AGGA Submission to the Fair Work Review
The Australian Glass & Glazing Association (AGGA) welcomes the opportunity to make a submission on the Fair Work Act.
The AGGA is the peak industry body for the Australian glass and glazing industry. Membership is comprised of over 650 manufacturers, processors, installers, glaziers and suppliers to the building and construction industry.
During the past few years our industry has invested heavily in machinery to produce energy efficient glass products for the building and construction industry. AGGA member products provide solutions and economical means of achieving increased energy efficiency as prescribed by new building regulations. These manufacturers are heavily trade-exposed and issues related to the Fair Work Act will result in businesses shrinking and job losses.
The issue we are concerned with is increasing costs, which results in making Australian processors and manufacturers less competitive.
Since the introduction of the Modern Awards businesses in our industry have experienced problems that are detrimental to both employment opportunities and business profitability resulting from the changes between the old State Awards and the Modern Awards.
In the request to undertake award modernisation by Julia Gillard to the President of the Australian Industrial Relations Commission on 28 March 2008, it was made clear that the creation of modern awards was not intended to increase costs to employers. The modern award process was to “be economically sustainable and promote flexible modern work practices and the efficient and productive performance of work”. This document outlines our concerns of how these intentions and objectives are not being achieved.
Shift penalties
By the first of July 2014, when the transitional provisions cease, afternoon and night shift allowances will have increased by 50%. As you can see from the comparison in attachment 1, this is a significant increase from the shift allowances that were paid under the pre-modernised awards. In addition, if you compare the Joinery award to the standard in non-construction (i.e. manufacturing, pharmaceutical and textile industries) the Joinery award pays significantly higher whilst the hours worked and the general type of activity is similar to that covered by these awards. Some employers have reduced either the staffing level or the number of shifts as a result of the higher Shift Penalty Rates.
Attached are examples from Viridian and Flat Glass Industries which are typical of the problems that employers have in our industry. The CFMEU have agreed with some employers to maintain the shift allowances from the NSW State Glass Workers Award as shown in clauses 9.4 and 9.5 and 9.6 of the Enterprise Bargain known as “G James Safety Glass Pty Ltd Enterprise Agreement 2011”(extract attached). This problem can be remedied by inserting clauses into the Modern Joiners Award similar to those in the G James Enterprise Agreement.
Shift work overtime
The modern award currently requires all overtime worked by shift workers to be paid at double time. The previous awards that our glass processing factories worked under provided time and a half for the first two hours and double time thereafter, which is the general standard in most non-construction awards.
Rostered Days Off
The modern award currently requires a ‘rostered day off’ (RDO) system, unless otherwise agreed in writing with the majority of employees. Supply our customers Monday to Friday, RDOs area a significant cost impost to our factories working under the award. The needs of the business as well as employees must be taken into account when setting conditions of employment in awards.
Glaziers Coverage
The transferring of the Glass and Glazing Industry from various state awards to the Joinery and Building Trades Award (MA000029) has resulted in significant increased costs. For example the NSW Glass Workers Award covered glazing work in all situations but the Modern Joinery Award is restricted to glazing ‘in domestic on-site situations’. This problem is understood when comparing Clause 3.1(b) of the Modern Joiners Award with Clause 15 of the State Glass Workers Award. Clause 15 of the State Glass Workers Award defined Construction Work for the purpose of the award. Clause 3.1(b) of the Modern Joiners Award limits glazing work to “domestic on-site situations” only. The result of this is that many employees who perform work in all situations now cannot be covered solely by one award and employers have to pay the employee at different times under different awards when they are performing the same type of work but in different situations. The Joinery and Building Trades Award when working on domestic glazing OR the Building and Construction General On-Site Award when working on other building sites.
This problem could be remedied by rewording clause 3.1(b) to say:
(b) the fitting and/or fixing in position of all types of glass used in the trade, as well as louvers, spandrel panels, glazing bars, clear plastic, or glass lenses or prisms in domestic or on site situations.
Ten Hour Break
The NSW Glass Workers Award exempted glaziers from the requirement for an eight hour break before resuming normal working hours provided the time worked was for an emergency glazing callout. This exemption was not included in the Modern Joiners Award resulting in the need for a glazier to have a ten hour break before resuming work. Clause 33.4(e) of the State Glass Workers Award stated ‘It is specifically agreed between the respondents to this award that call-outs are in no way affected by the provisions of paragraph (a) of this subclause.’ This exempted a glazier performing an emergency glazing call-out from the requirement for an eight hour break before resuming normal work. The Modern Joiners Award does not have a similar exemption and this has created a situation that has led to some companies refusing to offer emergency glazing services and not providing employees with the additional income from this type of work or they are finding creative ways to circumvent the requirements of the Award.
This problem can be remedied by inserting clauses similar to those from the NSW Glass Workers Award Clause 10.1 and 33.4(e).
Transitioning
The transition of wages and allowances has become confusing due to many employees performing ‘Commercial Glazing Work’ who were covered by the NSW Glass Workers Award but who cannot now be covered by the Modern Joinery Award. Resultantly, they need to have their wages transitioned from the Glass Workers Award to the ‘Modern Building and Construction Award (MA000020)’. PayCheckPlus cannot perform this transition further complicating the matter.
This problem is an extension of the glaziers coverage issue highlighted earlier. Employees that were covered by the NSW Glass Workers Award performing work on commercial building sites cannot be covered by the Modern Joinery Award. These employees now have to be covered by the Modern Building and Construction Award and the system of transitioning Wages and Allowances between these two awards is unclear. The Fair Work Australia Ombudsman has been asked to include this transition in the PayCheckPlus online system but we have been informed by the NSW Business Chamber that the Ombudsman is unable to do so for reasons unclear to the Chamber This has led to at least one dispute between the CFMEU and one of our member companies about the correct wage rates for an apprentice. This dispute has been discussed since October 2010 and may have to be resolved by court action.
The Australian manufacturing industry generally is struggling to survive in the current environment. More specifically, the Australian glass and glazing industry is suffering with importers being able to bring in glass and finished products well below our costs.
The increase in shift allowances and overtime to shift workers, as well as the problems created by rostered days off, make it even more difficult for the companies to survive and to provide jobs for people.
We need an award applicable to factories and installers that reflects the norms of non-construction industry conditions of employment, as existed in our industry prior to the award modernisation process.
Yours sincerely,
Nigel Carpenter
Executive Director
Attachments
1. Copy of a Letter from Viridian related to Shift Work Penalty Rates (3 pages)
2. Copy of an Email from Flat Glass Industries related to Shift Work Allowances
3. Extract from the NSW Glass Workers Award related to Rest Periods after Overtime
4. Extract from the G James Safety Glass Pty Ltd Enterprise Agreement 2011 (Ref AE888914 PR515819)