AP781451CRV - Federal Meat Industry (Processing) Award 2000
16.1 Subject to the provisions of this clause an employer may, at the election of the employer, remunerate employees under an incentive payment system (as an alternative to the time work payment system provided in this award).
16.2 An incentive payment system may apply to the whole of a workplace or enterprise covered by this award or a section or sections of such workplace or to specified categories of employees within the workplace and, to the extent of any inconsistency, shall prevail over the timework payment system provided in this award whilst the incentive payment system remains in force.
16.3 The terms and conditions of any incentive payment system and any agreed modification to such system shall:
16.3.1 be fully explained by the employer to all employees working under such system prior to implementation; and
16.3.2 be committed to writing by the employer in a form that enables the operation of the system to be readily understood, and allows employees to monitor accrual of entitlements under the system; and
16.3.3 be made available by the employer in written form to all employees covered by the system, upon request, or to an employee, or to the employee's union if the employee requests.
16.4 The information upon which payments under an incentive system are calculated, and all payments made and other benefits provided to employees under a system, shall be recorded in writing in the time and wages records of the employer kept in accordance with the requirements of Division 1 of Part 9A of the Workplace Relations Regulations.
16.5 Subject to this clause, all wages and other entitlements payable to an employee in accordance with an incentive payment system under this clause, shall be payable to the employee as if the terms of the incentive payment system were terms of this award.
16.6 Once implemented, any incentive payment system may only be modified by agreement either between the employer and the majority of employees covered by the system or between the employer and the union. Unless expressly agreed by the employer and a majority of employees no modification to the system shall operate so as to detract from or reduce accrued or accruing rights in respect of work performed by employees prior to the implementation of the modification. If a modification is proposed by the employer or a majority of employees and not promptly agreed, the following process shall be adopted before any party can exercise its right to terminate the system under 16.10.
16.6.1 The disputed modification shall be communicated to the employer, the union (if the union has one or more members at the establishment) and all employees at the establishment who are intended to be affected by the modification.
16.6.2 A conference shall be convened as soon as practicable between the parties and their representatives (including in the case of a Union member, the Union), to discuss the disputed modification and to seek resolution of the dispute.
16.6.3 If agreement cannot be reached at the conference or any agreed adjournment thereof, or one party does not attend such conference, any party may refer the disputed modification to the Australian Industrial Relations Commission for conciliation purposes only.
16.6.4 If agreement cannot be reached after conciliation under the auspices of the Commission, or if no party has referred the disputed alteration to the Commission under 16.6.3 within seven days of the conference, any party is entitled to elect to give notice of termination of the incentive payment system as provided in 16.10, or continue working in accordance with the existing system.
16.7 Nothing in 16.10 shall affect the right of an employer or a majority of employees to terminate any incentive payment system under 16.10 in cases where no modification of the system is sought.
16.8 Subject to clause 8 - General provisions and clause 18 - Stand-down of employees, the minimum ordinary time earnings for a day or week for employees working in accordance with an incentive payment scheme shall be the award rate of pay prescribed by clause 14 - Classifications and rates of pay for the classification of the employee plus:
16.8.1 for daily hire employees, an incentive loading of 20% of the award classification rate, and a daily-hire loading of 10% of the award classification; or
16.8.2 for casual employees, an incentive loading of 20% of the award classification rate, and a further casual loading of 20% of the award classification rate; or
16.8.3 for all other employees, an incentive loading of 20% of the award
classification rate.
16.9 Employees working in accordance with an incentive payment system who perform work in overtime hours (as defined in clause 24 - Overtime) or on Saturdays, Sundays or Public Holidays, shall be entitled to minimum payments for all work performed during such times which are no less than the payments to which such employees would be entitled for such time periods worked pursuant to clauses 21 - Hours of work, 24 - Overtime and 31 - Public holidays.
16.10 Subject to 16.6, the employer or the majority of the employees covered by any incentive payment system may elect at any time to terminate any such system in force, either in relation to the whole of an establishment or enterprise or any part thereof, upon giving not less than two months notice of their intention to do so.
16.11 The Commission may, upon the application of an employer bound by this award, a party to this award, or any employee covered by an incentive payment system made under this award, terminate an incentive payment system forthwith or upon any period of notice determined by the Commission, on the ground that the system is harsh or oppressive or operates in a manner which contravenes the Act.
16.12 All payments made to employees working under an incentive payment system for work performed during ordinary hours shall be treated as the ordinary time rate for the purpose of calculating payment for annual leave, sick leave, public holidays and other paid leave under the award. The weekly rate of pay for such purposes shall be calculated by dividing all payments for work performed in ordinary hours over the twelve months preceding the taking of leave, by the number of weeks during which any such work was performed. The daily rate of pay shall be the appropriate pro rata percentage of the weekly rate.
16.13 If an employee is a member of the Union, the employee may be represented by the union in meeting and conferring with the employer about the implementation of this clause, and in such case, the Union must be given a reasonable opportunity to participate in negotiations regarding the proposed implementation of this clause. Union involvement does not mean that the consent of the union is required prior to the introduction of agreed arrangements.
16.14 For the purposes of this clause, the following definitions shall apply:
16.14.1 Incentive payment system shall mean a system of payment whereby the rate or quantum of wages is calculated for each day, shift or week by direct reference to the amount of work performed by the employee, either individually or as a member of a team.
16.14.2 Timework payment system shall mean a system of payment whereby the rate or quantum of wages is calculated for each day, shift or week (or part thereof) worked by reference to the time worked by employees, irrespective of the amount of work actually performed during that time, whether or not expected or predicted levels of production are agreed or specified during such work time.
16.15 Transitional
16.15.1 If, upon the date that this clause comes into effect, an employer elects to maintain in force an incentive payment system that was in force and effect immediately prior to that date, then the employer shall be taken to have elected to implement that system in accordance with 16.1.
16.15.2 If an employer elects to maintain an existing scheme under 16.15.1, the terms of this clause, except 16.3.1, shall apply to that scheme from that date in the same manner as if the scheme was implemented for the first time under this clause.
Note. In respect of the implementation or modification of an incentive payment scheme, the provisions of clause 11 - Procedure to avoid industrial disputation apply in conjunction with this clause. Where there is any inconsistency between clause 11 - Procedure to avoid industrial disputation and this clause, the provisions of this clause shall prevail over clause 11. Further, the provisions of this clause also prevail over clause 7 - Facilitative provisions.
