24 Whether the accommodation was for the exclusive use of a construction workforce is the most problematic issue to be determined in this appeal.
25 The appellant's submissions in this regard may be summarised as follows:
· Mr Davison and Mr Bertapelle were PDOs who managed construction contracts and the delivery of SWC's capital works programs. They were part of 'a small project team with responsibility to audit and manage the performance of the contract' for the WSTP upgrade and were not construction workers.
· Mr Bertapelle and Mr Davison did not work for the construction contractor. They worked for SWC in managing and auditing the work of the contractor. They were not part of the construction workforce. The office where they worked was, therefore, not for the exclusive use of a construction workforce.
· McKenna C failed to give sufficient, or any, weight to the fact that Mr Bertapelle and Mr Davison were not employed by the construction contractor. Only its employees could constitute the construction workforce. Mr Bertapelle and Mr Davison were employees of the client, charged with ensuring that the construction workforce complied with the construction contract.
· The supervising and auditing work of Mr Bertapelle and Mr Davison was not work of the construction contractor. That work is intrinsically independent of the person or firm being supervised and audited. It is not integrated into the work of the contractor. Its purpose would be defeated if it were so integrated.
· McKenna C also erred in making her 'exclusive use' finding without any evidence that members of 'a construction workforce' were the only people who worked in the 'temporary construction site accommodation'. As the moving party, APESMA bore the onus of proving 'exclusive use'. It did not do so.
· 'Follow the job' employees do not include persons who are stationed at a particular site for a long period, encompassing a degree of permanence. There is no suggestion that these people are entitled to work to a reimbursement of fares for following the job once every three years.
26 For the respondent it was submitted:
· Mr Bertapelle performed duties which were not restricted to administrative and managerial tasks. He was the Site Safety Coordinator and Site Safety Committee Member. He was involved in physically rescuing people on site, ie placing people on stretchers and assisting them into ambulances. He conducted weekly safety inspections that took nearly a full day and had powers to stop work. He coordinated shut downs and programmed works. He was the Quality Checker. He estimated that he spent over 50% of his time on the construction site dealing with a variety of construction issues, in particular safety and quality. Mr Bertapelle stopped claiming the allowance in 2006 because he moved on the same Wollongong site from the temporary office into physical structure outside the construction boundaries.
· Mr Davison said that his primary duties, which consumed most of his time, required him to be physically on the construction site. He measured and assessed works completed on the site, liaised directly with construction staff on site and directly inspected site activities. In re-examination he said that he spent around 50% of his time 'out of his chair', on the site itself doing the following:
recording progress ... monitoring progress ... inspecting quality ... doing pre-pour inspections, placement inspections ... recording works that were actually carried out for assessment and variation claims and those sorts of things ... monitoring environmental activities, so as to make sure that environmental practices were up to scratch ... liaising with the construction workforce to make sure that things were done in the right order ... liaising with the construction workers and the operators of the sewerage treatment plant itself to make sure that that work could go on without disrupting the operations of the plant itself.
· There is no reason to read the words 'construction workforce' to mean only those working for the principal construction contractor. Where construction occurs there are always workers engaged by various contractors and persons. All of those persons working on the construction would together form the 'construction workforce' notwithstanding that they have different employers or principals.
· Here the employees in question were there in order to undertake duties associated with and arising from the construction. They were not located there by coincidence. They were on the construction site because their work required them to be supervising managing, inspecting and auditing the construction work. As their evidence makes clear they spent most of their time on the site doing that work.
· The expression 'construction workforce' extends beyond blue collar workers to professionals who are part and parcel of the overall construction project. There is no reason to conclude that does not cover those project officers who form part of the team with responsibility to inspect, audit and manage the performance of the construction work done on the site.
27 The phrase 'for the exclusive use of a construction workforce' must be construed in a manner consistent with the purpose of the award provision. It is apparent from cl 33.2 that employees 'who go regularly to work at a recognised office or depot' must bear the cost of travelling to, and from, work. That is consistent with the vast majority of workers; they pay for the cost of travelling to and from work. Employees, however, who 'follow-the-job', typically in the construction industry, have historically enjoyed an employment condition, most often provided by an award or agreement, that entitles them to a loading to compensate for the disability of not having a permanently located place of work.
28 In the 2004 Award, employees who 'follow-the-job' are employees who are 'required to work at other than a recognised office or depot' and 'who do not have a recognised office or depot'. Employees who follow-the-job are entitled to reimbursement of fares or a fares allowance, depending on whether they use public transport. Consistent with the historical rationale for the follow-the-job loading, the reimbursement or allowance under the 2004 Award is to compensate for the disability of not having the certainty associated with a permanently located workplace and having to contend with the fluctuating cost of travel to and from work as the employee goes from site to site.
29 Thus, if we are to regard Mr Bertapelle and Mr Davison as part of the 'construction workforce' we need to be satisfied that the nature of their work involved an element of follow-the-job. For example, if the two employees had a recognised office and were merely located at the construction site for the duration of the work and then returned to the recognised office, one would not regard them as part of the construction workforce for the purpose of determining an entitlement to a fares allowance as compensation for follow-the-job. On the other hand, if the nature of their work was such that they had no recognised office and went from site to site inspecting, auditing and managing the performance of the construction work, regardless of the fact that the construction workforce was mainly comprised of persons other than employees of SWC and regardless of the duration of the work at each site, then a case exists for the payment of a fares allowance if they are working in premises occupied by SWC that are not a 'recognised office or depot'.
30 It does not appear that in respect of the period we are concerned with that either Mr Davison or Mr Bertapelle had a 'recognised office' other than the office accommodation on the construction site. It was Mr Crabb's evidence that the PDO role was previously known as Project Engineer and Project Manager. He said, however, the role of Project Engineer and Project Manager had 'moved away from construction work' and their work had become 'administrative and managerial' and involved auditing and managing SWC's contracts with third parties for the design and construction of capital works. Mr Crabb said:
For major construction works, the project delivery team usually worked from an office built on site. That office contained all office equipment and services … that would be at any normal office.
31 We take it from that evidence that for major construction works Mr Bertapelle and Mr Davison were located on site, which would seem to suggest, at least in relation to major works, the nature of the work of Mr Bertapelle and Mr Davison involved going from site to site. We do not think that merely because some aspects of the work of Mr Bertapelle and Mr Davison changed as a consequence of the contracting out of capital works, with a greater emphasis on administrative and managerial functions (still involving the use of engineering skills), that this means they were no longer part of 'a construction workforce'. Such a workforce will be made up of persons with a wide range of skills, including those with administrative and managerial responsibilities. The construction workforce will be constituted by those persons engaged from time to time to work on the construction project and there is no basis for distinguishing between those members of the construction workforce who were employed or engaged by contractors and those employed by SWC assigned to work on the WSTP construction project. Mr Davison and Mr Bertapelle were assigned by SWC to work on the construction project.
32 That Mr Bertapelle and Mr Davison could be regarded as part of the construction workforce is strengthened by the nature of the work they performed at WSTP. In respect of Mr Bertapelle, he was the Site Safety Coordinator and Site Safety Committee Member, he was involved in physically rescuing people on site, that is, placing people on stretchers and assisting them into ambulances; he conducted weekly safety inspections that took nearly a full day and had powers to stop work; he coordinated shut downs and programmed works; and he was the Quality Checker. Mr Bertapelle estimated that he spent over 50 per cent of his time on the construction site dealing with a variety of construction issues, in particular, safety and quality.
33 In respect of Mr Davison, his primary duties, which consumed most of his time, required him to be physically on the construction site. He measured and assessed works completed on the site, liaised directly with construction staff on site and directly inspected site activities.
34 The history of Mr Bertapelle's employment with SWC also points to a role that involved going from site to site. He had been employed with SWC since 1990. His employment history shows that he worked as a Project Engineer at various sites and had been paid the fares allowance in the past in circumstances not dissimilar to WSTP. The only thing that appears to have changed from about the time Mr Bertapelle commenced working at the WSTP site, is that SWC began contracting out its capital works and Mr Bertapelle's role of Project Engineer changed to that of PDO. However, he was still required to be on site and to perform the role of PDO using his professional engineer qualifications. As we earlier observed, there was no evidence that prior to or during his stint at WSTP, Mr Bertapelle had a 'recognised office' other than at sites to which he had been assigned. Apparently, following completion of the construction project Mr Bertapelle is now located at the permanent offices at the Treatment Plant.
35 Mr Davison joined SWC in 1998. At that time he was directed to work at the Australian Water Technologies (a subsidiary of SWC) maintenance depot in Springwood where he received the fares allowance. He joined the SWC Graduate Program in early 1999, continuing his placement at Springwood until he returned to SWC in June 2000. In September 2001, he was placed in Wollongong. In February 2002, he was directed to work at WSTP. In February 2004, he was placed as a PDO in Sydney. Since November 2008 he has been a Project Manager in Sydney.
36 Mr Davison's situation is less clear than that of Mr Bertapelle. There is not the same history of moving from site to site. However, there was no evidence that Mr Davison had a 'recognised office' as his permanent workplace prior to or during his time at WSTP other than the site office.
37 We do not accept that there was any error in McKenna C making the following findings:
[18] The specific classifications of the employees during the period relevant to the claim for fares was unclear, but their jobs relevantly involved project delivery responsibilities. As described in Mr Crabb's evidence, Sydney Water considered the employees' role in the WSTP project as involving duties of an administrative, managerial and auditing nature, rather than being part of a construction workforce.