Trades and Labor Council of Western Australia -v- Minister for Consumer and Employment Protection and Chamber of Commerce and Industry of Western Australia and others

Document Type: Order

Matter Number: APPL 957/2005

Matter Description: General Order to vary all award rates and allowances

Industry:

Jurisdiction: Commission in Court Session

Member/Magistrate name: Chief Commissioner A R Beech, Senior Commissioner J F Gregor, Commissioner S J Kenner, Commissioner J H Smith, Commissioner J L Harrison

Delivery Date: 4 Jul 2006

Result: General Order and Order issued

Citation: 2006 WAIRC 04703

WAIG Reference: 86 WAIG 1655

DOC | 91kB
2006 WAIRC 04703
GENERAL ORDER TO VARY ALL AWARD RATES AND ALLOWANCES
WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

PARTIES TRADES AND LABOR COUNCIL OF WESTERN AUSTRALIA
APPLICANT
-V-
MINISTER FOR CONSUMER AND EMPLOYMENT PROTECTION, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA
RESPONDENTS
MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS (CTH)
INTERVENOR
AUSTRALIAN COUNCIL OF SOCIAL SERVICES, AUSTRALIAN YOUNG CHRISTIAN WORKERS, COMBINED SMALL BUSINESS ALLIANCE OF WESTERN AUSTRALIA, MR. MH DALE, UNITING CHURCH IN AUSTRALIA, WESTERN AUSTRALIAN SYNOD, WESTERN AUSTRALIAN COUNCIL OF SOCIAL SERVICES

OTHER PERSONS
CORAM CHIEF COMMISSIONER A R BEECH
SENIOR COMMISSIONER J F GREGOR
COMMISSIONER S J KENNER
COMMISSIONER J H SMITH
COMMISSIONER J L HARRISON
DATE TUESDAY, 4 JULY 2006
FILE NO. APPL 957 OF 2005
CITATION NO. 2006 WAIRC 04703

Result General Order and Order issued

Representation
APPLICANT MS J. BOOTS, OF COUNSEL, AND LATER MS J. FREEMAN

RESPONDENTS MS J. GARDNER AND MR M. HAMMOND ON BEHALF OF THE MINISTER FOR CONSUMER AND EMPLOYMENT PROTECTION
Mr D. Jones on behalf of the Chamber of Commerce and Industry of Western Australia, Inc.

Intervenor Mr S. Amendola, of counsel on behalf of the Commonwealth Minister for Employment and Workplace Relations
Other Persons Mr M. Cox, of counsel on behalf of Uniting Church in Australia, Western Australian Synod


General Order and Order


THE COMMISSION IN COURT SESSION constituted for the purpose of section 50 of the Industrial Relations Act 1979 ("the Act"), having published its reasons for decision and pursuant to sections 50 and 51(4) of the Act hereby:

A. Makes the following Order:

THAT the General Order which issued on 4 July 2005 in matter No. 576 of 2005 (2005 WAIRC 01956; (2005) 85 WAIG 2089) is rescinded with effect on and from 7 July 2006.

B. Makes the following General Order:

1. THAT weekly rates of pay for adults in each award of the Commission, other than those awards set out in Schedule 1, be increased by the arbitrated safety net adjustment of $20.00 per week with effect on and from 7 July 2006 and that this increase shall be subject to absorption in the same terms as previous State Wage decisions.

2. THAT any increase to wages resulting from the General Order, unless provided for elsewhere, shall be calculated on the basis that:

(a) Where the award prescribes an adult fortnightly rate of pay, the fortnightly rate of pay be increased by $40.00 per fortnight with effect on and from 7 July 2006.

(b) Where the award prescribes an adult annual rate of pay, the annual rate of pay is increased by $1043.00 per annum with effect on and from 7 July 2006.

(c) Where the award prescribes an adult hourly rate of pay, the hourly rate of pay is increased by the amount of $20.00 per week divided by the number of ordinary hours of work prescribed by the relevant award for a full-time employee. Where applicable, casual loadings are to be calculated based on the hourly rate.

3. THAT where an award rate other than an adult rate is determined by reference to a percentage of the adult rate or some other formula those award rates shall be varied on the basis of that percentage or formula to take into account the application of the arbitrated safety net adjustment of $20.00 per week to the adult award wage.

4. THAT increases under State Wage Case Principles prior to 7 July 2006, except those resulting from enterprise agreements, are not to be used to offset the arbitrated safety net adjustment of $20.00 per week.

5. THAT all awards which contain a Minimum Adult Award Wage Clause or provision be varied by:

(a) deleting the amount of "$484.40" wherever it appears and inserting in lieu the amount of "$504.40".

(b) Deleting the date "7th July 2005" wherever it appears and inserting in lieu the date "7th July 2006".

(c) Deleting the words "2005 State Wage Case Decision" wherever they appear and inserting in lieu the words "2006 General Order Wage Case Decision".

6. THAT all awards which contain a minimum rate of pay for adult apprentices be varied by deleting the amount of "$406.70" wherever it appears and inserting in lieu the amount of "$421.70".

7. THAT allowances which relate to work or conditions which have not changed and service increments may be varied in accordance with the Statement of Principles – July 2006 by an application to amend the award.

8. THAT the Statement of Principles – July 2006 as set out in Schedule 2 operate with effect on and from 7 July 2006.

9. THAT the Registrar publish in the Western Australian Industrial Gazette and on the Commission’s website the clauses of the awards varied by this General Order incorporating the amendments made by this General Order.






COMMISSION IN COURT SESSION
Schedule 1

LIST OF AWARDS NOT SUBJECT TO THIS GENERAL ORDER


Alcoa Long Service Leave Conditions Award, 1980
Catering Employees' (North West Shelf Project) Long Service Leave Conditions Award 1991
Catering Workers' (North Rankin A) Long Service Leave Conditions Award No. A 40 of 1987
Clerks (Racing – Betting) Award 1978, No. R22 of 1977
Contract Cleaning (F.M.W.U.) Superannuation Award 1988 - The
Health Care Industry (Private) Superannuation Award 1987
Hospital Salaried Officers (Joondalup Health Campus) Award 1996
Iron and Steel Industry Workers' (Australian Iron and Steel Pty Ltd) Production Bonus Scheme Award
Iron Ore Production & Processing (BHP Billiton Iron Ore Pty Ltd) Award 2002
Iron Ore Production & Processing (Locomotive Drivers) Award 2006
Iron Ore Production & Processing (Locomotive Drivers Rio Tinto Railway) Award 2006
Miscellaneous Government Conditions and Allowances Award No A 4 of 1992
Miscellaneous Workers' (Security Industry) Superannuation Award, 1987
Ngala Superannuation Award
North Rankin Construction Award
Printing Industry Superannuation Award 1991
Printing (The Sunday Times Guaranteed Employment and Voluntary Retirement) Award, 1983
Printing (West Australian Newspapers Limited, Guaranteed Employment and Voluntary Retirement) Award, 1983
Public Service Allowances (Fisheries and Wildlife Officers) Award 1990
Shearing Contractors' Award of Western Australia 2003
Supported Employees Industry Award
Swan Brewery Company Limited (Superannuation) Award 1987 - The
West Australian Petroleum Pty Ltd Long Service Leave Conditions Award 1991
Western Australian Mint Award 2005
Woodside Offshore Petroleum Pty Ltd Long Service Leave Conditions Award, 1984
Worsley Alumina Pty Ltd Long Service Leave Conditions Award, 1984



____________________________
Schedule 2

STATEMENT OF PRINCIPLES – July 2006


1. Role of Arbitration and the Award Safety Net

Existing wages and conditions in awards and relevant agreements of the Commission constitute the safety net which protects employees who may be unable to reach an industrial agreement.

Wages and conditions of employment maintained in awards in accordance with these Principles and through the operation of section 40B of the Act are the safety net.

These Principles do not have application to Enterprise Orders made under section 42I of the Act.


2. When an Award or relevant Agreement may be varied or another Award made without the claim being regarded as above or below the Safety Net:

In the following circumstances an award or relevant agreement may, on application, be varied or another award made without the application being regarded as a claim for wages and/or conditions above or below the award safety net:

(a) to include previous State Wage Case increases in accordance with Principle 3.

(b) To incorporate test case standards in accordance with Principle 4.

(c) To adjust allowances and service increments in accordance with Principle 5.

(d) To adjust wages pursuant to work value changes in accordance with Principle 6.

(e) To reduce standard hours to 38 per week in accordance with Principle 7.

(f) To adjust wages for arbitrated safety net adjustments in accordance with Principle 8.

(g) To vary an Award or relevant Agreement to include the Minimum Adult Wage in accordance with Principle 9.

(h) A consent variation to a single enterprise specific award or a consent replacement award to a single enterprise specific award under Principle 10 giving effect to structural efficiency initiatives or productivity based arrangements.

(i) Where awards already make provision for superannuation pursuant to principles which operated under State Wage Cases from 1986 until 1993 the terms of those clauses may be varied to refer to current Federal Statutes in lieu of employers’ contributions, but these clause shall not be varied otherwise.

(j) To vary the award to incorporate industrial agreement provisions into the award by consent pursuant to section 40A of the Act. The incorporated industrial agreement wage rate and allowance provisions will not be subject to arbitrated safety net adjustments and will be identified separately in the award at the time of variation.


3. Previous State Wage Case Increases

Increases available under previous State Wage Case Decisions such as structural efficiency adjustments, and previous arbitrated safety net adjustments will, on application, still be accessible.

Minimum rates adjustments may also be progressed under this principle.


4. Test Case Standards

Test Case Standards established and/or revised by the Commission may be incorporated in an award. Where disagreement exists as to whether a claim involves a test case standard, those asserting that it does, must make an application and justify its referral. The Chief Commissioner will decide whether the claim should be dealt with by a Commission in Court Session.


5. Adjustment of Allowances and Service Increments

Existing allowances which constitute a reimbursement of expenses incurred may be adjusted from time to time where appropriate to reflect the relevant change in the level of such expenses.

Adjustment of existing allowances which relate to work or conditions which have not changed and of service increments will be determined in each case in accordance with State Wage Decisions.

Allowances which relate to work or conditions which have not changed and service increments may be adjusted as a result of the arbitrated safety net increase in Clause 8 of this Section.

In circumstances where the Commission has determined that it is appropriate to adjust existing allowances relating to work or conditions which have not changed and service increments for a monetary safety net increase, the method of adjustment shall be that such allowances and service increments should be increased by a percentage derived as follows: divide the monetary safety net increase by the rate of pay for the key classification in the relevant award immediately prior to the application of the safety net increase to the award rate and multiply by 100.

Existing allowances for which an increase is claimed because of changes in the work or conditions will be determined in accordance with the relevant provisions of the Work Value Changes Principle of this Statement of Principles.

New allowances to compensate for the reimbursement of expenses incurred may be awarded where appropriate having regard to such expenses.

Where changes in the work have occurred or new work and conditions have arisen, the question of a new allowance, if any, shall be determined in accordance with the relevant principles of this Statement of Principles. The relevant principles in this context may be Work Value Changes Principle or First Award and Extensions to an Existing Award Principle.

New service increments may only be awarded to compensate for changes in the work and/or conditions and will be determined in accordance with the relevant parts of the Work Value Changes Principle of this Statement of Principles.


6. Work Value Changes

(a) Changes in work value may arise from changes in the nature of the work, skill and responsibility required or the conditions under which work is performed. Changes in work by themselves may not lead to a change in wage rates. The strict test for an alteration in wage rates is that the change in the nature of the work should constitute such a significant net addition to work requirements as to warrant the creation of a new classification or upgrading to a higher classification.

In addition to meeting this test a party making a work value application will need to justify any change to wage relativities that might result not only within the relevant internal award classifications structure but also against external classifications to which that structure is related. There must be no likelihood of wage "leapfrogging" arising out of changes in relative position.

These are the only circumstances in which rates may be altered on the ground of work value and the altered rates may be applied only to employees whose work has changed in accordance with this provision.

In applying the Work Value Changes Principle, the Commission will have regard to the need for any alterations to wage relativities between awards to be based on skill, responsibility and the conditions under which work is performed.

(b) Where new or changed work justifying a higher rate is performed only from time to time by persons covered by a particular classification or where it is performed only by some of the persons covered by the classification, such new or changed work should be compensated by a special allowance which is payable only when the new or changed work is performed by a particular employee and not by increasing the rate for the classification as a whole.

(c) The time from which work value changes in an award should be measured is the date of operation of the second structural efficiency adjustment allowable under the September 1989 State Wage Decision ((1989) 69 WAIG 2917).

(d) Care should be exercised to ensure that changes which were or should have been taken into account in any previous work value adjustments or in a structural efficiency exercise are not included in any work evaluation under this provision.

(e) Where the tests specified in (a) are met, an assessment will have to be made as to how that alteration should be measured in money terms. Such assessment should normally be based on the previous work and the nature and extent of the change in work.

(f) The expression "the conditions under which the work is performed" relates to the environment in which the work is done.

(g) The Commission should guard against contrived classifications and over-classification of jobs.

(h) Any changes in the nature of the work, skill and responsibility required or the conditions under which the work is performed, taken into account in assessing an increase under any other provision of this Statement of Principles, shall not be taken into account in any claim under this provision.


7. Standard Hours

In approving any application to reduce standard hours to 38 per week, the Commission will satisfy itself that the cost impact is minimised.


8. Arbitrated Safety Net Adjustments

Where the minimum rates adjustment process in an award has been completed, the Commission may consider an application for the base rate, supplementary payment and arbitrated safety net adjustments to be combined so that the award specifies only the total minimum rate for each classification.

By consent of all parties to an award, where the minimum rates adjustment has been completed, award rates may be expressed as hourly rates as well as weekly. In the absence of consent, a claim that award rates be so expressed may be determined by arbitration.

The arbitrated safety net adjustment arising from the decision in Matter No. 957 of 2005 is $20.00 per week.


9. Minimum Adult Award Wage

A minimum adult award wage clause will be required to be inserted in any new award.

The minimum adult wage clause will be as follows –

MINIMUM ADULT AWARD WAGE

(1) No adult employee shall be paid less than the minimum adult award wage unless otherwise provided by this clause.

(2) The minimum adult award wage for full-time adult employees is $504.40 per week payable on and from 7 July 2006.

(3) The minimum adult award wage is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

(4) Unless otherwise provided in this clause adults employed as casuals, part-time employees or piece workers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the minimum adult award wage according to the hours worked.

(5) Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision in this award to the minimum adult award wage.

(6) (a) The minimum adult award wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

(b) Liberty to apply is reserved in relation to any special category of employees not included here or otherwise in relation to the application of the minimum adult award wage.

(7) Subject to this clause the minimum adult award wage shall –

(a) apply to all work in ordinary hours.

(b) Apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paid leave and for all purposes of this award.

(8) Minimum Adult Award Wage

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2006 General Order Wage Case Decision. Any increase arising from the insertion of the adult minimum wage will be offset against any equivalent amount in rates of pay received by employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award. Such above award payments include wages payable pursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required.

Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset the adult minimum wage.

(9) Adult Apprentices

(a) Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over, shall not be paid less than $421.70 per week.

(b) The rate paid in paragraph (a) above is payable on superannuation and during any period of paid leave prescribed by this award.

(c) Where in this award an additional rate is expressed as a percentage, fraction or multiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this award for the actual year of apprenticeship.

(d) Nothing in this clause shall operate to reduce the rate of pay fixed by the award for an adult apprentice in force immediately prior to 5 June 2003.


10. Making or Varying an Award or issuing an Order (other than an Enterprise Order under section 42I of the Act) which has the effect of varying wages or conditions above or below the safety net

An application or reference for a variation in wages or conditions above or below the safety net will be referred to the Chief Commissioner for him to determine whether the matter should be dealt with by a Commission in Court Session or by a single Commissioner.

Provided that where parties to a single enterprise specific award apply to vary the award by consent or consent to a replacement award to give effect to structural efficiency initiatives or productivity based arrangements the Chief Commissioner may allocate the matter to a single Commissioner.


11. New Awards (including interim Awards) and Extensions to an existing Award

The following shall apply to the making of a new award (including an interim award) and an extension to an existing award:

(a) In the making of a new award, the main consideration shall be that the award meets the needs of the particular industry or enterprise while ensuring that employees' interests are also properly taken into account. Structural efficiency considerations shall apply in the making of such an award.

(b) Subject to section 36A(3) in the making of an interim award the Commission shall ensure that the award meets the needs of the particular industry or enterprise while ensuring that employees' interests are also properly taken into account. Structural efficiency considerations shall apply in the making of such an award.

(c) A new award (including and interim award) shall have a clause providing for the minimum award wage [see Clause 9 of this Section] included in its terms.

(d) In the extension of an existing award to new work or to award-free work the rates applicable to such work will be assessed by reference to the value of work already covered by the award, providing structural efficiency considerations including the minimum rates adjustment provisions where relevant have been applied to the award.


12. Economic Incapacity

Any respondent or group of respondents to an award may apply to reduce and/or postpone the variation which results in an increase in labour costs under this Statement of Principles on the ground of very serious or extreme economic adversity. The merit of such application shall be determined in the light of the particular circumstances of each case and any material relating thereto shall be rigorously tested. The impact on employment at the enterprise level of the increase in labour costs is a significant factor to be taken into account in assessing the merit of an application. A party making such an application must make and justify an application as a Special Case. It will then be a matter for the Chief Commissioner to decide whether it should be dealt with by a Commission in Court Session.


13. Duration

This Statement of Principles will operate until reviewed.


Trades and Labor Council of Western Australia -v- Minister for Consumer and Employment Protection and Chamber of Commerce and Industry of Western Australia and others

GENERAL ORDER TO VARY ALL AWARD RATES AND ALLOWANCES

WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

 

PARTIES Trades and Labor Council of Western Australia

APPLICANT

-v-

 MINISTER FOR CONSUMER AND EMPLOYMENT PROTECTION, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA

RESPONDENTS

 MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS (CTH)

INTERVENOR

 AUSTRALIAN COUNCIL OF SOCIAL SERVICES, AUSTRALIAN YOUNG CHRISTIAN WORKERS, COMBINED SMALL BUSINESS ALLIANCE OF WESTERN AUSTRALIA, MR. MH DALE, UNITING CHURCH IN AUSTRALIA, WESTERN AUSTRALIAN SYNOD, WESTERN AUSTRALIAN COUNCIL OF SOCIAL SERVICES

 

OTHER PERSONS

CORAM Chief Commissioner A R Beech

 Senior Commissioner J F Gregor

 Commissioner S J Kenner

 Commissioner J H Smith

 Commissioner J L Harrison

DATE Tuesday, 4 July 2006

FILE NO. APPL 957 OF 2005

CITATION NO. 2006 WAIRC 04703

 

Result General Order and Order issued

 


Representation 

Applicant Ms J. Boots, of counsel, and later Ms J. Freeman

 

Respondents Ms J. Gardner and Mr M. Hammond on behalf of the Minister for Consumer and Employment Protection

Mr D. Jones on behalf of the Chamber of Commerce and Industry of Western Australia, Inc.

 

Intervenor Mr S. Amendola, of counsel on behalf of the Commonwealth Minister for Employment and Workplace Relations

Other Persons Mr M. Cox, of counsel on behalf of Uniting Church in Australia, Western Australian Synod

 

 

General Order and Order

 

 

THE COMMISSION IN COURT SESSION constituted for the purpose of section 50 of the Industrial Relations Act 1979 ("the Act"), having published its reasons for decision and pursuant to sections 50 and 51(4) of the Act hereby:

 

A. Makes the following Order:

 

THAT the General Order which issued on 4 July 2005 in matter No. 576 of 2005 (2005 WAIRC 01956; (2005) 85 WAIG 2089) is rescinded with effect on and from 7 July 2006.

 

B. Makes the following General Order:

 

1. THAT weekly rates of pay for adults in each award of the Commission, other than those awards set out in Schedule 1, be increased by the arbitrated safety net adjustment of $20.00 per week with effect on and from 7 July 2006 and that this increase shall be subject to absorption in the same terms as previous State Wage decisions.

 

2. THAT any increase to wages resulting from the General Order, unless provided for elsewhere, shall be calculated on the basis that:

 

(a) Where the award prescribes an adult fortnightly rate of pay, the fortnightly rate of pay be increased by $40.00 per fortnight with effect on and from 7 July 2006.

 

(b) Where the award prescribes an adult annual rate of pay, the annual rate of pay is increased by $1043.00 per annum with effect on and from 7 July 2006.

 

(c) Where the award prescribes an adult hourly rate of pay, the hourly rate of pay is increased by the amount of $20.00 per week divided by the number of ordinary hours of work prescribed by the relevant award for a full-time employee.  Where applicable, casual loadings are to be calculated based on the hourly rate.

 

3. THAT where an award rate other than an adult rate is determined by reference to a percentage of the adult rate or some other formula those award rates shall be varied on the basis of that percentage or formula to take into account the application of the arbitrated safety net adjustment of $20.00 per week to the adult award wage.

 

4. THAT increases under State Wage Case Principles prior to 7 July 2006, except those resulting from enterprise agreements, are not to be used to offset the arbitrated safety net adjustment of $20.00 per week.

 

5. THAT all awards which contain a Minimum Adult Award Wage Clause or provision be varied by:

 

(a) deleting the amount of  "$484.40" wherever it appears and inserting in lieu the amount of "$504.40".

 

(b) Deleting the date "7th July 2005" wherever it appears and inserting in lieu the date "7th July 2006".

 

(c) Deleting the words "2005 State Wage Case Decision" wherever they appear and inserting in lieu the words "2006 General Order Wage Case Decision".

 

  1. THAT all awards which contain a minimum rate of pay for adult apprentices be varied by deleting the amount of "$406.70" wherever it appears and inserting in lieu the amount of "$421.70".

 

  1. THAT allowances which relate to work or conditions which have not changed and service increments may be varied in accordance with the Statement of Principles – July 2006 by an application to amend the award.

 

  1. THAT the Statement of Principles – July 2006 as set out in Schedule 2 operate with effect on and from 7 July 2006.

 

9. THAT the Registrar publish in the Western Australian Industrial Gazette and on the Commission’s website the clauses of the awards varied by this General Order incorporating the amendments made by this General Order.

 

 

 

 

 

 

COMMISSION IN COURT SESSION


Schedule 1

 

LIST OF AWARDS NOT SUBJECT TO THIS GENERAL ORDER

 

 

Alcoa Long Service Leave Conditions Award, 1980

Catering Employees' (North West Shelf Project) Long Service Leave Conditions Award 1991

Catering Workers' (North Rankin A) Long Service Leave Conditions Award No. A 40 of 1987

Clerks (Racing – Betting) Award 1978, No. R22 of 1977

Contract Cleaning (F.M.W.U.) Superannuation Award 1988 - The

Health Care Industry (Private) Superannuation Award 1987

Hospital Salaried Officers (Joondalup Health Campus) Award 1996

Iron and Steel Industry Workers' (Australian Iron and Steel Pty Ltd) Production Bonus Scheme Award

Iron Ore Production & Processing (BHP Billiton Iron Ore Pty Ltd) Award 2002

Iron Ore Production & Processing (Locomotive Drivers) Award 2006

Iron Ore Production & Processing (Locomotive Drivers Rio Tinto Railway) Award 2006

Miscellaneous Government Conditions and Allowances Award No A 4 of 1992

Miscellaneous Workers' (Security Industry) Superannuation Award, 1987

Ngala Superannuation Award

North Rankin Construction Award

Printing Industry Superannuation Award 1991

Printing (The Sunday Times Guaranteed Employment and Voluntary Retirement) Award, 1983

Printing (West Australian Newspapers Limited, Guaranteed Employment and Voluntary Retirement) Award, 1983

Public Service Allowances (Fisheries and Wildlife Officers) Award 1990

Shearing Contractors' Award of Western Australia 2003

Supported Employees Industry Award

Swan Brewery Company Limited (Superannuation) Award 1987 - The

West Australian Petroleum Pty Ltd Long Service Leave Conditions Award 1991

Western Australian Mint Award 2005

Woodside Offshore Petroleum Pty Ltd Long Service Leave Conditions Award, 1984

Worsley Alumina Pty Ltd Long Service Leave Conditions Award, 1984

 

 

 

____________________________

Schedule 2

 

STATEMENT OF PRINCIPLES – July 2006

 

 

  1. Role of Arbitration and the Award Safety Net

 

Existing wages and conditions in awards and relevant agreements of the Commission constitute the safety net which protects employees who may be unable to reach an industrial agreement.

 

Wages and conditions of employment maintained in awards in accordance with these Principles and through the operation of section 40B of the Act are the safety net.

 

These Principles do not have application to Enterprise Orders made under section 42I of the Act.

 

 

  1. When an Award or relevant Agreement may be varied or another Award made without the claim being regarded as above or below the Safety Net:
     

In the following circumstances an award or relevant agreement may, on application, be varied or another award made without the application being regarded as a claim for wages and/or conditions above or below the award safety net:

 

(a)            to include previous State Wage Case increases in accordance with Principle 3.

 

(b) To incorporate test case standards in accordance with Principle 4.

 

(c)           To adjust allowances and service increments in accordance with Principle 5.

 

(d)           To adjust wages pursuant to work value changes in accordance with Principle 6.

 

(e)           To reduce standard hours to 38 per week in accordance with Principle 7.

 

(f)            To adjust wages for arbitrated safety net adjustments in accordance with Principle 8.

 

(g)           To vary an Award or relevant Agreement to include the Minimum Adult Wage in accordance with Principle 9.

 

(h)              A consent variation to a single enterprise specific award or a consent replacement award to a single enterprise specific award under Principle 10 giving effect to structural efficiency initiatives or productivity based arrangements.

 

(i)              Where awards already make provision for superannuation pursuant to principles which operated under State Wage Cases from 1986 until 1993 the terms of those clauses may be varied to refer to current Federal Statutes in lieu of employers’ contributions, but these clause shall not be varied otherwise.

 

(j)              To vary the award to incorporate industrial agreement provisions into the award by consent pursuant to section 40A of the Act.  The incorporated industrial agreement wage rate and allowance provisions will not be subject to arbitrated safety net adjustments and will be identified separately in the award at the time of variation.

 

 

  1. Previous State Wage Case Increases

 

Increases available under previous State Wage Case Decisions such as structural efficiency adjustments, and previous arbitrated safety net adjustments will, on application, still be accessible.

 

Minimum rates adjustments may also be progressed under this principle.

 

 

  1. Test Case Standards

 

Test Case Standards established and/or revised by the Commission may be incorporated in an award.  Where disagreement exists as to whether a claim involves a test case standard, those asserting that it does, must make an application and justify its referral.  The Chief Commissioner will decide whether the claim should be dealt with by a Commission in Court Session.

 

 

  1. Adjustment of Allowances and Service Increments

 

Existing allowances which constitute a reimbursement of expenses incurred may be adjusted from time to time where appropriate to reflect the relevant change in the level of such expenses.

 

Adjustment of existing allowances which relate to work or conditions which have not changed and of service increments will be determined in each case in accordance with State Wage Decisions.

 

Allowances which relate to work or conditions which have not changed and service increments may be adjusted as a result of the arbitrated safety net increase in Clause 8 of this Section.

 

In circumstances where the Commission has determined that it is appropriate to adjust existing allowances relating to work or conditions which have not changed and service increments for a monetary safety net increase, the method of adjustment shall be that such allowances and service increments should be increased by a percentage derived as follows: divide the monetary safety net increase by the rate of pay for the key classification in the relevant award immediately prior to the application of the safety net increase to the award rate and multiply by 100.

 

Existing allowances for which an increase is claimed because of changes in the work or conditions will be determined in accordance with the relevant provisions of the Work Value Changes Principle of this Statement of Principles.

 

New allowances to compensate for the reimbursement of expenses incurred may be awarded where appropriate having regard to such expenses.

 

Where changes in the work have occurred or new work and conditions have arisen, the question of a new allowance, if any, shall be determined in accordance with the relevant principles of this Statement of Principles.  The relevant principles in this context may be Work Value Changes Principle or First Award and Extensions to an Existing Award Principle.

 

New service increments may only be awarded to compensate for changes in the work and/or conditions and will be determined in accordance with the relevant parts of the Work Value Changes Principle of this Statement of Principles.

 

 

  1. Work Value Changes

 

(a)      Changes in work value may arise from changes in the nature of the work, skill and responsibility required or the conditions under which work is performed.  Changes in work by themselves may not lead to a change in wage rates.  The strict test for an alteration in wage rates is that the change in the nature of the work should constitute such a significant net addition to work requirements as to warrant the creation of a new classification or upgrading to a higher classification.

 

In addition to meeting this test a party making a work value application will need to justify any change to wage relativities that might result not only within the relevant internal award classifications structure but also against external classifications to which that structure is related.  There must be no likelihood of wage "leapfrogging" arising out of changes in relative position.

 

These are the only circumstances in which rates may be altered on the ground of work value and the altered rates may be applied only to employees whose work has changed in accordance with this provision.

 

In applying the Work Value Changes Principle, the Commission will have regard to the need for any alterations to wage relativities between awards to be based on skill, responsibility and the conditions under which work is performed.

 

(b)      Where new or changed work justifying a higher rate is performed only from time to time by persons covered by a particular classification or where it is performed only by some of the persons covered by the classification, such new or changed work should be compensated by a special allowance which is payable only when the new or changed work is performed by a particular employee and not by increasing the rate for the classification as a whole.

 

(c)      The time from which work value changes in an award should be measured is the date of operation of the second structural efficiency adjustment allowable under the September 1989 State Wage Decision ((1989) 69 WAIG 2917).

 

(d)      Care should be exercised to ensure that changes which were or should have been taken into account in any previous work value adjustments or in a structural efficiency exercise are not included in any work evaluation under this provision.

 

(e)      Where the tests specified in (a) are met, an assessment will have to be made as to how that alteration should be measured in money terms.  Such assessment should normally be based on the previous work and the nature and extent of the change in work.

 

(f)       The expression "the conditions under which the work is performed" relates to the environment in which the work is done.

 

(g)      The Commission should guard against contrived classifications and over-classification of jobs.

 

(h)      Any changes in the nature of the work, skill and responsibility required or the conditions under which the work is performed, taken into account in assessing an increase under any other provision of this Statement of Principles, shall not be taken into account in any claim under this provision.

 

 

  1. Standard Hours

 

In approving any application to reduce standard hours to 38 per week, the Commission will satisfy itself that the cost impact is minimised.

 

 

  1. Arbitrated Safety Net Adjustments

 

Where the minimum rates adjustment process in an award has been completed, the Commission may consider an application for the base rate, supplementary payment and arbitrated safety net adjustments to be combined so that the award specifies only the total minimum rate for each classification.

 

By consent of all parties to an award, where the minimum rates adjustment has been completed, award rates may be expressed as hourly rates as well as weekly. In the absence of consent, a claim that award rates be so expressed may be determined by arbitration.

 

The arbitrated safety net adjustment arising from the decision in Matter No. 957 of 2005 is $20.00 per week.

 

 

  1. Minimum Adult Award Wage

 

A minimum adult award wage clause will be required to be inserted in any new award.

 

The minimum adult wage clause will be as follows –

 

MINIMUM ADULT AWARD WAGE

 

(1)           No adult employee shall be paid less than the minimum adult award wage unless otherwise provided by this clause.

 

(2)           The minimum adult award wage for full-time adult employees is $504.40 per week payable on and from 7 July 2006.

 

(3)           The minimum adult award wage is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

 

(4)           Unless otherwise provided in this clause adults employed as casuals, part-time employees or piece workers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the minimum adult award wage according to the hours worked.

 

(5) Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision in this award to the minimum adult award wage.

 

(6) (a) The minimum adult award wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

 

(b) Liberty to apply is reserved in relation to any special category of employees not included here or otherwise in relation to the application of the minimum adult award wage.

 

 (7) Subject to this clause the minimum adult award wage shall –

 

(a)           apply to all work in ordinary hours.

 

(b)           Apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paid leave and for all purposes of this award. 

 

 (8) Minimum Adult Award Wage

 

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2006 General Order Wage Case Decision.  Any increase arising from the insertion of the adult minimum wage will be offset against any equivalent amount in rates of pay received by employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award.  Such above award payments include wages payable pursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements.  Absorption which is contrary to the terms of an agreement is not required.

 

Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset the adult minimum wage.

 

 (9) Adult Apprentices

 

(a) Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over, shall not be paid less than $421.70 per week.

 

(b) The rate paid in paragraph (a) above is payable on superannuation and during any period of paid leave prescribed by this award.

 

(c) Where in this award an additional rate is expressed as a percentage, fraction or multiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this award for the actual year of apprenticeship.

 

(d) Nothing in this clause shall operate to reduce the rate of pay fixed by the award for an adult apprentice in force immediately prior to 5 June 2003.

 

 

  1. Making or Varying an Award or issuing an Order (other than an Enterprise Order under section 42I of the Act) which has the effect of varying wages or conditions above or below the safety net

 

An application or reference for a variation in wages or conditions above or below the safety net will be referred to the Chief Commissioner for him to determine whether the matter should be dealt with by a Commission in Court Session or by a single Commissioner.

 

Provided that where parties to a single enterprise specific award apply to vary the award by consent or consent to a replacement award to give effect to structural efficiency initiatives or productivity based arrangements the Chief Commissioner may allocate the matter to a single Commissioner.

 

 

  1. New Awards (including interim Awards) and Extensions to an existing Award

 

 The following shall apply to the making of a new award (including an interim award) and an extension to an existing award:

 

(a) In the making of a new award, the main consideration shall be that the award meets the needs of the particular industry or enterprise while ensuring that employees' interests are also properly taken into account.  Structural efficiency considerations shall apply in the making of such an award.

 

(b) Subject to section 36A(3) in the making of an interim award the Commission shall ensure that the award meets the needs of the particular industry or enterprise while ensuring that employees' interests are also properly taken into account. Structural efficiency considerations shall apply in the making of such an award.

 

(c) A new award (including and interim award) shall have a clause providing for the minimum award wage [see Clause 9 of this Section] included in its terms.

 

(d) In the extension of an existing award to new work or to award-free work the rates applicable to such work will be assessed by reference to the value of work already covered by the award, providing structural efficiency considerations including the minimum rates adjustment provisions where relevant have been applied to the award.

 

 

  1. Economic Incapacity

 

Any respondent or group of respondents to an award may apply to reduce and/or postpone the variation which results in an increase in labour costs under this Statement of Principles on the ground of very serious or extreme economic adversity. The merit of such application shall be determined in the light of the particular circumstances of each case and any material relating thereto shall be rigorously tested. The impact on employment at the enterprise level of the increase in labour costs is a significant factor to be taken into account in assessing the merit of an application. A party making such an application must make and justify an application as a Special Case. It will then be a matter for the Chief Commissioner to decide whether it should be dealt with by a Commission in Court Session.

 

 

  1. Duration

 

This Statement of Principles will operate until reviewed.