Prt Waratah Cal Services Enterprise Agreement Negtiatins PWCS Operatins Prt Waratah Cal Services, lcated in the prt f Newcastle, the gateway t mre than 30 mines thrughut the Hunter Valley, perates ne f the wrld s largest cal handling peratins, between the Kragang and Carringtn terminals, exprting t custmers arund the wrld. PWCS cntinues t break financial recrds. In 2009 PWCS net prfit f the cnslidated entity was $60.2 millin after incme tax, which almst dubled in 2010 t $107.9 millin and increased t $114.2 millin in 2012. PWCS Prfit ($ Millin) 107.9 114.2 60.2 PWCS PROFIT 2009 2010 2011 PWCS tnnages have increased every year since 2006. PWCS Tnnage (Millin) 79.8 84.8 91.4 92.8 95.1 97.8 105.9 2006 2007 2008 2009 2010 2011 2012 Exprt Tnnes (Millin)
PWCS Ownership PWCS is an unlisted public cmpany wned by the Hunter Valley Cal Industry (70%) and Japanese Cal Custmers (30%). PWCS Effective Ownership: Cal & Allied 30.0% (which is what Ri trades as in NSW) Japanese Imprters 29.6% Blmfield Grup 3.5% Newcastle Cal Shippers 36.9% Newcastle Cal Shippers Effective Xstrata Cal 37.1% 13.7% Cal & Allied 22.7% 8.3% Angl Cal 20.0% 7.4% PWCS 9.0% 3.3% Blmfield Grup 2.8% 1.0% BHP Billitn 1.7% 0.6% Other 6.7% 2.5% Bard f Directrs Newcastle Cal Shippers Blmfield Grup 4 Cal & Allied 3 (Including independent Chairman) Japanese Trading, Pwer and Cement 3 There is a ttal f 10. Negtiatins Members f the Single Bargaining Unit SBU representing the 5 unins cmmenced negtiating n the new enterprise agreement n 1 August 2012 and have since held in excess f 50 meetings. The current 2009 Enterprise Agreement has a nminal expiry date f 6 Octber 2012. The SBU believe the apprach t negtiatins by PWCS seems idelgical with n real reasn fr change r cst saving. The SBU, n numerus ccasins have questined PWCS n the benefits f particular changes and the standard respnse is business flexibility. Emplyees have cntinued t evlve with PWCS t ensure recrds cntinue t be brken, becming ne f the largest cal handling facilities hasn t happened withut flexibility and change by emplyees. The SBU and emplyees have always wrked tgether t achieve change and flexibility, hwever PWCS current upper management is driving what is perceived as a philsphy f dictatin. In recent times PWCS upper management has either been replaced with Ri Tint persnnel frm ther Ri Tint mines & rganisatins r transferred emplyment frm PWCS t Ri Tint. Key Lg f Claims - SBU The cre 6 SBU lg f claim items are: Superannuatin; Wage increase;
Annual leave increase; Changes t lcal event public hliday; Accident/death/illness and incme prtectin & Changes t redundancy payments. Key Lg f Claims - PWCS PWCS unin busting apprach started n day ne, when PWCS penly presented that it was their intentin t remve all references t the unins frm the new enterprise agreement. PWCS als set its majr negtiatin items: Dispute reslutin Mdify the clause t reduce the ptential disruptin t the business. Cntractrs Mdify cntractr ntificatin prcess and cntent t reduce cnstraints n the business. Classificatins & Skills Simplify current classificatin level descriptins & Prgressin thrugh levels nt driven by skills acquisitin. Variatins t rsters Ability t intrduce new rsters during the term f the agreement (with cnsultatin nly) Remuneratin Annualised remuneratin mdel Individual flexibility arrangements. Braden the flexibility term t deal with any term under the Enterprise Agreement. Dispute Reslutin (DSP) Part f the SBU prpsal was t increase the matters cvered by the dispute reslutin prcedure, t cver cmpany plicies. PWCS has in excess f 400 cmpany plicies, prcedures and safety standards. PWCS initially prpsed 3 majr changes t the dispute reslutin clause: 1. Under the current agreement emplyees have the ability t raise a dispute fr any matter related specifically t the perfrmance f wrk. Under PWCS initial prpsal, emplyees culd nly raise a dispute abut a matter arising under the Agreement r in relatin t the NES. Thus, taking away emplyees right t dispute matters such as; alchl & ther drugs plicy, disciplinary actin against an emplyee, unsafe wrk practices / methds etc.; 2. PWCS sught t remve the arbitratin pwers cnferred n Fair Wrk Australia; & 3. PWCS prpsed t remve the status qu frm the Agreement and prpsed emplyees, wrk as directed whilst a dispute was being reslved. The SBU has maintained its psitin frm the cmmencement f negtiatins; emplyees need t have the ability t questin decisins made by PWCS, have status qu apply t such matters until the issue is reslved and in the event the an issue cannt be settled at the wrkplace level either party has the ability t prgress the matter t FWA fr cnciliatin and if required arbitratin. PWCS current DSP psitin is: Matters that can be placed in dispute:
Matters under the Enterprise agreement (Cnciliatin & Arbitratin available thrugh FWA) Matters under the NES (Cnciliatin & Arbitratin available thrugh FWA) Disciplinary matters (Cnciliatin & Arbitratin available thrugh FWA) Other matters abut the perfrmance at wrk (Internal dispute reslutin nly) Status qu nly applies t majr wrk practice changes & where there is a threat t peple s health and safety. The SBU have cncerns with the remval f the ability t seek an independent persn (FWA) t assist in reslving an issue related t ther matters abut the perfrmance at wrk and the remval f status qu a prvisin which during the current agreement has nt caused any disruptin t the business. The ther matters abut the perfrmance at wrk wuld als give emplyees the ability t questin any cmpany plicy r prcedure that results in the unfair treatment and/r discipline f an emplyee. Cntractrs The SBU cnducted a member survey prir t the cmmencement f negtiatins t gauge what members valued mst, and what utcmes members were seeking frm negtiatins. Out f the survey members raised jb security as a key area f cncern and the SBU sees that the cntractr agreement clause is an integral part t jb security. The current agreement states the purpse f PWCS using cntractrs is t supplement the wrk being cnducted by current PWCS emplyees and prvide specialist skills t meet business requirements. PWCS prpsal is t basically have free range n the use f cntactrs by nly making available infrmatin regarding the use f cntractrs as early as pssible after the decisin is made. The SBU psitin n cntractrs is t mdify the clause t include the purpse f using cntractrs is nt t replace, displace r cause a reductin f PWCS emplyees t the extent that redundancies wuld ccur. Hwever PWCS reject this prpsal stating The SBU s prpsed wrding seeks t have PWCS lck in hw it may run its business and the purpses fr which cntractrs maybe engaged. PWCS fcus twards using cntractrs in recent times has increased and the cntractr clause remains a cncern t SBU t ensure ur members maintain jb security. Variatin t rsters Frm the cmmencement f negtiatins PWCS has had an agenda t reduce the ability fr emplyees t raise questins, and rster variatins was n different. PWCS initially prpsed that new rsters culd be intrduced withut agreement and by cnsultatin nly. The SBUs psitin has always been, pen dr plicy, if a new rster is required, let s sit dwn, wrk tgether and get a rster that suits the needs f bth the business and emplyees. PWCS current psitin is rsters by agreement, hwever have mdified the rdinary hurs clause, in what the SBU believes is an effrt t wrk arund creating rsters by agreement. Individual Flexibility Arrangements The current PWCS agreement flexibility term applies t; arrangements abut when wrk is perfrmed. PWCS initial negtiatin psitin was that a flexible arrangement culd apply t any term under the agreement, hwever thrugh negtiatin, status qu remains n the flexibility term.
PWCS package prpsals Thrughut negtiatins PWCS has put a number f packages t emplyees: PWCS riginal package Octber 2012 Dispute Reslutin Status Qu remved; Only matters under the agreement r the NES culd be disputed; SBU chairpersn and secretary part f dispute prcess. Remuneratin Leave paid as at wrk; Base salary increases f 5% per year. Rsters withut agreement 4 weeks cnsultatins; Refreshment breaks remved; Remval f vertime systems and cancellatin f vertime payments; Trade unin training 80 days; PWCS alternate package - December 2012 (Key changes frm package abve) DSP Chairpersn & secretary remved frm DSP prcess; Status qu applies t majr change nly; Remuneratin Leave paid as at wrk remved Flexibility term applied t all matters in the agreement. Unpaid sick leave nt prvided Trade unin training 40 Days PWCS current ffer April 2013 PWCS has put this psitin t the SBU, delivered presentatins t the members and is seeking endrsement n the package frm the SBU by the 8 May, with a successful vte t take place n the 31 May 2013. DSP Matters under the EA, NES and disciplinary matters culd be disputed and taken t FWA fr cnciliatin and arbitratin Matters abut the perfrmance f wrk hwever, wuld be handled via the internal dispute reslutin prcess, allwing the dispute t prceed t General Manager Rle within the business. Status qu applies t majr change nly Remuneratin Base salary increases f 3.25% per year Freezing f shift premiums Changes t shift relief payments Unpaid sick leave ffered at abslute discretin under PWCS plicy. Ordinary hurs f wrk remains an issue.
Prtected actin ballt The SBU n behalf f the members applied fr a prtected actin ballt which was heard n 8 April 2013. The vtes were cunted n 2 May 2013 with members vting verwhelmingly t participate in prtected actin. The SBU will cntinue t try and pursue a negtiated utcme that prvides jb security and the necessary prtectins t emplyees. Fr the purpse f advancing claims emplyees were asked t authrise 10 items f prtected actin.