Volgren Australia Pty Ltd

Case •

[2013] FWCA 8587

•

15 NOVEMBER 2013

No judgment structure available for this case.

[2013] FWCA 8587

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009
s.210—Enterprise agreement

Volgren Australia Pty Ltd
(AG2013/7081)

VOLGREN AUSTRALIA PTY LTD MALAGA ENTERPRISE AGREEMENT 2012

Vehicle industry

DEPUTY PRESIDENT MCCARTHY

PERTH, 15 NOVEMBER 2013

Application for variation of the Volgren Australia Pty Ltd Malaga Enterprise Agreement 2012.

[1] An application has been made by Volgren Australia Pty Ltd (the Applicant) for variation of the Volgren Australia Pty Ltd Malaga Enterprise Agreement 2012 (the Agreement). The variation is approved as follows:

A. By amending Clause 7.1 of the Agreement to read as follows:

    “7.1 EMPLOYEE ENGAGEMENT

    It is understood and accepted that competition in the Australian bus market has increased significantly and is expected to continue to increase due to rising volumes of cheap imports and the strengthening of local competitors through international acquisitions.

    To survive as a local bus manufacturer Volgren must continue to improve its competitiveness through both product improvements and cost reductions. Volgren is committed to investing in programs to improve its competitiveness. In turn, we (the parties to this Agreement) confirm that we are committed to supporting these initiatives:

    ● We will participate in and contribute to improvement teams as and when they are formed.
    ● We will put forward ideas to improve productive efficiency, and assist with the trial of these ideas and provision of feedback.
    ● Through consultation we will agree on an employee engagement measure, we will participate in regular surveys to measure employee engagement and we will work on ideas to improve employee engagement.
    ● Together we will take the necessary steps to:
    ● Improve safety as measured by reducing the number of LTIs per million hours worked.
    ● Improve quality as measured by reducing the number of faults at customer inspection.
    ● Improve on time delivery as measured by reducing WIP days late.
    ● Improve costs as measured by reducing hours per bus.

    Depending upon the achievement of improvement in the KPI’s specified above, and as per the requirements of sub clauses, incentive payments of up to 0.5% of an employee’s annual wage will be paid by the 31st July 2014, and a possible further 0.5% will be paid by the 31st July 2015. These incentive payments are based on the achievement of company specified results measured at the 30th of June of 2014 and 2015 respectively

    To be eligible for these incentive payments employees must be employed by Volgren for the full 12 months prior to 30th June of the year of assessment.

    Incentive payments will be calculated on base gross wage excluding over time and allowances.

    By the 31st of July 2014, a maximum incentive payment of 0.5% is to be paid if at 30th June 2014 the Employee Engagement measures are in place and an improvement has been achieved since 31st Dec 2012 in the following:

    ● Safety (LTIs/MHRS), the 6 month average number of lost time injuries per million hours worked has reduced.
    ● Quality (Faults/bus), the full years average number of faults per bus found at customer inspection has reduced.
    ● Delivery (WIP Days late) the total number of current WIP days late has improved.
    ● Cost (Hrs/bus), the total average actual build hours for the year has reduced whilst maintaining utilisation.

    Each of the above four measures is worth 0.125% of the 0.5% bonus. All 4 measures must be achieved for 0.5% incentive payment to be available.

    Safety (LTIs).

    ● (MHRS) The 6 month average number of lost time injuries per million hours worked has reduced.
    ● Quality (Faults/bus), The full years average number of faults per bus found at customer inspection has reduced.
    ● Delivery (WIP Days late), the total number of current WIP days late has improved.
    ● Cost (hrs/bus), the total average actual build hours for the year has reduced whilst maintaining utilisation.

    Each of the above four measures is worth 0.125% of the 0.5% bonus therefore if 3 measures are achieved total incentive payment will be 0.375%. All 4 measures must be achieved for 0.5% incentive payment to be available.”

B. By amending Clause 10 of the Agreement to read as follows:

    “10. WAGE INCREASES

    10.1 As the parties are fully committed to implementing the terms of this Agreement the following wage increase will take effect from the first full pay period to commence on or after the following dates specified in sub-clause 10.2;

    10.2 The following increases to existing rates of pay will apply. The rates are specified in Schedule A of this Agreement.

    Operative Dates –

    from the first pay period to commence on or after -

    Wage Increases

    On Acceptance 2012

    4 per cent

    1 July 2013

    3.5 per cent

    1 July 2014

    3.5 per cent

    10.3 The increases specified in 10.2 will also apply to the allowances provided for in clause 14 of this Agreement.

    10.4 All current employees will be regarded as belonging to the classification appropriate to their current rate of pay. New employees will be paid the rate appropriate to their classification.”

C. By amending Appendix A of the Agreement to read as follows:

    Appendix A

    Summary of wages and classifications

    2012/13

    2013/14

    2014/15

    Increases

    4%

    3.5%

    3.5%

    Our title

    Award

    Award rate

    Previous

    2012/13

    2013/14

    2014/15

    Team Leader

    --

    $31.1894

    $32.4370

    $33.5722

    $34.7472

    Tradesman

    V5

    $18.06

    $29.6031

    $30.7872

    $31.8648

    $32.9800

    Probationary tradesman

    V5 probation

    $26.6426

    $27.7083

    $28.6781

    $29.6818

    Skilled Trades Assistant

    V4

    $17.14

    $26.6426

    $27.7083

    $28.6781

    $29.6818

    Skilled Trades Assistant Probationary

    V4 probation

    $23.1143

    $24.0389

    $24.8802

    $25.7510

    Semi Skilled

    V3

    $16.57

    $23.1143

    $24.0389

    $24.8802

    $25.7510

    Semi Skilled Probationary

    V3prodbation

    $20.7221

    $21.5510

    $22.3052

    $23.0858

    Process Operator

    V2

    $15.96

    $20.7221

    $21.5510

    $22.3052

    $23.0858

    In training

    V1

    $15.51

    $17.7618

    $18.4723

    $19.1188

    $19.7879

D. By amending Appendix B of the Agreement to read as follows:

    Appendix B

    Allowances

    2011/12

    2012/13

    2013/14

    2014/15

    Increases

    4%

    3.5%

    3.5%

    First Aid Allowance / week

    $ 19.05

    $ 19.81

    $ 20.50

    $ 21.21

    Tool Allowance / week

    $ 14.96

    $ 15.56

    $ 16.10

    $ 16.66

    Meal Allowance

    $ 12.03

    $ 12.51

    $ 12.94

    $ 13.39

    Laundry Allowance / week

    $ 3.50

    $ 3.64

    $ 3.76

    $ 3.89

    Boot Allowance / year

    $ 120.00

    $ 124.80

    $ 129.16

    $ 133.68

    V5 Natural work group leader

    = (Team Leader rate - V5 rate) X 38 hours

    V4 Natural work group leader

    = (Team Leader rate - V4 rate) X 38 hours

[2] The variation is approved and will come into force on 15 November 2013.

[3] A consolidated copy of the Agreement is attached to this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code G, AE898783  PR544028>

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