METAL INDUSTRY AWARD 1984 - PART I(1) (ODN C No. 02568 OF 1984)

Association of Draughting, Supervisory and Technical Employees

METAL INDUSTRY AWARD, 1984 - PART II - DRAUGHTSMEN, PRODUCTION PLANNERS AND TECHNICAL OFFICERS(2) (ODN C No. 00127 of 1984)

METAL INDUSTRY AWARD 1984 - PART V - FOREMEN AND SUPERVISORS(3) (ODN C No. 00128 of 1984)

The Federated Engine Drivers' and Firemen's Association of Australasia (C No. 20376 of 1990)

METAL INDUSTRY (ENGINE DRIVERS' AND FIREMEN'S) AWARD 1984(4) (ODN C No. 02948 of 1984)

Metal workers Metal industry

DEPUTY PRESIDENT KEOGH
MELBOURNE, 20 MARCH 1990

Wage rates - August 1989 national wage structural efficiency principle second increase - first minimum rates adjustment - applications supported by all other unions concerned except The National Union of Storeworkers, Packers, Rubber and Allied Workers (NUW) - it sought deferral for one week, in so far as applications affected NUW, to allow it to take proposed variations to its members - Commission satisfied that parties implemented principles properly - awards varied operative from 20 March 1990 - Commission not prepared to risk potentially volatile industrial situation in industry - therefore NUW submission rejected.

These matters involve an application by The Amalgamated Metal Workers' Union to vary Part I of the Metal Industry Award 1984 in relation to the second structural efficiency adjustment and the first minimum rates adjustment

determined by the National Wage Case decision of August 1989(5) and similar applications by the Association of Draughting, Supervisory and Technical Employees and The Federated Engine Drivers' and Firemen's Association of Australasia in relation to the Metal Industry Award 1984 (Parts II and V) and the Metal Industry (Engine Drivers' and Firemen's) Award 1984, respectively.

(1)Print F8925 [M039] (2)Print F5144 [M041] (3)Print F5010 [M177] (4)Print F6757 [M187] (5)Print H9100 These awards were the subject of a decision of 20 September 1989(6) in relation to the first structural efficiency adjustment. As a result of that decision, the awards were varied in accordance with the National Wage Case decision of August 1989. The variations, apart from the structural efficiency adjustments, included:

. broadbanding, to a significant extent, of existing classifications as a preliminary step to final broadbanding in a new

. minimisation of the cost impact of the removal of interstate differentials and the initial broadbanding by requiring any resultant increases to be absorbed into existing overaward

. a commitment to test a proposed new classification structure;

. an obligation on employees to perform "a wider range of duties including work which is incidental or peripheral to their main tasks or functions".

Subsequently, on 15 December 1989, Part I of the Metal Industry Award 1984 was further varied in respect of adult apprenticeships and traineeships.(7) That variation has to be seen as an integral part of the ongoing implementation by the parties of the structural efficiency principle.

In their current applications, the unions seek to give effect to an agreement to further vary the award to:

1. Apply the second structural efficiency adjustment.

2. Apply the first minimum rates adjustment in accordance with the

3. Insert a new Appendix G in the award which details a 14-level

classification structure, the wage relativity of each level to the base tradesman (C10) level, definitions and indicative tasks. A related award provision provides that this classification structure is to be subject to a transition/implementation period of six months during which all parties are to familiarise themselves with that structure and definitions and implement the structure in each plant. To assist the latter process, the parties at industry level are preparing an implementation manual and, until that is available, the existing structure and definitions

will continue to apply. Implementation is to be finalised by the end of the period of six months. During that period, the structure may also be subject to final fine-tuning. Finally, transfer of employees from the old to the new structure will be carried out in accordance with an agreed procedure, including as necessary agreed

competency standards and a process for the testing of an employee's claim for reclassification by an independent authority.

4. Reaffirm the requirement that increases deriving from broadbanding and minimum rates adjustment are subject to absorption in existing overaward payments.

(6)Print H9650 (7)Print J0730 [M039 V094] 5. Reaffirm the parties' commitment to proceed to modernise the awards.

6. Provide, in the contract of employment clause, the right of an employer to direct an employee to perform such duties, and use

such tools and equipment, as are within the employee's skill, competence and training. This provision replaces the "wider range of duties . . ." requirement inserted in the awards following the Commission's decision of 20 September 1989(8) and is designed, consistent with the classification structure, to ensure maximum

flexibility in the workforce of an enterprise and to eliminate classification demarcation problems.

Prescribe a new structural efficiency provision which -

. details the commitment of the parties to co-operate

positively to increase the efficiency of their industry;

. requires an employer, his employees and their relevant unions to establish a plant consultative mechanism appropriate to the size, structure and needs of that plant;

. requires the parties through that consultative mechanism to

consider measures related to implementation of the new classification structure, the facilitative provisions of the award and training;

. provides a process through which the parties concerned may

achieve the implmentation of other measures designed to increase flexibility and efficiency at the plant;

. provides that any disputes arising under the provision shall be dealt with in accordance with the disputes procedure prescribed in the awards.

. details the commitment of the parties to training and skill development;

. requires an employer, following consultation through the consultative mechanism established under 7. above or through a training committee, to develop a plant training programme consistent with certain stated objectives;

. provides that an employee who, by agreement, undertakes additional training in accordance with the plant training programme shall not suffer any loss of pay and shall be

reimbursed any standard course fees, cost of textbooks and excess fares;

. provides that the effectiveness of the new provision be monitored by the parties over a period of nine months;

. provides that any disputes arising under the provision shall be dealt with in accordance with the disputes procedure prescribed in the awards.

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(8)Print H9650 9. Increase the spread of hours during which actual ordinary hours may be worked from 11-1/2 to twelve hours by changing the current prescription of 6.30 a.m. to 6.00 p.m. to 6.00 a.m. to 6.00 p.m.

10. Insert facilitative provisions designed to enable an employer and his employees to enter into more flexible working arrangements in relation to -

. the taking of meal breaks, including staggering;

. the working of ordinary hours, including twelve hour shifts; and

. the taking of annual leave, including close-downs.

The applications to vary were supported by all other unions concerned (apart from The National Union of Storeworkers, Packers, Rubber and Allied Workers (NUW)) and the Metal Trades Industry Association of Australia, The Australian Chamber of Manufactures, the Engineering Employers Association, South Australia, the Metal Industries Association Tasmania and the South Australian Employers' Federation. The Australian Council of Trade Unions, intervening, also supported the applications. The Confederation of Australian Industry, intervening, noted the thrust of the applications and the support for them by the employers directly concerned. It also noted the traditional role of the Metal Industry Award as a pace-setter and submitted that, given the nature of the structural efficiency principle, it should not be so treated by any parties or tribunals on this occasion.

The NUW opposed the applications in what it described as a qualified sense. It stated that it had not been a full party to the negotiations that had lead to the applications; it had some fundamental problems with the new classification structure proposed, although it did not see this as an impediment to other actions it is taking in the Commission with the objective

of achieving a separate warehousing award for its members in the metal industry; and it had fundamental policy objections to the nature of the structural efficiency provision proposed for insertion in the awards and the prescription of any facilitative clauses. It proposed that the Commission defer the applications to vary, in so far as they affected the NUW, for one week in order to allow it to take the proposed variations to its members for approval or rejection.

In its National Wage Case decision of August 1989 the Commission stated:

"Furthermore, we believe that the second instalment of the structural efficiency adjustment should only be available if the Commission is satisfied that the principle has been properly implemented and will continue to be implemented effectively."

I am satisfied that the parties to these awards have demonstrated, through the variations now proposed to the awards, that they have implemented the principle properly. Moreover, the variations to the awards which they have presented in these proceedings provide the means by which they can, on both an industry and enterprise basis, continue to co-operate positively "to increase the efficiency, productivity and international competitiveness of the metal and engineering industry and to enhance the career opportunities and job security of employees in the industry". Consequently, I shall issue orders

varying the awards in the terms of the draft orders tendered in these proceedings. Those variations will operate from the beginning of the first pay period to commence on or after today's date (20 March 1990) and remain in force for a period of twelve months. Individual employers will need time to properly implement this decision and, therefore, I determine that employers shall not be required to pay employees the relevant increases until a day three weeks from the actual date of operation set in this decision.

The order in relation to Part I of the Metal Industry Award 1984 will bind the NUW. I have considered that organisation's submission to defer final determination of its position. That submission might seem to have some superficial attraction. However, on proper examination, I am satisfied that the NUW was a party to the negotiations which led to the current applications and acceptance of its submission could lead to a potentially volatile industrial situation in this industry. I am not prepared to take that risk and therefore its submission is rejected.

R. Boland, B. Evans, N. Anderson, D. Wright and B. Herbert for the Metal Trades Industry Association of Australia.

A. Swinstead for the Engineering Employers Association, South Australia.

M. Harmer for the Confederation of Australian Industry.

C. Milne and K. Wier for The Australian Chamber of Manufactures.

T. Abey for the Metal Industries Association Tasmania.

B. Fraser, M. Smith, and C. Lloyd for The Amalgamated Metal Workers' Union.

L. Benfield for the Electrical Trades Union of Australia.

T. Ferrari for The Federated Miscellaneous Workers Union of Australia.

B. Davies for The Federated Ironworkers' Association of Australia.

T. Pallas for The National Union of Storeworkers, Packers, Rubber and Allied Workers.

R. Fowler for The Federated Engine Drivers' and Firemen's Association of Australasia, The Building Workers' Industrial Union of Australia, The Amalgamated Society of Carpenters and Joiners of Australia and The Plumbers and Gasfitters Employees' Union of Australia.

J. Roe for the Association of Draughting, Supervisory and Technical Employees.

L. Carmichael for the Australian Council of Trade Unions.

Note: The addendum contained in Dec 277a/90 M Print J1970 has been incorporated in the pamphlet version of this decision. ** End of Text **