CMPA News - Issue 31, February 2007

News - Issue 34, August/September 2007

Feature Articles

· 2007 AGM & Dinner

Industry travels to Bendigo for the 2007 CMPA AGM & Dinner

· Standard Form Contracts

ACCC Proposes to Grant Authorisation to the CMPA

· CMPA Activities 2006-07

Summary of CMPA Activities Over the Past 12 Months

Regular Items

· What’s News?

· Transport

· Business

· Submissions and Issues

· Education

· Safety

· DPI Update

· CMPA Publications

2007 AGM & Dinner

Industry travels to Bendigo for the 2007 CMPA AGM & Dinner

The 2007 CMPA Annual General Meeting & Dinner was held in Bendigo on Saturday 11 August and was attended by over 160 CMPA Members and others from the industry.

Saturday afternoon saw many familiar faces arriving at the All Seasons Quality Resort as they checked into their onsite accommodation in readiness for the dinner that evening.

With the formal proceedings of the Annual General Meeting being completed at just after 6pm, attendees moved to the Conservatory for the Annual Dinner. Attendees entered the Conservatory through the court yard and were greeted by the friendly William Adams and Caterpillar Institute staff who sponsored the Registration Area and assisted with handing out the Show Bags as sponsored by Terex Jaques.

Pre Dinner Drinks sponsored by Groeneveld Australia had the evening off to a good start with a magician sponsored by Delta Rent giving the guests something to talk about.

A special thank you to Warren Colbert of Delta Rent for enthusiastically fulfilling the role of Master of Ceremonies. A well known face in the industry, Warren undertook his MCing duties in a light-hearted manner and kept the attendees entertained throughout the evening.

Every attendee received a set of engraved Glass Coasters as a registration gift, which was generously sponsored by Orica Quarry Services and Impact Drilling.

The support of Sandvik Mining & Construction and Crushing & Mining Equipment ensured the Conservatory was well laid out with signage, whilst WAM Australia provided the table centrepieces which certainly added to the atmosphere.

Early in the evening John Mitas, Manager Minerals & Extractive Operations, provided an interesting presentation on the history of Victorian quarries.

All Seasons Quality Resort served up three delicious courses with the menus for the dinner sponsored by CJD Equipment.

The All Seasons beverage package complemented the menu selection with the red wine sponsored by Komatsu Australia and the white wine sponsored by Luxton Plant.

The caricaturist, sponsored by Hitachi, was kept busy for quite a few hours with a steady queue of people eager to obtain a comical memento of the dinner, whilst a DJ sponsored by Crushing Equipment provided background music throughout the evening.

A special thank you to the guest speaker for the evening, Alan Wilkins of E B Mawson & Sons, for his commendable presentation.

A clever combination of insight, knowledge and entertainment, Alan provided a history of E B Mawson & Sons and how it has evolved into one of the biggest and most successful businesses in our industry.

Alan had all attendees listening attentively and enjoying the personal anecdotes that he had expertly woven into his presentation.

Attendees who RSVP’d early for the Annual Dinner were entered into the Early Registration Raffle with winners receiving an accommodation voucher valued at a few hundred dollars! Thank you to Indeco Australia and Belmont Diesel who provided these vouchers.

A sticker under a seat at every table saw quite a commotion as the 20 winners removed their stickers and proceeded to the stage!

A special thank you to all of the Associate Members who sponsored the 2007 Annual Dinner, without such generous support, these events would be unachievable.

We look forward to seeing you all again next year at the 2008 Annual General Meeting and Dinner to be held in Melbourne. Standard Form Contracts

ACCC Proposes to Grant Authorisation to the CMPA

Two standard form contracts released by the Construction Materials Processing Association are expected to improve efficiency, productivity and reduce uncertainty in quarry material suppliers business relationships with purchasers and also owner drivers.

The agreement between members of the CMPA to prepare and publish two standard form contracts, one relating to the Supply of Materials and the other for the contracting of Owner Drivers has been authorised by the Australian Competition and Consumer Commission (ACCC).

The CMPA said the standard forms were designed to provide clarification in dealings which have in many cases, been subject to misunderstanding or dispute.

In authorising the agreement to prepare and publish the agreements the ACCC considered any anti-competitive effect of the agreement and any public benefit arising from it and in doing so considered the detail of the contracts. It concluded that there was likely to be a net public benefit.

The Chairman of the ACCC, Mr Graeme Samuel, said “The ACCC considers that the conduct relating to the supply contract will result in public benefit as a result of greater certainty in legal relationships, transaction cost savings and enhanced compliance with legislative requirements.”

CMPA Chairman Grant Phillips said the forms removed uncertainty and expense for quarry owners and owner drivers or material buyers in business dealings.

“We are seeking to provide clarification for each party involved – whether it is an owner driver undertaking delivery work for a quarry or a customer purchasing materials,” Mr Phillips said.

“We have made every effort to ensure the forms are scrupulous in detail and fairness and function to streamline business operations for all parties,” Mr Phillips said.

“The industry has relied for too long on agreements sealed only with a handshake, or orally and often without even a written order form for the supply of material or the contracting of owner driver services,” Mr Phillips explained.

“While we recommend use of the standard forms as guidance only, and there is certainly no compulsion for any CMPA member, contractor or owner driver to use them as is, or amended, we do believe the forms can deliver a greater deal of business efficiency,” Mr Phillips explained.

The CMPA retained Competition Economic Services Pty Ltd to develop the contracts.

CES director Lindsay Coombs said he was surprised to learn there were few written contracts to set out responsibilities and obligations of parties.

“We have worked to eliminate that scenario and develop a contract which can be used to record these important details,” Mr Coombs said.

“From my experience in the predecessor organisation to the ACCC, I was convinced that a common form template covering all potential requirements of a contract would provide quarry suppliers with a cost effective and practical starting point for contracting,” he said.

“With experience in its use parties should get benefits from more quickly being able to conclude a contract.”

The Supply contract developed is based on the VicRoads head contract and is particularly suitable for contracts over $80,000. However, it can also be used for contracts of lesser value, according to Mr Coombs.

“In developing the Owner Driver contract we have taken into account the chain of responsibility which is now incorporated in road laws nationally. We have also incorporated the payment procedure set out in the Building Industries Security of Payment Act 2002 which if adopted by suppliers as required by law, should ensure prompt and fair payment from contractors and a fair dispute resolution system,” Mr Coombs explained.

“It is important suppliers and contractors understand that the standard forms are a template and not a contract to mandate what happens between the parties,” Mr Coombs said.

“The form covers as many situations as could be identified. If any provision is not relevant to a particular contractual situation it is expected that the template will be amended,” he said.

“This is emphasised by the fact that there are a number of items in an attachment which have to be negotiated. While there are default amounts suggested for these Items some may be completely removed if they are not relevant.

“This procedure also reduces the risk of the use of the contracts being alleged to be anti-competitive. Any amount of money or time periods – basic issues in competition - are not set by the template but are left to be negotiated,” Mr Coombs said.

Parties to a contract are able to negotiate their own relationships with the “templates a fair and cost efficient starting point if so desired,” Mr Coombs said.

While the current contract relates to work with VicRoads as the principal, it is expected that the contract will be adapted for other major contractors such as local government, water and rail authorities. A version for contracts of lesser value is also planned for release.

The development of the Owner Drivers Contract has been undertaken using the same principles as the major contract and was precipitated by the requirement of the Owner Drivers and Forestry Contractors Act 2005 for a regulated contract for use in employing owner drivers.

In developing the Owner Driver’s contract, the CMPA recognised the existence of a similar document developed by the Transport Industry Council but believes this does not provide the certainty in describing the responsibilities and obligations of both parties in the quarry industry – a situation the CMPA believed left room for disputes to arise.

For any enquiries, contact Sarah Andrew on 03 5781 0655

Email:

CMPA Activities 2006-07

Summary of CMPA Activities Over the Past 12 Months

Over the last 12 months, the CMPA has been involved in a wide range of issues with the most notable being the continued development of the Crushing and Screening Reference Manuals to accompany Certificate II and III units of the Extractive Industries Training Package.

In addition, the CMPA has dedicated its resources in the following areas:

Submissions

Development and presentation of submissions to Government and other regulatory bodies including:

· Protocol for Environmental Management – Mining and Extractive

· Health and Safety Guidance – Alcohol and Other Drugs

· Draft Environment Guidelines ‘Management of Small Tailings Storage Facilities’

· National Mine Safety Framework – Strategy 5

· Native Vegetation Regulation and the Extractive Industries

· VEAC Red Gum Forests Investigation

· Proposed Occupational Health and Safety Regulations 2007

· Management of OHS in Construction Material Processing

· Extractive Industry Development Regulations

· Draft Aboriginal Heritage Regulations 2007

· Review of Scheduled Premises and Exemptions Regulations

· Review of National Guidelines for Integrating OHS into National Industry Competency Standards

Publications

Developing and publishing various publications including:

· Transport Contract, including gaining authorisation from the ACCC

· Major Works Contract, including gaining authorisation from the ACCC

· On Road Trucks Checklist

· Cartage Register

· New website including a restricted area with information and tools for Members

· Reviews of publications including:

· Work Safely Reference Manual

· Mobile Plant Checklist

· Fixed Plant Checklist

· Wage Book

· Issue Resolution Pad

Education

Continued training of extractive industry personnel in the Certificate II units of competency:

· Work Safely

· Conduct Local Risk Control

· Perform Basic Cutting & Welding

· Service & Handover Front End Loader

· Work Safely at Heights

· Running Effective Meetings

· Conduct Crushing Operations

Along with the development of resources for:

· Work Safely at Heights

· Running Effective Meetings

· Conduct Crushing Operations

· Welding Lifting Lugs onto Manganese

Workshops/Forums & Resulting Documentation

· Nevett Ford WorkChoices Briefing: Workplace Agreements for the Quarrying Industry

· Transport Forum 2 – Impact of the Owner Drivers & Forestry Contractors Act and release of Conditions of Contract for Hiring Cartage Contractors to Transport Quarry Materials

· General Meeting – update of the Extractive Industries Development Act, transition to WorkCover as the industry regulator, removal of asbestos from recycled construction and demolition material

· Conveyor Workshop – hazards and risks associated with the operation of conveyors

Other Projects

· Development of Medical Templates for employee health monitoring

· Completion of the Dust Management Guidelines

· Participation in the RIISC National Training Package Consolidation Project

· Participation in the 2007 Australian Construction Equipment Expo

CMPA Member Briefing

Guidelines for Native Vegetation Management / Mobile Plant ‘Add-Ons’

Date: Friday 12th October 2007

Time: 1.30pm—5.00pm

Location: William Adams, Laverton

Draft Guidelines for Native Vegetation Management

The Draft Native Vegetation Management Guidelines for the Extractive Industry have been released for comment.

The CMPA is a member of the Working Party assigned to develop these guidelines. Ensure you participate in the briefing to contribute to the draft. Help us to help you!

JSG Industrial Systems—Automatic Lubrication

Automatic lubrication systems are a precise and extremely efficient method of lubricating your equipment. Automatic lubrication reduces processing costs thereby allowing companies to increase profits and remain competitive in the marketplace.

JSG Industrial Systems—Fire Suppression

Fire suppression system protects against fires that occur in the engine environment and also other Class B risks such as oil pumps, hydraulic equipment and diesel fuel systems. In the case of a fire, the foam fire suppression system can be manually activated, or if no one is present the fire sensors will activate the system automatically.

Caterpillar Institute—Integration between mobile plant licenses and the Extractive Industries Training Package

Throughout the industry there is confusion regarding the Licensing and Competency Assessment requirements for employees that operate plant and equipment. Much of this confusion arises as a result of the requirements of government authorities such as WorkSafe and the requirements under the National Competency Standards. Raylene West, General Manager of the Caterpillar Institute, will provide information on the current requirements and the governments move to integrate licensing with the National Training Packages.

Galesafe Weighing—Hydraulic Scales on Wheel Loaders