RTBU-PacNat Member's EBA 2006 Update Newsflash! 62

Significant Developments for Enterprise Agreement Campaign:

In Newsflash 61 the RTBU detailed the latest proposals from Pacific National regarding a new Agreement for members. We reported that whilst the company had provided some detail of their proposals, the RTBU would not be in a position to respond to those proposals without a conference of delegates taking place. Since Newsflash 61 there have been some significant developments, which are detailed below.

Background Information:

Following the announcement by Pacific National of the appointment of a new C.E.O., Don Telford, the RTBU immediately sought a meeting in order to progress the negotiations for a new Agreement. Subsequently, there were a number of meetings with Don Telford and senior Pacific National managers. Pacific National expressed that they had a desire to reach agreement with the RTBU regarding a new Agreement. In those meetings, the company strongly stated their preference for multiple Business Division Agreements.

The RTBU consulted with delegates through national telephone hook ups. Whilst recognising the prospect of finally moving forward with this campaign, the delegates articulated their concerns about going down the path of multiple Agreements. The obvious issue of dividing members was the most prominent. In the interest of continuing to seek a way forward, the RTBU sought, and gained endorsement from the delegates to hold further discussions with the company about the proposal of multiple Agreements, and raising issues of concern.

In subsequent meetings with the company the RTBU sought a number of protections for members if there was to be an agreement to multiple Business Division Agreements. Those protections included common clauses to apply to all Agreements, common 3 year term for all Agreements, common expiry date for all Agreements, common base wage increase for all Agreements.

Pacific National's Original Proposal:

1. Multiple Business Division Agreements.
2. Agreed common clauses to apply to all Agreements.
3. All Agreements to be finalised by 30 September, 2006.
4. 4% wage increase, backdated to 30 October, 2005.
5. Point 4 above subject to the RTBU agreeing to points 1, 2 and 3.
6. 3 year term for all Agreements.
7. Same expiry date for all Agreements
8. Business Division Agreements finalised by 30 September, 2006 would have new negotiated wage increase back paid to July, 1 2006.
9. Business Division Agreements not finalised by 30 September, 2006 would be reviewed and may not have been entitled to back pay to 1 July, 2006.

Upon the proposal from the company, the RTBU informed the company that no agreement could or would be reached without the company agreeing to support a conference of delegates. The RTBU had informed Pacific National that the delegate conference was a critical step of the process of considering their proposals. The delegate conference would have to include delegates representing all classifications and Business Divisions. The RTBU insisted Pacific National support the delegate conference. Following discussions about the details of the delegate conference, the parties agreed to 16 delegates attending the conference.

The purpose of the conference was for the company to put their proposals to the delegates, including the reasoning behind their proposals. The conference would also provide the forum for delegates to question the company's representatives about various aspects of the proposals. The RTBU has continuously made it clear to the company that the outcome of the delegate conference would determine the next steps for the RTBU.

Delegate Conference:

The delegate conference took place on Friday 28th July at the RTBU National Office in Sydney. The conference commenced with the RTBU giving the delegates an overview of the proposal the company had provided. The delegates had come to the conference already armed with a number of questions for the company's representatives, but also with an open mind to the company's proposals.

Pacific National senior management representatives, including the new CEO, Don Telford, then attended the conference for approximately three hours. During that time various Business Division managers gave presentations of their respective Divisions. While those presentations were interesting in some respects, the most important part of the company's presentation was that given by the C.E.O. Don Telford.

The delegates attending the conference were not shy about confronting the C.E.O. with the real and substantial issues and concerns about the past conduct of the company throughout the negotiations which resulted in mistrust on both sides. The delegates also articulated their concerns about going down the path of separate Business Division Agreements. The biggest concern being the imposition of a condition of the Agreements being finalised by 30 September tied to the new wage increases and back pay.

The discussions between the delegates at the conference and the company's representatives were very frank and open and honest on both sides. In responding to the issues and concerns raised by the delegates the Pacific National C.E.O. made a number of notable comments. Some of those comments are quoted below for your information:

• I want a culture of mutual trust between us, our employees and the union.
• I like to talk to the people who work for me.
• I don't want to change what works.
• I want to achieve outcomes without forced redundancies.
• The state based management structure does not work and will be addressed.
• Multi-Sector Working is off the table.
• I want managers to be accountable at an enterprise level.
• We are not about exploiting workers.

Delegates particularly noted the comment about "trust". It was made clear to the company that the history of this campaign has done nothing to foster a culture of trust between the parties.

The delegates raised their concern about being tied to the 30 September, 2006 deadline in separate Business Division Agreements. The company would simply be able to seek outrageous claims for particular Business Divisions, thereby preventing any agreement being reached. The C.E.O stated the company has no intention of seeking extreme trade offs and is intent on reaching agreement before the deadline.

Following those concerns being raised, the company representatives requested a short break to have a discussion amongst themselves. Upon their return, the C.E.O made a revised offer which he said he was putting to the delegates as a show of good faith in attempting to regain their trust. The revised proposal is detailed below.

Revised Pacific National Proposal:

The Pacific National proposal, as put to the delegate conference is detailed below:

1. 4% wage increase applicable from 30 October 2005, ongoing, to be paid immediately if there is agreement to enter into seven separate Business Division negotiations.
2. Common clauses to apply to all Agreements.
3. 3 year term for all Agreements.
4. Same expiry date for all Agreements
5. The parties to negotiate seven Agreements between now and 30 September 2006.
6. Common base wage increases for all Agreements.
7. Pacific National will pay to bring the participants back together on or around 30 September, 2006.
8. If there are issues preventing agreement to any or all of the seven negotiations, the Pacific National C.E.O. will attend the 30 September meeting in attempt to address the issues.
9. If it becomes obvious there is no possibility of reaching agreement, the RTBU will be free to make a decision whether to sign off on the agreed negotiations or to take another path.

Whilst the proposals seem similar, the most significant changes are points 8 and 9. Effectively these changes mean that on 30 September, 2006 the RTBU and its delegates will be able to make an informed decision whether or not all or none of the Agreements will be agreed. These changes ensure the RTBU and its members move from being in a high risk scenario to a very low risk. The revised proposal also puts pressure on the company to prevent them from making outrageous claims in the negotiations which may have the effect of stalling the negotiations.

RTBU to Recommend the Proposal:

It would be fair to say the delegates attending the conference, did so with a certain amount of scepticism and mistrust. Many of them came to the conference with instructions not to accept separate Business Division Agreements. However, following the debates between the delegates and the company, and in light of the revised offer from the company, which includes securing an immediate 4% wage increase and back pay, the delegates attending the conference unanimously voted to support the proposal. It should be noted that the immediate 4% with back pay offer was made because the C.E.O recognised that the trust was not there. The delegates attending the conference have expressed that they see this as the first display of someone in PN actually wanting to resolve the EA issue.

The RTBU will conduct a telephone hook up tomorrow of delegates nationwide, including those who were unable to attend the conference. The intent of the hook up will be to explain the proposal in greater detail (which is easier to do verbally, rather than in a Newsletter) and seek their endorsement for the revised proposal. Members are encouraged to speak to their local delegate before and after the phone hook up in order to remain up to date with all of the relevant information.

The RTBU believes this represents the most significant steps forward since the old regime of Pacific National walked away from negotiations late last year. We now have an opportunity to secure a 4% wage increase, back paid to 30 October 2005. In addition, we have an opportunity to negotiate new Agreements in good faith with the prospect of further wage increases and no erosion of current conditions. We have the security of the knowledge that if the proposal fails, members will not be prevented from reassessing the position of their union if necessary.

Further Information:

Members will continue to be kept informed of any significant developments through future editions of your Newsflashes. For further information on issues regarding the Enterprise Agreement negotiations please contact your local RTBU delegate, your respective RTBU State Branch or the National Office.

Newsflash!@Home:

If you would like to receive future EBA Newsflashes to your personal home email please email Greg Harvey at gharvey@rtbu-nat.asn.au with your name, your location, your classification and your email address and you will be added to the email list.

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