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[1995] AIRC 473
defendant. The variations sought were granted. The awards were varied to give effect to the two-year enterprise agreements, operating from the first pay period commencing on or after 10 March 1995 and...
The Australian Industrial Relations Commission granted consent variations to nine awards covering BHP Steel employees to give effect to enterprise agreements continuing a Performance Related Payment Scheme. The Commission found that the parties had satisfied the onus of showing that award variation was preferable to agreement certification, particularly because the scheme had unique enterprise-specific characteristics that meant there was no risk of flow-on to other employers. The wage increases were properly based on documented productivity gains. A provision allowing salary sacrifice of performance payments into superannuation was permitted even though it might exceed statutory superannuation guarantee levels, because it was contingent upon productivity-based wage increases and therefore fell within an exception to the usual special case requirements.
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the application will be dealt with in the same way as an application above the award safety net of wages and conditions under the August 1994 decision. In this respect the Statement of Principles attached to the August 1994 decision says:
2 cited instruments linked from this judgment.
Generally an application to make or vary a minimum or paid rates award for wages and/or conditions above the award safety net shall be referred to the President for consideration as a special case. A party seeking a special case must make an application pursuant to s.107 supported by material justifying the matter being dealt with as a special case. It will then be a matter for the President to decide whether it is to be dealt with by a Full Bench. Exceptions to this process are applications which fall within the provisions in the Statement of Principles dealing with a Consent Award or Award Variation to Give Effect to an Enterprise Agreement and with a First Award and Extension to Existing Award [Print L4700, pp.44-45]" [Print L5100].
Thus, an exception is provided to the primary requirement that, if the award entitlement exceeds the quantum for employer contributions provided for in the SGA Act, then a special case
I am satisfied that the variation sought meets the requirements of the Principle 2.2 Consent Award or Award Variation to give effect to an Enterprise Agreement for the reasons stated above. In particular I am satisfied that the superannuation option, if accessed, would be available as a result of the employee achieving a higher wage increase based upon increases arising out of the PRPS. As such it is based upon the achieved gains in efficiency and productivity. I therefore conclude that this clause falls within the exception provided for and that there is no need for the parties or the Commission to treat the matter as a special case.
As stated on transcript when the applications were heard on 10 March 1995, I am prepared to grant the variations sought. The variations will operate from the first pay period to commenced on or after 10 March 1995 and remain in force until 31 December 1996. The orders will be in the form of consolidated awards (as amended during proceedings) as tendered as exhibit G4.
Finally, on the basis of the material tendered the parties, including the employees covered by the awards, are to be commended for their commitment to and outcomes achieved in the implementation of the strategy set out in the PRPS awards I made in July 1993.
D. Bourne for the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers Union.
A. Gillis with J. Brannon and B. Bach for BHP Steel (JLA) Pty Ltd.
The variations sought were granted. The awards were varied to give effect to the two-year enterprise agreements, operating from the first pay period commencing on or after 10 March 1995 and remaining in force until 31 December 1996. Orders made in form of consolidated awards as tendered as exhibit G4.