Industrial Relations Commission of New South Wales CITATION : BHP Steel (AIS) LTD - Port Kembla Restructured Ironworker Classifications Rates Of Pay Award & Other Matters [2000] NSWIRComm 171 APPLICANTS: BHP Steel (AIS) Pty Ltd BHP Steel (JLA) Pty Ltd PARTIES : RESPONDENTS: Australian Workers' Union, New South Wales Construction, Forestry, Mining and Energy Union New South Wales Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, New South Wales Branch; Electrical Trades Union of Australia, New South Wales Branch FILE NUMBER: IRC 2193; 2194; 2195; 2196; 2197; 2198; 2199; 2200; 2201; 2202 of 2000 CORAM: Walton J Vice-President CATCHWORDS : Applications to vary rates of pay and insert new classifications - applications made to implement the Steel Industry Wages Agreement 2000 to 2001 - applications meet the requirements of the Act and wage fixing principles - amended applications granted LEGISLATION CITED : Industrial Relations Act 1996 HEARING DATES: 07/06/2000 DATE OF JUDGMENT: 08/31/2000 APPLICANT: Mr Davies Blake Dawson Waldron RESPONDENTS: Mr Roberts Australian Workers' Union, New South Wales LEGAL REPRESENTATIVES: Mr Smith Construction, Forestry, Mining and Energy Union, New South Wales Mr Harris Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, New South Wales Branch; & Electrical Trades Union of Australia, New South Wales Branch JUDGMENT: - 1 - INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES CORAM: WALTON, J Vice-President 31 AUGUST 2000 MATTER No. IRC 2193 OF 2000 BHP STEEL (AIS) LTD – PORT KEMBLA RESTRUCTURED IRONWORKER CLASSIFICATIONS RATES OF PAY AWARD Application by BHP Steel (AIS) Pty Ltd for variation re rates of pay and other matters. MATTER No. IRC 2194 OF 2000 BHP STEEL (AIS) PTY LTD - PORT KEMBLA RESTRUCTURED MECHANICAL GRADED TRADES AND FOUNDRIES GRADED TRADES CLASSIFICATIONS RATES OF PAY AWARD. Application by BHP Steel (AIS) Pty Ltd for variation re rates of pay and other matters. MATTER No. IRC 2195 OF 2000 BHP STEEL (AIS) PTY LTD - PORT KEMBLA RESTRUCTURED ELECTRICAL GRADED TRADES CLASSIFICATIONS RATES OF PAY AWARD Application by BHP Steel (AIS) Pty Ltd for variation re rates of pay and other matters MATTER No. IRC 2196 OF 2000 BHP STEEL (AIS) PTY LTD - PORT KEMBLA RESTRUCTURED REFRACTORY EMPLOYEES CLASSIFICATIONS RATES OF PAY AWARD Application by BHP Steel (AIS) Pty Ltd for variation re rates of pay and other matters MATTER No. IRC 2197 OF 2000 BHP STEEL (AIS) PTY LTD BLAST FURNACE TEAM WORK AGREEMENT AWARD Application by BHP Steel (AIS) Pty Ltd for variation re rates of pay and other matters MATTER No. IRC 2198 OF 2000 BHP STEEL (AIS) PTY LTD - PORT KEMBLA CARPENTERS AWARD Application by BHP Steel (AIS) Pty Ltd for variation re rates of pay and other matters MATTER No. IRC 2199 OF 2000 JOHN LYSAGHT (AUSTRALIA) LIMITED - PORT KEMBLA - COIL TEMPER MILL - RATES OF PAY AWARD Application by BHP Steel (JLA) Pty Ltd for variation re rates of pay and other matters MATTER No. IRC 2200 OF 2000 JOHN LYSAGHT (AUSTRALIA) LIMITED - PORT KEMBLA SLIT RECOIL LINE - RATES OF PAY AWARD Application by BHP Steel (JLA) Pty Ltd for variation re rates of pay and other matters MATTER No. IRC 2201 OF 2000 BHP STEEL (JLA) PTY LTD - PORT KEMBLA - No.3 PAINT LINE - RATES OF PAY AWARD Application by BHP Steel (JLA) Pty Ltd for variation re rates of pay and other matters MATTER No. IRC 2202 OF 2000 BHP STEEL (JLA) PTY LTD - PORT KEMBLA - CPCM ROLL SHOP - RATES OF PAY AWARD Application by BHP Steel (JLA) Pty Ltd for variation re rates of pay and other matters REASONS FOR DECISION 1 These matters are applications by BHP Steel (AIS) Pty Ltd or BHP Steel (JLA) Pty Ltd ("the applicants") to vary the rates of pay in the following awards: 1. BHP Steel (AIS) Ltd – Port Kembla Restructured Ironworker Classifications Rates of Pay Award; 2. BHP Steel (AIS) Pty Ltd - Port Kembla Restructured Mechanical Graded Trades And Foundries Graded Trades Classifications Rates of Pay Award; 3. BHP Steel (AIS) Pty Ltd - Port Kembla Restructured Electrical Graded Trades Classifications Rates of Pay Award; 4. BHP Steel (AIS) Pty Ltd - Port Kembla Restructured Refractory Employees Classifications Rates of Pay Award; 5. BHP Steel (AIS) Pty Ltd Blast Furnace Team Work Agreement Award; 6. BHP Steel (AIS) Pty Ltd - Port Kembla Carpenters Award; 7. John Lysaght (Australia) Limited - Port Kembla - Coil Temper Mill - Rates of Pay Award; 8. John Lysaght (Australia) Limited - Port Kembla Slit Recoil Line - Rates of Pay Award; 9. BHP Steel (JLA) Pty Ltd - Port Kembla - No.3 Paint Line - Rates of Pay Award; and 10. BHP Steel (JLA) Pty Ltd - Port Kembla - CPCM Roll Shop - Rates of Pay Award ("the awards"). 2 The applicants were granted leave to amend the applications. On 7 June 2000 the Commission granted the applications, as amended (save for the application in matter no IRC2194 of 2000), at which time it was indicated that reasons for decision would be given in due course. These are the reasons for the decision so made . 3 It should be noted at the outset that this decision does not relate to Matter number IRC 2194 of 2000, as certain material required from the parties to conclude that matter has not, as yet, been received by the Commission. 4 The applications sought a general increase in rates of pay for employees covered by the awards; by a 4% increase in rate of pay from the date of variation, and a further increase in rates of pay of 3% from April 2001. 5 Additionally, the applicants sought the insertion of new classifications and corresponding rates of pay into the BHP Steel (AIS) Ltd – Port Kembla Restructured Ironworker Classifications Rates Of Pay Award; the justification for such application arising out of a restructure of rail maintenance operations. 6 The general increases in rates of salary are sought as part of the implementation of a steel industry agreement, known as the Steel Industry Wages Agreement 2000 to 2001 ("the Agreement"), which has been made nationally between BHP and a number of unions having members in the Australian steel industry. Mr Davies, solicitor, who appeared for the applicants, submitted that the applications here made represent the first occasion in which an industrial tribunal was required to consider the Agreement. 7 As to the insertion of the new classifications in the BHP Steel (AIS) Ltd – Port Kembla Restructured Ironworker Classifications Rates Of Pay Award, the application sought to introduce into the award new classification structures for employees employed in relation to the maintenance of rail links between the companies Port Kembla Flat Products plant and various coal loading facilities. 8 Mr Davies submitted that the general increase in salary sought by the applicants were appropriate for approval by the Commission having regard to the wage fixing principles and the requirements of the Industrial Relations Act 1996 ("the Act"). In particular he pointed to the consent of the parties and the terms of the Agreement. 9 Further, Mr Davies submitted that the insertion of the new classifications in the BHP Steel (AIS) Ltd – Port Kembla Restructured Ironworker Classifications Rates Of Pay Award would bring to a close negotiations that have, no doubt for various reasons, been on-going for some 10 years. The proposed new classifications were put to the employees affected by the application, and acceptance was given to the amendments as proposed in a meeting of those employees held on 16 December 1999. 10 Mr Davies tendered a document, setting out an overview of the rail maintenance department and the restructuring process that has taken place in that department. He further submitted that the changes in the Department and the corresponding restructuring of classifications in the award were designed to remove inefficient work practices and to meet the employees desire to increase flexibility in their employment (thereby providing opportunities to increase their skills and, in so doing, improving their conditions of employment, including remuneration). 11 In my view the applications, as amended, set fair and reasonable conditions of employment as required by sections 10 and 17 of the Act, and otherwise meet the requirements of the Act. Further, I am satisfied that the applications satisfy the wage fixing principles as enunciated in the State Wage Case 1999. I also note that, having regard to the Agreement the applications are warranted as a matter of industrial merit. 12 In light of the above considerations, I confirm the variations to the awards in terms of the amended applications, with the exception of the application in Matter no. 2194 of 2000 (which will be dealt with upon the receipt of appropriate information from the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, New South Wales Branch). These variations to the awards (save for the BHP Steel (AIS) Pty Ltd - Port Kembla Restructured Mechanical Graded Trades And Foundries Graded Trades Classifications Rates Of Pay Award) take effect on and from the beginning of the first pay period to commence on or after 7 June 2000. DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.