Cold Storage and Ice Employees (Northumberland) Award [2003] NSWIRComm 419 (1 December 2003)

Last Updated: 22 March 2004

NEW SOUTH WALES INDUSTRIAL RELATIONS COMMISSION

CITATION : Cold Storage and Ice Employees (Northumberland) Award [2003] NSWIRComm 419

FILE NUMBER(S): IRC 33

HEARING DATE(S): 12/11/2003

EX TEMPORE DATE: 01/12/2003

PARTIES:

Australasian Meat Industry Employees' Union, Newcastle and Northern Branch

Australian Business Lawyers

JUDGMENT OF: Harrison DP Redman C Ritchie C

LEGAL REPRESENTATIVES

APPLICANT

Mr J Davis

Australasian Meat Industry Employees' Union, Newcastle and Northern Branch

RESPONDENT

Ms McDonnell

Australian Business Lawyers

CASES CITED: State Wage Case 2001 [2001] 104 IR 438

State Wage Case 2002 [2002] 114 IR 81

State Wage Case 2003 [2003] 121 IR 446

LEGISLATION CITED: Industrial Relations Act 1996

JUDGMENT:

- 2 -

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

FULL BENCH

CORAM: HARRISON DP

REDMAN C

RITCHIE C

Monday, 1 December 2003

MATTER NO IRC 33 OF 2003

COLD STORAGE AND ICE EMPLOYEES ( NORTHUMBERLAND) AWARD

Application by the Australasian Meat Industry Employees' Union, Newcastle and Northern Branch for variation re State Wage Cases 2001 and 2002.

JUDGEMENT

[2003] NSWIRComm 419

1 This is an application by Australasian Meat Industry Employees' Union, Newcastle and Northern Branch ("the union") for variation of the Cold Storage and Ice Employees (Northumberland) Award ("the Award") 326 IG 216 to give effect to the State Wage Case (SWC) Judgments of 2001 (2001) 104 IR 438 and 2002 (2002) 114 IR 81 and to reduce working hours from 40 per week to 38 per week

2 The matter was first before Mr Commissioner Redman on 25 March 2003 when the Award was varied by consent of the parties to give effect to the 2001 SWC decision with effect from the first pay period to commence on or after that date.

3 On that occasion the Commissioner directed the union to file and serve by 22 April 2003 a detailed application with contentions in respect to application of the 2002 SWC decision and reduction of hours.

4 The requisite documentation was filed on on 28 May 2003 and revealed that the Union sought application of the 2002 SWC prior to the twelve month qualifying period required by the Wage Fixation Principles. The reduction of hours was also pressed.

5 The matter was referred by the Commissioner to his Honour Justice Wright, President, for consideration of the Special Case Principles.

6 The matter was remitted to the Commission as presently constituted to be dealt with as a Special Case.

7 The matter was heard on 12 November 2003 subsequent to directions issued which had provided for further consultation and discussion by the parties at their request.

8 Mr Davis for the Union sought variation of the Award to implement the 2002 SWC from 25 March 2004 and reduction of ordinary working hours from 40 hours per week to 38 hours per week. Mr Davis provided details of the variations sought (exhibit 1) attached hereto.

9 Ms McDonell of Australian Business Lawyers (ABL) appeared on behalf of that organisation., There was no appearance by any other employer representative.

10 Ms McDonell enunciated consent to the variations sought, noting that the 2002 SWC is to apply from the first pay period to commence on or after 25 March 2004, twelve months after the 2001 SWC.

11 The parties were required to address Principle 7 of the Wage Fixation Principles, which requires the Commission to satisfy itself that the cost impact of a reduction in working hours is minimised.

12 Mr Davis submitted that cost minimisation measures found in the application are a reduction of the 20 hour minimum engagement for part time employees to 18 hours and the flexibility arrangements for the working of a 38 hour week. Mr Davis submitted that the introduction of leisure time credits, which allow accrual of up to five days per annum to be taken by the employee as required by the employer during periods when the employer's business is not operating at full capacity, significantly minimises the cost of the introduction of a 38 hour week. Mr Davis submitted that such arrangements allow for the employer to effectively have a second shut down to effect maintenance or to deal with diminution in capacity.

13 Mr Davis submitted that there is a further change to the method of payment of wages, providing a regularity of payment no later than Friday of each week within 15 minutes of the ordinary ceasing time, which Mr Davis submitted provided advantage to both employers and employees by regulating a practice in the industry which had hitherto exposed employers and employeee to inconvenience and cost.

14 Ms McDonell supported the submissions of Mr Davis. Ms McDonell submitted that there had been extensive and detailed consultation with the employer members of her organisation affected by this award, which had revealed that all but one had adopted a 38 hour week in practice and that the remaining employer was more than content with the introduction of the 38 hour week on an accrual basis as proposed by the application.

15 We are satisfied that the application meets the requirements of the Industrial Relations Act 1996 and the Wage Fixation Principles. The Award is varied in accordance with exhibit 1.

16 We note that the parties remain in discussion in respect to the implementation of the 2003 SWC (2003) 121 IR 446 and anticipate a 2004 SWC judgment, and will, subject to such arrangements concluded between them, make the appropriate application to deal with those issues such as they are advised.

17 The Cold Storage and Ice Employees (Northumberland) Award is varied in accordance with the amended application (exhibit 1) attached.

18 These proceedings are so concluded.

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LAST UPDATED: 22/03/2004