BREAD VENDORS (TIP TOP BAKERIES SYDNEY) INTERIM AWARD 2004
INDUSTRIAL RELATIONS
COMMISSION OF NEW SOUTH WALES
Application by George
Western Foods Ltd t/as Tip Top Bakeries.
(No. IRC 5479 of 2004)
|
Before Commissioner
Macdonald
|
30 September 2004
|
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
Earnings
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. Run Volume
Reduction
22. Settlement
of Disputes and Grievances
23. Application
24. Duration
25. Area,
Incidence and Duration
26. Review
27. Notices
Schedule 1 -
Stationary and Uniforms
Schedule 2 -
Specification of Vendor Vehicle
Schedule 3 -
Calculation of initial Fee for a New Vendor and Termination Fee
Schedule 4 -
Calculation of value of Customer Removed from the Run
Schedule 5 - Calculation
of value of a New or Additional Customer added to the Run
Schedule 6 - Letter
of Engagement of Vendor
Schedule 7 - 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 Miscellaneous Workers and Tip Top Bakeries (NSW) Enterprise Award.
"Company" means George Weston Foods Limited (A.C.N. 008 429 632), trading as Tip
Top Bakeries.
"Food service means KFC, Hungry Jacks, Burger King, Red Rooster, State and Federal Government
contracts, Sizzler and any major fast food chain for which Tip Top Bakeries
gains a contract to supply product subsequent to the commencement of this
award.
"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 reasonably directed by the company to supply and deliver to.
"Union" means the Australian Liquor, Hospitality
and Miscellaneous Workers Union, New South Wales Branch.
"Unit of bread" means:
(a) any bread
product which is packaged for sale as a single unit;
(b) any unwrapped
loaf of bread capable of being sold as a
single unit as defined in the Bread (Weights) Regulation 1977; and
(c) 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 award, or the
previous award.
3. Relationship of
the Vendor and the Company
3.1 It is
acknowledged and declared that the employment of the vendor shall be in
accordance with Section 5, subsection 3 and Schedule 1 of the Industrial
Relations Act 1996.
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
(a) The vendor
must perform the prime service on the run on up to six days each week, such
days to be agreed between the company and the vendor, which may include public
holidays.
(b) Where the
company and vendor are unable to agree on the days, the matter shall be handled
in accordance with clause 21, Settlement of Disputes and Grievances.
(c) The vendor may
request to service the run on the seventh day or provide supplementary service
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
(a) The vendor
must not engage in activities which compete with the business of the sale of the
company’s products to 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 may
trade in products other than the products supplied by the company for delivery
to customers that do not compete with any other GWF products. Written approval
of the company must be obtained before a vendor can carry goods other than
those 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 bread baskets in
accordance with reasonable standards from time to time specified by the
company.
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 he company, provided that
reasonable notice of required attendance is given to the vendor by the company.
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 award:
(a) wear the
uniform provided by the company;
(b) dress, present
and conduct himself/herself in a neat, respectable and businesslike manner;
(c) wear suitable
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;
(c) kept clean and
hygienic and washed and cleaned prior to its return to the company; and
(d) kept
roadworthy in accordance with RTA regulations.
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.
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 with the Insurance Industry Council 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 he vendor in
connection with this award.
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 on the date of entering this award 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 week a fully itemised account which itemises
daily the total net sales units during each week. 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 at the rate set out in Item 1 of 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 he age of he vendor’s vehicle as set out in Item
2 of Schedule 7;
(b) Vehicle
running costs at the rate per kilometre set out in Item of 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 Item 4 of Schedule 7 for bad debts, uniforms,
accounting fees, stationery, public risk insurance and requirement to service
customers on the following 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 Item 5 of Schedule 7.
13. Minimum Earnings
13.1 During the term
of this Award, the Company may enter into an agreement with a Vendor with
respect to the minimum earnings of the Vendor within each designated financial
quarter. The conditions and obligations of such agreements are described in
this clause. For the purposes of this clause, the designated quarters are: August
and September 2004, October to December 2004; January to March 2005; April to
June 2005.
13.2 An agreement
under this clause shall be voluntary on the part of the Vendor. A Vendor may
not participate unless he/she provides the Company with a written election to
participate in the minimum earnings agreement.
13.3 Each of the
following shall apply with respect to any minimum earnings agreement:
Upon the completion of each designated financial quarter,
the Company shall calculate the average weekly earnings of the Vendor in the
designated financial quarter,
If the Vendor’s average weekly earnings are less than
$1,200 (or such other amount as agreed between the Company and the Vendor) in
the designated financial quarter, the difference between the two amounts shall
be known as the Earnings Shortfall,
Where an Earnings Shortfall occurs, the Company shall
pay the Vendor an Adjustment Amount. The Adjustment Amount will be calculated
by multiplying the Earnings Shortfall by the number of weeks within the
designated financial quarter,
The Company will endeavour to provide sufficient unit
volumes to the Vendor in order for the Vendor to have average weekly earnings
of $1,200 in the designated financial quarter (or such other amount as settled
by agreement between the Company and the Vendor),
13.4 Despite any
provision or agreement to the contrary, the Company will not be liable to pay
an Adjustment Amount to a Vendor in relation to a designated financial quarter
if, during that financial quarter:
the Vendor is responsible for the loss of volume from
other stores held by the Vendor; or
the Vendor terminates his/her relationship in
accordance with this Award.
13.5 With respect to
the run of any Vendor participating in a minimum earnings agreement, the
Company may, subject to safety considerations, restructure the run in order to
make adjustments to ensure sufficient volumes can be achieved. Any stores and
units provided under an agreement will not form part of Vendor equity. If an
equity store is removed from the Vendor as part of a run restructure, equity on
that store will be frozen.
14. Leave
14.1 The vendor
shall be entitled to:
(a) Five calendar
weeks 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 taken as agreed with the company for each gazetted public holiday, except those specified in paragraph (c) of subclause 12.1 of clause 12,
Reimbursement of Expenses.
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; and
(b) the other
fixed expenses that are payable in respect of the run.
(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 or long service 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 or long service 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.
(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 unless otherwise agreed with 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;
(b) not pay to the
vendor any vehicle running costs; and
(c) shall charge
the vendor the vehicle standing charge of a four-year-old vehicle.
15. Non-Personal
Service
15.1 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.
15.2 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 vendor may, at his/her own expense, engage a competent person
approved by the company ("approved person") to carry out the duties
and obligations of the vendor under this award for a period not exceeding 13
weeks, except in exceptional circumstances.
15.3 The approved
person will be required to comply with the provisions of this award.
15.4 If the vendor
engages an approved person, the provisions of clauses 10, Vendor Account; 11,
Vendor Discount; 12, Reimbursement of Expenses, and 13, Minimum Discount, shall
continue to apply as if the vendor was performing the run.
15.5 If the vendor
is unable to engage an approved person, the company will appoint a person to
carry out the duties and obligations of the vendor under this award.
15.6 During the
period that the company arranges for a person to carry out the vendor’s duties
and obligations under this award, the vendor:
(a) 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
(b) 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:
(a) the company
gives he 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
(b) 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
(c) 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.
16.6 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 subclause 7.3 of 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
the transitional arrangements entered into between the vendor and the company.
(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 or long service 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. Run Volume
Reduction
21.1 When the unit volume
of a Vendor’s run suffers a continued significant decline due to market place
issues outside the Vendors and Company’s control, The Company will initiate the
following procedure:
(a) Transfer units
from an existing company or Vendor (if that Vendor agrees) run approximate to
the declined amount.
(b) If clause 21
-(a) is not possible, transfer the Vendor run to another area of approximate
unit volume.
(c) If clauses 21
-(a) and 21 -(b) are not possible, buy back the run from the Vendor as in
specified in clauses 18, 19 and schedule (c) of this agreement.
(d) After the
Vendor run is bought back, the Vendor may apply for employment as a company
driver in line with the GWF recruitment and selection process.
21.2 This can only
be done twice in any 12-month period for each Vendor, and each instance will be
treated separately.
21.3 The underlying
objective of this clause is to maximise customer service, distribution
efficiency, Vendor viability and best cost operations.
22. Settlement of
Disputes and Grievances
22.1 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 and discussed
with the Site Vendor Consultative Committee.
(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.
(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 union;
(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.
22.2 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.
23. Application
This award shall apply to vendors engaged by the company
within New South Wales operating from the Chatswood, Fairfield and Illawarra
Bakeries.
24. Duration
This award shall take affect from the first account week to
commence on or after 15th May 2004, and will cease on 15 May 2005.
25. Area, Incidence
and Duration
This award rescinds and replaces the Bread Vendors (Tip Top
Bakeries Sydney) Award published on 7 December 2001 (330 I.G. 205) (Serial No.
C0398).
26. Review
Not later than six months prior to the expiry of this award
the company, vendors and the union
shall commence a process to review this award.
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.
27. 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.
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
|
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
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 units, of bread to the customers listed as constituting the run
for he purpose of calculating the value
of the run.
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
$1.99.
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.
NOTE: The termination fee to be paid to an existing vendor
shall not be less than the value of the route round (equity) at the time
immediately after the vendor moved to the new route round as a result of the
997/98 Sydney Distribution Rationalisation Project (Project 1). This protection
will not be afforded to equity lost as a result of the loss of customers where
such loss is caused by negligence or any other cause for which the vendor can be
reasonably held liable.
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 units of bread.
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 $1.99.
Schedule 5
CALCULATION OF
VALUE OF A NEW OR ADDITIONAL CUSTOMER ADDED TO THE RUN
1. In this
Schedule:
"Company Held Account" means a customer which
is:
(a) a member of a
central buying group, and the account is paid by the customer direct to the
company and the company carried the debt; or
(b) such other
customers as may be agreed between the vendor and the company, where the
company carried the debt.
"Customer" means the customer to be added to
the list of customers constituting 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 units
of bread.
"Vendor-held Account" means any customer
which is not a company-held account.
2. The value of
a new customer which is a company-held account shall be the lesser of:
(a) any increase
in the value of the run calculated in accordance with Schedule 3 for the 52
weeks subsequent to the customer being added to the run over the 52 weeks prior
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
$1.99.
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. Where a new
customer which is a vendor-held account is added to a run the vendor will not be required to pay for that
customer, and the company will not pay
the vendor on termination for
the base level units originally obtained. Growth in that customer will increase
the vendor run value.
At the end of the first 52 weeks of trading, a
calculation will be made of the units
which would have been used for calculation of value as per paragraph 2 above
(i.e., the lesser of customer units or
net increase in units on run). On termination, the units, including the
customer, included in the run for purposes of run value will be calculated, and
reduced by the lesser of
(i) the units of
the customer over the 52 weeks prior to termination; and
(ii) the
units originally calculated for the 52
weeks after the customer commenced.
4. The value of
a customer, either vendor-held account or
company-held account, 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; provided that P shall be not less than $1.99.
Schedule 6
LETTER OF
ENGAGEMENT OF VENDOR
Dear (Insert name of the vendor)
Engagement as a Bread Vendor
I am pleased to offer you engagement as a bread vendor with
Tip Top Bakeries ( ) under the terms and conditions of
the attached award.
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 for the previous 52 weeks.
Annexure 2: Calculation
of the initial fee in accordance
with the award.
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 following days of the week (whether or no these days are public holidays),
unless specifically directed otherwise by the company, viz.: ( ) inclusive.
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
............................................
Schedule 7
VENDOR DISCOUNT
AND REIMBURSEMENT OF EXPENSES
|
Item
|
Clause
|
Brief Description
|
Amount
|
|
No.
|
No.
|
|
$
|
|
1
|
11.1
|
Unit Discount
|
18.27 cents on all net
sales units for -
|
|
|
|
|
|
|
|
|
|
Bread - all proprietary
and non proprietary
|
|
|
|
|
bread.
|
|
|
|
|
|
|
|
|
|
Rolls - all one half
dozen wrapped or
|
|
|
|
|
unwrapped
|
|
|
|
|
rolls, excepting those
defined in Food Service.
|
|
|
|
|
|
|
|
|
|
Hot Plate - all Hot Plate
products.
|
|
|
|
|
|
|
|
|
|
14.28 cents per one half dozen rolls on all net
|
|
|
|
|
sales units for Food
Service, with the
|
|
|
|
|
exception
|
|
|
|
|
of KFC cob rolls, for
which 14.28 cents will
|
|
|
|
|
apply for one dozen rolls.
|
|
|
|
|
|
|
2
|
12.1(a)
|
Vehicle Standing Charge -
|
Per Week
|
|
|
|
Year of Manufacture
|
$
|
|
|
|
(as per compliance Plate)
|
|
|
|
|
2004
|
386 .73
|
|
|
|
2003
|
330. 46
|
|
|
|
2002
|
283.48
|
|
|
|
2001
|
246.40
|
|
|
|
2000
|
216.03
|
|
|
|
1999 or earlier
|
189.48
|
|
3
|
12.1(b)
|
Vehicle Running Costs
|
XX cents per
kilometer of the weekly distance
|
|
|
|
|
travelled to
perform the run (based on a
|
|
|
|
|
NRMA quarterly
review of running costs)
|
|
4
|
12.1 (b)
|
Other fixed expenses
|
$42.44 per week.
|
|
5
|
12.2
|
Adjustments to Vehicle Expenses
|
(i) Vehicle Standing
Charge -
|
|
|
|
|
(a) The amount of
standing charge for
|
|
|
|
|
each year of
manufacture is to be recalculated
|
|
|
|
|
annually, effective
from 1 February each year,
|
|
|
|
|
to be carried out by
the NRMA and based on a
|
|
|
|
|
Isuzu NPR 300 with
pantech body depreciated
|
|
|
|
|
over 6 years.
|
|
|
|
|
(b) The vehicle age for
each vehicle is to
|
|
|
|
|
be determined by the
month and year of
|
|
|
|
|
manufacture shown on
the compliance plate.
|
|
|
|
|
The standing charge for
each vehicle will be
|
|
|
|
|
adjusted from the start
of each quarter
|
|
|
|
|
commencing after the
anniversary of
|
|
|
|
|
manufacture.
|
|
|
|
|
(c) Vehicle running
cost is to be
|
|
|
|
|
recalculated quarterly,
effective from 15 May
|
|
|
|
|
2004, on NRMA
calculation.
|
A. W. MACDONALD, Commissioner.
____________________
Printed by
the authority of the Industrial Registrar.