(1232) SERIAL B5459 THE MAYNE NICKLESS LOGISTICS, NEW SOUTH WALES, PEPSICO (DRIVERS) CONSENT AWARD 1996 INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES Application by Mayne Nickless Logistics. (No. IRC 6185 of 1996) Before The Honourable Mr Justice Marks 12 December 1996 AWARD Arrangement PART A Clause No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. Subject Matter Basic Wage Title Purpose of this Consent Award Relationship to Parent Award Scope and Application Period of Operation Structural Efficiency Principle Consent Award - Stage 1 Wage Rates No Extra Claims Flexible Lunch Arrangement Annualised Salary Flexible Starting Times Hours Casual Employees Permanent Part-time Employees Management Operational Assistance Computerisation Route Reviews Payment for Meetings and/or Training Public Holidays Housekeeping and Maintenance Dispute Procedures Payment of Wages Labour Portability Labour Flexibility Code of Conduct Future Technology Consultative Process Crib Breaks Total Quality Management/CSI Spread of Hours Special Commitment PART B MONETARY RATES Table 1 - Wages Appendix A - Pepsico Drivers Effective Hourly Rate Appendix B - Public Holiday Payments 1. Basic Wage This award, in so far as it fixes rates of wages, is made by reference and in relation to the adult basic wage as set out in Part B, Monetary Rates. The said basic wage may be varied by the Industrial Relations Commission of New South Wales under subclause (2) of clause 15 of Division 4 of Part 2 of Schedule 4, Savings, Transitional and Other Provisions, of the Industrial Relations Act 1996. A reference in this award to the adult basic wage is to be read as a reference to the adult basic wage currently in force under the said clause 15. 2. Title This award shall be titled The Mayne Nickless Logistics, New South Wales, Pepsico (Drivers) Consent Award 1996. 3. Purpose of This Consent Award (i) Intent - This document has been designed to provide opportunities for management and staff to develop specific improvements or initiatives within the business. The company, in conjunction with its employees and the union, intends to achieve a stable and workable employee relations environment at the business unit/site to provide flexibility, a competitive edge, improved efficiency and quality services. To this end, the union and employees agree to work with the company to facilitate: more dynamic and innovative working arrangements than exist at present; improved business and customer needs/servicing requirements; introduction of new technologies and related initiatives; new hours and start time initiatives; opportunities for staff to participate in new initiatives; potential for an annualised salary system; initiatives which improve restructuring initiatives/business plans/budgets/work culture and servicing requirements; award provisions being in plain English and simpler to read; a future comprehensive site award/agreement. (ii) Continuous Improvement Initiatives (a) The parties to this document are committed to positively identify and implement measures to improve productivity and efficiency at an enterprise level during the life of this consent award. (iii) (b) The parties will develop specific productivity, efficiency measures and key performance indicators (KPIs). (c) Specific measures to be considered as part of a broad agenda may include but not be limited to matters such as improved service delivery, flexible work patterns, work roster modelling, work practice and restructuring reviews, workers' compensation, continuous service improvement processes, etc. The union will not unreasonably object to such matters being discussed or reviewed during the life of this consent award. The consultative committee will be involved in monitoring such matters and the union will not unreasonably object to such matters. (iv) Management and Staff Commitments - The parties agree that it is to their mutual benefit to commit to the following: (a) Focus decision making and responsibilities around customer satisfaction (internal and external). (b) Improve customer service expectations via continuous service improvement. (c) Deal honestly and fairly with each other at the workplace, including customers, suppliers and the wider community which the company serves. (d) Ensure the needs of the business are a joint priority in assessing and implementing future initiatives under this consent award. (e) It is agreed a site specific agreement will be developed to incorporate drivers, yardpersons and other personnel in a future site specific consent award. (f) Ensure the business and customers interests are not compromised or impacted on by industrial action, before ensuring consultation with management levels occurs as an accepted standard practice. (The disputes procedure herein will be adhered to). (g) Upholding the company's policies and procedures at each site and by each individual employee. 4. Relationship to Parent Award This consent award shall be read and interpreted wholly in conjunction with the Transport Industry (Interim) State Award (parent award) published 17 July 1992 (270 I.G. 611), as varied; provided that, where there is any inconsistency, this consent award shall take precedence to the extent of the inconsistency. 5. Scope and Application The terms and conditions of the consent award shall apply to Mayne Nickless Logistics at the Pepsico site (hereinafter referred to as "the company"), the Transport Workers Union of Australia, New South Wales Branch (hereinafter referred to as "the union") and the company's drivers and yard persons engaged in transport and related services at the Pepsico site. 6. Period of Operation (i) This consent award shall take effect from the beginning of the first full pay period the commence on and from 12 December 1996 and shall have a nominal term expiring on 31 December 1997. (ii) The parties undertake to commence discussions up to three months prior to the expiration of the consent award; however, this consent award will continue in force until replaced by a new consent award. 7. Structural Efficiency Principle The parties agree that efficiencies introduced as a result of the Structural Efficiency Principle (SEP) will continue in force and complement the initiatives to be introduced. The parties reaffirm their commitment to the SEP initiatives. 8. Consent Award - Stage 1 The parties agree that provisions introduced as a result of the Stage 1 consent award shall continue to be applied unless better initiatives are introduced, in lieu, in this consent award. The union and its officers, in conjunction with management and employees, will commit resources and energies to improving and achieving productivity, efficiency and performance outcomes in each business unit/site in a co-operative manner. Note: Contrived agreements will be avoided. The union will not unreasonably object to the introduction of new initiatives. 9. Wage Rates Employees will have their rates of pay increased from the first full pay period on and from 12 December 1996 as follows: Drivers - (Remuneration) - The agreed effective hourly rate agreed to be paid to drivers on night routes will be $21.65 per hour. Please refer to Appendix A - Pepsico Drivers Effective Hourly Rate, for the administration of this hourly rate. The wage rates set out in Table 1 - Wages, of Part B, Monetary Rates, reflect the base rates which are relevant to this site. NOTE: Disability component is to be calculated on the enterprise bargaining agreement (EBA) rate exclusive of 15 per cent loading and added to the rate. 10. No Extra Claims The union undertakes that there shall be no further wage increases during the life of this consent award. Wage rates paid pursuant to this consent award are inclusive of State Wage Case determinations for the life of this consent award. NOTE: The union and its officers will not allow double dipping as part of this consent award and establishing an effective hourly rate. 11. Flexible Lunch Arrangement The parties agree that, where opportunities exist to enhance company efficiencies through increased vehicle utilisation, employees will ensure that they arrange the taking of their meal breaks to complement customer meal break times and/or to ensure down time is eliminated on routes. Accordingly, meal breaks may be varied to ensure lunch breaks are taken at a more convenient time during the employee's shift. 12. Annualised Salary Where efficiencies and flexibilities can be identified as part of implementing an annualised salary system in lieu of the traditional award wage plus extras associated with an award, then the parties will work co-operatively towards implementing an annualised salary, which will be paid by electronic funds transfer (EFT) weekly. Any new annualised salary scheme will not create any additional wage costs to the company, since the calculations for annualised salaries will involve averaging existing wage rates, allowances, overtime, shift/weekend (as applicable) and public holiday payments previously paid, to establish an annualised salary on an all-up rate in return for employees working flexible hours without start and finish time restrictions and satisfying all work demands as required. NOTE: An annualised salary will be designed as an incentive for work done within the business. The union and its officers encourage and endorse the concept of annualised salaries with flexible arrangements applying for the business as being a positive and rewarding step for employees. The parties agree that any form of an annualised rate agreed upon will not form a precedence or flow on to other sites as each site stands on its own regarding circumstances. 13. Flexible Starting Times To complement customer needs and efficiencies it is agreed that start times on routes will ensure a flexible and speedy service is delivered. (Please refer to subclause 7, Starting Times, of Appendix A - Pepsico Drivers Effective Hourly Rate, for notice to change start times.) 14. Hours (1) The parties agree to have in place provisions which meet clients' needs and ensure operational coverage is enhanced through having innovative hours. It is important that drivers are ready to commence driving duties at starting times to optimise the achieving of route services in a timely manner and, therefore, the parties commit to this objective. (2) Ordinary hours, which may be greater than eight ordinary hours in a day, will apply and be adhered to by employees on routes established by the employer. (3) Hours of ordinary-time work over a 4-week period will be 152 hours. (4) Contrived arrangements by employees will not be considered in claiming monies outside the effective hourly rate where it is understood and agreed that flexible route hours are to be worked as required. (5) Spread of Hours - The ordinary hours of employees shall be according to routed times on any shift as part of receiving an effective hourly rate. (6) The rostering of route time will ensure a minimum of 38 hours per week unless it is agreed some form of averaging of hours or time in lieu is necessary to meet special circumstances. 15. Casual Employees (i) A casual employee is one engaged on an hourly basis otherwise than as a permanent part-time or fulltime employee. (ii) A casual employee shall be paid an hourly rate calculated on a basis of 1/38th of the appropriate base rate prescribed by the wage schedule in this award, plus 15 per cent thereof, plus disability component. (The effective hourly rate for drivers will not apply to casual drivers.) (iii) With respect to a casual employee, the following clauses of the parent award shall not apply: clause 20, Recall, clause 21, Public Holidays, clause 22, Union's Picnic Day, clause 25, Sick Leave, clause 26, Annual Leave, clause 41, Bereavement Leave, and clause 44, Jury Service. (iv) Redundancy provisions and annual leave loading do not apply to casual employees. (v) A casual employee shall receive a minimum payment of four hours for each start. (vi) A casual employee will be paid their casual hourly rate for all route time worked. (vii) Where a casual employee works normal hours on weekends the weekend premium will be paid in lieu of the casual loading prescribed in subclause (ii) of this clause. 16. Permanent Part-Time Employees Permanent part-time provisions have been agreed upon to ensure that more flexible provisions for employees may be utilised. This provision compliments the Company's affirmative action strategies for 1996/97 and the need to cater for different family responsibilities/ gender issues. The permanent part-time employee provision is as follows: (i) A permanent part-time employee (including drivers) is one who is permanently appointed by a facility to work a specified number of hours which are less than those prescribed for a full-time employee. By agreement between the employer and employee the specified number of hours may be balanced over a week, fortnight and/or monthly period, provided that the average weekly hours shall be deemed to be the specified number of hours for the purposes of accrual of annual leave. Provided further that there shall be no interruption to the continuity of employment merely by reason of an employee working on a "week on, week off" basis in accordance with this subclause. (ii) Employees engaged under this clause shall be paid an hourly rate calculated on the basis of 1/38th of the appropriate rate prescribed by this award. Minimum engagements will be arranged by mutual agreement. (iii) Permanent part-time employees shall be entitled to all other entitlements on a pro rata basis. 17. Management Operational Assistance It is agreed by both parties that Management Operational Assistance (MOA) will be permitted within the award where circumstances are such that the situation is deemed to be an unexpected circumstance or an emergency. 18. Computerisation The parties agree that the measurement of vehicle and driver performance and driver techniques is imperative to ensure competitiveness and occupational health and safety. Therefore, after the implementation of a structured training program, all employees will be required to operate computer equipment which may also include the downloading of their Circuitlink or other vehicle internal computer system and submit periodically the output to his or her supervisor. Adequate downloading and/or recording capabilities will be provided by the company to each yard to facilitate this activity. 19. Route Reviews To achieve the aims and objectives of this award, the parties acknowledge the need to adopt a more flexible approach to existing work procedures in order to increase the efficiency, productivity and competitiveness of the company. As the parties acknowledge the benefits of having effective and efficient routes, accordingly, it is agreed that periodical reviews may be undertaken to ensure their relevance. 20. Payment for Meetings and/Or Training The parties recognise the benefits of meetings and/or training initiatives for the business and employees. Wherever possible, meetings and/or training sessions will be held during normal working hours; however, should a meeting or training session occur outside normal working hours, then an employee requested to attend will be paid at ordinary time rates. Any compulsory training called will only be valid for ordinary rates (enterprise bargaining agreement (EBA) base rate) where seven days notice to employees is given or is mutually agreed to be arranged. 21. Public Holidays (a) The following days will be observed as public holidays by permanent employees: New Year's Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen's Birthday, Eight-hour Day, Christmas Day, Boxing Day and Union Picnic Day (which may be recognised on Easter Saturday), plus any other day(s) which may be proclaimed by the Government. (b) Public holidays which fall between Monday and Friday, and fall on a non-rostered route which is not worked by an employee, shall be allowed and be entitled for payment for up to a maximum of eight hours only, for such a day entitlement at the enterprise bargaining agreement (EBA) base rate. For public holiday payment where worked, please refer to Appendix B - Public Holiday Payments. (c) Substitution of Public Holiday - Public holidays listed in subclause (a) of this clause may be substituted for another day off, by agreement between the employer and the employee(s), to be taken adjacent to a period of annual leave or at another time to suit the needs of the business. (d) Absences Before or After a Public Holiday - An employee who, without the permission of his/her employer, absents himself/herself from duty on the working day or part thereof immediately preceding or the working day or part thereof immediately succeeding any public holiday(s) shall not be entitled to payment for such public holiday(s). NOTE: This subclause will not apply where an employee provides a sick leave certificate to the satisfaction of the employer immediately upon returning to work. 22. Housekeeping and Maintenance It is agreed that all employees, including management, will be responsible for ensuring that their work environment is maintained in a clean and tidy state. Further, the company may request employees to undertake general yard cleaning/loading/housekeeping duties as and when the need arises. This may also involve Occupational Health and Safety issues. Drivers are responsible for vehicle maintenance such as: (i) pre-check inspections of vehicles prior to start times will occur; (ii) ensuring vehicles are regularly washed and cleaned as required by the customer or employer; (iii) maintaining temperature logs of the vehicle freezer. 23. Dispute Procedures Disputes Avoidance and Settlement Procedure - The following procedure represents the joint commitment by the parties to the enterprise bargaining agreement (EBA) process to ensuring, through a defined consultative process, all matters of concern to the parties can be resolved so that the interests of all those affected, including clients, are protected from disruption and the value of the productivity and efficiency improvement benefits provided by the EBA are sustained. The process emphasises the need for local management and union officials to expedite the effective resolution of issues as they arise. Disputes Avoidance Procedure - Application - The following disputes avoidance procedure will apply in the event that a question, dispute or difficulty arises involving employees and the management of the company (activity). Objective - The objective of this procedure is to establish a means of facilitating the resolution of questions, disputes or difficulties without disruption to the operations of the company. It is based on the intent of the parties to support the timely and orderly determination of issues which arise in the workplace from time to time. Process - Dispute Avoidance and Settlement Procedures - Dispute occurs; Stage 1 - Site procedures are followed (i.e., conferences with member, delegate, local official). Stage 2 - After Stage 1 is completed there is a 24-hour cooling-off period where the status quo is retained. Stage 3 - During the Stage 2 cooling-off period, conferences will be held between management of MNL and State Secretaries of the TWU. Stage 4 - After Stage 3, there is a further minimum 24-hour cooling-off period where the status quo is retained. Stage 5 - During Stage 4 there are conferences between national management and the State Secretary of the TWU. Stage 6 - After Stage 5 is completed there is a further minimum 24-hour cooling- off period where the status quo is retained. Stage 7 - During Stage 6, the matter is referred to the Industrial Relations Commission of New South Wales. Both parties will agree to the IRC's decision. Variations (a) Safety issues will be dealt with as determined by OH & S chairman/ representative, or the State OH & S bodies in accordance with the correct procedures. (b) Essential services, such as supply of blood, medical services and perishable items, shall not be interrupted through industrial disputation. Additionally, where specific EBA exemptions/priority services have been agreed, these shall continue to apply. Status Quo - Special Note: The TWU commits to communicate their support and agreement in regard to the adherence to disputes procedures contained in this agreement. The status quo is defined as the practice in the place prior to the dispute. If the status quo position cannot be agreed upon, then the procedure is to fast track to the Industrial Relations Commission of New South Wales with no commitment given. Notwithstanding anything contained in this procedure, both parties reserve the right to notify the Commission at any stage of the process. 24. Payment of Wages All employees (including casuals) are to be paid weekly by electronic funds transfer (EFT). The company will pay wages to accounts by the close of business each Wednesday. The company may vary pay days around public holidays or where circumstances beyond the control of the employer necessitate the moving of pay days without penalty. 25. Labour Portability (1) A fundamental discipline of the company's business is the ability to effectively utilise its resources, including employees and equipment. (2) Customer requirements vary on a day-to-day basis and, as such, the company must respond accordingly. (3) The parties have agreed that, in order for the company to respond to customer requirements, it must have the flexibility to move both labour and equipment to match these requirements. (4) As such, where work volumes dictate, all employees following consultation will be portable from one section/location to another section/location within the company. (5) Consideration will be given to an employee's qualifications, capabilities and specific product knowledge. 26. Labour Flexibility An employer may direct an employee to carry out duties as are within the limits of the employee's skill, competence and training. Such duties may include work which is incidental or peripheral to the employee's main tasks. Any employer may direct an employee to carry out duties and use equipment/vehicles as may be required, provided that the employee has been properly trained or has otherwise acquired the necessary skills in the use of such equipment. Any such direction issued by the employer shall be consistent with the employer's responsibility to provide a safe and healthy working environment for employees. 27. Code of Conduct The following codes of conduct have been designed to ensure all employees understand their obligation/responsibilities with regard to acts of dishonesty, company policy and general discipline. (a) (b) General - All employees, including management, are required to: (i) Treat customers and colleagues with honesty, courtesy and respect. (ii) Effectively perform their duties in line with business objectives, award/agreement policies, rules and procedures. (iii) Work in a safe and healthy manner. (iv) Attend work when required and report absences immediately. Acts of Dishonesty - The following examples are listed as a guide to ensure that all employees clearly understand that such acts are dismissible offences: (i) Proven cases of theft and pilferage (stealing). (ii) Falsifying of documents so as to achieve a benefit one is not entitled to (wages/time sheets, etc.). (iii) Clocking on or off on bundy cards other than the bundy card displaying the employee's own payroll number. (iv) Any form of proven malicious violence towards: company property; customers and/or their property; any member of the public and/or their property; a fellow employee(s). The above relates to during working hours and on company or clients property; however, it does not prevent employees using self defence to defend themselves. (v) Refusal to follow or carry out a lawful and reasonable request/ directive given by a supervisor, fleet controller or manager. (vi) The use of, or being affected by or in possession of, illegal drugs and/or substances in company time on company property. The use of prescription drugs which may affect any employee's performance must be brought to the attention of the employee's supervisor or manager. Such information will be deemed confidential. (vii) Consumption of alcohol during working hours. The above list is not exhaustive and employees should take care and avoid placing themselves in such a situation. (c) Misconduct - The following list represents a guide for employees to ensure they understand that such misconduct can lead to disciplinary action being taken against an employee: (i) Driving any vehicle in the yard complex at excessive speed. (ii) Mishandling (throwing, kicking) and thereby causing damage to freight. (iii) Failing to ensure a vehicle check occurs for oil, water, tyres and fuel, which results in a breakdown, vehicle damage, or loss of productive time. (iv) Not approaching or treating employees in a reasonable and civil manner. (v) Failing to notify the company, via a supervisor, when arriving later than normal starting time (within one hour). (vi) Unacceptable attendance, continual lateness, patterned absences, failure to notify the company, via a supervisor, of a pending absence (prior to rostered starting time). (vii) Failure to wear company uniform while representing the company whilst effecting pick-ups and deliveries. (viii) Failure to effectively perform duties. (ix) Failure to be free from the influence of alcohol when reporting to work. (x) Failure to work in a safe and healthy manner. (xi) Failure to comply with operating procedures which may lead to injury/damage to property/person or productivity. The above list is not exhaustive and employees should take care and avoid placing themselves in such a situation. (d) General Conduct - In cases of serious misconduct, the employee may be given a verbal warning, a written warning or dismissed, depending on the following criteria: (i) Circumstances and work relevance of the misconduct. (ii) Seriousness of the misconduct. (iii) Employee's explanation of his/her conduct. (iv) Employee's past conduct and personal situation. NOTE 1 - At the discretion of the company, an employee involved in misconduct (other than acts of dishonesty) may be stood aside on normal pay, pending a full investigation. NOTE 2 - Letters of warning for misconduct (other than acts of dishonesty) will remain on an employee's file as follows: First - 9 months Second - 12 months Third and final - 24 months The employee will be required to sign such letters of warning to confirm that he/she understands their content. NOTE 3 - The employee shall have the right to have a witness of his/her choice present during all the above steps. Notwithstanding anything contained in this code of conduct, the employee has the right to have a union official and/or delegate present during any of the steps outlined in this clause. 28. Future Technology Presently, the company and its customers have been working together to develop new work processes. The objective of this exercise is to enhance customer service levels through quantum changes to how both the customer and the company presently deliver their respective services. The parties agree that any changes to this work methodology brought about by the process re-design will be implemented in a co-operative manner. 29. Consultative Process The parties agree that a consultative approach to workplace change programs will apply. The site consultative committee will meet on a regular basis to monitor the effectiveness of the enterprise agreement and identify new areas of workplace activity that can be improved to enhance productivity, customer service and job satisfaction. These meetings ought to be held at least bi-monthly or as necessary and on company time during the life of this award. 30. Crib Breaks The company requires, as a general rule, that all employees take their crib breaks during overtime periods. To ensure that this practice occurs, all employees returning to the depot/yard will be deemed to have taken a crib break, unless authorised otherwise by an appropriate officer of the company. It is agreed crib breaks have been paid for and recognised at their effective hourly rate. 31. Total Quality Management/Csi The parties agree to embrace the principles of Total Quality Management to everyday working life. The parties commit to participating in any productivity improvement initiatives that are introduced from time to time, i.e., quality improvement teams, continuous service improvement teams. 32. Spread of Hours The parties agree that the current starting times applying to this site reflect the agreed position of the parties and, where those times are contrary to the award spread of hours, the starting time shall be deemed to be the commencement of the spread of hours. 33. Special Commitment The union and the company, with employees, agrees that the effective hourly rate established will not be used as a precedent or pursued at other Mayne Nickless sites and recognises that the circumstances at Pepsico (Wetherill Park) are peculiar and isolated to this site only. No double dipping will occur as part of establishing an effective hourly rate. PART B MONETARY RATES Adult Basic Wage: $121.40 per week Table 1 - Wages Grade/Classification Base Rate Per Week $ 446.70 462.30 473.10 482.50 506.80 512.90 531.40 569.10 Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8 Casual Rate, inclusive of 15 per cent loading: Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8 513.70 531.60 544.10 544.90 582.80 589.80 611.10 654.50 NOTE: Disability component to be calculated on EBA rate exclusive of 15 per cent loading and added to the rate. APPENDIX A Pepsico Drivers Effective Hourly Rate Section: (1) Preamble - It is agreed between the parties that the routes will be kept in a viable state in terms of ensuring efficiencies and minimising costs as part of providing a return to the company. As part of configuring appropriate routes and drops, the company will avoid routes (where possible) in excess of 13 tonnes for an individual driver on single day routes (excluding country routes), 12½ tonne or more to be deemed a 12 metre load or by agreement. Under 12½ tonne to be carried out on either 10 metre or 8 metre vehicles. The objective of having an "effective hourly rate" is to provide an incentive/ inducement to work and to conduct their work efficiently and properly. Drivers will work flexibly with vehicles/equipment and be available for various types of work rosters and start times, in accordance with this award. (2) Remuneration (i) Drivers will be remunerated according to the appropriate shift which is arranged, using route times. (ii) The effective hourly rate agreed to be paid on night routes to an employee will be $21.65 per hour and will be paid from the first full pay period on and from 12 December 1996. Further, this effective hourly rate will not allow the double dipping of wages. (iii) This effective hourly rate is inclusive of the current base rate/overtime/crib breaks/all allowances (excluding overnight stays)/weekend premiums/shift premiums (where applicable). (iv) Further, this all-up hourly rate was established to compensate for the irregular start times, manual unloading circumstances, unusual working conditions, etc. (v) (a) The effective hourly rate will be paid on an hour per hour basis for actual work allocated/rostered which may be greater than eight ordinary hours in a route and may be averaged over 152 ordinary hours in a four-week period. (b) Agreed route times will be the only basis for all hourly rate calculations, including issues of truck breakdowns or store lockouts. Where a breakdown or store lockout is a factor, then excess time which occurs beyond the normal route time configuration will be remunerated at the effective hourly rate for drivers. NOTE: The onus of proof will be on the employee to substantiate such matters to the satisfaction of the employer. (c) As part of this effective hourly rate containing various shift/weekend and other general elements, the employer can direct employees to work weekends or different routes or start times, as required. NOTE: No further allowances will be arranged as part of receiving an effective hourly rate. (3) Ceiling Guidelines - The maximum truck loads for individual drivers on any given local route (e.g., one night's run) will be organised not to exceed 13 tonnes for single routes, wherever possible. However, on non-security runs, if, within your rostered shift route, you are requested to take out 13 tonne or less, then a paid offsider is not entitled, provided alternative arrangements may be entered into. Example: Drivers may swap routes for a lesser route. Provided further, where in excess of 13 tonnes (in a 12 metre van) is exceeded, a driver may elect whether they have an offsider on the route. NOTE: The ceiling and assistance practices may be reviewed should new truck technology/engineering or the like occur, or if sites are improved through re-design. (4) Leave Entitlements - The current weekly EBA base rate (see clause 9, Wage Rates, of this award) will be used when calculating sick leave, annual leave, long service leave and other sundry leave entitlements. NOTE: The 38-hour week standard will also be the basis for leave calculations. The disability is not applicable to leave entitlements. For public holidays refer to clause 21, Public Holidays, of this award. Annual leave loading will be calculated on the weekly base rate and, by mutual agreement, the annual leave loading may be paid out on and from the anniversary date when a full entitlement to annual leave falls due. The annual leave loading entitled under the award is based on the EBA base rate; provided, where an employee is in receipt of a higher shift loading for the majority of a whole entitlement year, such employee will receive a loading on the basis of whichever is the higher (e.g., 37 per cent). Annual leave loading will not be payable on termination. (5) Superannuation - Statutory/award superannuation payments will only be calculated on the weekly base rate (see clause 9, Wage Rates) plus award shift premium where applicable. (6) Workers' Compensation - Workers' compensation will be paid as per the workers' compensation legislation in New South Wales. (7) Starting Times - Due to the unpredictability of routes and/or the need to complement the customer's needs, the employer may give 12 hours notice to any employee(s) to change or stagger start times for rosters to complement a transport service, provided no notice is required where there is agreement. (8) Review - The new routes and effective hourly rate agreed between the parties will be reviewed monthly for the next three months. NOTE: Agreed route times are inclusive of all breaks. Such agreed routes will be improved on as part of the company's objective to continuously improve routes. The union and employees agree to cooperate with the refining and improving of routes, including re-routes where customer needs dictate. NOTE: The union agrees that the effective hourly rate will not be used as a precedent at other Mayne Nickless sites and recognises the circumstances at Pepsico are peculiar and isolated to this site only. (9) Offsiders - A cube rate of 160 cube per hour will apply with all routes where an offsider is used. This cube rate will be reviewed in similar terms as outlined in section 8, Review, of this appendix. The cube rate of 160 will be used in place of the 106 cube rate when calculating offsider routes. The same methodology will apply to all calculations. Offsiders will be paid as follows: The rate applicable for: An offsider (driver) = their existing effective hourly rate. (10) Re-routes to Day Time - If changes to routes involve significant changes to the majority of routes as a consequence of market circumstances, customer or store requirements, the following will occur: (a) Seven days notice is to be given to employees. (b) A new rate will be applied using the existing methodology (see section 19, Methodology, of this appendix) which may or may not include shift premiums, depending on the circumstances for the new routes. (c) The union and employees will co-operate with any decision and implementation which involve significant re-route changes and the need to establish a new rate. (d) Contrived arrangements will be avoided. NOTE: This section is not intended to apply to a one-off day route which may be organised. (11) Suitable Duties - Suitable duties will be arranged, as applicable, which are in line with workers' compensation legislation in New South Wales. (12) Work Roster - It is anticipated that a roster will be set up on the site to allow for a four-day week per employee and will allow for new rosters to be introduced upon seven days notice. Due to the fact that, on average, each week has only four days of operation per person, the rostered day off (RDO) has been replaced by a more effective system which will provide for the opportunity of a possible day off a week and has been included in the effective hourly rate. (13) Route Times - Each route will be given an agreed time for completion. This time will be the basis of all hourly payments (refer to section 2, Remuneration, for additional details). (14) Driver Responsibilities - As part of this all-up hourly rate, drivers would be required to: maintain the internal appearance of the cabin with cleaning products supplied by the company; manually unload vehicles in different types of conditions; demonstrate a professional/ethical attitude and manner in stores, yard and on the road; adhere to and maintain the company dress standard; provide a service which eliminates complaints and damage to product; maintain temperature log of vehicle temperature readings; fully complete time sheets correctly (which includes alarm code and other information). NOTE: As a customer requirement, employees need to achieve a minimum of: 85 per cent perfect orders 99.85 per cent delivery compliance 90 per cent on-time deliveries (15) Team Structure - As part of achieving the effective hourly rate, it is agreed a team based structure would be introduced in an attempt to improve work flows, lower workers' compensation, store accidents, vehicle accidents and claims. (16) Scheme to Lower Credits - The parties agree to introduce a scheme to lower credits whereby, if a driver's credits exceed an agreed benchmark on any given shift, the employee will be paid only actual hours worked and not route time. (17) Stay Overs - Where a driver works a route which requires an expected stay over, the employer will provide the driver with hotel or motel accommodation and a stay over allowance of $10.00 for such stay over. Provided that, if a hotel or motel is not supplied or not available and the employee has to stay over in their vehicle, then a payment of $24.90 per stay over will be paid. (18) Employees From/To Other Yards - Employees who are requested to work at the Pepsico site from other yards will continue to receive their existing yard rate for up to a period of one month before the "effective hourly rate" would be paid (subject to a review). The disability component only applies at the Pepsico site and drivers who are re-deployed to other yards will revert to the EBA base rate for Mayne Nickless (New South Wales). (19) Methodology - The effective hourly rate comprises the following methodology to arrive at this rate: (1) base rate; (2) shift/weekend premium (where applicable); (3) averaged overtime (with a minimum of 106 cube applying); (4) disability component. NOTE: Where future wage increases occur, the wage increase will be applied to the base rate as part of any uplifting of rates of pay and other components will be added onto the new base rate calculated. (20) Double Despatch - Where a driver is directed to work a double despatch the hourly rate will be based on the EBA base rate applicable (see clause 9, Wage Rates, of this award) plus the disability component and such rate will be calculated at double time for the allocated hours for the double despatch. (21) Sixth and Subsequent Routes -The employer will apply its best endeavours to avoid employees working sixth and subsequent routes in a week. Provided that, where an employee is directed to work a sixth or subsequent route, such employee will be paid for such rostered route an effective hourly rate of $28.08 per hour. Methodology for Rate Base rate plus disability 2 hrs at time and a half + 9.5 hrs at double time = Total for 11.5 hours $14.68 (22) $44.04 $278.92 $322.96 or $28.08/hr No Precedent - It is agreed that no part of this award shall be used as a precedent by either party in any other negotiations or proceedings with the employer, or as a claim/precedent at other sites. APPENDIX B Public Holiday Payments For public holidays actually worked the following methodologies shall apply: 1. Public Holidays and Picnic Day - Public holidays will be paid at the rate of time and a half for actual time worked in addition to the day's pay to which the employee is entitled. Example: First 8 ordinary hours $117.44 2. + for 11.5 hours $253.23 = $32.23 per hour Total of $370.67 or Xmas and Good Friday - Public holidays will be paid at the rate of double time for actual time worked in addition to the day's pay to which the employee is entitled. Example: First 8 ordinary hours $117.44 + for 11.5 hours $337.64 = $39.57 per hour. Total of $455.08 or F. MARKS J. ____________________ Printed by the authority of the Industrial Registrar.