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Major CEA ‘future proofed’ for 3 years
17 December 2008
Industrial action vote by members results in mediation and settlement for Fonterra/Dairy Workers Collective Agreement.
By James Ritchie
Settlement has been reached for the union's largest collective agreement, the Fonterra/Dairy Workers CEA following compulsory mediation during the 14 day notice period of industrial action.
The industrial action was suspended pending the result of the ratification vote which have now taken place at sites around the country.
The DWU negotiating team recommended members vote in favour of this settlement. A meeting of all site delegates in Hamilton on 13 November wholeheartedly endorsed the proposal and the recommendation to vote in favour of acceptance.
Main points of the Agreement are:
- a three year term 1 October 2008, expiring on 30 September 2011
- 6.5% on all rates and allowances plus a 1.5% lump sum for the first year, CPI plus 1% for the second year and CPI plus 1% for the third year.
- Even if CPI goes into minus territory ( deflation) there will be no reduction in rates during the term.
- For the terms of settlement: "The parties agree not to take advantage of any changes in legislation to change the contractual terms and conditions of any present or future workers covered by the CEA or union matters under Clause 14 for the expressed duration of this Agreement.
This commitment is subject to the parties obligation to comply with statutory requirements.
- retention of the bargaining fee
- inclusion of Nat Cert in Dairy Lab Technology Level 4 at the rate of $11.98 plus 6.5%
- A letter of intent that confirms that Labour Hire temps will continue to be paid the appropriate salary rates in the collective.
- Operational Review Group established to monitor and apply the agreement and consider proposals to vary the agreement, recommendations from the JCC, annualised hours issues and temp reporting.
- Working parties on drivers rosters and the employment of short term permanent workers who return each season.
- 4 weeks notice of termination of employment except where a worker has to take up alternative employment within 4 weeks or is resigning for medical reasons in which case the notice will be 2 weeks.
The union negotiators were aiming at 8% for the first year of a deal and we knew we would have to be a bit flexible in how that was made up. We were pleased to get 6.5% of that on the rates so that it compounds in years to come thus improving the rate for the job.
Although the DWU has not negotiated a 3 year deal for this Agreement prior to this one we were happy to secure this term as the world is facing a severe economic downturn and we have protected our agreement and inflation proofed it. Economic recessions and conservative governments are not a happy mix for workers rights and collective bargaining and the DWU is satisfied that it has protected members interests in our largest agreement through what we predict will be very rough times.
My thanks go to both the front bench negotiating team and the full negotiating team of site delegates who stuck together and held their nerve through very difficult and intense bargaining.
Also a big thanks to our staunch membership who voted by 96% for industrial action when the employer offer did not come up to the mark. It is undoubtedly that vote and preparedness to take action if necessary that got the money offer up.
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