Schedule A NETWORK CHANGES - FUTUREPOST

The FuturePOST project has the objective of maintaining and improving Post's competitive position in the, mail business by providing and 'achieving high quality standards and reducing real postage costs. This will be accomplished by restructuring the mail network and introducing modem technologies, systems and processes.

The FuturePOST project will comprise 2 Stages
* stage 1 - 1999 -2000
* Stage 2- Expected from 2001 onwards subject to management review of Stage 1

STAGE 1

1. Key features and requirements of Stage I comprise -
* New mail sorting and handling technology.
* New Strathfield (NSW) and Dandenong (Vic) Letters Centres, and letter network restructure.
* Customer barcoding and letter presorting.
* New delivery address and sort plan systems.
* Human Resource strategies to ensure that workplaces of the future are highly productive, focused on customer service and apply best practice principles.
* Actions and consequences elsewhere in the network, - in delivery, retail, transport, hubs / consolidation centres, communication and business information systems.
* Maintenance of operational and service objectives during and after transition to the new network.

2. Mail sorting and handling technology -

Mail sorting and handling technology will be introduced as follows -
* Multiline Optical Character Readers (MLOCR) - 53 new MLOCR machines to read the complete letter address and apply a barcode to enable a deeper sort by the Bar Code Sorter.
* Barcode Sorters (BCS) - 56 BCS machines to read the bar coded address and enable a deeper letter sort to postmans rounds, box groups, and large users at mail processing centres.

The MLOCR and BCS machines will be deployed at 10 metropolitan facilities that will in future constitute key nodes in the national letters network.
* Video Coding System (VCS) -590 video coding consoles at 9 facilities to assist sorting of letters that the MLOCR cannot read.
* Tray Management System (TMS) - automated tray handling technology to distribute mail within the Strathfield and Dandenong letters facilities.
* Tray Labelling system - an automated bar coded tray label system to facilitate accurate transfer of mail throughout the network.
* Flat Optical Character Readers (FOCR) - automated " flats " sorting technology for postcode and round sorting of large letters.
* "Spectrum" flats sorting machines - to be installed at Strathfield and Dandenong Letters Centres initially to have a complementary role to support new generation FOCR's.
* "Spectrum" Parcel sorting machines - to be installed initially in the restructured parcels network in New South Wales and Victoria.

3. Network Restructure
* This involves the consolidation of the mail processing facilities in Sydney and Melbourne by the establishment of a new letters plant in Sydney (Strathfield) and Melbourne (Dandenong) supported by 2 upgraded existing facilities (Alexandria and St Leonards Mail Centres in Sydney and State and Melbourne City Mail Centre in Melbourne)
* Generally, letters for regional and some key country destinations processed in metropolitan centres will be sorted down to rounds.
* Some existing "AEG" OCR's will be relocated to selected country mail centres and used to sort letters originating within the catchment areas of those centres; others will be retained in the metropolitan mail centres to complement the new MLOCR's.

4. Customer Barcoding and Letter Presorting
* Customers will barcode letters to facilitate more, accurate processing and delivery.
* Letters will be presented in accordance with a simplified Letter Presort Plan, requiring only one pass through a BCS to sort to round level.

5. Delivery address and sort plan systems
* New address databases and directories will be established to develop sort plans which will be used by letter sorting equipment to accurately match and validate addresses on letters, and facilitate the sortation of mail.

6. Actions and consequences elsewhere in the network -
* Delivery - primary sorting work in delivery centres will be reduced by using new barcode sorting equipment to provide extended sorting breaks (to rounds) to the delivery network in metropolitan and some larger regional areas.
* Retail - mail will be streamed, presented, trayed and faced up to improve network efficiency.
* Transport - new or redeveloped facilities transport depots will be established in NSW and Victoria.
* Hubs / Consolidation Centres - Hubs / Consolidation Centres (generally colocated with retail, business and delivery centres) will be introduced to streamline mail flows into the major processing centres.
* Communication and Business Information Systems - new information management systems and communication links to exchange electronic data will be established to support production control within mail centres and the broader network.

SCHEDULE B TECHNICAL MAINTENANCE WORK DESIGN - FUTURE DIRECTION

Operating Framework

1.1 There is a shared commitment to ensuring an efficient, reliable, and cost effective technical maintenance function. In recognition of such commitment, it is proposed to:
* continue to develop an in-house technical maintenance capability for core mail processing equipment;
* provide technical staff with the necessary training on technical maintenance for new equipment;
* develop the people management and leadership skills of technical managers, shift leaders and technical team leaders through participation in the Frontline Management Initiative (FMI) which provides for national accreditation through the Australian National Training Authority (ANTA);
* develop a team-based environment which:
i) encourages and supports shared ownership of facility performance, values and behaviours with other operational areas and maintenance support functions; and
ii) encourages technical staff to work closely with and advise operational staff on matters affecting machine performance.
* consult regularly on any matters affecting equipment effectiveness, reliability and service, consistent with the shared corporate values.

Shared Vision for the Future

1.2 The parties agree to develop a shared vision for the future of the technical maintenance function which:
* develops the capability, overtime, to achieve world's first practice in technical maintenance based on reaching an optimum level of equipment effectiveness, at least operating cost, in a team-based environment;
* provides the potential for technical staff to enhance their skills and training in diagnostic, analytical and predictive maintenance techniques and undertake new, higher level tasks aimed at optimising overall equipment effectiveness; and
* develops the leadership and management potential of the technical maintenance function.

1.3 It is agreed that a draft Statement of Understanding on Service Reliability will be jointly prepared and will include the following points:
* the important role of Australia Post technical staff both currently and into the future
* the joint commitment to the values and guiding principles of workplace and network change contained in the EBA
* the fundamental importance of maintaining and developing a reliable and cost effective maintenance service
* strict adherence to dispute settlement and processes without industrial disruption.

Technical Role

1.4 Australia Post Technical Staff will undertake the maintenance of core processing equipment (including Letters and Parcels Sorting Machines) in the new Network. This provides the opportunity to achieve on an on-going in-house basis, high levels of internal expertise and continuous improvement which can be a source of competitive advantage to Australia Post.

1.5 Non core, first-in maintenance requiring minor fault rectification will continue to be provided by Australia Post technicians at retained Facilities on a site-by-site basis.

1.6 At Strathfield and Dandenong, non-core maintenance will be provided by a single building services maintenance contract. Any extension to other facilities will be subject to practical and efficiency considerations and would involve detailed consultation with staff and Unions.

1.7 Where technicians have an on-site presence they will also, have a role in providing first- in maintenance on video coding, with escalation procedures involving the National Technical Support Centre (NTSC) and IT support functions. This role will not be exclusive when other appropriately trained staff can undertake simple changeover of equipment, such as replacement of keyboards and monitors.

1.8 SAP Plant Maintenance will be introduced and maintained in all nominated mail processing centres, retail maintenance centres, EDI, Post and Parcels centres and higher level support facilities, such as NTSC. Maintenance procedures and policies will be implemented for new mail processing equipment with sub-assemblies under warranty being maintained by the appropriate authority.

1.9 Whilst the maintenance of tray management systems, (TMS) will, be externally contracted for an initial period of two years from the commencement of operation of Strathfield and Dandenong, Australia Post technicians will be provided with the opportunity to tender for the maintenance of TMS hardware as part of the expiry of the contract. As part of this process, and aimed at-ensuring that they have a full opportunity to develop a competitive tender, Australia Post technicians will be given familiarisation training on the TMS in advance. Assistance will also be given with the preparation of proposals for undertaking this work as an extension of core maintenance beyond the two year period.

Technical Structure

1.10 Australia Post supports the establishment of a technical structure for mail processing which will achieve and sustain best practice maintenance and this includes:
* Introducing Technical Team Leader roles at Level, 6 at Strathfield and Dandenong, and reclassifying existing Level 4 Technical Shift Leader roles to Level 5 at all retained major metropolitan mail processing facilities.
* Providing for the introduction of Specialist Skills Technical roles at Level 4 (Strathfield and Dandenong).
* Providing scope for the consideration (within 12 months of full operation) of separate specialist positions at Strathfield and Dandenong at Level 4 or Level 5 based on operational needs.
* Aligning technical management and supervisory positions with Frontline Management competencies and assessing against National Frontline Management Competency Standards.

1.11 Job descriptions will be amended and simplified to better reflect current business needs and changed roles and responsibilities, including the transfer of lower level maintenance tasks from technical to operational staff, such as clearing jams and refitting belts.

1.12 Similar to mail officers and consistent with the, above objective, 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 arrangements to other mail processing facilities, on a phased , basis, subject to further experience and consultation.

1.13 As part of this change, a special skills loading would be payable to operations (mail processing) maintenance technical staff at levels 3, 4 and 5 within team-based operations when
* They have successfully completed the relevant formal training; and
* The team is undertaking the expanded roles and accountabilities; and
* They develop an effective working relationship with maintenance support contractors and provide an on-going operational training support role for mail processing staff (providing advice on how best to optimise machine performance).

1.14 The loading to apply is
Level 3 $775
Level 4 $888
Level 5 $945

1.15 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.

1.16 The consultative and implementation process will be coordinated with team-based arrangements applicable for mail officers.

SCHEDULE C DELIVERY HR FRAMEWORK

1. Delivery Structure Post Audit

The parties remain committed to the thrust of the working group's recommendations and agree to implementation of the following specific changes/ initiatives:

* Teams

The parties will work together to maximise the effectiveness of teams in Delivery and will cooperate in the further developmental work outlined in Section 4 of this Schedule.

* Work Level Standards

The parties will discuss the future role / structure of WLS in the light of the development of competency based framework in Delivery.

* Administrative Support

The parties agree that there should be scope to classify Administrative support positions at the PDC 2 level and will give priority to determining appropriate classification criteria (as part of the competency project).

* Delivery Managers

The parties agree that all Delivery Centre Managers positions (at and above the PDC 3 level) should be referred to as Delivery Managers.

* Network Support

The parties will develop criteria for classifying these positions as part of the competency project.

* Postal Sorting Group

The parties agree that this group should be merged with the PDO Group and that PDC2 in charge of night sorting operations with more than 20 FTE's will be reclassified to the PDC3 level.
The parties agree that team arrangements in very large night sorting operations should be determined on a needs basis at local level.

2. Training and Development

The parties will cooperate in the development and implementation of a National Training and Development Framework which will be based on:
* A structured induction and development program
* Industry and Australia Post specific competency standards
* Frontline Management Initiative (FMI) Competency Standards for Team Leaders and Managers
* Targeted training for specific initiatives (such as the new Vertical Sorting Frames).

3. Structural Arrangements - Immediate Implementation

The following changes will be implemented as soon as this agreement is certified:
a) relief staff will be counted as IFTE for the purposes of classifying the level of the Delivery Manager.
b) a new Grade 4 level for Delivery Centres >75 FTE's

4. Team Leaders / Operations Support Roles

The parties will cooperate on the developmental work associated with clarifying/enhancing the skills/role of Team Leaders and 'note the Australia Post proposal that Operations Support positions be phased out.
It is agreed that at the conclusion of this developmental work, a pilot will be conducted in a facility in each State of structural arrangements involving an enhanced Team Leader role without the Operations Support position. These pilots, including site selections, will be undertaken in accordance with Nationally developed guidelines which will cover areas such as:
* the need to cover a range of facility types/sizes
* impact on Team sizes
* implications for Team Leader/Admin Support roles. Disputes about the pilot process or the direction to be taken after the pilot stage can be referred to the AIRC and the parties will accept arbitration, if required.

The parties have agreed in principle to the reclassification of Team Leaders to the PDC1 level to reflect enhanced role/skills. If a decision is made to retain operational support positions in some facilities, the, Team Leader positions in these facilities will still be reclassified. The timing of implementation of this initiative will depend on:
* finalising the development work on the Team Leader role/skills;
* development of the competency based selection process (refer Section 6);
* completing the selection process;
* the date of competency assessment.

The Parties acknowledge that staffing issues associated with these pilots and subsequent changes need to be handled sensibly and sensitively and will:
* explore options for continuing to make full use of the skills/experience of current staff.
* ensure that any redeployment to Team Leader roles has regard to the particular employee's circumstances.

5. Trainee Delivery Managers

The parties will develop and pilot a Trainee Delivery Manager scheme aimed at producing future Delivery Managers. Staff participating in the scheme will be paid at the PDC2 level.

6. Recruitment / Selection

The parties will cooperate in the development of a competency based recruitment selection process for Delivery based on competencies consistent with the framework covered by Section 2 of this Schedule. The parties agree that priority will be given to this exercise.

* Team Leaders:

The parties accept the principle that reclassified positions should be filled by the most efficient available staff and that the competency based selection approach will underpin the selection process for the new Team Leader level. Detailed arrangements will be subject to further discussions between the parties.

* Other Reclassified Positions:

Other reclassification's resulting from initiatives resulting from this exercise will be dealt with in accordance with Australia Post's policy.

7. Occupational Health and Safety

Australia Post, employees and the CEPU are committed to dramatically improving Health and Safety performance in Delivery. This will include but not be limited to Motorcycle Safety and Manual Handling.

SCHEDULE D PART TIME EMPLOYMENT CHANGES

1. Award Variation - Hours of Duty Changes

Our General Conditions Award will be varied to provide:
* that part-time employees receive a reasonable period of notice for variations of hours of duty with a minimum of 3, months notice retained for reduction in hours;
* that family responsibilities of part-time employees are considered when varying hours of duty; and
* that the conditions provided within the award relate to "days and times" as well as hours of duty for part-time staff.

2. Grievance Procedures

Our Grievance Procedures will be varied so they can be used to deal with complaints regarding the variation of hours for part-time staff. The wording of the procedures will be changed to make clear this right of appeal.

3. Employee Information Brochure

All existing and new part-time employees be provided with an information brochure which outlines:
* some conditions of service information and where to source more complete information;
* reasonable expectations and rights regarding full-time work;
* Australia Post's need for flexibility;
* Australia Post's responsibilities; and
* how to access the grievance procedures. Standard letters of employment provided to people offered part-time employment with Australia Post also contain information regarding the variation of hours and the need to not hold an expectation of full-time employment. The brochure will be provided with the letter of employment to reinforce these points.

4. Managers' Information Brochure

All managers who are responsible for the employment of part-time staff will be provided with an information brochure which outlines:
* the need to discuss any requirements for additional hours with part-time employees as early as possible;
* Australia Post's rights and responsibilities regarding part-time employees;
* the need to ensure that, as far as practicable, variations of hours are made in agreement; and
* the need to ensure part-time employees do not have an unrealistic expectation of gaining full-time employment with Australia Post.

SCHEDULE E EMPLOYEE CONDUCT AND DISCIPLINE

1. Australia Post has the right to dismiss an employee, impose a penalty of a reduction of two (2) increments for a period of 12 months (or equivalent penalty), or to transfer an employee to another position of the same or a lower classification for behaviour or performance which warrants such action, including:
i) misconduct or wilful neglect of duty;
ii) incompetence or inefficiency for reasons within the employee's control;
iii) failure to observe the Code of Conduct.

2. In exercising this right, Australia Post shall not take action which is harsh, unjust & unreasonable.

3. Except where behaviour constitutes serious and wilful misconduct, Australia Post shall ensure that:
i) employees are counselled and/or given a warning in order to assist them to maintain acceptable standards of behaviour and performance;
ii) no employee is dismissed or transferred for a first breach of the Code of Conduct.

4. An employee may be suspended pending a decision as to the action to be taken under clause (1) and such suspension shall be with pay, except where criminal proceedings are pending in which case the suspension may be without pay.

5. Australia Post shall furnish written advice to an employee of a decision under clause (1) and of reasons for the decision together with details of the procedures for lodging an application for review.

6. Where transfer, dismissal or penalty under clause (1) is considered to have been harsh, unjust or unreasonable, the employee concerned may submit an application for review of the decision by a Board of Reference. Any such application must be lodged within 14 days of the transfer, penalty or dismissal, in accordance with procedures established by Australia Post.

BOARD, OF REFERENCE

7. For the purpose of clause (6), the Industrial Registrar of the Australian Industrial Registry shall be requested to appoint a Board of Reference for the duration of the Agreement.

8. A Board of Reference shall be constituted by a Chairperson as may be agreed upon by the, parties or, where the parties are unable to agree, as nominated by the Industrial Registrar.

9. A Board of Reference shall seek to resolve any application for review submitted to it, having regard to whether the decision was harsh, unjust or unreasonable.

10. A Board of Reference, in reviewing a decision in relation to which an application is made:
i) may inform itself in such manner as it thinks fit;
ii) has discretion as to the procedures to be followed;
iii) is not bound by the rules of evidence;
iv) shall- proceed without regard to legal form.

SCHEDULE F FACILITY BONUS

Facility Level Bonus

The bonus is structured in two parts:
* participation in a series of lifestyle activities; and
* improvement in attendance for the facility in the 1999/00 year.

Access to the bonus amount of $500 will require participation in both components.

Lifestyle

The objectives of this part of the bonus are:
* through a series of health promotions/workshops to better educate staff in how to achieve a healthier and more balanced lifestyle; and
* through access to a range of structured team individual activities to provide staff with the opportunity to improve their own well-being as well as measure the improvement.

A more detailed framework will, be developed by a joint working party.
* a range of activities will be available to cater for all fitness levels as well as different interests;
* consideration will be given to activities on an individual, team or family basis; and
* the objective will be individual/team improvement not the achievement of arbitrary or unreasonable standards;
* there will be scope for a high level of staff involvement in the specific details of the scheme within an overall, framework.

Attendance
The more detailed elements will be developed by a joint working group incorporating the following elements:
* development of criteria that deal fairly with special circumstances where an unavoidable absence penalises a facility (for example a small facility with a good overall record);
* ensuring processes that enable appropriate use of work and family options (paragraphs 9.1 to 9.2 refer);
* ensuring that facilities focus in a balanced way on the underlying causes of absenteeism (providing some indication of the processes to be followed and possible areas for examination) rather than focussing on arbitrary target driven approach;
* ensuring the process is reasonable and fair and that there is opportunity for local staff participation within the overall process;
* developing a more detailed framework incorporating the following three categories:

Category 1
* Facility with an existing attendance rate of 97% or more (ie within our long term target). Required to maintain this level in 1999/00;
* Analyse and come up with any possible areas for improvement;
* Have commitment and strategy to sustain or improve in year 2000/0 1.

Category 2
* Facilities with an existing attendance rate between', 94% and up to 97% required to achieve "sustainable" 1% point improvement in 1999/00.
* Undertake local analysis of underlying, factors and develop specific solutions.
* Assess best practice learning actions (from Category 1).
* Have a plan for further improvement in 2000/01.

Category 3
* Current attendance rate less than 94%, improvement of 1.5% points required during 1999/00.
* Other factors as per above categories.