BEFORE THE INDUSTRIAL RELATIONS COMMISSION

(613)

SERIAL C3979

ONESTEEL MANUFACTURING PTY LTD NEWCASTLE

ROD AND BAR AWARD

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

Application by OneSteel Manufacturing Pty Ltd.

(No. IRC 4232 of 2005)

Before The Honourable Mr Deputy President Harrison

17 August 2005

AWARD

Arrangement

PART A

Clause No. Subject Matter

1. Basic Wage

2. Rates of Pay

3. Tool Allowance

4. Leading Hands

5. Special Rates

6. Disability Rates

7. Hours of duty

8 Shift Work Allowances for Shift Workers

9. Saturday Rates for Shift Workers

10. Night Work for Day Workers and Day Shift Workers

11. Transfer of Day Workers from Day Work to Shift Work

12. Transfer of Shift Workers

13. Overtime

13A. Payment for Training

14 Requirements to Work in Accordance with the Needs of the Industry

15. Holidays

16. Sunday and Holiday Rates

17. Shift Workers Whose Ordinary Working Period Includes Sundays and Holidays as Ordinary Working Time

18. Maximum Payment

19. Employees Presenting Themselves for Work and Not required

20. Junior Labour - Unapprenticed

21. Sick Pay

21A. State Personal/Carer’s Leave Case - August 1996

22. Annual Leave

23. Days Added to Period of Annual Leave

24. Long Service Leave

25. Jury Service

26. Compassionate Leave

27. Contract of Employment

28. Automation

29. Redundancy

30 Retention of Rate

31. Definitions

32. Time and Payment of Wages

33. Union Delegates

34. Payroll Deduction of Union Dues

35. Procedures for Resolving Claims, Issues and Disputes

36. Apprentices

37. Enterprise Arrangements and Award Changes

38. Performance Payment Scheme

39. Supplementary Labour Rates of Pay

40. Transition Arrangements for Retiring Shiftworkers

41. Flexible Remuneration

42. Parental Leave

43. Wage Support For Extended Periods of Illness or Injury

44. Superannuation - Choice of Fund

44. No Extra Claims

45. Commitment to Ongoing Business Improvement

46. Area, Incidence and Duration

PART B

MONETARY RATES

Table 1 - Rates of Pay

Table 2 - Other Rates and Allowances

Appendix 1 - Payment for Training

Appendix 2 - Performance Payment Scheme

Part A

1. Basic Wage

This award, in so far as it fixes rates of wages, is made by reference and in relation to the adult basic wage as set out in Part B, Monetary Rates

2. Rates of Pay

(a) Adult employees: The minimum award rate of pay of any classification is subject to the other provisions of this award as set out in Table 1 - Wages, of Part B, Monetary Rates:

(b) Junior Employees - Unapprenticed - The minimum rate of pay shall, subject to the other provisions of this award be the following percentages of the 38-hour weekly wage for the classification "Labourer" appearing under the heading Table 1 - Wages, of the said Part B calculated to the nearest 10 cents any broken part of 10 cents, not exceeding 5 cents being disregarded.

Junior Employees - Unapprenticed Age	%
Under 17 years of age	45
At 17 and under 18 years of age	65
At 18 years and over	100

(c) In addition to the minimum rates prescribed by this clause employees receive payments pursuant to the applicable bonus scheme.

3. Tool Allowance

(a) Tradespersons referred to below, shall be paid as set out in Item 1 of the said Table 2 for supplying and maintaining tools ordinarily required in their performance of their work as tradespersons.

This allowance shall be paid for all purposes of this award.

(b) Tool allowance shall apply to apprentices as set out in Item 2 of Table 2

This allowance shall be paid for all purposes of this award.

(c) Where it is the practice as at 5th November, 1979, for the Company to provide all tools ordinarily required by mechanical tradespersons in the performance of their work, the Company may continue that practice and in that event the allowance prescribed in paragraph (a) hereof shall not apply to such tradespersons.

(d) Where it was the practice as at 14 December 1979 for the Company to provide all tools ordinary required by an apprentice in the performance of their work the Company may continue that practice and in that event the allowance prescribed in paragraph (b) hereof shall not apply to such apprentices.

(e) Notwithstanding paragraphs (a) and (b) hereof, an employer shall provide for the use of tradespersons all necessary power tools, special purpose tools, precision measuring instruments and for sheet metal workers, snips used in the cutting of stainless steel, monel metal and similar hard metals.

(f) Tradespersons and apprentices shall replace or pay for any tools supplied by their employer that are lost through their negligence.

(g) The Company shall make available for the use of tradespersons listed below such tools which they may be required to use to enable them to perform the work other than those contained in the list of tools which each tradesperson is required to provide for as set out in Industrial Commission Matters Nos. 205 and 319 of 1951 and 323 and 373 of 1952 and hereunder marked with the exhibit number set opposite each tradesperson classification:

Electrical Tradespersons

Exhibit Nos. 43&44

4. Leading Hands

Except where otherwise specifically provided for, employees appointed by the Company as leading hands shall be paid additional amounts as set out in Item 3 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

Column A - to apply from the first full pay period commencing on or after 1st September 2005.

Column B - to apply from the first full pay period commencing on or after 1st March, 2006.

Column C - to apply from the first full pay period commencing on or after 1st September, 2006.

Column D - to apply from the first full pay period commencing on or after 1st September, 2007.

5. Special Rates

In addition to the rates of pay prescribed in clause 2, Rates of Pay, the following special rates will apply:

(i) Mechanical and electrical tradespersons and maintenance non trades employees:

(a) Pressure welding certificates - Tradespersons required to obtain and use Department of Industrial Relations Pressure Welding certificates shall be paid as set out in Item 4 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(b) Electrical Trades Licences - An additional amount shall be paid per 38 hour week to an employee employed and working as an electrical tradesperson possessing the New South Wales Electrical Mechanics Licence issued by the appropriate Authority, as set out in Item 5 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.:

(c) Scaffolder's Licence- An employee who holds a Certificate of Competency under the Construction Safety Act, 1912, and who is required to obtain and use a Certificate of Competency as a Scaffolder under the Act shall, upon obtaining and using such certificate be paid as set out in Item 6 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

These allowances are not cumulative.

6. Disability Rates

In addition to the rates prescribed in clause 2, the following disability rates will apply:

(i) General:

(a) Hot Places - Electrical and mechanical tradespersons and maintenance non trades employees working for more than one hour on the shade in places where the temperature is raised by artificial means to between 46 degrees Celsius and 54 degrees Celsius & in places where the temperature exceeds 54 degrees Celsius shall be paid as set out in Item 7 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates. Where work continues for more than two hours in a temperature exceeding 54 degrees Celsius employees shall be entitled also to twenty minutes rest after every two hours’ work without deduction of pay. The temperature shall be decided by the supervisor of the work after consultation with the employees who claim the extra rate.

(b) Hot Work (For employees other than Crane Drivers and Front End Loader Drivers).- shall receive an allowance as set out in Item 8 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(1) Mill Furnaces - employees employed in connection with demolition of Mill Furnaces.

Hot work is done in places where the temperature raised by artificial means is above 49 degrees Celsius.

(c) Wet Places - Employees required to work in wet places where the depth of the water is such that the top of the hip boots supplied by the Company do not afford protection shall be paid an additional allowance as set out in Item 9 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(d) Wet Work - Mechanical tradespersons and maintenance non trade employees working in any place where their clothing or boots become saturated, whether by water, oil or otherwise shall receive an allowance as set out in Item 10 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates provided that this rate shall not be payable to an employee who is provided by the Company with protective clothing and/or footwear. Provided further, that any employee who becomes entitled to this extra rate shall be paid such extra rate for such part of the day or shift as they are required to work in wet clothing or boots.

(e) Dirty Work - Mechanical and electrical tradespersons and maintenance non trade employees engaged in work other than ship repair work which a supervisor and employee shall agree is of an unusually dirty or offensive nature shall receive an allowance as set out in Item 11 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates. In case of disagreement between the supervisor and employee or shop steward on the employee's behalf shall be entitled, within twenty-four hours to ask for a decision on the employee’s claim by the Company’s industrial officers. In such case a decision shall be given with forty-eight hours of its being asked for (unless that time expires on a non-working day, in which case it shall be given during the next ordinary working day) or else the said allowance shall be paid. Any dispute arising under this subclause as to whether the work is of an unusually dirty or offensive nature shall be determined pursuant to the Industrial Relations Act, 1996.

(f) Confined Spaces - Mechanical and electrical tradespersons and maintenance non trade employees working in confined spaces (as defined) shall receive an allowance as set out in Item 12 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

For the purpose of this clause "confined space" means a compartment, space or a place the dimensions of which necessitate an employee working in a stooped or cramped position or without proper ventilation and subject thereto shall include such space:

in other cases - inside boilers, steam drums, mud drums, furnaces, flues, combustion chambers, receivers, buoys, tanks, superheaters or economisers.

(g) Height Money - Mechanical tradespersons and maintenance non trade employees other than riggers and splicers engaged in the construction, erection, repair and/or maintenance of ships, steel frame buildings, bridges, gasometers or other structures at a height of 15 metres or more directly above the nearest horizontal plain shall receive an allowance as set out in Item 13 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(h) Oil Tanks - Mechanical tradespersons and maintenance non trade employees working on repairs in oil tanks shall receive an allowance as set out in Item 14 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates. provided that if an employee is so engaged for more than half of one day or shift they shall be paid the prescribed allowance for the whole day or shift.

(i) Explosive Power Tools - Employees required to use explosive powered tools shall receive an allowance as set out in Item 15 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(j) Slag Wool - Mechanical tradespersons and maintenance non-trades persons handling loose slag wool, loose insulwool or other loose material of a like nature used for providing insulation against heat, cold or noise shall when employed on ship repairing or on construction, repair or demolition of furnaces, walls, floors, and/or ceilings, shall receive an allowance as set out in Item 16 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(k) Demolition - Employees engaged inside stacks on the demolition of brickwork shall receive an allowance as set out in Item 17 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(l) An employee when painting internal surfaces of salt water pipe line shall receive an allowance as set out in Item 18 Disability Rates of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(m) Smoke Boxes, etc. - Mechanical tradespersons or maintenance non trades employees working on repairs to the smoke box uptake, funnel, flue, furnace or combustion chamber of marine type boilers, or on repairs to smoke boxes, fire boxes, furnaces or flues of other types of boilers shall receive an allowance as set out in Item 19 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(ii) Electrical tradespersons:

(a) High Places -

(1) Electrical tradespersons engaged in the construction, erection, repair and/or maintenance of steel frame buildings, bridges, gasometers or other structures at a height of 15 metres or more directly above a substantial level surface shall receive an allowance as set out in Item 20 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(2) Electrical tradespersons working on a building or structure in a bosun’s chair or swinging scaffold at a height of 15 metres or more directly above a substantial level surface shall receive an allowance as set out in Item 21 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(b) Toxic Substances -

(1) Electrical tradespersons required to use toxic substances shall be informed by the employer of the health hazards involved and instructed in the correct and necessary safeguards which must be observed in the use of such materials.

(2) Electrical tradespersons using such materials will be provide with and shall use all safeguards as are required by the appropriate Government Authority.

(3) Electrical Tradespersons using toxic substances or materials of a like nature, where such substances or materials are used in quantities of 0.5 kg or over, shall receive an allowance as set out in Item 22 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

Electrical tradespersons working in close proximity to employees so engaged so as to be affected by the use of such substances or materials shall receive an allowance as set out in Item 22 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(4) For the purpose of this subclause toxic substances shall include epoxy based materials or materials which include or require the addition of a catalyst hardener and reactive additives or two pack catalyst system shall be deemed to be materials of a like nature.

(iii) Maintenance non trades employees:

(a) Spray Painting - An employee engaged on all spray painting carried out in other than a properly constructed booth, approved by the Department of Industrial Relations, shall receive an allowance as set out in Item 23 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(b) Obnoxious Substances:

(1) An employee engaged in either the preparation and/or the application of epoxy based materials or materials of a like nature shall receive an allowance as set out in Item 24 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates..

(2) In addition, an employee applying such material in buildings which are normally air conditioned shall receive an allowance as set out in Item 25 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates. for any time worked when the air conditioning plant is not operating.

(3) When there is an absence of adequate natural ventilation the employer shall provide ventilation by artificial means and/or supply an approved type of respirator and in addition protective clothing shall be supplied where recommended by the appropriate Government authority.

(4) Employees working in close proximity to employees so engaged shall receive an allowance as set out in Item 26 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(5) For the purpose of this clause all materials which include or required the addition of a catalyst hardener and reactive additives or two pack catalyst system shall be deemed to be materials of a like nature.

(iv) Rates not Subject to Penalty Additions

The disability rates herein prescribed shall be paid irrespective of the times at which work is performed and shall not be subject to any premium or penalty additions.

(v) Disability Rates Not Cumulative

Where more than one of the disabilities entitling an employee to extra rates exist on the same job, the employer shall be bound to pay only one rate, namely, the highest for the disabilities so prevailing: Provided that this subclause shall not apply to confined spaces, dirty work, height money, hot places or wet places, the rates for which are cumulative.

7. Hours of Duty

(i) Full-time Employees

Ordinary working hours shall be an average of thirty-eight hours per week over the full cycle of the relevant work roster. Ordinary working hours shall not exceed:

(a) twelve during any consecutive twenty-four hours; or

(b) 152 in twenty-eight consecutive days

except in the case of rostering arrangements which provide for the weekly average of 38 ordinary hours to be achieved over a period which exceed 28 consecutive days.

(ii) Part-time Employees

Ordinary working hours shall be an average less than thirty-eight hours per week over the full cycle of the relevant work roster as agreed and set out in writing between the employee and the Company.

(iii) Day Workers -

(a) Ordinary working hours shall be worked Monday to Friday, inclusive, between the hours of 6.00 am and 6.00 pm each day. Provided that Day Workers may commence their ordinary hours prior to 6.00 am if agreement has been reached between the Company and the employees, and relevant union.

(b) Each day, Monday to Friday, inclusive, thirty minutes between the hours of 10.00 am and 2.30 pm shall be allowed to day workers for a meal.

(iv) Shift Workers -

Twenty minutes shall be allowed to shift workers each shift for crib which shall be counted as time worked. In the case of 12 hour shift systems, two twenty minute crib breaks will be taken approximately 4 hours apart. Each crib break will be taken in accordance with the needs of the operation and will be counted as time worked.

(v) 38 Hour Week Rostered Days Off (RDOs) -

The method of taking RDOs in a department or section of a department may be varied by agreement subject to the following:

(a) Arrangements must be in accordance with the operational and service needs of the department.

(b) A maximum of five RDOs can be accrued and taken at any one time.

(c) Where an employee elects to accrue an RDO, no payment will apply for the designated day and single time payment will apply when the employee takes the RDO.

(d) Employees required to work on an RDO and who does not elect to accrue the RDO in accordance with subclause (v) (c) above will be paid the appropriate rate in accordance with clause 13, Overtime.

8. Shift Work Allowances for Shift Workers

(i) Subject as in the award otherwise provided, shift workers shall be paid, in addition to the rates payable under this award, shift work allowance as follows:

Column A - to apply from the first full pay period commencing on or after 1st September 2005.

Column B - to apply from the first full pay period commencing on or after 1st March, 2006.

Column C - to apply from the first full pay period commencing on or after 1st September, 2006.

Column D - to apply from the first full pay period commencing on or after 1st September, 2007.

(a) Shift Workers whilst working rotating shift (day shift, afternoon shift, night shift), with regular weekly changes - at the rate specified below per 38 hour week , as set out in Item 27 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates in respect of all shifts worked.

Provided that each such rotating shift worker so engaged under a roster system which does not provide at least one-third of their working time in a full cycle of the roster being on day shift, shall be paid an additional amount as set out in Item 28 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates. per 38 hour week, in respect of each of any number of afternoon and/or night shifts more than two-thirds of their working time in the roster worked by the employee:

Provided further that working time on day shift shall if necessary, include shifts rostered off on day shift not exceeding an average over the full cycle of the roster of one per 38 hour week.

(b) Shift workers whilst working shift work which involves regular weekly changes as set out in Item 29 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.:

(c) Adult shift workers whilst working shift work on shift systems as set out in Item 30 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(1) night shift, afternoon shift;

(2) night shift only;

(3) afternoon shift only;

per 38 hour week.

(d) Shift workers who work any afternoon or night shift other than under the shift systems set out on paragraphs (a), (b), and (d) of this subclause, and are not paid in respect of any day shift worked shall be paid as set out in Item 31 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

for each afternoon or night shift worked.

(ii) "Night Shift" means any shift finishing subsequent to midnight and at or before 8 am, or in the case of 12 hour shift system, subsequent to 8 pm. and at or before 8 am.

9. Saturday Rates for Shift Workers

Shift workers for their ordinary shift performed on Saturday shall be paid at the rate of time and one half.

10. Night Work for Day Workers and Day Shift Workers

(i) Subject to clause 18, Maximum Payment, of this award, but otherwise not withstanding anything contained herein:

(a) a day worker is required in lieu of ordinary day work,

(b) a day shift worker who is required in lieu of a day shift on which they would ordinarily be rostered,

to work at night for periods of not less than eight hours or less than five consecutive nights or on less than four consecutive nights when the fifth night is their 38 hour week rostered off night shall be paid at the rate of time and one half of the ordinary rate of pay under clause 2, Rates of Pay , of this award except:

(d) in respect of any night in respect of which they have not been given at least 48 hours’ notice,

when the employee shall be paid at overtime rates for day workers. No shift allowance is payable in respect of night work under this clause.

(ii) In this clause "night" means any hours between 4 pm. and 8 am., or in the case of 12 hour shift system, between 8 pm and 8 am, and "day shift worker" means a shift worker employed on a shift system involving day shift only.

11. Transfer of Day Workers from Day Work to Shift Work

Day workers may be employed as and become shift workers for a period of not less than five shifts or not less than four shifts when the fifth shift is their 38 hour week rostered day off shift and paid accordingly.

Provided that an employee shall be paid at overtime rates for any shift upon which they have not been given at least 48 hours’ notice.

12. Transfer of Shift Workers

A shift worker who is required to work on a shift other than the shift on which they would ordinarily be rostered shall be paid at overtime rates for any such shift in respect of which they have not been given at least 48 hours’ notice. This provision shall not apply when the employee reverts to the shift on which they would ordinarily have been rostered.

13. Overtime

(i) Day Workers - Day workers for all time worked in excess of or outside the ordinary working hours and times prescribed by this award shall be paid at the rate of time and one half for the first two hours and at the rate of double time thereafter.

(ii) Shift Workers - Shift workers for all time worked -

(a) in excess of the ordinary shift hours prescribed by this award; or

(b) on more than eleven shifts in twelve consecutive days; or

(d) in excess of five-and-one-half hours without a crib break;

shall be paid at the rate of time and one half for the first two hours and at the rate of double time thereafter.

This subclause shall not apply when the time worked -

(1) by arrangement between the employees themselves; or

(2) for the purpose of effecting the customary rotation of shifts.

(iii) General -

(a) When overtime is necessary it shall, wherever reasonably practical, be so arranged that employees have at least eight consecutive hours off duty between the work of successive days. An employee who works so much overtime between the termination of their ordinary work on one day and the commencement of their ordinary work on the next day that they have not had at least eight consecutive hours off duty between those times shall, subject to this subclause, be released after completion of such overtime until they have had eight consecutive hours off duty without loss of pay for ordinary working time occurring during such absence. If on the instructions of the Company such an employee resumes or continues working without having had such eight consecutive hours off they shall be paid at double rates until they are released from duty for such period and then shall be entitled to be absent until they have had eight consecutive hours off duty, without loss of pay for ordinary working time occurring during such absence. Where immediately after taking an eight-hour rest period pursuant to this subclause, an employee is required to report for work at other than their ordinary day or shift commencing time and reasonable means of transport are not available to them, the Company shall convey them or supply them with conveyance to the works.

(b) A day worker, required to work on a Saturday, Sunday, a 38 hour week rostered day off or holiday, or a Monday to Saturday shift worker is required to work on a Sunday, a 38 hour week rostered day off or a holiday shall be paid for a minimum of four hours’ work.

Provided that an employee recalled from their home to work overtime shall be paid for a minimum of four hours’ work.

Where the actual time worked is of shorter duration than the applicable minimum specified in this paragraph, the working period shall not be regarded as overtime for the purpose of paragraph (a) in this subclause.

(c) A fraction of a tenth of an hour overtime shall count as 3 tenths of an hour if more than five minutes thereof have been worked.

(d) Where an employee working overtime finishes work at a time when reasonable means of transport are not available to them the Company shall -

(1) within a reasonable time convey them or supply them with conveyance to -

(A) a reasonable distance from the employee's home; or

(B) a place to which they usually travel by public conveyance when returning home from work; or

(C) a place from which they can, within a reasonable time, obtain public conveyance to a reasonable distance from their home or the place to which they usually travel by public conveyance when returning home from work; or

(2) pay the employee their current rate of pay for the time reasonably occupied on reaching their home.

(e) If an employee, pursuant to notice, has provided a meal and is not required to work overtime or is required to work for less than one-and-a-half hours they shall be recompensed suitably for the meal which they have provided but which is surplus.

(f) An employee required to continue at work on overtime for more than one-and-a-half hours after their ordinary ceasing time without having been notified before leaving their work on the previous day that they would be required to work overtime shall, at the employee’s option:

(1) be provided, free of cost, with a suitable meal and another meal for each subsequent meal break into which the work extends; or,

(2) be paid the amount as set out in Item 32 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(g) An employee who is recalled to work from their home to work overtime shall, at the employee’s option:

(1) be provided, free of cost, with a suitable meal for each normal meal break falling during the overtime for which they were called out; or

(2) be paid the amount as set out in Item 33 of Table 2 - Other Rates and Allowances, of Part B, Monetary Rates.

(iv) For the purpose of this clause a recall from home to work overtime takes place when an employee is notified at home of the requirement to return to work.

13A. Payment for Training

The Parties have had discussions about appropriate payments for employees undertaking training and have agreed to the arrangements set out in Appendix 1.

14. Requirements to Work in Accordance With the Needs of the Industry

(i) For the purpose of meeting the needs of the industry the Company may require an employee to work reasonable overtime, including work on Sunday and a holiday, at the rate prescribed by this award and, unless reasonable excuse exists, the employee shall work in accordance with such requirement.

(ii) Subject to clause 11, Transfer of Day Workers from Day Work to Shift Work, and clause 12, Transfer of Shift Workers, of this award, for the purpose of meeting the needs of the industry, the Company may require any employee to transfer from one system to another system of work prescribed in this award at the rate applicable thereto, and unless reasonable cause exists, an employee shall transfer in accordance with such requirement.

15. Holidays

(i) The days on which New Year’s Day, Australia Day, Good Friday, the Saturday following Good Friday, Easter Monday, Anzac Day, the local Eight Hour Day, Queen’s Birthday, Christmas Day and Boxing Day are observed and special days appointed by proclamation as public holidays throughout the State shall be holidays and day workers and Monday to Saturday shift workers not required to work on a holiday shall be paid for the holiday at the ordinary rates of pay under clause 2, Rates of Pay, clause 3 Tool Allowance, clause 4 Leading Hands, clause 5, Special Rates and clause 35, Apprentices of this award.

(ii) In addition to payments outlined in (i) above, employees shall also be paid bonus under the applicable bonus scheme.

(iii) In addition to the public holidays prescribed in subclause (i) of this clause, one additional public holiday shall apply to an employee on weekly hire on a day mutually agreed between the parties, or failing agreement as determined by the Industrial Relations Commission of New South Wales.

(iv) This provision for payment does not apply to:

(a) employees whose rostered shift falls on a holiday (subject to the provisions of paragraph (b) of subclause (ii) of clause 23, Days Added to the Period of Annual Leave of this Award).

(b) employees absent without leave or reasonable excuse on the working day preceding or the working day succeeding a holiday.

16. Sunday and Holiday Rates

Employees shall be paid at the rate of double time for all work done on Sundays and at the rate of double time and one half for all work done on the holidays prescribed by this award.

17. Shift Workers Whose Ordinary Working Period Includes Sundays and Holidays as Ordinary Working Days

No working period shall include Sundays and holidays as ordinary working days except shift workers at -

(a) No. 2 Bar Mill;

(b) Rod Mill;

(d) in all mills - heaters, assistant heaters, ashmen;

(e) Employees required for repairs, alterations and/or renewals;

(f) Such labour as is necessarily incidental to the above (a) to (e).

18. Maximum Payment

(i) Shift allowances and disability rates shall not be subject to any premium or penalty additions.

(ii) All rates prescribed by this award shall not exceed double the rate prescribed by:

(a) clause 2, Rates of Pay;

(b) clause 3, Tool Allowance;

(d) clause 5, Special Rates; and,

(e) clause 35, Apprentices

provided that this subclause shall not apply to any excess due to payments arising from;

(f) clause 6, Disability Rates ;

(g) clause 8, Shift Work Allowances for Shift Workers; or

(h) clause 16, Sunday and Holiday Rates (in respect of work done on holidays).

19. Employees Presenting Themselves for Work and Not Required

Subject to the provisions of clause 27, Contract of Employment, of this award, an employee who presents for ordinary work and without notice is instructed that they will not be required, shall be paid at least four hours’ pay.

20. Junior Labour - Unapprenticed

(i) Junior Labour may be employed at work suitable for juniors according to their age.

(ii) In cases where a junior is capable of performing and does work which ordinarily is not regarded as suitable for a person under the age of 18 years they shall be paid the adult rate whilst so engaged.

(iii) No junior under the age of 18 years may be required to work overtime unless they are willing to do so.

(iv) An unapprenticed junior required to work under circumstances which would entitle an adult to payment under clause 5, Special Rates and clause 6, Disability Rates of this award, shall be allowed the same addition as the adult.

(v) Every unapprenticed junior shall give at least a fortnight’s notice of their change of year of age.

21. Sick Pay

(i) An employee who is unable to attend for duty during their ordinary working hours by reason of personal illness or personal incapacity not due to their own serious and wilful misconduct shall be entitled to be paid at ordinary time rates of pay and in addition the bonus payment which would have been payable if they had attended for duty, for the time of such non-attendance subject to the following:

(a) the employee shall not be entitled to be paid leave of absence for any period in respect of which they are entitled to workers’ compensation;

(b) the employee shall, within twenty-four hours of the commencement of such absence, inform the Company of their inability to attend for duty and, as far as possible, state the nature of the illness or incapacity and the estimated duration of the same;

(c) the employee shall prove to the satisfaction of the Company, or, in the event of a dispute, the Industrial Relations Commission of New South Wales, that they are or were unable, on account of such illness or incapacity, to attend for duty on the day or days for which payment under this clause is claimed;

(d) the employee shall not be entitled in respect of any year of continued employment to sick pay for more than the number of ordinary working hours specified in paragraph (e) of this subclause. Any period of paid sick leave allowed by the Company to an employee in any such year shall be deducted from the period of sick leave which may be allowed or may be carried forward under this award in or in respect of the earliest year of employment for which the employee has an accumulated or accrued right;

(e) the number of ordinary working hours referred to in paragraph (d) of this subclause shall be:

(1) in the case of an employee with less than 1 year’s continued employment: 40

(2) in the case of an employee with 1 or more year’s continued employment but less than ten year’s continued employment: 64

(3) in the case of an employee with 10 or more year’s continued employment: 80

(ii)

(a) The rights under this clause shall accumulate from year to year so long as the employment continues with the Company, whether under this or any award, so that any part of the number of ordinary working hours specified in paragraph (e) of subclause (i), of this clause, which has not been allowed in any year may be claimed by the employee and shall be allowed by the Company, subject to the conditions prescribed by this clause, in a subsequent year of such continued employment. Any rights which accumulate pursuant to this subclause shall be available as follows:

(1) to any employee entering employment of the Company on or after 1st January 1986 - for a period of 16 years, but for no longer, from the end of the year in which they accrued;

(2) to any employee who entered their current employment with the Company before 1st January 1986 -

(A) during the period between the 18th and 31st December 1985 for a period of 14 years, but for no longer, from the end of the year in which they accrued;

(B) during the transition year - for a period of 15 years but no longer, from the end of the year in which they accrued;

(C) during the first year of employment immediately following the transition year - for a period of 16 years, but for no longer, from the end of the year in which they accrued.

(b) For the purposes of this subclause "transition year" shall mean in respect of an employee whose current employment with the Company commenced before 1st January 1986, the year of their employment which commenced during 1986.

(iii) In the case of an employee who otherwise is entitled to payment under this clause but who, at the time of the absence concerned, has not given three months’ continuous service in their current employment with the Company, the right to receive payment shall not arise until they have given such service.

(iv) For the purpose of this clause continuous service shall be deemed not to have been broken by -

(a) any absence from work on leave granted by the Company; or

(b) any absence from work by reason of personal illness, injury or other reasonable cause, proof whereof shall, in each case be upon the employee;

provided that at any time so lost shall not be taken into account in computing the qualifying period of three months.

(v) Service before the date of coming into force of this award shall be counted as service for the purpose of qualifying thereunder.

(vi) In this clause "ordinary working hours" shall include working hours on shifts known as compulsory roster shifts, ring roster shifts or 21st shifts which are paid overtime rates.

21A. State Personal/Carer’s Leave Case - August 1996

(i) Use of Sick Leave

(a) An employee, other than a casual employee, with responsibilities in relation to a class of person set out in subparagraph (2) of paragraph (c), 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 in clause 21, Sick Pay, 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 either 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.

(1) the employee being responsible for the care of the person concerned; and

(2) the person concerned being:

a spouse of the employee; or

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

a child or an adult child (including an adopted child, a step child, 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

a same sex partner who lives with the employee as the de facto partner of that employee on a bona fide domestic basis; or

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, whether practicable, give the employer 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 employer by telephone of such absence at the first opportunity on the day of absence.

(ii) Unpaid Leave for Family Purpose

(a) An employee may elect, with the consent of the employer, to take unpaid leave for the purpose of providing care and support to a member of a class of people set out in the subparagraph (2) of paragraph (c) of subclause (1) who is ill.

(iii) Annual Leave

(a) An employee may elect with the consent of the employer, subject to the Annual Holidays Act 1944, to take annual leave not exceeding five 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 employer may agree to defer payment of the annual leave loading in respect of single day absences, until at least five consecutive annual leave days are taken.

(iv) Time Off in Lieu of Payment for Overtime

(a) An employee may elect, with the consent of the employer, to take time off in lieu of payment for overtime at a time or times agreed with the employer within 12 months of the said election.

(b) Overtime taken as time off during ordinary time hours shall be taken at the ordinary time rate, that is an hour for each hour worked.

(c) If, having elected to take time as leave in accordance with paragraph (a) of this subclause, the leave is not taken for whatever reason payment for time accrued at overtime rates shall be made at the expiry of the 12 month period or on termination.

(d) Where no election is made in accordance with the said paragraph (a), the employee shall be paid overtime rates in accordance with the award.

(v) Make-up Time

(a) An employee may elect, with the consent of the employer, 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 employer, 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.

(vi) Rostered Days Off

(a) An employee may elect, with the consent of the employer, to take a rostered day off at any time.

(b) An employee may elect, with the consent of the employer, to take rostered days off in part day amounts.

(c) An employee may elect, with the consent of the employer, 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 employer and employee, or subject to reasonable notice by the employee or the employer.

(d) This subclause is subject to the employer informing each 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(s) to participate in negotiations.

22. Annual Leave

(i) Day Workers and Monday to Saturday Shift Workers:

For annual leave provisions see Annual Holidays Act, 1944 (NSW).

(ii) Shift workers under clause 17, Shift Workers Whose Working Period Includes Sundays and Public Holidays as Ordinary Working Days, of this award:

(a) In addition to the benefits provided by section 3 of the Annual Holidays Act, 1944 (NSW), with regard to an annual holiday of four weeks, and employee who, during the year of their employment with the Company with respect to which they become entitled to the said annual holiday of four weeks, gives service to the Company as a seven-day shift worker under the said clause 17, shall be entitled to the additional leave as hereunder specified:

(1) if during the year of their employment they have served the Company continuously as such seven-day shift worker the additional leave with respect to that year shall be one week;

(2) subject to subparagraph (4), of this paragraph, if during the year of their employment, they have served for only portion of it as such seven-day shift worker the additional leave shall be one day for every thirty-three ordinary shifts worked as a seven-day shift worker;

(3) subject to subparagraph (4), an employee shall be paid for such additional leave at the annual leave rate of pay, for the number of ordinary hours of work which such employees would have been rostered for duty during the period of additional leave had such employee not been on such additional leave;

(4) where the additional leave calculated under this subclause is or includes a fraction of a day such fraction shall not form part of the leave period and any such fraction shall be discharged by payment only;

(5) in this clause reference to one week and one day shall include holidays and non-working days.

(b) Where the employment of a worker has been terminated and they thereby becomes entitled under section 4 of the Annual Holidays Act, 1944 (NSW), to payment in lieu of an annual holiday with respect to a period of employment, they also shall be entitled to an additional payment of three and one half hours at the annual leave rate of pay with respect to each twenty-one shifts or service as such period of employment.

(c) A seven-day shift worker under this subclause shall be paid at the appropriate rate for any ‘compulsory roster’ shift, also known as a ‘twenty-first’ shift, which they would have worked during this period of annual leave had they not been on annual leave.

(iii) Monday to Saturday shift workers who are regularly rostered for duty for Saturdays as ordinary working days.

In addition to the benefits provided by section 3 of the Annual Holidays Act 1944 (NSW) with regard to an annual holiday of four weeks, an employees who is during the year of their employment with the Company with respect to which they become entitled to the said annual holiday of four weeks, gives service to the Company as a Monday to Saturday shift worker who is regularly rostered for duty on Saturdays as ordinary working days, shall be entitled to the additional leave as hereunder specified:

(1) For every thirteen Saturdays upon which the employee worked as a ordinary shift as a Monday to Saturday Shift worker who is rostered for duty on Saturdays as ordinary working days the additional leave with respect to that year shall be one day.

(2) Where the additional leave calculated under this subclause is or includes a fraction of a day such fraction shall not form part of the leave period and any such fraction shall be discharged by payment only.

(iv) All employees - Annual Leave Payment

(a) In respect of a period of annual leave an employee shall be paid the sum of -

(1) the employee's award rate of pay for ordinary time at the commencement of their annual leave as prescribed by clause 2, Rates of Pay, clause 3, Tool Allowance, clause 4 Leading Hands and clause 5 Special Rates; and,

(2) the employee's rate of bonus payable at the commencement of their annual leave pursuant to the bonus scheme applicable to them.

plus the higher of:

(3) a loading of 20 percent; or,

(4) the shift work allowances pursuant to clause 8, Shift Work Allowances for Shift Workers, and the weekend penalty rates pursuant to clause 9, Saturday Rates for Shift Workers, and (in respect of Sundays only) clause 16, Sunday and Holiday Rates, of this award, that would have been payable to them in respect of ordinary time during the period of annual leave had they not been on annual leave.

(b) The loading prescribed by this subclause shall apply to payment in lieu of a fully due annual holiday on termination of employment, but shall not apply to proportionate annual holiday payment on termination of employment.

(v) Annual leave transition arrangements for employees transferring between full time and part time work shall be as prescribed in the Industrial Relations Act, 1991.

23. Days Added to the Period of Annual Leave

(i) In the case of an employee who was, at the commencement of their annual leave or long service leave, employed as a seven-day shift worker under clause 17, Shift Workers Whose Period Includes Sundays and Holidays as Ordinary Working Days, of this award, one day shall be added to their annual leave period or long service leave period respectively, in respect of any holiday prescribed by this award which falls within the period of annual leave and long service leave to which they are entitled under this award.

(ii) An employee who is rostered off duty on a day which is a holiday prescribed by this award and who is not required to work on that day shall:

(a) have one day added to their annual leave period; or

(b) by mutual consent, be paid, in the pay for the period in which the holiday falls, for the holiday at the rate payable pursuant to subclause (i) of clause 15, Holidays, of this award.

This subclause shall not apply when the holiday falls:

(1) on a Saturday or Sunday except in the case of employees employed as seven-day shift workers under clause 17, Shift Workers Whose Working Period Includes Sundays and Holidays as Ordinary Working Days, of this award, or;

(2) on a Sunday in the case of employees employed as Monday to Saturday shift workers who are regularly rostered for duty on Saturdays as ordinary working days.

(iii) Any days added in the case of annual leave shall be paid for at the annual leave rate of pay and in the case of long service leave shall be paid for at the long service leave rate of pay.

(iv) Any day or days added in the case in accordance with subclauses (i) or (ii) of this clause, shall be the working day or working days immediately following the period of annual leave or long service leave respectively, to which the employee is entitled under clause 22, Annual Leave, or clause 24, Long Service Leave of this award.

(v) For the purpose of subclause (iv) of this clause, working days shall be:

(a) in the case of an employee who, at the commencement of their period of annual leave or long service leave, as the case may be, was employed as a day worker - any day of the week including a day on which the employee concerned would have been rostered off duty if they were not on annual leave or long service leave, but excluding a Saturday, a Sunday or a holiday prescribed by this award.

(b) in the case of an employee who, at the commencement of their period of annual leave or long service leave as the case may be, was employed as a Monday to Saturday shift worker - any day of the week other than Sunday or a holiday prescribed by this award including a day on which the employee concerned would have been rostered off duty if they were not on annual leave or long service leave.

(c) in the case of an employee who, at the commencement of their period of annual leave or long service leave, as the case may be, was employed as a seven-day shift worker, under the said clause 17, of this award - any day of the week including a day on which the employee concerned would have been rostered off duty if they were not on annual leave or long service leave.

(vi) Where the employment of a worker has been terminated and they thereby becomes entitled under section 4 of the Annual Holidays Act, 1944, to payment in lieu of an annual holiday with respect to a period of employment they also shall be entitled to an additional payment for each day accrued to them under subclause (ii) of this clause, at the annual leave rate of pay.

(vii) An employee who is employed as a seven-day shift worker under the said clause 17, who -

(a) has a day added to their annual leave or long service leave pursuant to subclauses (i) and (ii) of this clause, and

(b) such a day falls on a holiday prescribed by clause 15, Holidays, of this award, on which the employee would have been rostered to work an ordinary shift were it not for their entitlement to an added day,

shall be paid for such day, in addition to their entitlement under subclause (iii) of this clause, at the rate prescribed by subclause (i) of the said clause 15, Holidays, of this award.

24. Long Service Leave

(i) The terms of the Long Service Leave Act 1955 shall apply except for the provisions prescribed below:

(a) for all service after 1 July 2001, long service leave will accrue at the rate of 13 weeks for each 10 years of service.

(b) from 14th December 2001, pro-rata long service leave will be able to be accessed or will be paid out on resignation or termination of the employee, other than in circumstances of summary dismissal, after 5 years continuous service.

(ii) The award rate (basic wage and margin) element of ordinary pay for long service leave shall be either:

(a) that determined in accordance with the Long Service Leave Act 1955; or

(b) that applicable to the employee at the commencement of their long service leave entitlement

whichever is the greater.

(iii) Long service leave shall be paid at the employee’s ordinary time earnings for the shift roster that the employee would have worked had it not been for the long service leave. This means whilst employees are on long service leave they will be paid their ordinary time rate of pay (award and over-award), shift & weekend penalties and compulsory rostered overtime (ie. such rostered overtime which is currently recognised for the purposes of annual leave, sick leave, superannuation, etc). Payment will also include public holidays penalties provided that the employee would have been required to work the public holiday and the period of long service leave is not subject to added days for such public holiday (eg as provided under NSW LSL Act).

To be eligible to be paid long service leave as per the shift roster, an employee must have been in a permanent shift position for a period of at least twelve months at the time of taking long service leave.

(iv) Where payment is made in lieu of accrued long service leave such as on termination of employment, payment shall be at the employee's ordinary time rate of pay (ie excluding compulsory rostered overtime, shift and weekend penalty rates).

(v) An employee shall be entitled to have all days which are prescribed as holidays by clause 15, Holidays, of this award treated as days appointed by the Governor a public holidays for the purpose of the application to them of section (4A) of the Long Service Leave Act, 1955.

25. Jury Service

An employee required to attend for jury service:

(i) during their ordinary hours; or

(ii) immediately following an ordinary night shift or immediately preceding an ordinary afternoon shift on which the employee is rostered to work and, as a result of attending jury service, is not reasonably able to report for work on the night shift or afternoon shift, as the case may be:

(a) shall receive the actual wage that they would have received had they worked their normal shift\s. Employees on jury service who are not empanelled and dismissed for the rest of the day must report for work.

(b) an employee summoned for jury duty shall notify the Company as soon as possible of the date upon which they are required to attend and shall keep the Company informed of the likely duration of their attendance.

26. Compassionate Leave

An employee shall, on production of acceptable proof of the death of a close relative (including a defacto spouse), be entitled to compassionate leave without deduction from ordinary wages for a period of up to three (3) days, as is reasonable in the circumstances. A period of up to 5 days may be approved where interstate travel is required. Approval of compassionate leave is the responsibility of the Mill Manager, who will use discretion depending upon the circumstances.

Compassionate leave may be taken in conjunction with other leave available under sub-clauses (ii), (iii), (iv), (v) and (vi) of clause 23A, Personal/Carer's Leave. In determining such a request the employer will give consideration to the circumstances of the employee and the reasonable operational requirements of the business.

In addition to their ordinary-time work rate of pay, the employee shall be paid the amount of bonus they would have otherwise received during ordinary working hours.

Compassionate leave will not be granted if the period of leave coincides with any other period of paid leave.

27. Contract of Employment

(i) Any employee not specifically engaged as a casual employee will be deemed to be employed by the week, subject to subclause (v).

(ii) Part time employees are employees who work on a part time basis for a constant number of hours which average less than 38 per week. Part time employees receive all entitlements under the award on a pro rata basis.

(iii) Casual employees are engaged and paid as such and their employment may be terminated upon one hour's notice. The terms and conditions of their employment are further defined by agreements in writing between the employer and employee.

(iv) A casual employee shall be paid at the ordinary rate of pay arising from clause 2, Rates of Pay, clause 3 Tool Allowance, clause 4 Leading Hands and clause 5 Special Rates plus a loading of twenty (20) percent. This loading shall be paid in lieu of all other entitlements under this award with the exception of those arising from clause 6, Disability Rates, clause 8 Shift Work Allowance for Shift Workers, clause 9, Saturday Rates for Shift Workers, clause 13, Overtime (with respect to hours worked on any working day in excess of those outlined in the agreement giving rise to the casual employment) and clause 16, Sunday and Holiday Rates.

(v) Employment of employees on probation for the first 12 weeks shall be from day to day at the weekly rate fixed determinable at a day's notice for the first four weeks and on a week to week basis thereafter. This probationary period shall not apply where full time or part time employment follows a period of engagement as defined in clause 39, Supplementary Labour - Rates of Pay.

(vi) Training and grading structures have been developed in accordance with the needs of the department/Steelworks and employees are paid for completion of a level in the model relevant to their department. A level is completed only after an employee has been certificated in all the skills for the relevant level and those skills have been applied within the department.

(vii) Participation in training for progression will be voluntary for employees in the Company employ as at 22/6/89.

(viii) Existing employees who elect not to participate in training for progression will:

(a) slot into a level in a new model and receive payment in accordance with clause 30, Retention of Rate.

(b) train other employees in the skills the employee has acquired.

(ix) Employees commencing on or after 22/6/89 will be required to participate in training, including training for progression, in accordance with their training and grading structures.

(x) Employees will be required to complete as much of a whole job as it safe, practical and legal.

(xi) Employees will work flexibly and utilise certificated and non-certificated skills possessed and recognised.

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

(xiii) Employees shall perform such work as the Company reasonably shall, from time to time, require and an employee not attending for or not performing their duty shall, except as provided by clause 21, Sick Pay, of this award, lose their pay for the actual time of such non-attendance or non-performance.

(xiv) Subject as aforesaid employment shall be terminated by a week's notice on either side given at any time during the week or by payment or forfeiture of a week's wages, as the case may be. Where an employee has given notice or has been given notice by the Company, they shall, upon request, be granted leave of absence without pay for one day or shift during the period of notice in order to look for alternative employment.

(xv) Notwithstanding the provisions of this clause, the Company shall have the right to stand an employee down for refusal of duty, malingering, inefficiency, neglect of duty, or misconduct on the part of the employee and to deduct payment for any day or portion of a day during which the employee is so stood down, provided that:

(a) No employees be stood down before an adequate investigation of the circumstances of the alleged offence has been made, or, except in the case of a group standing down, before the employee has had an opportunity to state their case and adduce witnesses to the facts.

(b) Where the superintendent is on duty in the department to which the employee is attached any decision as the standing down of the employee shall be made by the superintendent.

(c) Where no superintendent is on duty in the department a supervisor may stand an employee down for a period not exceeding the balance of the shift, where the employee refuses duty or where the supervisor reasonably is of the opinion that the continued presence of the employee on the plant would be likely to:

(1) constitute a hazard whether to the employee themself or to other employees or to plant and equipment; or

(2) interfere with the normal and orderly functioning of the Company's operations; or

(3) be prejudicial to discipline.

(d) Where a supervisor stands an employee down they shall arrange for the employee to be interviewed by the superintendent not later than the commencement of the employee's next rostered shift of duty or at such time as mutually may be arranged and the superintendent, after reviewing the case, shall inform the employee of their decision on the matter.

(e) An employee shall be entitled to appeal to the industrial department against any decision of a superintendent but the superintendent's decision shall take effect pending the determination of the appeal.

(f) Where an employee is working in a department other than the department to which they are attached, the employee may be stood down in accordance with the provisions of this subclause by the appropriate supervisor in the department in which they are working in lieu of the appropriate supervisor of the department to which they are attached.

(xvi) This clause shall not affect the right of the Company to dismiss an employee without notice for refusal of duty, malingering, inefficiency, neglect of duty or misconduct, and in such cases the wages shall be payable up to the time of the dismissal only, provided that:

(a) No employee shall be dismissed without notice before adequate investigation of the circumstances of the alleged offence has been made.

(b) Any decision as to the dismissal of an employee without notice shall be made by the superintendent of the department to which the employee is attached.

(c) When a superintendent decides to dismiss an employee without notice the superintendent shall so tell the employee and give the employee the reasons for the dismissal without notice.

(d) If immediately following a dismissal without notice the dismissed employee, or their delegate, tells the superintendent that the dismissal will be contested:

(1) The dismissal shall take effect 7 calendar days from the time that the employee was told of this dismissal; and

(2) During these 7 calendar days, notwithstanding the provisions of subclause (v) of this clause, the employees shall be stood down without pay.

(xvii) Superintendent in this clause shall include:

(a) Any officer with the authority higher than that of a superintendent;

(b) Any officer acting as a superintendent's deputy in the absence of the superintendent.

(c) In a department where there is no officer with the title of superintendent the supervisor who is in charge and, in their absence, their deputy.

(xviii) Department shall include a department so called and any other separately administered sections of the plant.

(xix) Group standing down shall mean the standing down under this clause of a group of not less than four employees who have refused duty or who have committed such misconduct whilst acting in concert.

This clause shall not affect the right of the Company to deduct payment for any day during which the employee cannot be employed usefully because of any strike or through any breakdown of machinery or due to any cause for which the Company reasonably cannot be held responsible.

28. Automation

(i) Notwithstanding the provision of clause 27, Contract of Employment, of this award, where, on account of the introduction or proposed introduction by the Company of mechanisation or technological changes in the industry covered by this award, the Company proposes to terminate the employment of an employee who has been employed by it for the preceding twelve months, it shall give the employee three months’ notice of the termination of their employment; provided that, if the employment of such employee is terminated on that account and the Company fails to give such notice in full,

(a) the Company shall pay the employee at the ordinary rate of pay for the employee’ s classification in clause 2, Rates of Pay, of this award, for a period equal to the difference between three months and the period of notice given, and

(b) the period of notice required by the clause to be given shall be deemed to be service with the Company for the Long Service Leave Act, 1955, the Annual Holidays Act, 1944 or any Act amending or replacing either of those Acts; provided further that the right of the Company to dismiss an employee for the reasons specified in clause 27, Contract of Employment, of this award, shall not be prejudiced by the fact that the employee has been given notice pursuant to this clause of the termination of their employment.

(ii) Where the Company proposes to introduce into the industry covered by this award mechanisation or technological change which will result in one or more employees becoming redundant, the Company shall give notification of six months before the introduction of such mechanisation or technological changes, and if it is not practicable for the Company to give such notifications at least six months before such introduction, then the Company shall give notifications as early as it is practicable for the Company to give them.

The notification to be given in accordance with this subclause are notifications in writing to the Industrial Registrar, the Director of the Vocational Guidance Bureau, the Director of Technical and Further Education and the State Secretaries of the relevant unions, of the number of employees who may become redundant on account of the introduction or proposed introduction of mechanisation or technological changes by the Company in the industry covered by this award, and of their occupation and of the approximate date when their employment is likely to terminate on account of such introduction.

29. Redundancy

(i) Purpose

These arrangements are designed to provide employees with fair and reasonable benefits in the event of redundancy.

(ii) Definitions

In this clause:

"weeks pay" means the employees weekly ordinary time rate of pay including award rate, over award rate and all-purpose allowances but excluding shift allowances, weekend penalties and overtime.

"continuous service" means unbroken service under a contract of employment of indefinite duration and excludes periods of unpaid leave of absence including unpaid parental leave.

"redundancy" means the employer has made a decision that the employer no longer wishes the job an employee has been doing done by anyone, and this is not due to the ordinary and customary turnover of labour; and that decision results in the termination of employment.

"employee" means an employee engaged under a contract of employment of indefinite duration and excludes casuals, fixed term employees and employees engaged under a training contract (such as apprentices and trainees).

(iii) Notice

In the event of forced redundancy, the employee will be provided a minimum of 4 weeks notice of termination (or 5 weeks if the employee is 45 years or older with 2 or more years continuous service) or payment in lieu of notice.

In the event of voluntary redundancy, the period of notice shall be on an agreed basis, but not exceeding 3 months, and there shall be no payment in lieu of notice.

(iv) Redundancy Benefit

Subject to the terms of this clause, employees terminating by reason of redundancy will be paid a redundancy benefit on termination of 4 weeks pay per year of continuous service (pro-rata for part years) provided that:

the minimum benefit is 8 weeks

the maximum benefit is 104 weeks

The above minimum and maximum redundancy benefits do not include any notice due or paid under 3 above.

These redundancy arrangements will come into effect from the 14th December, 2001, subject to the following conditions:

(a) Employees who as of 1 October 2001 had attained 36 years or more continuous service who leave the Company by cause of redundancy shall, in addition to the redundancy benefit above, be paid an ex gratia redundancy benefit of 2.5 weeks at the employee’s weekly ordinary time rate of pay for each year of service in excess of 36 years (pro-rata for part years).

(b) Permanent employees who as at 1 October 2001 had at least 6 months but less than 9.3 years continuous service who leave the Company by cause of redundancy shall be paid a redundancy benefit of 14 weeks pay plus 2.5 weeks pay per year of service. This benefit will be lieu of the redundancy benefit above.

(c) Where a decision is made to effect redundancies, discussions will be held between the Company and respective unions as to the selection of an appropriate outplacement provider to assist terminating employees. Such assistance may include resume writing, interview skills, job search and financial counselling. Should agreement not be reached, the Company’s nominated provider/s will be utilised.

(v) General exclusions

(a) Nothing in this clause shall be read as:

requiring the employer to extend a redundancy benefit to an employee where the employer offers the employee acceptable alternative employment (including alternative employment with rate retention arrangements as elsewhere provided for under this award/agreement)

giving rise to an entitlement to a voluntary redundancy benefit in the absence of a formal offer by the employer

(b) Redundancy benefit will not be paid in event of:

termination due to succession, assignment or transmission of business where the new employer offers the employee acceptable alternative employment with continuity of service; or,

where the employer otherwise obtains an offer of acceptable alternative employment for an employee.

30. Retention of Rate

(i) Where after 11th November 2003, as a result of the rationalisation of the Company's operations, the introduction of technological change, changes in work practices or market change, an employee is appointed to a classification or classifications which receive a lower ordinary time rate of pay (including all purpose components e.g. leading hand allowance) than did their classification immediately prior to the appointment or the first appointment ("the previous classification"):

(a) The employee shall retain the ordinary time rate of pay (sum of components) applicable to the previous classification, subject to the following adjustments:

(b) in the first and second years after the date of their appointment, all changes in the ordinary time rate of pay applicable to the previous classification;

(c) in the third to the fifth years after the date of appointment, half of any changes in the ordinary time rate of pay applicable to the previous classification;

(d) thereafter, no further adjustments.

(ii) Where on the 11th November 2003 an employee is in receipt of retained rates:

(a) the components of the retained rate will be converted to a total rate (sum of the components),

(b) an employees with less than 2 years on retention will be administered as per (i) above (eg. If they have been on retention for 1 year, they will have a further 1 year on full increases before moving to half increases for years 3 to 5).

(iii) Provided that in (i) and (ii) when the ordinary time rate of pay of the employee's new classification exceeds the ordinary time rate of pay they then receive, they shall thereafter receive payment of the ordinary time rate of pay applicable to their new classification.

(iv) Employees accepting retention of rate do so on the basis that they commit to undertaking training in their new classification structure. Employees are expected to train to the limit of their ability under the new classification structure. Should an employee elect not to retrain their rate will be reduced to the rate applicable to their assessed level.

31. Definitions

(i) Day Workers are employees other than shift workers and include employees on night work within clause 10, Night Work for Day Workers and Day Shift Workers, of this award.

(ii) Shift Workers are employees working on a one, two or three shift system.

(iii) Monday to Saturday shift workers are shift workers whose ordinary working hours are worked between Monday and Saturday.

(iv) For shift workers, each day, including Sundays and holidays, shall be deemed to commence at 8.00 am. and to terminate at 8.00 am. on the following calendar day.

(v) The method of working shift work and the time of commencement and finishing each shift in any department or section of a department may be varied by agreement between the Company and the majority of employees in that department or section of the department.

(vi) Annual leave rate of pay means -

(a) in the case of:

(1) annual leave under clause 22, Annual Leave, of this award and clause 23, Days Added to the Period of Annual Leave, of this award, taken by an employee immediately before or after leave under the Annual Holidays Act, 1944;

(2) payment in respect of annual leave or days added to the period of annual leave being made to an employee under the said clause 22 and 23 upon the termination of the employment of an employee at the same time payment is being made under the Annual Holidays Act, 1944, in respect of such termination.

The ordinary pay of the employee calculated in accordance with the Annual Holidays Act, 1944, for the leave taken or payments made under that Act.

(b) in the case of annual leave under the said clause 22 of the award and days added to the period of annual leave under the said clause 23 of this award being taken otherwise than immediately before or after leave under the Annual Holidays Act, 1944, the ordinary pay of the employees calculated in accordance with the Annual Holidays Act, 1944, as if such leave had been taken under the Act.

32. Time and Payment of Wages

(i) All wages to be paid fortnightly.

(ii) The provision this clause shall not have application in circumstances where it is not reasonably practicable for the Company to comply with its obligations thereunder on account of causes for which it cannot be held responsible. Proof of the existence of such circumstances shall be upon the Company. In such circumstances the Company shall pay wages as soon as it is reasonably practicable for it to do so.

(iii) All employees will be paid their wages by direct transfer into the employee's bank (or other recognised financial institution) account.

33. Union Delegates

(i) Recognition

The Company shall give recognition to an employee who is the delegate representing the employees in a shop or department where they are employed and they shall be allowed the necessary time to interview the Company or its representative during working hours in case of a dispute affecting employees in their shop or department; provided that the Company shall not be bound to give recognition as delegate to any employee in respect of whom a written notification has been received from the union concerned that the union does recognise that employee as a delegate. The Company shall upon request, provide each recognised delegate with a suitable locker for the purpose of storing relevant union material at the work place.

(ii) Training

(a) Recognised delegates may be granted up to three (3) days per annum trade union training leaving without loss of ordinary pay (excluding overtime). Such leave may accrue to a maximum of five (5) days. Reasonable requests for additional days may be authorised by the Company subject to meeting operational needs.

(b) The taking of such leave will be for the purposes of attending formal trade union training courses.

(d) As far as practicable, such leave should be organised so as to minimise the need for the employer to replace the delegate by the working of overtime and to allow the delegate to be released within ordinary time. It is recognised that the employer and delegates may need to demonstrate flexibility in the rostering of shifts to allow this to occur.

(e) Where issues arise as to the application of this clause, discussions will be held, consistent with local consultative arrangements and the dispute settlement procedure under this Award, with a view to resolving the issue prior to the commencement of the training.

34. Payroll Deduction of Union Dues

The employer will, on the written authority of the employee, make regular deductions of union dues and disburse them to the respective unions party to this Award.

35. Procedures for Resolving Claims, Issues and Disputes

(i) Introduction

All parties to this Award recognise and accept that people have differing viewpoints, and hence, conflict will arise from time to time. It is agreed that it is in the interests of all parties to manage the resolution of this conflict by means which do not damage the business.

To enable claims, issues and disputes to be progressed while work proceeds normally the procedures outlined in this clause will apply.

(ii) Departmental, Claims, Issues and Disputes

(a) Step 1 (to be completed within 24 hours or the next ordinary working day following the claim, issue or dispute arising):

(1) Employee(s) and/or delegate(s) of the union(s) involved will place the claim, issue or dispute before the front-line supervisor. This group will take all reasonable steps to solve the issue together;

(2) Failing agreement, employee(s) and/or delegate(s) of the union(s) involved and the front-line supervisor will fill out the Resolution of Claim, Issues and Disputes form. The claim, issue or dispute will then be put in this written form to the shift supervisor. This group will take all reasonable steps to settle the matter;

(3) Failing agreement, all parties will place the claim, issue or dispute in written form before the head of the department. This group will take all reasonable steps to settle the matter.

(4) The delegate(s) shall contact their union(s) official(s) should industrial action be threatened or likely.

(b) Step 2 (to be completed within 24 hours or the next ordinary working day following Step 1):

Failing agreement, employee(s) and/or delegate(s) and/or officials of the union(s) involved and/or the head of the department will organise a time and date for an Industrial Relations Conference..

Failing agreement being reached arising from the Industrial Relations conference/s, the claim, issue or dispute shall be referred to the appropriate industrial relations tribunal, if any of the parties want to pursue it further.

(iii) Occupational Health and Safety Matters

Where matters relating to the health or safety of employees arise within the workplace:

(a) The employee/s concerned will raise the matter with their front-line supervisor. If they wish, they may involve a member of the department's Occupational Health and Safety Committee.

(b) The supervisor will take corrective action to allow work to continue without risk to health and safety.

(c) Should the corrective action taken by the supervisor be disputed, an immediate conference involving Occupational Health and Safety Committee members, union officials and appropriate Company officers will be called. Undertakings are given by all parties concerned to make themselves available for such conferences.

(d) If the corrective action taken by the supervisor is considered to be inappropriate as a permanent resolution of the matter, the matter will be referred to appropriate management and the department's Occupational Health and Safety Committee in accordance with the Occupational Health and Safety Act 2000 (NSW) for the development of a preventative plan. Should the department not have an Occupational Health and Safety Committee the matter may be dealt with by way of Steps 2 and 3 of the procedure for resolving claims, issues and disputes outlined in subclause (ii) above.

(e) Occupational health and safety matters will be documented, including corrective actions taken, for review by management and the department's Occupational Health and Safety Committee.

(f) Nothing in this subclause should be construed as to require the parties to act other than in accordance with the Occupational Health and Safety Act 2000 (NSW).

(iv) General Claims, Issues and Disputes

(a) The official(s) and delegate(s) of the union(s) involved will place the claim, issue or dispute before the Company’s industrial relations department, which will take all reasonable steps to reply as soon as possible.

(b) Failing agreement, the claim, issue or dispute shall be referred to the appropriate industrial relations tribunal, if the union(s) want to pursue it further.

(v) The provisions of this clause shall not affect in any way other rights and duties of any party to this award pursuant to the Act or any Act or at common law in relation to any matter.

(vi) The operation of this clause will be jointly reviewed by the parties at regular intervals. This will include reviews of breaches of these procedures to identify any corrective actions required to ensure future compliance.

36. Apprentices

Where any provisions of this award, so far as they relate to apprentices, are inconsistent with the provisions of this clause, the provisions of this clause shall, to the extent of the inconsistency, prevail.

(i) Conditions Of Employment

The ordinary conditions of employment, including method of payment, award holidays, hours and overtime, shall be those contained in this award provided an apprentice whilst under 18 years of age shall not be allowed to work shift work, and the apprentice shall not work shift work unless working under the control of a tradesperson in the same trade. The apprentice shall not be required to work overtime during the first year of their apprenticeship unless they are willing to do so.

(ii) Lost Time

The Company may deduct from the wages of an apprentice amounts proportionate to the working time lost by the apprentice in any wage period when suspended under the provisions of subclause (iii) or owing to their absence from the service of the Company, unless such absence is caused by:-

(a) The Company's fault

(b) Illness not exceeding one week in each year of service duly certified by a qualified medical practitioner.

(iii) Disciplinary Code

(a) The apprentice may be suspended by the Company without pay during such period of suspension for the following reasons, and subject to the undermentioned limitations of each suspension, viz.:

Nature of Offence or Misdemeanour

Disobedience~ Laziness Bad Timekeeping, General	First Offence - The apprentice shall be told
Misconduct etcetera	that this caution will be noted on their
	history card.
	Second Offence - The apprentice may be
	suspended for a period not exceeding five
	working days (without pay). Time lost by
	such suspension shall be made up at the end
	of each year.
	Third Offence - The apprentice may be
	suspended for a period not exceeding ten
	working days (without pay). Time lost by
	such suspension shall be made up at the end
	of each year. Following a suspension the
	apprentice may be brought before the
	Company's Internal Apprenticeship
	Authority which shall admonish the
	apprentice and advise them that their
	offence or misdemeanour, if persisted in,
	may lead to cancellation of their indenture
	in accordance with Part 4 of the
	Apprenticeship and Traineeship Act 2001.
Insolence, Wilful Disobedience, Wilful Damage to	First Offence - The apprentice may be
Property~ Neglect of Safety Precautions which may result	instantly suspended for a period not
in injury to himself or herself or fellow employees Theft~	exceeding five working days (without pay).
Assault or Other Serious and Wilful Misconduct	Time lost by such suspension shall be made
	up at the end of each year.
	Second Offence - The apprentice may be
	instantly suspended for a period not
	exceeding ten working days (without pay).
	Time lost by such suspension shall be made
	up at the end of each year. Following a
	suspension the apprentice may be brought
	before the Company's Internal
	Apprenticeship Authority which shall
	admonish the apprentice. If such conduct is
	persisted in the apprentice may be
	suspended immediately and their indenture
	may be cancelled in accordance with Part 4
	of the Apprenticeship and Traineeship Act
	2001.

(b) When the Company intends to suspend an apprentice it shall immediately so advise the Commissioner for Vocational Training and the union or unions covering the apprentice's trade.

(c) When the Company suspends an apprentice, the suspension shall be effected by handing or delivering to the apprentice a notice in writing specifying:

(1) Particulars of the offence alleged to have been committed;

(2) The period of suspension;

(3) That future misconduct may cause the Company to seek cancellation of the indenture;

(4) The address of the Commissioner for Vocational Training; and

(5) That the apprentice is entitled to apply to the Commissioner for Vocational Training at that address, by letter, to have the suspension set aside.

(d) The Company shall forward a copy of the notice to the Commissioner for Vocational Training, the union or unions covering the apprentice's trade and to the parent or guardian of the apprentice on the same day as the notice is handed or delivered to the apprentice.

(e) Any purported suspension not effected in accordance with the above shall be of no effect.

(f) Nothing in this clause shall affect the rights or obligations of any party to the apprenticeship under the Apprenticeship and Traineeship Act 2001.

(iv) Wages

(a) The minimum weekly rates of pay for apprentices shall be as set out in Item 34 of Table 2

Column A - to apply from the first full pay period commencing on or after 1st September 2005.

Column B - to apply from the first full pay period commencing on or after 1st March, 2006.

Column C - to apply from the first full pay period commencing on or after 1st September, 2006.

Column D - to apply from the first full pay period commencing on or after 1st September, 2007.

(b) The total wages of apprentices shall be calculated to the nearest ten cents, any broken part of ten cents in the result not exceeding half of ten cents to be disregarded.

(c) An employee who is under twenty-one years of age on the expiration of their apprenticeship and thereafter works as a minor in the occupation to which they have been apprenticed shall be paid at not less than the adult rate prescribed for that classification.

(d) The special rates provisions in this award shall apply to apprentices in the trades where tradespersons are paid these special rates.

37. Enterprise Arrangements and Award Changes

(i) Consideration may be given to changes in award provisions and to the bringing into existence of enterprise arrangements through the established consultative mechanisms at the Company's works.

(ii) Enterprises shall have a consultative mechanism and procedures appropriate to their size, structure and needs for consultation and negotiations on matters affecting their efficiency and productivity.

38. Performance Payment Scheme

The Performance Payment Scheme appended (Appendix 2) to this award is given effect.

39. Supplementary Labour - Rates of Pay

Where supplementary labour is engaged payment will be based on the appropriate classification rate of pay otherwise payable to an employee under this Award. In this clause, "supplementary labour" is labour sourced through labour hire firms to fill temporary vacancies or to top up the existing full time labour force (e.g. to cover seasonal or peak work loads) but excludes labour engaged under service contracts and other contractual arrangements (eg. maintenance contracts, capital contracts, etc).

So as to remove doubt, this clause is binding only on the Company, unions and employees party to this Award and does not extend this Award to other employers or their employees engaged as supplementary labour.

40. Transition Arrangements for Retiring Shift Workers

The parties agree to providing support in terms of shift, financial and lifestyle planning for those employees who nominate their retirement in advance. These arrangements will be managed on an individual basis. The aim of this clause is to provide a smooth transfer from work into retirement for long serving employees (typically having served on shift work greater than 10 years). Such transitions would not normally exceed a period of 12 months and will be subject the capacity of the business to reasonably accommodate the needs of the employee. For example, shift workers who nominate their retirement date in advance the following could apply:

staged moderation of duties;

lifestyle planning / training; and/or,

movement to day shift at the employee's request.

41. Flexible Remuneration

(i) In this clause, "Plan" means the terms under which flexible remuneration benefits may be offered by the company at its absolute discretion from time to time to employees by way of a sacrifice of wages payable under this award. Without limitation, the benefits may include, for example, superannuation contributions and employee share plans.

(ii) Despite the provisions of this award an employee may elect:

(a) to receive the benefits of any Plan offered by the company; and

(b) to reduce wages otherwise due under this award by the amount required under the plan for the benefits received by the employee under the Plan.

(iii) Any election by an employee under sub-clause (ii) must be in the form prescribed by the Company from time to time.

(iv) Where an employee has made an election under sub-clause (ii), the wages payable under this award will be reduced by such amount as prescribed from time to time under the relevant Plan.

(v) The reduced wages and the contributions under the Plan will apply for periods of annual leave, long service leave and other periods of paid leave.

(vi) The company or an employee may only terminate or vary an election under sub-clause (ii) in accordance with the terms applicable to the relevant Plan.

(vii) Other than as already provided for under any Plan, the company at its discretion may terminate the provision of benefits under a Plan or amend the terms applicable to a Plan. The company will give one month’s notice of such a termination or amendment.

(viii) The Company shall not use any superannuation contribution made in accordance with an employee’s election to meet its minimum employer obligation under the Superannuation Guarantee (Administration) Act 1992 or any legislation which succeeds or replaces it.

(ix) The provisions of this clause have been agreed to by the parties with the intent of facilitation flexible remuneration benefits for employees covered by this award. To remove any doubt, this clause is not intended to:

(a) provide substantive industrial regulation of any benefit included in a Plan; and

(b) be used as a precedent in relation to any claim for the industrial regulation of any benefit include din a Plan, including, for example superannuation contributions and employee share plans."

42. Parental Leave

The parental leave provisions set out in Division 1 of Part 4 of Chapter 2 of the Act shall apply in conjunction with the provision for paid parental leave set out below.

1. Eligibility

(a) An employee who has completed at least 12 months continuous service with the employer (on a full-time or part-time basis) is entitled to paid parental leave in accordance with this clause.

(b) A casual employee is entitled to paid parental leave if they have worked for the employer on a regular and systemic basis for more than 12 months and have a reasonable expectation of on-going employment on that basis.

2. Entitlement

(a) An employee is entitled to paid parental leave as follows:

(i) maternity leave - six (6) weeks paid leave immediately after the child’s birth and, for employees with at least 24 months continuous service, an additional six (6) weeks.

(ii) paternity leave - one (1) week paid leave around the time of birth

(iii) adoption leave - six (6) weeks paid leave at the time of placement if the employee is the primary carer and, for employees with at least 24 months continuous service, an additional six (6) weeks.

(b) Any period of paid parental leave arising from this clause will be deducted from the period of unpaid parental leave to which the employee is entitled arising from legislation or industrial award.

(d) Parental leave is paid at the employee’s weekly ordinary time rate of pay for the period of the leave (as per sick leave).

(e) Employees taking maternity or adoption leave may elect to double the period of paid leave arising from paragraph a) above to be paid at 50% of the employee’s weekly ordinary time rate of pay. Provided that this extended period of paid leave falls within the period of unpaid parental leave to which the employee is entitled arising from legislation or industrial award.

3. Giving notice and applying for leave

(a) To be eligible to claim paid parental leave, employees must comply with the requirements regarding advice to the employer normally associated with the taking of unpaid parental leave.

(b) To claim paid paternity leave the employee must provide such reasonable proof as the employer may require.

4. Impact of paid parental leave on other entitlements

(a) Paid parental leave shall be considered service for the purpose of service related entitlements (unpaid leave is not counted for such purposes).

(b) The receipt of paid parental leave does not otherwise limit the employee’s rights or obligations with respect to unpaid parental leave arising from legislation or industrial award.

5. Impact of legislative paid parental leave on these entitlements

Leave is reserved to the Company to review these arrangements should the mooted national scheme of paid parental or maternity leave be introduced.

43. Wage Support for Extended Periods of Illness Or Injury

1. Purpose

These arrangements are designed to provide employees of OneSteel with added financial security in the event of their being off work for an extended period due to non-works illness or injury.

2. Underpinning principles

(a) Employees may reasonably expect continued financial support in the event of extended illness or injury

(b) Employees are expected to provide for their own security by accessing reasonable levels of existing leave entitlements

(c) The extension of financial support places obligations on the employee to cooperate with the reasonable requests of their employer

(d) Fair & equal treatment of all employees

(e) These arrangements are not intended to support "casual" absences or benefit employees with chronic poor attendance

3. Extended wage support - non-works injury or illness

(a) Subject to the provisions of this clause, employees will receive financial support at the ordinary time rate of pay for the period of their incapacity, up to a maximum of twelve (12) months, in the event of their being unable to attend work continuously for greater than one (1) month due to personal illness or injury. Provided further that where an employee is a shiftworker and would have remained on shift but for their inability to attend work, such financial support will include additional payment of the ordinary shift and weekend penalties applicable to the employee’s roster.

(b) Employees will be required to exhaust all available sick leave accruals before accessing the support available under this clause.

Additionally, employees will be required to utilise:

any annual leave (including pro-rata accruals) in excess of 4 weeks; and,

any long service leave (including pro-rata accruals) in excess of 13 weeks

for a combined period of not more than 6 weeks before accessing the support available under this clause.

(c) The period of extended wage support referred in (a) above is in addition to existing sick leave entitlements and such annual leave or long service leave as may be taken under paragraph b) above.

(d) Where the employee is entitled to benefits arising from personal injury insurance (eg motor vehicle CTP insurance, sporting injury insurance, etc), other than workers compensation, the wage support otherwise extended under this clause will be reduced by the amount of insurance benefit paid. Where such monies are paid by an insurer substantially after the absence, the employee is required to repay such monies to the employer. The employer may require the employee to authorise the employer to claim such monies direct from the insurer prior to receiving extended wage support.

(e) Should circumstances arise where the employer believes that the conduct of the employee is such that the continued extension of wage support would be at odds with the principles outlined in 2. above, the employer may initiate a formal review in which the employee, and their union should they wish, are given the opportunity to respond to any allegations prior to the employer making a decision as to continuance or cessation of wage support. Any disputes that arise from the exercise of this facility will be progressed in accordance with the dispute settlement procedure.

(f) Consideration may be given to further wage support beyond the 12 months referred to under paragraph (a) above in circumstances where the agreed rehabilitation plan for the employee and medical opinion indicate that an immanent return to normal duties by the employee.

4. Obligations of employees

(a) Employees are required to provide all reasonable evidence requested by the employer as to the nature of their illness or injury including making themselves available for examination by medical practitioners/specialists nominated by the employer

(b) Employees are required to actively participate in any reasonable rehabilitation or return to work plan required by the employer

5. Exclusions - The above arrangements will not extend to the following:

(a) Employees engaged on a casual or fixed term basis

(b) Employees with less than 3 months continuous service

(d) Casual absences or absences of short duration

(e) Injury or illness arising from the unlawful actions of the employee

(f) Absences which would otherwise be covered by carers leave

(g) Multiple periods of extended absences beyond those totalling 12 months in any 3 year period.

(h) Employees enjoying similar support under discretionary sick leave arrangements

(i) Absences resulting from alcohol, drug or substance abuse

(j) Absences resulting from high risk sporting or recreational activities generally precluded from personal accident insurance arrangements (such as competitive motor sport, sky diving, etc).

6. Other matters

(a) Any disputes arising from the operation of this clause will be progressed in accordance with the dispute settlement procedures under the respective award/agreement.

(b) Nothing within these arrangements is to be taken to preclude termination of employment where the prognosis for the employee is that they will be unable to return to their normal employment, subject to the employee being afforded reasonable extended wage support so to allow them to resolve questions as to their financial security post-termination.

44. Superannuation - Choice of Fund

Employee and employer superannuation contributions will be paid into either the OneSteel Superannuation Fund (OSSF) or the Superannuation Trust of Australia (STA) at the direction of the employee. In the absence of an election from the employee the contributions will be directed to the default fund.

For the purposes of this clause the default fund will be:

for existing employees at 1 July 2005 the OSSF, and

for employees commencing employment with OneSteel after 1 July 2005 the STA.

45. No Extra Claims

It is a term of this award, arising from the OneSteel Manufacturing Wage Settlement 2005 (the Settlement), that the Unions undertake for the period to 31 August, 2008, not to raise any further claims, award or overaward (including claims arising from National or State wage cases), and acknowledge that this settlement deals comprehensively with rates of pay, conditions of employment and related matters.

There will be agreed scope to arbitrate, if necessary, unresolved issues about classification restructuring or work value claims.

46. Commitment to Ongoing Business Improvement

It is acknowledged and agreed that the wages and conditions enjoyed by OneSteel employees, including the gains flowing through this Award, are only afforded by ongoing competitiveness in all areas of OneSteel’s operations.

Employers, employees and unions party to this Settlement commit to co-operatively and expeditiously pursuing workplace change necessary for ensuring OneSteel meets its promise to customers and improving asset and labour productivity during the life of this settlement. Such change will occur consistent with the principles of fair treatment, consultation and competitive manufacturing.

It is agreed that these types of changes and flexibilities underpin the wage increases provided for in the Settlement.

47. Area, Incidence and Duration

(i) This Award rescinds and replaces the OneSteel Manufacturing Pty Ltd Newcastle Rod & Bar Award published 19 March 2004 (Vol 343 I.G. 752 ) as varied.

(ii) This award shall apply to all employees (including apprentices within clause 35, Apprentices) of the OneSteel Manufacturing Pty Ltd at Newcastle, except -

(a) employees on the clerical staff;

(b) employees on the salaried staff other than employees of the classes covered by clause 2, Rates of Pay, of this award.

(iii) This Award shall apply to the employees covered by the award to the exclusion of all other awards.

(iv) This award shall take effect from the beginning of the first pay period to commence on or after 1st September 2005 and shall remain in force for a period until 31st August, 2008 (the nominal term).

(v) Discussions regarding a replacement settlement may commence 3 months prior to expiry of this settlement.

PART B

MONETARY RATES

Adult Basic Wage: $121.40 per week

Table 1 - Wages per 38 hour week - (Award margin plus basic wage)

Column A - to apply from the first full pay period commencing on or after 1st September 2005

Column B - to apply from the first full pay period commencing on or after 1st March, 2006.

Column C - to apply from the first full pay period commencing on or after 1st September, 2006.

Column D - to apply from the first full pay period commencing on or after 1st September, 2007.

Classifications	A	B	C	D
	$	$	$	$
Loading Yard Department
Operations -
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.00	583.80	607.20	631.50
Level 2	609.60	615.70	640.30	665.90
Level 3	626.50	632.80	658.10	684.40
Operator QA	646.30	652.80	678.90	706.10
Level 4	665.80	672.50	699.40	727.40
Rod Coil Storage Operation
Operations -
Entry Level	564.00	569.60	592.40	616.10
Level 1	646.30	652.80	678.90	706.10
Level 2	665.80	672.50	699.40	727.40
Rod Mill Department
Operations -
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.00	583.80	607.20	631.50
Level 2	594.70	600.60	624.60	649.60
Level 3	646.30	652.80	678.90	706.10
Level 4	689.10	696.00	723.80	752.80
Level 5	715.00	722.20	751.10	781.10
Maintenance Operator -
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.30	584.10	607.50	631.80
Level 2	620.70	626.90	652.00	678.10
Level 3	646.70	653.20	679.30	706.50
Level 4A	657.70	664.30	690.90	718.50
Level 4B	672.50	679.20	706.40	734.70
Level 4C	672.50	679.20	706.40	734.70
No. 2 Bar Mill Department
Operations -
Rolling Area
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.00	583.80	607.20	631.50
Level 2	609.60	615.70	640.30	665.90
Level 3	665.80	672.50	699.40	727.40
Level 4	715.00	722.20	751.10	781.10
Level 5	742.00	749.40	779.40	810.60
Finishing Area
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.00	583.80	607.20	631.50
Level 2	609.60	615.70	640.30	665.90
Level 3	665.80	672.50	699.40	727.40
Level 4	715.00	722.20	751.10	781.10
Level 5	742.00	749.40	779.40	810.60
No. 2 Bar Mill Department
Maintenance Operators -
Entry Level	564.00	569.60	592.40	616.10
Level 1	620.70	626.90	652.00	678.10
Level 2	646.70	653.20	679.30	706.50
Level 3 A	672.50	679.20	706.40	734.70
Level 3 B	689.40	696.30	724.20	753.20
Level 3 C	689.40	696.30	724.20	753.20
Market Mills Electrical
Maintenance Operators -
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.30	584.10	607.50	631.80
Level 2	595.10	601.10	625.10	650.10
Level 3	646.70	653.20	679.30	706.50
Central Roll Shop
Maintenance Operators -
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.30	584.10	607.50	631.80
Level 2	646.70	653.20	679.30	706.50
Laboratory And Technical Services
Service Operators
Laboratories
Lab hand	564.00	569.60	592.40	616.10
Entry Level	578.30	584.10	607.50	631.80
Level 1	620.70	626.90	652.00	678.10
Level 2	646.70	653.20	679.30	706.50
Level 3	672.50	679.20	706.40	734.70
Mechanical Testing Section
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.30	584.10	607.50	631.80
Level 2	595.10	601.10	625.10	650.10
Level 3	646.70	653.20	679.30	706.50
Product Quality Department
Service Operators
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.30	584.10	607.50	631.80
Level 2	595.10	601.10	625.10	650.10
Level 3	646.70	653.20	679.30	706.50
Reconditioning Yard
Operations -
Entry Level	564.00	569.60	592.40	616.10
Level 1	609.60	615.70	640.30	665.90
Level 2	665.80	672.50	699.40	727.40
Level 3	697.60	704.60	732.80	762.10
Level 4	715.00	722.20	751.10	781.10
Engineering Services
Maintenance Operators -
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.30	584.10	607.50	631.80
Level 2	620.70	626.90	652.00	678.10
Level 3	646.70	653.20	679.30	706.50
Level 4	672.50	679.20	706.40	734.70
Level 5	689.40	696.30	724.20	753.20
Machine Shop Group
Maintenance Operators -
Entry Level	564.00	569.60	592.40	616.10
Level 1	578.30	584.10	607.50	631.80
Level 2	620.70	626.90	652.00	678.10
Level 3	657.70	664.30	690.90	718.50
Level 4	689.40	696.30	724.20	753.20
Fabricating Shop
Maintenance Operators -
Entry Level	564.00	569.60	592.40	616.10
Level 1	595.10	601.10	625.10	650.10
Level 2	646.70	653.20	679.30	706.50
Technical Training Centre
Maintenance Operators -
Entry Level	564.00	569.60	592.40	616.10
Level 1	595.10	601.10	625.10	650.10
Level 2	646.70	653.20	679.30	706.50
Level 3	672.50	679.20	706.40	734.70
Maintenance
Electrical Tradespersons -
Level 1	692.20	699.10	727.10	756.20
Level 2	715.00	722.20	751.10	781.10
Level 3	741.70	749.10	779.10	810.30
Level 4	777.00	784.80	816.20	848.80
Level 5	812.00	820.10	852.90	887.00
Level 6	838.10	846.50	880.40	915.60
Level 7	882.30	891.10	926.70	963.80
Maintenance
Mechanical Tradespersons -
Level 1 (Matrix Position 1A)	674.00	680.70	707.90	736.20
Level 2 (Matrix Position 2A,1B)	696.50	703.50	731.60	760.90
Level 3 (Matrix Position 3A,2B,1C)	718.70	725.90	754.90	785.10
Level 4 (Matrix Position 4A,3B,2C)	745.20	752.70	782.80	814.10
Level 5 (Matrix Position 5A,4B,3C)	777.00	784.80	816.20	848.80
Level 6 (Matrix Position 5B,4C)	812.00	820.10	852.90	887.00
Level 7 (Matrix Position 5C)	847.20	855.70	889.90	925.50
General
Miscellaneous
Plant Office Cleaner	564.00	569.60	592.40	616.10
Labourer	564.00	569.60	592.40	616.10
Administration Office Cleaner	567.50	573.20	596.10	619.90
Watchman	604.20	610.20	634.60	660.00

Table 2 - Other Rates And Allowances

Item	Clause		Brief Description				A				B		C				D
No.	No.						$				$		$				$
Tool Allowances
1	3 (a)		Mechanical Tradesperson				12.40						12.80				13.20
			Electrical Tradesperson				12.40						12.80				13.20
2	3 (b)		Tool Allowance
			First Year				5.20						5.40				5.60
			Second Year				6.80						7.20				7.20
			Third Year				9.30						9.60				9.90
			Fourth Year				10.90						11.20				11.50
Leading Hands
3	4		Leading Hands
			If in charge of not more than				30.30				30.60		31.80				33.10
			seven employees
			If in charge of more than seven				45.70				46.20		48.00				49.90
			employees but not more than
			seventeen employees
			If in charge of more than				58.10				58.70		61.00				63.40
			seventeen employees
Special Rates
4	5 (i) (a)		Pressure welding certificates				7.40							7.60				7.80
			Each additional certificate				1.75							1.80				1.90
5	(b)		Electrical Trades Licence
			‘A" Grade				29.60							30.50				31.40
			‘B’ Grade				16.00							16.50				17.00
6	(c)		Scaffolders Licence
			Class 1 and 2				7.40							7.60				7.80
			Class 3 and 4				4.20							4.30				4.40
Disability Rates
7	6 (i) (a)			Hot places -
				Elec. & Mech.
				Temp. 46-54 degrees C				0.43							0.44				0.45
				Temp exceeds 54 degrees C				0.56							0.58				0.60
8	(b)			Hot work				0.49							0.50				0.52
9	(c)			Wet places
				Electrical trades				2.45							2.52				2.60
				Employee				1.70							1.75				1.80
10	(d)			Wet work - mechanical trades				0.43							0.44				0.45
11	(e)			Dirty Work				0.43							0.44				0.45
12	(f)			Confined Spaces				0.58							0.60				0.62
13	(g)			Height Money				0.32							0.33				0.34
14	(h)			Oil Tanks				0.43							0.44				0.45
15	(i)			Explosive Power Tools				0.14							0.15				0.15
								1.13							1.16				1.19
16	(j)			Slag Wool				0.57							0.59				0.61
17	(k)			Demolition				3.60							3.71				3.82
18	(l)			An employer when painting				0.56							0.58				0.60
				internal surfaces of salt water
				pipe line
19	(m)			Smoke Boxes				0.32							0.33				0.34
Electrical Tradespersons
20	6 (ii) (a)		High places - 15 metres or more				0.47							0.48				0.49
	(1)		For each additional 15 metres				0.47							0.48				0.49
21	(2)		Working in a bosun’s hair or				0.47							0.48				0.49
			swinging scaffold at 15 metres
			or more
22	(b) (3)		Toxic substances - use of				0.57							0.59				0.61
			Employees working in close				0.47							0.48				0.49
			proximity
Maintenance
23	6 (iv) (a)		Spray Painting				0.49								0.50				0.52
24	(b) (1)		Obnoxious Substances				0.61								0.63				0.65
			Prep and/or application of epoxy
			based materials
25	(2)		Application in buildings which				0.39								0.40				0.41
			are normally air conditioned
26	(4)		Employees working in close				0.49								0.50				0.52
			proximity
Shift Allowances
		Shift work allowance for shift			A				B			C				D
		workers
27	8 (a)	Rotating shift			67.20				67.90			70.60				73.40
28	8 (a)	When at least one-third of their			44.80				45.20			47.00				48.90
		working time in the full cycle of
		the roster is on day shift
29	8 (b)	Allowance whilst working shift
		work which involves regular
		weekly changes as follows:-
		Day shift, night shift			67.20				67.90			70.60				73.40
		Day shift, afternoon shift			57.20				57.80			60.10				62.50
		Day shift, day shift, afternoon			57.20				57.80			60.10				62.50
		shift
		Day shift, day shift, night shift			57.20				57.80			60.10				62.50
		Junior shift workers when			67.20				67.90			70.60				73.40
		working under any of the shift
		systems set out above
30	(c)	Allowance for the following
		shift systems:-
30	(1)	Night shift, afternoon shift			89.40				90.30			93.90				97.70
	(2)	Night shift only			89.40				90.30			93.90				97.70
	(3)	Afternoon shift only			89.40				90.30			93.90				97.70
31	(d)	Work on any afternoon or night			27.00				27.30			28.40				29.50
		shift other than the shift systems
		in (a) (b) or (d) and are not paid
		in respect of any day shift
Overtime
32	13 (iii) (f)	Meal allowance overtime			9.70										Cpi				Cpi
	(2)
33	13 (iii) (g)	Meal allowance recalled to work			9.70										Cpi				Cpi
	(2)
Apprentices - Wages Four Year Term
34	36 (iv) (a)	First Year				290.90				293.80		305.60				317.80
		Second Year				375.90				379.70		394.90				410.70
		Third year				500.30				505.30		525.50				546.50
		Fourth year				573.70				579.40		602.60				626.70

Appendix 1

PAYMENT FOR TRAINING AGREEMENT

1. Scope Of Agreement

This agreement applies to Company authorised training to allow employees to:

(a) carry out the full range of duties of their current classification, and/or

(b) progress within the appropriate Employee Job Development model.

provided that the employee's attendance at authorised training has been approved by supervision after consideration of the employee's and Company's needs, including operational requirements. Any refusal by supervision to grant such approval is subject to review under the established procedure for resolving industrial claims, issues and disputes or other local arrangements.

This agreement does not apply to training which is generally not associated with:

(a) allowing employees to carry out the full range of duties of their current classification and/or

(b) the appropriate Employee Job Development model

such as occupational health and safety committee training, trade union training, full time training (e.g. apprentices) or training such as that covered by the Approved Student and Cadet Schemes and University Degrees.

So far as is reasonably practicable, having regard to operational requirements and the need to minimise labour costs additional to those of the employee's paid ordinary hours, an employee's training shall be done during the employee's ordinary hours of work (including where appropriate by rescheduling those hours).

2. Payments

Where with the approval of the Company an employee attends training authorised by the Company, the employee's attendance will be on the following basis:

(a) TAFE and other externally provided training whether conducted on or off the plant

(i) during ordinary working hours - no deduction from the employee's ordinary wage;

(ii) outside ordinary working hours - attendance and payment at single time payment will be approved in accordance with the needs of the authorised training. Generally this training will not exceed six hours per week except that additional training may be approved and single time payment will be made if exceptional training requirements exist.

(b) Other classroom training -

(i) during ordinary working hours - no deduction from the employee's ordinary wage;

(ii) outside ordinary working hours single time payment.

(c) Computer aided or computer based training during ordinary working hours - no deduction from the employee's ordinary wage.

(d) Computer aided or computer based training outside ordinary working hours - single time payment for the time spent training up to the maximum of the course duration as determined by the course designer or course coordinator. No payment will be made for time beyond that duration. Any refusal of payment is subject to review under the established procedure for resolving industrial claims, issues and disputes or other local arrangements.

(e) On-the-job training:

(i) during ordinary working hours - no deduction from the employee's ordinary wage;

(ii) outside ordinary working hours single time payment for the employee's initial training period. However, once the employee has completed the initial training period and commences experience training the appropriate Award overtime rates of pay will apply.

For the purposes of 2(e)(ii) above:

(i) "initial training" is the training which an employee undertakes to the point where the employee's supervision is satisfied that the employee has acquired sufficient knowledge and understanding of a skill, task or function to perform that skill, task or function; and

(ii) "experience training" is the training, if applicable, following initial training during which an employee is gaining experience in the skill, task or function which is required for the purpose of accreditation.

3. Repeat Training

(a) If an employee fails to pass an accreditation stage:

(i) But has genuinely applied himself/ herself to training (as determined by supervision), supervision will authorise and pay the employee for additional training at a mutually agreed time (which fits in with the employee's departmental requirements and does not disadvantage other employees).

(ii) And has not made a genuine effort (as determined by supervision), the employee will be placed at the bottom of the training waiting list for that training requirement. The employee will not be paid for repeat training outside ordinary working hours and, unless circumstances require a different approach, repeat training will not be arranged during ordinary working hours.

(b) Repeated failure will result in counselling by supervision to determine a solution.

(c) Any disputes arising in relation to 3(a)(i), (ii) or (b) will be progressed through the established procedure for resolving industrial claims, issues and disputes or other local arrangements.

4. Refresher Training

In the case of an employee who is undertaking authorised refresher training (e.g. a forklift driver who has not driven a forklift for five years), the employee will receive payment in accordance with the appropriate payment for training provision in (2) above.

5. Definitions

(a) Ordinary working hours means:

the employee's normal working hours in the case of a dayworker.

the employee's rostered on shifts in the case of a shiftworker.

the employee's rescheduled . on shifts in the case of a shiftworker whose shifts have been rescheduled for the purposes of approved training.

(b) "Ordinary wage" means the employee's ordinary award wage (including shift and weekend premiums and any allowances but excluding disability allowances if these are not experienced) and bonus. It is paid for time spent in tuition, travelling and examination only.

(c) "Single time payment" means the employee's ordinary award wage and bonus and excludes shift and weekend premiums, overtime, special rates, etc. It is paid for time spent in tuition and examination only.

(d) "Classroom training" means training conducted by a trainer, supervisor or other suitably qualified person in any training centre, conference room, crib room or office.

6. Miscellaneous

(a) An employee is training until he/she receives accreditation for the skills being learned.

(b) Where an employee is required to travel from work, during ordinary working hours, to attend Technical and Further Education Commission or other externally provided training, or travel from training back to work, the employee shall be allowed up to 30 minutes travelling time. This travelling time will be paid at the employee's ordinary wage.

If the travelling time is outside the employee's ordinary working hours, no payment will be made.

(c) Employees will not be expected to work excessive hours and attend training at the same time (i.e. an employee will not be expected to work and train on sequence of doublers).

7. Exceptions To (2) Above

(a) If an employee is required to attend authorised training outside ordinary working hours on a Saturday, Sunday, Public Holiday, or rostered day off, the employee shall be entitled to the appropriate penalty payments, or by agreement, time off in lieu.

For the purposes of 7(a) above

(i) "appropriate penalty payments" means the appropriate award overtime payments;

(ii) shift allowance is not paid on any shift; and

(iii) "time off in lieu" is equal time not penalty time (e.g. if an employee trains for 8 hours on a Saturday and it is agreed that the employee has time off in lieu the employee has 8 hours off work).

(b) Employees attending authorised training on compulsory ring roster days" or 21st shifts" will be paid according to their roster (i.e. overtime rates).

(c) Employees asked to remain at work or attend work outside their ordinary working hours for the purpose of performing work shall be paid overtime. If, during such work, training is carried out (e.g. during a mechanical breakdown) the employee will continue to be paid overtime for the training period.

(d) No payment will be made for:

(i) time spent in personal study and/or private tuition.

(ii) time spent enrolling in authorised external courses (e.g. TAFE).

(iii) time spent in preparation of assignments.

(iv) waiting time between courses.

(v) time spent on text based self guided learning.

8. Payment Of Course Fees

Unless an employee has failed to complete training through insufficient effort or application the Company will reimburse to the employee the cost of any authorised training fees associated with authorised training. Textbooks and other material associated with the training will be paid by the employee.

9. Award Provisions

The award provisions covering transfer of day workers to shift work, transfer of shift workers and transportation home from the plant when reasonable means of transport are not available shall apply to employees required to train.

Appendix 2

PERFORMANCE RECOGNITION PAYMENTS SCHEME

1. Parties To The Agreement.

This Agreement between OneSteel Manufacturing Pty Ltd Rod & Bar and the Unions stated below ("the parties") provides for a system of Performance Recognition Payments to be made quarterly to employees.

Unions party to this Agreement:

The Australian Workers Union, New South Wales

The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, New South Wales Branch

The Electrical Trades Union of Australia, New South Wales Branch, and

2. Purpose Of The Agreement

The parties acknowledge that the continued viability of the OneSteel Manufacturing Rod & Bar Mills is dependent on achieving significant gains in Business Performance. Hence, maintenance of existing benefits and the introduction of additional payments can only be justified and financially supported through constantly improving business performance.

Therefore it is the purpose of the Agreement to assist in achieving the critical business plan objectives. To this end, the parties commit themselves to co-operating in measures to achieve lower operating costs, improved quality, improved delivery performance and increased productivity, all of which will contribute to improved business performance and job security. Recognise the contribution of employees to improved performance as this occurs.

3. Quarterly Lump Sum Payment

In addition to other payments, there shall be a quarterly performance recognition payment directly related to business performance improvements as indicated by the performance against set targets.

The performance measures operating will be focused on specific critical improvement targets identified in the Business Plan. The specific measures and the targets will be reviewed at least annually following completion of the site Business Plan for each financial year, but may be reviewed more often if circumstances dictate such a need.

Payments under the scheme will be made at the end of each quarter, based on performance outcome against the targets and will be calculated as a percentage of each eligible employee's gross earnings for the quarter.

For the purpose of calculating payments under this scheme, gross earnings shall be defined as award rates, bonus, overtime payments, shift allowances and payments for periods of leave in that quarter.

Payments of up to 4.5% of quarterly gross earnings will be made for attainment of reasonably achievable performance targets; these payments can reach 5.5% in any quarter for achievement of exceptional levels of performance.

There shall be provision for a "top up" payment, to the 4.5% reasonably achievable level, in the final quarter of each year should the payments made for the individual quarters not reflect the full year's performance.

In the event of a catastrophe (such as a major fire) which occurs after targets have been set for a quarter, there will be a review of the targets so they remain reasonably achievable, notwithstanding the effects of the catastrophe.

4. Eligibility For Payment

Payments will be made to employees of OneSteel Manufacturing Pty Ltd in full-time or part-time employment on the Company's payroll at the end of the business quarter for which the payment is being made.

Full-time or part-time employees who leave at any time during a business quarter, other than those dismissed, will be eligible to participate in the scheme for that quarter. Only those eligible leavers who terminate during the final quarter of this scheme will be eligible for participation in the final quarter payment calculation referred to in Clause 3 above.

Individuals who have had their employment terminated due to extended compensation but who receive compensation payments through the payroll system are not entitled to participate in the scheme.

5. Procedures For Resolving Claims, Issues And Disputes

The parties to this agreement recognise that industrial disputation is damaging to the business and employees alike. It places at risk both the long term viability of the business and the employment security that it currently provides. It is also recognised that industrial stoppages will significantly reduce the potential payments flowing to employees from this scheme.

The parties acknowledge the procedures for resolving claims, issues and disputes as an Award clause and obligation to be observed by management, employees and the unions. It is the objective of the parties to this agreement that all issues and disputes shall be resolved through the agreed procedures without interruption to work.

6. Monitoring Of This Agreement

Each Department will undertake regular communication with employees and display and regularly update written reports/charts regarding performance of the measure(s) against the targets set. The parties agree to treat information relating to business performance as confidential.

Should the situation arise whereby payment for a quarter is significantly reduced, the parties will attempt to reach a common understanding of what factors have impacted on payment and set in place actions aimed at correcting performance. Should a dispute arise with respect to reduced payment under this scheme, the matter will be progressed by the parties through the Procedures for Resolving Claims, Issues and Disputes.

This agreement shall be subject to the "No extra claims" commitment in the terms given in this award.

R. W. HARRISON D.P.

____________________

Printed by the authority of the Industrial Registrar.

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