Bread Vendors (Tip Top Bakeries - Country) Award

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

Application by Liquor, Hospitality and Miscellaneous Union, New South Wales Branch, Industrial Organisation of Employees.

 

(No. IRC 3009 of 2006)

 

 

AWARD

 

1.  Arrangement

 

Clause No.         Subject Matter

 

1.         Arrangement

2.         Definitions

3.         Relationship of the Vendor and the Company

4.         Vendor Performance

5.         Company’s Rights and Liability

6.         Appearance of the Vendor and Staff

7.         Delivery Vehicle

8.         Replacement Vehicle on Breakdown

9.         Vendor Insurances and Indemnities

10.       Vendor Account

11.       Vendor Discount

12.       Reimbursement of Expenses

13.       Minimum Discount

14.       Leave

15.       Non-personal Service

16.       Value of Run

17.       Engagement of a Vendor

18.       Termination of Engagement

19.       Consequences of Termination

20.       Assignment

21.       Settlement of Disputes and Grievances

22.       Anti-Discrimination

23.       Application

24.       Duration

25.       Review

26.       Notices

27.       Schedule 1 - Stationery and Uniform

28.       Schedule 2 - Specification of Vendor Vehicle

29.       Schedule 3 - Calculation of Initial Fee for New Vendor and Termination Fee

30.       Schedule 4 - Calculation of Value of Customer Removed from the Run

31.       Schedule 5 - Calculation of Value of a New or Additional Customer Added to the Run

32.       Schedule 7 - Schedule Of Vendor Discounts For Non - Bread Products

33.       Schedule 8 - Letter of Engagement of Vendor

34.       Schedule 9 - Vendor Discount and Reimbursement of Expenses

 

2.  Definitions

 

In this award

 

"Award rate" means the amount payable to a Baking Industry Employee Level 3 under the Liquor Hospitality and Miscellaneous Union - NSW Branch and Tip Top Bakeries (NSW) Enterprise Award 2005.

 

"Company" means George Weston Foods Limited (A.C.N. 008 429 632), trading as Tip Top Bakeries Orange.

 

"Company held account," means a customer who is:

 

(a)        A member of a central buying group, and the account is paid by the customer direct to the company and the company carries the debt; or

 

(b)        such other customers as may be agreed upon between the vendor and company, where the company carries the debt.

 

"Net sales units" means gross sales of units of bread made by the vendor to the customers of the company, less returns allowed by the company.

 

"Other fixed expenses" means the expenses specified in paragraph (c) of subclause 12.1 of clause 12, Reimbursement of Expenses.

 

"Prime service" means:

 

(a)        Daily liaison with each customer in relation to the customer’s needs;

 

(b)        The principal or major delivery to the customers on each day, which may be divided into a first and second load;

 

(c)        The collection of returns as required from each customer; and

 

(d)        Such reasonable service as may be required on merchandising, point of sale, and other customer support.

 

"Run" means those customers of the company the vendor is directed to supply and deliver to by the company.

 

"Union" means Liquor Hospitality and Miscellaneous Union - NSW Branch, New South Wales Branch.

 

"Unit of bread" means:

 

(a)        Any bread product which is packaged for sale as a single unit;  

 

(b)        A half dozen wrapped or unwrapped bread rolls, or any roll product deemed as unwrapped except for KFC cob rolls, for which one dozen shall constitute a unit.

 

"Vehicle running cost" means the cost specified in paragraph (b) of subclause 12.1 of clause 12, Reimbursement of Expenses.

 

"Vehicle standing charge" means he charge specified in paragraph (a) of subclause 12.1 of clause 12, Reimbursement of Expenses; and

 

"Vendor" means a person who is engaged by the company as a bread vendor on the terms of this agreement, or the previous agreement

 

"Vendor-held account" means any customer, which is not a company-held account.

 

3.  Relationship of the Vendor and the Company

 

3.1        It is acknowledged and declared that, subject to the provisions of Schedule 1 of the Industrial Relations Act 1996, nothing contained in this award is intended to or will be deemed to create the relationship of employer and employee between the company and the vendor.   

 

3.2        Nothing contained in this award shall be deemed to constitute the vendor an agent of the company for any purpose or a partner or co-venturer of the company.

 

3.3        Except as provided in this award, the vendor must  not otherwise use the company’s name or describe or otherwise hold himself/herself out or permit himself/herself to be held out as an employee or agent of the company.

 

4.  Vendor Performance

 

4.1        This award arises from the desire of the company, the union and the vendors to put in place an arrangement which preserves a vendor system with vendors purchasing product from the company, selling to customers and providing a high level of customer focused service.

 

4.2        The vendor must perform the prime service on the run on up to six days each week, such days to be agreed upon between the company and the vendor, which may include public holidays.

 

(a)        Where the company and the vendor are unable to agree on the days, the matter shall be handled in accordance with clause 21, Settlement of Disputes and Grievances.

 

(b)        The vendor may request to service the run on the seventh day or provide supplementary service (service only) on the run and the company will grant such a request whenever it is practical to do so.

 

4.3

 

(a)        The vendor will ascertain the customers’ orders and needs, place orders with the company and adjust orders as necessary in accordance with the company’s standard procedures.

 

(b)        The company will sell and supply to the vendor the products manufactured or supplied by the company which are needed for the performance of the run.

 

(c)        Title to the products will pass to the vendor on receipt at the loading dock, delivery depot or agreed delivery point.

 

4.4

 

(a)        The vendor must keep proper records of the names and addresses of all customers serviced by him/her in the usual time and order in which such customers are serviced.

 

(b)        The vendor must, on request, provide the company with such copies of these records as the company may require from time to time.

 

(c)        The records and all copies of the records will at all times remain the property of the company.

 

4.5        The vendor must not engage in activities which compete with the business of the sale of the company’s products to other than customers and will not engage in any activities, acts, matters or things which may jeopardise or prejudice the income or anticipated income of the company.

 

4.6        The vendor must not deliver products other than the products supplied by the company for delivery to customers, or deliver or offer the company’s products for sale to any person other than customers on the run, except with written approval of the company.

 

4.7        The vendor must merchandise the products in accordance with the reasonable requirements and standards of the company and the customers.  This includes the supply of point of sale material, which may require periodic renewal.

 

4.8        The vendor must at all times comply and conform to the conditions and requirements of all relevant statutes, regulations, proclamations, ordinances and by-laws which relate directly or indirectly to the delivery of the company’s products.

 

4.9        The vendor shall use the stationery specified in Schedule 1, which shall be supplied by the company.

 

4.10

 

(a)        Unless the company directs otherwise, all unsold products must be returned to the company.

 

(b)        The vendor must account to the company for returns of all unsold products by completing the returns documentation and ensuring returns are checked and recorded by the company.

 

(c)        The vendor shall manage and control returns of unsold products and breadbaskets in accordance with reasonable standards from time to time specified by the company.

 

(d)        All empty Bread baskets must be returned to the bakery or depot at the end of the run.

 

4.11      The vendor may be required to attend such meetings, training, trade presentations, seminars and similar presentations as may from time to time be reasonably required by the company, provided that the company gives reasonable notice of required attendance to the vendor.

 

4.12      The vendor must comply with all lawful and reasonable directions of the company or any person duly authorised by the company.

 

5.  Company’s Rights and Liability

 

5.1        The company may from time to time introduce new products, discontinue existing products or introduce seasonal products.

 

5.2        The company will not be liable to the vendor for:

 

(a)        Any delay in delivery of the company’s products to the vendor occasioned by shortage of stock, delays in transit, accident, strikes or by any other cause beyond the control of the company; or

 

(b)        For any defect in the nature or quality of the company’s products supplied to the vendor.

 

6.  Appearance of the Vendor and Staff

 

6.1        The company will provide the vendor with a uniform kit described in Schedule 1, which the company will charge to the vendor in accordance with Schedule.

 

6.2        The vendor must at all times while performing his/her duties and obligations under this agreement:

 

(a)        Wear the uniform provided by the company;

 

(b)        Dress, present and conduct himself/herself in a neat, respectable and businesslike manner;

 

(c)        Wear approved safety footwear; and

 

(d)        Ensure that all employees of the vendor comply with this clause.

 

7.  Delivery Vehicle

 

7.1        The vendor must provide, maintain and operate at his/her own expense a vehicle that meets the specifications set out in Schedule 2 for the performance of the run.

 

7.2        The vehicle must at all times comply with all applicable statutes, regulations, ordinances, proclamations and by-laws.

 

7.3        The company may, at its own expense, have from time to time displayed or painted on any vehicle used or operated by the vendor for the performance of the run such wording or advertising matter as it may think fit and the vendor must not interfere with, deface or alter the same without the PRIOR WRITTEN consent of the company.  The vendor must not display or allow to be displayed any other advertising or signs without the prior written approval of the company.

 

7.4        The vendor must keep the vehicle clean and in a fit and proper condition according to the reasonable requirements of the company.

 

8.  Replacement Vehicle on Breakdown

 

8.1        The company may supply a replacement vehicle, when the vendor’s vehicle is temporarily broken down, to enable the vendor to have necessary repairs made, provided that:

 

(a)        The vendor shall not be paid any vehicle standing charge or vehicle running cost for the period during which the company supplies a vehicle;

 

(b)        The company shall pay all running costs of the vehicle supplied; and

 

(c)        The period during which the company supplies a vehicle shall not exceed two weeks in any one year, unless specifically agreed in writing in advance by the company, and then only to a total of four weeks.

 

8.2        The vehicle supplied by the company must be:

 

(a)        Driven and operated in a safe manner without damage to the vehicle;

 

(b)        Maintained and operated in accordance with proper operating procedures as per S.O.P.; and

 

(c)        Kept clean and hygienic and washed and cleaned prior to its return to the company; and

 

8.3        The company will maintain appropriate insurance in respect of the vehicle supplied by it but the vendor will be liable for damage sustained as a result of any act, default or negligence of the vendor which is not covered by insurance (including the excess).

 

9.  Vendor Insurances and Indemnities

 

9.1        The vendor must maintain a comprehensive policy of insurance with an insurance company that is an approved insurance company approved by the company against any claim for damage to or caused by the vehicle used by him/her to perform the run.

 

9.2        The vendor shall at times indemnify and keep indemnified the company from and against any liabilities, losses, damages, costs and expenses of whatsoever description incurred by the company as a result of any actions, suits or claims made or brought against the company in respect of or arising out of:

 

(a)        The debts of the vendor; or

 

(b)        Any act, default or negligence of the vendor in connection with this agreement.

 

9.3        The vendor must properly insure and keep insured any worker employed by the vendor and in respect of whom the vendor must provide insurance cover under the provisions of the relevant workers’ compensation legislation.

 

9.4        The vendor must insure himself/herself and any persons acting on his/her behalf against liability from public risks for an amount nominated by the company from time to time, but in any event not less than $3,000,000.

 

9.5        The vendor must provide the company with proof of currency of the insurance policies referred to in this clause 9 on the date of entering this agreement and must provide the company with evidence of the renewal of the policies from time to time.

 

10.  Vendor Account

 

10.1      The vendor shall purchase from the company the units of bread required to service the run and the company shall charge the vendor for he net sales units supplied at normal wholesale prices less the discount specified in subclause 11.1 of clause 11, Vendor Discount.

 

10.2      The company will give the vendor credit for:

 

(a)        Net sales units supplied to customers who are billed direct by the company; and

 

(b)        Vehicle standing charge, vehicle running costs and other fixed expenses.

 

10.3      The company shall provide to the vendor each day an account, which itemises daily the total net sales units.  The account will identify by product the total net sales units made to customers who are billed direct by the company and credits allowed in subclause 10.2 of this clause.

 

10.4      The vendor shall pay each account within seven days of the account being provided to the vendor

 

11.  Vendor Discount

 

11.1      A Vendor shall be allowed a discount recommended wholesale price at the rate set out Schedule 7 for each net sales unit purchased from the company.

 

11.2      The vendor shall be allowed the discount only for net sales units, which are sold and delivered by the vendor.

 

11.3      If in any week the vendor fails to comply with the company’s normal credit terms, the vendor’s discount in respect of that week shall be reduced by 2.5 per cent.

 

12.  Reimbursement of Expenses

 

12.1      A vendor shall be allowed credit on each weekly account for:

 

(a)        Vehicle standing charge, depending on the age of the vendor’s vehicle as set out in Schedule 7;

 

(b)        Vehicle running costs at the rate per kilometre set out in Schedule 7 of the weekly distance travelled to perform the run, provided that a maximum of 15 kilometres each way each day shall be paid for travel between the vendor’s ordinary residence and the bakery or depot; and

 

(c)        Other fixed expenses at the rate set out in Schedule 7 for bad debts, uniforms, accounting fees, stationery, public risk insurance and requirement to service customers on the following gazetted public holidays:

 

Australia Day, Easter Saturday, Easter Monday, Queen’s Birthday, Labour Day and Union Picnic Day.

 

12.2      Reimbursement of vehicle expenses shall be adjusted as set out in Schedule 7.

 

13.  Minimum Discount

 

Where the amount calculated by subtracting the amount payable by the vendor for the products purchased from the wholesale list price value of products purchased by the vendor is less than an amount equal to that which would have been paid to a level 3 employee for the hours worked in accordance with the Liquor Hospitality and Miscellaneous Union - NSW Branch and Tip Top Bakeries (NSW) Enterprise Award 2005, the company shall pay an additional discount such that the amount calculated is not less than the appropriate award-based rate.

 

Leave

 

14.1      The vendor shall be entitled to:

 

(a)        Five calendar weeks (is defined as 6 days per week) annual leave after each completed year of engagement, which shall be taken within six months of its accrual;

 

(b)        Long Service leave in accordance with the Long Service Leave Act 1955;

 

(c)        Nine days sick leave each year of engagement, which shall be cumulative from year to year if not taken (each working day of sick leave taken shall reduce the balance of sick leave by one day); and

 

(d)        One day of leave to be credited as agreed with the company for each gazetted public holiday, except those specified in paragraph (c) of subclause 12.1 of clause 12.

 

14.2      The company shall provide an employee to perform the run while the vendor is on annual leave, long service leave or sick leave.

 

14.3      During periods of annual leave, long service leave and sick leave the vendor shall receive:

 

(a)        The same discounts for the net sales units achieved on the run in the vendor’s absence that he/she would have received had he/she performed the run as per clause 11.

 

(b)        The other fixed expenses that are payable in respect of the run as per clause 12.

 

(c)        The company will be responsible for the collection of all monies and will be responsible for any shortages or debts incurred during the period the vendor is on leave.

 

14.4

 

(a)        One week prior to the date the vendor has been approved to go on annual leave, the vendor shall provide the company an accurate list of customers serviced on the run on a daily basis, including the usual time and order of service and any special instructions.

 

(b)        If the vendor fails to provide the list in accordance with paragraph (a) of this subclause, the company may provide an employee to accompany the vendor for such period as is necessary to bring the necessary records up to date and charge the vendor the cost to the company of employing the employee for the period the employee accompanies the vendor.

 

14.5

 

(a)        If the vendor is proceeding on annual leave for more than one week, the vendor may, by notice in writing given at least one week prior to the commencement of leave, request prepayment of the leave.

 

(b)        If a request is received that complies with paragraph (a) of this subclause, the company shall prepay the leave at the award rate.

 

(c)        The company shall reconcile the prepayment with settlement of the account due on resumption of the vendor from leave.

 

14.6      While the vendor is on leave the company is not obligated to provide a vehicle to service the run.

 

14.7      If, while the vendor is on leave, the vendor’s vehicle is used by the company to service the run:

 

(a)        The company must pay to the vendor the vehicle standing charge and vehicle running cost for the vehicle as per clause 12.1 (a)(b).

 

(b)        The company must check the vendor’s vehicle or roadworthiness and safety prior to use by the company.

 

(c)        The vendor shall be responsible for the insurance of the vehicle and must advise the insurer of his/her vehicle that an employee of the company will be driving the vehicle.

 

(d)        In the event of an accident occurring and if the employee of the company performing the run is under 25 years of age, the company will meet any additional excess under the vehicle insurance policy in relation to a driver under age 25.

 

(e)        The company shall be liable only for mechanical damage caused by the negligence of the company or the company’s employee.

 

(f)         The vendor shall be liable for accidental damage, wear and tear, normal repairs and costs of fuel, consumable and routine maintenance.

 

(g)        The company shall carry out, at the vendor’s expense, normal routine maintenance (fuel, air, water and oil) and routine servicing.

 

(h)        The company must ensure that the vendor’s vehicle is used only to perform the deliveries on a "yard-to-yard" basis as per the run sheet supplied by the Vendor.

 

14.8      If, while the vendor is on leave, the company’s vehicle is used by the company to service the run, the company shall:

 

(a)        Pay to the vendor the vehicle standing charge as per clause 12.1;

 

(b)        Not pay to the vendor any vehicle running costs as per clause 12.1; and

 

(c)        Shall charge the vendor the vehicle standing charge of a four-year-old vehicle as per schedule 7.

 

15.  Non-Personal Service

 

The vendor must notify the company immediately if the vendor is unable to personally carry out his/her duties and obligations under this award for any reason whatsoever.

 

15.1      Where the vendor is unable to personally carry out his/her duties and obligations under this award as a result of a substantiated illness or injury or other absence authorised by the company and providing that available paid leave has been exhausted, the company may, engage a competent person to carry out the duties and obligations of the vendor under this award for a period not exceeding 13-weeks.

 

15.2      If the Vendor is unable to personally carry out his/her duties and obligations under this award after the 13-week period, the run will revert to a company run and the Vendors contract will terminate with one months notice.

 

15.3      During the period that the company arranges for a person to carry out the vendor's duties and obligations under this award, the vendor:

 

15.4      Will not receive any payments for other fixed expenses or of any discounts for the net sales units achieved on the run in the vendor's absence; and

 

15.5      Will only receive payment for vehicle standing charge and vehicle running cost if the vendor's vehicle is used to perform the run.

 

16.  Value of Run

 

16.1      The company carries on the business of manufacturing, marketing, selling and distributing bread and related products ("the business"), and the goodwill of the business is, and will at all times remain, the property of the company.

 

16.2      The company recognises that the run has a value based upon the right of the vendor to perform and provide service to a list of customers, which constitute that run for the purpose of calculating the value of the run.

 

16.3      On engagement and termination of the vendor the company shall provide to the vendor a written list of the customers constituting the run for the purpose of calculating the value of the run.  Each addition or deletion of a customer which is included in the run for purposes of calculating the value of the run shall be advised to the vendor in writing.

 

16.4      Initial fee for new vendor on or prior to the engagement of the vendor by the company, the vendor must pay the company an initial fee for the right to perform the run calculated in accordance with Schedule 3.

 

16.5      Removal of a customer from the run The company may at any time remove a customer from the run, provided that:

 

16.6      The company gives the vendor at least one month’s notice of its intention to remove that customer, except where the customer demands the vendor no longer services that customer (in which case the company may remove the customer immediately); and

 

(a)        Where the customer is listed as constituting part of the run for the purpose of calculating the value of the run, the company pays the vendor at the time of removal of that customer an amount calculated in accordance with Schedule 4; and

 

(b)        The company, for the following period of 26 weeks, either:

 

(i)         Provides to the vendor other customers that have weekly net sales units of not less than the customer removed; or

 

(ii)        Continues to pay to the vendor an amount per week equal to the discounts applicable to all the net sales units that the vendor sold to the customer on average over the previous 13 weeks.

 

16.7      Addition of a customer to a run

 

(a)        The company may request the vendor to provide service to new or additional customers.

 

(b)        Where a new or additional customer is added to the run and is to be listed as a customer for the purpose of calculating the value of the run, the vendor shall pay to the company an amount calculated in accordance with Schedule 5.

 

17.  Engagement of a Vendor

 

On or prior to the date of engagement of the vendor, the company must provide to the vendor a letter in the form set out in Schedule 6.

 

18.  Termination of Engagement

 

18.1      The company may terminate the engagement of the vendor by giving three months’ notice in writing to the vendor.

 

18.2      Without prejudice to any other remedy the company may have against the vendor, the company may terminate the engagement of the vendor immediately, by written notice to the vendor, if the vendor:

 

(a)        Breaches or fails to perform any of the provisions of this award;

 

(b)        Becomes bankrupt or assigns his/her estate for the benefit of his/her creditors or any of them;

 

(c)        Becomes of unsound mind or a person whose person or estate is liable to be dealt with in any way under the law relating to mental health;

 

(d)        Is convicted of any indictable offence; or

 

(e)        Is guilty of any conduct which in the opinion of the company might tend to injure the reputation or the business of the company or any of its related bodies corporate (as defined in Section 50 of the Corporations Law or any provision of any legislation replacing the Corporations Law).

 

18.3      The vendor may terminate his/her engagement by giving three months’ notice in writing to   he company, or such lesser period as may be agreed.

 

19.  Consequences of Termination

 

19.1      On termination of engagement of the vendor for any reason whatsoever:

 

(a)        The vendor must deliver up to the company all customer lists, stationery, documentation, records, uniforms and all other property of the company in his/her possession or under his/her control.

 

(b)        The Company will, at its own expense, remove such wording or advertising matter as it may have caused to be displayed or painted on the vendor’s vehicle in accordance with clause 7, Delivery Vehicle, and the vendor will be responsible for the removal of any other advertising matter or signs on the vehicle.

 

(c)        The company will pay to the vendor a termination fee for maintenance and enhancement of the run calculated in accordance with Schedule 3, less any monies owing by the vendor to the company, including any amount to be deducted in accordance with schedule 6

 

(d)        The vendor will be solely and entirely responsible for he collection of any amount outstanding or products supplied by the vendor, except to customers who are billed direct by the company.

 

19.2      For a period of six months after the date of termination the vendor must not, either alone or in partnership or as an agent or employee of any person, firm or corporation, in any way, directly or indirectly, solicit or endeavour to obtain the custom of or serve or cause to be served with bread or other bakery products any of the customers who were served with products by him/her in performance of the run under this award during the six months prior to the termination of the engagement.

 

19.3      On termination of the engagement of the vendor, the vendor shall be paid any annual leave entitlement, calculated at the award rate.

 

20.  Assignment

 

This award may not be assigned by either party, except that the company may assign its rights and obligations under this award at any time to a related body corporate (as defined in Section 50 of the Corporations Law or of the provisions of any legislation replacing the Corporations Law).

 

21.  Settlement of Disputes and Grievances

 

21.1      If a vendor or vendors have a grievance with the company, the grievance must be dealt with in accordance with the following procedure:

 

(a)        A grievance must initially be dealt with as close to its source as possible, with gradual steps for further discussions and resolution at higher levels of authority.

 

(b)        The vendor(s) must notify in writing the Area Manager as to the substance of the grievance, request a meeting for discussions and state the remedies being sought.

 

(c)        If the grievance is not resolved through discussion with the Area Manager, the matter must be referred to the responsible District or Sales Manager.

 

(d)        At the conclusion of the discussions, the company must provide a response to the grievance including, if the matter has not been resolved, any reasons for not implementing any proposed remedy, and.

 

(e)        If not resolved at the operations level, the issue must be referred to the company’s senior management and dealt with by:

 

(i)         Discussion between the company, vendor and vendor representative;

 

(ii)        Referred to an agreed mediation mechanism; or

 

(iii)       Referred to the Industrial Relations Commission of New South Wales.

 

(f)         Reasonable time limits must be allowed for discussions at each level of authority.

 

(g)        Whilst this procedure is being followed, normal work must continue.

 

21.2      The company may be represented by an industrial organisation of employers and the vendor may be represented by the union for the purpose of each stage of this procedure.

 

22.  Anti-Discrimination

 

22.1      It is the intention of the parties bound by this award to seek to achieve the object in section 3(f) of the Industrial Relations Act 1996 to prevent and eliminate discrimination in the workplace.  This includes discrimination on the grounds of race, sex, marital status, disability, homosexuality, transgender identity, age and responsibilities as a carer.

 

22.2      It follows that in fulfilling their obligations under the dispute resolution procedure prescribed by this award the parties have obligations to take all reasonable steps to ensure that the operation of the provisions of this award are not directly or indirectly discriminatory in their effects.  It will be consistent with the fulfilment of these obligations for the parties to make application to vary any provision of the award which, by its terms or operation, has a direct or indirect discriminatory effect.

 

22.3      Under the Anti-Discrimination Act 1977, it is unlawful to victimise an employee because the employee has made or may make or has been involved in a complaint of unlawful discrimination or harassment.

 

22.4      Nothing in this clause is to be taken to affect:

 

a.          Any conduct or act which is specifically exempted from anti- discrimination legislation;

 

b.         Offering or providing junior rates of pay to persons under 21 years of age;

 

c.          Any act it practice of a body established to propagate religion which is exempted under section 56(d) of the Anti-Discrimination Act 1977;

 

d.         A party to this award from pursuing matters of unlawful discrimination in any state or federal jurisdiction.

 

22.5      This clause does not create legal rights or obligations in addition to those imposed upon the parties by the legislation referred to in this clause.

 

23.  Application

 

This award shall apply to all vendors engaged by the company operating from the Tip Top Orange Bakery, Peisley Street, Orange, and its depots.

 

This award rescinds and replaces the Bread Vendors (Tip Top Bakeries - Country) Award published 10 March 2000 (314 I.G. 871).

 

24.  Duration

 

This award shall take effect from the first full pay period on or before 7 September 2006, and shall remain in force until 1 February 2009.

 

25.  Review

 

Not later than six months prior to the expiry of this agreement the company, vendors and the union shall commence a process to review this agreement.

 

This process shall include:

 

(a)        An exchange of issues, items and matters for review;

 

(b)        Opportunity for direct involvement, communication and discussion with and by each vendor; and

 

(c)        The establishment of a timetable for conclusion of the review process and reaching a new agreement prior to the expiry date of this award.

 

26.  Notices

 

26.1      Any notice, approval, consent or other communication to be given or made under this award shall be in writing and shall be delivered personally or given by prepaid registered post or facsimile to a party at the last known address of that party.

 

26.2      Proof of posting by prepaid registered post or of the dispatch of a facsimile shall be proof of receipt and, in the case of a letter, on the third day after posting and, in the case of a facsimile, on the day immediately following the date of dispatch.

 

27.  Schedule 1 - Stationery and Uniform

 

1.          Stationery

 

(a)        Printed delivery dockets

 

(b)        Printed credit dockets

 

(c)        Preliminary load sheets

 

(d)        Returns slips

 

2.          Uniform

 

(a)        A vendor uniform kit will be supplied by the company on engagement and charged to the vendor at 50 per cent of invoice cost to the company.

 

(b)        Replacement uniforms will be supplied on a demonstrated needs basis and charged to the vendor at 50 per cent of invoice cost to the company.

 

(c)        The vendor uniform kit will consist of:

 

Shirts (short sleeves)	5
Trousers	3
Shorts	3
Jackets	1
Socks	5
Safety Footwear	1

 

28.  Schedule 2 - Specification of Vendor Vehicle

 

1.          If the vendor was engaged as a vendor under the previous award immediately prior to the commencement of this award, the vehicle used by the vendor for that purpose will be acceptable to the company, provided that, in the opinion of the company, the vehicle is adequate for the performance of the run.

 

2.          New and Replacement Vehicles: Unless specifically authorised in writing by the company, all new and replacement vehicles shall satisfy the following specifications:

 

(a)        Cab chassis white painted to accommodate:

 

(b)        Pantech body with internal dimensions:

 

WIDTH	2.l metres
LENGTH	4.3 metres
MINIMUM HEIGHT	2 metres

 

(c)        Maximum Unladen Vehicle Height (including pantech) 3.3 metres

 

(d)        With the commencement of this agreement, any new or replacement vehicles must have a metal floor in the Pantech body

 

29.  Schedule 3 - Calculation of Initial Fee for New Vendor and Termination Fee

 

1.          In this Schedule "units" means the average weekly net sales units’, excluding House Brand, Generic and I.S.B. units of bread to the customers listed as constituting the run for he purpose of calculating the value of the run for the previous 52 weeks as per schedule 8.

 

2.          The initial fee and the termination fee will be calculated using the following formula:

 

Value

=

U  x  P

x  6.5

 

Where:

 

U  =  Units; and

 

P  =  List wholesale price of a loaf of Sunblest effective at the date of calculation; provided that P shall be not less than $2.15.

 

NOTE:  Where a 52-week history is not available for a customer on the run, 75 per cent of the average weekly net sales units based on the available history of net sales units will be used for formula calculation. An adjustment will be made when the actual 52-week history figure is available.

 

30.  Schedule 4 - Calculation of Value of Customer Removed from the Run

 

1.          In this Schedule

 

"Customer" means a customer removed from the run which was listed as constituting part of the run for the purpose of calculating the value of the run at the date of performing the calculation; and

 

"Units" means average weekly net sales units’, excluding House Brand, Generic and I.S.B. units of bread to the customers listed as constituting part of the run for purposes of constituting the value of the run for the previous 52 weeks as per schedule 8.

 

2.          The value of the customer shall be calculated using the following formula:

 

Value

=

U  x  P

x  6.5 Where

 

U  =  Units for that customer; and

 

P  =  List wholesale  price of loaf of Sunblest effective  at the date of calculation; provided that P shall be not less than $2.15.

 

31.  Schedule 5 - Calculation of Value of a New Or Additional Customer Added to the Run

 

1.          In this Schedule:

 

"Customer" means the customer to be added to the list of customers constituting part of the run for the purpose of calculating the value of the run at the date of performing the calculation; and

 

"Units" means the average weekly net sales units for the previous 52 weeks for the customer, excluding House Brand, Generic and I.S.B units of bread.

 

2.          The value of a customer shall be the lesser of:

 

(a)        Any increase in the value of the run calculated in accordance with Schedule 3 for the 52 weeks prior to the customer being added to the run and the 52 weeks subsequent to the customer being added to the run; and

 

(b)        The value for the customer calculated using the following formula:

 

Value

=

U  x  P

x  6.5  Where

 

U  =  Units for the customer; and

 

P  =  List wholesale price of loaf of Sunblest effective at the date of calculation; provided that P shall be not less than $2.15.

 

Provided that the value of the customer will be deemed to be zero if the units on the run for 52 weeks after adding the customer are less than the units used to calculate the initial fee after adjustment for any new or additional customers or removal of any customers.

 

3           The value of a customer, added to a run after being removed from another run, shall be:

 

Value  =  U  x  P  x  6.5 Where:

 

U  =  Units for the customer; and

 

P  =  List wholesale price of loaf of Sunblest effective at the date of calculation;

 

32.  Schedule 7 - Schedule of Vendor Discounts for Non - Bread Products

 

Below listed products are not included in the calculation of Vendor Round Value (Initial Fee i.e. Run Value)

 

NON BREAD PRODUCTS

 

 

33.  Schedule 8 - Letter of Engagement of Vendor

 

Engagement as a Bread Vendor

 

Dear (Insert name of the vendor),

 

I am pleased to offer you engagement as a bread vendor with Tip Top Bakeries (Orange) under the terms and conditions of the attached agreement.

 

Attached to this letter are the following annexures, which form part of your contract of engagement:

 

Annexure 1:  A list of the customers constituting the run for purposes of calculating the value of the run, showing net sales units (clause 2) for the previous 52 weeks.

 

Annexure 2:  Calculation of the initial fee (clause 15 and schedule 3) in accordance with the agreement.

 

Annexure 3:  List of customers to be serviced on the run.

 

You will be required to perform deliveries to such customers as specified by the company on the days specified in the agreement, as per clause 4. 

 

The target level of returns as per clause 4 10.(c), for this run, will be (     )]. This target level will be reviewed with you each year, effective from 1 February, and may be reviewed during the year if significant changes take place to the run.

 

Please sign below to accept this offer and forward the amount of $ ........ to the company in payment of the initial fee for the run.

 

Yours faithfully,

 

On copy:

 

I accept  the offer to become a bread vendor  with the company on the terms set out in this letter and the award.

 

…………………………………  Date ………………………………………….

 

34.  Schedule 9 - Vendor Discount and Reimbursement of Expenses

 

 

 

 

F. MARKS J

 

 

____________________

 

 

Printed by the authority of the Industrial Registrar.