Industrial Relations Commission New South Wales Medium Neutral Citation: Cessnock City Council Enterprise Agreement 2014 [2014] NSWIRComm 1004 Hearing dates: 13 December 2013 Decision date: 30 January 2014 Jurisdiction: Industrial Relations Commission Before: Stanton C Decision: Agreement Approved Catchwords: Application for approval of enterprise agreement to apply for term of three years - Agreement approved. Legislation Cited: Industrial Relations Act 1996 Category: Principal judgment Parties: Cesnock City Council New South Wales Local Government, Clerical, Administrative, Energy, Airlines & Utilities Union (USU) Local Government Engineers' Association of New South Wales (LGEA) Development and Environmental Professionals' Association (DEPA) Representation: Mr M Marelic Local Government and Shires Association of New South Wales on behalf of Cessnock City Council Mr L Hutchinson USU, LGEA & DEPA File Number(s): IRC 1028 of 2013 DECISION 1This matter concerns an application by the Local Government and Shires Association of New South Wales (LGSA) on behalf of Cessnock City Council (the Council) seeking approval of an enterprise agreement between the Council and the New South Wales Local Government, Clerical, Administrative, Energy, Airlines & Utilities Union (United Services Union (USU)), Local Government Engineers' Association of New South Wales (LGEA) and Development and Environmental Professionals' Association (DEPA) ("the Unions") on behalf of the Council's employees. 2The Agreement is to be known as the Cessnock City Council Enterprise Agreement 2014 ("the Enterprise Agreement"). 3The application was subject to Hearing on 13 December 2013. Mr M Marelic appeared on behalf of the LGSA with Mr S Glen and Ms D Allan. Mr L Hutchinson appeared on behalf of the Unions with Mr S Hughes. 4The application is supported by the necessary Statement of Particulars and an affidavit (Exhibit 1) signed by Mr Glen in his capacity as General Manager of the Council, testifying that the agreement complies with the relevant statutory requirements and the "No Net Detriment Test"; was not entered into under duress; and complies with the principles for approval determined by the Commission. Mr Glen was not required for cross-examination. 5This application is in settlement of a dispute notification filed by the Council in matter IRC 221 of 2013 on 5 April 2013. That matter was subject to compulsory conference proceedings before His Honour, Deputy President Harrison on 5 April 2013 where the parties agreed that negotiations in favour of a new enterprise agreement to cover the Council's indoor and outdoor staff should proceed under the supervision of the Commission. 6The matter was subsequently allocated to the Commission as presently constituted on 3 June 2013. Conferences were subsequently convened on site at Cessnock City Council on 4 June, 1 and 27 July, 6 September and 11 October 2013. A further conference was convened before the Commission in Newcastle on 16 September 2013. 7The objective of the parties was to negotiate an enterprise agreement that would assist in the improvement of the long term financial sustainability of Council. The parties also agreed to negotiate a single enterprise agreement rather than two separate agreements to cover indoor and outdoor staff. 8Mr Marelic submitted the Enterprise Agreement provided for increased flexibility in relation to the working of ordinary hours allowing employees to balance their work and family/personal commitments; an additional 1% superannuation payment to all permanent employees; the introduction of a healthy workers' initiative aimed at improving the health-related lifestyles of employees; up to five days' paid community emergency services leave for employees engaging in a voluntary emergency management activities; and a new salary system. 9Mr Glen submitted the Enterprise Agreement negotiating process had fostered the development of trust between staff and management in a team environment to the benefit of Council, staff and ratepayers. 10Mr Glen stated the involvement of the Commission in developing the Enterprise Agreement provided an independent view which enabled negotiations to proceed in a rational and orderly way. He also noted the leadership role taken by the Unions, particularly Mr Hutchinson who was present for all meetings. Mr Glen also acknowledged the assistance of Mr Hughes, Northern Region Manager of the USU, Mr G Brock, representing the LGEA and Ms Allan and the Council's Human Resources team. 11Mr Hutchinson stated the USU convened mass meetings of members on 5 and 6 December 2013. There was overwhelming support for the Enterprise Agreement. Mr Hutchinson submitted the Unions were pleased that issues concerning the introduction of a new salary system had been addressed. 12Mr Hughes acknowledged the Enterprise Agreement subject to this application had evolved from a collection of indoor and outdoor staff agreements, more recently separate indoor and outdoor enterprise agreements and now a single agreement covering all employees: Commissioner, without the change in leadership at Council I don't think we'd be here today at this time, signing an agreement. I think we might have achieved it through other means. Commissioner, I also want to recognise, as I said, the goodwill from all parties; the leadership from Council, working with the Association who we have a great relationship with. But also the fact that we have this important resource, the New South Wales Industrial Relations Commission, which is something that we need to do everything we can all parties to retain. Certainly the industrial relations in the northern part of Newcastle District, the stability in all sectors is largely as a result of the work that comes out of the Commission from yourself and Rod Harrison DP. Our organisation appreciates that, as we know employers do, and we will do everything to retain and protect and to keep this institution which is so valuable to us to be able produce these results, Commissioner. Thank you. 13This Enterprise Agreement provides the Council with a single industrial instrument to cover both indoor and outdoor staff. It also aligns conditions of employment to the Local Government State Award 2010. Importantly, the parties have agreed on a range of flexible working arrangements that better meet the requirements of Council as well as delivering a benefit to employees. 14Throughout the course of negotiations, it was evident that both the Unions and their bargaining representatives and the Council, represented by the LGSA, were tightly focused on the need for the Council to achieve financial stability over the life of the proposed Enterprise Agreement. 15It was equally evident that the Enterprise Agreement negotiations became a catalyst for improved communication and consultation between Council and the industrial parties, Council and employees and the industrial parties and their respective constituent members. The Enterprise Agreement will also assist in the promotion of discretionary effort and increased productivity performance by employees. 16I am satisfied that the material presented to the Commission adequately demonstrates that the Enterprise Agreement submitted for approval complies with all necessary tests. 17The Cessnock City Council Enterprise Agreement 2014 is approved in terms of the application and shall operate from the beginning of the first full pay period to commence on or after 31 January 2014 for a nominal term of three (3) years. JD Stanton COMMISSIONER 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. Decision last updated: 30 January 2014