Automotive, Metals, Engineering, Printing and Kindred Industries Industrial Union of Employees, Queensland v Queensland Chamber of Commerce and Industry Limited, Industrial Organisation of Employers and Others [1997] QIRC 22 (1997) 154 QGIG 603

602 QUEE~SLAND GOVERNMENT INDLSTRlAL GAZE'ITE 14 February, 1997 14 Fehruary. l 997 QUEENSLAND GOVERNMENT INDUSTRIAL GAZETTE 60] ########################################################## QUEE'l"SLAND INDUSTRiAL RELATIONS COMMISSION !,;dust rial relations Act /990 s. J 44 -· application for VJ.nation Automotive, Mt>ials, Engineering, Prin:ing and Kindred Industries Industrial l'nion of Employt•es;, Queensland AND Queens.land Chamber of Commerce and i ndustr, Limited. lndt..:'-trial Organisation of Empioycrs and ()1hers (No. 82190 ul !996) ENGINEERING A WARD - STA TE COMMlSSIO:-~ER NLTlEK 3 l fanuary l 996 Wage Pnnciple~ - Allowances Existing. Ailowance Tool Allowance Reimbursement Agreed Kn of Tools Quotes Percemage Increa.i,e Arb:trated Matter Application Granted 50% Increase 2Y7r- Operative from !O February ]997. 25% Oper-itive from 12 tvfoy 1997 · DECISJm~ This application sc~b to increa,;;e the t0ol allowance paid to trade,1"Je1 \ons who me rcq.1ired to suppiy and use their own tocils frnrn S l O-~O per week co S 17 .27 per week. . The basis of the argument by the Automotive, Metals, Engineering. Pnntmg and Kindred Industries Industrial Union of Employe,:s !AMEPKIU) suppurted by The Electrical Trades Lnion of E:.mployec•; of Austraiia. Quet'n:-:iand Branch (ETU) wa, that the cost of the kit of tocis used to dctem1ine this allowanci: prcviou<;Jy had increased significantly since the level of aliowance was l:.lsr detcnnined in 1989. They furth<.'r cootemi that an incn:.:a~,: in tlw ,lllo\v;:u1ce was 2 reimbur--;ement of expe11-,es incurred and wa, penrnssihte under tt,£' C,1rnni~swn·~ Wage Principles which pmvide in ,lause 32 ] .. .. (a, Exi<.ting allowance which c,Jnstitute a n.:imhun;cment of expenses may be ad3us!t~d from time to Lime where appropria'e w reflect the rcle\'HJlt changt;. ln the le\·el of ;.;u1.~h cxpen\e:-,_' ( 1 SO QGIG 1i!6J The applicauor: \~a., oppo~ed by the Quee!lsiand Ch.u'.1ber of Commerce and Industry Limited. Industrial Organbatio:i of Employers (Q(_'ClJ. the Crown, the Metal Trades industry As~ociation of Australia. Queensland Branch, Union of Employers (~TIA) and the Australian Suga~ Millirn: Association, Que.e-nsland, Union of Emp:.oycr\ (ASMA i in res;-~Jt•ct tc, th; quantum of im:re:se \GU);ht by ch,: ap;1lic:1n, It wa;, nor dppo-;ed mt t:ie li,"L,1s that no increase should be awarded. The 11.·»pondt:'nt:, acknov. ledged rh,1t the granting of an increa"t in the allowance w~6 pem,issible uridt'.' 11:r· Curruni,,irm', Wage Principles · The Comrni~s1on wa\ referred b} \tr Devlin for the applicarn to some ot tlie history relating to the detennination of the alkw,ance · Reference was made to a decision in B20 of 1975 by Commi~,ioner Sdf when he increa~ed the aHowm1cc by I00% !fr stated inter alia "I think we have to take note ot the facr that the.:;e woi al!ov,wices do not become adJusted every year. There is usuai:·1 a falf lapse of trn1e before they are looked a,: a1;d I think we have to enmre that the mte is sufficient to take c:ire of reasonable co~t increa~.e, in foe immediate fiJture. In other words. ! think \\,e have te err a !ittle generou~ly at this point of time in fa-.cJur of the t.:mplo:,ees to the extem that we can do so. Although you have been gDod enough, J.ll of you. to pUi a fa.tr amount of infonrn.1tion before me. it is not possible for tht Commi'.->sion lo anive with antlnncrrical 1nt>cisi1Jn al ilte actual cost~ of the toob 1equi1ed and the replacement costs, and ;t, we al! know, the~ vary rrade by I rade, e.,;tah!ishment bv estahlishment. and employee by employee. 'Jbi, is th~ rea<;on ~hy we -.ce so illilll} conflicting stories. So. if necessity, there has to he a considerable degree of arbitrary decision a, distinct from mathemarical!y- precisi0n decision. I would point out. too. that we arc not only concerned with the strict cost cf replacement. We have, l :hink, to mak,: some aJ1owance for the lo:-s of tools, and. after all. the employer has to be prepared to pay fo:- the pnvilege of usmg or having the use of employees· tool, 'This is another reason why the a.ilowance should. 1f anvthinl:.'., en on the generous side." (T'cript p. 56J · , Th:.-. decision wa..;; quoted with approval hy Comrmsmmer tv!::u-:,hall where he quoted the above statement a., being: - 'This Commission'~ approach to the matter of a tool a.ilowanct· in Uie relevam Awards is perhaps aptly quoted m pan by Cornmi»sioner Self (QGlG 17.5.75 p M)-,_( 1m QGIG 207, In a decision dated 8 June I 989, Commissioner Peebles after being provided with schedules showing the increases in the kit of tools since the previous increa~e in 1986 stated that he wa, satisfied that an increase was JU,lified and that a variation to the Award would show increases granred rhe scheduie ot pnce mcreases for the agreed kit of tools were shown hv tht'. Unions to l:e 34.09(fo (Dunlop !BC) and by the MTIA to tx: 30"79c7c (Wholesale Cost, Sidchrome Pty Lrd & Stanley Tools). The percentage mcrcase awarded hy the Comrrnssion v,,as ~'is-;, l 13 i QGIC, 372) The ba,is of the incre~L,e wa, the incrt~ased co~t of providing and maintaining a kit oi tools since the allowance had previously been increased by Commissioner Lediic rn 1986 It is evulent that Co111mi·,,,iont:1 Pe.ehlt~, :onk some ,1<.Tmml of future inrn.:ases a, did Commissioner Self in 197\ A change in the structure of thf all•)\, ,mce to,Jk pla~·e in l 9') l. 22379 l .l)O(: -- 1 of 2 -- b1>:n incn:a)',cd t,· S l X c;7 !X:: 1,cek t ,ppo:,,,i! ion tf·qi n t~1l-- rrspondcnt:'\ :6··.. , .. 1:1r.11,.:C in dt~h.:nn1nint;'. n11,. \·1r l1i1St1and ff,1 (,!C'C'i indrcaL·:1 th;H hi, i)rgan~'"'allun had only rc·~Ll\t~d HK· 1nh:,rrn;u;nn n:rard1ng rht· qunles for thi..~ "aid kit of iD<Jl~~ :,pplicant on .20 J:muar, I-le \aid that h!'• ,)r!!an;~al!rn1 nnl incrc:t~c thH upro,,_;:cd !P fhc quanfu1n !.1fthc iac1c.:a~c l1t~ing sou.1:,:ht cmpioyec.\ siEcc I (iW·-1. \('liK cmph ':,u::- h,uJ re,. civ,'d an in.;rea~c a,; rc•;ul! of ratl1, 1nah~,al!on of the al}ov/itn,~c hy (\;)nHui~~ ..:ioncr Ledlie in l ()<)2 re,ultinf, iu the higher level allo'NaIK t' applyiug to all ti ade~pci ~ons \1ihe!L~tb pr,e1,,'lo1!si2, there had txen ,:t diffr.. rcn! aH\,\.v;uh.:c~~ ~~1r }iu~tx1nd 1,tatcd rhc 1n1.:rca~c in pri.,_;c:-. should he ba:-,ed t)n the the fi!·n1 gi.., ing rhc: h "\Vf:~t prk:e 't not avt:ragc 1~11icc;.,, a~. again"'t the pncc:'-. ~1t11.:t en1plo~,et;~:--,- ht' >,aid. •Aou!d ,hor~ around to achit:\'C the :°Y1[ l·lu:--hand sub1nittcd that an iqcrea,~e in ti:c vicinity C)f 2_se1( 10 10/J; \Vould tx:- fHOrc apprc,pr1i;n1..· Tht: (~on1n1i:.z:-.1, )ft he ~aid, .;.t'fouid not rnake an alhn.v:~nc~ 'lur future Hh.:rea"-,CS in pncc:-- a.,, th1~ \Vas purely ..;pit:culatlvt \1r StrPn~1ch the (~rci\}1,'[ suppnnc(i the ~uhrni'.~\)On of ttt: vc·t~I and rcf,:rred io the iatenes:-,, docun1cnlation front the ~ppiicanL J--Ie reft~JTed 10 the C'P! incrc~.iSt:~ durln,g 1he sarnc renod and the Lurn·nt k)'"'v inflation period \.\ h1cn. hr- :~a KL \\:(,uid n1,Uf,ate a1:n11h~ pi ov1J1ng an t~jenL:nt lhe aHD'.,A.r·ancc for fulU!C CO\t Rt:•fr·rence v,·i~, a,!\o rna(L'.> b:, i\1r Stnw1~1ch to !,he (~Pl increrbc~ hut it \\'as ,\lated that such inrrca~~ did nut n:fl'-"ct th1..~ :--pcci,d arc~~ nf lords \l; Ryan lo: .\1T1 \. ,n ,upprnling ,h,· QtCl ,utHnis,ion,, ('Xp1c.,,ed opposition to the lc·.,cl cf inc,:...::t'\f :-.ought indicating that an increa:1l' of Jj(X co:1ld he ~uroon:d. He ,;takd th.f a nnt' off rncrea;.e or S9 qc; \~a, not aL\tificd tH1d.~t.T1ukl ,!1npo~c a signi;~icani co~l hu1dtn :,,n tht.: c;uptoyt:r \:tr c·unen fnr /\.. S\1/', n~fcrred the ('on11Hi:-.:--,nn tn Ilk~ ran~c of dt?,j~,J;,,n\. pn..:vH:u:-.:ly quoted. deahng v.. ,1th th,~ dch:·nnulmicn~ nf t!1i~ illl!.)Vr'ancf tll~, 01.gaI:1~:ttiun. he ~~ud. v.-a'.'-. u11i; oppo:---t:d to !ht.: C>deut of the inc1ca~ heir,g -..,,urht the ,,ame suop!icr ·1 hi, hao 1.i Fchrnarv. 1997 \ii ( '~dlcr: 1,.r:1c~tioni~d the cnn~;-r.vi,on•.; ,~uhn1l[u.. ,d l!;-' the .!;)p!icdnt ;_ind ih{!t ;he (~on1n1i-.;·-,ion :·.. hduld have rcgar1..! to the prict> ;1Dd tDuch!ne t:~:t•.: prepared 'h> The {)\.¥z·n Thi\.: f\1cJ1itc1r indicatc~d an inctf".a:--c in fHict,?"'->, :...1nc;...• {}ncJuJin,q ._,nd •xhcre prtH.ltJLt:"(!. !n r:.~pl; !he appiicant ,uh1ni!ie£l 1hat thr Dn)t·e,:--: :y,;ed \V~l" \Veil ~>-t~hh~t1t:d and thar the price li~t~. bad t._, f..,t ~n·<ragcd It W<.l.S sa!d that no .Jltt.~r(t(itlvl~ p;'f)P(''~,:.d t'i:1..! been put fc1 f\A:ard. 1\\-...{), that tht"· n:,-.;pondent--. had the tu ~eek pncc li·~l:-. lht:ilbt·ivt:~ hu! h'-id rH •t ddn(: ~o It \\:·a~ ~aid ;har thf C'onirr,1··":--iDn ...Jtoll!d :ise lhc i,tH!)i;,~ prc~e:--.:-=. a.\ \--va1-, apphcd in the pu:--:t in dcH-rn1;ninr thi'> rnaUei ( 'mwlrn,i'lns fh1.: appiic:n1t "; 1ught !o p1oce,.<.; this ch.1lrn on the ..... anie ha~is a'-1 01he1 :l,tim,., incn::,t,e•, in tllc l(H1! al!ov,;mcc under ihis A,v.anl h:,d h<::(:n dealt \\'!lh hv the (_~.,_)11u11ls,:.,ion '-;ince, at h.:<ist. I 97S. It ~ought a r'\.:r~.:t:utagc inct(:a.•y,: in the u!Jo\vaoce un the '.')an1e ha\l:-~ :,f1he in\.·n:a~e in price~; cf the ~an1e kit of tools \-vhich had h-~cn thcd by the ('orrHnI'v,:ion prc'-'ir.,usly 1·0 ptfH 1dc accura1.:y !t v.'ouhJ ha'1,'r.' been nece:-,,sary foJ tht.· >a1ne supplier tc he us\~-=L l'hi~ vyJ:-i u,;,,t pr·,.-,;._-.;ihlc for reii..\On ..;; prev,iou•,;ly :,;,tatcd \Vhii:-;t the rcsponden: 01r:111i\al1on, ol 1jcclcd !c1 the avcr~iglng proc~~,s ~hed b'. 1be applicani :,nd ~uhmitteJ that ,he Jqwc·-t qw,t1: <•Y'.'Iall ,h,,uid he rhc d,:!crrninant. this would ht~ unfair tu tht: app1i::·:1nt a:-- tlk; lc\el of rhc Dunlop iBC rcu1: pri,xs in the markei pla;.-•..; in the p;,q i, unknown Their price:--'. (;~)tdd have t·k:-l\r. a!1yv,:here ~1lont;! the ~~,c,.:tlliH1. f<ekn•rn'c wa~ mad<.' hy all panie~ 1.0 the CPI rnc:ren<.t'S \" percentage rnc1e;1:s,:, m different ulmponcnh 1-:1ev con~ilkrahly thb <lotsn·t pruvidc great a~~.i~,r~~nre in thi_: area of Increases in the price of tool:--:. ·1 he 1c~po'l,knl\ r..:nernlly c:1.pn.:\<..(~d uinccm 11\Cf !he lah' rccc1p: ;if d, ,..:UllH:nU1lion tmm the applic;rnt ,)f th.: Ji,.. : r,f ,;uncnt price, for ti1l: kit or !oob H,.,\licver. it \Ila~ not ma11da10ry thJr ~uch J IJq be pro,·idcd to the o:hu p.. utics prior !O rhe ll\;arini.; although it W.t\ ,,:n~1blc ti• du :-.o In add:t1on. 11 v.a:. v,ntun th,· pd\\Cr ,;f re~rx-,ndenh w appwach other ~uppli,:rs and oh1ai11 then liq,, for pn•:-,•nlation !C ;he { :ommi,-s1on rhi~ v::i:- nol d,,nc. The C\mimi..::--i,m can ,mh rch· nn the infonrnition rccciv,.;cl. l might add. !11)\H'\CL that the ASMA. did provide exhihit~ to ,ts,i-:t the Co1rnnission in this 1natter f'l1<: :tem,. on the !i~t ',fl()\\ a peat v:mai1ec in pnte~ he!wee1: :,uprher~. F:ir n:tP1pit' 1:w co,! of ,1 S1dchrnmc Sc rev. Driver Se1 1, ,!nwn at ,.,upplil'r A ((, he S32. at \Upplicr B 'l;78..">0 ,md -;upplier C s:n ':.() The CD\t a\ at April l 9kCJ wa, ,hnwn t·) he ~'i 7.46 fhc co~r of :i 14 Piece S1dchrome Spanner Set \'-,h \h,w,n at supplier A t,: l)..: '~({·, at ~uppl1t:r B, '.!,:2()(i_()9 and al ~,upp,1er C. '>i lJ(, 50. 1hc C\h( shov,n in /\pril I 989 wa:, 5,XJAO I( :,n',ll' otwiou, ihat ,uppi1e1s are qu,,ting for ddlercnt <..JUality of mu~:h,mdi:;c within the •.;:1mc manufacturing bnnd 1nn1t· :\ccording;y, the figure,. p!'tl\ idcd mu,t be Ci.rn~iik;·ed as ()nly ix'ing a hr\lad rndicatur ancl no! the :)uhjcct of any rnath~1na1ic.J! f)I\.~ci\ion. A t'u11hcr foctm to be con,idcrcd 1s that in 199:2 Corrnm,,ionc; Lcdlie incrL\t,ed iht' allowance p~iid to ck•~tricai fitter mechanic~ :rnd panel ht:<1ters 11.1 the ~~,me kvcl a~ mechanical filters Thi-; w.:ts Hl,t done hecau-;c of an incrca,e ir1 the ._:p-;t of tools hut to provide ali trndc,,pcrsun~ unde, tlw .\ v.ard wllh !he ,arne allowance Ttii\ i., ttic first dcci:-.ion dealing ~ith t;)n! allov.ance smcc tha1 decision :wd i: 1, appropriated that what occurred in 19<)2 also be taken into account. Taking al: of th,:,!.' fact.or, inr,., ,:onside ration and taking into account the lap,.: •Jf tHnc before th,' figure-; Jt:iem1incd are adjusted as ha, been the practice previow,ly. I prop<'se to increa:,e the allov.ance by SO'/,. A, thi~ i, a ~i,mi(1umt increase U!I(] could Ix: an impo~t on employers. hall of the increa,,e-'.,hall opera!t:' from 10 Febrnary l i197 with the raLrnce to (\peralt' from 1:'. !\fay i 997 Order ac.:Prdiflgly. f 14 February, 1997 QUEENSLAND GOVERNMENT INDUSTRIAL GAZETTE R J. NIJTTER. Commi~sioncr. ,1p[!l'llf'Ur.ces:- Mr H Devlin for the Automotive, Metal!:, Engin1:cring, Printmg and Kind,cd Industries Industrial Union of Employees Mr D. Dawe:, for The Electrical Trades Union of Ernployee~ of Australia, Queensland Rranch. Mr F Husband for the Queensland Chamber of Commerce and Industry Limited, Industrial Organisation of Employers . Mr B. Stronach for the Crown. Mr P. Ryan for Metal Trades Industry As~ociation of Australia, Queensland Branch, Umon of Employers. Mr R. Cullen for the Auqralian Sugar Milling Association, Queensland, Um~m of Employer~ Operative Date: IO Febrnary and 12 May l 997 Decision Tool Allowance Released: 30 January 1997 ########################################################## 605 -- 2 of 2 --