1. The Challenge of Competition

1.1 This Agreement is aimed at creating a dynamic Australia Post that is able to meet and overcome the rapidly changing competitive pressures existing both in Australia and globally. It will provide the foundation to look towards the next century with confidence.

1.2 It is accepted that although the business has been performing very strongly, the future cannot be taken for granted. The forces of direct and indirect competition, the rapidly changing and highly competitive world communications market means that we are at a turning point.

1.3 It is accepted that we need to respond to this challenge whilst the business is strong. Given the time necessary to make changes, such as launching new products and investing in new equipment, it will be too late if we wait before taking action.

1.4 Our response will be directed through the following initiatives:

- providing enhanced levels of service and value to customers;
- working participatively;
- continuously improving all business processes;
- investing in new networks and new technology;
- developing new products and business opportunities in Australia and overseas;
- developing the skills and opportunities of our people.

2. Business Outcomes

2.1 As in past agreements this Agreement is built around the understanding that in the final analysis, it is the productivity and profit growth of the business that enables benefits to be shared between the shareholder, the customers, the business and the staff.

2.2 This Agreement is built around co-operation in the implementation of the associated changes underpinning the Agreement and achievement of the following productivity levels:
- 1996/97: 5%
- 1997/98: 5%

2.3 The parties will consult regularly during the life of the EBA on the progress towards these targets and on any program adjustments or other special circumstances arising.

3. Quality Customer Service

3.1 There is already wide recognition of the importance of customer satisfaction. In a changing competitive environment, standards in this area must also be continuously improved.

3.2 It is agreed that an overriding priority should be to streamline work processes, policies and practices, together with training and development at all levels so that customers receive real improvements in both value and service through:
1. Competitive prices
2. Higher quality
3. Reliability/On time delivery.

4. Best Practice and Process Improvement

4.1 Best practice can be regarded as achieving an overall best result when compared internally, externally or on a world scale. In a dynamic world where others also improve it is a never-ending process hence the focus is on both evaluation of 'best practice' and on process-improvement.

4.2 The primary means by which everyone in the Corporation can make a contribution to meeting competition and providing customer service is through participating in the continuous improvement of every aspect of their work.

4.3. Process improvement is already occurring and will be extended and promoted across all business streams. Without limiting the opportunities for improvement there will be particular focus upon:

(i) improvement and streamlining of all administrative processes and information systems in all areas so as to provide value and service to internal and external customers;

(ii) the spread of best practice performance in mail processing, delivery, transport and retail;

(iii) improvement of equipment operation and maintenance so that it performs at optimum levels;

(iv) adoption of flexible solutions that better meet local customer and operational needs - these can relate to resourcing, rostering and operational work processes. Particular attention would be focused on customer service issues such as ensuring that despatch times are consistently met for all mail products.

(v) quality process improvement affecting safety, training and employee diversity.

4.4 Process improvement efforts will be supported across all business streams by adequate training to enable staff to undertake the projects effectively.

4.5 There will be support for the transfer and adoption of best practice solutions from one work area to another. This will be undertaken through:
- information sharing
- recognition of 'best practice achievements'
- an emphasis on cross-functional teams to specifically transfer the learning.

The parties will explore other means including policy changes that can promote the spread of best practice across the Corporation.

5. Business Innovation

5.1 In a changing environment new products and business opportunities need to be vigorously pursued as well as ongoing effort made to grow core business levels.

5.2 The parties agree to following approaches involving:
- early consultation on business opportunities;
- general briefing on business directions through the National Consultative Forum and at the State level;
- joint exploration of the opportunities arising out of the 'Innovation Statement' issued by the Commonwealth Government;
- adopting best practice principles and processes in relation to any initiatives to be pursued.

6. Network Restructuring

6.1 The configuration and performance of the network needs to be constantly upgraded to meet competition and changing customer needs.

6.2 The parties will continue to co-operate in the restructuring of the retail network and in introduction of new products which enhance the viability of the network. Opportunity will be taken to use best practice process improvement to achieve these changes.

6.3 Australia Post and the single bargaining unit have agreed that network restructuring is required if Australia Post is to remain competitive and achieve world's best practice in providing letter and parcel processing and delivery services.

6.4 A long-term strategy is being jointly developed to enable implementation of appropriate sorting and handling technology enhancements and network structures. The parties will co-operate in the development of communications and consultative agreements encompassing implementation of the strategy and implications for skills, organisation, job design and resourcing needs.

6.5 While some changes will occur in the life of this Agreement, for example, some interim changes to the existing networks and some pilot trialling of new technology, the major changes are expected to be implemented in 1998/99.

6.6 The parties will work closely together to achieve successful early introduction of the changes required.

7. Work and Family Initiatives

7.1 The parties agree to undertake an education programme to ensure staff understand the opportunities available under EBA2 and will further evaluate the effectiveness of these initiatives. Consideration will be given to the extension of other work and family initiatives arising out of the New Links trials.

7.2 The parties will ensure that work and family considerations are also taken into account in process improvement and network- work change initiatives to enable, as far as practicable, rostering and job design arrangements which better balance work and family needs and create a more productive work environment.

8. Environmental Policy

8.1 The parties will support and encourage local initiatives designed to protect the environment through energy conservation, waste reduction and other actions. Considerable scope exists to apply best practice process improvements in this area.

8.2 The parties agree to support and monitor trials of a proposed Environmental Information System and, subject to satisfactory outcomes, extending the system to major facilities.

9. Building on Effective Change

9.1 The parties re-affirm commitment to the initiatives contained in EBA1 and EBA2. These initiatives continue to be available to promote workplace quality, customer service and continuous improvement unless superseded by specific later agreements. The parties will continue to promote and support such initiatives as part of continuous improvement in Australia Post.

9.2 As part of this process there will be ongoing support for the full participation and achievement of QS2 across the enterprise.

10. Sprintpak Division

10.1 It is agreed that the new Division is to be operated and expanded on a fully commercial and competitive basis within the overall corporate framework. To assist this transition it is agreed that this will involve:
- ongoing implementation of relevant parts of the existing Sprintpak Section170 Agreement;
- understanding and utilisation of the flexibility provisions available under the consolidated Australia Post awards;
- co-operation in the full utilisation of existing technology and in further enhancements;
- further restructuring including streamlining of administra tive functions and expansion into new facilities and locations.

10.2 These initiatives will be pursued in accordance with established participative and consultative processes and best practice process improvement approaches.

11. Other Matters

11.1 It is agreed that during the life of this Agreement, Australia Post will deduct union dues for the principal unions through the payroll system. The detailed arrangements will be the subject of separate agreement between the parties. Maintenance of the scheme is subject to ongoing co-operation in the implementa tion of this Agreement and the smooth introduction of change initiatives in accordance with agreed consultative and dispute resolution processes.

11.2 The parties agree that leave granted under Clause 48 of the General Conditions of Employment Award 1995 (Trade Union Training Leave) shall include the shift weekend and holiday ordinary duty penalties that the employees would have received had they been on duty.

12. Benefit Distribution

12.1 Corporate Bonus

The Corporate Bonus of $500 is payable to eligible employees from the first pay period commencing on or after 20 February 1997 subject to ongoing co-operation in the implementation of the Agreement and achievement of the corporate productivity target of 5% for the 1996 calendar year. The Corporate Bonus is subject to pro-rata arrangements as set out in the agreed eligibility conditions schedule.

12.2 Salary Adjustment

Salaries will be adjusted over the life of the Agreement and in ccordance with the following schedule: Salary Adjustment Schedule

Date Adjustment  (First pay period commencing on or after)
  20 April 1996      2% 
  20 October 1996    2% 
  20 February 1997   $500 Corporate Bonus*
  20 April 1997      2%
  20 October 1997    2.5%
  20 February 1998   Salary Effect of Corporate Bonus**

* Subject to ongoing co-operation in the implementation of the Agreement and achievement of the corporate productivity target for 1996

** Subject to continuing co-operation in the implementation of the agreement, including restructuring, best practice and ongoing productivity improvement, the Corporate Bonus will be translated into ongoing salary (calculated as 2.5%)

12.3 Subject to continuing co-operation in the implementation of the Agreement, including restructuring, best practice and ongoing productivity improvement, the bonus would be translated into ongoing salary for all employees with effect from the first pay period commencing on or after 20 February 1998 in accordance with the schedule at Attachment A.

13. Implementation

13.1 The parties agree to establish consultative and monitoring arrangements at the national and state levels to support implementation of this Agreement and associated initiatives which underpin the corporate business outcomes. At the national level this will occur through the National Consultative Forum.

14. Dispute Settlement

14.1 During the period of the Agreement any disputes or problems over the application or interpretation shall be resolved in accordance with the Joint Statement of Understanding.

14.2 Where the consultative process contained in the Joint Statement of Understanding fails to settle a dispute on matters arising from implementation of this Agreement the parties agree to refer the matter to the Australian Industrial Relations Commissioner (AIRC) and will abide by any recommendations made by the AIRC in settlement of the dispute.

14.3 The foregoing does not inhibit early notification of the AIRC of any matter in accordance with the processes of the Industrial Relations Act, should this be considered desirable by either party.

15. Reserved Matters

The following items are reserved on the basis that the parties, by agreement, may seek for them to be varied:

1. Technical Structure Interim Review.
2. Sprintpak (pay/structural arrangements Levels 1-3).
3. Flexible Remuneration Trials.
4. Workplace Flexibility (Section 170 Agreement) in accordance with agreed National parameters.
5. Traineeships - establishment of agreed scheme under National Training Wag Interim Award 1994.
6. PSO Tier 1/2.
7. AO6 allowance and equivalent levels.
8. Sales staff structure.