NESTLE SMITHTOWN ENTERPRISE AWARD 2004

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

Application by Nestle Australia Limited.

 

(No. IRC 6390 of 2004)

 

 

AWARD

 

1.  Arrangement

 

Clause No.          Subject Matter

 

1.         Arrangement

2.         Consultation

3.         Competency-based Training

4.         Induction of New Employees

5.         Grievance Procedure

6.         Definitions

7.         Classifications

8.         Hours of Work

9.         Rostered Days off (RDO's)

10.       Overtime

11.       Meal Breaks

12.       Rest Periods

13.       Consultation and Productivity

14.       Wage Increases

15.       Allowances

16.       Mixed Functions

17.       Public Holidays

18.       Annual Leave

19.       Long Service Leave

20.       Compassionate Leave

21.       Jury Service Leave

22.       Parental Leave

23.       Sick Leave

24.       Personal/Carer's Leave

25.       Conditions of Employment

26.       Payment of Wages

27.       Deduction of Union Fees

28.       Shift Workers

29.       12-Hour Shift Workers - AWS

30.       Casual and Temporary Employees

31.       Superannuation

32.       Redundancy

33.       Trade Union Training

34.       Leave to Attend Union Business

35.       Area, Incidence and Duration

36.       No Extra Claims

37.       Grade Wage Rates

 

Appendix 1 - CBT Module Structure

Appendix 2 - CBT Pay Structure

 

2.  Consultation

 

The parties to this award are committed to continuous improvement of product quality, work environment, work performance, productivity and structural efficiency through consultation and working together to resolve problems.  The parties agree to continue to enhance flexibility, productivity and efficiency of the Factory through a review of working patterns and arrangements as necessary from time to time.

 

To achieve this, a Consultative Committee will be established and will meet where necessary, but a minimum of twice per year, to involve Employees in decisions affecting the workplace.

 

3.  Competency-based Training

 

With the move to skills-related career paths and competency-based training, Employees will be encouraged to undertake ongoing development and training in order to improve productivity and efficiency and increase personal skill development, motivation and self-esteem.  The parties recognise that not all Employees will want to participate in Competency-based Training.

 

For all Employees participating in Competency-based Training, an individual Training Pathway shall be developed.  This Training Pathway shall be developed in consultation with the Employee concerned, representation if requested, their Department Manager and the Human Resources Manager.

 

The aim of the Training Pathway is to identify training required for the Employee to meet current and future job needs particularly in relation to career progression into work areas outside of their current role.  Implementation of an individual Training Pathway will remain subject to business needs.  The consolidation of individual Training Pathways will provide the basis for the Training Needs Analysis for the Assessment Committee to consider at the annual review.

 

It is acknowledged by the parties that in some cases it may be necessary to incorporate modules from other certificates in order to provide the Employees with relevant training and underlying knowledge of their position.  Points from such modules will be recognised in the classification structure.

 

3.1        Objectives of Agreement

 

(a)        To encourage Employees covered by this agreement to acquire and use relevant skills which improve the competitiveness of the Factory operations and provide broader career opportunities.

 

(b)        To reward Employees on the basis of relevant skills attained and used (these skills must be appropriately validated).

 

(c)        To establish agreed pay rate relativities.

 

(d)        Nothing in this agreement precludes the development at a later date of a classification structure which includes CBT Skill Levels beyond the current Level 7, which would be applicable for those Weekly Paid Employees that go on to study the Advanced Certificate in Food Processing, Diploma or a Degree in Food Technology.

 

3.2        Programme Review

 

The CBT programme shall be reviewed annually by the Assessment Committee.  The following items should be reviewed:

 

(a)        percentage of Employees participating in training

 

(b)        specific module development requirements

 

(c)        any impediments to participation in training

 

(d)        quality and relevance of module content

 

(e)        opportunities to improve CBT programme

 

(f)         development of training plan for subsequent year of programme in line with business needs

 

(g)        the inclusion of modules in Skill Levels beyond Level 7

 

(h)        allocation of training in subsequent years

 

(i)         outstanding matters that have not been resolved

 

Recommendations from the Assessment Committee are to be made to Company Management in order to achieve continuous improvement of the CBT programme.

 

3.3        Delivery of Pay Increases

 

(a)        Participation Payment

 

The Company is prepared to make a $12.00 per week payment to all Employees who enrol for and successfully complete the following Skill Level 1 modules, i.e:

 

Apply safe work procedures

 

Apply basic food safety procedures

 

Apply basic Q.A. practices

 

Apply basic mathematical concepts

 

Communicate in the workplace

 

Payment of the $12.00 per week will be made to participants at the completion of the Skill Level 1 modules.

 

(i)         As Employees progress through the Skill Levels training and assessment programme and competencies are validated, pay rates shall be those set out in Appendix 2 backdated to the assessment request date of the last module to be completed in the Skill Level.

 

(ii)        The CBT Skill Level Module Structure (Appendix 1) provides an outline of the proposed (subject to availability) modules for each stream up to Skill Level 5.

 

3.4        Programme Outline

 

(a)        This system operates on the basis that every production position in the Factory is defined by the skills and competencies needed to perform the work in those positions.

 

(b)        Employees will be paid for the skills and knowledge required, which include those acquired under the approved Training Pathway.

 

(c)        Some modules within the CBT curriculum will be available to a limited number of Employees in order to meet the business needs, e.g. First Aid, Forklift Driving, Workplace Assessor, Workplace Trainer.

 

(d)        The system for determining pay is based on the National Certificate of Food Processing and its points system.  Every module has a points value.  As Employees complete whole or (where defined) part modules and are assessed, they will be credited with the relevant points subject to validation of the competency in the workplace.

 

3.5        Key Procedures for Administration of System

 

(a)        Training Provision

 

(i)         The classification system is accompanied by the delivery of training.  The Company will provide a defined amount of training each year in paid time to enable Employees to complete skill level modules required for their position.

 

(ii)        Employees may be required to stand aside from their position temporarily for the purposes of training participants in approved Competency-based Training.

 

(iii)       Where it is identified that a person needs to temporarily stand aside from their position for the purposes of providing multi-skilling training, consultations will take place with the person in regards to the need to do so, the likely duration of such displacement and possible training or tasks that could be undertaken during this period.

 

(iv)      Employees will be offered training as follows:

 

Skill Levels 1-4 - up to 80 hours per annum

 

All other levels - to be determined at the time

 

The hours allowed includes authorised absence from workstation to attend face-to-face delivery sessions, tutorial support sessions and gathering of information required to complete learning outcomes and assessment tasks.  Hours will be advised at the commencement of the training.

 

(v)       Training will be based on accelerated hours where possible.

 

(vi)      A roster will be prepared that allows for scheduled access for the Employee to WELL Learning Support and the Industry Trainer.

 

(vii)     It is not compulsory for Employees to enrol in the National Certificate in Food Processing.

 

(viii)    Such people will still participate in site general wage increases.

 

(ix)       It is acknowledged by the parties that, in order for specific requirements placed on the Company through Company policy, external agencies or legislation, Employees are still required to attend training sessions in relation to these specific requirements.

 

(x)        An Employee may wish to enrol in NCFP modules after participating in such general training.

 

(b)        Assessment Committee

 

(i)         An Assessment Committee will be formed consisting of an equal number of Management and Employee representatives:

 

Company-nominated Assessment Committee member

 

Elected Employee representatives (2) who hold current or are working towards accreditation as workplace trainers and/or assessors

 

Human Resources Manager

 

 (ii)       The Committee's objectives are to:

 

Ensure that the Assessment Procedure is administered according to the nationally recognised standard procedure.

 

Conduct an annual review of the CBT programme as outlined in subclause 3.2

 

Provide a forum for questions and grievances related to assessments to be raised and dealt with in a consistent and timely manner.

 

(c)        Assessment Procedure

 

Module assessments involve written, verbal or demonstration of knowledge in order to complete the assessment task, computer-based assessment or any combination thereof and in the case of some modules a workplace verification task will be undertaken.

 

In relation to the workplace verification task, the participant will:

 

(i)         Identify their work area

 

(ii)        Identify the workplace verification task for the module they seek assessment in.

 

(iii)       Review the questions in the assessment task and ensure they are ready to answer the questions

 

(iv)      Select an assessor to conduct the workplace verification task from the assessor list

 

(v)       Notify the Human Resources Manager when ready to do the assessment

 

The Human Resources Manager will be responsible for:

 

(i)         Co-ordination of the assessment (e.g. time, place, etc.)

 

(ii)        Ensuring assessments are conducted in such a way as to meet the assessment criteria as outlined in the learning outcome documents

 

(iii)       Recording the assessment request date

 

(iv)      Ensuring that the pay office is advised of any changes to an Employee's rate of pay

 

(d)        Appeals Procedure

 

The Employee may discuss any issue relating to the assessment with any member of the Assessment Committee who will endeavour to:

 

attempt to resolve the issue; or

 

may consult site experts or Union Officers; or

 

may refer issue to the Assessment Committee

 

The Assessment Committee:

 

will mediate between Employee and Assessor

 

may consult site experts

 

will advise on best course of action to resolve issue

 

may refer issue to the Factory Manager

 

(e)        Recognition of Prior Learning (RPL)

 

The parties to the agreement are committed to the RPL process

 

RPL "is the acknowledgment of skills and knowledge obtained through formal training, work and/or life experiences"

 

(f)         Training Delivery/Flexibility

 

Training delivery and assessment will take place during Company time.  (Note: Employees may need to complete some course work and study in their own time).

 

There will be an opportunity at times during the production cycle to release operators from some positions without providing Employees to relieve.

 

This will be established on a case-by-case basis and may only be for parts of certain shifts.

 

(g)        Temporary/Casual Employees

 

The Company will provide training opportunities up to Skill Level 2 for regular Temporary/Casual Employees

 

At the annual review the need for provision of further training access will be considered.

 

(h)        General Wage Increases

 

In the event that a percentage general wage increase is to be applied, then this is applied to the rates in the CBT classification structure document (Appendix 2).

 

Non-participants in CBT will still participate in general site wage increases.

 

3.6        Transfers between Positions and Departments

 

(a)        All positions will comprise three levels of competencies:

 

Common core competencies

 

Position specific competencies

 

Multi-skilling competencies

 

(b)        Where an Employee is required to move to another position by the Company due to business needs, only those competencies that are a requirement of the new position will be transferred across.  However, the Employee’s pay rate will be maintained until such time as they have completed training in the new modules relevant to the new position and points acquired to match the pay rate.

 

The Employee will not suffer a reduction in their base rate of pay or current CBT points as a result of the transfer.  If, however, an Employee refuses to train in any of the competencies required in the new position, taking into consideration RPL, consultation with the Employee will then take place outlining available options.

 

(c)        Where an Employee is successful in applying for a position with a different skills requirement, only those competencies which are a requirement of the new position will be transferred across and the competency rate of pay will be adjusted accordingly.  The Employee will need to complete the training modules required for the new position and will be paid for their higher level of competency upon successful completion of the required modules.

 

3.7        Procedure to be followed if an Employee is required to step aside from their current position

 

(a)        In order to meet current and future defined job requirements, an Employee may need to undertake informal or formal training.

 

(b)        In the event that an Employee does not wish to undertake and/or an Employee is no longer able to meet the job requirements, consideration will need to be given as to whether or not an employee remains in that position.

 

(c)        Where it is identified that an Employee may be required to step aside from their existing position on a permanent basis, there shall be consultations with the Employee concerned and the Union at least 6 months prior to implementation of the change.

 

(d)        Such discussions should identify suitable alternative positions and training required to ensure a smooth transition and an appropriate method for transfer of classification and remuneration, including any applicable allowances and alternative options, ensuring the base rate remains the same but with provision for a reduction in CBT points if a module is no longer relevant to the new position.

 

(e)        Where an Employee is concerned about the fairness of their treatment, clause 5, Grievance Procedure, will be followed.

 

3.8        Multi-skilling

 

The parties agree to observe the existing multi-skilling arrangements and to pursue and eliminate any remaining impediments to multi-skilling and broadening the range of tasks which an Employee may be required to perform.

 

4.  Induction of New Employees

 

As part of the Company’s induction procedure, the Union Delegate(s) will be given the opportunity to meet with the new Employee during the induction programme.

 

Existing facilities will be available for the purpose of the meeting and discussions.

 

5.  Grievance Procedure

 

In order to avoid industrial action, the parties to a grievance or dispute will take all reasonable steps to ensure the following procedure is followed responsibly and expeditiously without affecting work performance or productivity.  The Employees will avoid work stoppages, bans and limitations and co-operate positively in reviews of work practices aimed at improving productivity.

 

5.1        If an Employee has any problem or concern in relation to his/her employment, he/she shall in the first instance discuss the matter with his/her supervisor who will endeavour to resolve the issue expeditiously.

 

5.2        Any unresolved matter shall then be referred to the Department Head.  This can be done by the Employee himself/herself or the Employee and his/her Union Delegate.

 

5.3        Should the dispute still remain unresolved, appropriate assistance should then be sought from the Factory Manager and, if necessary, an official of the Union.

 

5.4        In the event of no agreement being reached within 7 days, the dispute shall be referred to the Industrial Registrar.

 

5.5        Until the matter is determined, work shall continue in accordance with the pre-dispute conditions, except, where a trial is put in place in line with clause 13, Consultation and Productivity, in which case the trial will go ahead.

 

5.6        Nothing in this clause will operate to the detriment of an Employee's health and safety.

 

6.  Definitions

 

6.1        "Full-time Employee" is one appointed after completion of the probationary period employed and paid by the week for an indefinite period.  (See subclause 25.2).

 

6.2        "Casual Employee" is one engaged for a minimum of 4 and a maximum of 12 hours per day.

 

6.3        "Temporary Employee" is one engaged for a specific period of at least 38 ordinary hours.  Where an Employee is engaged on a short-term temporary basis, i.e. between 1 and 3 weeks' duration, there shall be a maximum of 5 such engagements per calendar year.

 

6.4        "Day Work Employee" is one whose ordinary hours of work are performed between 6.00 am and 4.00 pm or as otherwise agreed Monday to Friday inclusive.

 

6.5        "5-Day Shift Work Employee" is one other than a Day Work Employee whose ordinary hours of work are performed at any time Monday to Friday inclusive.

 

6.6        "7-Day Shift Work Employee" is one other than a day work Employee or a 5-day Shift Work Employee whose ordinary hours of work are performed at any time of any day of the week.

 

6.7        "12-Hour Shift Work Employee" is one whose ordinary hours of work fall into a continuous 12-hour shift roster covering all days of the week.

 

6.8        "Day’s Pay" ,unless otherwise specified, is 0.2 of the day work Employee’s, 5-day Shift Work Employee’s or 7-day Shift Work Employee’s relevant weekly grade wage rate prescribed by this award.

 

6.9        "Union" means the Australasian Meat Industry Employees’ Union, Newcastle and Northern Branch.

 

6.10      "Company" means Nestlé Australia Ltd, ACN 000 011 316.

 

7.  Classifications

 

7.1        Production Process

 

Current Full-time, Casual and Temporary Employees shall be paid a weekly wage, as set out in Table 1, inclusive of the weekly wage according to the following classification gradings and definitions.

 

Those Employees that are participating in Competency-based Training will be paid as per Appendix 2.

 

All new Employees engaged after 14 January 1998 will be paid as per the CBT classification structure.

 

Food Processing Operator Grade 5:

 

Employees classified in Grade 5 must have completed an approved recognised course at a tertiary institution and must have demonstrated proficiency in the grade and passed such written and practical examinations as required by law and/or the Company.

 

Indicative Tasks -

 

Team Co-ordinator - appointed by the Company, responsible for the technical co-ordination of an area within the plant including but not limited to sourcing of relief workers where required, related administrative tasks, including inputting computer data, ensuring standards of hygiene and sanitation are maintained and performing such other tasks as outlined in the position description.

 

Through ongoing consultation with the Team Co-ordinators, the Company will identify competencies and skills that a Team Co-ordinator currently has and those that are necessary to "technically co-ordinate" the area to meet the business needs.

 

The underlying skills to carry out the role to meet the business needs will be provided through training.  If an Employee does not participate in the training and attain the skills, then consideration may have to be given as to their continuing in that role.

 

Food Processing Operator Grade 4:

 

Employees classified in Grade 4 must be undertaking an approved recognised course at a tertiary institution.  Employees at this level must have demonstrated proficiency in Grade 3 modules and have passed such workplace and competency assessments at Grade 3 as required by law and/or the Company.

 

Indicative Tasks -

 

Performance and interpretation of complete chemical and/or microbiological analysis; inputting computer data; maintaining records.

 

Food Processing Operator Grade 3:

 

Employees classified in Grade 3 must have demonstrated proficiency in the grade and passed such written and practical examinations as required by law and/or the Company.

 

Indicative Tasks -

 

Operating a forklift or other plant, machinery or equipment as required in and about the establishment, keeping stock records, including stock-takes; preparing consignments for dispatch, including quality checks; inputting computer data; loading and unloading trucks for dispatch and receiving;

 

Operating; adjusting; dismantling; cleaning and assembling manufacturing plant, machines or equipment, including a forklift or pedestrian forklift; performing quality checks and analysis; inputting computer data; maintaining records.

 

Operating; adjusting; dismantling; cleaning and assembling packing plant machines and equipment; performing quality checks; inputting computer data; maintaining records; receiving and/or issuing stores or goods.

 

Performance and interpretation of complete chemical and/or microbiological analysis; inputting computer data; maintaining records.

 

Food Processing Operator Grade 2:

 

Employees classified in Grade 2 must have demonstrated proficiency in the grade and passed such written and practical examinations as required by law and/or the Company.

 

Indicative Tasks -

 

Operating a pedestrian forklift and other plant, machinery or equipment in and about the establishment; inputting computer data; performing in-line quality checks; maintaining records; loading and unloading;

 

Receiving and/or issuing of goods or stores including preparing material for dispatch; keeping store and stock records including stock-takes; operating machinery and equipment associated with receiving or dispatching goods; performing quality checks; removing cartons, tins or containers from packing area to store etc; inputting computer data.

 

Provision of employee services, including maintenance of facilities, operation of the canteen and staff sales shop including stock control, distribution of uniforms and provision of first aid supplies.  Ensure hygiene standards, customer service levels and facilities are maintained at the required standard.

 

Operating; adjusting; dismantling; cleaning and assembling manufacturing plant, machines or equipment; including a pedestrian forklift; performing quality checks and analysis; inputting computer data; maintaining records.

Operating; adjusting; dismantling; cleaning and assembling packing plant machines and equipment; performing quality checks; inputting computer data; maintaining records; receiving and/or issuing stores or goods.

 

Food Processing Operator Grade 1:

 

Employees classified in Grade 1 must have undertaken the Company induction programme and successfully completed the Skill Level 1 competency modules.  Employees must also have demonstrated proficiency in the workplace by assessment passed such written and practical examinations as required by law and/or the Company.

 

Indicative Tasks -

 

Performing general service duties as required, including cleaning; refuse removal; gardening; stacking; packing line servicing; sample preparation; quality checks; inputting computer data; maintaining records; general cleaning of work areas and stations.

 

8.  Hours of Work

 

8.1        Ordinary hours of work shall be scheduled not to exceed an average of 38 hours per week in a work cycle.

 

8.2        Except for a meal break or rest period, ordinary hours on any day shall not be worked in broken periods. (See clauses 11 and 12).

 

8.3        At least 8 hours shall lapse between an Employee’s ordinary hours of work on any one day or shift and the next.

 

8.4        The Company shall post a roster of the ordinary work hours of all Employees and shall not change this roster, except by mutual agreement or except in the case of an emergency, unless 14 days' notice is given to the Employee concerned.

 

8.5        By mutual agreement between the Company and an Employee, the hours or days of work may be altered without incurring penalties.

 

8.6        Ordinary hours of work for a Day Work Employee shall be restricted to a maximum of 8 on any day.  However, by mutual agreement up to 10 ordinary hours may be worked.

 

8.7        The method of implementation of a 12-hour day shall be subject to negotiation between the Company, the Employees and the Union.

 

8.8        The extension of 12-hour shift system beyond present work units will be subject to negotiation between the Company, the Employees and the Union.

 

9.  Rostered Days Off (RDO's)

 

9.1        5-day, 7-day Shift Work Employees and Day Work Employees scheduled to work in excess of 38 ordinary hours per week in a work cycle will have 0.4 hours accumulated for a RDO.  The 0.4 hours will accumulate when an Employee works all their scheduled ordinary hours on a day and when on paid sick leave, paid public holidays, paid jury service, paid compassionate leave and paid family leave.

 

9.2        There is no accrual of an RDO when on annual leave or an RDO.

 

9.3        Once an Employee has accrued the equivalent of 45.6 hours RDO, the Company may request the employee to utilise such RDO hours within 1 month or by mutual agreement for hours over and above this accrued amount.

 

If an Employee has a need to accrue further RDO hours, this may be arranged by mutual agreement with the Company.

 

9.4        A RDO shall be taken at a time or times mutually agreed upon when the Employee has accumulated 7.6 hours credit for each day off which shall be deducted from accumulated credit hours.  An Employee may, with the consent of the Company, take RDO's in part-day amounts.  Payment for a RDO shall be at the same rate as if worked.  An Employee shall not be entitled to sick leave for illness on a RDO.

 

9.5        Where by agreement an Employee works on a RDO, the Employee may by agreement be granted a substitute RDO at a mutually agreed time or may be paid overtime rates for the time worked.

 

9.6        All accrued RDO's will be paid out upon termination of employment.

 

9.7        An Employee may elect, with the consent of the Company, to accrue some or all rostered days off for the purpose of creating a bank to be drawn upon at a time mutually agreed between the Company and Employee, or subject to reasonable notice by the Employee or the Company.

 

9.8        This subclause is subject to the Company informing the Union which is both party to the award and which has members employed at the particular enterprise of its intention to introduce an enterprise system of RDO flexibility and providing a reasonable opportunity for the Union to participate in negotiations.

 

10.  Overtime

 

10.1      An Employee shall work reasonable overtime as required.

 

10.2      Any time worked in excess of the ordinary hours on any one day shall be overtime and paid for at a rate of time and a half for the first 2 hours and double time thereafter calculated on the Employee's relevant weekly grade wage rate.

 

10.3      Where an Employee is required to work overtime not continuous with the completion or commencement of his or her ordinary scheduled work hours, he or she shall be employed for a mutually agreed period of time and paid for the time worked at the overtime rate.

 

10.4      Where overtime extends from one day into the next, such a period of overtime shall be regarded as all having been worked on the first day for payment purposes.

 

10.5      Where an Employee works more than 3 hours' overtime on site on call back or continuous with the completion of his or her scheduled ordinary working hours, the Employee shall be allowed a minimum of 8 continuous hours' break prior to resuming work.

 

10.6      Should an 8-hour break not be allowed, the Employee shall be paid at double time of the Employee's relevant weekly grade wage rate for all time worked after the completion of overtime until such a break is allowed.

 

10.7

 

(a)        An Employee who is required to work 2 hours' overtime after their normal finishing time without being notified the previous working day shall be entitled to meal allowance as per Item 3 of Table 2.

 

(b)        An Employee who is required to work 2 hours' overtime before their normal starting time without being notified the previous working day shall be entitled to meal allowance as per Item 3 of Table 2.

 

10.8      An Employee, other than an Employee rostered to work ordinary hours on a Saturday, shall be paid time and a half for the first 2 hours and double time thereafter for Saturday work.

 

10.9      An Employee, other than an Employee rostered to work ordinary hours on a Sunday, shall be paid double time for all time worked on Sunday.

 

10.10    An Employee not rostered to work but required to work on a public holiday falling on a Monday to Friday who has not been given the required notice (as per subclause 8.4) shall be paid (as per subclause 17.8).

 

10.11    Full-time Employees will receive first preference for overtime available in their work area.

 

11.  Meal Breaks

 

11.1      Day Work Employees shall be allowed a 30-minute unpaid meal break when working day work.

 

11.2      5-day and 7-day Shift Work Employees shall be allowed a 20-minute paid meal break when working shift work.

 

11.3      Employees working a 12-hour shift system shall be allowed a 40-minute paid meal break which may be taken as agreed.

 

11.4      Unless otherwise agreed, Employees shall not be required to work more than 5 ordinary hours without a meal break.

 

11.5      Notice will be given the previous working day of the Company’s intention to vary the time of the meal break.  Variation of the time of the meal break will not incur penalty rates.

 

11.6      Overtime rates will be paid for the meal break if the Company fails to give notice the previous working day of its intention to vary the time of the meal break the following day.

 

12.  Rest Periods

 

A paid rest period of 10 minutes will be allowed at agreed times both before and after the meal break each day in the rest area.

 

13.  Consultation and Productivity

 

Consultative measures currently operating at the Smithtown Factory shall continue and shall be used to maintain continuing co-operation between the parties to achieve improved productivity of manufacturing and related operations.

 

To provide a process for change the following provisions shall apply:

 

Where an issue is raised by the Company or the Union as part of continuous productivity improvement, consultation shall take place as follows:-

 

(a)        The changes shall be explained to all affected Employees, including details of how the change or changes will work and how they will improve or alter productivity including output, waste, cost, etc.

 

(b)        Employees will have their input and any alterations or alteration considered.

 

(c)        Where agreement is reached on the proposed changes, they will be implemented as soon as practicable.

 

(d)        If no agreement is reached, provided the changes are permitted by the terms of the award, they may be implemented on a trial basis as soon as practicable after the expiry of 2 working weeks from the date on which the productivity improvement is first raised.  It is recognised that a trial having a direct impact on all Employees may not be capable of immediate implementation but shall not take longer than four working weeks to implement.  The consultative process will continue while the trial continues.

 

Either party may take the issue to the Industrial Relations Commission of NSW at any stage after the issue is raised.

 

Where an Occupational Health and Safety issue is raised, it shall be processed in accordance with the applicable Occupational Health and Safety legislation.

Where an Employee has personal difficulties arising from a productivity improvement, those difficulties will be promptly investigated and the Employee will have recourse to the grievance procedure as outlined in the award.

 

14.  Wage Increases

 

The following increases will apply to wages during the term of this agreement:

 

(a)        from first pay period commencing on or after 25 April 2004, a 2% increase.

 

(b)        from first pay period commencing on or after 31 October 2004, a 3% increase.

 

(c)        from first pay period commencing on or after 24 April 2005, a 2% increase.

 

(d)        from first pay period commencing on or after 30 October 2005, a 3% increase.

 

(e)        from first pay period commencing on or after 30 April 2006, a 2% increase.

 

(f)         from the first pay period commencing on or after 29 October 2006, a 3% increase

 

The payments shown above in (c) and (e) are subject to agreement at the Factory that continuous improvement in the Factory performance is occurring.

 

Evidence of this will be as follows:

 

(i)         Positive movement in the Factory’s KPI's.  KPI's will include 3 core and 2 specific KPI's in each agreement term.

 

(ii)        Agreement by all parties of changes required to improve the business.

 

(iii)       No industrial action occurring.  In the event that a payment as outlined in (c) or (e) above is not made due to industrial action being taken, the Union reserves its right to take the claim for the payment to be reinstated to the New South Wales Industrial Relations Commission.

 

(iv)       Satisfactory performance of the site training and consultative processes.

 

(v)        Other issues that may be raised by Employees, the Union or the Company.

 

(vi)       No extra claims for wages or conditions made on the Company.

 

This evidence shall be considered at the Factory 3 months prior to the due date and, where progress is unsatisfactory, the reasons for this will be examined and a plan put in place to correct any problems.

 

Where, on the due date, performance is still unsatisfactory, the Company reserves its right to reduce a payment or defer it for a period.

 

Where the Union disagrees with this decision, it can pursue the issue through the disputes procedure.

 

All grievances are to be processed through the agreed procedures without industrial action.  (See clause 5).

 

15.  Allowances

 

With a move to a CBT classification and wages system which is in effect a payment for skills system, the treatment of the allowances described below will be reviewed annually.  Allowances described below will be increased in line with scheduled wage increases and continuous improvement in Factory performance as specified in clause 14.

 

15.1      Emergency Team Allowance

 

Employees appointed by the Company as permanent members of the Emergency Team shall be paid an allowance as per Item 1 of Table 2 per week, in addition to other payments to which they are entitled under this award.  The allowance shall not be included for the calculation of overtime payments or other payments.

 

The allowance will continue to be paid provided Employee attends the required number of training sessions per calendar year as specified by the Occupational Health and Safety Committee in order to maintain skill levels and continues to be ready willing and able to carry out the duties required of an Emergency Team member.

 

15.2      First-Aid Allowance

 

An Employee who holds a current first-aid accreditation and is appointed by the Company as a First-aid Attendant shall be paid an allowance as per Item 2 of Table 2 per week, in addition to other payments to which they are entitled under this agreement.  The allowance shall not be included for the calculation of overtime payments or other payments.

 

The allowance will continue to be paid provided the appointed Employee maintains currency of accreditation by completing refresher training and continues to be ready willing and able to carry out the duties required of a first-aider.

 

15.3

 

(a)        Team Co-ordinator Allowance

 

An Employee appointed by the Company who is responsible for the technical co-ordination of an area within the plant shall be paid a margin as per Item 4 in Table 2 per week above the employees relevant weekly grade wage rate.  Where such an appointment is on a permanent basis, this allowance has been incorporated in the Grade 5 wage rate as shown in Table 1 but will continue to be treated as a separate allowance paid on a per week basis.

 

(b)        Temporary Team Co-ordinator Allowance

 

Where an Employee is nominated by the Company and performs the duties of a Team Co-ordinator temporarily, that Employee shall be paid an hourly allowance for the hours they are nominated to undertake and perform such duties.  The hourly amount of this allowance is to be the amount stipulated in Item 4 of Table 2, divided by 38.  This pro rata amount will not exceed the weekly amount stipulated in Table 2.

 

15.4      Workplace Trainer Category 1 Allowance

 

Workplace Trainer Category 1 shall be paid at the rate of $3.80 per week for all purposes regardless of whether the Employee provides training or not.

 

This allowance will be known as Workplace Trainer Category 1 Allowance.

 

15.5      Workplace Assessor A Allowance

 

Workplace Assessor A shall be paid at the rate of $2.50 per week for all purposes regardless of whether the Employee conducts assessments or not.

 

This allowance will be known as Workplace Assessor A Allowance.

 

15.6      Confined Space Allowance

 

Competent employees suitably trained by the Company and authorised to issue entry permits and/or enter confined spaces shall be paid an allowance as per Item 5 of Table 2 per week, in addition to other payments to which they are entitled under this award.  The allowance shall not be included for the calculation of overtime payments or other payments.

 

The allowance will continue to be paid provided the Employee attends the required training sessions specified by legislation and the Occupational Health and Safety Committee in order to maintain skill levels.  The allowance will not continue if the ability to issue entry permits and/or enter confined spaces is no longer required by the role.

 

16.  Mixed Functions

 

An Employee performing duties of a higher grade job for more than 1 hour on any day (except when working or relieving whilst undergoing training) shall be paid at the higher grade rate for all hours worked on that day including overtime.

 

17.  Public Holidays

 

17.1      The following days shall be public holidays:

 

New Year's Day, Australia Day (26 January), Good Friday, Easter Saturday, Easter Monday, Anzac Day (25 April), Queen's Birthday, Eight Hour Day, Christmas Day (25 December), Boxing Day, Picnic Day and any other day gazetted as a public holiday in the State of New South Wales.

 

17.2      By agreement with an Employee or all Employees, a day other than the gazetted day may be observed as the holiday.

 

17.3      Picnic Day shall be allowed and observed on a mutually agreed day.

 

17.4      An Employee shall be paid for a public holiday when he/she attends work on both days rostered to attend work before and after the holiday.  Where sick leave is claimed for either day, verification to the satisfaction of the Company shall qualify an Employee to receive payment for the public holiday.

 

17.5      Day Work Employees and 5-day Shift Work Employees shall receive a day's pay for each holiday falling on a Monday to Friday inclusive.

 

17.6      7-Day Shift Work and 12-Hour Shift Work Employees shall receive a day’s pay for each holiday, whether rostered to work that holiday or not.

 

17.7      An Employee rostered to work on a holiday shall in addition to the payment under subclauses 17.5 or 17.6 of this clause be paid single time extra for the time worked.

 

17.8      An Employee not rostered to work on a holiday but required to work on a holiday shall, in addition to payment under subclauses 17.5 or 17.6 of this clause, be paid time and one half for the time worked.

 

18.  Annual Leave

 

18.1      The provisions of the Annual Holidays Act 1944 (the Act) apply, which allows for 4 weeks' paid annual leave per annum.

 

18.2      As far as practicable, at least 3 months' notice shall be given of a shutdown and its intended duration.

 

18.3      7-Day Shift Work Employees shall have an additional annual leave entitlement of 1 week's leave.

 

18.4      All Employees, on taking annual leave that has fallen due in accordance with the Act, shall be paid an allowance in advance being the greater of:

 

(a)        17.5% of the Employees relevant weekly grade wage rate per week of leave taken; or

 

(b)        The applicable shift allowance for the projected roster.

 

18.5      In relation to mixed functions, for the purpose of calculating an Employee's ordinary pay it shall be the rate applicable at the date of commencement of leave.

 

Casual Employees - refer to subclause 30.9.

 

Temporary Employees - refer to subclause 30.10.

 

18.6      Where Employees are pre-planning annual leave, discussions should be held with the Department Manager to ascertain business needs at that time and the practicality of such leave

 

19.  Long Service Leave

 

The provisions of the Long Service Leave Act 1955 apply.

 

20.  Compassionate Leave

 

For the life of this agreement, Employees covered by it will be entitled to compassionate leave in accordance with Nestle Bereavement Leave Policy.  Any more generous bereavement leave provision introduced during the life of this agreement arising from changes in Company policy, new award provisions or government legislation/regulation will apply to Employees covered by this agreement.

 

21.  Jury Service Leave

 

A Full-time or Temporary Employee required to perform jury service during his or her normal work hours shall be paid the difference between the Employee's relevant grade wage rate for the period and the jury service payment.

 

22.  Parental Leave

 

The Company’s Parental Leave Policy, applicable at the time of certification of this agreement, shall continue to apply for the duration of this agreement, provided Employees shall not be excluded from any improvement to the policy which may occur during that period.

 

23.  Sick Leave

 

23.1      Full-time and Temporary Employees shall be entitled to 76 hours' sick leave for each completed year of service.

 

23.2      Such sick leave shall accumulate on a pro rata basis indefinitely.

 

23.3      An Employee, ill and unable to attend work, shall notify the Company at his or her earliest convenience and in any event no later than 24 hours of falling ill of the nature of the illness and the estimated duration of absence.

 

23.4      An Employee shall prove to the satisfaction of the Company that he or she was unable on account of illness or injury to attend duty for any absence of more than 2 days.  Where an Employee has had 2 such instances in a calendar year, all further instances of sick leave of 2 days or more must be proved to the satisfaction of the Company.

 

Where an Employee’s single-day absences indicate misuse, the Company will review such single-day absences with the Employee.

12-hour Shift Work Employees who work on a public holiday and fall ill the previous or following day shall not be required to produce evidence of the absence unless the absence is longer than 2 days.

 

23.5      An Employee on Workers' Compensation with sick leave entitlements will not be entitled to claim sick leave payments but, upon request to the employer, will be entitled to the difference between the amount received as Workers' Compensation and full pay.  If the Employer pays the difference, the Employee’s sick leave entitlement under this clause will, for each week during such difference is paid, be reduced by that proportion of 38 hours which the difference paid bears to full pay.

 

24.  Personal/Carer's Leave

 

24.1      Use of Sick Leave

 

(a)        An Employee other than a Casual Employee, with responsibilities in relation to a class of person as set out in subparagraph (ii) of paragraph (c) of this subclause who needs the Employee's care and support, shall be entitled to use, in accordance with this subclause, any current or accrued sick leave entitlement provided for at clause 23 of this award for absences to provide care and support for such persons when they are ill.  Such leave may be taken for part of a single day.

 

(b)        The Employee shall, if required, establish by production of a medical certificate or statutory declaration the illness of the person concerned and that the illness is such as to require care by another person.  In normal circumstances an Employee must not take carer’s leave under this subclause where another person has taken leave to care for the same person.

 

(c)        The entitlement to use sick leave in accordance with this subclause is subject to:

 

(i)         the Employee being responsible for the care of the person concerned; and;

 

(ii)        the person concerned being:

 

(a)        a spouse of the Employee; or

 

(b)        a de facto spouse who, in relation to a person, is a person of the opposite sex to the first-mentioned person who lives with the first-mentioned person as the husband or wife of that person on a bona fide domestic basis although not legally married to that person; or

 

(c)        a child or an adult child (including an adopted child, a stepchild, a foster child or an ex nuptial child), parent (including a foster parent and legal guardian), grandparent, grandchild or sibling of the employee or spouse or de facto spouse of the employee; or

 

(d)        a same-sex partner who lives with the Employee as the de facto partner of that Employee on a bona fide domestic basis; or

 

(e)        a relative of the Employee who is a member of the same household where, for the purposes of this subparagraph:

 

1.          "relative" means a person related by blood, marriage or affinity;

 

2.          "affinity" means a relationship that one spouse, because of marriage, has to blood relatives of the other; and

 

3.          "household" means a family group living in the same domestic dwelling.

 

(d)        An Employee shall, wherever practicable, give the Company notice prior to the absence of the intention to take leave, the name of the person requiring care and that person’s relationship to the Employee, the reasons for taking such leave and the estimated length of absence.  If it is not practicable for the Employee to give prior notice of absence, the Employee shall notify the Company by telephone of such absence at the first opportunity on the day of absence.

 

24.2      Unpaid Leave for Family Purpose

 

An Employee may elect, with the consent of the Company, to take unpaid leave for the purpose of providing care and support to a member of a class of person set out in subparagraph (ii) of paragraph (c) of subclause 24.1 who is ill.

 

24.3      Annual Leave

 

(a)        An Employee may elect with the consent of the Company, subject to the Annual Holidays Act 1944, to take annual leave not exceeding 5 days in single-day periods or part thereof, in any calendar year at a time or times agreed by the parties.

 

(b)        Access to annual leave, as prescribed in paragraph (a) of this subclause, shall be exclusive of any shutdown period provided for elsewhere under this award.

 

(c)        An Employee and the Company may agree to defer payment of the annual leave loading, in respect of single-day absences, until at least 5 consecutive annual leave days are taken.

 

24.4      Make-up Time

 

(a)        An Employee may elect, with the consent of the Company to work "make-up time", under which the Employee takes time off ordinary hours and works those hours at a later time, during the spread of ordinary hours provided in the award, at the ordinary rate of pay.

 

(b)        An Employee on shift work may elect, with the consent of the Company to work "make-up time" (under which the Employee takes time off ordinary hours and works those hours at a later time) at the shift work rate which would have been applicable to the hours taken off.

 

25.  Conditions of Employment

 

25.1      Contract of Employment

 

Contracts of employment shall be as defined in clause 6.

 

Each Employee will be advised, before commencing employment, of the terms of their employment.

 

An Employee's terms of employment will not be changed unless by mutual agreement.

 

25.2      Probationary Period for Full-time Employees

 

Appointment as a Full-time Employee is subject to a 3 months' probationary period during which performance will be reviewed at monthly intervals and, if satisfactory, the Employee will remain a Full-time Employee of the Company.  If unsatisfactory, employment will be terminated.  If within the next 3 months the Employee’s performance becomes unsatisfactory, the Union shall be advised and the Company shall take appropriate disciplinary action up to and including termination.

 

25.3      Promotions/Transfers - Performance Review

 

The criteria for assessment of Employees for promotion, transfer between departments, etc. will include the performance review and will be in accordance with the published Discrimination-Free Workplace Policy and, in the case where all things are equal, seniority will be a factor taken into consideration.  Employees will be encouraged to participate in an annual Performance Review.

 

The review sets the minimum frequency for a formal review of the Employee's performance against the prescribed assessment criteria.  The process provides a forum for Management and the Employee to discuss ongoing development and training in order to improve productivity and efficiency, increase personal skill development, motivation, self esteem and the development of agreed skills related career paths that satisfy the Employee's aspirations and the Company’s future needs.

 

It is recognised that some Employees may not wish to participate in the performance review process.

 

25.4      Termination of Employment

 

 

25.4.1               Notice of Termination by Employer

 

(a)        In order to terminate the employment of an Employee, the Employer must give to the Employee the following notice:

 

Period of Service	Period of Notice
1 year or less	l week
1 year and up to the completion of 3 years	2 weeks
3 years and up to the completion of 5 years	3 weeks
5 years and over	4 weeks

 

(b)       In addition to the notice in 25.4.1(a), Employees over 45 years of age at the time of the giving of the notice with not less than 2 years' service are entitled to an additional week's notice.

 

(c)        Payment in lieu of the notice prescribed in 25.4.1(a) and (b) must be made if the appropriate notice period is not given.  Provided that employment may be terminated by part of the period of notice specified and part-payment in lieu thereof.

 

(d)       In calculating any payment in lieu of notice, the wages an Employee would have received in respect of the ordinary time he or she would have worked during the period of notice, had their employment not been terminated, must be used.

 

(e)        The period of notice in this clause does not apply in the case of dismissal for serious misconduct or in the case of Casual Employees, Apprentices or Employees engaged for a specific period of time or for a specific task or tasks.

 

25.4.2               Notice of Termination by Employee

 

The notice of termination required to be given by an Employee shall be the same as that required of an Employer, except that there is no additional notice based on the age of the Employee concerned.  If an Employee fails to give notice, the Employer has the right to withhold moneys due to the Employee to a maximum amount equal to the ordinary-time rate of pay for the period of notice.

 

 

25.4.2               Without Notice

 

Employment may be terminated without notice for serious misconduct, including neglect of duty, inefficiency, malingering, pilfering, physical or verbal abuse of another person, abuse of alcohol or drugs affecting the Employee's work performance and payment will be up to the time of termination.

 

25.5      Stand-down

 

The Company shall have the right to deduct payment for any day the Employee cannot be usefully employed because of any strike or through any breakdown in machinery or any cause for which the Company cannot reasonably be held responsible.

 

25.6      Abandonment of Employment

 

The absence of an Employee from work for a continuous period of 3 working days without the consent of the Company and notification to the Company will be deemed abandonment of employment and wages will be paid up to the last time of work.  This is recognised as a resignation by the Employee unless, within a period of 14 days since the last attendance at work, the Employee establishes to the satisfaction of the Company he or she was absent and could not notify the Company for a reasonable cause.

 

25.7      Work to be Performed

 

(a)        The Company may direct an Employee to carry out such duties as are within the limits of the Employee's skill, competence and training.

 

26.  Payment of Wages

 

26.1      Temporary and Full-time Employees

 

Wages are to be paid weekly, not more than 2 days in arrears, into a bank, building society or credit union account nominated by the Employee.

 

26.2      Casual Employees

 

Casual Employees are to be paid by cheque at the completion of their engagement.  If an Employee so wishes, wages may be paid into a bank, building society or credit union account nominated by the Employee at the same time of payment of Temporary and Full-time Employees' wages.

 

26.3      Pay Period

 

Day Work Employees

 

Unless otherwise agreed at the site, the weekly payment of wages will occur on Tuesday of each working week.  Payment will be for the hours worked between Monday to Sunday of the previous week.

 

Shift Work Employees

 

Unless otherwise agreed at the site, the weekly payment of wages will occur on Thursday of each working week.  Payment will be for the hours worked between Wednesday to Tuesday of the previous week.

 

27.  Deduction of Union Fees

 

Where authorised by an Employee, the Company shall deduct from wages Union membership fees which shall then be forwarded to the Union.

 

28.  Shift Workers

 

Notwithstanding anything in this award, the following principles will apply:

 

28.1      12-Hour Shift Employees

 

(a)        The shift roster in the Extract and Scott Plants will be a continuous 12-hour shift roster, 4 days on 4 days off, 2 early shifts followed by a 24-hour break followed by 2 late shifts.

 

(b)        Employees working this shift roster will be paid according to the "Annualised Wage System".  (See clause 29).

 

(c)        Annual leave, sick leave and long service leave shall be deducted and paid for the ordinary hours taken.

 

28.2      Shift Allowances

 

A Shift Worker shall be paid the following allowance:

 

	Grade Wage Rate %
(i) 5-day Shift Worker	15
(ii) 7-day Shift Worker	30
(iii) 12-hour Shift Worker	30

 

29.  12-Hour Shift Workers - AWS

 

Employees working this shift roster will be paid according to the "Annualised Wage System".

 

The concept of the AWS is to annualise the weekly pay of 12-hour Shift Employees ("Employees").  This is achieved by totalling:

 

45 ordinary weeks

 

2 weeks' sick leave ("SL")

 

5 weeks' annual leave ("AL")

 

11 public holidays at 7.6 hours per day

 

to arrive at a weekly average for 52 weeks of the year.

 

Where Employees do not take their expected total of AL or SL in a designated year, Employees will be reimbursed.  This will be calculated on an annual anniversary date and may consist of outstanding shift and or overtime payments.

 

29.1      Pay Structure (as at 28/10/98)

 

Ordinary hours per week: 38

 

 

Employees work an average of 42 hours per week based on an 8-week cycle.  The 8-week cycle consists of 4 weeks of 4-day weeks and 4 weeks of 3-day weeks.  The 8-week rotation is illustrated as follows:

 

Cycle A

 

 

Cycle B

 

 

2 hours a week of overtime on each of the 4-day weeks are transferred to the 3-day weeks to complete the 38-hour ordinary week in the 3-day week.  The balance of 8 overtime hours on the 4-day week is then divided between the 4- and 3-day week as follows:

 

 

Overtime hours per week are then divided into 1 hour of time and a half (1½) and 3 hours' double time (2x).

 

Weekly earnings are calculated as follows:

 

 

Annualised weekly earnings in the AWS are calculated as follows:

 

 

Ordinary Hours

 

For both 4- and 3-day weeks, ordinary hours will equal the number of days times standard ordinary hours per day.  Total ordinary hours are then adjusted to average the weekly earnings to 38 hours.  In a 4-day week, 5.428 hours will be deducted to be paid in a 3-day week and vice a versa if the 3-day week falls in advance.  Both total hours and hours deducted or advanced are to be displayed on the payslip for the pay period plus a year to date total.

 

A day of ordinary time will consist of 10.857 hours (the balance of the 12-hour day is overtime).  This is derived from totalling 8 weeks times 38 ordinary hours (8 x 38 = 304hrs) divided by 3.5 days per week (8 x 3.5 = 28) to arrive at 10.857 ordinary hours per day (304/28 = 10.857).

 

The value of annualised ordinary hours do not reflect the ordinary base rate of $14.1463, as this rate must be annualised.  This is calculated as follows:

 

 

This rate is applicable for:

 

Ordinary hours worked as part of the rostered week;

 

The first 190 hours of AL per year;

 

The first 76 hours of SL per year.

 

Annual Leave

 

Employees are required to take 190 hours (this is the equivalent of 5 weeks of 38 hours) of AL each year.  Each day of AL will consist of 10.857 hours (the annualised week equals 3.5 days).  The first 190 hours will be paid at the hourly average base rate (as described above) with no further deduction of rostered overtime required.

 

Where an Employee does not take 190 hours of AL, the balance of overtime underpaid under the AWS will be reimbursed at an agreed annual anniversary date.  Conversely, if AL over the course of the year exceeds 190 hours, there will be a reduction in the routine weekly overtime payment in the pay period concerned.  For details of the reduction, please refer to the section headed "Shift Allowance and Rostered Overtime".

 

New Employees, Employees with no accrued AL or Employees with less than 190 hours accrued at the commencement of the AWS will also be paid at the weekly average base rate.  Similarly, these Employees will be reimbursed any shortfall on overtime at the agreed anniversary date.

 

Pay weeks made up entirely of AL or part thereof will continue to have the normal 5.428 or 5.429 hours deducted or added to arrive at the standard 38 hours per week.  AL exceeding 190 hours will be paid at the hourly average base rate.

 

AL hours paid (as shown on the payslip) will reflect the hours taken off their leave balance.  Employees leave balances will not be reduced until the leave is taken.

 

Sick Leave

 

Employees are assumed to take 76 hours of SL each year.  Each day of SL will consist of 10.857 hours.  The first 76 hours will be paid at the hourly average base rate (as described in "Ordinary Hours" above) with no further deduction of shift allowance or rostered overtime required.

 

Where an Employee does not take 76 hours of SL, the balance of overtime and shift allowance underpaid under the AWS will be reimbursed at an agreed annual anniversary date.  Conversely, if SL over the course of the year exceeds 76 hours, there will be a reduction in the shift allowance and rostered overtime payments in the pay period concerned.  For details of the reduction, please refer to the section headed "Shift Allowance and Rostered Overtime".

 

Pay weeks made up entirely of SL or part thereof will continue to have the normal 5.428 or 5.429 hours deducted or added to arrive at the standard 38 hours per week.  SL exceeding 76 hours will continue to be paid at the hourly average base rate.

 

New Employees, Employees who have utilised their SL or have less than 76 hours available at the commencement of the AWS will also be paid at the hourly average base rate. Similarly, these Employees will be reimbursed any shortfall on overtime or shift allowance at the agreed anniversary date.

 

SL hours paid (as shown on the payslip) will reflect the hours taken off their leave balance.  Employees leave balances will not be reduced until the leave is taken.

 

Shift Allowance ("SA") and Rostered Overtime ("ROT")

 

SA is calculated on 30% of the weekly base rate (refer above).  SA will be paid in full where an employee attends to commence his or her shift.

ROT payments are still based on the ordinary base rate (refer above).  The first 1.143 hours of an Employee's shift is deemed to be overtime with the remaining time being ordinary hours.  For example, an Employee who retires sick after 2 hours of a 12-hour shift will receive 10 hours' SL and have 10 hours deducted from his or her SL accrual.  No ROT would be deducted in this instance.

 

Each week's payment of both SA and ROT will be recorded on the payslip in units of days.  The standard week will consist of 3.5 units (days) of ROT and SA.  Any adjustments to SA and ROT will be based on the daily rate or a percentage of.  The daily rate is calculated as follows:

 

 

SA and ROT standard weekly payments will not vary except where:

 

AL paid exceeds 190 hours for the year, 1 day of ROT deducted per day (10.857 hours) of excess AL;

 

SL paid exceeds 76 hours for the year, 1 day of ROT and SA deducted per day (10.857 hours) of excess SL;

 

Payment of LSL, 1 day of ROT and SA deducted per day (10.857 hours) of long service leave;

 

Leave without pay, 1 day of ROT and SA deducted per day (10.857 hours) of leave without pay.

 

In general, the above deductions are in line with current practice with the exception where an Employee does not attend for any of the total 3 or 4 shifts for the week due to AL, SA or LSL.  In this instance the number of days absent will continue to be deducted off the applicable ROT or SA.

 

For example, where SL is taken for all 4 days of the week and the Employee's incidence of SL for the current year exceeds 76 hours, an Employee's ordinary wages will be reduced below the weekly average base rate.  This is a result of 4 days' SA and ROT being deducted from the standard 3.5 ROT and SA. Similarly, in the example of a 3-day week where SL is taken for all 3 days of the week, ROT and SA are deducted for 3 days.  Hence an Employee will receive his or her weekly average base rate plus half a days ROT and SA.  Refer to Annexure 2 for a detailed example of both scenarios.

 

Long Service Leave ("LSL")

 

LSL will be paid at the hourly average base rate.  No SA or ROT will be paid when in receipt of LSL.  For example, a day's LSL will mean a reduction in 1 day's ROT and SA.

 

Pay weeks made up entirely of LSL or part thereof will continue to have the normal 5.428 or 5.429 hours deducted or added to arrive at the standard 38 hours per week.

 

Compassionate Leave

 

Compassionate leave will be paid at the hourly average base rate.  No SA or ROT will be paid when in receipt of compassionate leave.  For example, a day's compassionate leave will mean a reduction in 1 day's ROT and SA.

 

Pay weeks made up entirely of compassionate leave or part thereof will continue to have the normal 5.428 or 5.429 hours deducted or added to arrive at the standard 38 hours per week.

 

Workers' Compensation

 

Workers' Compensation will be paid as per the Workers' Compensation legislation as may be in place at such time.

 

Public Holidays

 

Public holiday payments of 7.6 hours per day to a total of 11 days have been totalled and are to be paid over the term of the year on a weekly basis.  These payments will continue to be paid weekly regardless of the make-up of the pay, including time off without pay in the short term.

 

Beyond the short term, continuation of public holiday payments will be at Management discretion based on individual circumstances.  Management will review this approach at completion of the trial period.

 

Other principles applying to public holidays are as follows:

 

Employees rostered off on a public holiday will receive payment as per subclauses 17.6 and 17.7, already being paid in weekly instalments.

 

Employees rostered to work will receive an additional 4.4 hours at single time based on the ordinary base rate.

 

Employees engaged on a public holiday but not rostered to work will be paid at time and a half for all hours worked as per subclause 17.8 based on the ordinary base rate.

 

Where a public holiday falls on a rostered day during an employees period of AL, 10.857 AL hours will be paid and deducted from the Employee's accrual.

 

In the event of an additional public holiday being declared, this will be paid during the corresponding pay week as follows:-

 

Employees rostered off will receive payment as per subclause 17.6 - 7.6 hours at the ordinary base rate;

 

Employees rostered to work will receive single time extra at the ordinary base rate for all hours worked as per subclause 17.7.

 

Leave without Pay

 

No ROT and SA will be paid when on leave without pay.

 

Anniversary Date Review

 

Once a year at an agreed date Employees will have their year to date leave reviewed and any outstanding payments will be reimbursed.  These will include:

 

ROT where AL taken for the year is less than 190 hours.

 

ROT and SA where SL taken for the year is less than 76 hours.

 

Hourly average base rate times the balance of hours less than 22 hours on the Employee's ordinary accrual.  This may occur where an Employee changes shifts during the year or works in a relieving position.

 

Similarly, at this anniversary date the Company will recoup overpayments to Employees. This will include hourly average base rate times the balance of hours greater than 22 hours on the Employee's ordinary accrual.  This may occur where an Employee changes shifts during the year or works in a relieving position.

 

Outstanding payments or reimbursements from Employees are to be settled within one month of the anniversary date.  This period is to allow sufficient time for the balance to be calculated by the pay office as many anniversary dates will fall simultaneously.

 

Where an Employee finishes with the Company midway through the year, any outstanding payments or overpayments will be settled in the employees final pay.

 

30.  Casual and Temporary Employees

 

30.1      A Casual Employee is an employee engaged for a minimum of 4 and a maximum of 12 ordinary hours per day.

 

30.2      Casual Employees may be engaged on any roster or shift system operating at the workplace if he or she agrees in writing upon commencing with the Company.

 

30.3      Casual Employees will be engaged at the Grade 1 rate for the first 500 hours of work completed.  Following 500 hours, Casual Employees will complete a competency assessment as administered by the Company.  On successful completion of this assessment, the Casual Employee will be engaged at the Grade 2 rate.

 

30.4      When engaged on roster or shifts, Casual Employees receive the appropriate shift penalties based on their ordinary hourly rate of pay for all ordinary hours.

 

30.5      A Casual Employee's ordinary hourly rate is 120% of a Weekly Employee's hourly rate for the grade job for which they are competent.

 

30.6      Ordinary hours for a Casual Employee will be as per the rostered shift length he or she is engaged upon.

 

30.7      Casual Employees will work no more than 40 hours in a pay week.

 

30.8      A Temporary Employee is one engaged for a specific period of at least 38 ordinary hours.  Where an employee is engaged on a short term temporary basis, i.e. between 1 and 3 weeks' duration, there shall be a maximum of 5 such engagements per calendar year, unless agreed vacancies or business needs require.

 

30.9      Union Delegates and Management will monitor casual and temporary work on a regular basis.

 

30.10    As provided for in the Annual Holidays Act 1944, Casual Employees will be paid an additional 1/12th of their ordinary earnings as pro rata annual leave at the end of the period of engagement.

 

30.11    As provided for in the Annual Holidays Act 1944, Temporary Employees will accrue pro rata annual leave entitlements.  The balance of untaken leave shall be paid at the end of the period of engagement.

 

31.  Superannuation

 

As required by the Superannuation Guarantee (Administration) Act 1992, the Company shall, for each Employee, contribute to a scheme the appropriate amount as detailed in the Nestlé Australia Ltd (Superannuation) Award 1987 and the Consent Order of 1990 (C No. 20238 of 1990), i.e.

 

31.1      Weekly Employees - The Company shall in respect of each Weekly Employee contribute to a scheme, of which the Employee is a member and to which the Company is bound to contribute pursuant to the relevant Trust Deed of Adherence, an amount equal to 3% of the ordinary time earnings of such employee.

 

31.2      Casual Employees - The Company shall in respect of each Casual Employee who has been employed by the Company for at least 38 hours over a 6-monthly period contribute to a general industry scheme of which the Employee is a member and to which the Company is bound to contribute pursuant to the relevant Deed of Adherence, an amount equal to 3% of the ordinary time earnings of such Employee.

 

31.3      "Scheme" means the Nestlé Australia Retirement Plan, the Meat Industry Employees Superannuation Fund or any other fund or scheme that comply with the Australian Government's Operational Standards for Occupational Superannuation Funds.

 

31.4      "Ordinary-time Earnings" means the ordinary periodic salary wages or other remuneration being paid by the Company to the Employee each week, including, where applicable, shift penalties, tool allowance and leading hand allowance, but not including any bonuses, commission, payment for overtime or other extraordinary payment, remuneration or allowance.

 

31.5      Choice of Fund - Superannuation contributions made by the Company on behalf of the Employees under this agreement may only be made to the Meat Industry Employees Superannuation Fund or the Nestlé administered fund, NAGSF.  Employees shall have the choice to have contributions directed to an appropriate fund.  This choice may be exercised as at 1 January each year.  The cost of any change will be the responsibility of the Employee.

 

32.  Redundancy

 

This clause is applied in respect of Permanent Employees of the Company who are employed in the classifications set out in this award.

 

32.1      Consultation and Process

 

Prior to any redundancies occurring, there shall be consultations in accordance with the relevant award/agreement to ensure all circumstances have been considered and alternative opportunities examined.

 

Wherever possible, the Company shall endeavour to minimise the need for redundancies by utilising:

 

(a)        natural attrition

 

(b)        redeployment of Employees into other roles/areas accompanied by necessary training

 

(c)        utilisation of Employees to provide relief cover for Employees on annual leave, long service leave or undergoing training

 

before voluntary redundancies are sought.

 

The Company will arrange, wherever possible, for an Employee who is to be redeployed into another area within their current location, to gain experience and/or commence training in the new area prior to the permanent redeployment occurring.

 

Where confirmation has been given that the employment of an Employee is to be terminated as a consequence of their job being redundant, and a vacancy exists which would not normally constitute a suitable alternative to the Employee’s previous position, an Employee may elect to trial such position for a period no longer than the notice period.

 

If at the completion of the trial period the Employee does not wish to continue in that position, then the Employee will be made redundant.

 

Where redundancies are necessary, the Employees directly affected will receive the first opportunity to accept a redundancy package.  This will be subject to the Company retaining the experience and skills necessary to meet its business requirements.  Where there are more volunteers than redundancies, Employees with longer service will have preference in accessing a package.

 

If, during the term of this agreement, the Company has to invoke a redundancy, the Union may seek further discussions with the Company to ensure all aspects of such a move were fully addressed.

 

32.2      Redundant Employees

 

Where a decision is taken that a job currently being at the Smithtown Factory is not to be done by anyone, that job will become redundant.

 

Where the employment of any Employee(s) to whom this Agreement applies is terminated as a consequence of jobs being made redundant, a redundancy benefit shall become payable.

 

A redundancy benefit shall not become payable in the following circumstances:

 

(a)        Where an Employee is dismissed for other than redundancy.

 

(b)        Unless an earlier date is agreed, where an Employee leaves of his/her own accord prior to the Company nominated date of termination.

 

This clause does not apply in the case of Probationary Employees, Casual Employees, apprentices or employees engaged for a specific period of time or for a specified task or tasks.

 

32.3      Timing of Departure

 

Where the employment of an Employee is to be terminated as a consequence of jobs being made redundant, the Employee concerned will, wherever possible, receive confirmation of this 2 months prior to the nominated date of termination.

 

Once the date of termination has been confirmed, should the Employee request an earlier date of departure due to an offer of alternative employment, the Company will endeavour, wherever reasonable, to facilitate this either through the use of casual, temporary or existing permanent staff.  If this is not possible, the Employee should be notified at the earliest opportunity.

 

Where an earlier date of departure is agreed, calculation of the redundancy benefit shall be to date of departure.

 

32.4      General Assistance

 

During the notice period, the Company will consult with each Employee and provide relevant assistance.  Examples of this might include attendance at a job search and/or resumé writing workshop; retirement seminar; financial or individual counselling; skills expansion training.  Employees will be given a reasonable amount of time off to attend such programmes.

 

32.5      Redundancy Benefit

 

Each redundant Employee shall be entitled to a payment equal to 3 weeks’ ordinary pay as a severance payment.  (See definition of "ordinary pay" in subclause 32.6).

 

Each redundant Employee shall also receive a service payment which shall be calculated as follows:

 

A redundant Employee with 3 years' service or less will be paid on termination 3 weeks' ordinary pay for each year of service or part thereof.

 

A redundant Employee with more than 3 years service will be paid 4 weeks ordinary pay for each year of service or part thereof.

 

An age allowance will apply to the above payments as follows:

 

 

Years of service will be calculated with any part year treated as a whole year.

 

Where an Employee has had a break in service, years of service will be calculated on actual service deemed to be continuous with the current period of service according to the Long Service Leave Act and the applicable award/agreement.

 

32.6      Ordinary Pay

 

In this agreement, "ordinary pay" means the remuneration for the Employee’s normal weekly number of ordinary hours of work calculated at the ordinary time rate of pay at the time of receiving notice of their redundancy, including shift penalties.

 

The calculation of the shift penalties will be as follows:

 

For the Employee on a fixed shift, it would be the appropriate shift penalties.

 

For an Employee on a rotating shift, it would be the average of the shift penalties over a normal cycle.  In the absence of a normal cycle, it will be the average over the previous 6 months.

 

In cases where the Employee has worked shift within the past 12 months but on the date of termination is not working shift and therefore not in receipt of shift penalties, the calculation is to consider the period of time that shift was worked within the past 12 months on a pro rata basis.

 

32.7      Annual Leave

 

Redundant Employees shall receive payment of pro rata annual leave.

 

Redundant Employees shall receive the applicable annual leave loading, as prescribed in their respective award, on all annual leave both accrued and pro rata on termination.

 

32.8      Long Service Leave

 

Redundant Employees shall receive a pro rata payment, which shall commence after 1 year of continuous employment.

 

32.9      Superannuation

 

Redundant Employees’ superannuation benefits shall be calculated in accordance with the relevant Superannuation Trust Deeds and relevant awards/agreements.

 

33.  Trade Union Training

 

A pool of 10 days in total, without loss of ordinary pay, in any one calendar year will be allowed for Union Delegates to attend Company approved Trade Union courses at an agreed time.  A request for leave is to be made at least 3 months in advance unless otherwise mutually agreed.

 

34.  Leave to Attend Union Business

 

The Company may grant leave of absence without loss of pay to Union members to attend Union business.

 

The Company will grant unpaid leave of absence to Union members to attend Union business if it is advised 14 days prior to the leave the intended duration of the absence, and the Company is satisfied as to the relevance of the business to the Smithtown Factory.

 

Paid or unpaid leave to attend Union business shall be granted to only one Employee at a time unless agreed between the parties.

 

35.  Area, Incidence and Duration

 

This award rescinds and replaces the Nestlé Smithtown Enterprise Award 2001 published 4 October 2002 (336 I.G. 588).

It shall apply to all employees of the classifications specified herein.

 

It shall take effect from 5 November 2004 and shall remain in force until 29 April 2007.

 

36.  No Extra Claims

 

No claims will be pursued except where consistent with the State Wage Case Principles current during the period covered by this agreement.

 

37.  Grade Wage Rates

 

Table 1 - Grade Wage Rates*

 

 

*Pay rates are based on the provision that site KPI's are met in line with clause 14.

 

Table 2 - Allowances

 

 

APPENDIX 1

 

 

APPENDIX 2

 

(Effective 29.4.2001)

 

 

 

 

R. W. HARRISON  D.P.

 

 

____________________

 

 

Printed by the authority of the Industrial Registrar.