Performance measurement in enterprise agreements

Analysis

Performance measurement in enterprise agreements

Enterprise agreements can be used to implement performance related pay and other measures of performance.

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Enterprise agreements can be used to implement performance related pay and other measures of performance. The following summaries from agreements illustrate a range of performance related measures.

Hourly individual performance bonus: The Delta Enterprise Agreement (Karratha) 1998 [Print Q0558], a s170LK agreement, provides for the operation of performance reviews in conjunction with performance based bonuses. The agreement states that the bonus pay range is between 10 cents and 75 cents per hour. Employees are assessed annually on factors such as safety awareness, quality of work, productivity, teamwork, innovation and consistency of results.

Key result/performance indicators: The CSR Ltd – Gyprock Yarraville (Enterprise Bargaining) Agreement 1998 [Print P9911] lists detailed key performance indicators (KPIs) which relate to the responsibilities of self-directed teams. The KPIs include specific production and waste targets, OHS results and service levels.

Profit sharing: The Southern Cross Converting Enterprise Agreement 1998 [Print Q0291] includes a monthly profit sharing scheme that sees employees receive a bonus between $50 and $100 a month based on the company’s profit levels.

The Enterprise Agreement Between Zurich and FSU April 1998 – April 2000 [Print Q0249] provides for both a profit sharing incentive scheme and an individual performance incentive. Employees can receive one-off cash payments of 1.5% if the company achieves at least 80% of its performance targets. If individual performance is rated satisfactory and the company achieves 80% of its targets then an employee may receive another 1% on top of the other bonus.

Performance appraisal: The Repco Group Import Distribution Enterprise Agreement 1997 [Print Q0024] commits the parties to the agreement to develop and apply an appraisal system. The agreement states that the purpose of the appraisals will be to establish an employee’s training needs and improve and develop an employee’s skills. It is not to be used as a disciplinary measure.

The above summaries were taken from the Australian Chamber of Commerce and Industry’s ‘Federal Enterprise Agreement Report – Second Quarter 1998’.

 

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