Redundancy and enterprise agreements

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Redundancy and enterprise agreements

A large proportion of private sector agreements (excluding those from the metal industry) included provisions dealing with redundancy and related issues.

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A large proportion of private sector agreements (excluding those from the metal industry) included provisions dealing with redundancy and related issues. Redundancy and related issues are covered in the following summaries from agreements.

Restructuring plan: The Terminals Pty Ltd Coode Island Terminal Agreement 1997 [Print P8663] includes a restructuring plan. The plan aims to optimise the redundancy packages available to all operators and cause the least amount of pain and stress for those operators by way of flexibility in package availability. The agreement sets out a redundancy formula and provides for employees to possibly return to the workplace through a third party labour hire company. Preference for future vacancies will be given to ex-employees. The agreement also includes provision for outplacement assistance.

Redundancy payments: The CSR Emoleum Victoria Road Maintenance Agreement 1998 [Print P8406] provides two options for redundancy payments. The first option operates when there is a closure of business or the parties agree to use the first process, in which case the payment is two weeks’ ordinary time for each completed year of service with a maximum of 52 weeks’ pay. The second option operates on a skills based selection process, in which case the redundancy pay will be three weeks’ ordinary time for each completed year of service up to a maximum of 52 weeks.

Length of service: The CFMEU/Transfield Pty Ltd Enterprise Agreement [Print P8543] recognises that length of service is an important consideration in determining retrenchments. The agreement states that the union "accepts the principle that length of service should not necessarily be the exclusive consideration, but on a range of factors considered including the skills and efficiency of workers, the required skills available within the existing workforce, and changes in the operational direction of the business."

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

 

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