Request by Eraring Energy for assistance of the New South Wales Industrial Relations Commission in improving communication and consultation processes [2011] NSWIRComm 75

Industrial Relations Commission New South Wales Medium Neutral Citation: Request by Eraring Energy for assistance of the New South Wales Industrial Relations Commission in improving communication and consultation processes [2011] NSWIRComm 75 Hearing dates: 30/6/09, 17/7/09, 10/8/09, 23/11/09, 19/7/10, 11/5/11 Decision date: 03 June 2011 Jurisdiction: Industrial Relations Commission Before: Harrison DP Decision: Catchwords: Collaborative approach to strategise issues - mutual desire to improve working relationships, more effective communication and consultation - co-operative approach to problem solving. Framework agreement - peak council established. Legislation Cited: Industrial Relations Act 1996 Category: Principal judgment Parties: Eraring Energy (Applicant)

Unions NSW (Respondents) The Electrical Trades Union of Australia, NSW Branch (ETU); Construction, Forestry, Mining and Energy Union (NSW Branch) (CFMEU) Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales (PSA) Mr R Ashton, Australian Institute of Marine and Power Engineers, NSW District (AIMPE) Representation: Mr P Moriarty, Eraring Energy (Applicant) Mr P McPherson, Unions NSW (Respondents) Mr R Wilson, ETU Mr A Drew, CFMEU Mr I Braithwaite, PSA Mr R Ashton, AIMPE File Number(s): IRC 830 of 2011

STATEMENT 1This matter arose by request from Eraring Energy ("Eraring") for the assistance of the Commission in improving their internal communication and consultation process with a view to the prevention of industrial disputes and, in the alternative, a more effective onsite mechanism for internal resolution. 2The parties identified a shared goal of improving their working relationship to a more co-operative model. Mr Neil Morris, Production Manager, and Mr Leigh Brydson, Operator delegate, took the initial carriage of the project with support from the Commission, Mr P Moriarty, Human Resources Manager, and Ms Claire Besley (nee Blackadder), Senior Human Resources Officer. 3The process was endorsed by Mr Peter Jackson, Managing Director of Eraring, who provided an overview of strategic issues for information and consideration at an early conference in July 2009 and continued involvement in the process thereafter. 4A number of conferences took place which examined the needs of the parties and organisational requirements. The process was significantly assisted by the contribution of Mr Jeff Hogan, Manager Operations; Mr Leigh Brydson, Assistant Power Plant Operator (APPO) on behalf of Operators; and Mr Allen Drew, Official of the Construction, Forestry, Mining and Energy Union (NSW Branch) (CFMEU), who became signatories to a document titled "The Eraring Energy Framework Agreement for Interest Based Enterprise Development", which is reprinted below: The Eraring Energy Framework Agreement for Interest Based Enterprise Development Parties: The parties to this Agreement are Management and the Operating Group. While the initial focus of activities will involve the Operators, it is intended that the processes will extend to others in the organisation as opportunities arise. Scope: The parties to this Agreement recognise that improvements in collaborative working relationships have the potential to significantly benefit the enterprise and the employees. This Agreement is supplementary to Award negotiations and provisions, and is concerned with developing effective working relationships that contribute to: · A productive and sustainable enterprise · A safe healthy work environment · A highly skilled and capable workforce · Innovative work practices and processes that set new standards for the electricity generation industry The processes outlined in the Agreement are intended to work with and compliment other initiatives and committees. Aims and Objectives. · To develop and implement agreed collaborative processes that address workplace issues from the perspective of a shared commitment to an ongoing and sustainable future · To increase the capacity of all employees to learn together to develop new and innovative ways of resolving workplace issues · To build resilience and capability to better respond to inevitable workplace and business challenges of the future Operating Principles: The parties to this Agreement recognise that: The Operating Environment As a government owned enterprise, Eraring is subject to government policy and direction, in addition to other legislative requirements. Industrial Relations Environment The parties may, from time to time, be involved in issues that require more traditional industrial relations processes. Nothing in this Agreement shall limit the rights of parties to pursue matters in this way. Nor will the existence of any such issue impede the continued operation of this agreement Mandates and Role Clarity It is recognised that some areas under deliberation may require referral to others before any commitment can be made. In such circumstances, the requirement for referral will be made clear to others, and specific commitments regarding feedback made. Learning and Skill Development Creating and sustaining new workplace relationships will require an investment in skills in areas including decision making; problem solving and conflict resolution. Any skill sessions conducted will be held jointly to build common approaches. It is also recognised that learning from people and enterprises external to the electricity generation industry will benefit developing new and innovative approaches. Developing and Presenting Proposals for Change For those matters under consideration of the Working Parties that are operating under this framework agreement, proposals for change will be developed jointly prior to presentation to others. The Working Party will develop agreed processes and protocols for proposing and negotiating changes. This in no way limits the requirement for ongoing improvements to work processes, or any action needed to be taken unilaterally in the interests of safety. Information Sharing Open access to information is fundamental to developing effective working relationships. Appropriate IT infrastructure will beset up. Communication strategies will be based on shared information sessions. Resolving Day to Day Matters While this agreement seeks lasting resolution to some complex issues, it is inevitable that operational day to day matters will arise that need to be addressed immediately. As a matter of principle, matters should be resolved when they happen, and with the people directly affected. This may involve direct discussion without formal union presence. Any interpretations or arrangements that result will be documented and disseminated. Human Resource Department The preferred role of the HR department is one of honest broker, having a listening ear and playing a major role in supporting the new approaches. As with union representatives, any requirement to represent the company in formal proceedings is accepted as a necessary part of the role, and will not impact this process adversely. Grievance Procedures The Working Party will develop and implement agreed processes that ensure the effective operation of the award provisions related to Grievance Procedures. Working Parties All necessary time, resources and capacity building needed by members Working Parties to fulfill their roles effectively will be provided. Reporting on progress Regular reports on progress shall be provided to the Peak Consultative Committee and the Industrial Relations Commission 5A number of Operator issues are being dealt with in accordance with this framework, with positive contribution from Mr P McPherson, Unions NSW; Mr R Wilson, The Electrical Trades Union of Australia, NSW Branch (ETU); Mr A Drew, CFMEU; Mr I Braithwaite, Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales (PSA) and Mr R Ashton, Australian Institute of Marine and Power Engineers, NSW District (AIMPE); Shift Managers and Operator delegates. 6The process has been particularly assisted by Ms Viv Read, independent external facilitator, Emerging Options Pty Ltd. 7There have been a number of reports to the Commission by way of onsite conferences, concluding in advice on 12 May 2011 that the parties have agreed to a timetable through to August 2012 for regular meetings of the peak consultative committee, which brings an appropriate conclusion to these proceedings. 8The parties are congratulated on the progress achieved. 9Matter No IRC 830 of 2009 is so concluded.