Building our future together

Supporting our Fair Work Agreement 1

Australia Post Fair Work Agreement – Manager Briefing Presentation

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Managers briefingObjectives

• Understand the Agreement

• Understand the approval process for the Agreement

• Be prepared to present to staff on the Agreement

Supporting materials available for Managers on the Managers Portal:

http://share/team/cpa/employeecommunications/managersportal/Pages/FairWorkAgreement.aspx

• A copy of the Agreement

• A copy of this presentation with speaking notes

• Targeted presentation to be used for staff briefings

• Managers summary for staff briefings

• Staff guide to the Australia Post Fair Work Agreement

• Contacts for further information

Introduction to the Australia Post Fair Work Agreement

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Managing Director’s message

“The Australia Post Fair Work Agreement builds on the

success of past enterprise agreements by guaranteeing regular pay increases and protecting your employment terms and conditions.

When you consider the overall package of this Fair Work Agreement, it is a well balanced agreement that provides security for our people and stability for our corporation – as we adapt to a very unstable business environment.”

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Background

Expiry of EBA6

• EBA6 expired on 31 December 2006

• The terms of EBA6 remain in force until it is replaced by a new agreement

Introduction of Fair Work Act

• The Fair Work Act provides the new legal framework for the Australia Post Fair Work Agreement

Memorandum of Understanding

• Australia Post signed a Memorandum of Understanding in April 2010 with the CEPU and CPSU

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• Australia Post, and the CEPU and CPSU reached an in-principle agreement on the content of the Australia Post Fair Work Agreement on 27 July 2010

Finalising the Australia Post Fair Work Agreement: Ed Husic (National President and Divisional Secretary of the CEPU), Ahmed Fahour (Australia Post Managing Director and Chief Executive Officer), Nadine Flood (National Secretary of the CPSU)

Background

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Australia Post Fair Work Agreement

• A comprehensive agreement of employment terms and conditions for award level staff

• The first Australia Post agreement made under the new Fair Work Act 2009 (Cth)

• Provides business stability and a unified approach between staff, unions and management

• By voting ‘Yes’ staff are supporting Australia Post to meet the significant business challenges we are currently facing

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Where have the clauses come from?

Operations Award 1999

General Conditions of

Employment Award 1999

Technical Award 1999

Home Based Work

Agreement 1995 Interstate Linehaul

Agreement

Administrative Officer L6

Salary & Employment

Conditions Agreement

Sprintpak Division

Agreement 1995

Queensland Linehaul

Agreement 1997

Mail & Networks Queensland

Agreements 1996

Extension of Penalty Rates

Eligibility Agreements 1993-1995

Redundancy/ Redeployment/

Retraining Agreement 1993

Administrative/

Professional Award 1999

Australia Post

Fair Work Agreement

NEW clauses

EBA6

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Contacts

If you have any questions about the Agreement, more information is available from:

• Your Manager

• Email: FWA@auspost.com.au

• FWA Hotline: 1800 106 245

• Fair Work Agreement site on POSTnet

• Website: www.auspost.com.au/APFWA

• Your local P&C Advisers and P&C Employee Relations

• Your local union contact

Approval process for the Australia Post Fair Work Agreement

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Step 1 Staff receive Agreement From 8 September

Step 2 Staff briefings September

Step 3 AEC sends ballot papers to staff postal addresses 20 September*

Step 4 Ballot opens 22 September

Step 5 Ballot closes 6 October

Step 6 AEC counts votes and announces outcome of ballot 11 October*

Step 7 Agreement lodged with Fair Work Australia After Step 6

Step 8 Fair Work Australia approves the Agreement October*

Step 9 Agreement commences legally 7 days after Step 8

*approx dates and may alter based on AEC and Fair Work Australia timeframes

Agreement approval process

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Timetable for Agreement rollout

National launch

2 September

Employee ballot

22 September – 6 October

Workplace briefings

From 2 September

Australia Post business context

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Our business environment

• Electronic substitution is significantly affecting the profitability of Australia Post

• Revenue has significantly declined from our reserved services

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Our business environment

• The viability of our retail network is also under pressure

• Customer numbers in retail stores are declining

Customer numbers (m)1

300

200

020102002

250

150

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Our business context

• A balanced Agreement to provide security for our people and stability for our corporation as we adapt to an unstable business environment

• The Agreement takes into account the needs of our employees, the unions, Australia Post’s business objectives and the current financial state of the business

Key features of the Australia Post Fair Work Agreement

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Key messages

Pay increases of up to 10%Pay increases of up to 10%

• Further pay increases of up to 10% over three years

• Includes bonus pay increases based on achieving service performance and mail volume targets

Job security – RRR retainedJob security – RRR retained

• RRR Agreement principles and benefits are retained

• Renewed focus on opportunities for retraining

Stability for staff & customersStability for staff & customers

• The Agreement provides certainty for staff by locking in their entitlements

• The Agreement provides stability for customers which is essential in the current business environment

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Pay benefits • Pay benefits build on the pay

increases provided by Australia Post since the expiry of EBA6

• Further pay increases of up to 10% over three years, including bonus pay increases based on achieving service performance and mail volume targets

• Bonus percentage pay increases which continue to benefit staff and count towards superannuation

Forecast Source: Access Economics

*$200.00 per fortnight is the minimum difference in pay between just receiving CPI increases and receiving the guaranteed Australia Post Fair Work Agreement pay increases, excluding bonus pay increases. The above fortnightly amounts are calculated on maximum salary rates as at July 2009 for base level Mail Officers, Postal Delivery Officers, Postal Transport Officers and Parcel Post Officers.

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Other pay related mattersShift penalties

• Shift penalties are protected with any change to shifts requiring consultation

Cashing out of excess annual leave

• Staff with more than six weeks of accrued annual leave (or four weeks for shift workers) can “cash out” their excess entitlement once a year

Abolishing junior rates

• Junior rates of pay abolished for permanent employees

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Job security – RRR retained

• The Agreement retains the processes and benefits of the RRR (Retraining, Redeployment and Redundancy) Agreement

• Our priority under the RRR Agreement is to retrain our people and redeploy them to growth areas of the business

• A $20 million Future Skills Investment will support training and development programs in growth areas such as parcels, retail, sales and digital services

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Health and wellbeing • Paid maternity leave increases from 13 to 14 weeks

• Existing entitlements locked in:

• 15 days accrued personal leave• four weeks annual leave and five weeks for seven day shift workers• 17.5 per cent annual leave loading

• The right to request flexible working arrangements when caring for a child

• Negotiating a new OH&S agreement with the unions

• A new process (WorkReady) for workers injured in the workplace

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Dispute resolution processThe Agreement provides for an escalating dispute resolution process for disputes in relation to the terms of the Agreement or the National Employment Standards:

Step 1 Dispute discussed at local level with immediate manager

Step 2 Matter referred to more senior levels of management and union

Step 3 Conciliation at Fair Work Australia

Step 4 Recommendations by independent mediator

Step 5 Binding arbitration by Fair Work Australia

Key changes affecting Retail Services

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Retail: Retail Services Transformation AgreementClause 40.1

• Australia Post and the CEPU and CPSU commit to negotiating a new agreement to be called the ‘Retail Services Transformation Agreement’ to determine a range of issues facing Retail Services

• Commitment for parties to begin discussions on RSTA within first 6 months of operation of the agreement

• RSTA to focus on:− Future Network and facility/outlet formats; − Future staffing models and flexibility; − Retail Technology; − Postal Managers, Grade 1-3 - Remuneration Conditions;− Future Conversion Arrangements; − Outlet Performance; − Retail organisation structures and classification systems; − Career paths in retail; and− Training and development

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Retail: Retail outlets Clause 40.2

• Australia Post commitments:

− Outlets to continue to remain as flagships of retail network (40.2.1)− Overall mix of outlets will not change over term of the agreement (40.2.2)− Will continue to apply current Retail Conversion Policy for term of the

agreement – although parties recognise that Australia Post may seek to change this policy during the term of the agreement (40.2.3)

• Where Australia Post seeks to revise current Conversion Policy – a joint review shall be conducted 6 months prior to introducing any changes

• Note – Unions recognise that whilst Australia Post does not intend to make wholesale changes to network mix, in the current climate, future changes remain a necessity, but will be done in a measured & considered way with consultation

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Retail: Retail forumClause 40.3

Australia Post commits to holding a joint retail forum with the Relevant Principal

Unions and Australia Post management to consider new opportunities, work

practices, products, amenities, safety and other issue of mutual interest in the lead

up to the business cycle.

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Retail: Additional commitments Clause 14.14

• Retail shoe allowance increased to $85

Clause 11.8.5

• Agreement removes junior rates of pay for permanent retail employees

Clause 32

• Uniform forums – opportunity for parties to discuss management of uniforms and commitment to use of employee focus groups to assess the suitability and functionality of uniforms

Key changes affecting Postal Services

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Postal: PDO and PTO salary advancementClause 11.9

• Postal Delivery Officers (PDO): PDO’s in Delivery Centres/Facilities on completion of training will move to the 3rd salary point of the PDO range

• PDO’s in Delivery Centres/Facilities currently on the 1st or 2nd salary points will move to the 3rd salary point on commencement of the Agreement. This provision will not apply to private box sorters.

Clause 11.12

Postal Technical Officers- Salary Advancement:• Advancement to the 4th, 5th, 6th and 7th salary points of a Postal Technical Officer Level

4 (PTO4) will be conditional on an employee completing a Cert IV in Electrotechnology (systems electrician) or equivalent.

• There will be scope for accelerated salary advancement to the maximum of the PTO4 range once an employee completes a Diploma of Electrical Engineering.

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Postal: Maximising full-time work - Postal WorkerClause 7.4, 7.5 and 7.6

Australia Post and the unions are committed to looking at ways to maximise full-time opportunities for staff in the face of declining mail volumes and increased sorting capability.

As part of this commitment, Australia Post and the CEPU will work together to develop a new “Postal Worker” classification in order to maximise the availability of full-time positions.

This will look at:

– amalgamation of functions – delivery; hub driver; night sorting;

– annualised hours or other flexible working hours arrangements

– ways to maximise numbers of small packets/parcels being delivered

Australia Post have also retained the current restrictions on use of fixed term and casual employment

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Postal: Transport structureClause 11.2

• Australia Post and the unions agree to finalise and implement the recommendations of the Joint working party which was established to review transports structure under EBA6.

• This will include any changes to work level standards, transport classification structure and grading to hubs and depots.

• These discussions will conclude within 6 months of the commencement of the APFWA

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Postal: Additional commitments Clause 7.9 Consultation Regarding Use of Contractors

• Contractor Consultation - Local, State & National level

Clause 11.1 Development of Work Level Standards • Agreement to develop Work Level Standards where required during term of the

Agreement• Relevant for Postal Worker and Postal Transport classifications

Clause 37 Team Based Work• Application to Sydney Parcel Facility

Clause 38 Technical Maintenance• Australia Post technicians will continue to undertake maintenance of core mail

processing equipment with support of operational staff performing operator care activities as appropriate

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Postal: Allowances and Tea BreaksClause 14.10.5 Overtime Meal Allowance

• Employees currently receiving cash meal allowances will continue to be eligible to receive payments in cash

• Employees who transfer to facility without cash payment of overtime meal allowance will not retain this method of payment

Clause 16.10 Tea Break

• Variation to time of tea breaks can occur after consultation

Clause 19.9 Shift Penalties

• Best endeavours to maintain shift penalty rates in situations of workplace change• No commitment where employee seeks transfer to non-penalty position• Changes leading to impact on penalty rates subject to consultation between senior

management & union

Further commitments

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Letter of commitments

• RRR Outplacement Services

• Union Delegates Charter

• Work Trials

• WorkReady Process

• Additional Hours for Sick Leave Payment for part time staff

• Discipline Process for AURs

• Part-time Dedicated Delivery

In addition to the commitments outlined in the Agreement, Australia Post has made a number of additional commitments to the CEPU and CPSU. The commitments are contained in a letter between the parties and cover the following matters:

• Continuation of financial advice program

• Interstate Linehaul Remuneration

• Linehaul Overload arrangements

• Franchise implementation and information

• Extension of NSW 30% penalty rate eligibility (Transport, Mails and Delivery)

• ECDP penalties

Reference materials

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Reference MaterialsThe Agreement refers to several documents, policies and materials which include:

• Retail Post Conversion Policy• WorkReady process• National Attendance Guidelines• Work Level Standards

Staff must have access to these materials if they wish to consider them prior to voting. The Reference Materials are available in a range of locations: • www.auspost.com.au/APFWA• Fair Work Agreement site on POSTnet• Hardcopies in each workplace

• Principal Determination• Employee selection process• Australia Post Human Resources

Manual Rates of Pay Booklet• Application for review of part time

weekly hours

Understanding the clauses of the Australia Post Fair Work Agreement

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Clause 2:

Application, duration and

scope

• The Agreement covers Australia Post, unions who apply to Fair Work Australia to be covered by the Agreement (including CEPU and CPSU) and employees employed in the classifications listed in Attachment A

• The Agreement comes into effect seven days after approval by Fair Work Australia

• The nominal expiry date of the Agreement is 31 July 2013

Clause 1:

Title

Key elements• The Agreement is called the Australia Post Fair

Work Agreement 2010

Key elements

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Clause 4:

Anti-discrimination

• The parties commit to respect and value the diversity of the workforce and to preventing and eliminating discrimination

Clause 3:

Occupational health and

safety

Key elements• The parties commit to achieving and maintaining

healthy and safe working conditions in Australia Post workplaces

• Consultation on OHS issues with the unions

• Negotiation of a new Australia Post Occupational Health and Safety Agreement with the unions

Key elements

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Clause 5:

Agreement flexibility

Individual flexibility agreements can be made between Australia Post and an individual employee to vary:

•arrangements for when work is performed•overtime rates•penalty rates•allowances•leave loading

Key elements

Clause 6:

Index of facilitative provisions

Key elements• Allows individuals or groups of employees to

agree on how specific provisions of the Agreement should apply at a workplace or to an individual

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Clause 7:

Categories of employees

Key elements• Retains the use of permanent, fixed-term and

casual employees

• Fixed-term employees only to be engaged in particular circumstances and subject to approval processes

• Commitment between Australia Post and the unions to develop a model to maximise full-time work

• Use of relief staff to ensure staff are not subject to unreasonable workloads

• Overall pay and conditions of agency staff will not be less than comparable conditions of Australia Post staff

• Consultation with the unions regarding new proposals using contractors

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Clause 9:

Permanent / fixed-term

employees – conditions of

service

• Conditions of service apply to permanent and fixed-term full-time employees

• Conditions apply on a pro-rata basis for part-time employees

• Part-time employees should be given the same development opportunities as other employees

Clause 8:

Implementation arrangements

Key elements• Australia Post will provide the unions with

relevant statistical information on the use of employment categories across the business

Key elements

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Clause 10:

Casual employees – conditions of

service

Key elements• Casual employees receive a 22.5% loading in lieu

of all paid leave entitlements

• Casual employees receive overtime if daily hours exceed 7 hours 21 minutes

• Casual employees are entitled to the same duty penalties as permanent employees

• RRR Agreement doesn’t apply to casual employees

• Casual employees can legitimately refuse to attend work in circumstances where they have caring responsibilities

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Clause 11:

Salary rates and related matters

Key elements• Employees classified according to Work Level

Standards and Australia Post will develop Work Level Standards with the unions where none exist

• The Transport Structure Review which occurred under EBA6 will be finalised and implemented by Australia Post and the unions

• Employees will be selected in accordance with existing selection procedures

• Junior rates of pay will not apply to permanent employees

• On completion of training, Postal Delivery Officers move to third salary point

• Salary advancement conditions for Postal Technical Officers

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Clause 13:

Supported wage system

• Allows for supported wage arrangements for employees with a disability

Clause 12:

Payment of salaries

Key elements• Employees will be paid fortnightly by electronic

transfer into their bank account

Key elements

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Clause 14:

Allowances

Key elements• Allowances that are currently in use are retained

• The following allowances will be subject to the same percentage increases that apply to salary rates:

• Dirty Cleaning Work• Divide Allowance• First Aid Allowance• Higher Duties Allowance• In-Charge Allowance

(Retail Employees)• Industry Allowance• Miscellaneous

Allowance – Custody of Stock

• Postal Delivery Officer Functional Allowance

• Qualifications Allowance• Special Rates –

Technical Employees• Team Skill Loading• Tonnage Allowance

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Clause 16:

Hours of duty

• Outlines the ordinary hours of work for operational, technical and administrative/professional classifications of employees

• Tea breaks will generally be maintained in accordance with custom and practice, and only varied where operationally required

• Variation to the length of the tea break where it is inconsistent with other workplaces in the same operational stream, is considered a significant change and can only be varied after consulting with staff and unions.

Clause 15:

Deduction from salaries of rent for residence

Key elements• Allows deduction of rent from salary of employee

who lives in an Australia Post building

Key elements

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Clause 17:

Overtime

Key elements• Australia Post may require an employee to work

reasonable additional overtime

• Overtime rates have not changed:

Monday to Friday: 150% for the first 3 hours and 200% thereafter

Public Holidays: 250%

Sundays: 200%

Saturdays (for non-shiftworkers): 150% for the first 3 hours and 200% thereafter

Saturdays (for shiftworkers): 200%

• Employees may agree to have time off in lieu of payment for overtime

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Clause 19:

Shift work

• Retains current shift definitions and penalties

• Clause 19.9: Australia Post recognises that shift penalties are an important part of employees take home pay. Australia Post will through its best endeavours manage workplace change without impacting shift penalties, except when an individual elects to transfer to a non-penalty shift.

• Consultation with unions where workplace change proposed that will affect shift penalties

Clause 18:

Excess travelling time

Key elements• Employees required to travel to duty away from

their head station will be paid for the time spent travelling or on duty, excess to usual hours or travelling to and from home and the head station

Key elements

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Clause 20:

Annual leave

Key elements• Four weeks of annual leave per year for

employees, five weeks for seven day shift workers

• Normal rules regarding taking of annual leave and rostering of annual leave in operational areas continue to apply

• Ability for employees with greater than six weeks of annual leave accrued (four weeks for seven day shift workers) to “cash out” this excess entitlement once a year

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Clause 21:

Personal leave

Key elements• 15 days of personal leave accrues per year which

can be used as sick leave or carer’s leave

• Normal notice and evidence requirements continue to apply

• Restrictions on use of National Attendance Guidelines in an arbitrary or automatic manner

• Australia Post will not direct employees to attend Australia Post nominated doctors for same day medical assessments

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WorkReady Process –Clause 21.13.3

Employee reports possible work related injury

Employee chooses to receive treatment

from Medical Practitioner

Employee and management comply with medical advice provided

Employee receives treatment from own

Doctor

Employee’s own Doctor

completes the WorkReady

Report

YES

NO

Employee receives treatment from their Doctor who completes the

WorkReady Report

Employee is deemed fit to return to work

on suitable duties

YES

Results of medical opinion applied

NO

A State HR Manager may on occasion confidentially seek clarification from a WorkReady Medical Practitioner about the work capacity that an employee’s treating doctor has detailed on a WorkReady Report. If necessary the WorkReady Medical Practitioner may also contact the employee’s doctor to clarify the contents of the WorkReady Report.

AP may seek clarification of an employee’s fitness for duty with a WorkReady Medical Practitioner

under clause 21.12 of AP’s Fair Work Agreement

Employee receives treatment from WorkReady Medical

Practitioner under WorkReady Program

Fitness for duty assessed in accordance with WorkReady Report

Employee accepts

WorkReady Medical

Practitioner’s opinion

YES

NO

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Clause 22:

Compassionate leave

Key elements• Two days of paid compassionate leave where a

member of an employee’s immediate family or household:

- contracts or develops a personal illness that poses a serious threat to his or her life

- sustains a personal injury that poses a serious threat to his or her life

• Three days of paid compassionate leave where a member of an employee’s immediate family or household dies

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Clause 24:

Requests for flexible working arrangements

• A parent of a child under school age or a child under 18 with a disability can request flexible working arrangements to help them care for their child (such as changes in hours of work)

• A request must be in writing and Australia Post must respond to the request in writing

Clause 23:

Parental leave

Key elements• Paid maternity leave extended from 13 weeks to

14 weeks

• 12 months unpaid parental/adoption leave with option to extend for a further 12 months

Key elements

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Clause 25:

Study / Examination

leave

Other leave and flexibility entitlements

Clause 26:

Leave to attend as a witness in industrial

proceedings

Clause 27:

Jury service

Clause 28:

Work / Life

Clause 29:

Public holidays

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Clause 31:

Notice boards

• Unions can use notice boards at the workplace to communicate with employees

Clause 30:

Temporary part-time support

services officers

Key elements• Grandfathering provision for temporary part-time

support services officers who were employed at 27 December 1995 under the Australia Post (Postal Workers) Award 1985 and who elected to remain under the conditions in that award

Key elements

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Clause 32:

Uniforms

Key elements• Introducing a new national uniform forum to

discuss issues relating to the national management of uniforms

• Employee focus groups will be used to assess the suitability and wearability of uniforms

• Review of the current clothing manual during the life of the Agreement in consultation with the unions

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Clause 33:

Employee consultation

Key elements• The parties agree that consultation is important in

maintaining positive working relationships between Australia Post, its employees and the unions

• Consultation with employees, their nominated representatives and the CEPU and CPSU will occur prior to Australia Post making any significant change

• Consultation is “not perfunctory advice on what is about to happen [but needs to provide] the relevant parties with a bona fide opportunity to influence the decision maker.”

• A new consultation framework will apply for state and local level consultation

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Clause 34:

Employment security

Key elements• Renews Australia Post’s commitment to the RRR

Agreement

• Recognises that employment security depends on Australia Post being able to adapt grow and change to sustain a profitable business

• An emphasis on the retraining of staff and redeployment prior to any redundancy occurring.

• Employees and unions will cooperate in retraining in order to facilitate redeployment.

• Employees commit to accepting reasonable offers of retraining and redeployment

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Clause 36:

Employee conduct and

discipline

• Outlines rights of Australia Post in disciplining or dismissing an employee in circumstances including misconduct, wilful neglect of duty, incompetence or inefficiency

• Allows penalty reduction of up to two increments for a period of up to 12 months

Clause 35:

Learning and development

Key elements• Commitment to meeting the ongoing learning and

development needs of employees to ensure a productive and skilled workforce with access to career paths

Key elements

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Clause 38:

Technical maintenance

• Retains commitment to use Australia Post technical staff for the maintenance of core mail processing equipment in the network with support of operational staff performing operator care functions where appropriate

Clause 37:

Team based work

Key elements• Process for roll-out of team based work in Mail

and Parcel Processing

• Eligibility for retention of team skills loading on transfer

Key elements

Clause 39:

Sort/Machine rates

• Managers shall not use sort or machine rates in an unreasonable and unfair manner in the management of employees’ work or performance

Key elements

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Clause 40:

Retail

Key elements• Australia Post and the unions will negotiate a

Retail Services Transformation Agreement during the first six months of the Agreement

• Australia Post corporate outlets will continue to remain as the flagships of its retail network

• Retail Post Conversion Policy will continue to be applied, unless a joint review of the policy is undertaken by Australia Post and the union

• Joint retail forum to be held with Australia Post Management and the union to consider new opportunities, work practices, products and other issues

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Clause 41:

Benefit distribution

Key elements

• Pay benefits build on the pay increases provided by Australia Post since the expiry of EBA6

• Further pay increases of up to 10% over three years, including bonus pay increases based on achieving service performance and mail volume targets

• Bonus percentage pay increases which continue to benefit staff and count towards superannuation

- Half of the bonus pay increases are linked to achieving at least 94 per cent service performance in each state in a financial year

- The other half of the bonus pay increases are subject to the combined total volume of letters and parcels in a financial year either remaining the same or increasing.

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Step 1 Dispute discussed at local level with immediate manager

Step 2 Matter referred to more senior levels of management and union

Step 3 Conciliation at Fair Work Australia

Step 4 Recommendations by independent mediator

Step 5 Binding arbitration by Fair Work Australia

Clause 42:

Dispute resolution

Key elements

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Clause 44:

Role of union delegates

• Australia Post recognises the role unions play in the workplace and the right of union delegates to represent union members at the workplace

Clause 43:

Salary sacrifice

Key elements• Employee may salary sacrifice for the purpose of

superannuation

Key elements

Clause 45:

Payroll deduction of union fees

• Australia Post will continue to deduct union dues for the CEPU and CPSU

Key elements

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Clause 47:

Definitions

• Outline of defined terms used in the Agreement

Clause 46

Negotiation of future

agreement

Key elements• The parties will commence negotiations regarding

the successor to this Agreement by three months prior to the nominal expiry date (31 July 2010)

Key elements