NATIONAL FOODS MILK LIMITED AND LIQUOR, HOSPITALITY AND MISCELLANEOUS UNION WESTERN AUSTRALIAN STATE INDUSTRIAL AGREEMENT 2004

AG 181 OF 2004

Table Of Contents

1. / Title / 3
2. / Definitions / 3
3. / Who Is Bound / 3
4. / Period Of Operation / 4
5. / Relationship to Award and Agreement / 4
6. / Objectives / 4
7. / Partnership / 5
8. / Contracting Out / 5
9. / Use of Non-Permanent Employees / 6
10. / Salary Sacrifice / 7
11. / Income Protection Insurance / 8
12. / Trade Union Training / 8
13. / Role of Union Delegates / 8
14. / Workplace Meetings / 9
15. / Pay Roll Deductions / 9
16. / Availability of Agreement / 10
17. / Consultation and Communication / 10
18. / Dispute Resolution Procedure / 11
Signatory Page / 13

1. TITLE

This agreement shall be referred to as the National Foods Milk Limited and Liquor, Hospitality and Miscellaneous Union, Western Australian State Industrial Agreement 2004.

2. DEFINITIONS in this Agreement:

“Act” means the Industrial Relations Act 1979 and any amendments thereto;

“Agreement” means the National Foods Milk Limited and Liquor Hospitality and Miscellaneous Union, Western Australian State Industrial Agreement 2004.

“Award” means the Masters Dairy Award 1994.

“Commission” means the Western Australian Industrial Relations Commission.

“Company” means National Foods Milk Limited (ACN 051 195 272) having its office at 86 Radium Street, BentleyWA 6102.

“Delegate” means accredited delegate of the Liquor and Hospitality and Miscellaneous Union, WA Branch.

“Employee” means any Employee of the Company who works in Western Australia in any of the classifications provided for in this Agreement.

“National Foods” means the Company.

“Union” or “LHMU” means Liquor, Hospitality and Miscellaneous Union, WA Branch.

3.WHO IS BOUND

3.1This Agreement applies to Employees of the Company who are members of or are eligible to be members of the Union.

3.2This Agreement is binding upon the following parties to the Agreement:

3.2.1National Foods Milk Limited; and

3.2.2Liquor, Hospitality and Miscellaneous Union, WA Branch.

3.3It is estimated that there are 132 Employees bound by this Agreement at the date of registration.

4. PERIOD OF OPERATION

4.1This Agreement shall operate from the first full pay period commencing on or after 15 June 2004 and shall remain in force until 14th June 2007.

4.2 The terms of this Agreement shall remain in force after the 14th June 2007 until replaced by a renegotiated Agreement.

4.3The parties to this Agreement will commence negotiations for a replacement Agreement no later than six months prior to the nominated expiry date of this Agreement.

4.4There is in-principle agreement to the operative date of the next Agreement being effective from the 15 June 2007.

5.RELATIONSHIP TO THE AWARD AND THE AGREEMENT

5.1This Agreement shall be read and interpreted wholly in conjunction with the Award, provided that where there is any inconsistency between the Awardand the express terms of this Agreement, the express terms of this Agreement shall take precedence to the extent of such inconsistency.

5.2This Agreement shall be read in conjunction with the National Foods Milk Limited and Liquor, Hospitality and Miscellaneous Union Western Australian Federal Enterprise Bargaining Agreement 2004.

6.OBJECTIVES

6.1To achieve an environment of consultation and communication between the Company and its Employees and the Union.

6.2To establish, through consultation with Employees and Union representatives, an agreed process to achieve a flexible and multi-skilled workforce which recognises the Company's business plans and objectives, and works towards achieving those objectives.

6.3To ensure that Employees are appropriately trained according to Company needs, and are given the opportunity to maximise their skills within the workforce.

6.4To continue to maintain a commitment to quality assurance on all Western Australian sites including PMO, ISO 9002, HACCP, AQA, WQA and AS4801 status.

6.5For all parties to continue with the commitment to the Competency Based Training (CBT) system during the life of this Agreement.

6.6To cooperatively improve the occupational health and safety of the workforce.

6.7To reduce the amount of accrued leave (annual, long service, RDOs and public holidays) to a manageable level, and to ensure that all Employees are able to take an appropriate amount of rest time each year.

6.8To facilitate the development, multi-skilling and increased career opportunities for Employees, leading to greater job satisfaction and access to increase in remuneration.

6.9To provide Employees the opportunity to develop skills, maintain adequate wages, and improve their conditions of employment.

  1. PARTNERSHIP

7.1The Company, Employees and Union acknowledge that the objectives and values of this Agreement will only be achieved if an atmosphere of partnership and cooperation exists between the Company and the Union.

7.1.1Specifically, the parties commit to the following:

7.1.1.1Open sharing of appropriate information;

7.1.1.2A collective and consultative process of negotiating pay and employment conditions for Employees;

7.1.1.3To provide an environment which meets Occupational Health and Safety best practice standards;

7.1.1.4For the Union to support its members and cooperate with the Company to achieve its objectives;

7.1.1.5The Company supports the Union party to this Agreement, the role of the Union in the Company and respects it’s right to organise in the workplace.

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.

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 will not enter into any contract with a contract labour supplier or contractor unless the terms and conditions of any labour supplied thereunder are no less than those provided under this Agreement.

9.USE OF NON-PERMANENT EMPLOYEES

9.1The Parties agree that the Company will endeavour to provide permanent employment to all its Employees, except in the case of non-permanent Employees engaged on the following conditions:

Limited Term Employees

9.2Limited Term Employees shall only be engaged in the case of:

9.2.1Unforeseen short-term operational workloads in excess of current staff capacity;

9.2.2A function of a temporary and fixed nature;

9.2.3Replacement for Employees on parental leave;

9.2.4Replacement for Employees on workers’ compensation;

9.2.5Replacement for Employees on long-term sick leave;

9.2.6Replacement for Employees on long service leave; and

9.2.7Replacement for Employees on long-term annual leave.

9.3Limited Term Employees shall:

9.3.1be employed for a period of not less than one month and no more than twelve months;

9.3.2be paid as per this Agreement and the Award;

9.3.4accrue leave on a pro-rata basis as per permanent employees under the Award and, unless taken during the contract, will be paid out all leave entitlements on termination of the contract;

9.4Limited Term Employees shall only be employed by agreement with the Union. The Union shall not unreasonably withhold agreement to the employment of a Limited Term Employee.

9.5Where a Limited Term Employee is employed for a period greater than one year, except in exceptional circumstances and only by agreement between the Parties, that Employee will automatically be made a permanent Employee.

9.6The Company shall endeavour to fill any vacancy from within current Employees in the first instance, however, if in the opinion of the Company there is no Employee who has the appropriate skills and aptitude for the position, the position can be filled through a Limited Term Employee.

9.7It is not the intention of the Company to use Limited Term Employees except in the circumstances as stated above.

Casual Employees

9.8Casual Employees shall only be engaged in the case of short-term absences or temporary functions of up to one month.

9.9Casual Employees shall only be employed by agreement between the Company and the Union.

9.10The Union shall not unreasonably withhold agreement to the employment of a Casual Employee.

9.11It is not the intention of the Company to use casual Employees except as stated in the circumstances above.

10.SALARY SACRIFICE

10.1The Company will provide Employees the option of salary sacrificing superannuation contributions.

10.2Salary sacrifice shall mean that an Employee will forgo direct receipt of a nominated portion of their salary that will instead be paid to the Employees Superannuation Fund.

10.3 Salary sacrifice will be subject to the following terms and conditions:

10.3.1Employees will advise the Company in writing as to the fund, the dollar amount per week to be sacrificed and the commencement date (which must be a minimum of four weeks from the time the written advice is provided to the Company)

10.3.2The Company will show details of salary sacrifice deductions on pay slips.

10.3.3Employees will advise the Company in writing at least four weeks, or such other additional duration required by the chosen Superannuation Fund, of their desire to cease salary sacrifice arrangements

11.INCOME PROTECTION INSURANCE

11.1The Company will continue to facilitate the payment by Employees of income protection insurance.

11.2The funding for this insurance has in the past been provided by Employees sacrificing a portion of a wage increase provided for by the National Foods Milk Limited, Western Australian Enterprise Bargaining Agreement 1999. The funding for the insurance will continue to be on that basis.

11.3 The Company will arrange to pay the premiums for the insurance on behalf of those Employees who authorise the Company to make a deduction from their wages.

12.TRADE UNION TRAINING

12.1An Employee elected or appointed to the position of Delegate will be allowed 8 days leave without loss of pay to attend Union training courses conducted and/or approved by the Union, provided that the Union will provide the Employer seven (7) days notice of the enrolment of an eligible Employee including details of the course and time required. This leave is not cumulative from year to year. Only rostered shifts will be paid for; no overtime will be paid whilst on such leave.

12.2Leave of absence granted pursuant to this clause will count as service for all purposes of this Agreement.

13.ROLE OF UNION DELEGATES

13.1The Company shall recognise the role of workplace Delegates authorised by the Union.

13.2Delegates will be granted such time as agreed by the parties during working hours to:

13.2.1Consult with Union members and with officials of the Union;

13.2.2Represent the interests of members to the Company and before industrial tribunals;

13.2.3Participate in the affairs of the Union;

13.2.4Attend accredited Union education.

13.2.5Perform their role without any discrimination in their employment and have the right to engage in collective negotiations with the Company on behalf of members

13.3The Company will consult with Delegates prior to introducing any significant change which will, or is likely to impact on employment levels, work processes, Employee duties or other employment-related issues. Delegates will be given reasonable access to information regarding such changes.

13.4The Company will allow Delegates to address new Employees about the benefits of Union membership at the time that they enter employment.

13.5The Company will give Delegates reasonable access to telephone, facsimile, post, photocopying, internet and e-mail facilities for the purpose of carrying out work as a Delegate and consulting with workplace colleagues and the Union.

13.6The Company will provide a notice board in a prominent location in the workplace on which Delegates may place notices relevant to Union activities.

14.WORKPLACE MEETINGS

14.1Employees will be allowed to attend without the loss of ordinary earnings, one workplace meeting each month that is convened by the Union, subject to the following conditions:

14.1.1The Union and the Company will consult at least 2 weeks in advance (or less by agreement) of any such meeting for the purpose of minimising any disruption to work.

14.1.2The meeting will consider industrial issues of relevance to the Company and it's Employees, including consultation with Employees about the terms of this Agreement and subsequent agreements.

14.1.3Each meeting will be no longer than 1 hour and will be conducted in such a manner as to minimise disruption to business.

15.PAYROLL DEDUCTIONS

The Company undertakes upon authorisation from individual Employees to deduct Union membership dues, as levied by the Union in accordance with its rules, from the pay of Employees who are members of the Union. Such monies collected will be forwarded to the Union on a monthly basis together with all necessary information to enable the reconciliation and crediting of subscriptions to members' accounts. Any alteration to this arrangement will be agreed by the Parties before being implemented.

16.AVAILABILITY OF AGREEMENT

A copy of this Agreement must be kept in a place easily accessible to Employees and be available for inspection upon request by any Employee.

17.CONSULTATION AND COMMUNICATION

17.1 The Parties recognise that to maintain good Employee relations, appropriate consultation and communication must take place.

17.2 The Parties are committed to improved and effective consultation and communication in the workplace, and agree that consultation and communication will provide Employees on all shifts with an opportunity to participate fully in the issues which impact on their working lives.

17.3 Some of the mechanisms used for consultation include, but are not limited to, team briefings, meetings, and the consultative committee (made up of Management and Union representatives).

17.4 The consultative committee shall meet on a regular basis to review the operation and progress of the Agreement.

17.4.1 The consultative committee shall consist of one Union Delegate per area.

17.4.2 Employees who attend a consultative committee meeting outside of working hours shall be paid for that time at the rate of time and a half for the first two hours, double time thereafter for hours spent at the meeting. Where an Employee finishes their shift, and attends a meeting before clocking off, the Employee will be paid the appropriate rate of pay as per this agreement. Should an Employee attend a meeting whilst on leave, this Employee shall receive the same number of hours in lieu of leave.

17.4.3 Employees who attend a meeting outside of working hours must advise their Unit Manager prior to the meeting.

17.5 The Consultative Committee shall detail an agreed procedural framework for all meetings, which enables all parties to be heard on issues without interruption and in the spirit of courteous and respectful debate. Further, the framework shall include agreement on other aspects of code of conduct.

17.6 The parties agree that effective consultation is based on the following principles:

17.6.1Information sharing for continuous improvement;

17.6.2Facilities and training for those involved in the consultative and communication process; and

17.6.3Commitment from the Company, Union and Employees.

17.7 Where agreement cannot be reached about matters involving changes to the organisation or performance of work, the 'Disputes Resolution Procedure' Clause of this Agreement shall be used.

18.DISPUTES RESOLUTION PROCEDURE

18.1It is recognised that Company, Employees and the Union may from time to time have grievances or claims that they wish to pursue with each other.

18.2The objective of this procedure is to resolve problems amicably, promptly and at the source in order to avoid disputes such as work bans or limitations, go slows and strikes and any other form of action that would disrupt customer service or operations.

18.3 Any dispute arising from this Agreement shall be dealt with in accordance with the following procedure:

18.3.1 The matter shall first be discussed between the Employee affected and the appropriate Team Leader.

18.3.2 If not settled, the matter shall be discussed between the accredited Union representative and the Manager or other appropriate representative of the Company.

18.3.3 If not settled, the matter shall be discussed between the Branch Secretary of the Union or other appropriate official of the Union and the appropriate representative of the Company.

18.3.4 If not settled, it is open to either party to seek the assistance of the Western Australian Industrial Relations Commission to resolve the matter by conciliation and/or arbitration.

18.3.5 A time limit of two working days should apply wherever practicable to each step of the procedure in subclauses 18.3.1 to 18.3.3.

18.3.6 While the matter in dispute is being discussed in accordance with the dispute settlement procedure, work shall continue and the status quo as applying before the circumstances giving rise to the dispute shall be maintained, except in regard to matters relating to the introduction of new technology which will be in accordance with Clause 19 of the National Foods Milk Limited and Liquor, Hospitality and Miscellaneous Union Western Australian Federal Enterprise Bargaining Agreement 2004.

18.3.7 No party shall be prejudiced in relation to the final settlement by the continuance of work in accordance with this clause.

18.3.8 It shall be open to either party at any time to seek the assistance of the Western Australian Industrial Relations Commission in resolving any dispute by way of conciliation, and/or arbitration.

18.3.9 In the event of a work stoppage, such employees as are necessary shall where appropriate, complete production in process and despatch duties for short code products to avoid spoilage and clean the plant according to hygiene requirements before stopping work.

18.3.10 In the event of a stoppage of work, employees will be available to ensure that hospitals and institutions have available a milk supply and export orders are not disrupted.

18.3.11Where the Union wishes to hold a mass meeting, a suitable time will be agreed with the Operations Manager or appointee. In any case, the Unions will endeavour where practicable to provide not less than 24 hours notice of a mass meeting. Mass meetings are to be used as a last resort; after all other forms of communication have been exhausted.

18.4Company Disciplinary Issues with Employees

18.4.1Where the Company has a disciplinary issue with any Employee, the National Foods Milk Limited (WA) Disciplinary Policy shall apply in accordance with this clause.

18.4.2 It is agreed that this procedure shall not be changed during the life of this Agreement, except by agreement between the parties.

SIGNATORIES

Signed by Peter John Watt

for and on behalf of NATIONAL FOODS