PB Foods limited operations enterprise agreement 2005

AG 125 of 2005

1. - TITLE

This Agreement will be referred to as the "PB Foods Limited Operations Enterprise Agreement 2005”.

2. - ARRANGEMENT

1. - Title

2. - Arrangement

3. - Commitment

4. - Intent

5. - Area & Scope, Incidence & Relationship to Parent Awards

6. - Term

7. - Parties

8. - Contract of Employment

9. - Wage and Allowance Increases

10. - Payment of Wages

11. - Bonuses

12. - Hours of Work & Work Cycles

13. - Rostered Days Off

14. - Overtime

15. -Shift Work

16. - Annualised Wage Employees

17. - Meal Breaks, Rest Pauses & Cold Breaks

18. - Public Holidays

19. - Annual Leave

20. - Long Service Leave

21. - Sick Leave

22. - Parental Leave

23. - Bereavement Leave

24. - Special Leave

25.Dispute Settlement Procedure

26. - Union Business

27. - Introduction of Change & Redundancy

28. - Protective Clothing & Equipment

29. - Training

30. - Salary Sacrificing for Superannuation

31. - Reviewing of Agreement

APPENDIXES

Appendix 1 -Classifications & Wage Rates

Appendix 2 -Specific Conditions of Employment

Appendix 3 -Bonus Scheme

Appendix 4 - Equal Employment Opportunity & Affirmative Action Program

Appendix 5 - Order of the WAIRC Application No. 151 of 1999

Appendix 6 - Operators 12 hour Shift Employees 2004

Appendix 7 - Memorandum of Understanding – FDC 2004

3. - COMMITMENTS

(1)The Company is committed to a continued relationship with its’ employees and their Unions and will not engage new employees under Workplace Agreements provisions during the life of this Agreement.

(2)The Company remains committed to providing resources to properly develop key performance indicators (KPI’s) to assist in achieving productivity bonus payments.

(3)Commitment to Job Security

The Company recognises the concerns of employees and the Unions regarding job security. The Company believes that true participants through continuous improvement processes is the way to ensure a future for the employees with the Company.

As part of its commitment to job security and to training for its employees, the Company will offer work to employees wherever possible before that work is contracted out.

The parties acknowledge the need for contract labour to be used from time to time and will continue to consult on this issue as required.

(4)Commitment to Communication & Continued Relationship

(a)The Company recommits to fostering an effective communication system in consultation with its employees. Thus ensuring that its’ employees are aware of the issue that affect them and that they receive regular feedback on matters relating to all areas of their work.

(5)Commitment to Drivers

The parties agree to research and develop options for an annualised wage and alternate working arrangements, where appropriate, for implementation during the life of this agreement.

(6)Commitment to Clerks

The parties agree to review current classifications within the first six months of this agreement.

4. - INTENT

(1)The Agreement reflects an ongoing commitment by the parties to continue to cooperate and consult in working to make PB Foods Ltd, the safest, most productive, efficient and internationally competitive high quality sweet and savoury dairy and ice cream producer in Australia.

(2)All the parties recognise the right and responsibility of the Company to manage its operations in line with established consultative processes.

(3)The Company, Unions and employees will work to ensure this Agreement is effective and where any part of this Agreement requires interpretation, it will be interpreted in the context of the commitments and intent expressed in this clause.

5. - SCOPE & RELATIONSHIP TO AWARDS

(1)This Agreement applies to and is binding on the parties to this Agreement and to employees engaged in the classifications covered by this Agreement. It is estimated that this Agreement will apply to 395 employees.

(2)During it operation, this Agreement will be read and interpreted wholly in conjunction with the following Awards, as varied from time to time, applying to the employees at the date of this Agreement:

(a)Transport Workers (General) Award No. 10 of 1961;

(b)Metal Trades (General) Award 1966 No 13 of 1965;

(c)Laboratory & Technical Employees (Peters (WA) Limited) Award 1971;

(d)Clerks' (Wholesales and Retail Establishments) Award No 38 of 1947; and

(e)Food Industry (Processing and/or Manufacturing) Award 1991

Where there is any inconsistency between this Agreement and any relevant award, this Agreement will prevail to the extent of any inconsistency.

6. - TERM

(1)This Agreement will operate from the beginning of the first pay period on or after 1 June 2005 and will remain in force until 1 June 2008.

(2)After the expiry of this term, this Agreement will continue in force unless replaced by all the parties to this Agreement.

7. - PARTIES

The parties to this Agreement are:

(1)PB Foods Ltd and its employees who are engaged in classifications covered by this Agreement in or in connection with the Company's operations at Balcatta, O’Connor and Country Distribution Depots at Broome, Bunbury, Albany, Kalgoorlie, Esperance, Northam and Geraldton.

(2)The Transport Workers Union of Australia, Industrial Union of Workers, Western Australian Branch (the TWU).

(3)The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Workers Union of Australia, Engineering and Electrical Division, Western Australian Branch (the CEPU).

(4)The Australian Manufacturing Workers' Union of Western Australia (the AMWU).

(5)The Australian Municipal, Administrative, Clerical, and Services Union of Employees, WA Clerical and Administrative Branch (the ASU).

8. - CONTRACT OF EMPLOYMENT

(1)An employee may be engaged as:

(a)A full-time employee engaged to work 38 hours per week (excluding over time).

(b)A part-time employee, (excluding Maintenance and Drivers) , engaged to work regular weekly hours subject to:

(i)A maximum of 38 weekly ordinary hours per week (ie exclusive of overtime);

(ii)The minimum hours for part-time workers are to be determined on an annual basis. This will be 780 hours per annum;

(iii)Minimum of four ordinary hours per day; and

(iv)On no more than 5 separate attendances per week.

(c)A temporary employee, engaged to work for a fixed term determined in advance on a full-time or part-time basis for absence related to the taking of long service leave, workers’ compensation, or extended for reasons agreed to by the relevant Union and Company.

(d)A casual employee, engaged by the hour subject to:

(i)A maximum of 38 weekly ordinary hours (ie exclusive of overtime);

(ii)A minimum of four ordinary hours per day ; or

(iii)On no more than 5 separate attendances per week.

(2)Casual Employees

(a)Casual employees are not entitled to the benefits of Clause 18 - Public Holidays, Clause 19 - Annual Leave, Clause 21 - Sick Leave, Clause 22 - Parental Leave, Clause 23 - Bereavement Leave and Clause 27 - Introduction of Change and Redundancy or as otherwise prescribed by this Agreement.

(b)Where practicable, the Company will notify casual employees that they are not required for work on the next working day. If a casual employee presents for work on a day they would reasonably have expected to work without having been notified by the Company the day before that they were not required, they will receive four hours pay at the applicable casual rate.

(3)Probationary Employees

An employee, other than a casual employee, may be engaged for probationary period of up to 6 months on the following basis:

(a)The Company will advise an employee on or before commencement of their employment what the probationary period will be;

(b) On commencement of employment the employee will be advised that employment beyond the probationary period is not guaranteed;

(c)Regular performance reviews will be conducted during the probationary period;

(d)Any performance deficiencies will be addressed and the employee will be allowed an opportunity to correct those deficiencies during the probationary period;

(e)If, at any time during the probationary period, either the employee or the Company give one week's notice of termination of employment, the employee's employment will end; and

(f)If at the end of the probationary period, a decision is made not to offer further employment, the probationary employee’s employment will end.

(4)It is a condition of employment that each employee must:

Perform work that the Company, reasonably requires and directs taking into account the employee's skill, competence and training, including;

(a)Perform all duties within the employee's classification;

(b)Perform work without regard to any demarcations or limitations;

(c)Transfer between duties including, in the case of drivers, transfer between various runs as required by the Company without restriction;

(d)Work reasonable overtime as required by the Company;

(e)Comply with all Company safety regulations, policies and procedures and Government Regulations;

(f)Comply with the conditions of employment set out in Appendix 2 - Specific Conditions of Employment;

(g)Use all protective clothing and equipment provided by the Company as directed; and

(h)Comply with all the Company regulations, policies and procedures.

(5)Disciplinary Procedure

(a)Where an employee engages in unsatisfactory conduct the Company may, where appropriate:

(i)informally counsel the employee;

(ii)verbally warn the employee;

(iii)warn the employee in writing;

(vi)suspend the employee without pay; or

(v)dismiss the employee with notice or with pay in lieu of notice.

(b)Where the Company engages in a discussion with an employee concerning conduct of any employee, which may lead to dismissal other disciplinary procedures or counselling the employee can elect to have another employee or a Union representative present. The representative of the Company will remind the employee of that entitlement at the beginning of the discussion.

(c)When counselling or warning an employee concerning misconduct engaged in by that employee, the Company representative will:

(i)specifically identify the conduct complained of;

(ii)explain why the conduct is unacceptable by the Company; and

(iii)explain the consequences if the employee again engages in that misconduct.

(d)The Company will not keep a record of any informal counselling of any employee. Where a record is kept of a verbal warning given to an employee, the employee and representative present will be given the opportunity to verify the accuracy of the record.

(e)Nothing in this clause affects the Company's right to dismiss an employee without notice for misconduct, which justifies summary dismissal.

(6)Stand Downs

The Company may deduct payment for any day or part day on which an employee, other than an apprentice, cannot be usefully employed arising out of any pause in operations, either wholly or partially, due to industrial disputes including any strikes, bans or limitations or any cause for which the Company is not reasonably responsible.

(7)Annual Shutdown of Ice Cream Plant

The Company shall post or cause to be posted by way of three (3) months notice, in a conspicuous position in the Ice Cream Manufacturing area, so as to be easily accessible to, and easily read by, every employee employed therein, a notice showing:

(a)the date of commencement of the annual one week shutdown of Ice Cream Manufacturing, which will coincide with the April or July school holiday period;

(b)the names of the employees affected by the shutdown;

(c)advice that the shutdown is for the purpose of granting annual leave; or

(d)the employee many choose to take unpaid leave in preference to annual leave;

(e)employees who have exhausted annual leave entitlements may register for paid work in other areas of the Company subject to work being available and the work to be performed by the employee is within the limits of the employee’s skills, training and competence.

(8)Termination of Employment

(a)The notice, or pay in lieu of notice or forfeiture of pay as the case may be, to be given by the Company or the employee to terminate employment is:

(i)for casual employees - one hour's notice;

(ii)or all other employees - in accordance with the provisions below:

Period of Continuous ServicePeriod of Notice

Less than 1 year 1 week

1 year but less than 3 years2 weeks

3 years but less than 5 years3 weeks

5 years and over 4 weeks

Employees with 2 or more years service who are 45 years of age or older at the date of termination will be entitled to one additional week's notice.

(b)An employee will be entitled to up to eight (8) hours time off per week during the notice period to seek other employment, by arrangement between the employee and the Company.

(c)Payment or forfeiture of wages in lieu of notice will be calculated on a basis of the ordinary time wages the employee would have received had the employee worked during the period of notice.

(d)The Company may dismiss an employee without notice for misconduct, which justifies summary dismissal, and in such cases, wages will be paid up to the time of dismissal only.

(e)Annual leave accrued by an employee and not taken at the date of termination of employment will be paid to the employee as follows:

(i)Any leave accrued in a completed qualifying period will be paid in accordance with subclause (3) of clause 19 - Annual Leave or Clause 16 Annualised Wages;

(ii)If after one (1) month's continuous service in any qualifying twelve (12) month period an employee lawfully leaves their employment or is terminated by the Company through no fault of the employee, the employee will be paid pro-rata annual leave on the basis of 2.923 hours pay at the employee's ordinary rate of wage for each completed week of continuous service; and

(f)Long service leave (LSL) accrued by any employee and not taken at the date of termination of employment will be paid in accordance with the provisions referred to in Clause 20 - Long Service Leave.

(9)If requested the Company will provide the employee with a written statement setting out the period of the employee's employment, and the employee's classification or the type of work performed by the employee.

9. – WAGE AND ALLOWANCE INCREASES

(1)The applicable weekly wages payable in Appendix 1 will be increased as follows during the term of this Agreement:

(a)An increase of 4% payable from the first pay period on or after 1 January 2006.

(b)A further increase of 3.5% payable from the first pay period on or after 1 January 2007.

(c)An increase of 3.5% payable from the first pay period on or after 1 June 2008 which will effectively form part of the first increase for the next agreement between the parties.

(2)The Parties agree to undertake a broad banding exercise of packing duties by January 2007.

(3)All allowances other than loadings paid to casual employees and annual leave loading will be adjusted at the end of each year of the agreement to reflect the annual CPI percentage change in weighted CPI average for Perth onlyto the end of the proceeding March quarter, as determined by the Australian Bureau of Statistics.

10. - PAYMENT OF WAGES

(1)Employees' wages will be paid each week or fortnightly, on any set day Monday to Friday, by direct transfer into a bank or financial institution nominated by the employee.

(2)Upon termination an employee will be paid before leaving the Company premises or alternatively (except for casual employees) an E.F.T or cheque for the amount due may be forwarded to the employees last known address within 48 hours of termination.

(3)A full time employee working 152 ordinary hours per four week cycle not working regularly 38 hours each week or 76 hours each fortnight will, be paid for 38 ordinary hours each week or 76 ordinary hours each fortnight.

(4)Where the system of banking of RDO's is introduced pursuant to Clause 13 - Rostered Days Off a full time employee may be rostered to work up to 160 ordinary hours per four week cycle but continue to receive 38 ordinary hours pay per week or 76 ordinary hours pay per fortnight provided that once the banked RDO's are taken as time off the average weekly number of ordinary hours worked each week is 38.

11. - BONUSES

(1)From 1 June 2005 a new bonus as out-lined in Appendix 3– Bonus Scheme, will be introduced for the 12 month period to 30 May 2006 and payable in August or September 2006. Employees will be paid a cash bonus of 0-10% or part thereof. Up to 5% will be payable on achieving set targets and the remaining up to 5% will be payable on stretch. 70% of the bonus is based on achieving established corporate KPI’s and the remaining 30% is based on achievement of departmental KPIs.

From 1 June 2006 a further bonus can be earned for the 12 month period to 30 May 2007 and payable in August or September 2007. Employees will be paid a cash bonus of 0-10% or part thereof. Up to 5% will be payable on achieving set targets and the remaining up to 5% will be payable on stretch. 70% of the bonus is based on achieving established corporate KPI’s and the remaining 30% is based on achievement of department KPIs.

From 1 June 2007 a further bonus can be earned for the 12 month period to 30 May 2008 and payable in August or September 2008. Employees will be paid a cash bonus of 0-10% or part thereof. Up to 5% will be payable on achieving set targets and the remaining up to 5% will be payable on stretch. 70% of the bonus is based on achieving established corporate KPI’s and the remaining 30% is based on achievement of departmental KPIs.

The total dollar value of the bonus achieved will be equalled shared amongst all of the employees covered by this agreement regardless of their classification or grading. Payment will be prorated for those employees who are part time, casual or absent for part of the qualifying year.

12. - HOURS OF WORK AND WORK CYCLES

(1)The maximum number of weekly ordinary hours shall be 38. A full time employee may work an average of 38 hours per week over a 152 hour four week cycle or, in cases in which subclause (3) of Clause 10 - Payment of Wages applies, a 160 hour four week cycle.

(2)Ordinary hours may be worked by:

(a)working 38 ordinary hours per week;

(b)working more than 38 ordinary hours per week and accruing the additional time to be taken under an RDO or as time off during the year at a time convenient to the employee and the Company;

(c)any arrangement as agreed between the Company and the employee concerned; or

(d)providing the hours worked in excess of ordinary hours will be paid in accordance with Clause 14 - Overtime of this Agreement.

(3)(3)Ordinary hours of work are to be worked:

(a)no more than five consecutive days Saturday to Friday between the hours of 6.00am and 6.00pm;

(b)maintenance employees will not be required to work more than 2 weekends in any month without the employees’ agreement.

(4)The ordinary hours of work may be altered by agreement between the employer and the majority of employees concerned.

(5)The ordinary hours of work will not exceed 10 hours on any day.

(6)Where ordinary rostered hours are worked on a public holiday, the shift will be paid at double time and a half. Where ordinary rostered hours are worked on Saturday the employee will be paid at the rate of time and a half. Where ordinary rostered hours are worked on a Sunday the employee will be paid at the rate of double time. These rates will be paid in lieu of any other shift allowance prescribed in this clause.