The employer's submissions on appeal
53 Both parties accept that if an employee is working a roster that is set out in Annexure 1, then the employee is entitled to be paid, as a component of their total salary, the prescribed roster allowance in the table in clause 4.
54 Mr Neil SC, who, with Ms J Anderson, appeared for the employer, posed the issue to be decided in these terms:
If an employee is not working such a roster, that is, if an employee is not working a roster that is set out in Annexure 1 … but instead is working a roster that is not set out in that table, then the employee is entitled to be paid a roster allowance that is calculated in accordance with the second paragraph in clause 4. When the rosters were changed that posed the question, the critical, determinative question, of whether the new rosters that were being worked by the employees that were the subject of the application were rosters that were set out in Annexure 1, that is, were they rosters that were described in the table that appears at the foot of clause 4.
55 He submitted that the primary judge correctly identified that question at [18], [19] and [36] of the primary judgment.
56 However, Mr Neil submitted that, reading the enterprise agreement as a whole, consistently with principle, one starts with cl 10, not with Annexure 1. Clause 10 is headed "Rosters". Clause 10.1 provides that employees "will be required to work the hours that are reasonably necessary to perform their role" and that they "may be required to work shifts of up to 12½ hours duration". The employer may change roster systems, all of which are based on shifts. But it may only do so subject to what Mr Neil called "constraints", namely the changes must "meet the needs of the operation"; they must be "in consideration of the health and safety needs" of employees; and before any new roster system is introduced, the employer must, "consult with the [e]mployees directly affected, as far as is practicable, and will give prompt consideration to the matters raised by the [e]mployees". Those constraints, so it was submitted, prevent the employer from imposing an arbitrary adjustment of the proportions between rostered and actual hours.
57 It will be recalled that cl 10.2 provides:
10.2 Indicative Hours
An Employee's Total Salary represents payment for the performance of their role, not for the hours attending work. An indicative number of hours to be worked by a full-time Employee are contained in the roster descriptions in Annexure l.
The Total Salary has been determined on the basis that an Employee may need to work reasonable hours in addition to those hours indicated in Annexure 1 to perform their role.
58 Mr Neil submitted that cl 10.2 introduces "the concept of indicative hours" and that "[r]ead objectively and as a whole, the manifest industrial purpose of clause 10.2 is principally to provide that employees have an obligation to work not only the hours stipulated in the rosters dealt with in Annexure 1, but also what are called reasonable hours in addition to those hours, and also that the employees remuneration comprehends both the stipulated rostered hours and the additional hours". The submission continued:
In other words, it tells an employee you will be required to work your rostered hours and sometimes also reasonable hours in addition to your rostered hours, but you will not be paid anymore for working the additional hours because your total salary already compensates you for that, and at the same time, it accommodates the opposite possibility. It accommodates the possibility that, as sometimes happened on the evidence, employees might not always be required to work all of their rostered hours of work. And as to that possibility, it tells employees if you work less than your rostered hours of work, you will nevertheless still be entitled to the same total salary.
The overall purpose - so understood, the overall purpose of clause 10.2 is to provide that employees' total salary is not dependent on whether they work more or less than their rostered hours of work.
59 He submitted that the primary judge correctly identified that purpose and its consequences at [31] of the primary judgment.
60 Mr Neil submitted that "[t]he first sentence in clause 10.2 decouples employees' total salary from hours of work. Any hours of work additional to their rostered hours will not attract any additional remuneration because their total salary already comprehends their obligation to work those additional hours". In his submission, the second sentence "is critical because it identifies the roster descriptions in Annexure 1 as the place where the rostered hours of work are stipulated". Read with the second paragraph of cl 10.2 he submits that cl 10 "explicitly and inescapably distinguishes additional hours of work from those hours indicated in Annexure 1. In other words, it explicitly distinguishes rostered hours of work from additional hours of work".
61 He submitted that the primary judge correctly recognised what he called "that critical distinction" at [42] and [45] of the primary judgment.
62 Mr Neil submits that, reading the enterprise agreement as a whole, the next step is to go to cl 2 of Annexure 1. It is headed "Role Base Salary", which cl 2 expressly defines to include "compensation for additional hours that are worked during employment". Mr Neil submits that the concept of "additional hours" that is described in cl 2 is the same concept that is described in cl 10.2.
63 Turning next to cl 4 of Annexure 1, Mr Neil submits that the purpose of the Roster Allowance, as the primary judge correctly recognised at [41] of the primary judgment is to "compensate [e]mployees for all disabilities and [rostered] working hours associated with the role … but excluding the additional hours incorporated in the role-based salary". He submitted that the first paragraph of cl 4 of Annexure 1 includes three material propositions, viz that:
(1) the requirements of the roster are expressed to be a subset of the disabilities and working hours associated with the role excluding the additional hours incorporated in the role-based salary;
(2) the subject of employees' rosters is, and is only, the hours that employees are rostered to work, exclusive of any hours that they might be required to work in addition to their rostered hours of work ("…excluding the additional hours incorporated in the role-based salary"); and
(3) remuneration in respect of employees' obligation to work the additional hours is not comprehended within the roster allowance but instead is expressly a component of the role-based salary.
64 Turning then to the second paragraph of clause 4, Mr Neil submitted that "it deals with two distinct concepts. Explicitly, it deals with the way in which a roster allowance should be calculated for a roster not set out in the Annexure - that is, a roster that is not described in the table, or to use the language of clause 10.2, a roster that is not a 'roster description'. Implicitly, [it] recognises the converse, which relates to a roster that is set out in … the Annexure. In that circumstance, where one has a roster that is described in the table, then the roster allowance is the amount that is stipulated in that table".
65 It is only at that point that Mr Neil submits that one then turns to the table in cl 4 (set out at [16] above) that is the centre of the controversy on this appeal.
66 His first point is that the descriptions under the heading "Roster" are the "roster descriptions" contemplated by cl 10.2. He submitted that "[e]ach roster is described by reference to two features: the first, the pattern, for example, seven day continuous shift and second, the number of rostered hours per week. By describing each roster by reference not just to the pattern but also to the number of hours, the table adopts an industrially conventional approach to the concept of a roster, as the primary judge correctly recognised [at [40]] of the primary judgment". He further submitted that the descriptions of the hours (45 hour week or 45.75 hour week as the case may be) are "indicative number of hours to be worked by [employees] … contained in the roster descriptions in Annexure 1" within the meaning of cl 10.2 and "the rostered hours of duty" referred to in cl 10.3.
67 Mr Neil submitted, accordingly, that "[t]he correct position is that every description of a roster in Annexure 1 has two elements: the pattern of the roster and a stipulation of the rostered hours of work".
68 It is at this point in his analysis of the enterprise agreement that Mr Neil turned to the question of the meaning to be given to the word "indicative" that appears immediately before the hours set out in each roster description. Mr Neil submitted that the primary judge fell into error at [49] of his reasons, where the primary judge said as follows:
… the word "Indicative" in the Table is significant. As I have explained, under the Enterprise Agreement, the number of hours that employees will actually work is uncertain. Thus, the roster cannot specify the number of hours per week of actual work. Instead, only an "indicative" number of hours can be given. In this context, the relevant definition of "indicative" in the Shorter Oxford English Dictionary is "suggestive of". To put it another way, the expression "Indicative 45.75 hour week" in the Table signals that employees are rostered to work approximately 45.75 hours per week, but that they may have to work a reasonable number of additional hours in order to perform their roles.
69 Mr Neil submitted that "[t]he error in that paragraph is in the last sentence … the primary judge treats the word 'indicative' as though it meant that the hours stipulated in the roster description were approximate. That is incorrect. The hours stipulated in the roster are, as we have submitted, fixed and exact and they can only be changed by the process set out and laid down in clause 10.1. But, of course … as the primary judge had earlier correctly recognised, those hours, the fixed exact stipulated rostered hours, do not necessarily equate to the actual hours of work. The actual hours of work may be different than the hours stipulated in the roster by the addition of what the enterprise agreement calls 'additional hours' … What the word 'indicative' does in the table in the roster descriptions, is to reiterate the idea that is set out and described in clause 10.2 when it uses the word 'indicative'. It's an indication that the actual hours of work may be different to the hours stipulated in the roster descriptions".
70 For all those reasons, the employer contends that, properly construed, and precisely because the hours stipulated in the roster are "fixed and exact and can only be changed by the process set out and laid down in cl 10.1", then if any change at all is made to any relevant roster system, that roster can no longer meet the relevant description in the table, and the amount of the roster allowance falls to be determined by the formula provided for in the second paragraph of cl 4. That, it is submitted, will not produce any injustice or work arbitrary unfairness because a change can only be introduced after consultation with the employees and if the changes "meet the needs of the operation and in consideration of the health and safety needs" of the employees and, in any event, the formula to be applied in that eventuality produces a dollar figure that is commensurate with the reduced rostered hours (here a reduction in a roster of half an hour per shift, reduced the roster allowance by $4,200 and $4,500 per year).