PR913268

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AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

Workplace Relations Act 1996

s.99 notification of industrial dispute

CPSU, the Community and Public Sector Union

(C2001/4827)

The Association of Professional Engineers, Scientists and Managers, Australia

(C2001/4957)

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

(C2001/4801)

and

Telstra Corporation Limited

Various employees

Telecommunications services

   

COMMISSIONER SMITH

MELBOURNE, 16 JANUARY 2002

Remote localities allowance.

DECISION

[1] These matters have been the subject of conciliation proceedings in the Commission on 22 November 2001; 13 and 18 December 2001. Prior to the proceedings today the parties had reached agreement on most items. As a result of matters raised today during proceedings and my recommendations an award will now be issued. One matter required arbitration. That matter related to the scope clause.

[2] Whilst the matters between the parties have been difficult, a constructive approach has been adopted.

[3] The special arrangements applying to Telstra Corporation Limited (Telstra) employee's recruited to work in remote regions in Australia have a long and detailed history.

[4] Telstra now wish to remove remote localities arrangements from Darwin, Townsville and Cairns which it believes are no longer "remote". The CPSU, the Community and Public Sector Union (CPSU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the Association of Professional Engineers, Scientists and Managers, Australia (APESMA) have opposed the removal.

[5] Having considered the views expressed by the parties in support of their respective positions, I am of the view that Telstra is entitled to remove the remote locations allowance in Darwin, Cairns and Townsville, but employees in these three areas should be given a choice as to the handling of their remote localities arrangements to minimise any negative impact on the Telstra employees involved by the removal of such arrangements.

[6] Telstra employees in Darwin, Townsville and Cairns, shall be provided with three options -- a buyout option, a grandfathering option and a return to home-base option. Employees shall be required to select only one option.

[7] Under the buyout option, Telstra employees in these three cities will receive a lump sum payout equivalent to three years remote localities benefits, based on their current 2001 benefit payments. This option will ensure the employees receive the buyout irrespective of what the future may hold for their employment.

[8] As staff receive different remote localities benefits, a lump sum will be comprised of different components for each staff member. These components may include some, or all of the following: district allowance; additional leave; additional leave bonus; electricity subsidy; water subsidy and airfares. Some other minor terms will apply to this option.

[9] The grandfathering option will enable those Telstra employees to elect to remain in receipt of the current district allowance for a period of ten years from their acceptance of this option, but the allowance will not be indexed or increased further.

[10] However, all other remote localities benefits such as additional leave, additional leave bonus, electricity subsidy, water subsidy and airfares will cease under this option from 30 January 2002. Once again, some further terms will also apply to this option.

[11] The return to home-base option will enable employees to elect to return to the location from which they were recruited. Management will arrange for this to occur, consistent with business requirements. The current remote localities benefits will continue until such time as the return has been completed. Management will expedite these arrangements so that staff are not unduly held in the current location.

[12] The full terms relating to each option shall be presented to employees in a written letter from Telstra no later than 20 January 2002, and in the form contained in Annexure 1 to this decision.

[13] There was one aspect of the award which required arbitration. That aspect related to the form of the scope clause. Both parties agreed that the award would apply both to existing employees and any new employees who will be working in a remote locality as currently determined. There is no difference in intent and outcome just a difference in how to express that intent and outcome in the award.

[14] In my view the award I will make does cover persons who will be employed in a remote locality. The scope of the award combined with its terms should be clear. Should an issue arise which calls this intent into question then an application can be made and the award varied, even retrospectively, to ensure the intent and outcome is achieved.

[15] I now make a new minimum rates award known as the Telstra (Remote Localities) Award 2002. I am satisfied that the award complies with the first award principles. The award is made against the background of the submissions and materials tendered during proceedings conducted on 15 January 2002.

BY THE COMMISSION:

COMMISSIONER

Appearances:

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

A Waters for the CPSU, the Community and Public Sector Union.

M Harding for The Association of Professional Engineers, Scientists and Managers, Australia.

S O'Keeffe on behalf of Telstra Corporation Limited.

Hearing details:

2002.

Melbourne:

January, 15.

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