SANDVIK MATERIALS HANDLING ENTERPRISE BARGAINING AGREEMENT 2003.

AGREEMENT NO 2 OF 2004

  1. TITLE

This agreement shall be known as the Sandvik Materials Handling Enterprise Bargaining Agreement 2003.

  1. ARRANGEMENT
  1. Title
  2. Arrangement
  3. Area and Parties Bound
  4. Application
  5. Term
  6. Parent Award
  7. Background, General Work Principles
  8. Training/Development
  9. Overtime
  10. Remuneration
  11. Bonus Scheme
  12. Employment of Labour (Casual, Contract, Permanent)
  13. Long Service Leave
  14. Redundancies
  15. Retirees Entitlement Package
  16. Blood Donors Leave
  17. Income Protection
  18. Consultative Mechanism
  19. Reimbursement of costs for safety equipment and issue of work apparel
  20. Employee Relations Practice
  21. Apprenticeships
  22. Review of Agreement
  23. Signature of the Parties
  1. AREA AND PARTIES BOUND

a)This agreement shall apply to the operation of Sandvik Materials Handling Australia at it’s Bayswater Manufacturing Facility located at 285 Collier Road, BayswaterWESTERN AUSTRALIA 6053

b)The parties to this agreement shall be:

(i)Sandvik Materials Handling Australia (SMH) (The Company)

(ii)The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union of Workers (Western Australian Branch) (The Union)

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  1. APPLICATION

The terms of this Agreement shall be binding upon the Company, the Union and relevant employees numbering approximately eighty (80) from the end of September 2003, whose terms of employment are covered by the Parent Award.

  1. TERM

The term of this Agreement shall be for a period of 12 (twelve) months from 1 October 2003 to 30 September 2004.

  1. PARENT AWARD

a)The Parent Award to this agreement shall be the Metal Trades ( General) Award Number 13 of 1966.

b) Where there is inconsistency between the Parent Award and this Agreement, the provisions of this Agreement shall prevail to that inconsistency.

  1. BACKGROUND, GENERAL WORK PRINCIPLES

a)Due to the nature of the business and the market the company works in, it is essential that the company is able to maintain and improve market share by being in a position of absolute low cost manufacturing.

b)The parties accept and work towards ongoing development of a participative maintenance program, culture and practises aimed at increased machine availability.

d)In support of general competitiveness and of being a low cost manufacturer, it is essential that all parties to this agreement uphold quality principles attempting to achieve in all circumstances first time pass outcomes whilst minimising rework and waste.

e)All parties are totally committed towards achieving a safer working environment for all employees. Our effectiveness in this will result from continued input by all employees and acknowledgement and acceptance of relevant responsibilities by all parties concerned.

f)An environment of mutual honesty and trust will be complemented by business like behaviour and mutual respect gained through consultation and communications.

g)With the achievement of the above items we will enhance our customer relationships and thus promote our company’s abilities to win additional business aimed at ensuring longevity of employment and a profitable business with the ability of employees being able to share in those returns.

  1. TRAINING/DEVELOPMENT

It is recognised and accepted that to run an effective business it is critical that employees are cross skilled supporting the operation of all equipment. This outcome supports the redeployment of employees to additional skilled roles and future advancement. At Bayswater it is accepted that both the forklift and overhead crane are part of the normal duties of all employees at that facility thus supporting overall flexibility. Reclassification for employees will depend on the work they are undertaking, however with any disagreement being discussed between the Manufacturing Manager, the employee and if necessary the local union official and utilising other inputs as necessary.

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.

  1. OVERTIME

Where practical, employees will be provided with 48 hours notice prior to commencement of any overtime.

  1. REMUNERATION

A movement of 3.6% rate increase will be applied to all Sandvik Materials Handling, Bayswater facility employees commencing 1 October 2003 for the duration of the term of this agreement.

The table below specifies the hourly rates. All levels are relative to Tradespersons (C10):

CLASSIFICATIONSHOURLY RATE AS AT 1.10.2003

C9 – Tool Room$19.7403

C9$19.6844

C10 LH$19.6309

C10$18.7471

C11$17.4413

C12$16.5821

C13$16.0953

C14$14.6227

ApprenticesApprentices are to be paid at the percentages as set out in the parent award and those percentages are to be calculated using the rate for C10 as a base.

  1. BONUS SCHEME

It is agreed between the parties to investigate and if possible initiate a suitable scheme over the term of this agreement.

  1. EMPLOYMENT OF LABOUR (CASUAL, CONTRACT, PERMANENT)

It is accepted by all parties that from time to time the business needs may dictate the employment of suitably qualified personnel to meet short or ongoing needs. On the occasion that such needs occur it is agreed that management will discuss the business needs with the local union delegate and work towards a mutually satisfactory manning outcome meeting the relevant business needs and climate. All persons employed are to be paid the relevant rate for the work that they are undertaking in line with clause 9 above.

It is agreed that after three months (3) continuous work for Sandvik Materials Handling the conditions of employment for casual (agency) employees shall be reviewed in consultation with the Consultative Committee with an emphasis on permanent employment.

13.LONG SERVICE LEAVE

It is agreed that access to pro-rata Long Service Leave (LSL) commence at the completion of eight (8) years continuous service. Such access will include pay-out of pro-rata entitlements, as per the schedule below, on cessation of employment including resignation, termination and redundancies. Such accrual will be on the basis of thirteen (13) weeks entitlement over fifteen (15) years’ service as outlined in the schedule below:

Completed Year Service / Entitlement in Weeks / Equivalent Hours
8 / 6.9333 / 263.50
9 / 7.8000 / 296.40
10 / 8.6667 / 329.33
11 / 9.5333 / 362.30
12 / 10.4000 / 395.20
13 / 11.2667 / 428.13
14 / 12.1333 / 461.10
15 / 13.0000 / 494.00
Thereafter / 0.8667 weeks per year / 32.93 hours per year.
  1. 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:

  1. In recognition of continued service in excess of five (5) years, a further two (2) weeks severance will be added to, the provisions of the Parent Award, setting a maximum of ten (10) weeks for severance payments.
  2. A pay-out of the individual’s Sick Leave accruals on redundancies, based on unused portions of sick leave entitlements up to a maximum of Ten (10) weeks entitlements.

Such provisions will apply to employees with a minimum of on (1) completed year’s service only.

Any redundancies that are to be implemented during the period of this agreement will be assessed on a sectional basis i.e. Rolls, Roll Components, Frames, Pulleys, Maintenance and Indirects, 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 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:

  • Utilisation of available Annual Leave;
  • Utilisation of Long Service Leave in excess of thirteen (13) weeks;
  • Utilisation of pro-rata Long Service Leave;
  • Taking extended unpaid leave.
  • Transfer to another position in another section of the factory, on a permanent basis, if available, at the appropriate ordinary shop rate.
  • NB all 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 but not be restricted to 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.

  1. RETIREES ENTITLEMENT PACKAGE

In the event of any SMH employee retiring from the workforce, then the individual concerned will receive payment equivalent to what they would have received had the individual been made redundant subject to the following conditions:

Must have completed ten (10) years continuous service with Sandvik Materials Handling at the time of availing themselves of this benefit.

Must be fifty five (55) years of age and over at the time of availing themselves of this benefit.

Individuals resigning and/or terminated other than those subject to redundancies will not be entitled to the benefits of this clause.

Further this clause remains valid for a period of twelve (12) months to 30 September 2004, at which time it is managements intention to negotiate out this clause in any future agreements.

  1. BLOOD DONOR LEAVE

Employees are entitled to paid Blood Donor’s Leave on three (3) occasions for three (3) hours as long as medical evidence is provided. Where possible mobile services at the facility will be arranged.

  1. INCOME PROTECTION

The Company will continue to subscribe to an Income Protection Insurance scheme on the basis of current arrangements for all employees governed by this agreement.

All parties agree Sandvik Materials Handling will absorb all future increases for income protection.

  1. CONSULTATIVE MECHANISM

The Consultative Mechanism is vested with the joint consultative committee. Terms and Conditions of this agreement are negotiated and then monitored by the committee in office.

The Committee will comprise of one (1) individual from each section with a maximum of five (5) and up to four (4) management representatives in normal circumstances.

  1. REIMBURSEMENT OF COSTS FOR SAFETY EQUIPMENT AND ISSUES OF WORK APPAREL.
  1. Prescription Safety Glasses. An amount of Three Hundred and Twenty Dollars ($320) Subject to fair wear and tear. Will be available every two years, and be reimbursed on the production of original receipts with claims.
  1. Safety Boots – Employees have access to safety boots from a range of models based on current consumption trends determined by management subject to a maximum of $115.00 per pair. Replacement of such boots is set at one pair per year subject to fair wear and tear.
  1. The employee shall receive a Jacket (Bluey or duffle coat) of suitable fabric bearing the Sandvik Materials Handling Pty Ltd logo for use as and when required and where appropriate. Such jacket shall be issued once every two years, subject to fair wear and tear. The Joint Consultative Committee will select the appropriate jackets.
  1. EMPLOYEE RELATIONS PRACTICES.

A. Principles

  1. The parties accept and acknowledge each other’s structures and responsibilities which exist with the company.
  2. Parties commit to creating a safer and more competitive company in an international market place.
  3. The parties will promote the development of trust and motivation within the company.
  4. Honesty, mutual respect and a business-like behaviour will prevail at all times. Issues are to be resolved through consultation and communication.
  5. Every employee will be treated fairly and equitably in an environment that fosters communication, involvement and teamwork.
  6. 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 place 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 or union official.

Informal Discussion

Informal verbal discussion will occur between the employee and the immediate supervisor/coach. The supervisor/coach may keep a personal diary note.

First Warning

Should the employees behaviour/performance not improve then formal counselling will occur confirmed in writing to the employee.

Second Warning

Should the employees behaviour/performance not improve then following further counselling a formal written warning will be forthcoming to the employee.

Third Warning

A continuation of the non performance/behaviour or performance will result in a further counselling meeting with a Final written warning being provided to the employee.

All warnings are to clearly indicate and classify the lack of performance or unacceptable behaviour and will remain in place for a minimum of six months.

Dismissal

For continued unacceptable performance/behaviour, the employee will be terminated or demoted.

Resignation/Termination

Nothing in this procedure precludes an employee from resigning in preference to termination of employment or demotion.

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 but not limited to malingering, inefficiency, neglect of duty or theft.

Nothing in this procedure precludes the implementation of the Dispute Resolution Procedure.

C. Dispute Resolution Procedure.

  1. 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 no limit stop work meetings.

In the interest of sound employee relations, the most effective way to resolve problems including questions, disputes or difficulties arising under this agreement, is to communicate and seek solutions at the level at which problems occur.

  1. It is agreed that no industrial action will occur at any stage during this process.
  1. 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 will 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 or full time Union Official to represent them.

  1. APPRENTICESHIPS

It is agreed between the parties that the Bayswater facility is not in a position to maintain a fully indentured apprentice program. The management are however prepared to investigate the possibility of becoming a host business for this purpose over the term of this agreement.

  1. REVIEW OF AGREEMENT

The parties agree to review the contents of this agreement within three months prior the cessation of this agreement. It is further agreed between the parties that no additional claims will be made during the term of this agreement.

  1. SIGNATURE OF THE PARTIES

Signed for and on behalf of

SANDVIK MATERIALS HANDLING PTY LTD

Signature:

JOHN GOODALL

Name

HUMAN RESOURCES MANAGER - SANDVIK MATERIALS HANDLING PTY LTD

Position

Signed for and on behalf of

Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union of Workers’ (Western Australian Branch) (the union)

Signature:

Seal of the Union

Name

Position

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