Kiam KNR Plant Enhancement Kwinana Works Agreement 2001

No. AG 48 of 2001

SCHEDULE

1.  TITLE

This Agreement shall be known as the Kiam KNR Plant Enhancement Kwinana Works Agreement 2001

2.  ARRANGEMENT

Clause Clause Number

Title 1-0

Arrangement 2-0

Intent 3-0

Application and Scope of Agreement 4-0

Date and Period of Operation 5-0

Aims and Objectives 6-0

Strategies for Achieving the Aims of the Agreement 7-0

Work Practices and Conditions of Employment 8-0

Hours of Work and Overtime 9-0

Wages and Allowances 10-0

Superannuation 11-0

Tools 12-0

Income Protection 13-0

Safety and Protective Equipment 14-0

Alcohol and Drugs Policy 15-0

Inclement Weather 16-0

Grievance Procedure / Dispute Resolution 17-0

Not to be used as Precedent 18-0

No Extra Claims 19-0

Signature of the Parties 20-0

3-0 INTENT

3.1 The parties to this Agreement are committed to;

3.1.1 Efficient and timely completion of the Enhancement Works;

3.1.2 Increased flexibility reflected in productivity and efficiency which permits the utilisation of the full range of skills and experience; and

3.1.3  Ensuring there are no demarcation or industrial disputes during the life of the Enhancement Project Works.

3.2  Work covered by the scope of this Agreement is, in relation to the Enhancement Works Program, essential work that cannot be interrupted. The parties to this Agreement are committed to ensuring the Enhancement Works run smoothly and without disruption occasioned by industrial action.

4-0 APPLICATION AND SCOPE OF AGREEMENT

4.1 This agreement applies to and is binding upon Kiam, its Employees engaged to undertake Plant Enhancement Works at the Kwinana Nickel Refinery site and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU).

4.2  Except as expressly provided by this Agreement the terms and provisions of the Metal Trades (General) Award No. 13 of 1965, (the State Award) shall apply to the work.

4.3  Where there is any inconsistency between the terms of this Agreement and the State Award, this Agreement shall prevail to the extent of the inconsistency.

4.4  This Agreement shall not apply to any other aspect of Kiam's operation on the Kwinana Nickel Refinery site which is regulated by an in term industrial instrument.

4.5  This Agreement shall apply to approximately 15 persons employed on the Enhancement Works by Kiam.

5-0 DATE AND PERIOD OF OPERATION

This agreement shall come into force from 4th of February 2001 and shall remain in force until the 30th July 2001.

6-0 AIMS AND OBJECTIVES

6.1 Kiam aims to ensure the continued and long term viability of its operations, thus providing job security for its employees. Kiam also aim to provide a quality and committed service to the metal fabrication industry, and to be the preferred contractor to our clients in this industry. The parties to this Agreement recognise this aim requires a mutual commitment to developing and enacting a process of productivity and efficiency enhancement within Kiam.

To facilitate the achievement of this aim, the parties agree to pursue the following objectives.

6.1.1  To have a well trained, dedicated, motivated and highly competent workforce and management team;

6.1.2  To continually improve safety within the workplace and personal awareness of safety and correct procedures such that lost time injuries are trending towards zero and medical treatment injuries are substantially reduced;

6.1.3  To equal or better quality standards as required by the client with substantive reductions in rework and repairs within each project;

6.1.4  To foster an attitude of consensus and agreement based on consultation and negotiation at the workplace.

6.1.5  To foster improvements in productivity and efficiency at the workplace for the benefit of the company and its employees; and

6.1.6  To promote flexible and adaptive work practices by removing demarcation barriers, artificial manner levels, and encourage self-supervision and the use of initiative by employees.

6.2  The shared aim of this Agreement is to allow Kiam to provide a service of total quality and total commitment to the client.

6.3  This Agreement is in operation at the Kwinana Nickel Refinery to undertake the Enhancement Project, whereby Kiam will strive to maintain a multi-skilled and loyal workforce, it is intended to allow all parties to further enhance the skills and attributes during this project and maintain a consistent workforce where practical.

6.4  To support this aim, it has been agreed between Kiam and its employees that their joint aim is to be the preferred contractor to its clients and to maintain and enhance the multi-skilled aspects of the Kwinana Nickel Refinery.

7-0 STRATEGIES FOR ACHIEVING THE AIMS OF THE AGREEMENT

7.1 The parties agree to follow a strategy in relation to the achievement of the aims and objectives specified in Clause 6-0 Aims and Objectives of this Agreement.

7.2  The parties agree to establish or maintain a monitoring committee consisting of two (2) employees, the Kiam Site Engineer and the Superintendent. The committee would have the following responsibilities and aims.

7.2.1  To monitor the progress of productivity and efficiency initiatives resulting from the application of this Agreement, and to evaluate proposals offering potential productivity and/or flexibility enhancements;

7.2.2  To conduct on-going discussions on a monthly basis regarding productivity, work practices, employee relations and other general proposals aimed at improving Kiam’s operation at the Kwinana Nickel Refinery.

7.2.3  To utilise effectively the intellectual resources, skills and experience of members of the Kiam Enhancement Project (parties bound) workforce, and represent and consider the interests of both employees and management in rational discussions.

7.2.4  The Monitoring Committee will identify the key work processes, identify and develop Key Performance Indicators (KPI’s) against those processes to measure improved performance. The KPI’s will be identified, monitored and evaluated with the main focus on improving performance utilising measurement and learning, embracing the Australian Quality Council Framework.

8-0 WORK PRACTICES AND CONDITIONS OF EMPLOYMENT

8.1  The following strategies have been established with regard to the aims and objectives of this Agreement and form the basis of entitlement to the rates of pay specified in

Clause10-0 Wages and Allowances, of this Agreement.

8.2  Sick Leave / Absenteeism

8.2.1  The parties to this Agreement recognise the continued viability of Kiam’s operation is dependent on workforce and management commitment to the organisation. All employees will therefore, where possible, reduce absent / sick days taken.

8.2.2  The parties agree the entitlement to sick leave does not apply to an employee who fails to produce a certificate from a medical practitioner dated at the time of the absence or who fails to supply such other proof of the illness or injury as the employer may reasonably require, provided the employee shall not be required to produce a certificate from a medical practitioner, with respect to absences of two days or less unless after two such absences in any year of service the employer requests in writing the next and subsequent absences in that year if any, shall be accompanied by such certificate.

8.2.3  The parties agree that employees unable to attend work due to illness will notify the site within the first three hours of start of their shift. This will allow site management to ensure all employees have arrived at work or are accounted for.

8.2.4  The parties agree to simplify the application of the doctors certificate requirement that the count of sick leave taken be administered from 1st March through to 30thJuly of the same year.

Target – The target for this Agreement is that average sick leave taken should be not more than 25% of the award entitlement.

8.3  Workforce Flexibility

8.3.1  Flexibility – In the interest of developing a more highly skilled and flexible workforce and removing restrictive demarcation barriers from the workplace, employees shall carry out directions and duties that are within the scope of their skill and capability, ensuring the safety and quality requirements of the job are maintained.

8.3.2  Supervision to assist wages employees where practicable – Engineering, commissioning and supervisory staff must have the option to use tools when carrying out inspections, testing equipment, instructing / training employees or when in need of assistance to complete a job on time.

8.3.3  Overtime – Subject to Clause 14 - Overtime, of the Metal Trades (General) Award No. 13 of 1965, employees are required to work reasonable overtime at the direction of management. All hours worked in excess of eight (8) hours in any one day shall be paid at overtime rates.

Notification of the requirement to work overtime shall be made to employees no later than prior to the normal lunch break on the day. However, where it is necessary to cancel weekend overtime, employees affected will be advised of the cancellation prior to finishing time on Friday.

Target – To provide flexible service to KNR that allows for increased job satisfaction and associated improvements in productivity.

8.3.4  Self-Supervision – In keeping with the overall aims and objectives of this Agreement, and as a reflection of Kiam’s faith in the ability and dedication of its employees, it is a fundamental aim of this Agreement to promote the concept of self-supervision within its workforce.

Employees are to be encouraged to use their initiative and self-discipline to ensure their work is completed with as little supervision as possible. Employees shall also be encouraged to contribute ideas for productivity and efficiency enhancements and participate in decision making processes via the monitoring committee, as well a suggestion box and direct communications.

Employees should at all times share with management a sense of responsibility for safety and quality of work at the workplace. A culture of dual commitment and responsibility is essential for the long term viability of Kiam’s operation and for optimal job satisfaction and personal development.

Target – Reduce the number of supervisors and support personnel through increased self supervision and quality awareness by employees at source.

8.3.5  Workload Fluctuations

In an effort to enhance the flexibility and efficiency of Kiam’s KNR operation a number of avenues have been identified by which to improve handling of fluctuations in workload so as to minimise any necessary reductions in the workforce. Some of these avenues have been reflected throughout this Agreement and this subclause specifically address the use of annual leave accruals.

In order that annual leave be used as a mechanism to provide flexibility as well as break for employees, management and individual employees shall endeavour to schedule annual leave at a time that is mutually suitable to both parties. Where employees have more than four (4) weeks accumulated annual leave, then the employer can request that part or all of the excess be taken provided it is a minimum of one (1) week and also prior agreement had not been reached as to accumulating leave for special reasons.

8.3.6  Training

Kiam is committed to helping its employees to attain higher levels of skill and competency in areas that benefit the company. The following areas have been identified as potential areas of focus:

·  Technical

·  Interpersonal communications

·  Safety

·  English

·  Job Instructions

·  Quality of Work

8.3.7  Best Practice

The parties agree to assess and implement methods by which “best practice” techniques involving optimal flexibility and efficiency may be introduced. Areas of focus include:

8.3.7.1 Workplace Injuries – The parties agree to develop ways to reduce the occurrence of injuries within the workplace. A benchmark and incentive scheme based on accumulated hours without injury shall be developed and implemented through a continuous improvement program in safety by applying real improvements in workplace protection, safety training and awareness.

Target Continue to reduce both the frequency and severity of injuries by at least 100% during the life of this Agreement, Kiam target “zero” injuries.

Use of Consumables – Employees will reduce the levels of consumables used. Consumables include, but are not limited to: safety glasses; gloves; tools; welding equipment; ear plugs; safety boots; grinding disks; steel markers; electrodes and gas. Employees will be encouraged to take responsibility for monitoring and improving on levels of use of consumables.

Target - Reduce Waste.

Comfort Support – The provision of tea, coffee, milk and sugar is to be maintained, provided this provision continues to be sensibly utilised.
Raw Materials – The parties agree to take steps to reduce the levels of wastage of raw materials. The parties will develop methods of reducing raw material wastage. Storage of useful off-cuts and fabrication aids capable of re-use, is to be targeted.

Target – Reduce wastage and clean-up requirements. Provide fabrication support closer to the actual activity.

Quality / Rework –The Monitoring Committee will address work quality. The committee will put into place a system of assessing and evaluating the quality of work carried out at the refinery.

The committee will establish a current level of defects. This level will be evaluated in regard to the current productivity. An action plan will then be established in regard to maintaining or reducing (if necessary) the quantity of work.

8.3.7  Communication

The parties agree to take steps to improve and enhance communication between employees and management / supervisors through:

·  Tool Box Talks

·  Management Report Back Meetings with all employees

·  Monitoring Committee Meetings

·  Suggestion Systems

·  Noticeboards

·  Newsletters / Bulletins

9-0 HOURS OF WORK AND OVERTIME

9.1 The daily ordinary hours of work at the Kwinana Nickel Refinery shall be 7.6 hours, resulting in a 38 hour, five (5) day week. Any hours worked in excess of 7.6 hours in any day, Monday through to Friday shall be paid that overtime rate.

9.2  The working day shall consist of 7.6 hours including a 30 minute unpaid meal break, and one paid rest break which will be scheduled during the day. The hours of work will be arranged so as to suit the requirements of the work, and will be worked over five (5) days of the week, Monday through to Friday inclusive.

9.3  Lunch and Smoko breaks may be taken as has been the custom and practice, being staggered or altered by management in order to meet operational requirements.

10-0 WAGES AND ALLOWANCES

10.1  Wages

Employees will be paid for 38 ordinary hours work in accordance with the following: