lhmu – pB FOODS LIMITED BEVERAGE PRODUCTION (BALCATTA) ENTERPRISE AGREEMENT 2005 - 2008

Agreement No. 72 of 2005

Table Of Contents

PART ONE APPLICATION AND OPERATION OF AGREEMENT

1.TITLE

2.DEFINTIONS

3.SCOPE

4.PERIOD OF OPERATION AND REPLACEMENT

5.RELATIONSHIP TO AWARDS AND AGREEMENTS

6.AIMS OF THE AGREEMENT

PART TWO CONTRACT OF EMPLOYMENT AND RELATED MATTERS

7.CONTRACT OF EMPLOYMENT

8.CONTRACTING OUT

9.HOURS

10.OVERTIME

11.MEAL BREAKS

12.REDEPLOYMENT

13.CLASSIFICATION STRUCTURE & WAGE RATES

PART THREE LEAVE ARRANGEMENTS......

14.SICK LEAVE

15.ANNUAL LEAVE – ANNUALISED WAGE EMPLOYEES

16.BEREAVEMENT LEAVE

17.PUBLIC HOLIDAYS

18.PARENTAL LEAVE

PART FOUR EMPLOYMENT OPPORTUNITIES AND PROFESSIONAL TRAINING

19.EQUAL EMPLOYMENT OPPORTUNITY

20.TRAINING

PART FIVECHANGE, CONSULTATION AND DISPUTE RESOLUTION

21.INTRODUCTION OF CHANGE

22.REDUNDANCY

23.DISPUTES SETTLEMENT PROCEDURE

24. BREAKDOWNS

25.TEAM NUMBERS

PART 6 UNION RIGHTS AND TRAINING

26.TRADE UNION TRAINING

27.ROLE OF UNION DELEGATES

28.WORKPLACE MEETINGS

29.PAYROLL DEDUCTIONS

30.AVAILABILITY OF AGREEMENT

31.PROTECTIVE CLOTHING AND EQUIPMENT

32.SALARY SACRIFICING FOR SUPERANNUATION

APPENDIX A NON – SHIFT WAGE RATES

APPENDIX B 10 HOUR SHIFTS

APPENDIX C 12 HOUR SHIFTS

APPENDIX D PROCESS CONTROL OPERATORS

APPENDIX E BONUSES AND KEY PERFORMANCE INDICATORS

APPENDIX F CIT AND HR CONSULTATION COMMITTEE CONSTITUTION

APPENDIX G MAINTENANCE FLEXIBILITY AGREEMENT

APPENDIX HEMPLOYEES ELIGIBLE FOR VOLUNTARY REDEPLOYMENT

PART ONE APPLICATION AND OPERATION OF AGREEMENT

1.TITLE

This Agreement shall be known as the LHMU - PB Foods Limited Beverage Production (Balcatta) Enterprise Agreement 2005-2008.

2.DEFINTIONS

“Agreement” means the LHMU - PB Foods Limited Beverage Production (Balcatta) Enterprise Agreement 2005-2008.

"Award" means the Dairy Factory Workers Award 1982.

"Company" means PB Foods Ltd.

"Commission" means The Western Australian Industrial Relations Commission.

"Union" means the Liquor, Hospitality & Miscellaneous Union, Western Australian Branch.

3.SCOPE

3.1This Agreement will be binding on PB Foods Ltd, the Liquor, Hospitality & Miscellaneous Union, Western Australian Branch, (“the Parties”) and all employees who are or who are eligible to be members of the Union. It is estimated that this Agreement will apply to 41 employees.

3.2The parties agree to oppose any attempt by any other person, employee or organizations to become a party to this Agreement.

4.PERIOD OF OPERATION AND REPLACEMENT

4.1This Agreement will operate from the commencement of the first pay period on or after 1 June 2005 and will remain in operation until 31 May 2008.

4.2The parties agree to commence negotiations for a new Industrial Agreement six months prior to the nominal expiry date of this Agreement. The terms of this Agreement will continue until such time as it is replaced by a new agreement.

5.RELATIONSHIP TO AWARDS AND AGREEMENTS

5.1This Agreement will be read and interpreted wholly in conjunction with the Award.

5.2Where there is any inconsistency between this Agreement and the Award, this Agreement will prevail to the extent of any inconsistency.

5.3From its commencement this Agreement replaces the LHMU – PB Foods Limited Beverage Production (Balcatta) Enterprise Agreement 2005 and any other registered or unregistered agreement made between the parties prior to the registration of this Agreement.

6.AIMS OF THE AGREEMENT

6.1This Agreement aims to facilitate better wages and conditions of employment for all workers employed hereunder, and to increase productivity and efficiency for the Company.

6.2This Agreement also aims to facilitate a more flexible workforce, to the extent that unnecessary demarcations between areas of work will be eliminated.

6.2.1This flexibility will be achieved only following a process of consultation between the parties and employees, resulting in agreement over relevant issues.

6.2.2Employees may be required to carry out a range of different duties involving selected tools, plants and equipment as agreed to by the consultative committee, the Union and the Company. Provided that this will be subject to employees being fully trained and the duties being safe, legal and within their skill and competence. For example, discussions and consultations will occur to examine which additional maintenance tasks on machines could be handled by Production Operators.

PART TWO CONTRACT OF EMPLOYMENT AND RELATED MATTERS

7.CONTRACT OF EMPLOYMENT

7.1An employee may be engaged as:

7.1.1a full-time employee or part-time employee;

7.1.2a temporary employee by agreement between the Company and the Union; or

7.1.3a casual employee, engaged by the hour subject to the maximum weekly ordinary hours (ie. exclusive of overtime) being thirty-eight (38). Such employment will be a period of up to one (1) month or for a period exceeding one (1) month by agreement between the Company and the Union.

7.2Where practicable, the Company will notify casual employees that they are not required to work on the next working day. If a casual employee presents for work on a day on which he or she might reasonably have expected to be required for work without having been notified by the Company, in accordance with this subclause that he or she is not so required, then such an employee will receive four hours pay at the appropriate casual rate.

7.3Probationary Employees

An employee other than a casual may be engaged for an initial probationary period of not more than three (3) months on the following basis:

7.3.1the Company will advise an employee in writing on or before commencement whether the employee is engaged for an initial probationary period, and if so, the length of the probationary period;

7.3.2regular performance reviews will be conducted during the probationary period. Employees have the right to have a union representative at such reviews;

7.3.3any performance deficiencies will be addressed with counselling and/or training and the employee will be allowed an opportunity to correct those deficiencies;

7.3.4the purpose of the probationary period is to allow both the Company and the employee to decide whether to continue the employment beyond the probationary period, and therefore the employee will be advised that employment beyond the probationary period is not guaranteed. The Union representative will be notified of the performance of employees on probation;

7.3.5if, at any time during the probationary period, either the employee or the Company give one (1) week's notice of termination of the employment, the probationary employee's employment will end; and

7.3.6if, at the end of the probationary period, a decision is made not to offer further employment, the probationary employee's employment will end.

7.4Beverage Production Employees

It is a condition of employment, in Beverage, that each employee must:

7.4.1perform work as the Company, may from time to time reasonably require, having regard to the limits of the employee's skill, competence and training;

7.4.2perform the full range of duties within the employee's classification, including any duties as may be directed by the Company having regard to the limit of the employee's skill, competence and training;

7.4.3perform work without regard to any demarcations or limitations, providing the work to be performed is within the employee's skill, competence and training;

7.4.4transfer between various departments without restrictions providing the duties are within the employee's skill, competence and training;

7.4.5work reasonable overtime as may be required by the Company;

7.4.6comply with all safety regulations, policies and procedures determined by the Company or as prescribed by Government Regulations;

7.4.7use, as directed by the Company, all protective clothing and equipment provided by the Company; and

7.4.8observe all the Company regulations, policies and procedures.

7.5Disciplinary Procedure

7.5.1Where an employee engages in unsatisfactory conduct the Company may, as appropriate:

7.5.1.1informally counsel the employee;

7.5.1.2verbally warn the employee;

7.5.1.3warn the employee in writing;

7.5.1.4suspend the employee with pay, the period of suspension will not exceed one (1) week; or

7.5.1.5dismiss the employee with notice or with pay in lieu of notice.

7.5.2Where disciplinary discussions are held with an employee, the employee is entitled to elect to have either another employee or a Union representative present during the discussion. The representative of the Company will remind the employee of that entitlement at the beginning of the discussion.

7.5.3When an employee is counselled or warned of unsatisfactory conduct the Company's representatives will:

7.5.3.1specifically identify the conduct complained of;

7.5.3.2explain why the conduct is unacceptable by the Company; and

7.5.3.3explain the consequences if the employee again engages in that unsatisfactory conduct.

7.5.4The Company will keep no record of informal counselling of an employee. Where a record is kept by the Company of a verbal warning given to an employee, the employee and any other employee or Union representative present will be given the opportunity to verify the accuracy of the record within a reasonable time of the warning being given. A record of the warning will not be kept for more than twelve (12) months.

7.5.5Nothing in this clause affects the Company's right to dismiss an employee without notice for misconduct which justifies summary dismissal. Except in the case of misconduct which justifies summary dismissal, employees shall only be dismissed as a last resort, after the alternative disciplinary measures set out above have been implemented and have failed to resolve the matters in dispute.

7.6Performance Counselling

7.6.1If the Company considers that the performance of any employee is unsatisfactory, the Company's representative will:

7.6.1.1Discuss the matter informally with the employee to ascertain the cause/reason for poor performance and look at:

(a)the areas of the employee's performance which are unsatisfactory;

(b)the reasons for the employee's unsatisfactory performance;

(c)the steps available to the Company which would assist the employee to perform satisfactorily, which may include arranging for the employee to receive training or additional training or altering the employee's working conditions; and

(d)the steps available to the employee to remedy the unsatisfactory performance (this includes independent professional counselling).

NOTE: The Union will be kept informed at all times.

7.6.2During any such informal discussions, the employee is entitled to elect to have a Union representative present during the discussion. The representative of the Company will remind the employee of that entitlement at the beginning of the discussion.

7.6.3If, after informal discussions, the Company still considers that the performance of the employee is unsatisfactory, the Company will advise the employee in writing of:

7.6.3.1the areas of the employee's performance which are unsatisfactory;

7.6.3.2the Company's response to any reasons offered by the employee for his or her unsatisfactory performance;

7.6.3.3the steps which would assist the employee to perform satisfactorily;

7.6.3.4the steps required of the employee to remedy the unsatisfactory performance; and

7.6.3.5the time allowed for improvement before further assessment.

NOTE: The Union will be kept informed as to what progress has been made.

7.6.4Where the required improvement has not occurred following the steps set out in subclause 7.6.1 and 7.6.3 above, give the employee a written warning that failure to improve performance within a given time may lead to the employee's suspension or dismissal from employment, and setting out the steps necessary to be taken by the employee to improve their performance to a satisfactory level;

7.6.5Where the performance of an employee then continues to be unsatisfactory, suspend the employee with pay for a time specified in writing by the Company or dismiss the employee with notice; and

7.6.6If despite the efforts of the parties, the above process fails to bring about a resolution of the issue, the matter may be referred without prejudice to the Commission for conciliation or arbitration as required.

7.7Termination of Employment

7.7.1The minimum notice required to be given by the Company or the employee to terminate employment will be:

(a)for casual employees – one hour's notice;

(b)for probationary employees – as provided in subclause 7.3 Probationary Employees of this clause; and

(c)for all other employees – in accordance with the provisions below:

Period of Continuous ServicePeriod of Notice

Not more than 1 year...... 1 week

More than 1 year but not more than 3 years...... 3 weeks

Not more than 5 years...... 3 weeks

More than 5 years...... 4 weeks

The period of notice is increased by one (1) week if the employee is over forty-five (45) years old and has completed two (2) years' continuous service with the Company.

7.7.2By arrangement between the employee and the Company, an employee will be entitled to up to eight (8) hours time off per week during the notice period for the purpose of seeking other employment.

7.7.3Notice of termination of employment may also be affected by the payment or forfeiture of wages for the relevant notice period, providing that employment may be terminated by part of the period of notice specified and part payment or forfeiture of wages in lieu of notice.

7.7.4Payment or forfeiture of wages in lieu of notice will be calculated on a basis of the wages the employee would have received for the ordinary time the employee would have worked during the period of notice had the employee's employment not been terminated.

7.7.5Nothing in this clause prevents the Company and the employee agreeing to a lesser period of notice than outlined by this clause. Permission to do so will not unreasonably be withheld.

7.7.6The Company may dismiss an employee without notice for gross misconduct, which justifies summary dismissal, and in such cases wages will be paid up to the time of dismissal only.

8.CONTRACTING OUT

8.1The Company is committed to wherever possible conducting its operations via directly employed labour. Where it is anticipated some or any of its operations will be outsourced, the Company shall consult with the Union prior to a decision being made. The Company will offer work to existing employees wherever possible before that work is contracted out.

8.2The parties agree that the use of contract labour or labour supplied by any contract labour supplier as casual labour hire will not undermine the integrity of workplace safety or the employment conditions under this Agreement.

8.3The Company commits to exploring the complete phasing out of all contract labour or labour supplied by any contract labour supplier as casual labour hire by June 2005.

9.HOURS

9.1Unless otherwise provided under this clause, ordinary working hours shall be 38 rostered hours per week as provided by the Award.

9.2All overtime shall be paid double the rate applicable to the employee’s appropriate classification under Appendix A of this Agreement.

10 Hour Shifts

9.3The 10 Hour Shift structure (in accordance with the roster in Appendix B) shall provide:-

9.3.13 shifts per week of 10 hours per week; plus

9.3.21 shift per week of 8 hours per week; and

9.3.3Ordinary hours shall be not more that 10 hours per 24 hour period.

12 Hour Shifts

9.4Subject to 9.5, the Employer may implement a 12 Hour Shift Structure to replace the 10 Hour Shift Structure, with an average of 38 hours per week over an 8 week period as in accordance with the roster in Appendix C.

9.5The 12 Hour Shift Structure shall provide:-

9.5.13 consecutive shifts per week of 12 hours and 15 minutes (except for Friday evening shifts, which shall be 12 hours); plus

9.5.21 shift every 8 weeks of 9 hours, commencing at 6am Wednesday; and

9.5.3no rostered shifts on at least 7 consecutive days in every 4 week period.

9.5.415 minutes of each shift (except for the Friday evening shift) shall be dedicated to handover to the next shift.

9.5.5Ordinary working hours shall not be more that 12 hours and 15 minutes per 24-hour period.

9.5.6There shall be a break of at least 10 hours between all shifts.

9.5.7Employees working a twelve (12) hour or longer shift shall be entitled to two (2) thirty (30) minute long paid meal breaks during each shift. Meal breaks shall be taken at times determined by the teams. The teams must ensure that such breaks occur at times that allow for optimum machine utilisation, and meet production requirements.

9.5.8Subject to clause 17 – Public Holidays, Employees may be rostered to work on up to 8 Public Holidays without additional payment.

9.6If the 12 Hour Shift Structure is deemed to not be effective during the initial three (3) month trial period after its commencement date, the employees will revert to the shift structure referred to in 9.3.

After the three (3) month trial period, if the Company wishes to change the 12 Hour Shift Structure, the Union will be notified. The Company, Union and employees will then enter into a consultative process to agree on the best alternative work arrangement within a 3 month period (including rosters and remuneration) to meet the new demands of the business. The 12 Hour Shift Structure will continue until it is replaced by agreement.

Process Control Operators

9.7Process Control Operators will be required to staff the Control Room over a seven (7) day period and will work a roster in consultation with the Production Manager Beverage that meets the operational requirements of the Beverage Plant. The current manning level of five (5) employees will continue. They may be required to work up to 2176 hours per year with no employee required to work beyond twelve and a half (12½) hours in any shift or more than 168 hours in a four (4) week cycle.

9.8 Process Control Operators will not be entitled to accrue rostered days off.

9.9 The Process Control Team will continue to undertake to cover all annual leave and sick leave absences with no further cost being incurred by the Company.

9.10The Company will continue its undertaking to provide relief cover in the event of long-term illness or other absence it may deem appropriate.

9.11Process Control Operators will provide coverage for call-outs. A call-out roster will operate to ensure that an operator is available at all times to meet operational requirements identified by the Company. The Company undertakes to give fair and reasonable notice of changes to operational requirements wherever possible, which require the attendance of the operator on call.

Rosters

9.12Rosters shall not be changed without a minimum of one months’ notice being given to the Employees affected.

10.OVERTIME

10.1All hours worked outside ordinary hours of work will be paid at the rate of 200% of the ordinary (non-annualised) hourly rate.

10.2Subject to 10.3, no employee will be required to work beyond twelve hours and 15 minutes in any one shift.

10.3Given reasonable notice, employees may by agreement work beyond 12 hours and 15 minutes, and such time worked shall be considered overtime pursuant to subclause 10.1 above.

11.MEAL BREAKS

11.1Changes to meal breaks will be done in consultation and agreement with the Union, employees and management in order to accommodate operational needs.

11.2Meal Allowance on Overtime

Where an employee is required to work overtime for more than two (2) hours he/she will be paid a $8.35 meal allowance.