you.

PN47

THE DEPUTY PRESIDENT: Having reviewed the terms of the approval process documentation - there was just one further question. The adjustment of rates is to occur based on CPI increases on 1 July each year, is that right?

PN48

MS ROSS: That's correct.

PN49

THE DEPUTY PRESIDENT: That applies to all the rates?

PN50

MS ROSS: Yes, it does.

PN51

THE DEPUTY PRESIDENT: Having heard the submissions of the parties and upon reviewing the terms of the agreement and the approval process documentation I am satisfied that all of the legislative requirements for approval of this enterprise agreement have been met. Accordingly I shall approve an enterprise agreement to be known as the Fluid Power Northern Territory Enterprise Agreement 2010 and pursuant to section 54 of the Act the agreement shall operate seven days hence, being 21 December 2010 and shall have a nominal expiry date of 20 December 2014. I note the assurances given by Ms Ross on behalf of the company that the agreement terms when aggregated together more than satisfy the better off overall test as required by the legislation and in that respect upon a comparison document which has been provided I am satisfied that that is the case. I will issue a short decision in due course, Ms Ross, which will be provided to you but it will merely confirm that the agreement has been approved. Are these rates currently being paid or will they be paid on the approval of the agreement?

PN52

MS ROSS: These rates are currently being paid.

PN53

THE DEPUTY PRESIDENT: Very well, thank you. How long has that been so?

PN54

MS ROSS: For about the last 12 months.

PN55

THE DEPUTY PRESIDENT: Really?

PN56

MS ROSS: Yes.

PN57

THE DEPUTY PRESIDENT: But you haven't sought to have an agreement until now?

PN58

MS ROSS: We tried this time last year and the Commissioner who heard it really didn't understand what it's like to live and work in a regional area and it has just taken us this long to get these guys back together to change some of the wording in the agreement and to vote on it. As I said, they're always travelling, it's been difficult to get them all together at the same time.

PN59

THE DEPUTY PRESIDENT: So was the previous agreement rejected by the Tribunal was it?

PN60

MS ROSS: It was, our second attempt.

PN61

THE DEPUTY PRESIDENT: Thank you. I have indicated my approval for the agreement so you can take it that that has been done.

PN62

MS ROSS: Thank you very much.

<ADJOURNED INDEFINITELY [4.09PM]