SCA Hygiene Australasia v Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

[2013] FWC 9992

[2013] FWC 9992

FAIR WORK COMMISSION

INTERIM DECISION

Fair Work Act 2009
s.739 - Application to deal with a dispute

SCA Hygiene Australasia
v
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia; "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU)
(C2013/6292)

Construction, Forestry, Mining and Energy Union
(C2013/6293)

SENIOR DEPUTY PRESIDENT WATSON MELBOURNE, 19 DECEMBER 2013

Alleged dispute concerning voluntary redundancies.

[1] SCA Hygiene Australasia Pty Ltd (SCA) has notified two related disputes about an agreement, pursuant to s.739 of the Fair Work Act 2009 (the Act):

● C2013/6292—a dispute with the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the CEPU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) (the AMWU) concerning the SCA Hygiene Australasia (Maintenance Employees) Personal Care, Springvale Site Agreement 2012 1 (the Maintenance Agreement); and

● C2013/6293—a dispute with the Construction, Forestry, Mining and Energy Union (CFMEU) concerning the SCA Hygiene Australasia Pty Limited Springvale Site (Production and Warehouse) Agreement 2012 2(the Production and Warehouse Agreement).

[2] SCA recently undertook a review of its operations at the Springvale Site in light of market conditions. In September 2013, SCA decided to implement changes to the operations structure within Personal Care at the Springvale Site. The changes resulted in a total of 16 positions being made redundant, specifically:

● Under the Production and Warehouse Agreement: 10 in total—five redundancies in Tampons; five redundancies in SAN-1 and two redundancies in Warehouse; and

● Under the Maintenance Agreement—four redundancies in Maintenance.

[3] SCA proposed to give effect to the redundancies through voluntary redundancies. The number of redundancies under the Production and Warehouse Agreement has been reduced to eight employees as a result of one resignation and the death of another employee.

[4] SCA took steps to notify the relevant unions and employees of the changes and the redundancies in compliance with the major change provisions set out in the Agreements.

[5] The dispute has arisen in relation to the application of the redundancy provisions of the Agreements and the basis for calculating the applicable redundancy payments.

[6] In its written submission, 3 SCA identified the questions for determination as:

“(a) does clause 42.1 of the Production and Warehouse Agreement prescribe the severance payments to be made to an employee being made voluntarily redundant by SCA?

(b) does clause 45.8 of the Maintenance Agreement prescribe the severance payments to be made to an employee being made voluntarily redundant by SCA?

(c) if yes to (a) and/or (b) what rate is required to be paid for severance pay under clause 45 of the Maintenance Agreement and clause 42 of the Production and Warehouse Agreement.”

[7] Each of the unions accepted this to be an appropriate description of the questions to be addressed and answered. 4

[8] Mr P Honey, General Manager Operations Personal Care of SCA, gave evidence that the voluntary redundancy process in relation to the production and warehouse employees has been stalled because the CFMEU are refusing to accept that SCA provide redundancy pay estimates to employees until the dispute is finalised and that the “process needs to be concluded prior to Christmas, with redundancies to take effect in mid-January”. 5

[9] In those circumstances, I have decided to announce my decision, in the form of answers to the questions for determination and later publish my reasons for decision.

[10] The questions for determination are answered as follows:

(a) “does clause 42.1 of the Production and Warehouse Agreement prescribe the severance payments to be made to an employee being made voluntarily redundant by SCA?”

Yes, clause 42.1 of the 2012 Production and Warehouse Agreement does prescribe the severance payments to be made to an employee being made voluntarily redundant by SCA.

(b) “does clause 45.8 of the Maintenance Agreement prescribe the severance payments to be made to an employee being made voluntarily redundant by SCA?”

Yes, clause 45.8 of the 2012 Maintenance Agreement, does prescribe the severance payments to be made to an employee being made voluntarily redundant by SCA

(c) “what rate is required to be paid for severance pay under clause 45 of the Maintenance Agreement and clause 42 of the Production and Warehouse Agreement”?

The rate that is required to be paid for severance pay under clause 45 of the Maintenance Agreement and clause 42 of the Production and Warehouse Agreement is four weeks’ pay (calculated as an aggregate of ordinary time earnings, continuous operating penalties, 25% overaward payment and shift penalties) for each year calculated on the basis of 46 hours per week for each full year of service, and pro rata for part years.

[11] I will publish my reasons for decision as early as possible in 2014.

SENIOR DEPUTY PRESIDENT

Appearances:

S Pill for SCA Hygiene Australasia.

R Reid for the Construction, Forestry, Mining and Energy Union.

B Terzic for the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU).

K Reidy for the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

Hearing details:

2013.

Melbourne:

December 10 and 11.

 1   AE402493 PR539120.

 2   AE402223 PR538630.

 3   Exhibit SCA 1, at para 2.1.

 4   Transcript at paras 15–16.

 5   Exhibit SCA 3, at paras 37–38.

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