May 31, Jeff Bell General Manager Human Resources The Reject Shop Limited 120 Ling Road Melbourne Airport Vic 3045 BY FACSIMILE:

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1 11B-144.doc JM:COB May 31, 2011 Jeff Bell General Manager Human Resources The Reject Shop Limited 120 Ling Road Melbourne Airport Vic 3045 BY FACSIMILE: Dear Jeff RE: & NOTICE OF REPRESENTATION Log of Claims On behalf of the members of the National Union of Workers Victorian Branch employed by your company, we serve the attached log of claims which we seek to have included in an enterprise agreement pursuant to section 172 of the Fair Work Act 2009 (Cth) ( the Act ). Please respond to this log of claims within seven days. Notice of Representation Please note, under section 173 of the Act an employer must notify all employees who will be covered by a proposed Agreement of their right to be represented in negotiations by a bargaining representative. For your convenience, we have attached a Notice of Employee Representational Rights which accords with section 174 and regulation 2.05 of the Act. This notice should be displayed in a conspicuous location at the workplace that is known by and readily accessible to employees. Please contact Heath Lamaro on should you have any further enquiries. Yours faithfully ESMOND CURNOW ASSISTANT BRANCH SECRETARY cc. NUW Delegates

2 The Reject Shop Limited 1. That the current Agreement forms the basis of the new Agreement (i.e. current terms and conditions of employment continue subject to this log of claims and any relevant legislation). 2. That the new Agreement operate for a period of 3 years from 1 June That the Agreement includes a wage increase of 7% for each year of the Agreement. All wage increases will also be payable on all allowances payable at the site. 4. That the parties negotiate a flexibility clause to be included in the Agreement. 5. That the redundancy clause (clause 16) be renegotiated That the selection of employees to take redundancies be on the basis of: (1) Volunteers first. (2) If there are more volunteers than there are redundancy packages, those with the most service be selected. (3) If there are insufficient volunteers, TRS shall select those with the shortest period of service. That clause 16.8 Alternative Employment be removed. That in regard to clause Transmission of Business, an employee who was an employee of the transmitter (TRS) be given the option to either remain as an employee of the transmittee or to take a redundancy package. That the Redundancy Severance Pay be "Six weeks pay for each year of service, or pro rata payment including pro rata payment for each completed month of service, uncapped, plus an additional eight weeks of severence pay for employees over the age of 45 years. 6. That, should the new Agreement not be finalised by the nominal expiry date of the current Agreement, wage increases will be backdated to that nominal expiry date. 7. That the proportion of Casual, Limited Tenure and Permanent Part Time employees shall not exceed 25% unless exceptional circumstances warrant the parties to review the preclusion. "Any changes to the proportion shall be negotiated and agreed by the parties". 11B-144 2

3 8. That the Employment Category for Limited Tenure Employees be "The company may employ Limited Tenure Employees on the same conditions as permanent warehouse employees, pro rata. Limited Tenure Employees will only be used to supplement the usual workforce to meet The Reject Shop's seasonal and excess workload and will be employed for a minimum period of twelve weeks. This may be extended for a further period of twelve weeks. Following this 24 week period, the Limited Tenure employee must be provided with a Permanent position of employment if they are to remain employed at The Reject Shop. Limited Tenure employees will accrue Annual Leave, RDOs and ADOs during the term of their employment, however such leave is not to be accessed during the term of employment." 9. That the Annual Leave clause be renegotiated Employees be allowed 8 weeks accrual of Annual Leave before being forced to take leave. That Annual leave be increased to 5 weeks per year. That approval or rejection of application for Annual Leave and ADOs be provided within 48 hours (2 working days) of such application being lodged. That a 12 month Annual Leave/ADO availability notice be on display in a suitable location downstairs and that such notice be updated at least weekly. That shift loading be included on Annual Leave in addition to Leave Loading. That clause referring to leave not being taken at Christmas and Easter be removed. That a Yearly Leave planner be displayed in an appropriate, accessible place and that it be updated weekly. 10. That the wording of clause 30.1 be revised to be "A Distribution Centre employee shall be entitled to leave without loss of pay for a period not exceeding the number of hours worked by the employee in three ordinary days' work in the event that a member of the employee's immediate family or a member of the employee's household: contracts or develops a personal illness or sustains a personal injury that poses a serious threat to his or her life, or dies. Immediate family is a spouse, defacto partner (including same sex partner), child, parent, grandparent, grandchild or sibling of the employee or the employee's spouse/partner." 11. That work performed on Public Holidays shall be at the rate of triple time or double time and time off in lieu for all hours worked. 12. That company provide Income Protection Insurance 11B-144 3

4 13. That all overtime be paid at the rate of double time unless a higher penalty rate is prescribed herein. 14. That rest breaks be increase by 5 minutes each to allow walking time from work area to lunchroom. 15. That any overtime worked on an afternoon or night shift will be paid on the base hourly rate plus the appropriate shift loading. 16. That the system of accruing and using RDOs and ADOs be renegotiated. That the 12 month RDO roster run for the financial year and be displayed at least 4 weeks prior to it's commencement. Flexibility with Xmas and NYE early finish That RDOs are not to be rostered on Public Holidays. That 12 days to be banked and taken at a time suitable to both the employee and the employer (ADO). 12 days to be taken during the year as determined by Distribution Centre management (RDO)(those not wanting to use the RDO for Nov and Dec may bank them as an ADO) That " A Distribution Centre employee who volunteers to work on an RDO shall be paid at the rate of double time in addition to having the hours of their RDO banked for future use. 17. That there will be an increase in Afternoon Shift Penalty to 22% or include meal allowance 18. That all employees who are servicing the container area, even if not working inside the container, shall be entitled to Container Allowance 19. That Superannuation 9% > 12% phased in over next 5 years 20. That ALL Sat & Sun work to be paid at appropriate rates of pay, not at single time. 21. That the classification structure be renegotiated Promotion to higher level after 10 yr service (G3), after 15 yrs (G4) That new classifications be introduced for Storeworker Grade 1 (for first 3 months) and Forklift Driver Grade 2A Renegotiate G3 classification work details 22. That this agreement be a national agreement. 11B-144 4

5 23. That clause 29.1 Personal Leave be renegotiated Those who work 9 hour day should be paid 9 hours Personal Leave Increase single days with no cert to 10 That "During any subsequent year of service - 96 hours of. An empoloyee may also access any Personal Leave that has accrued in previous years without incurring penalty." 24. That an agreed disciplinary procedure be inserted in the Agreement. 25. That the company provide Ambulance cover for all employees. 11B-144 5

6 NOTICE OF EMPLOYEE REPRESENTATIONAL RIGHTS The Reject Shop Limited gives notice that it is bargaining in relation to an enterprise agreement The Reject Shop Limited & National Union of Workers Enterprise Agreement which is proposed to cover employees that are storage, service workers. What is an enterprise agreement? An enterprise agreement is an agreement between an employer and its employees that will be covered by the agreement that sets the wages and conditions of those employees for a period of up to 4 years. To come into operation, the agreement must be supported by a majority of the employees who cast a vote to approve the agreement and it must be approved by an independent authority, Fair Work Australia. If you are an employee who would be covered by the proposed agreement: You have the right to appoint a bargaining representative to represent you in bargaining for the agreement or in a matter before Fair Work Australia about bargaining for the agreement. You can do this by notifying the person in writing that you appoint that person as your bargaining representative. You can also appoint yourself as a bargaining representative. In either case you must give a copy of the appointment to your employer. If you are a member of a union that is entitled to represent your industrial interests in relation to the work to be performed under the agreement, your union will be your bargaining representative for the agreement unless you appoint another person as your representative or you revoke the union s status as your representative. If you are an employee covered by an individual agreement: If you are currently covered by an Australian Workplace Agreement (AWA), individual transitional employment agreement (ITEA) or a preserved individual State agreement, you may appoint a bargaining representative for the enterprise agreement if: the nominal expiry date of your existing agreement has passed; or a conditional termination of your existing agreement has been made (this is an agreement made between you and your employer providing that if the enterprise agreement is approved, it will apply to you and your individual agreement will terminate). Questions? If you have any questions about this notice or about enterprise bargaining, please speak to either your employer, bargaining representative, go to or contact the Fair Work Australia Infoline on