Electrolux Home Products Spare Parts and Service Belmont W.A. Enterprise Agreement 2003-2006

ELECTROLUX HOME PRODUCTS – SPARE PARTS AND SERVICE BELMONT W.A. ENTERPRISE AGREEMENT 2003-2006

No. AG 236 of 2003

1 2 1. TITLE

This Agreement shall be known as the Electrolux Home Products – Spare Parts and Service Belmont W.A. Enterprise Agreement 2003-2006.

2. INTRODUCTION

Electrolux Home Products Pty Ltd,is the leading whitegoods manufacturer, service operator and distributor in Australia. The company’s production and service operations have earned their place as market leader through constant market innovation and design features that have set industry standards.

The manufacturing plants produce refrigerators,cooking appliances,rangehoods,washing machines,clothes dryers,dishwashers,appliance motors and heating elements.

Electrolux Home Products Pty Ltd is developing export markets for growing international regions and the future of the business rests heavily on improving the cost competitiveness of all operations together with increasing product performance and quality of appliances. To succeed in its goals,it must achieve a common focus of all stakeholders in the business, whilst establishing Australian operations that aim for world best practice.

3. OBJECTIVES OF THE AGREEMENT

This Agreement seeks to achieve;

To improve the relationship between the company and its employees by developing and maintaining a workpalce culture of trust, commitment and mutual respect.

To develop and maintain an ongoing program of continuous improvement designed to benefit both the company and its employees resulting in greater productivity, increased efficiency, lower cost base and an enhanced working environment so that the company can consolidate and improve its international competitive position.

To develop and maintain a workplace culture which emphasises initiative, creativity, contribution, reward and recognition leading to improved business performance and enhanced job opportunities and security.

The parties recognise that Electrolux Spare Parts and Service Belmont W.A. needs to achieve standards of excellence and flexibility to be competitive in both domestic and overseas markets as a result of the globalisation of world trade.

The Parties agree to changes in the workplace that will ensure the on-going viability of the Company through continuous improvement programs at the Electrolux Spare Parts and Service Belmont W.A. to achieve international competitiveness. 4. ANTI-DISCRIMINATION

It is the intention of the parties to this Agreement to achieve the principle objective in s.3(j) of the Workplace Relations Act 1996 (the Act) through respecting and valuing the diversity of the workforce and as a result the parties agrees to not discriminate against an employee in his/her employment or terminate the employee's employment for reasons that include the employee's race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin. 5. ARRANGEMENT

The agreement is arranged as follows:

Clause No. Subject Matter 1 Title 2 Introduction 3 Objectives of the Agreement 4 Anti-Discrimination 5 Arrangement 6 Parties Bound 7 Date and Period of Operation 8 Relationship to Parent Award 9 Collective Bargaining 10 Wages 11 Site Specific Arrangements 12 Long Service Leave 13 Introduction of Change 14 Redundancy 15 Employee Entitlements 16 Trade Union Training Leave 17 Casual and Contract Labour 18 Training 19 Occupational Health and Safety 20 Workplace Environment 21 Superannuation 22 Facilities 23 Protective Clothing 24 Disputes Settlement Procedure 25 No Extra Claims 26 Re-Negotiation

6. PARTIES BOUND

The parties to this Agreement are:

6.1 ELECTROLUX Home Products Pty Ltd of 1 Frederick Street, Belmont, Western Australia (referred to in this Agreement as “the employer” or “the Company”).

6.2 The Automotive, Food, Metals, Engineering, Printing & Kindred Industries Union of Workers Western Australian Branch (“the Union”).

6.3 The number of employees covered by this agreement is 1.

7. DATE AND PERIOD OF OPERATION

This Agreement shall operate from the 1st July, 2003 and shall remain in force until 30 June, 2006.

8. RELATIONSHIP TO PARENT AWARD

This Agreement shall be read and interpreted wholly in conjunction with; 8.1 This Agreement shall be read and interpreted wholly in conjunction with the Metal Trades (General) Award No. 13, 1966 as it exists at the date of certification of this Agreement provided that where there is any inconsistency between the Agreement and the Metal Trades (General) Award No. 13, 1966 this 4 Agreement shall take precedence to the extent of the inconsistency.

8.2 The employer and the Union agree that no employee who is a member of the Union, including apprentices and trainees, shall be employed other than under the terms of this Agreement. To avoid doubt, this means that no employee who is a member of the Union shall be offered an Australian Workplace Agreement, or any other form of individual Agreement, such as under common law or state legislation. 8.3 Provided that where there is any inconsistency between this Agreement and the abovementioned Awards, this Agreement shall take precedence to the extent of that inconsistency.

9.0 COLLECTIVE BARGAINING

An employee (as defined in 6b) commencing his or her employment with the Company after the date on which this agreement comes into operation shall be employed in accordance with the terms of this agreement.

10.0 WAGES Wages will be increased as follows;  From the first full pay period on or after certification 4%.  From the first full pay period on or after twelve months from the first payment. 4 %.  From the first full pay period on or after twenty four months from the first payment 4%.

11.0 SITE SPECIFIC ARRANGEMENTS

11.1 Service Operation The Parties will continue to be committed to developing and implementing all processes and methods which provide long term productivity and customer satisfaction. This will be achieved by improvements through the elimination of all kinds of waste. The Parties are committed to the implementation in the workplace of continuous improvement activities to achieve the objectives of this Agreement. Those activities may include, but are not limited to, the following examples:

11.1.1 Commitment to extending hours of operation to meet changing customer needs; 11.1.2 Multi-skilling and upskilling for employees with the ability to take on upskilling activities. Training to be provided by the employer; 11.1.3 Elimination of waste and rework activities; 11.1.4 Work with contractors and consultants who are engaged by the Company; 11.1.5 Problem solving on a joint basis; 11.1.6 Adoption of business performance monitoring systems; 11.1.7 Customer relations improvement techniques; 11.1.8 Perform any work as the employer may from time to time reasonably require within the limits of the employee’s competence and safe work practices. Specific areas are described in subclause 11.2:

11.2 Field Service

5 The hours of work detailed in this clause are indicative hours and may be changed by the employer where a maximum of eight ordinary hours per day is worked to suit the needs of the business. 11.2.1 Hours of work will be a maximum of 40 ordinary hours per week Monday to Friday which includes 2 hours accrual for a Rostered Day Off and shall provide service as rostered between hours as follows; Peak periods are (1st December – 28th February) The hours may be rostered between Monday to Friday between 7.00am – 6.00pm in accordance with award provisions Each Technician is to make themselves available for roster to work 4 Saturdays between January 1st and 28th February between 7.00am – 2.00pm. Non-peak periods (1st March – 30th November) The hours may be rostered between Monday to Friday between 7.30am – 5.00pm; in accordence with award provisions Saturday work will continue to be on a voluntary basis. 11.2.2 Technicians will achieve a minimum of 55% on job time in any given month. For the first three months of this Agreement a weekly review will be held to remove any external impediments. Where a technician continues to fail to achieve this standard, they will be performance managed and possibly subject to disciplinary action; 11.2.3 Technicians will bank all cash, cheques and credit card vouchers using approved direct deposit procedures. All technicians will attend a half-day training course covering security; 11.2.4 All technicians will attend training programs and technicians will be involved in preparing the evaluation to verify their competence as part of the program; 11.2.5 Technicians will attend Belmont base when required or directed by the employer. 11.2.6 .Annual Leave will only be taken between March and November inclusive. 11.2.7 R.D.O.’s will be rostered between March and November. Accrued hours within the R.D.O. bank of each employee as the 30th November of each year shall be paid as a lump sum to the employee on the 1st pay period of December of each year. 11.2.8 A. Service Technician Level 1 = A person who is proficient in the repair of four or more product groups shall receive a rate of 7% above the rate applied to level 2* B. Service Techncian Level 2 = A Person who is proficient in the repair of one – three product groups. * This applies the % for profiency implemented EBA 22/12/1995 11.2.9 Vechicles will be fully cleaned once a fortnight or if becomes untidy then it is required to be cleaned on that day.

12 LONG SERVICE LEAVE

12.1 Long Service Leave entitlements shall be as provided by Part IV of the Award other than in relation to the rate of accrual and pro rata entitlement.

12.2Employees will accrue Long Service Leave at the rate of thirteen (13) weeks’ leave for each ten (10) years’ service with the effective date being 1 July 1998. The effective date for accruals for former Southcorp employees will be 1/4/99. 12.3 With effect from 1 July 1998, employees who have accrued not less than 9.1 weeks’ Long Service Leave will be entitled to have their accrued Long Service Leave paid out upon termination of employment.

6 12.4 Long Service Leave shall be available on the accumulation of 9.1 weeks’ leave. This provision applies on a pro-rata basis to part-time employees.

13.0 INTRODUCTION OF CHANGE

Where the Company has made a definite decision to introduce major changes in production, program, organisation, structure or technology that are likely to have significant effects on employees, management shall notify the employees who may be affected by the proposed changes and their union or unions. ‘Significant effects’ include termination of employment (excluding the ordinary and customary turnover of labour due to production requirements) major changes in the composition, operation or size of the workforce or in the skills required, the elimination or diminution of job opportunities, promotion opportunities or job tenure, the alteration of hours of work (excluding regular rostered changes), the need for retraining or transfer of employees to other work locations and the restructuring of jobs. Provided that where the Award makes provisions for alteration of any of the matters referred to herein, an alteration shall be deemed not to have significant effect. Management shall discuss with the employees affected and their union or unions, inter alia, the introduction of the changes referred to above, the effects the changes are likely to have on employees, measures to avert or mitigate the adverse effects of such changes on employees and shall give prompt consideration to matters raised by the employees and/or their unions in relation to the changes. The discussions shall commence as early as practicable after a definite decision has been made by the Company to make the changes referred to above. For the purposes of such discussion, the Company shall provide in writing to the employees concerned and their union or unions, all relevant information about the changes including the nature of the changes proposed; the expected effects of the changes on employees and any other matters likely to affect employees provided that Electrolux Spare Parts and Service Belmont W.A. shall not be required to disclose confidential information the disclosure of which would be inimical to Electrolux Home Products Pty. Ltd. interests.

14.0 REDUNDANCY

i) Where the Company has made a decision that it no longer wishes the job the employee has been doing done by anyone and this is not due to the ordinary and customary turnover of labour and that decision may lead to termination of employment, the Company shall hold discussions with the employees directly affected and with their union.

ii) The discussions shall take place as soon as is practicable after the Company has made a definite decision, which will invoke the provisions of sub-clause 17 hereof and shall cover, inter alia, any reasons for the proposed terminations, measures to avoid or minimise the terminations and measures to mitigate any adverse effects of any terminations on the employees concerned. iii) For the purposes of the discussion the Company shall, as soon as practicable after making a decision but before any terminations, provide in writing to the employees concerned and their union, all relevant information about the proposed terminations including the reasons for the proposed terminations, the number and categories of employees likely to be affected, and the number of workers normally employed and the period over which, or the time when the terminations are likely to be carried out. Provided that Electrolux Home Products Spare Parts and Service Belmont W.A. shall not be required to disclose confidential information, the disclosure of which would be inimical to the Company's interests.

iv)In the event of unavoidable redundancies during the life of this Agreement the agreed minimum redundancy standard is: 7 3.25 weeks pay per year of service to a maximum of seventy (70) weeks pay.

Where existing redundancy arrangements provide payments and conditions in excess of these minimum standards, those existing redundancy arrangements continue to apply.

iv) Electrolux Home Products Spare Parts and Service Belmont W.A. shall, upon receipt of a request from an employee whose employment has been terminated, provide to an employee a written statement specifying the period of his or her employment and the classification of or the type of work performed by the employee. vi) TRANSMISSION OF BUSINESS In the event of the Company selling, transmitting, assigning or otherwise transferring the whole or part of the business in which employees covered by this Agreement are employed, and in the event of employees being offered employment in that business by a new employer with continuity of entitlements, then the Company will not be liable for payment of any notice amounts or redundancy or severance payments in respect of the termination of employment of such employees arising from the transmission.

15.0 EMPLOYEE ENTITLEMENTS Electrolux Home Products Spare Parts and Service Belmont W.A. is committed totally to meeting its obligations regarding employee entitlements as and when they fall due.

16. TRADE UNION TRAINING LEAVE At each site covered by the Agreement there is to be, as a maximum a pool of 5 days paid leave, per annum, per union represented at the site for use by members of the respective union to attend trade union training courses conducted or approved by Trade Union Training Authority. Reasonable notice of the intention to take leave shall be provided. The company’s agreement to proceed on leave will not be unreasonably withheld.

Leave shall be non-cumulative. Any current site arrangements or custom and practice in excess of this entitlement will continue. The above arrangements are subject to operational requirements.

17. CASUAL AND CONTRACT LABOUR

The Company is committed to the maintenance of a permanent workforce whose skills and knowledge are to be utilised for the benefit of the Company and employees. From time to time it may be necessary for the Company to engage non permanent employees for a variety of reasons, such as coverage of absenteeism, increases in demand for company products and also as a means of recruiting permanent employees. The Company emphasises that the use of non-permanent employees is not to be regarded as a replacement of its permanent workforce but rather as a means of managing variations to business conditions. Rates of pay for non- permanent employees are to be at the shop rate.The Company may recruit non permanent labour from agencies or labour hire companies.

The Company may require to utilise contractors to supplement existing trades resources at Electrolux Spare Parts and Service Belmont W.A.. Contractors may be used as contract labour hire or by contracting specific projects to other companies.

18. TRAINING

Electrolux Spare Parts and Service Belmont W.A. and the unions agree that employees have access to reclassification and career path progression in accordance with the applicable award or agreement.

19. OCCUPATIONAL HEALTH AND SAFETY

8 Every effort must be made by the Company and employees to establish and maintain a workplace culture in which all employees accept a degree of formal responsibility to promote the health, safety and welfare of employees at Electrolux Spare Parts and Service Belmont W.A..Should an employee suffer a workplace injury, that employee and the Company will fully cooperate in an appropriate rehabilitation program aimed at achieving a return to full time normal duties at the earliest possible time.Employees shall when required , assist management in evaluating causes of workplace injuries and co –operate fully in the implementation of Safety programmes . The Electrolux Spare Parts and Service Belmont W.A. Occupational Health and Safety Committee will meet throughout the year as per the designated meeting schedule and will as well as performing the prescribed functions as required by the Occupational Health and Safety Act will be the mechanism for Occupational Health and Safety consultation for employees and management for the Electrolux Spare Parts and Service Belmont W.A.

9 20. WORKPLACE ENVIRONMENT The parties are committed to act responsibily towards the environment and recognise that such actions lead to a safe, healthy working environment as well as improving the standing of the company both domestically and internationally in the marketplace. The co-operation of all employees is sought in achieving objectives that support environmental policies and procedures. Where possible employees may assist by promoting ideas and suggestions which lead to improvements in the environment.

21. FACILITIES

Electrolux Spare Parts and Service Belmont W.A. shall continue to provide facilities including the provision of drinking and boiling water, appropriate protective clothing, heating and cooling, ventilation, lunch rooms and toilets. Employee and union assistance is sought in maintaining the facilities in a healthy, hygienic and serviceable condition including the elimination of graffiti.

22. PROTECTIVE CLOTHING

Electrolux Home Products Spare Parts and Service Belmont W.A. will continue to provide appropriate protective clothing. Where protective clothing is required and provided it must be worn by employees.

23. DISPUTES SETTLEMENT PROCEDURE

23.1 In the event that any grievance or dispute arises, every effort shall be made to resolve the issue at the site level in accordance with the following procedure: a) At all stages, the employee is free to be represented by or accompanied by an accredited union delegate or official or a human resources representative; b) The employee/s concerned shall raise the issue with their immediate supervisor; c) If the grievance or dispute remains unresolved, the issue shall be raised with the relevant manager; d) If the grievance or dispute remains unresolved the issue shall be raised with the senior site manager or a human resources representative.

23.2 The union delegate and/or the human resources representative shall be allowed reasonable time to investigate employee grievances and disputes if they cannot be resolved by the employee’s immediate supervisor. 23.3 Without prejudice to either party, whilst these processes are being followed, work shall continue as normal without any disruption, consistent with established custom and practice at the site. Where employees have a reasonable concern in relation to an imminent risk to their health and safety, they may cease to carry out duties to the extent of the imminent risk, however employees are required to perform other available work that is safe and appropriate for the employee to perform. 23.3 This agreement does not preclude either party’s rights under the Industrial Relations Act 1979. If a grievance or dispute cannot be resolved at site level, it shall be referred to the Western Australian Industrial Relations Commission for resolution, including arbitration of the issue in dispute.

24.0 STANDARDS OF BEHAVIOUR In the interest of health and safety, efficiency and harmony in the workplace and the public image of Electrolux Home Products Pty Limited, all employees must maintain a professional standard of behaviour. This includes but is not limited to:

10 24.1 Dealing with both internal and external customers in a polite, helpful and considerate way; 24.2 Ensuring your dealings with other employees and customers is harassment free; 24.3 Being clean and tidy; and, 24.4 Performing all your duties promptly and efficiently.A breach of these standards of behaviour can result in disciplinary action.

25.0 NO EXTRA CLAIMS It is a term of this Agreement that parties bound by this Agreement will not pursue any extra wage claims, award or over award, or any other changes to conditions of employment for the life of this Agreement.

26.0 RE-NEGOTIATION

The parties agree to commence renegotiation for a new agreement in the last 3 months of this agreement.

11 BY THE COMMISSION

The Automotive, Food, Metals, Engineering, Printing & Kindred Industries Union of Workers Western Australian Branch

[signed]______(Signature)

Dated this 3rd day of September 2003

Electrolux home Products Pty Ltd, Service and Spare Parts Division Western Australia

[signed]______(Signature) Stephen John Farquhar

Dated this 18th day of August 2003