| Award modernisation therefore is about introducing a new award for all corporations in each industry sector. This process involves establishing those industry sectors and the absorption of the many old State awards that applied to these businesses (presently called Notional Agreements Preserving State Awards or NAPSA’s) that correspond to the newly created sector.
In the Vehicle Industry the Australian Industrial Relations Commission (AIRC) has earmarked two key sectors for review – the Vehicle Manufacturing Industry and the Vehicle Repair Services & Retail Industry. In doing so the AIRC called for submissions from interested parties as to present a view on whether these awards should remain or be integrated into some other industry sectors’ awards.
MTA through the MTAA argued that there should be a new modern award for vehicle manufacturing and a new award for the vehicle repair, services and retail sector. This was the view of most that presented submissions. The MTA objective has always been to secure an industry award for the vehicle repair service and retail industry, and in doing so attempt to preserve the flexibilities and benefits gained over many years within this modern award. MTA was always of the view that when absorbing so many State awards there would also be some risk of increased costs.
Of course as is always the case when these processes arise some organisations will seek to take advantage of the situation. The Shops Employees Union for example, sought to remove the flexibilities presently in place for vehicle sales, increase service station penalty rates across the board and remove the flat rate casual console operator rates and whisk service stations generally out of vehicle and across to the retail industry. MTA submissions were very strong in discrediting the union approach in this regard and this union was most unsuccessful in its endeavours.
Notwithstanding the MTAA position of wanting an award just for the retail motor industry, the AIRC released a draft modern award that incorporated both the vehicle manufacturing and vehicle repair service and retail industries. The positive side to this outcome is that the vehicle industry maintains an industry award albeit includes manufacturing. This is a good outcome in the context that the industry is sufficiently significant to warrant recognition with its own industry award. Another positive is that those MTA member businesses that undertake aspects of manufacturing as well as retail motor industry operations will have a single award for their business.
The risk associated with bringing in the vehicle manufacturing sector however is the possibility of having to pick up some of the costs associated with this manufacturing award as the AIRC attempts to integrate conditions of employment. This is an obvious but necessary outcome and an outcome that has been realised in the AIRC decision and its draft award.
In response, MTA has placed submissions before the AIRC in response to the release of its proposed draft modern Vehicle Manufacturing Repair Service and Retail Industry Award. MTA reminded the AIRC of the need to, where possible, reduce costs associated with the award modernisation process. To this end MTA has argued for many changes to the proposed award conditions to reduce costs and to limit the number of awards that apply to a member’s businesses. MTA has also put to the AIRC that where significant increases occur that these costs should be phased in over several years.
The AIRC will ultimately release its final version of an industry award for the vehicle industry on 4th September, 2009. This new award will have application from and on the 1st January, 2010. After the release of the new modern award the MTA will conduct State-wide briefings for the NSW vehicle industry. |
