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TO ALL PSA SSO, AEW, ECW MEMBERS
ENTERPRISE BARGAINING
ORDERS OF THE INDUSTRIAL COMMISSION


Following on from the PSA brief dated 20th November, 2008, please find below the Statement and Orders from the Industrial Commission. These Orders are still in place from this morning.


SOUTH AUSTRALIA C.C. 14/2008

INDUSTRIAL RELATIONS COMMISSION

File No. 3670 of 2008


IN THE MATTER the South Australian Education Staff (Government Schools, Preschools and TAFE) Enterprise Agreement 2006


                                                and 

IN THE MATTER of a dispute between the Department of Premier and Cabinet and the Australian Education Union and the Public Service Association

  •                                         and 

IN THE MATTER of a Compulsory Conference convened pursuant to s.202(1) of the Fair Work Act 1994

BEFORE COMMISSIONER MJ DOYLE

ADELAIDE, 21st DAY OF NOVEMBER 2008
STATEMENT AND ORDERS

This matter was referred back to me by the President following a lengthy period of mediation before the President during September and October. The situation as presented to me when this matter was listed for a voluntary conference on 27 October 2008 was that the parties had reached an impasse in their negotiations and industrial action had been foreshadowed by the AEU on Thursday 30 October 2008.


On that occasion the Commission issued recommendations to the Government urging them to give serious consideration to improving its earlier monetary offer to the Unions. It is a matter for the public record that the Government made an improved offer on 29 October 2008, which was rejected by the Union and as a consequence the proposed industrial action proceeded.

A further improved offer was made by the Government on 10 November 2008 which was also rejected by the Union. It is noted that during this period the AEU amended its own demands on the Government, by reducing their overall claim.


In rejecting the Government’s most recent improved offer on 10 November 2008, the AEU in correspondence to the Government stated that:

In essence, the Government’s revised offer is rejected on the basis that there remains substantial dispute over key elements. It is the opinion of the AEU (SA Branch) that there is no reasonable prospect of the parties making an Agreement pursuant to the provisions of the Fair Work Act 1994.”

In a similar vein to the correspondence detailed above, the PSA corresponded with the Government on 30 October 2008 rejecting the initial offer made by the Government on 29 October 2008 in the following terms:

The PSA’s claim is for 7% pa pay increase, with the first 7% to be paid from 1 October 2008. As there is no reasonable prospect of the parties achieving agreement in the near future, the PSA supports the interim award application which includes the first 7% increase to be paid from 1 October 2008.”

Following the rejection of the improved offers made by the Government, the AEU balloted its members with a view to embarking on an industrial campaign commencing with a 24 hour stoppage on Friday 21 November 2008, with rolling-stoppages to follow in the weeks commencing 24 November 2008 and 1 December 2008. Against that background, the Government filed an application for an award in settlement of this matter, with the Industrial Relations Commission on 12 November 2008. It is noted that the Government’s application does not include the TAFE sector. Earlier, on 1 October 2008 the AEU had filed for an interim award which claimed a 7% one off increase. The AEU’s application included the TAFE sector.


In addition to filing its application for a new award in settlement of this matter, the Government has requested that the voluntary conference be enlivened so as to deal with the impending industrial action proposed by the Union. On reconvening the voluntary conference on the 17th inst. the Commission recommended to the Government that it give serious consideration to the granting of an interim increase in an endeavour to resolve the impasse that had developed between the parties. Given the seriousness of this dispute, I proposed to the Government parties, that my recommendation be placed before the Minister for Industrial Relations.

On reconvening the voluntary conference on the following day ie: the 18th inst. the Government parties advised that the Commission’s recommendation had been rejected by the Minister for Industrial Relations. Following further discussion and consultation with the parties, both privately and together, the Commission proposed that the Government give consideration to the granting of an interim increase in the following terms:

  • with a date of operation to apply from the first full pay period on or after 1 October 2008; and

  • with the quantum and scope to be determined by the Industrial Commission.

It is noted that the issue regarding scope is whether or not the TAFE sector were to be included in any such considerations.

That recommendation was initially rejected by the Government, but was ultimately agreed to on the Commission’s strong recommendation that this position, at least secured a date of operation for any increase to apply and at the same time would bring to an end the prospect of further industrial action, including the proposed stoppage set down for 21st inst.

Following the Minister’s concession to allow the date of operation to be confirmed, the AEU branch executive met on the evening of the 19th inst. to consider the proposition. Upon return to the Commission later that evening, the Commission was advised that the proposal had been unanimously rejected by the branch executive. This in my view was most unfortunate, as it appeared to meet a key demand promoted by the Union to secure a retrospective date of operation. The decision taken by the AEU was even more disappointing given the apparent difficulty in securing such a concession from the Minister for Industrial Relations.

On receipt of that advise on the evening of the 19th inst. the Government requested that the voluntary conference be elevated to a compulsory conference pursuant to s 202 of the Fair Work Act 1994. The parties present were advised that a compulsory conference would be convened the following day at 10.00 am.

On convening the compulsory conference the Commission advised the parties that after giving reasonable notice I would be referring the subject matter of the conference for determination by the Commission, in this case to be constituted by myself. During the preliminary proceedings, counsel appearing for the PSA indicated that he wished to propose an offer that was capable of settling the dispute between the parties and at the same time the proposed industrial action which was due to commence on 21 inst. Throughout these proceedings the Commission has been eager to pursue any avenue which may yield a resolution to this long running dispute. The formal proceedings were adjourned so as to allow the parties to appear before me privately and also to allow the union parties to develop and articulate this new development.

Essentially the proposal submitted the Unions sought an interim increase in line with the CPI, which they stated to be 5.1% with an effective date of operation of 1 October 2008. It left open the question of scope, ie as to whether or not TAFE would be included, and was proposed on the basis that all industrial action would be withdrawn. The proposition was not supported by the Government for various reasons. Firstly, it required the Government to concede the demand immediately in return for a cessation of industrial action. It appeared to me that whilst the Union parties were willing to vacate their industrial action forthwith, such a concession was only available if the Government were to agree to the proposition immediately.

The Commission indicated to the parties that the proposition should it have been made much earlier, may have been helpful in settling this matter. However, the unsuccessful attempt on the previous day to secure agreement with the Union party on an interim increase with a retrospective date of operation, and with the quantum and scope to be determined by the Commission sat most uncomfortably with the proposal put forward by the Union parties in an endeavour to head off any orders as sought by the Government.

Against that lengthy background, the matter was put back to the parties in order for them to present their formal submissions both for and against a proposal by the Government for orders against the Union parties to withdraw from the proposed industrial action. Not surprisingly the Union parties to this dispute have urged upon the Commission to resist the orders being sought by the Government. In particular, counsel appearing for the AEU took the Commission through a lengthy submission during which time various authorities were relied upon, the overall effect of which was to question the Commission’s jurisdiction to proceed to make the orders as sought by the Government.

I am grateful for the assistance provided by counsel both for the Union and Government parties in highlighting for me where I should take this particular dispute. On balance of those submissions, I have formed the opinion that in the absence of a cooperative working relationship between the parties, underlined by mistrust and suspicion, that short of a complete capitulation by one side or the other, there is absolutely no prospect of this matter being resolved by way of reference to further negotiation between the parties.

I am also of the view that the parties have developed a rather intractable position toward resolving this matter, and as a consequence, I am of the view that further industrial action, will, in this case, do little or nothing to advance this matter one way or the other. In that regard, the Commission notes the earlier references to correspondence forwarded by the Union parties to the Government, both stating that there was no reasonable prospect of the parties making an agreement pursuant to the relevant terms of the Act.

The Commission notes that there are currently two applications filed in the Commission, lodged respectively by the AEU and the Government which will now be referred to the President pursuant to s 212 of the Fair Work Act 1994.


On all the evidence before me I am satisfied that further negotiation and industrial action will not progress this matter any further from where it is today. Accordingly I propose to exercise the discretion available to me pursuant to s 202(1) and I indicate that this matter is referred to the Commission as currently constituted by myself for determination. In that regard the following orders are made pursuant to s 202(3):

ORDERS
  1. THAT:

    1. The Australian Education Union (South Australia Branch) and its members employed in the Department of Education and Children’s Services schools and preschools and T.A.F.E.;

    1. The Public Service Association of South Australia Incorporated and its members employed in Department of Education and Children’s Services schools and preschools and T.A.F.E

not implement or engage in:

    1. A 24 hour strike proposed for 21 November 2008;

    1. Any half day rolling stop-work action proposed between 24 November and 5 December 2008; and

    1. Any other industrial action in pursuit of claims which are or have been the subject of Enterprise Bargaining negotiations or have been claimed in relation to the Award Application No. 7048 of 2008 or the Interim Award Application No. 6327 of 2008.

  1. This Order will apply until further Order.

  1. Liberty to the parties to apply.

Dated this 21 day of November 2008

By the Industrial Relations Commission
Commissioner M.J.Doyle

PSA WORKING FOR MEMBERS IN SCHOOLS


For further information please contact PSA Industrial Officer, Kerrin Martin
phone (08) 8205 3292 or email: kjm@cpsu.asn.au.

PSA WORKING FOR EDUCATION MEMBERS

24 November 2008

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