WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION
INDUSTRIAL RELATIONS ACT, 1979
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing, and Allied Workers Union of Australia, Engineering & Electrical Division, WA Branch
- and -
BHP Steel (JLA) Pty Ltd Site,
T/A BHP Building Products Myaree
(No. AG140 of 2000)
COMMISSIONER J.F. GREGOR 3 July 2000
BHP BUILDING PRODUCTS MYAREE ENTERPRISE AGREEMENT 2000/2001
ORDER
HAVING heard Mr J. Fiala for the applicant and Mr T Stockley for the respondent, the Commission pursuant to the powers conferred on it under the Industrial Relations Act, 1979, hereby orders:
THAT the agreement between the parties lodged in the Commission on 22 May 2000 entitled BHP Building Products Myaree Enterprise Agreement be registered in terms of the following schedule as an Industrial Agreement and replaces Industrial Agreement AG129 of 1999 which is hereby cancelled.
COMMISSIONER
BHP BUILDING PRODUCTS MYAREE ENTERPRISE AGREEMENT 2000/2001
1. TITLE
This Enterprise Agreement will be referred to as the BHP Building Products Myaree Enterprise Agreement 2000/2001
ARRANGEMENT
1 / Title2 / Arrangement
3 / Application Of Enterprise Agreement
4 / Parties To This Agreement
5 / Date And Period Of Operation
6 / Relationship To Parent Award
7 / Challenges Facing The Industry
8 / Principles Underpinning This Agreement
9 / Wage Increase
10 / Implementation Of The Steel Strategic Plan.
11 / Relationship Between The Parties
12 / Sick Leave.
13 / Long Service Leave
14 / Vision For Myaree
15 / Performance Related Payment Scheme
16 / Workers Compensation Provision
17 / Union Delegate Training
18 / Contractors
19 / No Extra Claims
20 / Discussions Regarding A Replacement Agreement
21 / Procedure For Resolving Claims, Issues And Disputes
22 / Superannuation and Salary Sacrifice of Contributions
23 / Cooperative Relationships with Union Representatives
24 / Signatories
Attachment 1 / Site Specific Business Improvement Measures
Attachment 2 / Wages Schedule as at 01/04/00 & 01/04/01
3. APPLICATION OF ENTERPRISE AGREEMENT
This agreement will apply to the BHP Steel (JLA) Pty Ltd site trading as BHP Building Products at Myaree which is covered by the John Lysaght (Australia) Ltd Award (No 27 of 1967).
This agreement supersedes the operation of Agreement AG 129 OF 1999
which is canceled by registration of this agreement .
This Agreement covers approximately 22 Employees.
4. PARTIES TO THIS AGREEMENT
The parties to this agreement are:
a) BHP Steel (JLA) Pty Ltd trading as BHP Building Products at Myaree;
b) Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Workers’ Union of Australia, Engineering and Electrical Division, WA Branch and its members;
c) All employees of BHP Building Products Myaree, whether members of the
organisation specified above or not, engaged in any of the classifications
contained in the John Lysaght (Australia) Limited Award (No 27 of 1967).
5. DATE AND PERIOD OF OPERATION
This agreement will operate from 1st January 2000 and the term will expire 31st August 2001.
6. RELATIONSHIP TO PARENT AWARD
This agreement is to be read and interpreted in conjunction with the John Lysaght (Australia) Limited Award (No 27 of 1967) and shall prevail to the extent of any inconsistency with that Award.
7. CHALLENGES FACING THE INDUSTRY
7.1 The rapid globalisation of world steel markets, increased imports, world-wide over capacity and the Asian crisis have combined to challenge the medium and long term viability of BHP Steel’s businesses. Price decreases have waned, but we face real price decline over the long term.
7.2 In October 1999 under the Steel Strategy Plan, BHP announced its intention to focus its steel operations on the manufacture and distribution of flat and coated products in the Australasian region, in order for the industry to deliver returns which exceed the cost of capital. As a consequence, this will see the divestment of Long Products, Packaging Products and our USA based businesses.
The divested businesses will have greater opportunity to prosper under a new owner which regards them as core assets.
7.3 Our collective focus over the term of this agreement will be to:
· Ensure all Steel businesses operate safely and efficiently.
· Maximise the value of the divested businesses through ongoing business improvement and sound industrial relations.
· Build a high performance, world’s best BHP Steel business which effects change and improvement swiftly.
· Treating people fairly and ensure every employee accepts responsibility for business outcomes.
8. PRINCIPLES UNDERPINNING THIS AGREEMENT
The principles which guided the parties in finalising the Agreement are:
8.1 Continuing to do whatever is safe, logical and legal to achieve operational and organisational excellence in our workplaces.
8.2 Maintaining competitive wages and conditions.
8.3 Minimising cost imposts on the business and readily support the implementation of cost and waste reduction initiatives.
8.4 Facilitating a smooth transition to divestment.
8.5 Eliminating the unnecessary impact of industrial action being borne by the business and employees.
8.6 Creating modern remuneration systems more closely aligned to the needs of the business and employees.
9. WAGE INCREASE
The following increases will apply to the total weekly wage (ie. award wage, leading hand allowances and bonus or equivalent) and dollar amount shift work allowances:
· 4% from first pay period commencing in April 2000.
· A further 3% from first pay period commencing in April 2001.
10. IMPLEMENTATION OF THE STEEL STRATEGIC PLAN.
10.1 The successful implementation of the Steel Strategic Plan is critical for BHP, BHP Steel and all employees. It will present significant challenges and require everyone working together to present the businesses in the most positive way to prospective owners. Business and safety performance must continue to be improved and the future owners must be confident to invest in these businesses.
10.2 The parties are committed to working cooperatively to ensure a period of stable industrial relations during the divestment process
11. RELATIONSHIP BETWEEN THE PARTIES
11.1 Whilst relationships have improved over the past 15 years, industrial disputation continues to impact negatively on some parts of the business and employees.
11.2 The parties recognise that to be “world’s best” effective processes need to exist to eliminate the need for time lost through industrial action and are determined to eliminate lost time from the industry.
11.3 To this end, unless otherwise agreed unnecessary, agreement will be reached by July 2000 on revised dispute settlement procedures which ensure:
· fair, reasonable and timely outcomes.
· the parties take primary responsibility for their industrial relationships.
· proper recognition of individual grievances.
· proper consideration of the merits of issues in dispute. This may involve embracing concepts such as cooling off periods, mediation, arbitration, etc..
· resolution of matters as far as practical within the workplace in which they arise.
· the needs of the business are taken into account.
· genuine commitment of all concerned to the agreed processes and procedures.
Endorsement by all employees and union officials and a formal education programme to implement the agreed procedures will be an integral outcome of these discussions.
11.4 In the interim the existing dispute settlement procedures in this agreement will be observed
12. SICK LEAVE
12.1 The parties to this and past agreements have supported the implementation of discretionary sick leave as part of a package of workplace reforms.
Discretionary sick leave when introduced provides a form of income protection in circumstances of journey and personal accident and illness.
12.2 The effective implementation of these arrangements including discretionary sick leave require at site level ownership and commitment. However, it is essential that discretionary sick leave arrangements include consideration for such things as:
· immediate notification of inability to attend work by the employee.
· effective and accurate attendance recording system.
· assist supervision to conduct attendance improvement interviews appropriately and to recognise good attendance.
· a clear and transparent procedure for managing employees with absentee problems.
· an effective review mechanism for extended sick leave periods (eg. up to and beyond two months) involving union representatives as appropriate.
· an effective appeals mechanism to allow questions of disputed managerial discretion to be, as necessary, ultimately considered by officers other than those involved in the decision at first instance.
13. LONG SERVICE LEAVE
13.1 The unions have advanced a claim for improved Long Service Leave (LSL) entitlements within the industry. BHP has raised concerns about the ability of the industry to sustain additional labour on-costs beyond those mandated by legislation.
13.2 Notwithstanding clause 19 of this agreement, leave is reserved to the unions to re-advance during the life of the agreement the matter of the rate of long service leave accrual.
13.3 State Long Service Leave provisions apply in each centre and these will continue. A pro rata payment for long service leave on termination of employment will be made in the following circumstances:
* at least 5 years of continuous service as an adult termination of employment by the Company for any reason other than summary dismissal; or termination of employment by the employee for reasons of pressing or domestic necessity.
The amount of pro rata long service leave payable on termination will be calculated using accrual rates set out in local long service leave legislation.
14. VISION FOR MYAREE
To have a high performance work culture and to be the Preferred supplier of Australian Made Steel Building Products through:
* Continuous improvement,
* Meeting customer requirements,
* Achieving Company's financial targets, and
* Improving employees wealth, leisure and security.
15. PERFORMANCE RELATED PAYMENT SCHEME
A Performance Related Payment Scheme will be used to promote business improvement in key areas.
A maximum of 6.5% of gross earnings will be payable each period. For the purposes of determining the performance related payment, gross earnings will include award and overaward payments, overtime and shift allowance earnings plus payments for paid leave. Payments not included in gross earnings are payments for periods of absence on workers' compensation where the absence has been for more than 12 months and performance related payments relating to a previous period which may have been paid during this period.
A reasonably achievable target should be set to deliver 5.5% of gross earnings, however actual payments may range from 0% to 6.5%, dependent on the achievement of set targets.
Monthly performance figures are to be made available to the Myaree employees by the 3rd working day of each month.
Casuals, and new employees with less than 1 months service will not be paid PRPS. Contractors do not qualify for PRPS.
During The Term of this Agreement parties will Review productivity and Lump sum Payment Schemes. There is no assumption as to the acceptance of the outcome of this review.
16. WORKERS COMPENSATION PROVISION
16.1 Employees who are eligible for Workers' Compensation will be entitled to up to a maximum of 52 weeks Accident Pay within 104 weeks of the first day of work due to incapacity.
16.2 Accident Pay is the amount of weekly payment necessary to bring the weekly gross payment of injured employees up to their normal rate of pay (i.e. not including overtime, penalty rates and other allowances). Accident Pay is payable to injured employees either experiencing total incapacity or partial incapacity deemed total because the Company is unable to offer appropriate work.
16.3 Payment of Accident Pay is conditional upon the employee being willing to participate in appropriate rehabilitation.
If a Workers' Compensation claim is finalised in this 104 week period, Accident Pay will cease.
16.4 If compensation rates are changed subsequent to the commencement of Accident Pay payments, the level of Accident Pay payments will not increase in comparison to the original level. The normal rate of pay will be maintained.
This arrangement will apply to eligible injured employees absent from work as from the effective date of this agreement.
Accident Pay will not be paid:
· for periods of incapacity during the first two weeks of employment with the Company.
· for any periods of incapacity caused by an injury which occurred prior to the date of commencement of this agreement.
· for periods of incapacity caused by an injury which is substantially an exacerbation or deterioration of an injury which occurred prior to the employee's employment with the Company.
· for any period of annual or long service leave or public holidays.
· for any periods of incapacity, unless the Company is notified as soon as practical and a claim is made on the appropriate forms within 30 (thirty) days of the injury or as soon as practicable in the case of serious injuries (for example requiring hospitalisation).
· for any periods of incapacity unless the employee furnishes evidence reasonably required by the Company.
· for any periods of incapacity, unless the employee submits him/herself to reasonable and appropriate medical examinations, provided and paid for by the Company.
· after the death of the employee involved and no payment of Accident Pay will be paid to any other person with respect to that particular employee.
17. UNION DELEGATE TRAINING
The Company will co-operate with Unions to facilitate release and pay ordinary wages to delegates attending agreed courses where:
a) there is prior consultation with the Company about course content and the ability to release particular employees from the job.
b) the course is aimed at improving industrial relations and deals with relevant matters in a positive and responsible manner. Relevant matters may include workers' compensation, occupational health and safety and legislative change affecting employment at the centre.
c) there is, where appropriate, an opportunity for Company participation in or contribution to the course.
18. CONTRACTORS
BHP Building Products operates a seasonal business which is subject to significant variations in production demand. The Company reserves the right to utilise contractors where it is of benefit to the business to do so - the shop steward will be advised when contractors will be used and to the estimated period of engagement.
The use of contractors would include meeting fluctuating production demands, covering periods of annual leave, long service leave and sick leave and where projected demand is unclear or uncertain.