AOTC REDUNDANCY AGREEMENT 1993
A0810 CAS S Doc K7494
[Note this remains in force by operation of law. There have been some attempts by
Telstra to unilaterally modify this agreement. A complex series of cases ensued with
some modifications. However it was later ruled that the Commissioner
had no jurisdiction to make the changes. See internal database for cases.
AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION
Industrial Relations Act 1988 s.134C certification of agreement
Communication Workers Union of Australia and another (C No. 30337 of 1993)
AOTC REDUNDANCY AGREEMENT 1993
COMMISSIONER COX SYDNEY, 27 APRIL 1993
In accordance with section 134E of the Industrial Relations Act 1988, the Commission hereby certifies the attached memorandum of the terms agreed on between the Australian and Overseas Telecommunications Corporation Limited and the Communications Workers Union of Australia; Public Sector, Professional, Scientific Research, Technical, Communications, Aviation and Broadcasting Union; National Union of Workers; Automotive Metals and Engineering Union; Telecommunications Officers Association; Association of Professional Engineers and Scientists, Australia; Media, Entertainment and Arts Alliance; Australian Nursing Federation; Senior Managers Association (Postal and Telecommunications Commissions); Operative Painters and Decorators Union of Australia; Electrical Trades Union of Australia; Federation of Industrial, Manufacturing and Engineering Employees; Construction Forestry, Mining and Energy Union; Australian Liquor and Hospitality Miscellaneous Workers Union of Australia; and the Plumbers and Gasfitters Employees Union of Australia in this matter. This agreement shall come into force from 4 March 1993 and shall remain in force until 31 January 1995.
REDUNDANCY AGREEMENT INDEX
1.1 This agreement has been negotiated between AOTC and CWU and PSU acting as a single bargaining unit on behalf of award based members of all AOTC unions and applies to all such persons.
1.2 In negotiating this Agreement, the parties have sought to achieve:
(i) a process within which job security can be maintained for as many AOTC employees as possible, and within which redundancies which are necessary will be voluntary as far as is practicable;
(ii) the provision of fair compensation for employees who leave AOTC through redundancy;
(iii) a proper process for the consideration of alternative employment opportunities for excess employees whose genuine desire is for alternative employment within AOTC;
(iv) involuntary redundancy from AOTC only where there is no reasonable alternative employment available for those whose jobs are no longer required.
1.3 Having regard to the impact of deregulation and competition, AOTC is committed to the appropriate and ongoing redesign and restructure of the organisation, including the introduction of better and streamlined work practices, typical examples of which are contained in MEMO/CEMO, together with providing excellent customer service and the securing of the maximum number of viable, long term jobs for AOTC employees.
1.4 The arrangements set out in this agreement provide for voluntary retrenchment in all circumstances, other than where an employee refuses redeployment, retraining, relocation or transfer to another position, or where after a comprehensive three month examination, an alternative placement has not been able to be found. Both the unions and AOTC management believe that a co-operative and proper application of this agreement will maintain the essential skills and expertise necessary to maintain AOTC's leading position in the telecommunications industry.
1.5 Nothing in this Agreement shall be taken to infer that the unions have given up any rights in respect of consultation/negotiation concerning staffing and staffing structures. Accordingly, it is agreed between the parties that all existing staffing agreements shall continue to be adhered to.
1.6 Where either party believes that it is necessary to make changes to such agreements for whatever reason, expeditious consultation/negotiation will occur directly between AOTC and the relevant union/s.
2.1 Redundancies may arise in a number of circumstances, including where;
(i) the number of staff exceeds that required for the efficient and economical operation of the enterprise or parts of the enterprise,
(ii) staff cannot be used effectively because of technological or other changes in work methods, or changes in the nature, extent or organisation of the functions of AOTC, or
(iii) a necessary geographic relocation of the function performed by an employee occurs, and the employee is not willing to relocate to the new locality.
2.2 Accordingly, a potential redundancy situation will be deemed to exist where the operational requirements of AOTC for employees to carry out work of a particular kind have ceased or significantly diminished, and AOTC has determined that the function being undertaken by an employee will no longer be undertaken within AOTC or at that location within AOTC.
3.ENTITLEMENT TO VOLUNTARY RETRENCHMENT
3.1 While this agreement provides avenues by which employees may be selected for voluntary retrenchment or elect to be voluntarily retrenched, it is noted that there is no automatic right to voluntary retrenchment.
3.2 AOTC specifically reserves the right to reject applications for voluntary retrenchment, having regard to its overall staffing requirements and the need to retain necessary key skills and expertise for the ongoing viability of the organisation.
4.IDENTIFIED EXCESS INDIVIDUAL POSITIONS
4.1 Where clearly identified individual positions (including all positions in a single c lass of positions at a single location) become surplus to AOTC's requirements, persons occupying such positions may be invited to elect to be retrenched in accordance with the following procedures.
4.2 AOTC will simultaneously advise the State Branch of the appropriate union and the occupant of the position that the position/s is excess to requirements. This advice will be provided through Forms A and B (Attachment 1). One copy of Form B shall be provided in relation to each surplus position.
4.3 All relevant information is to be provided to the union and will include classification, location and details of the employee and, where consequential changes in the staffing structure are proposed, the number and classification of employees in that part of AOTC, the number and classification of employees expected to be required for the performance of any continuing function in the part of AOTC affected, and details of the employees likely to be affected.
4.4 If they are required, discussions with the union will conclude within two weeks of the provision of advice on Forms A and B, but may with AOTC's agreement, be extended on a case by case basis.
4.5 In addition to the matters identified in Sub-clause 4.3, discussions with the relevant union shall include the background to the excess staffing situation, the measures, if any, which could reduce the incidence of employees becoming excess to requirements, and any planned recruitment.
4.6 If the union confirms that there is no need for discussion, AOTC may immediately proceed to advise the employee that he/she may elect to be voluntarily retrenched, with provision for a one week cooling off period from the date of advice. Retrenchment occurs at the conclusion of the formal notice period (four weeks), or some earlier date by agreement.
4.7 Where the outcome of consultation with the union is confirmation that the position is surplus to requirements: the occupant will be advised and redeployment, relocation, retraining and retrenchment preferences will be canvassed and AOTC may immediately advise the employee that he/she may elect to be voluntarily retrenched, with provision for a one week cooling off period from the date of that advice. Retrenchment occurs at the conclusion of the formal notice period, or some earlier date by agreement.
4.8 Where relocation, redeployment and/or retraining is the occupant's preference, AOTC will take all available steps to secure such an outcome. The measures to find a suitable position will include full discussions with the individual on all available options across the whole AOTC organisation. The union will be involved in those discussions, except where the individual indicates that this is not necessary - such involvement should not delay the process. Where there is a vacancy which would permit the redeployment, relocation, retraining of an employee excess to requirements, and more than one employee makes application for the vacancy, the redeployee (or most efficient redeployee) will be selected unless he/she is assessed as not competent for the job.
Where an employee, other than an employee identified for redeployment, is prepared to accept management initiated retrenchment, AOTC shall retrench that employee to allow redeployment of an employee identified for redeployment, relocation and retraining. This will occur within the restrictions outlined in paragraph 3.2. In addition to established redeployment and relocation mechanisms, which will be automatically activated, the employee will be afforded opportunities to personally investigate employment options inside AOTC and, where approved by management, outside of AOTC. If requested, personal development training will be made available to the individual to assist in this process.
4.9 After a one month investigation of all available options, or sooner if agreed, AOTC may initiate a redeployment/relocation of an employee to another position/location, the function of which the employee is reasonably capable of undertaking, after receipt of necessary training and experience.
4.10 Where the redeployment is to a lower position, full salary maintenance will apply for two years on the basis of ongoing management action to place redeployees, over time, at their nominal level and their acceptance of such placement. An employee review will proceed in relation to redeployees receiving salary maintenance for more than two years. No redeployee however will have his/her salary maintenance ceased unless he/she has refused a reasonable opportunity for placement at their nominal level.
4.11 For the purposes of this agreement, salary maintenance will include normal incremental advancement through the salary range of the position, and future wage adjustments for the position the employee was occupying immediately before the position was declared surplus to requirements. Maintenance of higher duties for redeployees will be paid in accordance with the following:
(i) where, at date of redeployment, the redeployee is employed on short term higher duties (i.e. up to six months), the higher duties payment is to continue as income maintenance for the previously authorised higher duties period;
(ii) where, at the date of redeployment, the redeployee is employed on long term higher duties, the higher duties payment is to continue as income maintenance for six months. Except that where an employee has accrued a minimum of twelve months higher duties service in the previous fourteen months, higher duties payment is to continue as income maintenance for a period equal to half the length of higher duties service in the preceding two years.
4.12 Relocations involving a change in domicile are to be avoided wherever possible. Such offers of relocation are not to be made with the objective of having an employee refuse an alternative placement. Where however, the only available change in position involves relocation, and the new work location is of such a distance from the employee's residence as to necessitate a change of domicile, standard relocation arrangements will apply. Where an employee does not wish to change domicile and there is no foreseeable prospect of alternate employment in the local area, AOTC will, in consultation with the employee concerned, agree to retrench the employee.
5.1 Where an employee refuses a management initiated redeployment/relocation decision made in accordance with Sub-clause 4.8, the employee may be involuntarily retrenched after a period of two weeks from the advice of the management initiated transfer/relocation.
5.2 Where it has not been possible to identify a suitable redeployment/relocation after a three month investigation and no prospect of such a redeployment/relocation is identifiable, the employee may be involuntarily retrenched after a period of two weeks following advice to the employee and concurrent advice to the relevant union. Payment of four weeks wages will be made in lieu of notice, plus the other redundancy payment provided for in this agreement.
5.3 A retrenchment under clause 5.2 can only be effected where the National Human Resources Manager of the Business Unit concerned certifies;
(i) that a minimum three month investigation of suitable redeployment/relocation opportunities has proceeded across all designation categories of the Corporation, and
(ii) that such investigation has failed to identify a suitable opportunity, including through the voluntary retrenchment of another employee, and AOTC has concluded that the employee is not capable of being redeployed, retrained or relocated to any other position in the Corporation.
5.4 Where but for AOTC's refusal to accept an application for voluntary retrenchment for another employee engaged in the same work at the same level and in the same location, the excess employee could have been placed, the excess employee will not be involuntarily retrenched.
5.5 Without in any way limiting any rights under the Australian Industrial Relations Act, an employee affected by a decision that he/she be involuntarily retrenched will be informed that he/she has a right to have the decision reviewed by a Review Board, subject to such application being made within a two week period from the date of notification of the decision.
5.6 A Review Board will exercise its power having regard to the principles of natural justice, and be constituted of:
(i) a Chairperson, being a person who performs the function of a Chairperson of the Promotion Appeal Board:
(ii) an employee nominated by the Corporation for the purpose of the appeal; and
(iii) an employee nominated by the appropriate staff organisation prescribed under Clause 36 of the Telecom General Conditions of Employment Award 1989
5.7 Where an employee seeks review of a decision that he/she be involuntarily retrenched, the Review Board will expeditiously hear the matter and recommend confirmation, or if it finds that the management certifications have been inappropriately made, revocation of the decision.
5.8 An involuntary retrenchment will be stayed pending the outcome of Review Board considerations.
6. MULTIPLE EXCESS POSITIONS WITHIN A CLASS/CLASSES OF POSITIONS AT ONE OR MORE LOCATIONS
6.1 Where a number of positions within a class/classes of positions are identified as being surplus to requirements, persons occupying such positions may be invited to elect to be retrenched in accordance with the following procedures.
6.2 AOTC will advise the State Branch of the appropriate union that a number of positions are excess to requirements. This advice will be provided through Form A (Attachment 1), and a general advice of excess positions will be provided to staff in the class/classes of positions at the location/s concerned.
6.3 All relevant information is to be provided to the union and shall include number, classification, location and details of the employees and where consequential changes in the staffing structures are proposed, the numbers and classifications in that part of AOTC, the number and classification of employees expected to be required for the performance of any continuing function in the part of AOTC affected, and details of the employees likely to be affected.
6.4 Discussion with the appropriate union shall conclude within three weeks of advice on Form A, but with AOTC's agreement may be extended, depending on the numbers of positions and complexity of the issues to be addressed.
6.5 In addition to the matters identified in Sub-clause 6.3, the discussion with the relevant union shall include the background to the excess staffing situation, the measures, if any, which could reduce the incidence of employees becoming excess to requirements, and any planned recruitment.
6.6 Where the outcome of consultation with the union is confirmation that a position or number of positions are surplus to requirements, employees in the affected areas will be advised accordingly, and redeployment, retraining, relocation and retrenchment preferences will be canvassed.
6.7 The identification of employees who are potentially excess to requirements will ensure that all affected employees within the class/classes of positions are offered an opportunity to volunteer for retrenchment.
6.8 Within the specifically reserved right of AOTC to refuse any application for voluntary retrenchment, the ranking of volunteers will give priority to staff with the longest period of service. Ranking however, should also have regard to age, job skills, the practicability of redeployment, relocation, retraining and personal circumstances on an individual basis.
6.9 Where, as a result of the above consultation, the number of employees willing to accept voluntary retrenchment matches or exceeds the number of positions excess to requirements, after a one week cooling off period and the issue of formal notices, voluntary retrenchment elections, to the requisite number, will take effect at the conclusion of the formal notice period or intermediate point by agreement. Notwithstanding the conclusion of retrenchment actions, the consultative processes in respect of any consequential changes in staffing structures and the performance of any continuing function in that part of AOTC affected by the retrenchment/s shall be finalised.
6.10 Where there are more positions excess to requirements than employees who are willing to accept or elect voluntary retrenchment, the redeployment, retraining and/or relocation measures in accordance with Clause 4 will apply. Involuntary retrenchment will only apply where these processes do not result in a redeployment or relocation, and in accordance with the circumstances set out in Section 5.
7.1 AOTC has agreed to a new benefit framework on the basis that;
(i) a comprehensive process for handling situations of redundancy in AOTC in the future is essential to achieving a restructuring of the telecommunications industry and to union acceptance of that restructuring, and
(ii) AOTC unions have agreed to all other elements of this proposal, and
(iii) AOTC unions and the ACTU have given a firm commitment not to seek flow of the arrangements elsewhere.
7.2 The agreed benefit framework is;
(i) four weeks pay for each completed year of continuous service up to five years,
(ii) three weeks pay for each completed year of continuous service thereafter, plus a pro-rata payment for each completed month of continuous service since the last completed year of continuous service.
(iii) for employees over fifty years of age, four weeks pay for each year of service beyond fifty years of age, including pro-rata adjustment for each completed month of continuous service since the last completed year of continuous service,
(iv) the minimum sum payable under these arrangements, including any payment in lieu of notice (four weeks), to be eight weeks salary and the maximum to be eighty-four weeks salary,
(v) the sum payable to an employee under these arrangements not to exceed the sum of salary that would be payable were the employee to continue in employment until the maximum retiring age.
7.3 For the purpose of calculating any payment under Sub-clause 7.2:
(i) where an employee has been acting in a higher position for a continuous period of at least twelve months immediately preceding the date on which the employee receives notice of retrenchment, the salary level shall be the employee's salary in such higher position at that date;
(ii) where an employee has, during fifty per cent or more of pay periods in twelve months immediately preceding the date on which the employee receives notice of retrenchment been paid an allowance for shift work, the weekly average (calculated over a year) amount of shift allowance received during the twelve month period shall be counted as part of 'weekly salary';
(iii) other allowances, being allowances in the nature of salary, may be included with the approval of AOTC.
8.ANNUAL LEAVE AND LONG SERVICE LEAVE
8.1 On termination, employees will be paid all untaken annual leave in credit plus any accrued pro-rate annual leave, calculated from their last anniversary date to the date of termination. Both the untaken annual leave and pro-rata annual leave will attract the seventeen and one half per cent Annual Leave Loading.
8.2 While normally employees are not entitled to pro-rata long service leave until they have accrued ten years continuous service, employees retrenched under this Agreement shall on termination receive payment for an amount equivalent to pro-rata long service leave after one year's continuous service.
8.3 Employees who have attained ten years continuous service will be paid their accrued long service leave balance, plus pro-rata long service leave entitlement for each completed month of service from their last long service leave anniversary date.
9.VOLUNTARY MOVEMENT OF HOUSEHOLD
Where in accordance with the consultation processes provided in this agreement, an employee excess to requirements moves household to a new locality to take up a redeployment/relocation opportunity, the employee will be entitled to all reasonable expenses associated with that move on the same basis which would-apply if the employee were being transferred.
The formal notice period provided under the arrangements will be extended by any periods of certificated sick leave taken during such period.
11.AGREEMENT NOT TO PREVENT OTHER ACTION
Nothing in this agreement can be used to circumvent existing AOTC staff mobility agreements, or to prevent the reduction in classification of an employee or the retirement of an employee as a result of action under discipline, invalidity, inefficiency or loss of essential qualification provisions.
All standard superannuation entitlements will apply to employees retrenched under these arrangements.
Any employee with a right to return to employment in the APS must formally relinquish that right before being retrenched in accordance with this Agreement.
14.1 Employees of AOTC at the date of certification of this agreement, whose absence from Commonwealth employment was not in excess of 12 months and who have not been in receipt of any redundancy payment, will be deemed not to have broken continuity of service for the purpose of this Agreement.
14.2 From the date of certification of this Agreement, the following conditions will apply to all new employees of AOTC for the purpose of this Agreement:
Continuous service will only include service with other Commonwealth employing authorities, or service with the defence forces which is recognised for long service leave purposes by AOTC, provided that;
(i) There has been no break in successive periods of service; and
(ii) Service with the former employer was not terminated because of retrenchment; inefficiency or loss of essential qualification, forfeiture of office, dismissal on disciplinary grounds; termination of probationary appointment because of unsatisfactory service; or voluntary retirement at or above the minimum retiring age applicable to the employee. Receipt of retirement superannuation benefit is a conclusive indication of age retirement.
14.3 Notwithstanding the above, all service with the Australian and Overseas Telecommunications Corporation or its predecessors will count for service for the purpose of this Agreement, subject to any absence not being in excess of 12 months. Such absence will not count for service but will not break continuity for the purpose of this Agreement.
15 - CONTINUOUS SERVICE - EMPLOYEES WHO HAVE RETURNED FROM INVALIDITY RETIREMENT
15.1 AOTC will recognise prior service where it has previously retired an employee on invalidity grounds and where the employee has not been in receipt of any redundancy payment, regardless of the period of absence. The period of absence will not break continuity for the purposes of this Agreement but will not count for redundancy benefit purposes.
16 - CESSATION OF OTHER PROVISIONS
16.1 At the date of application of this Agreement, the Telecom Redundancy Award and the RAGE guidelines will cease to have application to employees of Telecom who became employees of AOTC on 1 February 1992, except that in any situation where either would deliver a greater retrenchment benefit than provided for in this Agreement, that benefit be payable.
16.2 At the date of application of this Agreement, the Redundancy Provisions Australian Government Employment Award 1986 will cease to have application to employees of OTC who became employees of AOTC on 1 February 1992, except that in any situation where that award would deliver a greater retrenchment benefit than that provided for in this Agreement, that benefit would be payable.
17 - DISPUTE SETTLEMENT PROCEDURE
17.1 This agreement contains extensive consultative, protective and review mechanisms including a right of access to a formal independent Review Board for employees who are involuntarily retrenched.
17.2 If any matter is in dispute, it should be resolved between the parties in accordance with arrangements contained within this Agreement.
17.3 If any matter in dispute cannot be settled between the parties, it may be submitted by either party to the Australian Industrial Relations Commission for conciliation/determination.
17.4 While any dispute is in the process of being resolved, work will continue without interruption in any manner whatsoever to customer service or AOTC operations.
17.5 Should an individual case/cases of involuntary retrenchment become the subject of dispute, subject to it/them having been processed in accordance with the Agreement, there is no obligation on management to stay the involuntary retrenchment following the outcome of a Review Board finding recommending confirmation of the involuntary retrenchment. Operation of this clause does not diminish or limit in any way, the legal rights of employees or AOTC.
 | Telecom |