RTBU claim for minimum rates award finalised in WA

ARGE strenuously opposed the RTBU case. ARGE have campaigned hard to delay the award and impede the union's push for a collective agreement. The collective agreement would eliminate the need for individual contracts (Australian Workplace Agreements) which ARGE has used to make WA rail freight workers the poorest paid in Australia.

The hearings for the minimum rates award began in January 2001, when the union served its log of claims on ARGE to establish a formal industrial dispute. ARGE argued that there was no dispute, and it took four months before the Commission agreed with the RTBU's position.

September 2001

ARGE circulated a draft of working conditions and rates of pay to the union and employees. They were based on the third-rate IWAs. This draft Agreement was unacceptable to the RTBU as there was no underpinning Safety Net Award.

January 2002

Because of delays and lack of progress RTBU requested the Commission to arbitrate on a Federal Award.

Numerous conferences between the parties, and formal hearings (court hearing for the safety net award commenced in April 2001), concluded with written submissions on the 9th April 2002.

May 2002

Commissioner Larkin hands down decision on Unions application for an award. Further hearings required.

Background to our Federal Award

On the 22nd May 2002 Commissioner Larkin of the Australian Industrial Relations Commission handed down a 101 page decision on the RTBU, AMWU and CEPU's application for a new federal award to cover ARGE Pty Ltd in Western Australia. A number of important issues remained outstanding and were to be the subject of further conferences and/or hearings before the Commission (Nov 2002).

Why the RTBU wants an Award for ARGE workers

The role of Awards in the Federal Industrial Relations System has changed significantly since the introduction of a formal enterprise bargaining system in the late 1980s. Emphasis is now placed on enterprise bargaining as the primary method for increasing wages and improving conditions.

In that environment, Awards are to provide a safety net of fair minimum wages and conditions - the foundation upon which enterprise agreements are built. They represent the yardstick against which any enterprise agreement is measured to ensure that employees are not disadvantaged by the proposed terms of an enterprise agreement.

Federal legislation has placed restrictions on the contents of Awards - the so-called 20 allowable matters - and encourages the making of enterprise agreements by tightening the rules on what can be put in an Award.

Nevertheless, an Award remains an important and integral part of the system of determining and regulating wages and conditions. It still provides the minimum standard for many important conditions such as wages, hours of work, allowances, leave and penalty rates. As the foundation for an enterprise agreement, it is critical. The firmer and higher the foundation, the less is the opportunity for an employer to undermine it through trying to exploit the bargaining process through, for example, attempting to introduce individual contracts (AWAs).

Key issues

1. Hours of Work

   The union's claim reflects current practice in ARGE and the RTBU's proposed certified agreement:

   Day workers - shift length 8.5 hours (9 day fortnight) as ordinary hours and up to 10 (as 8.5 ord + 1.5 overtime) by agreement. Ordinary hours worked Monday to Friday.

   Shift workers - shift length 8 hours (19 day month) as ordinary hours and up to 10 (as 8 ord + 2 OT) by agreement. This latter capacity to extend is a variation on current practice. Ordinary hours worked Monday to Saturday.

   The RTBU opposed ARGE's claim for Sunday working as ordinary hours.

   The union's position reflects a number of other rail awards and current practice in ARGE. This is an appropriate safety net, based on the standard 38 hour week while making allowance for ARGE's operational requirements. Any further changes on hours of work should be negotiated in the collective agreement.

2. Saturday / Sunday Work

   Shift workers working Saturday as ordinary time are presently paid time and a half for all hours worked. Employees rostered to work Sundays are presently paid double time for all hours worked. Sunday stands alone. The RTBU argued that the new award should not reduce these entitlements.

3. Classification Structure

   The RTBU claimed for a competency-based classification structure using the Transport and Distribution Training Board national competencies and national qualifications. These are modern frameworks, and both the RTBU and ARGE participate in the national and state TDT process. If needed, these frameworks can be refined in the collective bargaining process.

4. Relativities

   The RTBU accepted that the appropriate relativity for a Locomotive Driver is 130%, because 118.5% was the relativity in the earlier award in 1991, and work value changes since 1991 have increased the relativity to 130%. ARGE argued for a miserly 115% relativity. The Operational Maintainer's relativity should be 90% at entry, through to 110% at Level 6 - based on the competencies relating to each Level.

5. Kilowatt Allowance

   This allowance for operating difficult trains is longstanding, exists in other awards and rail systems across Australia. ARGE continued to avoid making a commitment to this payment.

6. Distance Allowance

   The union argued that this existing allowance recognises past productivity improvements. This productivity payment should not be eliminated by making a safety net award.

7. Held Away From Home Allowance

   ARGE pays this allowance after 12 hours, and other rail awards specify 10-12 hours. ARGE's unsupported claim for paying it after 15 hours was strongly opposed.

8. Limited Train Movement / Remote Control

   The union strongly opposed ARGE's claim that people other than qualified engine drivers should operate locomotives. Since ARGE does not use remote control at present, the union opposed the definition proposed by ARGE. Introduction of remote control by ARGE is a matter for proper consultation between all parties, and, if necessary, a matter for collective bargaining.

Prompt decision

Because the case has dragged out so long, Commissioner Larkin has indicated that her decision will be made promptly.

ARGE opposed tooth and nail all the major issues impacting on locomotive drivers.

The company's position in the Commission was so hard line, that the RTBU's barrister, who has had many experiences dealing with 'new right' employers, commented that ARGE are the 'Rio Tinto of the railway industry'.

The finalisation of the award claim and an early decision from the Commission will enable the RTBU collective bargaining campaign to begin in earnest. Members' support is the crucial ingredient.

Now is the time for ARGE workers to join together to press for fair and just wages and conditions for ARGE employees. It is in our own hands to end our status as Australia's poorest paid railway workers.