Industrial Relations Commission New South Wales Medium Neutral Citation: Local Government (State) Award 2014 [2014] NSWIRComm 37 Hearing dates: 27 February, 31 March, 14 and 22 May, 25 June 2014 Decision date: 16 July 2014 Before: Walton J, President Decision: I confirm the making of the Local Government (State) Award 2014 in terms of Ex 1 in these proceedings Catchwords: AWARD - reasons for decision - alterations to former award - statutory requirement for award making - s 10 - public interest - wage fixing principles - award made Legislation Cited: Industrial Relations Act 1996 Category: Principal judgment Parties: New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union (Applicant) The Development and Environmental Professionals' Association (Respondent) The Local Government Engineers' Association of New South Wales (Respondent) Local Government and Shires Association of New South Wales (Respondent) Representation: M Dunstan, New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union (Applicant) A Vasilangos, Local Government Engineers' Association of New South Wales and Development and Environmental Professionals' Association (Respondents) A Dansie, Local Government and Shires Association of New South Wales (Respondent) File Number(s): IRC 960 of 2013, IRC 461 and 462 of 2014 REASONS FOR DECISION 1By an application filed on 18 June 2014, the New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union ('the USU') sought the making of a new award entitled the 'Local Government (State) Award 2014' ('the award'). By a counterpart application of the same date, the USU sought the rescission of the predecessor award known as the 'Local Government (State) Award 2010' ('the 2010 award'). 2Those applications were preceded by the notification of an industrial dispute by the USU (Matter No IRC 960 of 2013) pursuant to s 130 of the Industrial Relations Act 1996 ('the Act'), which proceedings became the vehicle for various conciliation processes before the Commission concerning claims associated with the renewal of the 2010 award. 3At the hearing of the consent applications on 25 June 2014, the Commission made a new award in terms of an amended application marked as Ex 1 in the proceedings ('the amended application') known as the 'Local Government (State) Award 2014'. The Commission also ordered that the 2010 award be rescinded in accordance with the application filed on 18 June 2014 and terminated the industrial dispute proceedings. 4These are the reasons for those decisions. 5The amended application was supported by affidavit evidence filed on behalf of the applicant and other organisations party to the award. The applicant union relied upon the affidavit of its General Secretary, Mr Graeme Paul Kelly. The Local Government Engineers' Association of New South Wales ('the LGEA') and the Development and Environmental Professional's Association ('depa') relied respectively upon the affidavit evidence of Ms Alycia Vasilangos, an Industrial Officer of the LGEA, and Mr Ian Alexander Robertson, the Secretary of depa. The respondent employer organisation, the Local Government and Shires Association of New South Wales, adduced evidence by affidavit from its Manager, Industrial Relations, Mr Adam Kenneth Brandon Dansie. 6That evidence was supported by submissions made by Mr Mark Dunstan, Legal Special Projects Officer, on behalf of the USU; Ms Vasilangos for the LGEA and depa; and Mr Dansie with Ms Lillian Tiddy and Mr Nicholas Adams for Local Government and Shires Association of New South Wales ('the LGNSW'). 7The making of the award resulted in a significant number of changes to the 2010 award which were summarised in Annexure C to the amended application. A full description of them will serve little purpose in elucidating these reasons for making the award. However, the changes may be encapsulated by reference to three broad categories of variation affected by the making of the award: alterations which improved the clarity of the provisions of the award; alterations which enhanced flexibility within the Local Government industry; and improvements in rates of pay and conditions. In the second category, reference may be made, in particular, to alterations in the 'Statement of Intent' in cl 2 of the award and the circumstances under which fixed term contracts may be employed by Councils in cl 34. As to the final category, it may be noted that rates of pay were increased under the award by 2.6 per cent from the first full pay period on or after 1 July 2014 (with a minimum increase of $20.40); 2.7 per cent from the first full pay period on or after 1 July 2015 (with a minimum increase of $21.80); and 2.8 per cent from the first full pay period on or after 1 July 2016 (with a minimum increase of $23.20). 8It should also be observed that the terms of cl 43, 'Area, Incidence and Duration', of the 2010 award was amended so as to vary the scope of the award in consequence of the acceptance by the parties of the Statement and Recommendation issued on 22 May 2014 by the Commission during the course of conciliation. 9By its terms, the award satisfied the requirements for the making of an award under the Act. That opinion is not confined to an assessment that the award satisfied the minimum award content requirements of the Act. It may also be readily concluded that the terms of the award satisfied the requirements of s 10 of the Act such that a declaration may be made that the award contains fair and reasonable conditions of employment for employees. Furthermore, the amended application, in my view, satisfied the public interest requirements of s 146(2) of the Act. 10The award established conditions of employment which struck an appropriate balance between the provision of fair conditions of employment and the maintenance of an industry which is economically sustainable and meeting its core objectives. The public interest is served by this approach because the significant contribution that the Local Government industry makes to the community of New South Wales will be enhanced by a harmonious industrial environment and the maintenance of a vibrant and stable Local Government sector. It may be recalled, in this respect, that the award applies to over 50,000 Local Government employees across New South Wales in 150 Local Government areas. 11The granting of the amended application was also consistent with the objects of the Act and, in particular, the object specified in s 3(h) "to encourage and facilitate cooperative workplace reform and equitable, innovative and productive workplace relations". 12The award represents the latest in a succession of consent awards made in the industry since 1992. This outcome is a reflection of the maturity and sophistication of the industrial parties and their capacity to reach agreement in circumstances involving complex negotiations across an industry which is diverse in nature. Agreement was reached notwithstanding multiple logs of claims (that brought forth 150 separate issues) affecting, as earlier mentioned, a large number of Local Government areas, many of them having differences in make-up and operation. 13A testament to the success of the parties' endeavours in reaching a consent award was the acceptance of their negotiations by the employees affected by the amended application. The USU conducted 300 mass meetings across New South Wales over 10 days. The union obtained a 95 per cent vote in favour of the consent award which unsurprisingly was unanimously endorsed by its Executive. The LGEA conducted a survey of its members through meetings at various Councils throughout New South Wales and an electronic ballot over a two week period. The organisation's members voted 97 per cent in favour of the amended application. 14The combination of these considerations represented an overwhelming basis for the grant of the amended application and should result in congratulations being extended to the industrial parties to the award for this significant achievement. 15Those organisational achievements are, of course, always a product of the persons who act for them in discharging their functions. It is appropriate, in the present context, to mention specifically those who have particularly contributed to the outcome to which I have referred. Those who should be mentioned in that respect are: for the USU - Mr Stephen Hughes, Northern Manager, Mr Dunstan and, by way of oversight and particular aspects of the negotiations, Mr Kelly; for the LGEA - Mr Gordon Brock and Ms Vasilangos; for depa - Mr Robertson; and for LGNSW - Mr Dansie and Mr Ross Nassif. 16I confirm the making of the Local Government (State) Award 2014 in terms of Ex 1 in these proceedings. ********** 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: 17 July 2014