1
PROK GROUP ENTERPRISE BARGAINING INDUSTRIAL AGREEMENT 1999
No. AG 221 of 1999
TITLE
This Agreement shall be known as the PROK GROUP ENTERPRISEBARGAINING INDUSTRIAL AGREEMENT 1999 replacing the PROK GroupEnterprise Bargaining Industrial Agreement 1998 AG 40 of 1998
ARRANGEMENT
Title and Arrangement
Area and Parties Bound
Application
Term
Parent Award
Background
Work Teams
Maintenance
Quality
Occupational Health and Safety
Flexibility
Reclassification
Remuneration
Gain-sharing
Casual and Contract Labour
Redundancies
Register of Terminated Employees
Income Protection
Contractual Entitlements
Consultative Mechanism
Employee Relations
Review of Agreement
Signature of Parties
AREA AND PARTIES BOUND
(a)This Agreement shall apply to the operation of PROK Group Limited at its Bayswater manufacturing facility located at 285 Collier Road Bayswater Western Australia 6053.
(b)The Parties to this Agreement shall be:
(i)PROK Group Limited (the company);
(ii)Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union of Workers' (WA Branch) (the Union).
APPLICATION
The terms of this Agreement shall be binding upon the company, the union and the employees (totalling approximately ninety-eight (98) as at the end of the September 1999), of the company whose terms of employment are covered by the parent award.
TERM
The term of this Agreement shall be for a period of twelve (12) months from 1st October 1999 to 30th September 2000.
The subsequent Agreement will be negotiated between the parties for a further term maturing 30th June 2001.
PARENT AWARD
(a)The parent award to this Agreement shall be the Metal Trades (General) Award Number 13 of 1966.
(b)Where there is any inconsistency between the parent award and this Agreement, the provisions of this Agreement shall prevail to that inconsistency. All matters relating to award interpretation refer to the award as it stands at 1st November 1999
BACKGROUND
Due to the nature of the business and market the company operates in, it is essential that the company is able to maintain and improve market share by being able to be in a position of absolute low cost manufacture. To meet this objective, a series of Key Performance Indicators (KPI's) have been identified to help drive the business in the right direction.
The two (2) cornerstones of the Agreement are:
1.For the company to become the most cost effective manufacturing facility within Australia through the continuous achievement of:
- Standard versus paid productivity rates in excess of 85%;
- An on-time delivery accuracy target of 85%;
iii.Manufacturing cycle times of three (3) weeks or less;
iv.Raw material waste of less then 5%.
2.For the company to become the safest benchmarked manufacturing facility within Australia. The emphasis on this program is to ensure that the quality of life is improved and all employees at the company contribute towards the process.
WORK TEAMS
The parties are fully committed to the continued implementation of cellular workteams in all sections of the manufacturing facility. This commitment will be reflected in the following work ethics:
The adoption of a formalised agenda, established goals and objectives and an acceptable code of conduct at all work-team meetings;
All employees to be more actively involved in problem-solving and decision making in relation to daily work;
Weekly work-team meetings to provide the forum for the exchange of ideas, information and the enhancement of co-operation within the work-team and with other work-teams;
Work-teams actively develop and implement visual performance measures, based on the KPI's outlined in this document;
An agreed document "PROK Manufacturing Team Structure" has been developed, and is to be implemented, without prejudice on signature of agreement;
To take staggered tea and meal breaks as required to enable continuous production.
MAINTENANCE
The company and employees commit to the ongoing development, and participation of preventative maintenance practices, culture and system of work aimed primarily at increased machine availability. The measures that have been identified to achieve this are:
Maintenance analysis and measurement.
Benchmarking of other similar plants.
Development of a maintenance management system.
Implementation of a preventative maintenance system.
Identify and manage areas of process viability.
Ensure planning, communication and information sharing in regards to maintenance activities.
Ensure more preventative maintenance focus in daily production meetings.
Link maintenance with KPI'S.
Manufacturing personnel to carry out and participate in, inspection, lubrication and greasing of machinery to support the maintenance focus.
To attain the desired objectives, it is recognised that involvement and input is imperative from the teams and employees when carrying out not only planned maintenance but also reactive maintenance.
QUALITY
To remain a viable and low cost manufacturer it is also essential not to lose focus on the quality of the process and product that is manufactured at Prok. The following issues have been identified as critical in maintaining current quality standards and establishing a mechanism for continuous improvements in this area:
Compliance to the procedure established in the management system which is covered within the Certification of Company to ISO 9001.
Continuous feedback on customer issues.
Reports on quality issues at daily production meetings.
Review of plant layouts and work designs with a view to eliminate error and waste.
Improved utilisation of quality tools such as Statistical Process Control techniques and other problem solving techniques including Pareto Charts, Fishbone Charts, Team Brainstorming and other techniques which are found to be appropriate.
All employees commit to the development, establishment and implementation and improvement of standard operating procedures in all areas of the process and plant.
OCCUPATIONAL HEALTH AND SAFETY
The parties are totally committed towards achieving the successful implementation of all phases of the Worksafe WA Safety Program initiative, culminating with accreditation to Silver Status.
The Health and Safety Committee will continue to develop strategies and implement agreed initiatives that will achieve the desired Key Performance Indicators (KPI’s) that are set out below:
LTI severity rates below 69 (number of hours lost per million hours worked).
LTI frequency rates below 29 (number of lost time incidents per million man hours worked).
Absenteeism rates below 2% (number of hours absent/total of hours worked).
Working towards the successful implementation of Worksafe WA.
Successful programme of risk analysis of machinery within PROK plant.
Hazard close-out rate of 90% within four (4) weeks;
During the course of this Agreement the parties agree and commit to the full establishment of non-smoking premises. The company commits to assist any employee who wishes to participate in a Quit Program. The cost of nicotine patches will be reimbursed to employees who successfully quit smoking during the term of this agreement.
All employees commit to the involvement and participation of a vigorous house-keeping program, endorsed by the OHS Committee, with the aim being to have a plant, which all employees can be proud of.
FLEXIBILITY
It is recognised that certain machines and process areas of the plant are critical to productivity and improved output and that continued production is required to support the aim of the organisation to maximise output and improve productivity. It is also recognised that both the fork-lift and overhead crane are a part of the normal duties of all employees at PROK, and to permit flexibility, will be used by all employees.
Work performance assessments will also be undertaken with employee's during the course of the agreement which will include quality and quantity of output, preparedness to change and work flexibility, communication and teamwork with other employees, general conduct, attendance and punctuality.
RECLASSIFICATION
It is recognised that during the course of continued employment, employees enhance their skill levels. To complement carreer prospects at PROK, employees will be given access to a Reclassification exercise.
The reclassification will be governed by the parameters set out in the Metal Trades General Award, Clause 5(3). The reassessment and reclassification of the employee/s' skill levels must be unanimously agreed upon and approved by all the following:
the Manufacturing Manager
the related Coach
a Union delegate
a related Tradesperson
In the absence of agreement on the reclassification in a particular instance, the parties agree to consult an independent Workplace Assessor whose decision will be final.
REMUNERATION
A 2% base rate increase will be applied to all PROK employees in the first pay period commencing 3rd January 2000.
GAIN-SHARING
Identification Key Perfon-nance Indicators (KPI's) are continuing and will be discussed and developed further with the Consultative Committee.
Issues being pursued include a percentage of over-absorption.
Upon agreement, the KPI's will be implemented during the term of this agreement.
CASUAL AND CONTRACT LABOUR
The parties to this agreement confirm their commitment to permanent employment.
Casual and/or contract labour will only be engaged if existing employees do not have the appropriate skills for a particular task or to get through a production peak, where it is not possible to overcome the production peak or bottleneck by rotating or utilising existing employees from other production areas of the factory.
Casual/Contract employees will be engaged for an initial period not exceeding twelve consecutive weeks. After this twelve-week period, if the employee is still required, he or she will be engaged for a further twelve-week period under the same terms and conditions. In the event the particular individual is still required beyond the twenty four week period, arrangements will be made to employ the individual on a permanent basis.
It is further agreed that in the event the ratio of Casual/Contract employees to permanent employees is to exceed twenty (20) percent, such increase will not be implemented without prior consultation with the Consultative Committee.
REDUNDANCIES
Both parties agree that at least one week's notice will be provided for any impending redundancies.
In addition to the redundancy provisions as contained in the parent award, the following will be awarded:
A maximum of Eight (8) week's sick leave entitlement or unused sick leave entitlement, whichever is the lesser.
Such provisions will apply to employees with a minimum of one (1) completed year's service only.
Any redundancies that are to be implemented during the period of this agreement will be by section basis, in order to maximise productivity of retained employees. The Company will initially call for Voluntary Redundancies, however it is under no obligation to accept each or any of the nominee/s who advise they are willing to take a voluntary redundancy. The Company will provide employees concerned and the union with written information concerning the proposed redundancies, including the reasons for the redundancy, number of and section of employee's affected, future base employee size in that section and the period of time over which the redundancies will take place.
Both parties agree to explore and discuss alternatives to redundancy, such as, but not restricted to:
Taking extended unpaid leave
Using accrued annual leave
Transfer to another position in another section of the factory, on a permanent basis, if available, at the appropriate ordinary shop rate.
NBall entitlements prior to the change in position will remain at the applicable rate prior to the change in position.
Job sharing
Fair and objective selection criteria will be used on deciding which employees will be redundant from a section. These will include a match of knowledge, skills and ability to current and future jobs, versatility and flexibility of skills, potential to acquire future skills and length of service.
REGISTER OF TERMINATED EMPLOYEES
All employees terminated as a result of redundancies, will be placed on a register. This register will be referred to in the event of future vacancies occurring, and the individuals with the relevant skills will be offered the position, should they be available.
INCOME PROTECTION
The Company will continue to subscribe to an approved Income Protection Insurance scheme on the basis of current arrangements for all employees governed by this agreement.
Any savings derived in the variance in premiums for similar cover between the existing scheme (previously administered by ACTU Insurance Broking Pty Ltd and now by Heathbroking Company) and the intended insurer, will be contributed to each employee's superannuation fund.
Such contribution will continue, but limited to the variance, for as long as there exists a variance between the premiums in the aforementioned covers.
CONTRACTUAL ENTITLEMENTS
The Company gives an undertaking to guarantee payment of all employee-related contractual benefits. The Company will also comply with legislative changes, as and when they occur, requiring a third party to administer employee-related contractual benefits.
CONSULTATIVE MECHANISM
The Consultative Mechanism is vested with the Joint Consultative Committee. All issues, initiatives, agreed positions and general matters pertaining to the Terms and Conditions of this Enterprise Bargaining Agreement will be negotiated and monitored by the Joint Consultative Committee in office.
The Committee will comprise of one (1) individual from each section.
EMPLOYEE RELATIONS PRACTICE
a)Principles
i.The parties accept and acknowledge each others structures and responsibilities which exist with the company.
ii.Parties commit to creating a safer and more competitive company in an international market place.
iii. The parties will promote the development of trust and motivation within the company.
iv.Honesty, mutual respect and a business-like behaviour will prevail at all times. Issues are to be resolved through consultation and communication.
v.Every employee will be treated fairly and equitably in an environment that fosters communication, involvement and teamwork.
vi.Counselling and discipline procedures will be followed by both parties, as outlined below.
b)Counselling and Disciplinary Practice
Where in the opinion of the management, an employee's conduct, behaviour or work performance is unacceptable, the following procedure will be followed:
At all stages of this procedure, the employee may request the presence and assistance of another employee, Shop Steward or Union official.
i.First Warning
Informal verbal discussion will occur between the employee and the immediate Supervisor/Coach. The Supervisor/Coach may keep a personal diary note.
ii.Second Warning
If the employee's behaviour or performance does not improve, then further counselling and a formal verbal warning will be given.
iii.Third Warning
iv.If the employee's behaviour or performance still remains unacceptable, his or her manager will counsel the employee and a formal written warning will be issued to the employee.
The written warning will clearly state the unacceptable conduct and define what is required by the employee to remedy the problem.
v.Fourth Warning
If the employee's performanceibehaviour is still unacceptable, the employee will be counselled further and issued with a final written warning.
The written warning will state clearly that if the employee's perfortnanceibehaviour and conduct does not improve, then demotion or termination may occur.
vi.Warnings will remain in force for a six month duration.
vii.Dismissal
For continued unacceptable performanceibehaviour, the employee will be terminated or demoted.
viii.Resignation/Termination
Nothing in this procedure precludes an employee from resigning in preference to termination of employment or demotion.
ix.Company Discretion
This procedure does not affect the employer's right to terminate an employee's services without notice for conduct that justifies instant dismissal, including malingering, inefficiency, neglect of duty or theft.
x.Nothing in this procedure precludes the implementation of the Disputes Settlement Procedure (Clause 34 Metal Trades (General) Award).
c)Dispute Settlement Procedure
i.The parties agree that open communication is fundamental to sound employee relations. The disputes procedure has been agreed by the parties to enable potential disputes to be resolved amicably, without loss of wages or production. It is the desire of the parties to make strikes unnecessary and to limit stop work meetings.
In the interest of sound employee relations, the most effective way to resolve problems including questions, disputes or difficulties an'sing under this agreement, is to communicate and seek solutions at the level at which problems occur.
ii.It is agreed that no industrial action will occur until the following procedure has been followed in all stages:
The status quo will be maintained whilst the procedure is being followed:
iii.Stage 1
Employee/s will discuss the question, dispute or difficulties with their supervisor who will attempt to resolve the issue/s expeditiously and within a mutually agreed time frame.
Stage 2
If the matter is not resolved, the supervisor or employee/s will refer it to their manager who will endeavour to resolve the matter expeditiously in an agreed time frame.
Stage 3
If the matter still remains unresolved then either party will refer the matter to the Managing Director who will endeavour to resolve the issue expeditiously and in an agreed time frame.
Stage 4
At the conclusion of Stage 3, if the matter still remains unresolved, then either party may refer the matter to the Western Australian Industrial Relations Commission for resolution or determination.
At any or all stages of the above procedure, the employee/s may request the assistance of a fellow employee, Shop Steward or full time Union Official to represent them.
REVIEW OF AGREEMENT
The parties will review the contents of this Agreement three (3) months prior to the cessation of this Agreement. Such a review is expected to result in a renegotiation, renewal or replacement of this Agreement.
It is further agreed between the Parties that no additional claims will be made during the term of this Agreement.
SIGNATURE OF THE PARTIES
Signed for and on behalf of
PROK GROUP LIMITED
Signature:
ASKO KANKAANPAA
Name
MANAGING DIRECTOR
Position
Signed for and on behalf of
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union of Workers' (Western Australia Branch) (the union)
Seal of the Union
JOHN SHARP-COLLETT
Name
STATE SECRETARY
Position
VARIATIONRECORD
PROK GROUP ENTERPRISE BARGAINING INDUSTRIAL AGREEMENT 1999No. AG 221 of 1999
Delivered at 29/03/00 80 WAIG 1565
Consolidated
CLAUSE NO. / EXTENT OF VARIATION / ORDER NO. / OPERATIVE DATE / GAZETTE REFERENCE