Don North Altona New Agreement - October 2008

October 2008

DON SMALLGOODS 
NEW AGREEMENT

The following Log of Claims was put to Don’s Management:

1. Wage increase 5% per annum

2. Redundancy:

(a) 4 weeks per year of service with no cap.
(b) redundancy to be paid at the all purpose rate of pay including any penalties for afternoon or night shift.
(c) all time served as a casual at Don prior to being made permanent to be included in years of service for the purpose of calculating redundancy.
(d) redundancies to be offered on a voluntary basis prior to any compulsory redundancy.
(e) Long Service Leave to be paid after 1 year’s service.
(f) voluntary redundancies to be allowed from 1st November 2008.

3. The Agreement to be a variation of the existing Pre Reform Certified Agreement.

The latest Management response is as follows.  Management says that this will not change.

Offer
5% increase on first pay period on or after the 1/12/08,
4.5% in year 2 and a further 4.5% in year 3.

4 weeks redundancy capped at 52 weeks
Managed Voluntary Redundancy as per attached model
 
Pre Reform Certified Agreement

Plus an additional Loyalty Payment

$600.00 per year of completed year of service and pro rata for incomplete years greater than 13 years.

e.g.    For 30 years service
         13 years = 52 weeks.
         13 years to 30 years=17 years @ $600.00=$10200.00
 
The Company says No to the following claims

(a) 4 weeks per year of service with no cap.
(b) Redundancy to be paid at the all purpose rate of pay including any penalties for afternoon or night shift.
(c) All time served as a casual at Don prior to being made permanent to be included in years of service for the purpose of calculating redundancy.
(d) Redundancies to be offered on a voluntary basis prior to any compulsory redundancy.
(e) Long Service Leave to be paid after 1 year’s service.
(f) Voluntary redundancies to be allowed from 1st November 2008.

The Company requires the following change to the Redundancy clause

Clause 3 Redundancy

3.1 Notice Period
In the event that circumstances require employees to be made redundant for any reason whatsoever, the Company shall provide notice of its intention at the earliest possible time.

Such notice shall be provided to both the officials of the Union and site employees.

Notwithstanding the above, the Company is required to provide notice to individual employees who will be specifically affected by redundancy, in the following manner:
a) As per notice period clause 2.8 or
b) Payment in lieu of notice

Employees given notice must work the full period of notice given. Failure to work the full period of notice without agreement will result in forfeiture of redundancy entitlements.

During the notice period, employees will be given reasonable paid time off to attend job interviews, upon the approval of the Production Manager. Reasonable proof ,such as providing the time of the interview and name of Company where the interview is taking place may be  required.

All payments in lieu of notice will be paid at ordinary pay rates as defined in clause 17.

Controlled Voluntary Redundancy
Implementation Steps of Plan

Step 1. Declare the area where the redundancies are to occur and the number of people affected.

Step 2. The Company will call for voluntary redundancies across site.

Step 3. The Company will determine from those who volunteer for redundancy which employees it wishes to keep on the basis of skills and operational requirements.

Step 4. Preference for voluntary redundancy will be given to those employees who volunteer from the nominated areas up to but no greater than the required number in the nominated area.

Step 5. Those employees from the area nominated for redundancies who do not volunteer for redundancy will be redeployed to an alternative position while their position will be made available on a redundancy basis to another area selected by the Company.     

Step 6. This process will continue to be repeated until there are no longer any volunteers for redundancy.

Step 7. Casuals will not be replacing the positions that have been made redundant.