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 leadership, productivity, teamwork and customer satisfaction;

b. the identification of appropriate core skills covering 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 shall 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 of 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 staff, On Target Earnings will be solely at the discretion of Optus management.

c. Optus will allocate new positions to the appropriate grade taking into account factors 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 temporarily beyond their grade.

g. An employee and Optus may agree that the employees 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 e combined to assess Optus compliance with the minimum rates provisions and other provisions of this Agreement.

Optus agrees that the minimum rate for each classification will be increased by 1 July 1998, 1 July 1999 and 1 July 2000 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 1998/1999, 1999/2000 and 2000/2001 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 Treasurys projected year on year index figure.

In the event that in any year, the Department of Treasury projection is 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, teamwork 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:

* continue to maintain Optus remuneration ranges with a range span of at least 30% over the minimum rates specified in the Agreement. The Optus remuneration ranges will be realigned each year taking the minimum rate adjustments into account.

* 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.

* 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 any budget allocated to cover basic economic movement considerations.

* 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 managements assessment of their market based skills, expertise and anticipated work contribution. The monetary value at such level shall be the employees 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 Annual Leave Loading

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

7.5 Youth Rates

Age % of Adult Minimum Rate

Seventeen or under 60%

Eighteen 70%

Nineteen 80%

Twenty 90%

7.6 Payments

a. Salaries will be paid by Optus fortnightly (except where employees agree to monthly pay) into a bank account 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.

7.7 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).

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.

The provision of sick leave will be based on ensuring that adequate paid leave coverage is available to any Optus employee reasonably unable to attend and fulfill nominated work requirements as a result of illness.

Optus will approve for payment, reasonable and legitimate requests for sick leave. Optus reserves the rights to require medical certificates in instances of frequent short duration and longer term absences, to refer any 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 employees 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 toa position comparable in status and not less in salary and in the same location as the position occupied immediately before proceeding on parental leave.

Optus parental leave benefits include:

* Provision of 3 days paid paternity leave to male employees following the birth of a child, or the adoption of a child by, the employee

* Payment of pro rata incentive awards irrespective of the employees subsequent return to work.

* The provision of child care advisory services prior to the employees 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.

In addition, where maternity leave employees have declared their intention to return to work, a six week remuneration based payment will be made, half paid at the start of the maternity leave and half paid following the employees return to work. Provided that to be eligible for these payments the employee must be deemed by Optus to be a fully competent employee at the time of payment.

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 3 days on the occasion of the death of any member of the employees immediate family. Paid leave beyond 3 days may be approved on a case by case basis subject to Optus policy. Applications for extended unpaid bereavement leave may also be considered.

8.6 Public Holidays

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

In the event that any national 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 NSW long service leave legislation existing from time to time, provided that other State or Territory legislation shall apply in the State or Territory concerned to the extent it is more beneficial.

8.8 Family Leave

Optus will reasonably consider any application for family leave to enable employees to provide short term assistance to ill members 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.

8.9 Other Leave

Optus will consider requests for leave for the 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 may be granted as either paid or unpaid.

8.10 Paid Leave Defined

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

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. All 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).