QUEENSLAND INDUSTRIAL RELATIONS COMMISSION

Industrial Relations Act 1999 – s. 156 – certification of an agreement

Goodman Fielder Consumer Foods Transport Employees Certified Agreement - 2006-2009

Matter No. CA/2006/200

Deputy President Swan 03 April 2006

CERTIFICATE This matter coming on for hearing before the Commission on 24 March 2006 the Commission certifies the following written agreement: Goodman Fielder Consumer Foods Transport Employees Certified Agreement - 2006-2009 - CA/2006/200 [as amended]. Made between: Goodman Fielder Consumer Foods Pty Ltd; and Transport Workers' Union of Australia, Union of Employees (Queensland Branch) The agreement was certified by the Commission on 24 March 2006 and shall operate from 24 March 2006 until its nominal expiry on 31 March 2009. This agreement replaces the Goodman Fielder Consumer Foods Transport Employees - Certified Agreement 2004-2006 (CA64 of 2005). By the Commission. Deputy President Swan

GOODMAN FIELDER CONSUMER FOODS TRANSPORT EMPLOYEES' CERTIFIED AGREEMENT 2006 - 2009

APPLICATION FOR CERTIFICATION OF AGREEMENT

THIS AGREEMENT, made under the Industrial Relations Act 1999, this . . . . . . . . . . . . . . . . . . . . . . . . . . .day of . . . . . . . . . . . . . . . . . . . . . . . . . . . .2006 between Goodman Fielder Consumer Foods Ltd . and The Transport Workers' "Union of Australia (Queensland Branch), Union of Employees, witnesses that the parties mutually agree as follows :

ARRANGEMENT

PART 1:

PRELIMINARY

PART4: MISCELLANEOUS

1 .1

Title 1 .2 Application 1 .3

Date and Operation 1 .4

Relationship to Parent Awards and Previous Agreement 1 .5

Renewal of Agreement

PART 2:

ENTERPRISE AGREEMENT

2.1

Objectives of Agreement 2.2

Labour Flexibility (Time, Skill, Safety) 2.3

Work Practices 2.4

Teams Based Work Environment . 2 .6

Packaging Forklift Operators 2.7

Contract Transfer Drivers

PART 3:

WAGES AND CONDITIONS OF EMPLOYMENT

3.1

Classification Structure and Structured Training 3.2

Review of Classification Structure 3.3

Wage Rates and Wage Increases 3.4

Hours of Duty 3.5 Overtime 3.6

Meal Allowance 3.7

Public Holiday 3.8

Redundancy Package 3.9

Sick Leave 3.10

Long Service Leave 3.11

Family Leave 3.12

Bereavement Leave 3.13

Trade Union Training Leave 3.14

Occupational Superannuation 3.15

EA Implementation Team 3 .16

Income Protection Insurance Scheme 3.17 WorkCoverPayments 3.18

Old Agreements

4.1

Dispute Avoidance Procedure 4.2

No Extra Claims

APPENDIX 1 :

WORK PRACTICES APPENDIX 2:

REDUNDANCYPACKAGE APPENDIX 3 :

CLASSIFICATION STRUCTURE - FORMALLY TRAINED

INDUSTRIAL REGISTRAR

2 3 MAR 2006

000000 QUEENSLAND

PART 1:

PRELIMINARY

1.1 Tine

This Agreement supercedes any previous agreement .

1 .5

Renewal of Agreement

I N Rlg t ft/Sr

MAR

IMR

This Agreement shall be known as the Goodman Fielder Consumer Foods Transport Eme1&Q6tifieod"greement 2006 - 2009

O

1.2 Application

This Agreement shall have application to and be binding upon Goodman Fielder Consumer Foods Ltd., 33 Goodman Place, Murarrie in the State of Queensland (the employer), the Transport Workers' Union of Australia (Queensland Branch) Union of Employees (the Union) and all persons employed by the aforementioned employer whose conditions of employment are covered by the Award mentioned in Clause 1 .4 (Relationship to Parent Award) .

1 .3

Date and Operation

c yC^a ~ ~-~"' ° ~

Z' ""''t"'J

a19

This agreement shall operate and have force of law from O4--Apri1-N96 and shall remain in force until 31March 2009 unless terminated by the parties in accordance with Section 12 of the Industrial Relations Act 1999.

1 .4

Relationship to Parent Award

2Q° b

This Agreement shall be read and interpreted in conjunction with the following Award: Transport Distribution and Courier Industry Award - Southern Division in so far as this Award has application to employees employed by the employer .

(2)

Where there is any inconsistency between the Award referred to in sub-clause (1) and this Agreement, this Agreement shall have application to the extent of the inconsistency.

Six months prior to the conclusion of this Agreement, the parties shall commence negotiations to renew or replace this Agreement .

PART 2:

ENTERPRISE AGREEMENT

2.1

Objectives of Agreement

2 3 4D

AE~7~S'rl~gR The purpose of this Agreement is to provide for wage increases, which are based upon~ents 9Wductivity and efficiency at the employer's place of business .

FF/~S p0 The parties recognise the importance of the Murarrie site as being integral in terms of the emp ofd'* to develop and expand export markets .

2 .2

Labour Flexibility (Time, Skill, Safety)

2.3

Work Practices

2.4

Teams Based Work Environment

The parties are committed to a process of joint continuous improvement, the aim of which is to reduce wasted activities and resources . It is a common aim of the parties to provide a basis upon which the company's responsiveness to market and customer demands can be continually improved. The process is centred upon the development and retention of a skilled and committed workforce and the use of plant and systems aimed at the enhancement rather than displacement of skills . To these ends, the parties are committed to the development, trial and implementation of team based work organisation and view the entire operation as a series of integrated customer-centred cells . Central to . such a process is . the objective of organisational democracy.

The employer may direct an employee to carry out such duties as are reasonably within the limits of the employee's skill, competence and training, including duties performed across the Murarrie site, as mutually agreed by the parties .

(2)

The employer may direct an employee to carry out such duties and use such tools and equipment as may be required provided that the employee has been properly trained in the use of such tools and . equipment (where relevant) .

Any direction issued by the Employer pursuant to subclause (1) and (2) shall be consistent with the employer's responsibilities to provide a safe and healthy working environment .

(4)

Labour flexibility shall not be used as a means of reducing the number of permanent employees on site .

Provided that in the case of a disagreement between the employee concerned and the representative of management requesting the performance of such incidental and peripheral tasks, the dispute avoidance procedure contained in Clause 4.1 hereof shall have application.

The parties are committed to ensuring compliance with the work practices as contained in Appendix 1 of this Agreement .

The parties accept, as part of this Agreement that further investigation, trial and implementation of a teams-based "concept/organisation" will continue . Any identified productivity gains, flexibility or workpracfice changes as a result of teams that lead to cost savings shall be discussed and if agreed between the parties, implemented.

Prior to implementation of such improvements, where cost savings are identified, agreement shall be obtained as to how actual savings are shared. All employment conditions, etc. shall continue to be met in all cases for the duration of this Agreement .

For the purposes of definition, investigation and trial of a teams-based "concept/organisation" will include:

Initial definition of teams Undertaking of initial training in teams methodology Establishment of team meeting forams for communication and workplace improvement purpose Establishment of volunteer Team Leaders elected from within the workforce .

2.6

Packaging Forklift Operators

The parties agree that the hours of operation for packaging forklift operators will be 6.a.m . to 2.30 p.m . and 7 a.m . to 3 .30 p.m . respectively. The hours will enable packaging forklift operators to cover all inbound activity, including the loading and unloading of pallets .

The parties agree that engineering personnel holding the appropriate licence are permitted to drive an available forklift for the purposes of maintenance tasks during normal hours of operation being Ta.m. to 3.30 .p.m . Monday to Friday.

Casual labour hire personnel may be engaged for absences by forklift operators in the Packaging Stores area . " Where a Packing Room forklift driver will be absent in excess of 5 days consecutively, casual labour hire personnel may be engaged to allow labour transfer from elsewhere onsite with appropriate notice given .

In the event of circumstances existing whereby an employee works excessive time due to coverage, labour transfer from elsewhere onsite may occur and casual labour hire personnel may be engaged.

It is agreed that packaging forklift operators will acquire the necessary skills to operate in the store facility onsite . Examples of tasks to be performed are cycle counting; GNP auditing and maintenance ; SAP transactions . The parties agree to undertake a skill level review in relation to the skills to be applied .

The forklift operators working in the Packaging area will require truck driving skills suitable to enable packaging to be moved on the Murarrie site with the existing site-based transport vehicle .

One additional truck licence will be offered to Packing Room forklift operators as a back-up measure for absences by Packaging forklift operators .

If agreement is reached with site production employees to reduce the existing sick leave accrual requirement for pay-out purposes, such agreement will apply to forklift employees .

2.7

Contract Transfer Drivers

The parties agree that the contract transfer drivers will load their own vehicles with product to be delivered to outside storage .

INDUSTRIAL REGISTRAR 2 3 MAR 2006

QUEENSLAND

PART 3:

WAGES AND CONDITIONS OF EMPLOYMENT

3.1

Classification Structure and Structured Training

5

Subject to sub-clause (2) hereof, employees whose conditions of employment are covered by this agreement shall be entitled to rates of pay prescribed for 'Prior to Structured Training' as contained in Clause 3.3 (Wage Rates and Wage Increase) of this Agreement.

(2)

Upon completion of the agreed structured training contained in sub-clause (3) below and having attained the skill levels ascribed to the appropriate classification grades as prescribed by the parent Award, employees shall be entitled to payment at the rate prescribed for'Completed Structured Training' as contained in Clause 3.3(1) (Wage Rates and Wage Increases) of this Agreement .

(3)

The agreed levels of structured training towards the achievement of a Certificate in Food Technology for each classification shall be as contained in Appendix 3, however, from time to time modules may change to suit employer and employee needs following discussions with employees .

(4)

It is not intended to change this structure during the period of this agreement.

(5)

The company will endeavour to have each TWU operational position covered by at least three trained people . This will lead to greater labour flexibility and training opportunities .

These will be done in consultation with employee representatives .

3.2

Review of Classification Structure

3.3

Wage Rates 3.3.1

Wage Increase

* The wage increase for year 1 is 3% paid at date of implementation . * The wage increase for year 2 is the greater of National CPI for December quarter 2006 or 3% . " The wage increase for year 3 is the greater of National CPI for December quarter 2007 or 3%.

INDUSTRIAL REGISTRAR 2 3 MAR 2006

QUEENSLAND

The parties recognise that this Agreement includes obligations on employees to take part in and undertake significant changes to work practices . If a set of tasks or an operation becomes extinct due to technological change, an employee considered competent in that set of tasks or operation will continue to be credited with those skills . If an operation changes due to technological change an employee will need to undertake 'catch-up' training to maintain credit for that operation . Such changed operations will be subject to a task analysis to determine their future standing as operations .

In addition, employees will participate in a productivity related performance pay scheme (see . clause 3.3 .2 below) . (2)

The actual rates of pay payable to employees whose conditions of employment are covered by this agreement at their respective classifications inclusive of enterprise agreement increases shall be as follows :

(a)

Prior to Structured Training

Distribution Existing Rate Year 1 Year 2 Year 3 Classification Plus 3% Plus 3% Plus 3%

(minimum) - (minimum)

$ per week $ per week $ per week $ per week Grade 1 638.57 657.73 677.46 697.78 Grade 2 687.38 708.00 729.24 751.11 Grade 3 703 .84 724.95 746.70 769.10 Grade 4 720.31 741.92 764.18 787.10

3.3.2 Truck Driving Allowance

A $10.30 per week allowance ($10.61 Year 2 ; $10.92 Year 3) will be paid to employees licensed to drive the site packaging truck. Should this truck no longer be required, the payment of the allowance will be reviewed.

3.3 .3 Productivity Related Performance Pay Scheme

The parties agree to the variable pay system outlined below, based on Shop Floor Control, commencing August 1 1999, and continuing indefinitely or until otherwise agreed.

An additional percentage increase to apply along the following lines :

o

Payment of approx . 2.0% for reaching target Shop Floor Control across the site, paid on a sliding scale of 0.5% rate increase for each 1% of Shop Floor Control, achieved above the floor level .

o

Floor level defined as 2% below existing performance level . As such, maintenance of existing performance will result in a variable component of 1% .

o

Variable Pay component to be adjusted quarterly, based on previous quarter's results . This will be a base rate adjustment (variable) for the coming quarter . Variable pay component to fluctuate with performance (up or down), however the fixed component of base rate will not change . Fixed and variable components of base rates to be shown on pay slips .

3 .4

Hours of Duty

3.5 Overtime

(2)

All employees who are required to commence working such overtime on a Saturday or Sunday shall be paid as for a minimum of four hour's work.

6

INDUSTRIAL REGISTRAR

2 3 MAR 2006

QUEENS AND titi

The ordinary hours of employees shall not exceed an average 37-1/3 hours per week and shall not exceed eight ordinary hours in any one day .

The ordinary span of hours may be altered to a maximum spread of 6.00am to 6.00pm where mutual agreement has been reached between the company and the majority of employees concerned .

All time worked (excluding shift and 12 hour day shift workers) outside the ordinary starting and ceasing times shall be deemed to be overtime and, shall be paid for at the rate of double time. The parties accept that this improved overtime rate for day workers only applies while the operating site continues as a (5) day week 24 hours per day basis . Should changes be made to work patterns during the term of this Agreement, the overtime rate for day workers will revert to a rate of time and a half for the first three hours of overtime, double time thereafter.

A minimum of 4 hours overtime at appropriate rates will be paid for a call in prior to the commencement of the . normal shift .

Completed Structured Training tit

Distribution Existing Rate Year 1 Year 2 Year 3 Classification Plus 3% Plus 3% Plus 3%

(minimum) (minimum)

$ per week $ per week $ per week $ per week Grade 1 615 .82 634.29 653.32 672.93 Grade 2 720 .31 741 .92 764.18 787.10 Grade 3 752 .90 775.49 798.75 822.71 Grade 4 802 .41 826.48 851 .28 876.81 Grade 5 859 .92 885.72 912.29 939.66

3.6

Meal Allowance

(1)

When an employee is called upon to work overtime in excess of one hour, the employee shall be paid the sum of $9.89 ($10.18 Year 2 ; $10.49 Year 3) by the Employer as meal money in addition to overtime payment for the time worked .

(2)

Allowances schedule

Overtime Immediately Prior to Shift A .

Between 1 and 2 hours- 1 Meal Money ($9.89) B .

Above 2 hours - 1 Meal Money ($9.89) plus '/2 hour Meal Allowance (4puble time)

Overtime Immediately After Shift A .

1 hour or less "

No Meal Money / Allowance B .

Greater than 1 hour "

1 Meal Money ($9.89) plus % hour Meal Allowance C .

Greater than 51/2 hours "

2 Meal Monies plus '/ hour Meal Allowance

3.7

Public Holiday

'DUSTRIAL REGISTRAR

13 MAR 1006

QUEENSCAND

The parties agree that time worked on a public holiday will be paid at the rate of double time in addition to the ordinary time payment for the public holiday.

3.8

Redundancy Package

(1)

In the case of redundancies the provisions of Appendix 2 shall have application .

(2)

Site Closure - Special Redundancy Clause.

The parties agree that the arrangements below, which pertain to special redundancy, will apply in the special situation of a full site closure on or before the 31 March 2009 . Should redundancies be necessary for other reasons, such as business downturn, the existing provisions will apply.

The parties agree that in the event of full site closure prior to or on the 31 March 2009, the current Redundancy clause will be altered by increasing the notice period by 13 weeks .

During this notice period, should an employee seek to be released to take up alternative employment, the company will approve such release without loss of 'standard' redundancy pay, subject to arrangements put in place to maintain effective operation of the function . These arrangements will include the use of casuals, reducing fixed complements, and transfer of individuals from other areas . This is also subject to satisfactory evidence of alternative long-term employment.

For the purposes of definition, 'standard redundancy shall mean the components for Ex Gratia and for years of service in the existing agreement. It shall not include any of the additional notice in this clause .

3 .9

Sick Leave

(1) Entitlement (a)

Full-time employees will become entitled to not less than 64 hours sick leave for each completed year of employment with the employer.

(b)

In respect of any completed period of employment of less than one year after that date, an employee will become entitled to 8 hours sick leave for each six weeks of that period.

(c)

All Sick Leave will be cumulative .

(d)

Unless the employer and employee otherwise agree, employees will not be entitled to receive payment for, and the employer will not be bound to make payment for more than thirteen weeks' absence from work through illness in any one year .

Continuity Of Employment

3.10

Long Service Leave

3.11

Family Leave

a

Provided that employee will have been re-employed by the employer .

INDUSTRIAL REGISTRAR 2 3 MAR 2006

(2)

Conditions

QVE 0000 An employee who is absent from work due to personal illness or injury will be ent MN

absence up to the accumulated period of leave available without loss of pay, subject to the following conditions and limitations -

(a)

Notice - An employee will promptly notify the . employer of the inability to attend for duty and state the nature of the illness or injury as well as the estimated duration of the absence ; and

(b)

Evidence - Where a sick leave absence exceeds two consecutive working days, an employee will produce a medical certificate from a duly qualified medical practitioner specifying - (1)

the nature of the illness; and (ii)

the period or approximate period during which the employee will be unable to work.

(a)

Continuity of employment of an employee with the employer for the purposes of Sick Leave accumulation will not be deemed to have been broken by any of the following - (i)

absence from work on leave granted by the employer; or (ii)

the employee having been dismissed, stood down or having terminated his or her own employment with the employer, for any period not exceeding three months :

(b)

The period during which the employment of an employee with the employer has been interrupted or determined in any of the circumstances mentioned in paragraph (a) of this sub-clause, will not be taken into account in calculating the period of continuous employment.

(4)

Where an employee has accrued 80 hours or more of sick leave entitlement, at the option of such employee, any accrued entitlements beyond 80 hours may be : (i)

paid out to such an employee on an annual basis in the month of December; or (ii)

accrued towards a payment to be paid to the employee upon the termination of their employment. That payment will be at the employee's rate of pay on termination ; or

(iii)

used as sick leave when required .

In the case of any future employees or employees that have a sick leave accrual of less than 80 hours, up to 32 hours sick leave per annum shall accrue towards an accrual of 80 hours to be kept for the purpose of maintaining a sick leave bank .

The remainder of accrued . sick leave, beyond the 32 hours referred to in the preceding paragraph, shall be dealt with either : (i)

by being paid out to such employee on an annual basis ; or (ii)

being accrued towards a payment to be paid to the employee upon the termination of their employment ; or (iii)

used as sick leave when required .

All employees covered by this Agreement shall be entitled to long service leave on full pay under, subject to and in accordance with, the provisions of the Queensland Industrial Relations Act 1999, and any amendment to .

The provisions of the Family Leave Award - State issued on 25 October 1991 and published in 139 QGIG 179-184, apply to and are deemed to form part of this Agreement.

It is to be noted that: (a)

part-time work can be performed by agreement in the circumstances specified in the Family Leave Award - State; and

(b)

a copy of the Family Leave Award - State is required to be displayed in a conspicuous place .

3.12

Bereavement Leave

Upon the death of a wife, husband or other permanent partner, father, mother, father-in-law, mother-in-law, brother, sister, child or step-child, employees will be entitled on notice to leave up to and including the day of the funeral of such relation . This leave shall be without deduction of pay for a period not exceeding the number of hours worked by the employee in two ordinary days of work . Proof of the death will be furnished by the employee to the satisfaction of the employer.

3 .13

Trade Union Training Leave (TUTL)

(2)

The granting of TUTL shall be subject to the following conditions :

9

INDUSTRIAL REGISTRAR 2 3 MAR 2006 °ooooo

QUEENSLAND

Upon written application by an employee, or the Union on behalf of the employee and agreed by the employer and given to the employer at least one month's notice, such employee shall be granted up to five working days leave (non-cumulative) on ordinary pay, each calendar year, to attend courses and/or seminars .

For the purposes of this Clause, ordinary pay shall mean the ordinary weekly rate paid to the employee exclusive of any disability allowances .

(a)

An employee must have at least six months service with the employer prior to such leave being granted .

(b)

The taking of TUTL shall be arranged so as to minimise any adverse affect on the employer's operation. Where the employer approaches the Union and demonstrates genuine difficulties with respect to the release of a particular employee at a particular time (including where the employer may have previously advised of its ability to release such employee) the Union will not unnecessarily press its request for the release of that employee at that time . If the matter is not amicably resolved, it shall be processed in accordance with the Grievance Procedure contained in this Agreement.

(c)

The scope, content and level of the course shall be such as to contribute to a better understanding of industrial relations, industrial efficiency and workplace issues within the employer's operations .

(d)

In granting such paid leave the employer is not responsible for any additional costs except the payment of extra remuneration where relieving arrangements are instituted to cover the absence of the employee .

(e)

Leave granted to attend TUTA courses will not incur additional payment if such course coincided with an employee's rostered day off.

The taking of TUTA leave will not affect other leave granted to employees under this Agreement, nor shall it adversely affect the employee's service for the calculation of leave entitlements .

3 .14

Occupational Superannuation

The subject of superannuation contributions is dealt with exclusively by legislation including the Superannuation Guarantee (Administration) Act 1992, the Superannuation Guarantee Change Act 1992, the Superannuation Industry (Supervision) Act 1993 and the Superannuation (Resolution of Complaints) Act 1993 . The legislation, as varied from time to time, governs the superannuation rights and obligations of the parties .

(2)

The company will make superannuation contributions to a complying fund for each eligible employee in accordance with the fund's Trust Deed and the above legislation.

An eligible employee for the purposes of the clause shall include all weekly, part time and casual employees following 1 month's employment with the company.

(4)

A complying fund is a superannuation fund that has chosen to be regulated under the Superannuation Industry (Supervision) Act 1993 (SIS) and which meets the Government's operational standards for superannuation funds .

3 .15

EA Implementation Team.

The parties agree to the formation of an EA Implementation Team, to ensure effective and timely implementation of this Enterprise Agreement.

3.16

Income Protection Insurance Scheme

3.17

WorkCover payments

to

INDUSTRIAL REGISTRAR

13 MAR 2006

QUEENSLAND

The parties agree that employees will participate in an Income Protection Insurance Scheme. The total proportion of the wage increase which is diverted to this scheme is 1% of gross pay which is the net cost (in percentage terms) of the contributions to the scheme . Any additional premiums are to . b e funded by employees through forfeiture of equivalent wage increases .

If participation in the scheme ceases at any time, the diverted wage increase of 1% shall revert to the employees . Continued participation in the scheme beyond this Agreement will be subject to negotiation at the next Agreement.

The parties agree to the administrative procedures below, to allow continuity of some payments to employees awaiting the outcome of Worker's Compensation claims . This is done only while the Income Protection Insurance scheme remains in place. Procedures are :

o

For Worker's Compensation claims, company to pay out of accrued sick leave, with funds reclaimed from WorkCover / Income Insurance / Employee upon approval. If insufficient accruals, or claims not approved, sick pay to be reclaimed from Income Insurance as outlined below, (provided not a pre-existing condition).

o

Worker's Compensation top up (under the provisions of the Insurance scheme) to be paid after the qualifying period, and upon receipt of an Income Insurance claim form from the employee.

o

. For extended sick leave with an Income insurance claim pending, sick leave to be paid out of accruals, or if insufficient accruals, payment after the qualifying period, with funds to be recovered from the Insurance scheme . This is subject to presentation of a claims application form, and no pre-existing condition making the claim invalid .

o

Any funds not recovered from Income Protection Insurance or WorkCover due to claim rejection to be subsequently recovered from the employee .

INDUS TRIAL

REGISTRAR

PART 4 :

NIISCELLANEOUS

2 3 MAR 2a06 4.1

Dispute Avoidance Procedure

QIJE 0000 A procedure for the avoidance of industrial disputes shall apply in the company's establishm;

N'S~N® The objectives of the procedure shall be to promote the resolution of disputes and grievances by measures based on consultation, co-operation and discussion; to minimise the level of industrial confrontation ; and to avoid interruption to the performance of work and the consequential loss of production and wages . In the event of a dispute the following procedure shall be observed :

(1)

(a)

Discussions shall be held between the employee/s concerned and at his/her request the appropriate Union Shop Delegate/s and the immediate supervisor/s ;

If the matter remains unresolved ;

(b)

Discussions shall be held which involve the employee/s and at his/her/their request, the Shop Delegate/s and more senior management ;

If the matter remains unresolved ;

(c)

Discussions shall be held which involve representations from the State Branch of the Union concerned (if relevant) and the company's senior representatives .

(2)

- The parties agree to adhere to this procedure. This should be facilitated by the earliest possible advice by one party to the other of any issue or problem which may give rise to a grievance or dispute .

(3)

Throughout all stages of the procedure all relevant facts shall be clearly identified and recorded.

(4)

Sensible time limits shall be allowed for the completion of the various stages of the discussions, whilst at the same time, work continues as normal .

Emphasis shall be placed on a negotiated settlement. However, if the negotiation process is exhausted without the dispute being resolved, the parties may jointly or individually refer the matter to the Queensland Industrial Relations Commission for assistance in resolving the dispute .

(6)

In order to allow for the peaceful resolution of grievances the parties shall be committed to avoid stoppages of work, lockouts or any other bans or limitations on the performance of work while the procedures of negotiation and conciliation are being followed .

The employer shall ensure that all practices applied during the operation of the procedure are in accordance with safe working practices .

(8)

If in the opinion of the employer or the Union the matter is of such exceptional urgency, then either party may elect to proceed to sub-clause (1) (c) without having taken the previous steps .

4 .2

No Extra Claims

The Union undertakes that no extra claims shall be pursued throughout the duration of this Agreement .

Hughie WILLIAMS State Secretary

In the presence of

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Name of witness

12

Kevin DIPROSE

G.,Aenr.1-'U ~ " Name of witness

INDUSTRIAL REGISTRAR 2 3 MAR 2006

QUEENSLAND

SIGNATORIES

Signed for and on behalf of ] The Transport Workers' Union ] of Australia (Queensland Branch) Union of Employees ]

Signed for and on behalf of ] Goodman Fielder Consumer Foods Ltd . ]

13

APPENDIX 1

Work Practices

INDUSTRIAL REGISTRAR 2 3 MAR 2006 000000

QUEENSLAND

The following work practices are agreed by the relevant employees on the basis that adequate training is provided by the company and that time, skill and safety principles outlined in Part 2.2 of this Agreement apply .

1 .

Payment of Workers by EFT All employees will have their wages paid by EFT. Any employee on request will be advanced $150 if their pay is not in the nominated financial institution on the day due .

2 .

Changed Times of Commencement and Cessation Employees will change commencement and finishing times of shift to service the production hours of work .

3 . RemeltFunction Forklift drivers agree to learn and undertake remelt operation as required .

4 .

Stores Area Employees employed in the stores agree to develop relevant skills and work in these areas as requested given time skill safety.

5 . Rework Employees agree to assist in the rework of finished product as required.

6 .

Flexibility of Production Personnel Production employees with forklift licences are to clear lines of finished product . This means that Production operators remove finished palletised product and place it on the floor during the forklift driver's meal breaks (3 shifts) . This will allow the production lines to continue, forklift drivers to have their meal breaks, and storage forklift drivers to focus on product transfer.

7 .

Product Labelling It is desirable that product labelling be done at the manufacturing site rather than at the finished good warehouse . Therefore the Transport Workers agree to participate with production employees, within the "teams process," to work towards this desired result .

8 .

Carton/Packaging Store The carton/packaging stores area is seen as a work group of five people comprising 3 dedicated production personnel and 2 distribution personnel, one of whom will be a core member of the store's work group . The fifth position will be filled by a distribution person on a rotating basis . The core work group of four will perform all tasks within the warehouse including packaging area and additives store, skills permitting . The rotating distribution employee will assist with unloading packaging as well as perform the non-packaging related tasks, eg . servicing remelt and refinery etc .

The forklift driver attached to the carton/packaging store permanently as a member of the core group will develop the necessary skills traditionally carried out by LHMU members. This may lead to an upskilling within the existing classification structure.

Carton store and packaging store personnel are permitted to drive forklift equipment during periods of absence due to sick leave for the first four hours of the shift. It is further agreed that these personnel may drive forklift equipment during their ordinary shift when normal forklift crewing of two forklift drivers (TV" and does not include rostered day off and annual leave . An example is o

unload trucks should forklift driver be elsewhere without his forklift.

9 .

Inspection Reports All employees will complete inspection reports necessary for safety, quality systems and operations .

10 .

Product Strapping All employees will carry out product strapping when required.

11 .

Paperless Warehouse System Employees agree through a commitment to skill development and training to enable the introduction of a paperless warehouse system (by consultation) .

A.

FUNDAMENTAL PRINCIPLES/OBJECTIVES

Underpinning the selection of employees are two principles or objectives :

Objective 1 : The Company must NOT:

14

APPENDIX 2

Redundancy Agreement

1 .

Be left with employees whose existing skill levels are such that there are no vacant jobs that they can do;

2 .

Be left with existing jobs anywhere that cannot be manned by remaining employees on normal time ;

3 .

Have to incur costs and delays to its operations through training of employees as supernumeraries to agreed manning levels for more than four weeks . A further two weeks may be permitted if the Training Committee advances serious arguments to justify this .

Once trainees cease to be supernumerary they will be paid the interim rate .

INDUSTRIAL REGISTRAR 2 3 MAR 2006

QUEENSI AND

Responsibility for the competency of trainees who cease to be supernumerary will rest with the Supervisor.

Objective 2 : Providing Objective 1 can be achieved those who are retrenched should be volunteers for retrenchment.

To achieve both the above objectives in a retrenchment exercise, it maybe necessary for some employees to change shifts or areas of work ; it may also be necessary for some work practices to change .

B.

RESPONSIBILITY FOR DETERMINING WHO IS TO BE RETRENCHED

The Company, the Union and its employees agree to work together to achieve the above objectives, as far as they can be achieved together.

However, to overcome any Union or employee suspicion of unfair or biased treatment by Management, the responsibility for determination of who is to be retrenched will, in the first instance rest with the Union and the employees .

A group of no more than five Union member employees, determined and set up in whatever way the Union and its members see fit, should be constituted as the Site Retrenchment Committee. The Committee may conscript as many Union Officials as it wishes . It may also invite Management representatives if it wishes but it is neither obliged nor encouraged to do so .

The Retrenchment Committee will seek to put a proposal to Management, which determines the employees to be retrenched . This proposal should satisfy the two objectives, spelled out in A above . If some employees have to change shift and/or areas of work or if work practices have to change or if some employees have to undertake training on the basis that they will be supernumeraries to agreed manning levels for no more than four weeks in order to achieve objectives, the Retrenchment Committee will secure the agreement of the affected members as part of the proposal put to Management .

When the date and number of retrenchments are finalised the Retrenchment Committee will have three weeks to develop the proposal to be put to Management. Management will provide the Committee with the time and information it may require to develop its proposal .

If the proposal achieves Objective 1, Management will accept and implement it observing the terms for notice of retrenchment.

If the Retrenchment Committee is unable to put together a proposal within three weeks which satisfies the stated objectives and has the agreement of the Union members the Retrenchment Committee represents, the responsibility for determining who is to be retrenched will pass to Management.

In an effort to satisfy both objectives and to fit in with the specific desires of as many employees as it can, Management will seek from the Retrenchment Committee information about who is volunteering . for retrenchment and who is willing to change shifts or work areas .

Given this information, Management will formulate and submit to the Union and its

one week a retrenchment plan . This plan will achieve Objective 1 and will go as far as it can, depending upzv .

' ®ility and willingness to accept change and undergo training (on the condition of being a supernumerary for no lffore than four weeks), to achieve Objective 2 .

It has to be noted, however, that if the Retrenchment Committee has not achieved a proposal which satisfies all the members it represents, it is highly unlikely that the Management Plan will satisfy the specific desires of every employee .

The Management Plan will be final and will be implemented observing the terms for notice of retrenchment.

C .

RETRENCHMENT - NOTICE OF RETRENCHMENT

1 .

The Company will give the Union and its employees at lease three months notice prior to the 13 weeks detailed below of the expectation of retrenchment.

At this point in time, only approximate numbers of people to be retrenched and best guess dates for retrenchment can be given .

2 .

Once commissioning of machinery or process begins, it will be the objective of Management, the Union and its employees to finalise the crewing levels for the new machinery or processes in no more than four weeks .

Where Management and the Unions become deadlocked about crewing levels both parties will accept the decision of the Queensland Industrial Relations Commission about crewing levels .

3 .

When crewing levels have been agreed, Management will give the Union and its employees nine weeks' notice of the date and number of employees to be retrenched.

This nine weeks period will include the following : (a)

' Three weeks for the Retrenchment Committee to formulate a proposal ;

(b)

In the event of the Retrenchment Committee not being able to formulate a proposal, one week for Management to develop a Retrenchment Plan ;

(c)

At least four weeks for individual employees who are to be retrenched to be given notice of retrenchment;

(d)

Within nine weeks, four weeks for any new operating plants or processes to be trialed to verify revised crewing levels .

4 .

The Company will give individual employees who are to be retrenched at least four weeks notice of retrenchment.

NOTE: The retrenchment payment includes four weeks pay in lieu of additional notice.

D . RETRENCHMENT-PAYMENT

For employees who are to be retrenched the following payments will apply : 1 .

Four weeks'ex gratia' pay ;

2 .

Four weeks pay in lieu of additional notice ;

3 .

Four weeks pay for each completed year of service;

4.

Pro rata of four weeks pay for any part year of service

Note:

'Week of pay means shop rate, average shift allowance over the past 12 months . Leading Hand allowance where applicable .

5 .

Payment for any accrued, unused sick leave on the terms on which sick leave is normally paid .

6 .

Long Service Leave after one completed year of service on the terms on which Long Service Leave is normally paid.

15

Note: Taxation of all payments will comply with the Income Tax Assessment Act .

E .

RETRENCHMENT - ENTITLEMENTS

In addition to retrenchment payments, retrenched employees will receive :

400 INDUSTRIAL REGISTRAR 2 3 MAR 2006

1 .

Statutory entitlements eg. annual leave, taxed as required by the Income Tax Assessment Act .

2 .

Superannuation paid in accordance with the Trust Deed of the Fund to which the retrenched employee belongs and in accordance with legislation governing such payments .

1 6

APPENDIX 3 CLASSIFICATION STRUCTURE-FORMALLY TRAINED

SKILL OPERATIONAL HRSOF OPERATIONS DESCRIPTION CORE MODULES HOURS BAND TRAINING TRAINING IA Entry Induction (8) Induction

(4 weeks) o Forklift /'C' Class Truck Nil 1B 1 Operation 80 o Forklift /'C' Class Truck, or © Communications and Industrial Relations 40

o Forklift +Bay Dispatch Operation, or © Occupational Health and Safety 20 o Forklift+ Carton Store o Functional Maths 20

2 2 Operations 140 o Forklift + Bay Dispatch Operation + Carton © Food Hygiene & Sanitation 40

Store, or o Material Handling 20 o Forklift / 'C' Class Truck + Bay Dispatch o Inventory Procedures 40

Operation o Forklift Safety & Operation 40 3

3 Operations 220 ® BBS Track +Forklift, or o Inventory Control 40 o Security Checker, or o Engineering Warehouse 40 o Articulated Vehicle + Forklift + Carton Store, o Computing in Engineering 40

or © Warehouse Process 20 Articulated Vehicle +'C' Class Truck + BBS o Operational Maintenance 40 Truck o Production Supervision 40

4 4 Operations ® Transport Team Leader

® Possess all skills up to this level 5

Attachment B

I, Kevin Diprose, the deponent, of c/o Goodman Fielder Consumer Foods Pty Limited, 33 Goodman Place, Murrarie in the State of Queensland, Engineering Group Leader & Acting Site Manager, make affirm as follows -

1

1 am the Engineering Group Leader & Acting Site Manager for Goodman Fielder Consumer Foods Pty Limited (the Company) and I am authorised under the Act and rules to make this affidavit .

2

The agreement, attachment A is not for a new business, a project agreement or a multi-employer agreement.

3

The agreement is made with one (a) employee organisation.

4

The full name and address of the employee organisation is -

(a)

Transport Workers' Union of Australia (Queensland Branch) Union of Employees (TWU) 11 Alexandra Place, Murrarie, Queensland, 4172

5

The employer, Goodman Fielder Consumer Foods Pty Limited (ACN 000 024 546) of 33 Goodman Place, Murrarie is in the food manufacturing industry .

6

The name of the relevant award is the Transport Distribution and Courier Industry Award - Southern Division.

7

The address at which the employees to be covered by the agreement are employed is 33 Goodman Place, Murrarie, in the State of Queensland .

8

The number of female employees to be covered by the agreement is 0 .

9

The number of male employees to be covered by the agreement is 5 .

10

The number of apprentices to be covered by the agreement is 0 .

11

The number of trainees to be covered by the agreement is 0 .

12

The name and address of the employer to be bound by the agreement is Goodman Fielder Consumer Foods Pty Limited (ACN 000 024 546), 33 Goodman Place, Murrarie, Queensland, 4172.

13

The average percentage by which the wages of the employees to be covered by the agreement will increase under the agreement compared with wages before the agreement is 3.0% per year or the equivalent CPI increase, for the life of the agreement (expiry 31 March 2009).

14

The Agreement shall have a nominal expiry date of 31 March 2009 .

15

The steps taken to ensure compliance with section 143 of the Act were:

15.1

The delegates were aware of negotiations for the LHMU agreement in January 2006 and indicated they would adopt the agreed outcome.

15.2

The TWU gave formal notice of its intention to negotiate, in a meeting with the Company on or around 27 February 2006, after the LHMU settlement was released to all employees .

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page 3

15 .3

On 13 March 2006, the Company provided the TWU with a written copy of the proposed Agreement.

16

The steps taken to ensure compliance with section 144 were :

16 .1

Agreement on the settlement of the Goodman Fielder Consumer Foods Certified Agreement 2006-2009 was reached in late February 2006 and released/issued on 27 February 2006 .

16 .2

The employees had access to the terms of settlement for the proposed Agreement from 27 February 2006 when the LHMU document was issued .

16 .3

On 13 March 2006, the Company provided a written copy of the settlement as incorporated into the proposed Agreement .

16.4

Meetings were held between the site delegates and the employees to explain the terms of the proposed Agreement . The employees were provided with an opportunity to comment on the terms of the proposed Agreement and ask any questions . The employees were familiar with the terms in the proposed Agreement, as they are largely similar to the terms in the existing Agreement.

16.5

A vote was held in relation to the Agreement on 23 March 2006. All the employees voted in favour of the proposed Agreement .

16.6

The employees covered by the proposed Agreement speak English . No employee advised any problems understanding the Agreement.

17

The procedures for preventing and settling disputes are set out in clause 4.1 - Dispute Avoidance Procedure .

18

The requirements for equal remuneration of employees under section 156(1)(1) have been met.

19

The agreement attached passes the no-disadvantage test under chapter 6, part 1, division 3 of the Industrial Relations Act 1999 .

I swear that the facts set out above are true .

SWORN by thee d t at Brisbane on.Z.3March 2006 before me

o ~'GQ

9 2b 2000Z L es \

-

Deponent

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page 4

PARTICULARS OF THE EMPLOYER Name :

Goodman Fielder Consumer Foods Pty Limited (ACN 000 024 546)

Business address :

33 Goodman Place, Murrarie, Queensland 4172

Address for service :

Craig Ypinazar Freehills, Level 38, 345 Queen Street, Brisbane, Queensland, 4000

Phone number or contact phone number :

07 3258 6656 Fax number:

07 3258 6444 E-mail address :

craig.Vpinazar(crfreehills .com

PARTICULARS OF OTHER PARTIES Name:

Hughic Williams Position, title, office etc :

Branch Secretary Organisation, corporation, association, department etc :

Transport Workers' Union of Australia (Queensland Branch) Union of Employees

Residential or business address :

11 Alexandra Place, Murrarie, Queensland, 4172

Address for service :

11 Alexandra Place, Murrarie, Queensland, 4172

page 5

Phone or contact phone number : (07) 3890 3066 Fax number: (07) 3890 1105 E-mail address : info@ald.twu.com.au

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