(976)

SERIAL C3468

Before The Honourable Justice Haylen

26 November 2004

1.

RETRENCHMENT

Explanation

Following the announcement on 14 April 2003 of

During the transitional period there will be a

the decision to cease production at Kent Brewery

various meetings were held involving Company and

need to progressively reduce overall manning

employee representatives to discuss arrangements

numbers in line with changes in the production

for those employees affected by this decision.  All

requirements leading up to the cessation of

Operations employees covered by this agreement

production by February 2005. This follows the

will cease employment with the Company by

initial reduction of 40 employees announced in

February 2005 unless otherwise employed

May 2003.

elsewhere within the Company.

The reduction of numbers during this period

The initial major reduction of employees (40) was

will occur through voluntary and involuntary

announced in May 2003. Subject to production

retrenchments. The process for selecting

requirements it is anticipated that the next major

employees is detailed in Appendix 1.

reduction of employees will occur by February

2004.

It is anticipated that the next major reduction of

employees will occur by February 2004

In the event that an employee wants to take

however the timing of this will depend on the

voluntary retrenchment prior to the Company

otherwise selecting the employee for retrenchment,

production requirements at the time.

discussions will take place between the relevant

work area team, relevant union and the Company

The Company will notify employees in advance

to determine whether or not the employee can take

of when the retrenchments will occur. However

voluntary retrenchment at that time.

some employees may want to leave prior to

these retrenchments otherwise occurring. In this

During the transition period there will be a

case discussions will take place between the

requirement to implement retrenchments as the

relevant work area, relevant union and the

manning requirements change in line with changes

Company to discuss whether or not the

in the scope of the production operations.  This may

employee can take retrenchment in advance of

require selecting employees for redundancy.  The

the retrenchments otherwise occurring.

following process for selecting employees to take

retrenchment prior to the cessation of production at

Kent Brewery will apply:

Involuntary retrenchment will only occur if there are

insufficient volunteers in the nominated work group

concerned. Volunteers may come from other work

areas subject to other employees possessing the

requisite skill and competency levels to replace

those employees and being willing to move to other

work areas.

All employees in the work groups concerned will be

assessed against the selection criteria and process at

Appendix 1.

Prior to the assessment process occurring employees

will be advised of the intention to make a number of

positions redundant. Employees will be advised of

the selection criteria and process to be applied.

The parties may review the selection process and

The selection process and criteria is aimed at

criteria during the transition period as appropriate.

making the process as transparent and fair to all

employees concerned as possible. It may however

be necessary to change either the criteria and/or the

process during the transition period in which case

this will be considered by the parties at the time

2.

EMPLOYEE ASSISTANCE

The following support programs and assistance will

be provided to employees during the transition

period and on termination of employment due to

retrenchment:

(1)  Financial support - Employees who are made

These payments will not be applicable where

redundant as a result of the cessation of production

acceptable alternative employment is obtained

will receive the redundancy formulae detailed in the

for an employee within FGL or where an

relevant correspondence between the parties.

employee has been transferred to a similar

position or reasonably comparable position

(2)  Retraining- The Company will provide a

following the succession, assignment or

Learning and Transition Centre to assist employees

transmission of a business.

with the transition to their chosen field following

retrenchment.  This will include the following

services being provided:

Interview training

Resume writing

Job search assistance

Superannuation information

Retirement information

In addition assistance will be provided to employees

to undertake specific training programmes during

the transition period subject to operational

requirements.

(3)  Redeployment

(a)  Employees interested in redeploying to other

The Company will notify employees of any

operations within FGL will be assisted in applying

vacancies as they become available.

for any suitable vacancies as they arise.  Whilst the

Company will assist in arranging interviews and

references it is understood that such vacancies will

be filled on merit and accordingly the company

cannot guarantee that employees will be

automatically offered redeployment.

As noted above the redundancy payments will

not be applicable where acceptable alternative

(b)  Employees who successfully apply for a

employment is obtained for an employee within

position elsewhere within FGL prior to otherwise

FGL or where an employee has been

terminating their employment will not receive the

transferred to a similar position or reasonably

redundancy payments provided in 2 (1) in this

comparable position following the succession,

clause.

assignment or transmission of a business.

Employees will receive continuity of service.

(c)  Employees who successfully apply for a

position interstate within FGL whilst still employed

The FGL Domestic Relocation Policy provides for

by CUB (NSW) will receive relocation assistance.

different levels of relocation assistance depending

on the basis that employees transfer.  Details

References - It is Company policy to not provide

regarding relocation assistance are available from

personal references however statements of service

Human Resources.

detailing the employee’s work history including

period of service, reason for leaving, positions

worked, and levels of skills and competence will be

provided to all employees on termination or earlier

on request.

Work Area Teams

Explanation

During the transition period Work Area Team’s

(WAT) will continue to be responsible to operate

A WAT is a team of people working together to

their Business Unit to meet the budgeted/planned

achieve common outcomes.

performance targets. As in the past the

responsibilities of work area teams will include:

The team contains all the capabilities required to

operate, maintain and monitor the performance of

Production of product to specified quality standards

the work area.

as required

The team may focus on a process activity (such as

Minimising waste of materials, product and energy

Racking or B1) or a support activity (such as

Quality Assurance or Main Store).

Breakdown maintenance

Production plans will be issued to teams and will

provide the guidelines within which they will

Team skill development

implement their production, reliability and hygiene

activities.

Workforce planning/leave management

Supervision of contractors

Achieve budget

Ensure due care is taken to protect the environment

Ensure team members act in a safe, fair and honest

manner.

Where there is no agreement, reference to the

Teams will develop specific policies and procedures

WOT may occur.

for their Work Area Teams. These will be

consistent with principles in this agreement and

include Team Management in the process

Health, Safety & The Environment

Explanation

We are committed to operating our plant in a safe,

This will be achieved through continuation of our

healthy and environmentally responsible manner.

safety committees, knowledge and skill

development, health programs and drug and

alcohol counselling, waste minimising programs

and environmental management systems.

Working in a healthy and safe environment requires

that all people wear protective clothing, safety eye

wear and hearing protection in areas so designated.

Smokers are also required to smoke only in

designated smoking areas.

Competent in this context means being accredited

Demarcation

as competent to do the task under the Competency

Development Program.  Where necessary

Work can be performed by a person who has the

competent will also mean holding the appropriate

skills and is competent to perform it safely,

license or licenses.

effectively and efficiently.

We are committed to progressively reducing

If a demarcation issue arises it will be resolved by

demarcations at Kent Brewery

the work area team and the appropriate unions.

Discipline

If a person acts in a unsafe, unfair or dishonest way,

Explanation

the work area team will be responsible for

disciplinary action. If the work area team cannot

resolve the issue, the matter can be referred to

management and the Shop Committee.

Disciplinary procedures will be consistent with the

Grievance and Disciplinary Procedure.

Contractors

Work area teams will determine the extent to which

contractors are used. They will take into account:

The requirements to get the job done

The use of contractors will be determined by the

process outlines in Part Kent Brewery Contract

Budgetary limitations

work arrangements.

Kent Brewery contract work arrangements

Work Organisation Team (WOT)

The Work Organisation Team (WOT) will continue

to provide a forum for resolving work place issues.

Explanation

Hours of Work & Shift Patterns

Work area teams can determine flexible hours

Changes to the regular hours of work and shift

within their applicable shift patterns.

patterns will be coordinated with the Work

Organisation Team (WOT) before implementation.

They will take the following factors into account:

The ordinary hours of work for all employees will

be an average of 35 hours per week averaged over

a period of 52 weeks

CUB’s production plan

The requirement to "get the job done"

The proposal is "safe, fair and honest"

The requirements of the employees for satisfying

work recreation and personal development

Occupational health and safety.

Consultation will take place, to reach agreement,

prior to implementation.

For employees participating in the Stable Income

Plan

The normal working hours for day workers will be a

minimum of thirty-five per week.  The normal hours

will not exceed 12hrs a day and will be worked

between 6.00 am and 6.00 pm exclusive of a lunch

For further details see Appendix 2

break of not less than 30 minutes.

The normal hours of shift workers will be a

minimum average of thirty-five per week to be

worked on a roster which is developed by the WAT.

For all other employees

Shift workers means sets of employees working

in rotation on shifts of not more than 12 hours

The ordinary working hours for day workers will be

duration including crib breaks.

an average of thirty-five a week. The ordinary hours

will not exceed 12hrs a day and will be worked

between 6.00 am and 6.00 pm exclusive of a lunch

break of not less than 30 minutes.

The ordinary hours of shift workers will be an

average of thirty-five per week to be worked on a

roster of any cycle which is developed by the WAT.

Overtime

Overtime payments will be paid for all time worked

by day workers outside of their ordinary hours at

the rate of time and one-half for the first two hours

and double time after that.

Overtime payments will be paid for all time worked

by shift workers outside of the ordinary hours of

their roster at the rate of double time.

A meal allowance will be paid to an employee who

works overtime for two hours or more before a

normal starting time or for two hours or more after

a normal finishing time.

Employees will have a prescribed continuous break

between the finish of work on one day and the start

of ordinary time on the next day.

The prescribed break will be ten hours except:

a)  when a shift worker is not relieved at the end of

a shift

b)  when arrangements have been made between

The relieving shift will be responsible for

employees.

organising the relief arrangements.

In these cases the break will not be less than eight

hours.

Employees will not lose any pay for ordinary time

occurring while they are having a prescribed break.

An employee who is instructed to resume or

Explanation

continue working without having had the prescribed

break will be paid double time for the time worked

until they are released for a prescribed break.

A day worker who works overtime for more than

1.5 hours after working ordinary time will be

allowed a meal break of 20 minutes before starting

overtime work.  This meal break will be paid at

ordinary rates.

A further meal break of 20 minutes will be allowed

without deduction of pay after each four hours of

overtime worked if the employee continues to work

after that meal break.

An employee recalled to work after having left

work will be paid a minimum of four hours at the

appropriate overtime rate.

An employee occasionally required to be ready to

be recalled to work on a Saturday which is not an

ordinary work day or on a Sunday or public holiday

will be paid ‘standing by" pay at the ordinary time

rate for the time so spent.

Weekend and Public Holiday Work

Explanation

All work performed between midnight Friday and

midnight Sunday will be paid at the rate of double

time.

The days on which the following days are observed

will be Public Holidays:

New Year’s Day; Australia Day; Good Friday;

Easter Monday; Anzac Day; Queen’s Birthday;

Eight Hour Day; Christmas Day; Boxing Day;

Picnic Day and all other gazetted holidays observed

at the location.

Except for continuous process workers, employees

will be paid for their absence from work on Public

Holidays unless they are absent, without reasonable

excuse, the day before or the day after the Public

Holiday.

Continuous process workers who are required to

work on a Public Holiday shall be paid at the rate

of double time and one-half.

If a Public Holiday is on a day which the employee

may be required to work but at that time the

employee is rostered off, the employee will be paid

an additional days pay.

Coverage

Explanation

Work area teams will organise cover for their area if

required to provide for leave, sickness, workers’

compensation and leave without pay. They will also

organise call-ins if required to cover casual absences

and breakdowns.

Leave Rostering

Work area teams will coordinate the annual and long

service leave in their area. They will take the

following factors into account.

The requirement to "get the job done"

Leave is taken in accordance with the Annual

Holidays Act.

Leave Entitlements

Explanation

Annual Leave, Long Service Leave and Parental

These are currently 4 weeks annual leave for all

Leave will be provided in accordance with the

people other than people on a 7 day shift roster

relevant State legislation.

whose entitlement is 5 weeks annual leave.

An Annual leave loading will accrue at the rate of

An employee will be entitled to bereavement leave

two weeks pay (at the annual leave rate) for each

without loss of pay on production of satisfactory

year of service.

evidence of the death of a close relative.

Bereavement Leave, Jury Service Leave, Military

The Company will make up the difference between

Reserve Leave, Leave for Blood Donors,

the amount paid by the Sheriffs Office and the

Repatriation Leave, Sick Leave, Family Leave and

employee’s ordinary rate of pay on production of

Study Leave will be provided as determined by the

satisfactory evidence of attendance of Jury Service

work area team.

to the work area team.

Evidence of attendance of the employee at the

recognised place for donating blood and the

duration of the attendance will be given to the work

area team.

Ex-service personnel shall be allowed paid time

to attend Repatriation Centres for medical

examinations and/or treatment on production to

the work area team of satisfactory evidence of

such attendance.

Sick Leave

Employees will give reasonable notice to the

Sick leave will be available to employees on the

work area team of their impending absence.

basis that they may have as much leave as required

Employees claiming sick leave will give

for their recuperation, subject to periodic review.

satisfactory evidence to the work area team of

If a pattern of absences has occurred over a period

their inability to attend work on the days which

of time, the normal counselling process will be

sick leave is claimed.

implemented.

If the absences continue, the matter will be referred

Explanation

to the Work Organisation Team for review. This

review may consider, but not be limited to, the

Family Leave will be available to employees who

continued provision of non-specific sick leave

have responsibilities in relation to their immediate

benefits in the individual cases, or other appropriate

family or members of their household who need

action.

their care and support.  Employees claiming family

leave will be required to give satisfactory evidence

At no time will sick leave entitlement be less than

to the work area team of their obligations.

the legislated minimum requirement.

An employee will be granted compassionate leave,

Compassionate leave will be provided to a limit of

without loss of pay, on production of satisfactory

three days per annum.

explanation of personal or domestic problems.

DURING TRANSITION PERIOD

Explanation

During the transitional period the underlying

The delivery of learning will be determined by the

principle that people be paid for the relevant skills

relevant skills of the individual, his/her ability and

they hold will continue to be applied.  The principle

motivation to acquire additional skills and

that work can be performed by a person with the

knowledge, the physical availability of training

skills and competence to do it safely, effectively

places and operational requirements.

and efficiently will also continue to be applied.

This principle must be read in conjunction with the

demarcation provisions at Part 4 and the Disputes

This is consistent with the work organisation

and Grievance Procedures at Part 8.

principle that work can be performed by a person

with the skills and competence to do it safely,

effectively and efficiently.

As provided in Part 3 the focus during the transition

period will be on providing employees with relevant

People who show aptitude and are prepared to

skills to assist employees with the transition to their

develop and deliver skill modules may be seconded

chosen field following retrenchment. Further details

from their work areas to provide assistance to the

regarding this are provided in Part 3.

Learning Centre.

Learning Time and Access

As far as possible, skills development for work area

skills will take place in the brewery and on-the-job.

Most of the learning modules will be delivered in

Learning Centres on site.

Where possible, courses leading to recognised

external qualifications will be delivered in Learning

Centres on site.  This will require the cooperation of

the external providers.

If learning time occurs when a person is rostered

For employees participating in the Stable Income

on and the work area team covers that person

Plan

without getting an additional person to cover, then

Where a work area has gone on to SIP then 120

the time does not come out of the learner’s 120

hours per year of a person’s accounted hours may

hours.

be used as learning time for skills development.

If work area teams are finding it difficult to cover

A person on SIP may pursue further skills

learning time or if learning hours are being used up

development and skills points outside of their

in much less than one year then the matter will be

accounted hours.

reviewed with regard to increasing learning time or

workforce numbers to allow coverage for learning.

For all other employees

This is recognising that the skills acquired

Where skills are learnt on the job (e.g. work area

ultimately contribute in providing further

skills) the learner will be paid at normal time.

opportunities for the person.

Where skills are learnt off the job (e.g. generic

Work area teams will be required to work out a

skills or external qualifications) the learning time

skills development plan for the team and it’s

will be covered by the person’s work area team or

members. This will be consistent with the

done in the employee’s own time.

Competency Development Program and based

on identifying skills gaps and needs for the team.

An important role of work area teams will be to

Work organisation reviews will take into account

ensure that team members have fair access to skill

skills development plans.

development opportunities for both work area

modules (e.g. by rotation within and across teams)

If work area teams are finding it difficult to cover

and generic skills (e.g. by coverage or rostering).

learning access then the matter will be reviewed

with regard to increased learning access or

workforce numbers to allow coverage for learning.

Increased plant efficiencies and seasonal variations

in work load will enable learning time to be built

into rosters.

Learning or Language Difficulties

Explanation

If an employee has difficulty either learning or

being assessed because of English language or

Learning difficulties may be identified by work area

literacy skills, assistance may be sought from the

teams monitoring the progress of team members

Learning Centre.

relative to the learning time being used.

If an employee has a learning difficulty (other than

literacy) they may be referred for confidential

assessment and counselling.

We have an on-going commitment to addressing

language and learning difficulties on site.

Transition Period Arrangements

The existing pay structure will continue during the

The Classification on Structure provides a

transition period. This structure is based on recognition

range of skill levels to cover all employees.

of the skills and knowledge, complexity and

responsibility of work areas and roles, relative to one

another.

The levels of pay and the operation of the pay structure

The existing pay structure will continue to

have been designed to promote the implementation of

operate during this agreement. The demarcation

flexible work arrangements and not create demarcations

provisions need to be read in conjunction with

between roles, work areas or pay levels.  The pay

the Demarcation provisions in Part 4 and the

system recognises employees carrying skills and

Disputes and Grievance Procedures in Part 8.

knowledge from previous experience.

The principles of the pay system apply to all areas

covered by the award or Enterprise Development

Agreement

(2)  Wage Rates:

An employee’s remuneration will be determined by the

employee’s position in the skills structure.

It has been agreed that the following increase to base

rates of pay will apply for this agreement:

Date

Increase

From 2 June 2003

6%

(3)  allowances

In addition to the Skills Level Payments, the following

allowances are to be paid.

(a)  Shift Allowances which form part of a wage rate for

all purposes.

A shift worker working on rostered shifts - $53.08 per

week provided that employees on a rotating 5 day shift

roster shall receive an additional allowance of $1.80 in

respect of each night shift, other than weekends, that is

actually worked.

Provided that any employees working a rotating 7 day

shift roster shall, in lieu of the above, receive an all

purpose amount of $71.39 per week.

A shift worker working on 12-hour rostered shifts shall

be paid $71.39 per week.

(b)  Disability allowances which are paid for the

duration of the disability.

An employee required to work overtime for 2 hours or

more prior to a normal starting time or 2 hours or more

at the end of a day or shift shall be paid a meal

allowance of $7.34per meal.

An employee who performs dirty work which a

supervisor and the employee agree is of an unusually

dirty or offensive nature shall be paid 54 cents per hour

while so engaged.

An employee who works in a compartment, space or

place, the dimensions of which necessitate the employee

working in a stooped or otherwise cramped position or

without proper ventilation, shall be paid 63 cents per

hour while engaged.

An employee working in cold cellars under

refrigeration shall be paid 54cents per hour while so

engaged.

Employees engaged in manually defrosting refrigeration

coils with hand tools in cold cellars shall be paid

18 cents per hour while so engaged.

Employees required to use explosive power tools shall

be paid $1.25 per day.

An employee who is required to open up any soil pipe,

waste or drain pipe conveying offensive materials shall

be paid an additional $6.13 per day or part of a day

An employee required to unload beer from steel-floored

railway cars or trucks at Carlton & United Breweries

(NSW) Pty Limited Depots shall be paid a Disability

Allowance of $2.16 per day on any day they are

required by the employer to actually perform the work.

A day worker, working overtime for more than1.5 hours

after working ordinary hours, shall be allowed a meal

break of twenty minutes before starting overtime work.

The meal break shall be paid on ordinary rates and a

further crib time of twenty minutes shall be allowed,

without deduction of pay, after each four hours of

overtime worked, provided the employee continues

work after such crib time.

(c)  Miscellaneous Allowances

An employee who is required to wear a uniform which

is provided by the company at all times while on duty

and keeps it in an acceptable state of repair and

cleanliness shall be paid an additional amount of $8.31

per week while attending for duty.

Where an employee is required to use their own car in

performance of their duties, the employee shall be paid

an allowance of 52 cents per kilometre for such usage.

(4)  Superannuation

For the purposes of the Superannuation Guarantee

legislation, the approved superannuation fund shall be

the Fosters Group Limited Superannuation Scheme (or

its successor).

(5)  Performance Measures

During the life of the Agreement we will

develop appropriate and accessible information

A performance payment system will provide for  lump

and assist people to understand the performance

sum payments as outlined below , based on achieving

measures.

budget targets for both Total Plant Controllable Costs

and production volume.

The site wide performance will be tabled and

discussed at each WOT meeting.

The performance payment system will provide for a

lump sum payment of $250.00 for each of the following

In order to be eligible for the performance

periods:

payment for a particular period employees must

1 July 2003 to 31 December 2003

be employed for all of the period concerned.

1 January 2004 to 30 June 2004

1 July 2004 to 31 December 2004 subject to achieving

the budget targets.

Criteria

Explanation

Weighting

Operational Fit

This means that the person to be assessed must be in the applicable

work group for that person to be included in the selection for forced

retrenchment from that work group.

Qualifications

Rating from 1 - 5

Review current qualifications in line with relevance to work area.

50%

Review current skills points.

Service

Rating from 1 - 5

Length of service recognises organisational knowledge, with the

20%

following bands:

0 to 4 yrs = 1,  5 to 9yrs = 2,  10 to 14yrs = 3,  15 to 19yrs = 4,  20 plus

yrs = 5

Attendance

Rating from 1 - 5

Using the number of occurrences of unscheduled absences during the

30%

last 3 years,   rank the individual according to the following bands:  0

to 4 absences = 5,

5 to 9 absences = 4,  10 to 14 absences = 3, 15 to 19 absences = 2,   20

plus absences = 1

(Unscheduled absences excludes annual leave, long service leave)

Each person in a work area team will be expected to

Explanation

account for a number of hours somewhere between

the minimum and maximum hours each year.

A year means a 12 month period (subject to the

operation of the agreement) commencing on the

A "swipe card" time recording system has been

anniversary of the starting date of this

installed to keep track of hours. Work area teams will

Agreement.

receive regular printouts of the data collected by the

system.

Work area teams will need this information to

help plan their rosters and call-ins etc.

Detailed information on individual’s hours will

be available to work area teams only.

Other Matters:

Explanation

NB: This section is only for people participating in the

SIP.

Superannuation:

Superannuation Contributions will remain based upon

the present calculation. This does not include an

Existing leave loading accruals plus por rata to

allowance for overtime, penalties, etc.

the date of changeover to the SIP will be paid.

Annual Leave Loadings:

The annual leave loading will be included in the

fortnightly payments.

Christmas Gift:

The Christmas Gift will be paid with the first pay in

Existing sick leave accruals will be paid to

December each year. It will be equivalent to two weeks

individuals at current rates at the

of the skills rate.

commencement of this arrangement or at a

mutually agreed time.

Sick Leave:

Employees will be entitled to paid leave of absence

when they cannot attend work due to genuine personal

illness. The sick employee will continue to be paid

fortnightly payments including service hours allowance.

Each case will be reviewed by the work area team. The

remaining employees will organise themselves to ensure

that the work normally done by the sick employee is

carried out in accordance with team responsibilities.

Workers’ Compensation

Payment for absences as a result of injury at work will

be based on the normal fortnightly payments including

service hours allowance. The remaining members of the

work area team will organise themselves to ensure that

the work normally done by the absent employee is

carried out in accordance with team responsibilities.

Public Holidays

Public Holidays will be worked or taken in

accordance with roster requirements and the relevant

payment is included in the SIP. Employees who are

not rostered on but work on a Public Holiday will

have the hours worked counted as part of the

"accounted hours".

Redundancy

Redundancy will be calculated based on skills rate.

This is consistent with pre-existing conditions.

Accrued Leave and Termination

For termination purposes, accrued annual and long

service leave will be calculated based on skills rates.

This is consistent with pre existing conditions.

Transfers and Service Hours Factor

Explanation

People transferring voluntarily will accept the service

hours factor in the new work area. Involuntary

transferees will receive the higher service hours factor

of the old and the new work areas.

Learning Time for Education and Skills Development

If learning time occurs when a person is

120 hours per year of accounted hours may be used for

rostered on and the work area team covers that

skills development leading to the gaining of

person without getting an additional person to

competencies.

cover, then the time does not come out of the

learner’s 120 hours.

Further skills development may be pursued by people

outside of their accounted hours.