Industrial Relations Commission New South Wales Medium Neutral Citation: Port Stephens Council Enterprise Agreement 2015 [2015] NSWIRComm 40 Hearing dates: 2 December 2015 Decision date: 11 December 2015 Jurisdiction: Industrial Court of NSW Before: Harrison DP Decision: Agreement approved with effect from 1 July 2015 for a period of three years therefrom Catchwords: Enterprise Agreement – Interest based process – Collaborative model of industrial engagement - Mutually satisfactory result to benefit of all parties including ratepayers. Agreement approved Legislation Cited: The Industrial Relations Act 1996 Category: Principal judgment Parties: Port Stephens Council New South Wales Local Government, Clerical, Administrative, Energy, Airlines & Utilities Union (United Services Union) (USU) Local Government Engineers' Association (LGEA) Development and Professionals' Association (DEPA) Representation: Ms M Hackney Port Stephens Council Mr R Potter USU Mr G Brock LGEA and DEPA File Number(s): IRC 979 of 2015 DECISION 1. This matter concerned an application for approval of an enterprise agreement to apply to Port Stephens Council (the Council) for a period of three years with effect from 1 July 2015. 2. The application was subject to Hearing on 2 December 2015. Ms Melissa Hackney, Human Resources Manager, appeared on behalf of the Council. Mr R Potter appeared on behalf of New South Wales Local Government, Clerical, Administrative, Energy, Airlines & Utilities Union (United Services Union) (USU). Mr G Brock appeared on behalf of the Local Government Engineers' Association (LGEA) and Development and Professionals' Association (DEPA) 3. The application is supported by an affidavit (Exhibit 1) sworn by Ms Hackney, together with the necessary Statement of Particulars. 4. The agreement submitted for approval is titled "Port Stephens Council Enterprise Agreement 2015" (the Agreement) (Exhibit 2). 5. This is the third interest based Agreement to apply at the Council and is a comprehensive Agreement. 6. In supporting the application Ms Hackney submitted that: "Negotiations commenced in January 2015 and an Enterprise Agreement Committee comprising of 3 x Union Representatives, 3 x Management Representatives and 7 x Workforce Representatives was established and met on a number of occasions through till June 2015. The Port Stephens Council Enterprise Agreement 2015 will prevail over the Port Stephens Council Enterprise Agreement 2011. Port Stephens Council made available copies of the Proposed Enterprise Agreement to all parties to the agreement including all employees covered by the proposed Enterprise Agreement from Monday 22 June 2015. Port Stephens Council, Union Representatives and employees attended a number of workplace meetings. At the meeting employees were apprised of the changes proposed in the Enterprise Agreement and explanations given of the terms of the agreement. I convened these group meetings with employees to discuss and further explain the provisions and contents of the proposed Agreement. Attendees were invited to ask questions and to discuss any terms of the proposed Agreement. Brochures and copies of the proposed Agreement were handed out to attendees at the meetings and generally in the workplace. Council also set up an e-mail "hot line" for employees to ask questions and to seek clarification concerning terms of the proposed agreement. During this time, the Unions who represented employees covered by the proposed Agreement held meetings of their members at which the members voted as to whether they were in favour of the Agreement. I was subsequently informed by the Union representatives that at the meetings the majority of members voted in favour of the Agreement. On the 9 July 2015 the Australian Electoral Commission conducted a secret ballot of employees. The outcome of that ballot is that 91.5% of employees voted in favour of the proposed Enterprise Agreement. Approximately 68% of employees cast a vote. Port Stephens Council understands the effect of the Agreement and agrees to its implementation. Port Stephens Council did not enter into the Agreement under duress. The Agreement, does not, on the balance, provide a net detriment to employees covered by the agreement when compared with the aggregate package of conditions of employment which would otherwise apply under the existing Awards and Agreements. A comparison with Award conditions is contained in Annexure B. The Agreement, complies with the principles set by the Commission under Section 33 of the Industrial Relations Act, 1996. Clause 5.9 sets out the necessary Anti-Discrimination clause and complies with the principles for approval determined by the Commission. The Rates of pay are set-out in Clause 7.2 and form a separate document which I would be happy to table in the Commission today. Port Stephens Council is committed to improving the way we go about our business. We are doing this by pursuing the philosophy contained within the international Business Excellence Framework. This philosophy provides us with a lens to identify strengths and opportunities for improvement. Our mission is to develop a high performing organisation that has a strong culture of 'working together to do the right things the best way'. We want to be recognised by our community as a leading local government authority and as an employer of choice. The Port Stephens Council Enterprise Agreement 2015 is all about stability and ensuring that we have a solid base to attract, retain and develop the workforce we need to deliver the services valued by our community into the future. Our Enterprise Agreement recognises and rewards the whole person; it does not have just a monetary focus. We offer the broadest range of flexible work practices in local government in NSW. Work life balance is a reality at Port Stephens. Importantly, work flexibility is complemented in our Enterprise Agreement by a market-based remuneration system which ensures that our staff are always remunerated at a rate which is linked to the median of the local government market in Australia. Our Enterprise Agreement also includes our well-developed learning and development strategy which focuses on skill development for now and the future, supports tertiary education, and provides opportunities for acting in other roles, often for extended periods. We see this as integral to managing our organisation skill needs and providing career progression and interesting and varied work for our people. Performance is managed through our Individual Work & Development Plans which are articulated in our Enterprise Agreement. These ensure that every staff member has goals oriented to the outcomes required by the Community Strategic Plan. Our Talent Management Strategy is underpinned by our Enterprise Agreement which seeks to ensure Council has the right people in the right roles now and into the future. Since the implementation of our first Enterprise Agreement in 2008, Council has been able to move from a position from unsustainability to one that sees us sustainable both now and into the future providing true value for our community and job security for our employees. We see this new Enterprise Agreement as one which maintains our current level of stability in order to maintain job security for our employees who can continue to enjoy a suite of favourable conditions together with our market linked remuneration system whilst delivering services that our community value. Subject to the Commission's approval, the agreed operative date of this Agreement will be the first full pay period after the 1 July 2015 and the Agreement shall expire on 30 June 2018." 1. The Agreement was supported by Mr Potter and Mr Brock who commended employees, delegates and management for their contribution to a successful process, resulting in an agreement of value to the organisation. 2. The Agreement is a comprehensive document encompassing all conditions of employment, including a Statement of Values, Behaviour and Conduct, a defined salary system, superannuation, flexible hours of work, junior and trainee employment, performance evaluation and reward, consultative provisions, a commitment to work, health and safety, disciplinary procedures, workplace change and redundancy, and competitive tendering. 3. The vehicle for development of the Agreement was Matter No IRC 896 of 2014 before the Commission as presently constituted, concluded on 2 December 2015 consequent upon the making of this Agreement. 4. In a Statement concluding that matter I said: 1 This matter arose by notification from Port Stephens Council on 16 December 2014 seeking the Commission's assistance in the development of a new enterprise agreement. 2 The notification identified the New South Wales Local Government, Clerical, Administrative, Energy, Airlines & Utilities Union (United Services Union) (USU); Local Government Engineers' Association; and Development and Professionals' Association (DEPA) as relevant parties. 3 The parties are not in active dispute and rely upon the broad definition of "Industrial Dispute" found in the dictionary to the Industrial Relations Act 1996 ("the Act") which includes: "(c) a situation that is likely to give rise to an Industrial Dispute if preventative action is not taken" 4 That notification was made in anticipation of the expiry of the Port Stephens Council Enterprise Agreement 2011 in June 2015, to engage the Commission in an interest based process to develop a new agreement, a process which been applied successfully in negotiation of the Council's 2008 and 2011 agreements. 5 The first discussion took place at the Council's Chambers on 4 February 2015. An Enterprise Agreement Committee (EAC) and organisational sub-committees were established, as was the case in development of the prior agreements. 6 The participants were: The Enterprise Agreement Committee Wayne Wallis, Melissa Hackney, Robert Potter, Gordon Brock, Andrew Ashton, Fran Flavel, Greg Kable, Heath Milne, Ken Sewell, Lynette Fitzhenry, Mark Rice, Melanie Finlay, Vicki Bailey Sub- Committees Administration Melanie Finlay, Luke Kearney, USU, Management Childcare Lynette FitzHenry, Tracey Sweetman, USU, Management Holiday Parks Heath Milne, Chris Oaten, USU, Management Libraries Vicki Bailey, Nada Boorbij, USU, Management Maintenance, Construction, Parks and Trades – Nelson Bay Mark Rice, Mathew Knight, USU, Management Maintenance, Construction, Parks and Trades – Raymond Terrace Ken Sewell, Peter Clarke, USU, Management Professional and Technical Fran Flavel, Aaron Mallor, USU, LGEA, DEPA, Management 7 The discussions were attended by a Communications Plan and indicative timetable aimed at developing a new agreement by July 2015. 8 Discussions were informed by a joint survey of all staff in April/May 2015, so timed as the survey was prepared jointly by management and unions who then worked together to analyse the resultant information. 9 The timetable of July 2015 was not met for many practical reasons, all parties accepting that the value of the process should not be compromised by haste and that there was no disadvantage to any party in affording additional time to ensure that all issues were properly and thoroughly explored and the integrity of communications was maintained. 10 The philosophy, structure, purpose and intent was accepted to be an Agreement which supported the mutual interests of the organisation, identified to be meeting the present and future needs of the community in a cost effective, acceptable and collaborative manner; the continuous business improvement, recruitment, retention, job security, training and development; underpinned by a market linked salary system, work life balance, flexibility and high trust. 11 The EAC met under the chairmanship of the Commission at the Council's Chambers on 2 March 2015, 30 March 2015, 27 May, 2015, 1 June 2015 and further discussions took place in respect to procedural aspects in August and September 2015. 12 The Council filed an application for approval of a new agreement on 19 November 2015 (Matter No IRC15/979), which was approved in proceedings of 2 December 2015, completing the purpose of the instant matter. 13 I congratulate all of the participants on the diligent, professional and cooperative manner in which they addressed the task. The outcome is a credit to them all. 14 Matter No IRC 896 of 2014 is so concluded. 1. I congratulate all of the participants on the diligent, professional and cooperative manner in which they addressed the task. The outcome is a credit to them all. 2. I am satisfied that the material presented to the Commission adequately demonstrates that the Agreement submitted for approval complies with all necessary tests. 3. The Port Stephens Council Enterprise Agreement 2015 is approved in terms of the application to apply from 1 July 2015 and remain in force for a period of three years therefrom. 4. Matter No IRC 979 of 2015 is so concluded. ********** 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: 11 December 2015