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OPTUS EMPLOYMENT PARTNERSHIP AGREEMENT (2003)

7.0 CLASSIFICATIONS, MINIMUM RATES AND REMUNERATION

7.1 Introduction

Optus and its employees agree that the unique challenges presented in maintaining a world leader operation requires:

(a) the maintenance of Optus Minimum rates and total remuneration which recognise and reward excellence in leader-ship, productivity, team work and customer satisfaction;

(b) the identification of appropriate core skills coveting engineering technical, customer service, cable television and other support functions;

(c) the development and implementation of working patterns that maximise customer satisfaction through effective work practices and the implementation of new technology,

(d) a commitment by Optus to provide employees with appropriate facilities and time to acquire nominated levels of skills/technological competence; and

(e) the application of personal development processes and structures that reflect the combined needs/skills of management and employees.

To give effect to these principles Optus and its employees agree that the following will apply.

7.2 job Classifications/Minimum Rates

(a) The jobs performed by Optus employees will be assigned to an appropriate grade level within the classifications of:
(i) Engineering and Technical Services/Television Operations Employee;
(ii) Customer Service/Television Programming and Production/General Support Employee; or
(iii) Commission Based Sales Employee.

(b) Based on a clearly identified position within the classification structure and on the full utilisation of nominated competencies, the minimum rate for the position in each classification grading is set down in Appendix A (i), A(ii) and A(iii). The determination of actual salaries total remuneration and, for commission based sales employees, On Target Earnings (OTE), will be solely at the discretion of Optus management.

(c) Optus will allocate new positions to the appropriate grade taking into account factor's such as market data, relativities and the positions' specific accountabilities, skill requirements and job size relative to the benchmark positions contained in Appendix A (i), A(ii) and A(iii).

(d) Where major and demonstrable changes in accountabilities occur due to job function redesign, Optus may change the job grade to align it with a more appropriate benchmark position and where this occurs such change shall be deemed part of this Agreement.

(e) In the unlikely event that such changes result in a reduced classification, no employee will suffer a reduction in their remuneration.

(f) By reason of the Optus classification structure and the total remuneration provided by Optus, no higher duties payment will apply where employees work temporary beyond their grade.

(g) An employee and Optus may agree that the employee's total entitlements shall be provided by way of salary and other employment benefits offered by Optus. In each such case the amount of the salary and the value of the other employment benefits as determined by Optus shall be combined to assess Optus compliance with the minimum rates provisions and other provisions of this Agreement.

(h) Optus agrees that the minimum rate for each classification will be increased at 1 July 2004, 1 July 2005 and 1 July 2006 on the basis, as at April each year, of the most recent Department of Treasury forecast and/or indicated movement in the Headline Consumer Price Index for 2004/2005, 2005/2006 and 2006/2007 respectively and each such change shall be deemed to be part of this Agreement.

The Headline Consumer Price Index movement will, for each year, be derived from the Department of Treasury's projected year on year index figure.

In the event that in any year, the Department of Treasury projectionis at variance with the actual Headline Consumer Price Index movement by more than 0.5%, the adjustment for the following year will take such variance into account.

7.3 Optus Remuneration Management

(a) Whilst recognising that this Agreement reflects minimum entitlements only, Optus is committed to the retention of performance based remuneration schemes for full and part time employees.

Optus schemes will continue to be designed to further enhance Optus' focus on individual and group productivity, team work and customer service and its employees' commitment to this focus. Consistent with current practice, and as is necessary to ensure their, effective implementation, such schemes will continue to be developed and implemented as determined solely by Optus management. Application of the schemes, including the relevant performance requirements, will be discussed with Optus employees.

Optus Human Resources and management will ensure that these schemes are implemented both fairly and equitably.

(b) As part of the implementation of these schemes Optus commits to:
(i) Continue to maintain Optus remuneration ranges with a range span of at least 35% over the minimum rates specified in the Agreement. The Optus remuneration ranges will be realigned each year taking the minimum rate adjustments into account.
(ii) Maintain an incentive potential of up to 20% of remuneration for employees covered by the Optus General Incentive Plan. Optus will budget a minimum of 10% per annum, to meet the anticipated cost of the average incentive payment.
(iii) Continue to budget a minimum of 2% of Optus employee remuneration costs specifically to cover annual performance based remuneration assessments. This budget is over and above that allocated to cover the minimum rate adjustments in Clause 7.2(h).
(iv) Continue to review the adequacy of remuneration for eligible employees in Optus identified fast skills development positions' on a 6 monthly basis.

(c) In implementing the Optus remuneration schemes, Optus management shall determine incentive payments and the actual remuneration of each employee according to its own performance assessment/progression criteria. These criteria will include areas such as full competency utilisation, performance effectiveness, overall contribution to the implementation of Optus values and the achievement of Optus business objectives, as appropriate.

(d) Optus; employees, including new employees will be positioned, at an appropriate level within the span of the relevant Optus remuneration range structure depending solely on management's' assessment of their market based skills, expertise and anticipated work contribution. The monetary value at such level shall be the employee's remuneration for the purpose of this Agreement.

Employees will be encouraged to develop and utilise appropriate skills to enable them to be deployed by Optus in a highly flexible manner.

7.4 Employee Share Ownership

During the term. of this Agreement, and as part of its ongoing commitment to performance based remuneration and reward, Optus may, at its absolute discretion and on terms determined by it, make opportunities available to full time and part time employees to facilitate their share ownership in SingTel Limited.

7.5 Annual Leave Loading

Employee remuneration under this Agreement incorporates an amount in lieu of any annual leave loading component.

7.6 Youth Rates

  Age                     % of Adult Minimum Rate 
  Seventeen or under      60% 
  Eighteen                70% 
  Nineteen                80% 
  Twenty                  90% 
7.7 Payments

(a) Salaries will be paid by Optus fortnightly (except where employees agree to monthly pay) and be paid into one or two bank accounts, or more where Optus agrees, nominated by the employee. Employees engaged in a partially exempt classification in accordance with Clause 6.15 shall be paid monthly.

(b) All employees shall be entitled to claim reimbursement of all reasonable work related expenses as specified in the Optus policies.

7.8 Superannuation

The parties acknowledge the existence of a superannuation fund (the Optus Superannuation Plan) which complies with the Superannuation Guarantee legislation, the Occupational Superannuation Standards Act 1987 and the Superannuation Industry Supervision legislation.

Superannuation contributions required to be made by Optus in respect of its employees, other than casual employees, pursuant to any legislative requirement or contract of employment shall be to the Optus Superannuation Plan.

A separate superannuation fund nominated by Optus will operate to receive any employer contributions required to be made by Optus in respect of a casual employee.

8.0 LEAVE PROVISIONS

8.1 Annual Leave

Full time employees will be entitled to 4 weeks (20 working days) annual leave upon each completed year of service. Part time and block time employees will be entitled to pro rata leave; the pro rata entitlement for part time employees shall be determined by reference to hours ordinarily worked. (In addition refer to Clause 6.9(f) for 7 day shift workers).

Optus will permit employees reasonable flexibility in raising annual leave with such leave to be taken in accordance with Optus policies, or, as otherwise agreed between Optus and the employee.

Optus annual leave policies will provide an annual opportunity by which each full time and part time employee, after he or she has completed 12 month's continuous service, may, if he or she wishes, choose to purchase one additional week of annual leave, or be paid in lieu of one week of annual leave entitlement, in each year of employment. The terms and application of such policies, shall at all times be at the sole discretion of Optus.

8.2 Sick Leave

Sick leave will not be bound by prescription, however employees applying for sick leave shall have regard for the trust and responsibility given to them by Optus.

Optus will ensure that reasonable paid sick leave is available to any Optus employee unable to attend and fulfil nominated work requirements as a result of legitimate illness or injury.

Optus will approve for payment, reasonable and legitimate requests for sick leave, but reserves the right to

  • require medical certificates in instances of frequent short duration and longer term absences;
  • to refer an employee for an independent medical opinion at Optus' expense; and
  • to limit the duration of paid sick leave where the leave is assessed as unreasonable after considering all aspects of the employee's employment, including in the case of block time employees, the duration of their block time contract.

    8.3 Parental Leave

    Employees shall be entitled to parental leave (maternity, paternity and adoption) in accordance with Optus policies which will always be maintained to provide, as a minimum, the standards included in federal legislation as varied from time to time.

    Optus commits to provide a return to work entitlement to the position which the employee held immediately before proceeding on parental leave, or to a position comparable in status and not less Mi salary and in the same location as the position occupied immediately before proceeding on parental leave.

    Optus parental leave benefits include:

    (a) Parental Leave - maternity leave, adoption leave and leave to the primary cam giver provision of an eight week remuneration based payment to the following employees:
    (i) maternity leave employees; and
    (ii) paternity leave or adoption leave employees who take at least eight weeks paternity or adoption leave for the purpose of being the primary care giver to a child, or adopted child of the employee.

    To be eligible for this parental leave payment, an employee must have declared their intention to return to work and be deemed by Optus to be a fully competent employee at the time of payment. This payment will be reduced by any amount paid by Optus to the employee as paid parental leave as a non primary care giver.

    Half of the parental leave payment is payable at the commencement of the leave. The other half is payable following the employee's return to work. An employee may elect to take the payment in one of the following ways as best suits the employees personal circumstances:

    1) as a single payment of half the entitlement on departure on the parental leave and the balance following return to work; or

    2) payment of either the first half, or second half of the entitlement by two or four equal payments over the relevant successive pay periods and the other half as a single payment; or

    3) payment of both the first and second half of the entitlement by two or four equal payments over the relevant successive pay periods.

    (b) Parental Leave - Non Primary Care Giver - provision of 10 days paid parental leave to an employee:
    (i) whose spouse (including de facto and same sex partner) has given birth to a child,- or
    (ii) who has adopted a child or whose spouse (including de facto spouse and same sex partner) has adopted a child.

    (c) Additional Benefits

  • Payment of pro rata incentive awards irrespective of the employee's subsequent return to work
  • The provision of child care advisory services prior to the employee's return to work
  • Access to the Employee Assistance Program whilst on parental leave.
  • The continuation of the standard level of life and total and permanent disability insurance cover of the Optus Superannuation Plan.
  • The inclusion of the period of parental leave for the purposes of Superannuation Plan vesting.

    8.4 Jury Leave

    Employees summoned to attend jury service will continue to receive their -salary for the duration of their attendance.

    8.5 Bereavement Leave

    Bereavement leave will not be bound by prescription, however, employees applying for bereavement leave shall have regard for the trust and responsibility given to them by Optus.

    Optus will approve all reasonable requests for paid bereavement leave of up to 5 days on the occasion of the death of any member of the employee's immediate family. Paid leave beyond 5 days may be approved on a case by case basis subject to Optus policy. Applications for extended unpaid bereavement leave may also be considered.

    For the purposes of this sub-clause, (`Bereavement Leave'), immediate family shall include;

    (a) a spouse (including a former spouse, a de facto spouse and a former de facto spouse) of the employee. A de facto spouse means a person of the opposite, or same sex, who fives with the employee as husband, wife, or same sex partner, on a bona fide domestic basis although not legally married to the employee; and

    (b) a child, adult child (including an adopted child, a stepchild, a foster child or an ex-nuptial cud), parent ('including foster parent and step parent), parent-in-law, grandparent, grandchild, sibling of the employee or of the spouse of the employee.

    8.6 Public Holidays

    Employees are entitled to all relevant gazetted public holidays in their state of employment.

    In the event that any national public holiday is gazetted on different days in different states or territories, however, Optus may adopt the day which the majority of States gazette as the public holiday and treat that day only as the public holiday for all purposes.

    8.7 Long Service Leave

    Long service leave entitlements shall be in accordance with the Long Service Leave Act 1955 (NSW), provided that other comparable state or territory legislation shall apply in the state or territory concerned to the extent it is more beneficial.

    Optus will permit employees reasonable flexibility in taking- long service leave with such leave to be taken in accordance with Optus policies, or, as otherwise agreed between Optus and the employee.

    The Optus long service leave policy will provide an option for an employee to make an application to take a- maximum of 1.5 months of their long service leave entitlement at half their ordinary remuneration over double the period of leave taken - for example, by taking 1.5 months of their long service leave at half their ordinary remuneration, an employee may be on long service leave for 3 months. The option to take long service leave paid at half an employee's ordinary remuneration may be used in conjunction with, or separately from, any additional period of approved long service leave.

    All applications to take long service leave over an extended period on half of ordinary remuneration will be considered by Optus and approval will be subject to a number of factors, including the operational requirements of Optus.

    The terms and conditions of the Optus Long Service Leave policy shall at all times be at the sole discretion of Optus.

    8.8 Family Leave

    Optus will reasonably consider any application for family leave to enable employees to provide short term assistance to ill member's of their immediate family. Where such leave is approved it may be granted as either paid or unpaid. Optus policies will always be maintained to provide, as a minimum the national standards determined from time to time by the Australian Industrial Relations Commission.

    For the purposes of this sub-clause, (Family Leave , (`immediate family' shall include:

    (a) a spouse (including a former spouse, a de facto spouse and a former de facto spouse) of the employee. A de facto spouse means a person of the opposite, or same sex, who lives with the employee as husband, wife, or same sex partner, on a bona fide domestic basis although not legally married to the employee; and

    (b) a child, adult child ('including an adopted child, a stepchild, a foster child or an ex-nuptial cud), parent (including foster parent and step parent), parent-Mi-law, grandparent, grandchild, sibling of the employee or of the spouse of the employee.

    8.9 Emergency Services Leave

    An employee, who is a member of a recognised voluntary emergency services Organisation and who is required, by that Organisation, to attend a significant community emergency, is entitled to emergency services leave.

    It is the responsibility of the employee to inform Optus of any such required attendance, including its timing and duration, and to provide Optus with evidence of the required attendance.

    An employee complying with the above conditions shall receive payment of their ordinary pay for a period of up to 3 days in a twelve month period. Optus may, however, approve a longer period of paid leave, and/or a combination of paid and unpaid. leave, subject to the circumstances of the particular significant community emergency.

    8.10 Other Leave

    Optus will consider requests for leave for other purposes. Such requests will be considered on their merit and within the context of Optus' operational requirements and where allowed, be at." the sole discretion of Optus and not otherwise. Where such leave is approved it maybe granted as either paid or unpaid, provided that all Career Break leave approved in accordance with Optus" policy shall be unpaid leave.

    8.11 Paid Leave Defined

    For the purposes of this clause, 'Leave Provisions', payment for 'paid leave' shall be at the ordinary hour's rate of remuneration unless specifically provided otherwise by an Optus policy.

    8.12 Effect of Unpaid Leave

    Any period of approved unpaid leave which extends for more than 5 consecutive working days shall not count as service for any purpose under this Agreement or relevant legislation, but shall not break continuity of employment.

    9.0 ISSUE PREVENTION AND RESOLUTION

    9.1 Introduction

    Optus and its employees agree to facilitate the constructive and speedy resolution of any issue of concern at the workplace and recognise that this commitment is critical to maintaining harmonious employee relations and to ensuring that customers are guaranteed continual access to Optus' network AU issues of concern should, in the first instance, be processed within the Optus employee relations environment. The Issue Prevention and Resolution' process contained in Appendix B is to be used for preventing and settling disputes arising under this Agreement.

    9.2 Customer Supply Continuity

    Employees and Optus agree that the operation of Optus' network and facilities and customer service functions will not be disrupted by any disputation between Optus and any or all of its employees while any issue in dispute is being processed through the Issue Prevention and Resolution' process (Appendix B).

    10.0 TRAINING

    The development of a world leader operation and a best practice workforce is critically dependent on Optus' provision of ongoing, relevant. and tailored training programs. All such management approved training will be directed towards facilitating the required implementation of leading edge technology by the development of a highly skilled workforce which is receptive to technological and operational change. Such training will also be designed to enhance an employee's personal growth opportunities within Optus through the development of relevant competencies consistent with company needs.

    On the basis of the limited period of time that they are employed in the field, Cadet Trainees shall be excluded from performance ' based. remuneration schemes unless otherwise determined by Optus. 'Where such Cadets spend less than 50% of their ordinary hours in the field in any training year, they shall be entitled to receive a minimum of 90% of the relevant youth or adult minimum rate as appropriate-

    11.0 WORKING ENVIRONMENT

    Optus is committed to providing a working environment for its employees which is free of harassment and unlawful discrimination, which promotes equal opportunity and which is smoke free, and to ensuring that the working environment is both safe and healthy and in accordance with relevant legislation.

    12.0 WORKERS' COMPENSATION

    Any Optus employee who, as a result of an injury suffered in the course of his or her employment with Optus, receives payments under workers' compensation legislation, shall be paid by Optus the difference between the payments received under the workers' compensation legislation and the salary which would otherwise be paid to the employee up to a maximum of 52 weeks. Full participation in any approved return to work program will be a prerequisite to the payment of this make up payment.

    13.0 FURTHER AGREEMENT

    Optus and its employees agree that approximately 3 months before the end of the fife of this Agreement, that Optus will communicate with the employees then covered by the Agreement with a view to reaching a further Certified Agreement made between them to replace this Agreement.

    14.0 AUSTRALIAN WORKPLACE AGREEMENTS

    Nothing in this Agreement shall operate to prevent Optus and any of its employees, or groups of employees, from entering into an Australian Workplace Agreement concluded and approved M' accordance with the provisions of the Workplace Relations Act 1996. It is acknowledged by this Agreement that all Australian Workplace Agreements made subsequent to the certification of this Agreement shall be allowed to operate to its exclusion or to prevail over it to the extent of any inconsistency. (As contemplated by S170 VQ (6)(iii) of the Workplace Relations Act 1996).

    EXECUTED

    THE COMMON SEAL OF OPTUS ADMINISTRATION PTY LIMITED
    was affixed to this document PTY. LTD. in the presence of:
    Director/Secretary Director
    Name Name



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