ANI Bradken South Fremantle Plant Closure

REDUNDANCY DUE TOANI BRADKEN SOUTH FREMANTLE

PLANT CLOSURE

NO. AG 103 of 1997

MEMORANDUM OF AGREEMENT

REDUNDANCY DUE TO

ANI BRADKEN SOUTH FREMANTLE PLANT CLOSURE

1. - PARTIES TO & APPLICATION OF AGREEMENT

(1) The parties to this Agreement shall be:

(a) ANI Bradken South Fremantle.

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

(c) Transport Workers’ Union of Australia, Industrial Union of Workers, Western Australia Branch ("the TWU").

(d) Automotive, Food, Metals, Engineering, Printing & Kindred Industries Union of Workers Western Australia Branch ("the AFMEPKIU").

(2) This Agreement shall apply to:

(a) all persons employed by ANI Bradken South Fremantle, who are members or eligible to be members of the above unions and are covered by the parent awards (of whom there are approximately 160 persons); and

(b) the parties in subclause (1) above.

1A. - PARENT AWARDS

The parent awards shall be the Metal Trades (General) Award 1966 (No. 13 of 1965) and the Transport Workers (General) Award (No.10 of 1961), provided this agreement shall take precedence should there by any inconsistencies.

2. - OPERATION AND DURATION

This Agreement is solely for those employees at the ANI Bradken South Fremantle Plant and any other employees directly affected and will remain in place until the closure of the South Fremantle Plant in 1998. In the event that an official decision is made to keep the Plant open, this Agreement will immediately become invalid and a commitment is made by all parties to recommence EBA negotiations within one (1) month of such an announcement.

3. - PAYMENTS

All payments referred to in this Agreement are based on the employee’s current ordinary time, all purpose rate at the time of termination.

4. - REDUNDANCY PAYMENTS

Redundancy payments will be made as per Addendum (I) “Schedule of Service Payments” and Addendum (2) except for the following:

(1) Further to the Plant closure announcement on 12 March 1997 the company will provide an anticipated termination date to all employees, as soon as practical.

In due course when the timing of the Natcast Welshpool expansion plans have been established the company will be in a position to identify future positions available at Natcast and make offers to transfer. Simultaneously the company will identify approximate retrenchment timing for the remainder of the employees at South Fremantle.

The actual date of termination for individuals will not be identifiable until the closure of the plant is imminent. Once this point is reached each individuals actual termination date will be identified based on skills required during the winding down of the plant to ensure the South Fremantle plant maintains its capability of providing a high level of customer service.

The company will advise individuals of their actual termination date with as much notice as possible but not less than the periods of notice specified in the Metal Trades (General) Award 1965.

This actual termination date is the date redundancy calculations will be based on and payment will be available from that date.

Following advice of actual termination date, if an individual wishes to terminate their employment before the termination date and this affects the performance of the company, then the redundancy package will only be payable if the required skills can be maintained via alternative arrangements by the company. The company is committed to doing everything practicable to facilitate this process.

(2) The redundancy package has been agreed in its terms purely due to specific circumstances relevant to the site and will not and are not to be used as a precedent for any other redundancy circumstances either within or outside the ANI group of companies.

5. - SICK LEAVE

100% of accumulated sick leave will be paid out on termination.

6. - ANNUAL LEAVE & RDO’S ETC

All accumulated annual leave (including leave loading), RDO’s and any other accruable leave covered under relevant awards will be paid out on termination in accordance with the requirements of the award.

7. - LOYALTY PAYMENT

Commencing the pay period starting 11 March 1997 a 10% loyalty bonus will be available to each employee taking the redundancy package. Payment will only be effective if the employee continues employment up to their termination date nominated by the Company. The following conditions will apply;

(1) Within the ordinary working week (Monday to Friday) a minimum of the individuals agreed ordinary hours have to be worked prior to becoming eligible for such payment. Any unauthorised leave or loss of time will result in a loss of entitlements to the Loyalty bonus for the week. Time may be made up within the week. The only exceptions are authorised absences due to Public Holidays, Annual Leave, Long Service Leave, Rostered Days Off or Bereavement Leave as agreed by the company. Time spent on workers compensation will be treated as ordinary hours worked.

(2) If less than the individuals agreed ordinary hours are worked due to authorised leave as detailed in clause 7(1) the loyalty bonus is paid only on the actual ordinary hours worked.

(3) Sick leave (even with the presentation of a medical certificate) will not be considered as authorised absence.

(4) Time taken off during the notice period for the purpose of seeking other employment will not be considered as authorised leave for the purpose of the loyalty bonus payment. Employees however are still paid for this time as per the Award.

(5) The 10% loyalty bonus will be accumulated on a weekly basis and paid to the employee upon reaching the actual termination date as set out in (4, 1) of this agreement.

8. - TRANSFER OPTIONS

(1) Transfers to Natcast Welshpool or other ANI facilities.

As an alternative to redundancy the company may offer a transfer to employees to other positions within the Natcast Welshpool or other ANI Plants where their skills can be effectively utilised.

The following conditions would apply:

(a) A trial period of one month will provide an opportunity for the Company and employee to assess their long term suitability for the new position. If it is mutually agreed that the new position is not suitable then the redundancy package will be available to the employee after their nominated termination date calculated on their pre existing ANI Bradken Fremantle rate. Alternatively, the Company and the employee may mutually agree to extend the trial period.

(b) Upon transfer the employee agrees to abide by that site’s current Agreement including pay rates applicable to that classification and/or trade. This also includes the trial period.

(c) On or prior to completion of the trial period if an employee is found to be unsuitable for the position or elects not to accept the position, redundancy will be no less than the redundancy payment as defined at the Bradken South Fremantle Plant prior to transfer.

(d) An employee is not compelled to accept an offer of transfer to another site. If such an offer is declined, the employee is still eligible for all entitlements under this agreement.

(e) Employees accepting job offers at Natcast Welshpool or other ANI Plants will be eligible for a travel allowance equal to the most expensive public transport to cover the extra distance travelled from their existing place of abode to their new job location. In the case of Natcast Welshpool this allowance would be $2.50 each way based on rail transport. This allowance will be paid for all journeys to and from the workplace when the employee is required for duty. This allowance will cease after 6 (six) months of the transfer or if the distance is reduced to below their current travel distance due to change of abode.

(f) If an employee wishes to relocate closer to the Welshpool site within 12months of transfer the company will reimburse relocation costs to a maximum of $5000 if supported by documentation and receipts. If an employee leaves the company in less than 12 months a pro-rata repayment would apply.

(2) Interstate Transfers

Where a transfer is interstate and at the request of the Company, a suitable package will be negotiated on an individual basis with the Plant Manager.

9. - NOTICE OF TERMINATION OF EMPLOYEE

(1) The notice of termination required to be given by an employee shall be a minimum of one (1) week for an employee with less than one (1) years continuous service and a minimum of two (2) weeks for employees with greater than one (1) years continuous service.

(2) If an employee can sho cause during the notice period that alternative employment has been found then the notice period as outlined in Clause 9 (1) may be waived at the discretion of the management.

(3) An employee will only be paid for actual hours worked. No payments in lieu of the notice prescribed in subparagraphs 9 (1)and (2) will be made.

10. - FUTURE RE-EMPLOYMENT AND ASSISTANCE

The company will provide out placement assistance and investment counselling to all redundant employees and/or employees considering redundancy at their request.

11. - LIMIT OF AGREEMENT

It is agreed by all parties that this redundancy agreement specifically relates to and only to the closure of the ANI Bradken South Fremantle Plant and employees directly affected by the closure.

12. - SELECTION CRITERIA

If there are more employees wishing to transfer to Welshpool than positions available, all relevant parties bound by this agreement shall establish a selection criteria.

13. - RESOLUTION OF DISPUTES

In the event of a dispute or question arising from this agreement, it shall be dealt with in the following manner.

1. The employee/s concerned (and the shop steward if requested) shall discuss the matter with the company Human Resources Manager.

2. If the matter cannot be resolved at that stage the matter shall be discussed between the employee/s concerned, the representative of the state branch of the relevant union/s and the General Manager of the Company.

3. If the matter cannot be resolved at the second stage the matter shall be referred to the Western Australian Industrial Relations Commission for conciliation and if necessary arbitration.

Provided that with effect from 22 November, 1997 it is required that persons involved in the question, dispute or difficulty shall confer among themselves and make reasonable attempts to resolve questions, disputes or difficulties before taking those matters to the Commission.

4. Sensible time limits of at least 7 days shall be allowed for the completion of each stage of the process.

5. In order to allow for the peaceful resolution of grievances pursuant to this agreement the parties shall not engage in stoppages of work, lockouts or any other bans or limitations on the performance of work.

SIGNATURES

Accepted by:

(indecipherable)

On behalf of ANI Bradken

(signed by J.D. Fiala)

On behalf of the Communications, Electrical, Electronic, Energy,

Information, Postal, Plumbing and Allied Services Union of Australia

(signed by J. Sharp-Collett)

On behalf of Automotive, Food, Metals, Engineering, Printing &

Kindred Industries Union, Western Australian Branch.

(indecipherable)

On behalf of Transport Workers’ Union of Australia,

Industrial Union of Workers, Western Australia Branch.

Addendum (1)

REDUNDANCY DUE TO

ANI BRADKEN SOUTH FREMANTLE PLANT CLOSURE

SCHEDULE OF SERVICE PAYMENTS

Years of Service / Redundancy Payments # / Long Service
Leave Payments / Wks
Under 1 / 0 weeks / Nil / 0
1 / 4 weeks / Nil / 0
2 / 6 weeks / Nil / 0
3 / 7 weeks / Nil / 0
4 / 9 weeks / Nil / 0
5 / 11 weeks / Nil / 0
6 / { / 13.5 weeks / Nil / 0
7 / { / 16 weeks / Pro-Rata L.S.L. / 9.1
8 / { / 18.5 weeks / Pro-Rata L.S.L. / 10.4
9 / { / 21 weeks / Pro-Rata L.S.L. / 11.7
10 / 2.5 weeks per / { / 23.5 weeks / 13 Weeks L.S.L. / 13
11 / year of / { / 26 weeks / Pro-Rata L.S.L. / 14.3
12 / service / { / 28.5 weeks / Pro-Rata L.S.L. / 15.6
13 / { / 31 weeks / Pro-Rata L.S.L. / 16.9
14 / { / 33.5 weeks / Pro-Rata L.S.L. / 18.2
15 / { / 36 weeks / Pro-Rata L.S.L. / 19.5
16 / { / 39 weeks / Pro-Rata L.S.L. / 20.8
17 / 3 weeks per / { / 42 weeks / Pro-Rata L.S.L. / 21.7
18 / year of / { / 45 weeks / Pro-Rata L.S.L. / 22.5
19 / service / { / 48 weeks / Pro-Rata L.S.L. / 23.4
20 / { / 51 weeks / 26 Weeks L.S.L. / 24.3
21 / { / 52 weeks / Pro-Rata L.S.L. / 25.13

52 weeks and capped thereafter.

* Long Service Leave Entitlements will be calculated on the following:

(a) Completed years of service commencing prior to 1 October 1964 - 13 weeks leave for 20 years continuous service;

(b) Completed years of service commencing after 1 October 1964 and prior to 9December 1981 - 13 weeks for 15 years continuous service;

(c) Completed years of service commencing after 9 December 1981 - 13 weeks for 10years continuous service.

* Long Service Leave will be payable on a pro-rata basis after 7 years continuous service.

# For service greater than (1) one year, payment will be calculated on a completed monthly prorata basis.

Addendum (2)

EXAMPLES

REDUNDANCY PAYMENT