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westrac equipment (Service department) Enterprise

Bargaining Agreement 1994

No. AG 4 of 1994

1.-TITLE

This Agreement shall be known as the WesTrac Equipment (Service Department) Enterprise Bargaining Agreement 1994.

2.-ARRANGEMENT

1.Title

2.Arrangement

3.Parties to the Agreement and Incidence

4.State Wage Principles

5.Date of Operation and Term

6.Relationship to Other Awards

7.Structural Efficiency Principle

8.Measures to Effect Real Gains in Productivity

9.Wages

10.Extended Hours and Overtime

11.Leave Loading

12.Taking of Annual Leave and Time Off in Lieu of Overtime Payment

13.Dispute Settlement

14.Single Bargaining Unit

Signatories

Appendix - WesTrac Productivity Measures and Targets

3.-PARTIESTOTHEAGREEMENTANDINCIDENCE

The parties to this Agreement are WesTrac Equipment Pty Ltd ("the Company"), the Metals and Engineering Workers' Union - Western Australian Branch and the Australian Electrical, Electronics, Foundry and Engineering Union (Western Australian Branch), ("the Unions").

This Agreement shall apply to the Company's wages employees in the Service Department in the Perth metropolitan area and Regional Branches.

4.-STATEWAGEPRINCIPLES

(1)The parties accept that they are bound by the terms of this Agreement throughout its duration and they will oppose any application by other parties to be joined to this Enterprise Bargaining Agreement.

(2)It is a condition of this Agreement that there will not be any extra claims made for the life of this Agreement, except when consistent with a National Wage Case Decision endorsed by the Western Australian Industrial Relations Commission.

(3)The terms of this Agreement shall not be used as a precedent to obtain similar arrangements or benefits in another enterprise.

(4)The parties intend to meet the terms of this Agreement notwithstanding the provisions of any other award by which they are covered, provided that implementation of the Agreement shall not cause an employee to suffer a reduction in ordinary time earnings or in the Western Australian Industrial Relations Commission standards for hours of work, annual leave with pay or long service leave with pay.

(5)The majority of employees affected by the changes proposed in the Agreement genuinely agree to those changes.

5.-DATEOFOPERATIONANDTERM

(1)This Agreement shall operate on and from the 1st day of February, 1994 and shall operate for a period of 18 months.

(2)The parties stipulate that their commitment to this Agreement precludes the availability of variation or cancellation during its term.

(3)The parties are committed to commencing renegotiation of a further Agreement at least three months prior to the expiration of this Agreement. These negotiations will include an assessment of overall progress achieved under this Agreement.

6.-RELATIONSHIPTOOTHERAWARDS

Except as provided for by this Agreement, the general terms and conditions of employment shall be as prescribed by Part 1 - General of the Metal Trades (General) Award 1966 No. 13 of 1965 and the Electrical Contracting Industry Award No. R 22 of 1978, both as amended as the operative date of this Agreement. This Agreement shall be interpreted in conjunction with those awards.

7.-STRUCTURALEFFICIENCYPRINCIPLE

(1)This Agreement builds on the progress achieved to date through the implementation of the Structural Efficiency Principle.

(2)The parties have examined and continue to examine a range of non-award and award matters.

(3)The parties have substantially implemented the provisions required under the Structural Efficiency Principle. They agree that aspects of the Structural Efficiency Principle are ongoing and will continue to form part of the structural workplace reform process. These include:

(a)Regular meetings of the Consultative Committee to enable sharing of information and joint problem solving instrumental in increasing productivity and efficiency;

(b)Development of skills based career structures which provide employees with better understanding of, and skills appropriate to, improving productivity, efficiency and quality; and

(c)Devolving responsibility for these outcomes to source with working arrangements consistent with the enhancement of flexibility in a team work environment;

(d)Further implementation and monitoring of on-and-off-the-job training, to support the above, through the Consultative Committee.

8.-MEASURESTOEFFECTREALGAINSINPRODUCTIVITY

The parties agree to implement and monitor the following initiatives designed to improve performance and safety in critical areas of activity including customer focus, quality, employee development and work organisation and systems:

(1)Support and co-operate to achieve quality accreditation to AS3902.

(2)Develop a performance appraisal procedure of which is fair and will provide all employees with useful feedback on improving their performance.

(3)Improve Company communication by providing or requesting representation when appropriate to and from other Departments, to give or gain direct information about the needs or workings of the various Departments.

(4)Establish work teams in every section, ensuring that regular team and store meetings are held, objectives and targets are set, agreed, reviewed and updated and that the whole initiative is supported by a supervisor and staff education program.

In particular, team meetings shall focus on improvements that relate to re-work, repair and maintenance, tool replacement and service supply, in order to reach productivity targets (see Appendix "WesTrac Productivity Measures" to this Agreement).

(5)Decrease wastage of consumables and maximise utilisation of same through a program of employee education, identification of high usage consumables, development of alternative work methods and products and the monitoring of progress towards targeted reductions.

(6)Establish better working relationships with EPSA through direct contact, putting together a package to meet their needs with ongoing follow up.

(7)Improve small customer service and after service follow up, reorganising practices and procedures to suit the small customer.

(8)Ensure a high standard of housekeeping is maintained in support of the initiative outlined in subclause (7) of this clause.

(9)Develop employee skills for increased competency and flexibility through an increased participation rate in merit training and testing.

(10)Investigate, introduce and train staff in the use of appropriate technology to improve communication systems to eliminate customer delays, provide better customer access after hours and remove inefficiencies which occur when other Departments receive after hours calls intended for Service.

(11)Improve the organisation of employee availability for on-site labour, ensuring that labour allocation does not disrupt local production and that an appropriate training package is delivered to participating employees.

(12)Extend employee coverage on Friday afternoons in line with customer requirements.

See Appendix - WesTrac Productivity Measures and Targets.

9.-WAGES

The wage increases payable under this Agreement are as follows:

(1)On ratification of the Agreement by the Western Australian Industrial Relations Commission: a 4% increase.

(2)Six (6) months from the date of ratification: a further 2% increase.

(3)Twelve (12) months from the date of ratification: a further 2% increase.

10.-EXTENDEDHOURSANDOVERTIME

(1)The Company shall offer and the employees shall work two hours of overtime per week, in order to meet customer requirements, as follows:

(a)Day shift: the two hours of overtime shall be worked on Friday afternoons.

(b)Afternoon shift: the two hours overtime shall be worked by extending the end of each shift from Monday to Thursday by one half hour.

(2)The overtime so worked shall be compensated for in the following manner:

(a)Payment shall be made at ordinary time for the two hours worked; such payment shall be made for 52 weeks per year; and

(b)Five days time off in lieu of payment for overtime so worked shall be taken in conjunction with annual leave, provided that these five days shall not attract annual leave loading.

11.-LEAVELOADING

(1)An annual leave loading equivalent to 17.5% of the rate payable for a 38 hour week shall be paid to each employee on his or her four weeks' annual leave entitlement.

(2)For administrative efficiency, this loading shall be averaged at the rate of 13.3%, over five weeks made up of each employee's four weeks' annual leave and entitlement to five days' time off in lieu payable instead of overtime, in accordance with Clause 10. - Extended Hours and Overtime of this Agreement.

12.-TAKINGOFANNUALLEAVEANDTIMEOFFINLIEUOFOVERTIME PAYMENT

The following subclauses (1) to (4) of this clause apply to the taking of periods of annual leave and the time off in lieu of payment for overtime provided for in Clause 10. - Extended Hours and Overtime of this Agreement.

(1)All applications for leave, whether for time off in lieu of payment for overtime or for annual leave, shall for administrative purposes, be made and processed in the same manner as for annual leave.

(2)Leave shall be taken in periods of one day or more.

(3)Leave shall be taken within 12 months of the date of accrual wherever possible.

(4)Leave shall not in any event, accrue for more than two years. Where accrued leave exceeds 10 weeks (400 hours), employees will be requested to take all or part of the accumulated leave.

13.-DISPUTESETTLEMENT

(1)The dispute settling procedure prescribed in Clause 34. - Avoidance of Industrial Disputes in the Metal Trades (General) Award 1966 No. 13 of 1965 shall be followed.

(2)In the spirit of this Agreement, consultation on problems shall be given the earliest priority by all parties.

14.-SINGLEBARGAININGUNIT

(1)This Enterprise Bargaining Agreement was negotiated by a single bargaining unit formed by the parties and representative of shopfloor and managerial employees of the Company's Service Department.

(2)The single bargaining unit shall be responsible for the collection, distribution and review of data relevant to the monitoring of progress towards the achievement of productivity targets as set down in Appendix - WesTrac Productivity Measures and Targets.

(3)The single bargaining unit shall be given all other relevant information necessary for the effective monitoring of the implementation of initiatives under this Agreement.

SIGNATORIES

F. Johnson

SIGNED......

FRANK JOHNSON

GENERAL MANAGER

WESTRAC EQUIPMENT PTY LTD

4/1/94

DATE ......

John Sharp-Collett

SIGNED ......

JOHN SHARP-COLLETT

SECRETARY

METALS & ENGINEERING WORKERS' UNION -

WESTERN AUSTRALIAN BRANCH

12/1/94

DATE ......

N. Hodgson

SIGNED ......

for WALLY PALMER

SECRETARY

AUSTRALIAN ELECTRICAL, ELECTRONICS, FOUNDRY

& ENGINEERING UNION (WESTERN AUSTRALIAN BRANCH)

14/1/94

DATE ......

APPENDIX-WESTRACPRODUCTIVITYMEASURESANDTARGETS

These measures are designed to monitor productivity across the important areas of company activity - customer focus; quality; employee (including management) development; work organisation, systems and practices; and finance.

CUSTOMER SURVEYS

Benchmark:1992 Survey results.

Target:10% improvement in overall customer satisfaction rating by April, 1995.

MARKET SHARE

Benchmark:1993 figures.

Target:Increased share in the market for smaller equipment: wheel loaders to 40% and backhoes to 15% of the market by December, 1994.

STAFF TURNOVER

Benchmark:20% (averaged over 1991 and 1992).

Target:5% reduction in turnover by January, 1995.

ACCIDENT RATE

Benchmark:20 days lost per month in the year to date.

Target:0 per month.

MERIT SYSTEM

Benchmark:Currently 18.13% of staff on top rating.

Target:At least 25% of staff on top rating by January, 1995.

ERROR RATES

Benchmark:1.1% for the financial year ending June, 1993.

Target:Less than 1% of the total sales to June, 1994.

WASTAGE

Benchmark:Tool supplies 1.09% of labour sales year to date.

Target:Less than 1% of labour sales by June, 1994.

Benchmark:Service supplies 2.84% of labour sales year to date.

Target:Less than 2.5% of labour sales by June, 1994.

CREDIT RETURNS

Benchmark:11.2% (normal stock) and 7.2% (non stock items) year to date.

Target:Reduced to 5% (normal stock) and .% (non stock items) by December, 1994.

PROFIT AND LOSS

Benchmark:0.

Target:Ongoing monthly reporting for the monitoring of overall progress.

Productivity measurements will be published each month and distributed and discussed at monthly section and team meetings.

December, 1993

VARIATIONRECORD

WESTRAC EQUIPMENT (SERVICE DEPARTMENT)

ENTERPRISE BARGAINING AGREEMENT 1994

NO. AG 4 OF 1994

Delivered 08/02/94 at 74 WAIG 262

Consolidated at

CLAUSEEXTENT OFORDEROPERATIVEGAZETTE

NO.VARIATIONNO.DATEREFERENCE

1. Title

As deliveredAG 4/9408/02/9474 WAIG 262

2. Arrangement

As deliveredAG 4/9408/02/9474 WAIG 262

3. Parties to the Agreement and Incidence

As deliveredAG 4/9408/02/9474 WAIG 262

4. State Wage Principles

As deliveredAG 4/9408/02/9474 WAIG 262

5. Date of Operation and Term

As deliveredAG 4/9408/02/9474 WAIG 262

6. Relationship to Other Awards

As deliveredAG 4/9408/02/9474 WAIG 262

7. Structural Efficiency Principle

As deliveredAG 4/9408/02/9474 WAIG 262

8. Measures to Effect Real Gains in Productivity

As deliveredAG 4/9408/02/9474 WAIG 262

9. Wages

As deliveredAG 4/9408/02/9474 WAIG 262

10. Extended Hours and Overtime

As deliveredAG 4/9408/02/9474 WAIG 262

11. Leave Loading

As deliveredAG 4/9408/02/9474 WAIG 262

12. Taking of Annual Leave and Time Off in Lieu of Overtime Payment

As deliveredAG 4/9408/02/9474 WAIG 262

13. Dispute Settlement

As deliveredAG 4/9408/02/9474 WAIG 262

14. Single Bargaining Unit

As deliveredAG 4/9408/02/9474 WAIG 262

Signatories

As deliveredAG 4/9408/02/9474 WAIG 262

Appendix - WesTrac Productivity Measures and Targets

As deliveredAG 4/9408/02/9474 WAIG 262