WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION. PARTIES PIONEER CONSTRUCTION MATERIALS PTY LTD, APPLICANT v. TRANSPORT WORKERS’ UNION OF AUSTRALIA, INDUSTRIAL UNION OF WORKERS, WESTERN AUSTRALIAN BRANCH, RESPONDENT CORAM CHIEF COMMISSIONER W S COLEMAN DELIVERED FRIDAY 8 DECEMBER 2000 FILE NO AG 260 OF 2000 CITATION NO. 2000 WAIRC 01530 _______________________________________________________________________________ Result Agreement registered Representation Applicant Mr J Uphill Respondent Mr G Ferguson _______________________________________________________________________________ Order. HAVING heard Mr J Uphill on behalf of the Applicant and Mr G Ferguson on behalf of the Respondent and by consent the Commission, pursuant to the powers conferred on it un- der the Industrial Relations Act 1979 hereby orders— (1) THAT the Pioneer Construction Materials Pty Ltd Byford Quarry (Enterprise Bargaining) Agreement 2000 as filed in the Commission on 8 November 2000 in the terms of the following schedule be and is hereby registered as an industrial agreement. (2) THAT the Pioneer Concrete (WA) Pty Ltd Byford Quarry (Enterprise Bargaining) Agreement 1998 No AG 31 of 1999 be and is hereby cancelled. (Sgd.) W.S. COLEMAN, [L.S.] Chief Commissioner. Schedule. 1.—TITLE This Enterprise Agreement shall be referred to as the Pio- neer Construction Materials Pty Ltd Byford Quarry (Enterprise Bargaining) Agreement 2000. 2.—ARRANGEMENT 1. Title 2. Arrangement 3. Scope and Parties to this Agreement 4. Relationship to Parent Awards 5. Single Bargaining Unit 6. Aims and Objectives of the Agreement 7. Wages 8. Agreed Productivity Improvements 9. Recognition of Improvements 10. Meal allowance 11. Commitments 12. Term of Agreement 13. Dispute Resolution Procedure 14. Consultative Committee 15. Meeting Procedures 16. Redundancy 17. No further claims 18. Not to be used as a precedent 19. Signatories to the Agreement 3.—SCOPE AND PARTIES TO THIS AGREEMENT (1) This Agreement shall apply to and be binding on Pio- neer Construction Materials Pty Ltd (”the Company”) and the employees identified in clause 7 of this agreement who are engaged in or in connection with the Company’s Byford Quarry operations. Upon registration, the terms of the Agree- ment shall be binding upon an estimated six (7) employees. (2) This Agreement shall also be binding upon the Trans- port Workers’ Union of Australia, Industrial Union of Workers, Western Australian Branch (TWU). This Agreement replaces the Pioneer Concrete (WA) Pty Ltd Byford Quarry (Enterprise Bargaining) Agreement 1998 No. Ag 31 of 1999. 4.—RELATIONSHIP TO PARENT AWARDS This agreement shall be used and interpreted wholly in con- nection with the following Awards; (1) Quarry Workers Award No 13 of 1968 (2) Transport Workers (General) Award No. 10 of 1961 Where there is any inconsistency between this Agreement and the Awards, this Agreement shall prevail to the extent of any inconsistency. 5.—SINGLE BARGAINING UNIT (1) In accordance with the State Wage Decision in January 1992 (72 WAIG 191) the employees and the Company have formed a Single Bargaining Unit in respect to the Byford Quarry operation. (2) The Single Bargaining Unit will ensure that the frame- work of this Enterprise Agreement is adhered to by regularly conferring with management through the meeting of the Con- sultative Committee. (3) The Single Bargaining Unit will assist in the implemen- tation of measures that are designed to improve the efficiency and productivity of the Enterprise that have been agreed to by the parties. 6.—AIMS AND OBJECTIVES OF THE AGREEMENT (1) The purpose of entering into an Enterprise Bargaining Agreement is to increase the productivity, efficiency and flex- ibility of the Byford Quarry to ensure Pioneer Concrete remains competitive within the quarrying industry. (2) Pioneer Concrete remains committed to the continual training of all quarry personnel so that their skills base can be enhanced, and to provide an environment in which these new skills can be utilised and recognised to the satisfaction of in- dividual employees. (3) Furthermore, the Company recognises the need to im- prove occupational health and safety for all employees and is therefore committed to the development and implementation of health and safety initiatives. This Agreement provides for the participation of all employees in these initiatives in order that the quarry becomes a safer working environment. 7.—WAGES The wage rates to apply pursuant to this Agreement are as follows— Level Current Base Rate @ Base Rate Base Rate Base 1st November 12 months 12 months Rate 2000 after Base Rate after Base Rate @ 31st October @ 30th October 2001 2002 Quarry Workers Commencement 513.52 539.20 See Inflation See Inflation clause below clause below Level 1 570.58 599.11 Level 2 577.43 606.30 Leading Hand/ Driller 593.63 622.50 Note 1: Other than the meal, shift and agreed allowances specified in this Agreement, the above wage rates are inclusive of all other industry and work related allowances and special rates and provisions which would have otherwise been payable under the awards relevant to work under this Agreement. Note 3: Casuals shall be paid 20% in addition to the ordi- nary rate Agreed allowances (a) Crane—for holders of recognised Certificate of Compe- tence—$12.30/week (b) First Aid—for holders of recognised Senior 1st Aid cer- tificate—$6.35/week Classification Definitions Quarry Workers (i) Commencement—Up to one (1) months permanent employment (ii) Level 1—Greater than one (1) months employment and carry out work such as mobile plant opera- tion, assist quarry workers at higher levels and train quarry workers up to Level 1 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 165 81 W.A.I.G. (iii) Level 2—Level 1 plus recognition of skills attained. Shall include at least 2 of— Face loader operation competency Sales loader operation competency Fixed Plant competency (Including computer/PLC control operation) Train workers up to Level 2 (iv) Leading Hand—Level 2 plus leading hand respon- sibilities and/or Drill Operation competency INFLATION 1.0 The Base Rate will be increased by 5.0% from 1st No- vember 2000. 2.0 Further increases to the Base Rate will be operative from— a) 31st October 2001, reflecting the underlying rate of inflation as measured by the Perth CPI figure for the year ended 30th June 2001 (see ABS publication number 6401 at www.abs.gov.au) adjusted to exclude the impact of the GST on the CPI, which has been compensated for by tax reductions. For this purpose the ABS constant tax rate measure will be used (see ABS publication number 1350) but shall be a mini- mum in any case of 3.0%. b) 30th October 2002, reflecting the rate of inflation as measured by the Perth CPI figure for the year ended 30th June 2002 (see ABS publication number 6401 at www.abs.gov.au). 8.—AGREED PRODUCTIVITY IMPROVEMENTS (1) Electronic Funds Transfer It is agreed that all wages for all employees will be paid weekly by the electronic funds transfer into the employee’s nominated financial institution account. (2) Use of Staff Personnel (a) Staff personnel will be used to operate any plant or machinery for the purpose of optimising productiv- ity and efficiency. This will only apply in situations of employee absenteeism, up to one (1) shift, or to relieve employees during rest periods and meal breaks. (b) It is not the intention of the Company to reduce or- dinary or overtime earnings for employees, however the parties acknowledge the importance of keeping plant and machinery working within the scope of operating hours. (3) Immediate Starts a) Employees will ensure that they are on their ma- chines or at their place of work by their designated start times. b) The Company may require up to two employees to start work half an hour earlier to ensure the prepara- tions of machines and plant for a prompt start. (4) Staggered Rest Periods Meal breaks may be staggered to ensure the continued use of plant and machinery. No employee will be required to com- mence a meal break before 11.30am or after 1.30pm. (5) Annual Leave All employees will reduce total accrued annual leave enti- tlements to ten days or less by each anniversary date of this Agreement. Notwithstanding this, on the occasion of a written leave application submitted prior to 1st November in any year the total accrual of ten days may be extended. (6) Absence Through Sickness a) The parties agree that the Consultative Committee and management work together to achieve a signifi- cant reduction in absenteeism through sickness. b) A target of 8 days (per single/double sickness days) has been agreed whereby employees commit to achieving this target. c) Normal award provisions will apply in that any em- ployee will be required to produce a doctor’s certificate after having had 2 days off in a 12 month period with no certificate. Genuine sickness (e.g. broken arm) would not be included in this annual target of 8 days. (7) Occupational Health and Safety The parties to this Agreement recognise the need to con- tinue occupational health and safety of the workplace by targeting zero lost time injuries through the implementation of health and safety improvement programs.A consultative pro-active approach to health and safety initiatives shall con- tinue to the benefit of all whom work on the site and to assist in the development of work place best practices. (8) Work Distribution and Contactors The Company will offer to employees the opportunity to perform work which is ordinarily and able to be performed by Pioneer employees, before offering such work to contrac- tors. The Company will consult with delegates on site prior to the use of any contractor so that employees are aware of what the contractor is doing and what the duration is. 9.—RECOGNITION OF IMPROVEMENTS (1) For a minimum of 1% improvement on Budgeted vari- able costs a payment of1.0% of normal time earnings for the assessed period. (2) For a minimum of 20% continual improvement in NCR’s (total of quality and environmental) over the previously as- sessed period, a payment of 1.0% of normal time earnings for the assessed period. The preceding payments shall be paid to each permanent employee (not casual), on a pro rata basis of completed weeks of service within the assessed period, whom has qualified for the recognition payment by achieving at least our (4) full weeks of continuous service within the 26 week period of measure- ment. Assessed Periods July 2000—December 2000 January 2001 -June 2001 July 2001—December 2001 January 2002—June 2002 etc. Payment shall be made in the first full pay period immedi- ately after the completion of financial accounts for the assessed period ( 6 monthly) 10.—MEAL ALLOWANCE (1) All permanent employees will receive a weekly meal allowance of $42.00 in lieu of all other meal allowances, pro- viding a full week has been worked. A full week is deemed to include time off on Rostered Days Off, paid Public Holidays and certified sick leave. Upon compliance, this payment shall be paid in the follow- ing manner— a) $20.00 shall be added to the Base Rate for all per- manent full time employees and b) $22.00 shall be a lump sum payment. (2) This payment will not be made during periods of annual leave or workers compensation 11.—COMMITMENTS The Company recognises that employee contribution is es- sential to improve performance and therefore accepts those commitments by employees to work towards agreed targets as sincere and in the overall interest of increasing productiv- ity and efficiency for the collective benefit of the Company and its workforce. Furthermore, the Company maintains a commitment to multi-skilling and training so that employees can improve their skills base, develop a career within the mining industry and have greater job satisfaction. All employees agree to carry out any tasks which may or may not involve use of tools, plant and equipment, within their skills, competency or training as directed by the Com- pany. 12.—TERMS OF AGREEMENT This Agreement shall remain in force until 1 November 2003. At least three (3) months prior to 1 November 2003, the parties to this Agreement shall meet to negotiate a new Agree- ment. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 81 W.A.I.G. 166 13.—DISPUTE RESOLUTION PROCEDURE The following procedure is to be followed by the parties at Byford Quarry in connection with questions, disputes or dif- ficulties arising under this Agreement— a) The matter shall first be discussed by the employee or shop steward with his foreman or supervisor. b) If not settled, the matter shall be discussed between the accredited union representative and the other ap- propriate officer of the employer. c) If not settled, the entire dispute shall be documented, and then further discussions between the Union Sec- retary or other appropriate official of the Union, and the appropriate representative of the employer. d) The parties shall make all reasonable attempts to re- solve the questions, disputes or difficulties before referring it to the Western Australian Industrial Re- lations Commission. e) Throughout the above procedures, work shall con- tinue normally and the status quo remains, on the understanding that there is to be no other action, in- cluding strikes, work bans, nor variations to work practices. f) It is understood that reasonable time be given for each of stages (a) to (d) to be finalised. 14.—CONSULTATIVE COMMITTEE A Consultative Committee shall be established for the pur- pose of reviewing the operation of this Agreement and to assist in the implementation of measures that are designed to im- prove the efficiency and productivity of the enterprise. The Consultative Committee shall consist of representatives from the work group covered by this Agreement and relevant management personnel. 15.—MEETING PROCEDURES To ensure all employees are kept informed of progress and to maintain levels of productivity and service to our clients during negotiations of this Agreement, replacement Agree- ments and matters arising from this Agreement, the parties agreed to adopt the following procedure for conducting “Re- port Back Meetings”. A report back meeting shall mean a meeting of all, or the majority of available employees covered by this Agreement including the duly elected union delegate which is authorised by the Quarry Manager for purpose of discussing progress of the Enterprise Agreement. a) Report back meetings will usually be scheduled af- ter lunch; b) All report back meetings shall be authorised by the Quarry Manager and such authorisation shall not be unreasonably withheld; c) The duration of the meeting will be determined by the Quarry Manager before the meeting is convened. Any subsequent extension may be approved by the Quarry Manager before the authorised time of the initial meeting expires. d) An employee who fails to return to work within 15 minutes of any authorised report back meeting will not be paid beyond the authorised duration. 16.—REDUNDANCY 16.1 Definitions 16.1.1 “Redundancy” means an employment situation arising a) Where the work available for an employee is expected to cease as a consequence of— i) the application of technological change ii) rationalisation of the Company’s ex- isting operations iii) re-organisation, restructure or merger of the Company iv) the requirements of the Company for employees to carry out work of a par- ticular kind having ceased or expected to cease v) the Company ceasing, modify or in- tending to cease or modify any of its business but b) does not include the situation where, as a con- sequence of a transfer of business of Pioneer Construction Materials Pty Ltd to another company, an employee has accepted a con- tract of employment on substantially the same terms as the existing contract and providing for continuity of service for determination of future entitlements. 16.1.2 “Retrenchment”—means the termination of em- ployment by the Company of an employee whose services have become redundant. 16.1.3 “Weekly earnings”—Base rate of pay arising out of enterprise agreements. 16.2 Avoiding Retrenchment/Alternative Employment The Company recognises that retrenchment of an employee is the last resort after all alternative avenues of employment have been exhausted. The Company will use its best endeavours to find suitable alternative employment for an employee whose job has be- come redundant. An employee whose job has become redundant may be of- fered alternative employment and agrees to undergo a 3 month trial to determine the suitability of the position. The employee shall not refuse any reasonable offer provided that the weekly earnings which applied prior to the offer being made are main- tained for 12 months. Should there by any dispute in relation to the new position then the matter shall be dealt with in accordance with the dis- pute resolution procedures as included in the Agreement. This Agreement shall not apply where the Company termi- nates a person’s employment as a consequence of conduct that justifies dismissal including malingering, neglect of duty, inefficiency or misconduct. 16.3 Notice of Redundancy/Retrenchment The Company shall advise affected employees and the par- ties to this Agreement as soon as a decision is made to effect redundancies of the anticipated date on which the employee is to be given formal notice of redundancy. 16.3.1 Period of Notice. An employee shall be given notice of termination as prescribed in the Workplace Relations Act 1996. 16.4 Severance Payments The following severance payments shall be paid to those employees given redundancy. i) 2 weeks per completed year of service to a maxi- mum of 52 weeks weekly earnings, based on weekly earnings. ii) payment of pro-rata long service leave after 5 years service. iii) ex gratia payment of 4 weeks pay based on weekly earnings. iv) 50% of all accumulated sick leave to be paid out. 16.5 Selection Criteria The Company shall determine which positions are to be- come redundant based on the circumstances which apply at the time. The Company shall ask for expressions of interest for vol- unteers for redundancy and shall determine on the basis of the person’s skills and abilities and the Company’s needs which of the volunteers should be offered redundancy. In the event that there are insufficient volunteers the Com- pany reserves the right to select employees based upon the skills and abilities of the employees and the Company’s needs. Should any employee consider that they have been treated unfairly in the selection process then they may use the dispute resolution mechanism as included in this Agreement. 16.6 Counselling The Company shall provide suitable financial, job and per- sonal counselling to those employees wishing it. There will be no cost to the employee for the provision of such services. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 167 81 W.A.I.G. 16.7 Medical Examnation The Company will arrange for all retrenched employees to have a compulsory comprehensive medical examination in- cluding audiometric testing at the Company’s expense prior to termination. Such medical reports shall be made freely avail- able to the employee concerned. 17.—NO FURTHER CLAIMS 1) Subject to subclause (2) hereof, it is a condition of this Agreement that the parties will not seek any further claims, with respect to wages and working conditions, unless they are consistent with the State Wage Case Principles. 2) The parties remain in dispute over the entitlement to al- lowances for Quarry workers and have agreed to resolve this matter during the life of this Agreement. Any decision arising from arbitration over allowances for the Red Hill Quarry shall be applied to the circumstances and pattern of work at the Byford Quarry and incorporated into this Agreement with ef- fect from the first pay period on or after 1 December 1998. Whilst this issue is being resolved and for the duration of this Agreement, normal work practices will continue. 18.—NOT TO BE USED AS A PRECEDENT It is a condition of this Agreement that the parties will not seek to use the terms contained herein as an example or prec- edent for other Enterprise Agreements whether they involve Pioneer Construction Materials Pty Ltd or not. 19.—SIGNATORIES TO THE AGREEMENT ............................................................................. On behalf of Pioneer Construction Materials Pty Ltd .............................................................................. On behalf of The Transport Workers Union, Industrial Un- ion of Workers, Western Australian Branch. PIONEER CONSTRUCTION MATERIALS RED HILL QUARRY (ENTERPRISE BARGAINING) AGREEMENT 2000. No. AG 261 of 2000. 2000 WAIRC 01531