• Internal Code :
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  • Subject Name : Enterprise System

Modern Award- Fair Work Commission

 

Title/AE no.

Industry

Industry segment

(product market competition)

Duration

(years)

Union-negotiated? Which one?

Enterprise Agreement 1

Shrek the musical casual crew collective agreement 2019-2020

(AG2019/4813)

AE506675

Amusement, events and recreation industry

Live performance/ theatre

Casual crew collective agreement

1 year

(2019-2020)

Media, Entertainment and Arts Alliance (MEAA)

Enterprise Agreement 2

Qantas Airways Ltd T/A Qantas Airways Ltd (AG2020/276)

AE507126

Airline Operations

Pilots (short haul)

EA

3.5 years

(2020-2023)

Australian and International Pilots Association

Enterprise Agreement 3

Officeworks Limited (AG2019/2571)

AE505609

Retail Industry

Store operations agreement

4 years

(2019-2023)

Australian Workers’ Union (AWU)

Retail and Fast Food Workers Union (RAFFWU)

Shop Distributive and Allied Employees’ Association (SDA)

Wage Rate Comparison(find the classification structure; choose a classification that has a pay rate approximately in the middle of all the classifications)

 

Classification name

Ordinary time wage per week

Ordinary time wage per year

Are there junior rates? Yes/No

EA1.

A.1

Schedule A - Classifications Live-(Performance Employee Level 4)

Production and Support Staff Level 4

Agreement Hourly Casual rate as at 1 July 2018- 30.58

Agreement Hourly Casual rate as at 1 July 2019-31.50

$55,777.92

$57,456

 No

EA2.

Pilots in senior management positions

Air Pilots Award 2010 and

the Qantas/Australian Airlines Pilots Integration Award 1994 (“the Integration Award”)

First year: $207,677.57

 No

EA3.

10.3 classification structure

-Team member level 2

Weekly Wage Rate Equivalent (Hourly) (Base Rate of Pay x 38 hours)

=$890.72

(Team Member: Level 2)

$46,317.44

 Yes

Which agreement is most generous, relative to the rate of pay in the relevant Modern Award?

 

Ordinary time wage per week

Modern Award ordinary time wage per week

Gap in $

EA1.

$1197

$862.50

$334.5

EA2.

$3993.80

 $860.60 (over 3000 hours experience)

$3,133.2

EA3.

$890.72

$833.00 (level 2 employee)

$57.72 +

Which agreement is most generous, relative to the average wage in the relevant industry?

 

Ordinary time wage per week

Industry average wage (ABS 6302.0)

Gap in $

EA1.

$1197

(Under arts and recreation services)

$1,525.20.

(6302.0 - Average Weekly Earnings, Australia, Nov 2019, 2020)

$328

EA2.

$3993.80

(Under Transport, Postal and Warehousing)

$1,649.90.

 

(6302.0 - Average Weekly Earnings, Australia, Nov 2019, 2020)

 $2,343.90

Most generous, relative to the average wage in the industry.

EA3.

$890.72

(Under retail trade)

$1,249.30.

(6302.0 - Average Weekly Earnings, Australia, Nov 2019, 2020)

$358.58

Wage increases

 

Total wages rises for the life of the agreement (%)

Calculate the average annual per cent wage growth for the life of the agreement:

EA1.

From 1 July 2020 - by dividing the Award weekly rate (as at 1 July 2020) by 38 and adding a casual loading of 25% and increasing the hourly rate by 11%.

25% (casual loading) + 11% (hourly rate) p/a

= 36% increase for the life of agreement

EA2.

From 1 September 2018 full pay period till 1 September 2019 full pay period the increase will be 0.03(3%)x the hourly rate + the credited hours accrued by the pilot under EBA7 for the period commencing on 1 September 2019.

2nd year- 0.03 increase will be compounded to 0.0609 (6.09%).

109% increase

EA3.

Year 1- 2%

Year 2-2%

Year 3-3%

Year 4-3%

250% increase

Hours of work

 

Weekly working hours

Span across times on which employees can work without penalty rates

Anything distinctive about hours of work?

EA1.

21.1 (The ordinary hours of work of casual employees will be a minimum of four consecutive hours per day. Ordinary hours may be worked on any of the days Monday through to and including Sunday between the hours of 7.00 am and 12 midnight)

8 hours per day between 7am to 12 am

Casual employees must work for a minimum of 4 consecutive hours per day.

EA2.

15.13.1 -The ordinary full time hours for the performance of the ground duties is thirty eight (38) hours per week.

Flight time duties for a pilot must not exceed;

• 100 hours within a 28 consecutive day period; OR

• 1,000 hours within a 365 consecutive day period.

 

Pilot’s work less in a week when flying than when responsible for ground duties.

EA3.

Normal trade hours:

Monday to Saturday

7:00 am - 11:00 pm

Sunday

9:00 am - 11:00 pm

From 7:00 am to 6:00 pm is base rate, between Monday to Friday.

Work a maximum of 5.4 hours a day if working 7 days a week (maximum 38 hours a week).

Labour process: for the largest occupational group covered by each EA, is the labour process…..

 

Labour-intensive, capital intensive or knowledge intensive?

Focused on ‘short run responsiveness’ (flexibility) or ‘long-term agility’ (human capital advantage)?

EA1.

Labour intensive

 

EA2.

Knowledge intensive

 

EA3.

Capital Intensive

 

Note two distinctive substantive rules for each agreement (ie. the rule is relevant only for this firm or this industry)

 

EA 1.

EA 2.

EA 3.

Clause no./name

18.3 Transmission or recording allowance

a) Where a performance is to be recorded or transmitted by any means, including but not limited to radio or television transmission or film, video or audio recording, and whether transmitted live or recorded for later transmission, exhibition, distribution or sale, all production casual employees who perform work on that performance will receive an allowance in addition to the rate they would otherwise be entitled to for that performance

 39- Annual leave

39.1 Entitlement

A pilot will accrue forty-two (42) days' annual leave (inclusive of Saturdays, Sundays and Public Holidays) for each twelve (12) months’ continuous service (excluding any periods of unapproved absences).

29.1 Annual leave entitlements

29.1.1 Except as otherwise provided for in this agreement, annual leave is provided for in the NES.

Clause no./name

   

28.5-Store is not open for trade on a public holiday

28.5.1-Where a store does not open for trade on a public holiday, and a Team Member would have been rostered to work on such a day, they will be entitled to payment for the day based upon their ordinary time earnings (including penalties as appropriate) for the hours normally rostered to work.

Note one distinctive procedural rule for each agreement

 

EA 1.

EA 2.

EA 3.

Clause no./name

13.1 Consultation about major workplace change

13.1.1 If the Employer makes a definite decision to make major changes in production, program, organisation, structure or technology that are likely to have significant effects on casual employees, the Employer must:

39.3 “Golden Leave” days pre-allocated
Each pilot may request the Company to pre-allocate up to two (2) “golden” leave days each year for each pilot. Golden leave may be taken as two (2) days, or as two (2) separate single days, subject to the following:

29.5 Cashing Out of Annual Leave

29.5.1 Whilst Officeworks believes that team members should take their annual leave for reasonable rest and recreation, a Team Member who has accrued annual leave entitlement in excess of 4 weeks, may in writing request to 'cash out' a period of paid annual leave

Note two clauses that relate to work health and safety.

 

EA 1.

EA 2.

EA 3.

Clause no./name

 27.1 (The Employer agrees to advise and provide casual employees with a copy of the "Entertainment Industry Safety Guidelines" prior to the commencement of an engagement)

 56-Uniforms

56.2- The Company will replace a pilot’s uniform from time to time as appropriate as a result of fair wear and tear in relation to duty but the pilot will bear the cost of replacing an item of uniform if that becomes necessary due to the pilot’s negligence.

 42- Workplace safety

42.1.1 The company and its Team Members are committed to achieving and maintaining healthy and safe working conditions in all the company workplaces by abiding by all relevant occupational health and safety legislation.

Clause no./name

 27.2 (The Employer can access copies of the Entertainment Industry Safety Guidelines from the MEAA or LPA websites)

53.2 -Licence renewal, training flying and flight simulator training

53.2.1 -A pilot undergoing licence renewal or training flying or simulator training is entitled to see a copy of the instructor's or check pilot’s report on the licence renewal or training and will acknowledge this by signing it or electronically acknowledging the report.

43- Protective clothing

43.1 (Officeworks will provide windbreaker jackets for team members who work in the receiving area of the site where the weather necessitates)

Rate the agreements in terms of:

 

Clarity/’User friendly’

Interests of employees

Best principles of HRM

Best

 EA2

 EA3

 EA3

Middle

 EA3

 EA2

 EA2

Worse

 EA1

 EA1

 EA1

Analysis:

The agreements between workers', unions and the three organizations sampled to provide clear and consistent structures governing the relationships between the employer and the employees. The Qantas Airways Ltd agreement (EA2) covers a three and a half year period and is negotiated by one worker's union. This makes it a critical tool for governing relationships in the long-term. Its rigidity in time is a critical aspect of ensuring that the tool is reliable. Officeworks Ltd has the longest period of the three agreements, a characteristic of the retail industry where employees take longer to realise the benefits of employment. EA1 for the Shrek the Musical Crew is the most versatile of the agreements sampled. In an industry prone to systemic shift, it is prudent for human resource management to be easily adjustable, thus informing the year period that is covered by the agreement (Menger, 1999, pp. 551)

The EA3 agreement is simple. It is easy to understand and provides clear instructions. The fact that the weekly wage rate is a function of work hours as prescribed in the same document gives the employers and employees control over wages.The agreement provides for a comprehensive rate of pay increase structures over time. It possesses a clear employee classification regimen that is directly linked to the pay structure. The clarity in role assignment is a sign of Human resource prudence in managing the labor force of the company.

The agreement covers the information required to decide on the employee work hours, workdays, and leave to ensure that there are no disputes in time management. The wage increase that is mandated in the agreement is simpler than the other agreements sampled. Aspects of health and safety are vague because they are deferred to acceptable legal standards rather than being demarcated. This also fails to include stakeholders in design of the system (Gallagher,Underhill, and Rimmer, 2003. pp. 73-74)

The EA2 agreement is the most generous relative to the average wage in the industry, for transport, postal, and warehousing which stood at $1700. The agreement provides clear timelines and is negotiated by one organisation. The fact that the pilot's wages are not set by hourly rates but rather by weekly rates depicts that the human resource management strategy highlights the nature of the pilots' work schedule. Further to this, the document is a realisation of the knowledge-intensive nature of the profession setting standards and procedures for training and ensuring that they are specifically addressed. It is a well-crafted agreement that takes care of the needs of the pilots by ensuring that they do not overwork therefore putting their flights in danger. Negotiating for a maximal number of work hours is important in protecting the pilots from exploitation and ensuring safety (Marqueze, Nicola, Diniz, and Fischer, 2017, pp. 61 ).

The Shrek the Musical Crew agreement (EA1) resoundingly links to the casual nature of employment in the entertainment industry. It is vague in terms of stating and protecting the employees' rights in the form of safety and consultation about workplace changes. The casual nature of employment in the company also precludes any solid statements on leave allocation (Lowry, Simon, and Kimberley, 2002. pp. 64-66). However, the agreement recognises the differences in skills and competences of the employees by developing a substantive classification schedule for all the employees. Its formula for calculating annual wage growth is responsive to the nature of work in the industry. The disadvantage is that it is complex and may cause issues when making determinations about pay.

All three agreements are products of collective bargaining with strong trade unions within the respective industries. The EA2 and EA3 agreements have taken on evidence-based approaches to ensure that industrial problems are well managed within the agreements. The same is not clear in EA1. All the terms required by labor laws are represented in the documents with an emphasis on safety and fairness in human resource administration.

Reference List:

(Gallagher, C., Underhill, E. and Rimmer, M. 2003. Occupational safety and health management systems in Australia: barriers to success. Policy and Practice in Health and Safety, 1(2), pp.67-81.

Lowry, D.S., Simon, A. and Kimberley, N. 2002. Toward improved employment relations practices of casual employees in the New South Wales registered clubs industry. Human Resource Development Quarterly13(1), pp.53-70.

Marqueze, E.C., Nicola, A.C.B., Diniz, D.H. and Fischer, F.M. 2017. Working hours associated with unintentional sleep at work among airline pilots. Revista de saude publica, 51, p.61.

Menger, P.M. 1999. Artistic labor markets and careers.Annual review of sociology, 25(1), pp.541-574.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Enterprise System Assignment Help

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