Industrial Relations Commission of New South Wales CITATION: Local Government (State) Award 2007 [2007] NSWIRComm 266 APPLICANT New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union Development and Environmental Professionals' Association Local Government Engineers' Association of New South Wales New South Wales Nurses' Association PARTIES: RESPONDENT Local Government and Shires Associations of New South Wales INTERVENOR Minister for Industrial Relations FILE NUMBER(S): 87 of 2007 CORAM: Sams DP CATCHWORDS: Application for new award - local government industry - conciliation of claims - agreement reached - consent award sought - increases in rates of pay - other award changes - State Wage Fixing Principles satisfied - equal remuneration principles - s 19 award review process - three year award - fair and reasonable conditions of employment - industrial merit - public interest - award made - previous award rescinded. LEGISLATION CITED: Industrial Relations Act 1996 Equal Remuneration Principle, Re (2000) 97 IR 177 Principles for Review of Awards Decision (1998) 85 IR 38 CASES CITED: State Wage Case 2007 (2007) 163 IR 253 AWARD: Local Government (State) Award [2004] 350 IG 471 HEARING DATES: 22 October 2007 DATE OF JUDGMENT: 23 October 2007 APPLICANTS Mr A Neal New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union New South Wales Nurses' Association Mr I Robertson Development and Environmental Professionals' Association LEGAL REPRESENTATIVES: Mr G Brock Local Government Engineers' Association of New South Wales RESPONDENT Mr L Smith Local Government and Shires Associations of New South Wales INTERVENOR Mr G De Courcey Minister for Industrial Relations JUDGMENT: - 5 - INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES CORAM: SAMS DP 23 October, 2007 Matter No IRC07/87 Local Government (State) Award 2007 Application by New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union for a new award DECISION [2007] NSWIRComm 266 1 This decision follows an extempore decision issued by the Commission on 22 October 2007 arising from an application for a new award in the local government industry in New South Wales. 2 The application was filed by the Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union ('the Union') on 25 January 2007 and was supported by the Development and Environmental Professionals' Association and the Local Government Engineers' Association. The application was listed for directions before Walton J, Vice-President on 26 July 2007 and subsequently referred to me by Wright J, President for conciliation. Conferences were convened by the Commission in August and September 2007. The parties have also engaged in numerous private conferences. 3 After the conciliation proceedings on 19 September, the Commission issued the following recommendation: The Commission has today chaired further private conciliation conferences between the Local Government and Shires Associations of New South Wales and the Unions parties to the Local Government (State) Award in respect to finalising details for the next Award. Plainly, these negotiations have centred on the wage increases to be provided over the life of the new Award. The Commission records that the parties involved in the negotiations have today reached an in-principle agreement which now requires endorsement by their respective constituent organisations. Arrangements have been made for this to occur in the next short period of time. For its part, the Commission considers that the in-principle agreement reached is a reasonable one, in all the circumstances, and strongly recommends its endorsement by the parties' decision making bodies. 4 The Commission was subsequently advised that all of the parties' decision making bodies had endorsed the terms of the new award. 5 The parties came before the Commission on 22 October and sought the making of a new award, by consent, pursuant to s 10 of the Industrial Relations Act 1996 ('the Act'). There had been earlier indications that the application might need to have been processed as a Special Case under Principle 10 of the State Wage Case 2007 (2007) 163 IR 253. However, as the matter ultimately proceeded by consent, it falls for consideration under Principle 2(e) of the Wage Fixation Principles which is expressed as follows: (e) where the application is consented to by the parties it will be dealt with in terms of the Act; 6 The draft award was tendered by Mr A Neal for the Union and marked Exhibit 1 in the proceedings. The following associated documents were also tendered and are to be read in conjunction with the new award: Salary System Progression Rules (Exhibit 2) Present Occupant Only Rules (Exhibit 3) Incremental Scales (Exhibit 4) The New Award 7 Over recent years the parties to the local government industry have traditionally negotiated a new industrial instrument every three years. The new award will also apply for the next three years commencing on 1 November 2007. The central features of the new award are the increases in the rates of pay agreed between the parties. These are: 3.2% with a minimum of $22.00 from the first pay period on or after 1 November 2007. 3.2% with a minimum of $22.00 from the first pay period on or after 1 November 2008. 3.2% with a minimum of $22.00 from the first pay period on or after 1 November 2009. 8 There are a number of other agreed flexibility changes in the new award which are detailed in an annexure to an affidavit of Mr David Gibson, Director, Workplace Solutions, Local Government and Shires Associations of New South Wales (Exhibit 8). Other changes were made to clarify the meaning or intent of some of the award provisions. In addition, a number of allowances were increased, such as tool, travelling, on-call allowances, car and vehicle allowances, climatic allowance and civil liability loading. Other important changes were made in respect to the size, composition and meetings of local consultative committees, the overtime provisions and the casual employment clause. 9 The submissions of Mr Neal were supported by Mr G Brock from the Local Government Engineers' Association of New South Wales and Mr I Robertson for the Development and Environmental Professionals' Association. Mr L Smith for the Local Government and Shires Associations of New South Wales supported the making of the new award and detailed the various flexibility changes agreed to by the parties. He described the wage adjustments as "affordable and fair and reasonable". 10 There is no doubt that the Local Government Award has long been, and remains, a major and significant award in the New South Wales industrial relations jurisdiction. The award covers many thousands of wages and salaried employees employed by local councils throughout the State. It is also self-evident that councils in New South Wales are very diverse in terms of size, financial resources, performance and services provided to rate payers. The diversity of the industry is one of the matters which was a factor in the award negotiations and, ultimately reflected in the outcomes. Other factors considered include, inter alia, prevailing and forecast economic circumstances, relative and general wage movements and a focus on lower paid employees. 11 In my opinion, the parties have struck a fair and reasonable result and should be congratulated for the constructive approach they have demonstrated during the negotiations. 12 Affidavit evidence was tendered in the proceedings, as required by Practice Direction 6, to the effect that the new award satisfied the requirements of s 23 of the Act and the requirements of the Equal Remuneration Principle determined by the Commission in Re Equal Remuneration Principle (2000) 97 IR 177. 13 The parties further assured the Commission that the new award had been appropriately attended to in accordance with s 19 of the Act and the Principles for Review of Awards Decision (1998) 85 IR 38. Accordingly, the new award need not be the subject of further review for a period of three years. 14 The new Award replaces and rescinds the Local Government (State) Award [2004] 350 IG 471 and all variations thereto. An order of rescission is made, pursuant to s 17 of the Act effective from 1 November 2007. 15 Having considered the submissions of the parties and reviewing the documents tendered in the proceedings, the Commission is satisfied that the proposed new award: 1. meets all of the legislative requirements of the Industrial Relations Act 1996; 2. does not offend the terms of the Commission's wage fixing principles as set out in the State Wage Case 2007; 3. has substantial industrial merit; and 4. should be approved by the Commission in the public interest. 16 Accordingly, pursuant to ss 10, 19, 23 and 146 of the Act, the Commission makes a new Award to be known as the Local Government (State) Award 2007 in terms of Exhibit 1 in the proceedings. The new Award shall take effect from the first pay period on or after 1 November 2007 and remain in force for a period of three years thereafter. Peter J Sams, AM Deputy President 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.