WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION. Industrial Relations Act 1979. The Shop, Distributive and Allied Employees’ Association of Western Australia and Elders Limited. No. AG 332 of 1996. Elders Limited (Spearwood Wool Store) Enterprise Agreement 1996. COMMISSIONER P E SCOTT. 31 January 1997. Order. HAVING heard Mr B Johnston on behalf of the Applicant and Mr S Knott on behalf of the Respondent and by consent, the Commission, pursuant to the powers conferred on it under the Industrial Relations Act, 1979, hereby orders: THAT the Elders Limited (Spearwood Wool Store) En- terprise Agreement 1996 be registered on the 9th day of January 1997. (Sgd.) P. E. SCOTT, [L.S] Commissioner. Schedule. 1.—TITLE This Enterprise Agreement shall be known as the “Elders Limited (Spearwood Wool Store) Enterprise Agreement 1996, No.AG 332 of 1996. 2.—ARRANGEMENT 1. Title 2. Arrangement 3. Application of Agreement and Parties Bound 4. Duration 5. Relationship to Parent Award 6. Single Bargaining Unit 7. Agreement Not to be Used as a Precedent 8. Objects 9. Implementation of 38 Hour Week 10. Wage Rates 11. Productivity Matrix 12. Allowances WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 77 W.A.I.G. 358 13. Payment of Wages 14. Termination, Change and Redundancy 15. Measures to Achieve Gains in Productivity, Effi- ciency and Flexibility 16. Signatories 3.—APPLICATION OF AGREEMENT AND PARTIES BOUND This Agreement shall bind all employees of Elders Limited (“the Company”) employed at the Spearwood Wool Store, Corner of Phoenix and Sudlow Roads, Spearwood, Western Australia who are bound by the terms of the Wool, Hide and Skin Store Employees’ Award or any successor thereto, en- gaged in or in connection with the processing, handling and preparing for sale of wool (including classing, sorting, dump- ing, piece picking, receiving, despatching and general han- dling of wool) and wool dumping. At the point of registration, this agreement will cover approximately 31 employees. The parties to the Agreement are Elders Limited and The Shop, Distributive and Allied Employees’ Association of West- ern Australia (“the Union”). 4.—DURATION This Agreement shall take effect from the date of ratifica- tion by the Western Australian Industrial Relations Commis- sion and shall remain in force for a period of 18 months. The parties agree that it is intended that this Agreement be replaced or re-negotiated prior to its expiry. During the term of this Agreement, the Union undertakes that it or its members will not pursue any extra claims except insofar as they relate to the proposed renegotiation of this Agreement. 5.—RELATIONSHIP TO PARENT AWARD The terms and conditions of this Agreement shall be read and interpreted in conjunction with the Wool, Hide and Skin Store Employees’ Award (the “Parent Award) as varied from time to time. Where a provision of this Agreement is incon- sistent with a provision of the parent award the former shall to the extent of any inconsistency override the latter. Any questions, disputes or difficulties arising out of this agreement are to be dealt with in accordance with the proce- dure set down in the parent award. 6.—SINGLE BARGAINING UNIT A single bargaining unit has been established as follows: • The Wool Operations Manager • The Administration Manager • The Shop Steward • Three elected representatives from the wool store person- nel Provided that a representative of the relevant employee or employer organisation may attend and participate in any meet- ing of the Single Bargaining Unit. 7.—AGREEMENT NOT TO BE USED AS A PRECEDENT This Agreement shall not be used in any manner whatsoever to obtain similar arrangements or benefits in any other plant or enterprise. 8.—OBJECTS The objects of this Agreement are to improve communica- tion between management and stores employees at all levels within the enterprise and to establish a co-operative environ- ment with the common goal of providing an efficient service to customers. To achieve these objectives, the parties will jointly cultivate a team environment and a commitment to the development of a multiskilled workforce supported by adequate training pro- grams. 9.—IMPLEMENTATION OF 38 HOUR WEEK The 38 hour week shall be worked as a four week cycle of 19 days of eight ordinary hours on the days Monday to Friday inclusive as provided by the Parent Award provided that the employer may require employees to bank up to five rostered days off during the peak season in any year. Days banked pursuant to this clause may be taken outside of the peak season at a time agreed between the employee and the employer provided that: i) An employee shall give the employer at least two (2) weeks notice of their intention to take a banked RDO(s). ii) The employer may reject a request to take a banked RDO(s) if so many employees have elected to take the same day such as to adversely affect the meeting of the operational requirements of the business. 10.—WAGE RATES The weekly ordinary time rate for adult employees perform- ing duties as set out in the classification structure detailed in Clause 13.-Wages and Classification Structure of the Parent Award shall be as detailed in the table below until the first full pay period on or after the first anniversary of the ratification of this Agreement: Classification Total Rate $ p/week Storeworker Level 1 427.36 Storeworker Level 2 438.50 Storeworker Level 3 448.27 Storeworker Level 4 459.91 Storeworker Level 5 473.86 Storeworker Level 6 496.91 The weekly ordinary time rate for adult employees perform- ing duties as set out in the classification structure detailed in Clause 13.-Wages and Classification Structure of the Parent Award shall be as detailed in the table below from the first full pay period on or after the first anniversary of the ratification of this agreement; Classification Total Rate $ p/week Storeworker Level 1 435.90 Storeworker Level 2 447.27 Storeworker Level 3 457.23 Storeworker Level 4 469.10 Storeworker Level 5 483.33 Storeworker Level 6 506.84 11.—PRODUCTIVITY MATRIX The parties have agreed that the productivity based bonus system recognises the positive contribution that a motivated work team can make towards the profitability, competitive- ness, job security and safety at Elders Limited. The bonus sys- tem is performance related. The system measures the following key performance indi- cators: (i) Bales received, lotted and marshalled per man hour. (ii) Bales cored and stored per man hour. (iii) Bales shipped per man hour. (iv) Bales rehandled per man hour. (v) Sundry. Agreed base levels have been determined by consultation through the Single Bargaining Unit. The parties recognises that it is possible for factors beyond the employees’ control to influence key performance indica- tors, for example, a significant change(s) in the market or capital investment in new equipment. Should such an event(s) take place, the parties undertake to review the indicators and performance pay levels to ensure an appropriate level of incentive is maintained. Results will be posted monthly with the average result for each month’s review period determining the bonus to be paid in the next full pay period following the end of the review period. In any event the Consultative Committee will review the operation of the group productivity bonus system after the re- sults have been calculated for the first six calendar months. Where such a review recommends that variations be made to the performance levels detailed in the productivity matrix the parties shall consult in order to address the issues raised and upon agreement may vary the performance levels. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 359 77 W.A.I.G. The Performance Matrix used to determine bonus payments shall operate as follows: • A performance index ranging from 0 to +15 shall equate to agreed levels of performance for each of the criteria specified. The initial level of productivity is identified at performance index 0. • An agreed weighting will be determined for each of the criteria specified. At the end of the review period the level of performance in each area shall be identified on the Performance Matrix (Measured Performance Index). For each of the specified criteria the Measured Perform- ance Index shall be multiplied by the agreed weighting to determine a score. The total score shall be calculated by adding the individual scores. The incentive bonus pool shall be calculated by multiplying the agreed value per index point by the total score. The incentive bonus pool shall be distributed between all weekly employees equally. Casual employees shall be paid on a pro-rata basis for the period measured, the casual loading shall not apply to the bonus. • The Performance Matrix shall remain confidential to the parties. 12.—ALLOWANCES The rates for the following allowances detailed in the Parent Award shall be as follows: Dead Wool Allowance — 36 cents per hour First Aid Allowance — 81 cents per day Meal Money — $6.90 13.—PAYMENT OF WAGES Wages and Allowances for all employees shall be paid fort- nightly by Electronic Funds Transfer. 14.—TERMINATION, CHANGE AND REDUNDANCY (1) Termination of Employment (a) Should the Company wish to terminate a permanent employee, the following period of notice shall be pro- vided: Period of Continuous Service Period of Notice Less than 1 month 1 day One month or more but less than 1 year 1 week 1 year or more but less than 3 years 2 weeks 3 years or more but less than 5 years 3 weeks 5 years and over 4 weeks 4 weeks (b) Employees over 45 years of age with two or more years continuous service at the time of termination, shall receive an additional week’s notice. (c) Where the relevant period of notice is not provided, the employee shall be entitled to payment in lieu. Provided that employment may be terminated by part of the period of notice and part payment in lieu. (d) Payment in lieu of notice shall be calculated using an employee’s weekly ordinary time earnings. (e) The period of notice in this clause shall not apply in the case of dismissal for conduct that justifies in- stant dismissal, including malingering, dishonesty, inefficiency or neglect of duty or employees engaged for a specific period time and/or for a specific task or tasks (limited tenure). (f) Notice of termination by employee The notice of termination required to be given by an employee shall be the same as that required of the Company except that employees 45 years and over shall not provide an additional week’s notice. If an employee fails to give notice, or to work out the full period of notice, the Company shall have the right to withhold monies due to the employee under this Agreement to a maximum amount equal to the ordinary time earnings for the period of notice re- quired. At the employee’s request, and the Compa- ny’s discretion part or all of the period of notice required by an employee may be waived by the Com- pany and the employee paid to the date of termina- tion only. Where an employee has given or been given notice as aforesaid or payment made in lieu of the prescribed notice unless otherwise agreed between the employer and the employee he/she shall continue in employ- ment until the date of expiration of such notice. An employee having been given notice as aforesaid who absents themselves from work during such period without reasonable cause (proof whereof shall be upon him/her) shall be deemed to have abandoned his/her employment and shall not be entitled to pay- ment for work done within such period of notice. (g) Time off during notice period Where the Company has given notice to an employee of intended termination, the employee shall be al- lowed time off without loss of pay, for a cumulative period of eight hours for the purpose of seeking other employment. Such time off shall be taken at times that are convenient to the employee after consulta- tion with the manager. (h) Statement of Employment The Company shall, when requested, provide to the employee a written statement specifying the period of their employment and the classification of or the type of work performed by the employee. (2) Introduction of Change (a) Company’s Duty to Notify Where the Company has made a definite decision to introduce major changes in production, program, or- ganisation, structure or technology that are likely to have significant effects on employees, the Company shall notify the employees who may be affected by the proposed changes and the Union. “Significant effects” include termination of employ- ment, major changes in the composition, operation or size of the workforce or in the skills required; the elimination or diminution of job opportunities, pro- motion opportunities or job tenure; the alteration of hours of work; the need for retraining or transfer of employees to other work or locations and the restruc- turing of jobs. Provided that where the Parent Award makes provision for alteration of any of the matters referred to herein an alteration shall be deemed not to have significant effect. (b) Company’s Duty to Discuss Change The Company shall discuss with the employees af- fected and their Union inter alia, the introduction of the changes referred to above, the effects the changes are likely to have on employees, measures to avert or mitigate the adverse effects of such changes on employees and shall give prompt consideration to matters raised by the employees and/or the union in relation to the changes. The discussions shall commence as early as practi- cable after a definite decision has been made by the Company to make the changes referred to above. For the purposes of such discussions, the Company shall provide in writing to the employees concerned and the Union, all relevant information about the changes including the nature of the changes proposed, the expected effects of the changes on employees and any other matters likely to affect employees pro- vided that the Company shall not be required to dis- close confidential information the disclosure of which would be inimical to the Company’s interests. (3) Redundancy (a) Discussions Before Terminations (i) Where the Company has made a definite de- cision that the Company no longer wishes the job the employee has been doing to be done by anyone and this is not due to the ordinary and customary turnover of labour and that de- cision may lead to termination of employment, the Company shall hold discussions with the employees directly affected and with the Un- ion. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 77 W.A.I.G. 360 (ii) The discussions shall take place as soon as is practicable and shall cover, amongst other matters the reasons the proposed terminations are required, measures to avoid or minimise the terminations and measures to mitigate any adverse effects of any terminations on the employees concerned. (iii) For the purposes of the discussion the Com- pany shall, as soon as practicable, provide in writing to the employees concerned and the Union, all relevant information about the pro- posed terminations including the reasons for the proposed terminations, the number and categories of employees likely to be affected, and the number of employees normally em- ployed and the period over which the termi- nations are likely to be carried out. Provided that the company shall not be re- quired to disclose confidential information the disclosure of which would be inimical to the Company’s interests. (b) Transfer to lower paid duties Where an employee is transferred to lower paid du- ties for reasons set out in (a) above, the employee shall be entitled to the same period of notice of trans- fer as they would have been entitled to if they had been terminated, and the Company may make pay- ment in lieu thereof of an amount equal to the differ- ence between the former ordinary time rate of pay and the new lower ordinary time rates for the number of weeks of notice still owing. (c) Severance Pay In addition to the period of notice provided in subclause (1) hereof, a permanent employee whose employment is terminated for reasons set out above shall be entitled to the following amount of sever- ance pay in respect of a continuous period of serv- ice: Period of continuous service Severance Pay less than 1 year nil 1 year but less than 2 years 4 weeks pay 2 years but less than 3 years 6 weeks pay 3 years but less than 4 years 7 weeks pay 4 years and over 8 weeks pay “Weeks pay” means the ordinary time rate of pay for the employee concerned. Provided that the severance payments shall not ex- ceed the amount which the employee would have earned if employment with the Company had pro- ceeded to the employee’s normal retirement date. (d) Employee Leaving During Notice An employee whose employment is terminated for reasons set out in (a) above may terminate his or her employment during the period of notice and, if so, shall be entitled to the same benefits and payments under this clause had he or she remained with the Company until the expiry of such notice. Provided that in such circumstances the employee shall not be entitled to payment in lieu of notice. (e) Alternative Employment The Company in a particular redundancy case, may make application to the Commission to have the gen- eral severance pay prescription varied if the Com- pany obtains acceptable alternative employment for an employee. (f) Time Off During Notice Period (i) During the period of notice of termination given by the Company an employee shall be allowed up to one day’s time off without loss of pay during each week of notice for the pur- pose of seeking other employment. (ii) If the employee has been allowed paid leave for more than one day during the notice pe- riod for the purpose of seeking other employ- ment, the employee shall, at the request of the Company, be required to produce proof of at- tendance at an interview or they shall not re- ceive payment for the time absent. For the purpose a statutory declaration will be sufficient. (g) Notice to Commonwealth Employment Service Where a decision has been made to terminate em- ployees in the circumstances outlined in (a) above, the Company shall notify the Commonwealth Em- ployment Service thereof as soon as possible giving relevant information including the number and cat- egories of the employees likely to be affected and the period over which the terminations are intended to be carried out. (h) Superannuation Benefits Subject to further order of the Western Australia In- dustrial Relations Commission, where an employee who is terminated receives a benefit from a superan- nuation scheme that in the case of redundancy pro- vides for a specific benefit that has been funded by employer contributions and which is in addition to superannuation benefits which would otherwise ap- ply, the employer shall be entitled to offset only the amount of the additional superannuation fund ben- efit against amounts payable under subclause (c). (i) Transmission of Business (i) Where a business is before or after the date of this Agreement, transmitted from one em- ployer (in this subclause called “the transmittor”) to another employer (in this subclause called “the transmittee”) and an employee who at the time of such transmis- sion was an employee of the transmittor in that business becomes an employee of the transmittee: — The continuity of the employment of the employee shall be deemed not to have been broken by reason of such transmis- sion; and — the period of employment which the em- ployee has had with the transmittor or any prior transmittor shall be deemed to be service of the employee with the transmittee. (ii) In this subclause “business” includes trade, process, business or occupation and includes part of any such business and “transmission” includes transfer, conveyance, assignment or succession whether by agreement or by op- eration of law and “transmitted’ has a corre- sponding meaning. (j) Employees with Less Than One Year’s Service This clause shall not apply to employees with less than one year’s continuous service and the general obligation on the Company should be not more than to give relevant employees an indication of the im- pending redundancy at the first reasonable opportu- nity, and to take such steps as may be reasonable to facilitate the obtaining by the employees of suitable alternative employment. (k) Employees Exempted This clause shall not apply where employment is ter- minated as a consequence of conduct that justifies instant dismissal, including malingering, inefficiency or neglect of duty, or in the case of casual employees or employees engaged for a specific period of time or for a specified task or tasks. (l) Incapacity to Pay The company, in a particular redundancy case, may make application to the Western Australian Indus- trial Relations Commission to have the general sev- erance pay prescription varied on the basis of the employer’s incapacity to pay within eight weeks of the termination of the employee(s). WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 361 77 W.A.I.G. 15.—MEASURES TO ACHIEVE GAINS IN PRODUCTIVITY, EFFICIENCY AND FLEXIBILITY The aim of this Clause is to adopt a productive culture dedi- cated to achieving real and measurable improvement through teamwork, participation, trust and mutual respect. In order to further these aims the parties to this Agreement have agreed that: (1) All employees will participate in the working of shift work in accordance with Clause 28.-Shift Work of the Wool, Hide and Skin Store Employees Award No. 8 of 1966 during the months of August, Septem- ber, October and November as required by the em- ployer. (2) Australian Wool Testing Authority staff will be per- mitted to perform core line functions where there is a lack of warehouse personnel due to sick leave and/ or RDO’s and/or annual leave. (3) The company confirms that it will not make existing core line personnel redundant as a result of the utili- sation of Australian Wool Testing Authority person- nel in the operation of the core lines in accordance with paragraph (b) above. 16.—SIGNATORIES Representatives of the parties to this Agreement, Elders Lim- ited and The Shop, Distributive and Allied Employees’ Asso- ciation of Western Australia have signed this clause indicating their Agreement. (Signed)............................................ for and on behalf of Elders Limited (Spearwood Wool Store) JOHN WARD................................. (Name of Signatory) WA WOOL OPERATIONS MANAGER (Position of Signatory) 25 November 1996......................... (Date) (Signed)........................................... for and on behalf of The Shop, Distributive and Allied Employees’ Association of Western Australia JOSEPH BULLOCK....................... (Name of Signatory) GENERAL SECRETARY.............. (Position of Signatory) 26 November 1996......................... (Date) EUROPEAN CERAMICS INDUSTRIAL AGREEMENT No. AG 339 of 1996.