1 TITLE

1.1 This Agreement will be known as the Australia Post Enterprise Agreement 1999-2001.

2 OBJECTIVES

2.1 This agreement signals a partnership between key stakeholders in a situation where Australia Post faces:
* substantially greater direct competition and also indirect competition through product substitution;
* a rapidly changing 'environment in terms of technology, and customer expectations.

2.2 The key goals are to work together to make further substantial improvements involving:
* productivity, flexibility, cost efficiency, quality and customer responsiveness and service reliability
and at the same time
* enhancing employee participation, skills, job satisfaction rewards and prospects for on-going employment.

2.3 These goals will be achieved through:
* introduction of wide-ranging workplace and network change and improvements in efficiency;
* vigorous pursuit of new business in competitive areas to increase revenue and create new employment opportunities.

3 VALUES AND GUIDING PRINCIPLES

3.1 The shared corporate values which will guide the process of change cover:

Commitment to customers We place the highest priority on customers and everything we do will be directed to ensuring reliable quality customer service.

Recognising and developing capability We see people as our key asset and we M11 ensure everyone's capabilities and effectiveness are fully utilised and further enhanced through investment in their development. An important element is acknowledging and valuing diversity across the corporation.

Shared business understanding We are committed to ensuring that there is a shared understanding of our business operations and future challenges in a way that creates commitment and partnership. Ensuring participation and involvement We are committed to providing everyone with opportunities to work collaboratively and positively contribute to issues that enhance workplace effectiveness. We will work together to cooperatively resolve issues or differences in a way which ensures the business is not adversely affected.

Creating and maintaining a safe and We are committed to conducting our business in a manner that is healthy work environment safe and healthy for everyone affected and meets @high environmental standards.

Being open and fair We will share information openly and treat each other fairly.

Setting high standards We aim for the highest possible standards in everything we undertake - the aim is world's best practice in terms of results for stakeholders and our role in the community. Our full commitment and discretionary effort is directed to this end.

Taking accountability We will, consistent with our capability, understanding and opportunity, take pride in our contribution and performance and accept accountability for the outcomes.

Acknowledging achievement We will recognise contributions and share in our success. Where we fall short we will Find constructive and effective solutions.

Encouraging flexibility and adaptiveness We will encourage innovation, problem solving and continuous improvement in everything that we do.

3.2 Consistent with these values workplace and network change will be in accordance with the following principles:
* ensuring operational efficiency, full reliability and continuous improvement towards best practice;
* ensuring that with any technology employee skills are maximised;
* ensuring that in job re-design and work re-organisation that there is maximum opportunity for job enrichment;
* focussing training and development on adapting and up-grading of employee skills through an industry based competency framework;
* providing adequate resourcing of training and ensuring that people have fair, reasonable and non-discriminatory opportunities to upgrade their skills to changing work requirements and opportunities;
* designing Fostering and opportunities for rotation which meet the need for stability and operational efficiency with flexibility for any special needs of staff;
* providing opportunity for staff to be involved in the detailed work design and working arrangements affecting their area;
* ensuring the cultural diversity of the workforce is, acknowledged and valued and incorporated throughout the planning and change process;
* ensuring the need to balance work and family responsibilities is also acknowledged and incorporated into the planning and change process;
* ensuring all equipment is safe and ergonomically sound;
* ensuring all workplace systems of work will comply with workplace OHS standards;
* providing development and career opportunities through introduction of new skills and learning opportunities;
* ensuring work structures, staffing and systems are efficient and in accordance with the award without reliance on excessive levels of overtime or unpaid work;
* recognising that consultation between the parties on these change initiatives is essential for the successful transition to the network change initiatives.

4 JOB SECURITY

4.1 Australia Post recognises that employment security is one of the general characteristics of best practice organisations and is confident that with consultation and co-operation on staffing strategies, the change program for the duration of EBA can be managed without resort to involuntary retrenchment.

5 CONSULTATIVE RELATIONSHIPS

5.1 We recognise the desirability of -maintaining positive relationships between all stakeholders including employees and employee representatives. All parties agree to:

(i) abide by national Agreements and Awards;

(ii) ensure that positive two-way relationships with employees and unions are maintained;

(iii) take all reasonable steps to ensure that any differences are dealt with constructively and in particular that any industrial or interpersonal issues are handled in a way which avoids disruption to customer service or business performance;

(iv) whilst recognising that there are some areas of difference, relationships will be kept under regular review at both State and national level with a view to ensuring that they remain positive and constructive and occurring at all levels of the business;

(v) where there is agreement on key issues opportunities will be provided for joint briefings. 5.2 It is agreed that, subject to on-going co-operation in the implementation of change, the maintenance of positive relationships and compliance with dispute resolution processes, Australia Post will continue to deduct union dues for the principal unions where such arrangements are currently in place in accordance with the process established under EBA 3. 5.3 To assist in maintenance of constructive relationships it is agreed that:
* there will be a reconstitution of the National Consultative Forum and appropriate State forums in a way which assists in promoting greater business and strategic involvement;
* an agreed implementation framework for this Agreement will be established at the National level, including arrangements for receiving regular reports from States and ensuring that consultative processes are in place and adhered to;
* a general joint review initially at the National level of our consultative agreements/arrangements.

6 NETWORK/BUSINESS UNIT CHANGES

6.1 There is agreement to fully support Stage One of Future POST initiatives as set out in detail at Schedule A. Briefly these changes involve:
* smooth implementation of technology in existing facilities and the opening of new "world class" mail processing facilities at Strathfield and Dandenong;
* operational training and development of team skills.

6.2 The parties agree to the development of new industry based team working competencies and implementation of associated training and assessment processes for Strathfield and Dandenong as "lead" facilities with scope to extend the arrangement to other facilities, subject to further experience and consultation, on a phased basis.

6.3 As part of this change a special skills loading of $577 would be payable to mail officers within team based arrangements w hen:
* they have successfully completed the relevant formal training and
* the team is undertaking the expanded roles and accountabilities.

6.4 The detailed skill elements will be the subject of further consultation but will provide opportunities for skill enhancement and recognition similar to other high performance organisations where team roles encompass elements such as work planning, safety, communication, quality, etc. 6.5 The network will be subject to continuous review in the light of changing customer needs. Any currently unforeseen changes will be preceded by consultation with staff and unions so that they understand the business need, the alternatives available and there is reasonable time to implement change in a way which takes account of any issues raised.

6.6 The parties are committed to undertaking a joint post audit process commencing no later than I July 2000 covering:
* work practices and job design;
* technology issues.

6.7 The parties agree to co-operate in the development and implementation of a National competency framework for mail processing which will be based on:
* a structured induction program;
* industry and Australia Post specific competency standards
* Frontline Management (FMI) competency standards for Team Leaders and Managers
* targeted training for specific initiatives.

6.8 In relation to the introduction of video coding, the following parameters are agreed:
* an appropriate means of evaluating individual and group operator performance in video coding will be implemented in a way that uses the systems capabilities in a positive way to develop staff skill's and system performance. Principles will be developed in consultation with the union and staff to ensure that any performance evaluation is fair and transparent to all operators;
* whilst the minimum keystroke rate required for permanent appointment to a position as a Video Coding Operator will be 10,000 keystrokes at 98% accuracy, existing Mail Officers who wish to undertake video coding will be provided with a prescribed period of skills training in which to achieve the required rate;
* during video coding, a task break of ten minutes after 60 minutes coding will apply;
* task breaks are not cumulative but may be taken concurrently with tea or meal breaks;
* video coding will be encompassed within the Mail Officer structure and staffing levels will be developed to incorporate permanent relief for recreation leave;
* where shift start/finish times are staggered staff will not be disadvantaged in terms of work and family commitments or, access to overtime.

6.9 In relation to technical maintenance, it is agreed as set out in Schedule B, that there is a shared commitment to ensuring an efficient, reliable and cost effective technical maintenance function.

* Delivery

6.10 Our capacity to meet the future challenges will depend significantly on implementation of an unparalleled level of change, for our Delivery operations. These changes will include the Stage I Delivery related initiatives at Schedule A and the ongoing roll-out of the new V Sort modules across the network which will be fully supported by the parties.

6.11 Implementation of VSORT will be in accordance with the following principles:
* consultation between the parties and involvement of staff is essential for successful implementation of the new equipment;
* appropriate consultative processes will be established at the National and State levels
* these will include specific processes for dealing. with disputes about VSORT implementation, including issues relating to reasonable adjustment times;
* all affected employees will be involved in the implementation planning and consulted routinely, each, facility will establish a local steering committee. There will be consultation with the CEPU nominee before recast rounds are implemented;
* all staff will be trained on the changed work practices and staff at each centre will be familiarised with the operation of the recasting model prior to recasting;
* miscellaneous times in the recasting process will be redefined with both fixed and variable components. These will be assessed and agreed upon on a local basis prior to the implementation of VSORT in any particular office - if agreement cannot be reached at the local level, the matter will be dealt with in accordance with the dispute settlement process. Agreed guidelines on the miscellaneous components can be found in the VSORT management manual;
* when remodelling, part-time and supervisory positions will be considered separately from full-time positions included in -the model;
* the parties recognise the need to take account of local conditions when establishing longer rounds under the VSORT program. The CEPU and Australia Post will jointly develop, appropriate risk assessment guidelines at the National level. At State level agreed trigger points will be developed and used to commence such assessments;
* the parties agree that, when recasting rounds, consideration will be given to reducing excessive levels of overtime before malting adjustments to staff numbers;
* a reasonable adjustment period will be allowed for employees to adjust to the new frames and Australia Post will ensure that during this period employees not required in the longer term may be left in the facility to provide short term implementation/transition assistance;
* a review will be undertaken during the transition process before any staff are released - this review will include sorting rates impact on service standards and on overtime levels. The outcome of this review will be considered by the local Steering Committee and a copy provided to the CEPU nominee for consideration before staff are released;
* when positions excess to requirement are identified the principles of the RRR Agreement will apply - VRP's will not be offered if resourcing adjustments can reasonably be achieved by the release of fixed term staff or redeployment.
* staffing levels will be adjusted if experience during the transition period establishes that resources are inappropriate;
* the parties will continue to work with external professionals to monitor/review the appropriateness of Australia Post's modelling benchmark sort rates and to develop an appropriate approach to setting sort rates;
* ensuring all equipment and associated work practices are safe and ergonomically sound;
* the parties will continue to monitor, discuss and address OHS issues (including issues relating to increased outdoor times).

6.12 The parties acknowledge that effective implementation of these changes will be facilitated by the development of an industry based competency based human resource framework for Delivery employees and commit to the specific initiatives outlined at Schedule C.

* Retail

The Retail business is facing a number of challenges. Management is vigorously seeking new revenue opportunities, particularly in the area of retail merchandise, to help offset the potential downturn in revenue that may occur with the further advent of competition and technological advances. For example, revenue from agency business may taper off as agency principals find alternatives to over-the-counter business. The parties will work together to develop strategies to address these challenges. This will include joint consideration of the issues covered by the working party which reviewed the Retail structure in 1998, and the development of a national competency based framework for the Retail business in light of the commitment at Section 7 to an industry based competency framework.

* Other Business Streams/ New Business Opportunities

6.14 It is agreed that Australia Post will jointly develop with employees and unions integrated strategies for achieving high performance in all business streams including areas such as Sprintpak, Parcels and Property. Arrangements/timetables for developing these strategies will be subject to further dimensioning.

6.15 The parties agree that they will co-operate in the pursuit of new business opportunities.

7 TRAINING AND DEVELOPMENT

7.1 Training that provides employees with relevant skills is a key element for the successful implementation of new technology and successful business performance.

7.2 There is commitment to an integrated competency, based framework. This framework will define the required individual and business outcomes for successful performance and links with development, learning, performance management, recruitment and selection as well as providing a basis for job classification.

7.3 The parties support the principle of industry based competency frameworks which provide a basis for structured training and recognition of prior learning for all employees. Action will be undertaken to integrate state based elements with a national approach which includes involvement with the National Training-Framework and development of competency standards and training packages for national accreditation.

7.4 Australia Post is committed to providing induction training and on-going development programs together with the necessary resources to ensure that staff
* fully understand the work environment;
* understand what is expected of them; and
* are provided with the skills and knowledge necessary to. perform their jobs competently, effectively and safely.

7.5 There is agreement between the parties on the joint development as a matter of priority, of a Performance Management Framework for award staff which:
* will provide for individual feedback and development;
* is based on relevant competencies as well as key, business performance indicators;
* is well communicated and easy to understand;
* is generally regarded by employees as being fair and equitable; 9
* will provide the underpinning to a structured, objective Approach to development and under performance issues; and
* is flexible enough to cater for the different needs/characteristics of the different parts of the business whilst focussing on Corporation goals.

7.6 The parties agree to consult on development of a scheme with a view to having it in operation in mail processing by I July 1999, and progressively for other categories thereafter.