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AMMA Bulletin – June 2008
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Information
the key to meeting challenges ahead
The new financial year brings with it many
new challenges, not the least being the continued skills shortage, changes to the
superannuation contribution base and the continued implementation of the
industrial reforms in Forward with Fairness.
On 20 June 2008 the Australian Industrial
Relations Commission recognised the important role the mining sector plays in
the Australian economy by giving both the mining industry and the coal industry
priority award status. Whilst this will mean a great deal of work for our
Award Modernisation Project Team over the next few months, it will provide
certainty in the applicable safety net award arrangements that will apply from
1 January 2010. The Commission has recognised the unique nature of our
industry and that the remoteness of many workplaces means that we work rosters
that are not comparable to traditional 9 to 5 weekday employees.
AMMA’s goal in seeking priority award status
is to ensure that the modern award for the mining industry does not detract
from the current levels of flexibility and allows our operations to compete
internationally with ‘bottom of the cost curve’ producers. It is not our
intention to expand the coverage of awards, re-open union turf wars,
disadvantage employees or increase costs to employers.
AMMA will be seeking additional flexibility
for the implementation of the National Employment Standards, particularly the
capacity to average our hours of work over a period up to a year.
On the superannuation front, AMMA is meeting
with representatives of the Minister for Superannuation this week to discuss
the potential for the 1 July 2008 changes to the contribution base to result in
superannuation being paid on regular overtime. The ATO has issued two papers
which appear to be in conflict on this issue and which have a significant
impact on construction activities.
Finally the Government has asked AMMA to
comment on the Terms of Reference for the Wilcox report into the creation of a
specialist building and construction industry division of Fair Work Australia
to replace the Australian Building and Construction Commission. AMMA lobbied
for and has been a supporter of, the work of the Australian Building and Construction Commission. The current historic lows in industrial action have not
occurred by accident, and there is evidence to support that the introduction of
the rule of law into the building and construction industry has reduced the
cost of creating new infrastructure. AMMA does not believe that the Government
should weaken its regulation of this important area. We are concerned that the
cultural change required has not yet occurred and we cannot afford a return to
the ways of the past.
AMMA needs your help in meeting these
challenges. Members can help by attending the various member meetings,
internet-based forums and ensuring the information circulars are distributed
within their organisations (and to your valued suppliers in our industry).
Information is power and the more information we have on how these changes
impact on your business the better we can represent your interests.
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Reducing
unacceptably high labour turnover
Written by
High labour turnover in a
company can be costly. It can reduce the profitability and predictability of
company performance. A great deal of management attention is paid to the
effect of strikes and other industrial action on costs. Labour turnover can be
even more expensive. However, because it is largely invisible, it is often
ignored.
Some labour turnover is not only
inevitable, but healthy, particularly in times of rapid change. Without some
voluntary resignations, restructuring and other planned developments are likely
to be hampered. However, if labour turnover gets out of control, planning is
impossible and morale at all levels in the company is likely to be damaged.
This may be the case even where recruitment is easy and the occupations
involved require only minimum training. The lack of stability in such
circumstances can also have effect on the quality of goods, the services
provided and ultimately the company’s public image. Where the people leaving are
highly skilled and are difficult to replace, the effects will be even more
detrimental.
Examples of the direct and
indirect costs involved include the following:
§ Direct costs
– a) advertising for replacements, recruitment costs, including
interview time, selection and induction; b) processing leavers, including any
exit interviews; c) costs of overtime to take up any slack in output; and d)
initial induction of new recruits, settling-in time and training.
§
Indirect costs – a) under-utilisation of
equipment; b) loss of sales; c) lower services; d) lower quality; e) customer dissatisfaction;
f) supervision time involved in training; and g) low morale.
Knowing that unacceptably high
labour turnover can have detrimental effects on costs within a company, the
challenge is to find the cause which leads to the labour turnover. On
occasions unacceptably high labour turnover can be attributed to a single
cause. More often, however, there are a number of factors at work, each
contributing to and compounding the problem.
The question is how to find the
causes. There are a number of avenues that may be explored.
Analysis of company records
Such an analysis can include:
§ Examination
of statistical data – This involves in particular attempting to get behind the data,
analysing it on the basis of age, occupational, work category and other
factors. It involves determining whether long service employees are leaving
and whether leavers are skilled or unskilled, administration or technical
personnel.
§ Exit
interviews – These may be conducted in order to discover reasons for
leaving. Some companies conduct two exit interviews, each with a different
manager, in order to attempt to find the ‘real’ reasons for a resignation.
§ Examination
of records of leavers – Records normally distinguish between voluntary and involuntary
terminations, though this can be misleading as some resignations are in
anticipation of dismissal. Also, some redundancies are voluntary, and this can
raise difficulties in interpreting records.
Asking employees
This, too, can take a number of
forms:
§ Attitude
surveys to identify the general motivation levels of employees, and to provide
employees with the opportunity to say what they like and dislike.
§ Consultation
workshops to reveal sources of problems. Consultation workshops not only
provide for the identification of the problems, but provide forums to reach
agreement and implement a remedial program.
§ Discuss
with external sources, such as employer associations which can help identify
whether high labour turnover is an internal one or if external factors are at
play.
The solutions to problems of high labour turnover depend, of
course, on the causes. To solve the problem, long-term as well as short-term
measures are necessary. Such measures, of course, involve costs of their own.
However the pay off, consisting usually of improved employee relations,
heightened morale and a reduction in recruitment and training of new employees,
is normally considerably in excess of any costs incurred.
A number of areas are worthy of attention in order to bring about an
improvement in labour turnover. These are as follows:
§ Terms
and conditions of employment - Pay must be brought into line
with the company’s competitors.
§ Hours of
work - Rosters that provide some flexibility and flexi time. A
fatigue management approach by companies in the resources sector has seen
dramatic declines in labour turnover.
§ Employment
practice - Pay particular attention to the recruitment and selection
processes, including the employee’s induction process. The induction needs to
be a good experience.
§ Supervision
- Employees need to be provided skilled and trained supervisors.
§ Facilities
- Employees prefer to work in pleasant environments. Attention to
canteen, rest room, drinking vending facilities and telecommunications shows
that employers do care about their employees.
§ Job redesign -
Employers need to enrich and enhance jobs to keep employees interested.
It is vital that high labour turnover is not dodged by
management. Management is sometimes loath to tackle the problem. There are a
number of additional steps that can be taken to improve the position. These
include:
§ Training - Train
supervisors to recognise and deal with interpersonal problems.
§ Human resource
records - Good recruitment and selections processes will lead to the
right employees being employed, and good record keeping (i.e. absenteeism) can
give an early warning of problems that can be addressed quickly.
§ Disciplinary
and grievance problems - Employers need to ensure that appropriate
policies and procedures are in place to address problems.
Finally, when labour turnover reaches high levels, costs
associated with it may become unacceptable. Such costs involve not only the
direct ones of finding and training replacements, but indirect costs such as
loss of production and lowered profits. It is often the indirect costs that
are more debilitating to the company. Analysis of labour turnover statistics
and the circumstances surrounding terminations, particularly in comparison with
other parts of the company or other companies, are essential to effective
remedial action. But this, of course, requires that companies maintain
appropriate personnel records, diligently collect and compile statistics and
other relevant information and examine these data as a matter of course.
Unless this is done, actions that are taken to solve unacceptably high labour
turnover are likely to be little more than shots in the dark.
So my challenge to all employers is to start today about
discussing possible strategies to reduce unacceptably high labour turnover.
Finally, in attempting to create some thought and action about
reducing unacceptably high labour turnover, I am very ready to discuss
strategies that are available to employers to achieve both good practice in
attraction and retention strategies, and employee wellness.
Contact Tracey Ram
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Mining
and coal mining deemed priorities for award modernisation
The mining and coal
mining industries have been included in a list of 14 priority
industries/occupations to have their awards modernised by December 19, in a
decision handed down on June 20 by the AIRC.
The final list of
priority industries/occupations is coal mining; mining; glue and gelatine;
higher education; hospitality; metal and associated industries; private sector
clerical; racing; rail; retail; rubber, plastic and cablemaking; security;
textile, clothing and footwear; and vehicle manufacturing.
The mining industry
had not been included in the original draft list of 20 industries. However,
during public consultations in May, AMMA submitted it should be a priority.
This was supported by ACCI, Australian Business Industrial, CCI WA and BHP Billiton Nickel West Pty Ltd.
‘It had not been on
the list of priority industries proposed by the ACTU’, the bench pointed out.
The AWU and AWU Qld also did not support its inclusion in the priority list.
‘We accept the
submission made by AMMA about the prevalence of AWAs in the industry and also
note the numbers of NAPSAs applying around Australia’, the bench said. ‘Important
parts of the industry have been experiencing significant growth and as a
consequence there has been a sharp increase in employee engagement. It is
appropriate that, at an early stage, a modern award for this industry is
created.’
Mining industry ‘peculiarities’
such as working in remote locations were also likely to give rise to
consideration of terms and conditions that should be dealt with in modern
awards which might not arise in other priority industries, the bench said.
The issue of
potentially expanding the scope of the mining industry to cover activities
currently covered by rail transport awards and occupational locomotive driver
awards should be considered in pre-drafting consultations commencing on July 30
for the mining industry, the bench said.
AMMA chief executive
Steve Knott said: ‘The decision of the commission recognises the significance
of the resources sector to the Australian economy and will assist the industry
to make an orderly transition to the new IR system that will commence in
January 2010 … Now that we have a list of priority industries, the hardest task
is ahead of us. The final date for making priority awards is December 19 this
year and this will require an extraordinary effort by all stakeholders,
something AMMA and its members are resourced and committed to doing well in the
interests of both employers and employees in the sector’.
The coal mining
industry
The ACTU and CFMEU
(mining and energy division) argued during consultations that the coal industry
should be on the priority list, and that this was accepted by a substantial
group of coal industry employers.
‘Although the data
is limited, we accept the parties’ submission that the incidence of AWAs in the
coal industry is significant, although there are relatively few NAPSAs in the
industry’, the bench said. ‘We also noted the indications that the coal
industry is undergoing a significant expansion and the parties’ desire that a
modern award be made for the coal industry sooner rather than later.’
Regarding
submissions on the scope of the industry, it said: ‘We are not persuaded by the
arguments advanced by the CFMEU (mining and energy division) that coal ports
and terminals or coke plants should be covered by a coal industry modern award.
Established union coverage is not a sufficient basis for their inclusion’.
Union coverage was just one of many factors that would determine the scope of modern
awards. Ports, terminals and coke works would be excluded from the priority
list.
September 12 will be
the closing date for publishing exposure drafts of priority awards, with
October 10 the closing date for written comments on draft awards. December 19
will be the final date for making priority awards.
An announcement
about the non-priority stage of award modernisation will be made on March 2,
2009.
To view the June 20
decision, click here.
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National
Employment Standards released but hours concerns remain
The Federal
Government has released the final version of its National Employment Standards
(NES), which will apply to all federal system employees from January 1, 2010.
In releasing the
NES, Deputy Prime Minister and Workplace Relations Minister Julia Gillard said
they were a ‘key element of the Rudd Government’s new modern workplace
relations system’.
The NES are: maximum
weekly hours of work; request for flexible working arrangements; parental leave
and related entitlements; annual leave; personal/carer’s leave and
compassionate leave; community service leave; long service leave; public
holidays; notice of termination and redundancy pay; and the fair work
information statement.
‘Legislation will be
introduced into parliament later this year to give effect to the government’s
commitment’, Gillard said. ‘The legislation will include other aspects of
workplace relations relating to the NES including compliance, interaction with
agreement making and future reviews.’
Having reviewed the
NES, AMMA is still concerned about the inability for members to average the
hours of work over periods greater than a week unless they are covered by a
modern award. It is important to note that the flexibility provisions provided
in the NES are restricted to employees covered by modern awards. This will
require further attention by the government.
To view the full
National Employment Standards, click here.
To view Julia
Gillard’s full media release, click here.
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Substantive
legislation on track for release this year
The Department of
Education, Employment and Workplace Relations is ‘on track’ to having the
substantive industrial relations legislation before parliament this year, DEEWR
officers told Senate Estimates on June 2.
DEEWR acting
associate secretary Finn Pratt told the Senate Committee: ‘The government has
indicated that it intends to introduce the substantive bill later this year’.
Policy advice and consultations were proceeding and things were on track for
meeting that objective, he said.
Whether the
government planned to have the legislation passed by parliament was another
matter, he said. ‘I would hate to pre-empt the parliamentary process.’
He confirmed around
70 or 80 DEEWR staff were working on the bill, including staff seconded from
other government agencies and private sector law firms Corrs Chambers
Westgarth, DLA Phillips Fox and Freehills. The Federal Government has also
asked Piper Alderman consultant Andrew Stewart for advice on simplifying the ‘architecture’
of the legislation as opposed to giving policy advice, the Senate Committee
heard.
To view the full
Hansard of June 2 hearings, click here.
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State
wage decisions in Western Australia, New South Wales and Tasmania
Wage decisions have been
handed down in Western Australia and New South Wales and agreed in Tasmania. Decisions in South Australia and Queensland are still pending.
WA economy strong enough to sustain $29
minimum wage rise
The minimum wage in Western Australia will rise by $29 a week to $557.40 a week from July 1, following a state
wage order handed down by a full bench of the Western Australian Industrial
Relations Commission on June 9.
According to the
bench, the booming Western Australian economy could afford the level of an
increase that was recommended by Western Australian Minister for Employment
Protection Jon Ford. The state’s continuing strong economic growth put it in a
better position than other states and the national economy to sustain such an
increase.
In arriving at its
decision, the bench relied on estimates from the Australian Bureau of
Statistics that around 30 per cent of Western Australian workers were covered
by the state industrial relations system. However, 98 per cent of workers in
the state were paid above the minimum wage. ‘Our decision will only directly
increase the wages being paid to approximately 2 per cent of the state’s
workforce’, it said.
In 2007-08, the Western
Australian economy is forecast to grow by 7.5 per cent. At the same time,
employment growth is expected to remain strong at 3.75 per cent, unemployment
is expected to remain low at 3 per cent, annual inflation in Perth is expected
to average 3.25 per cent, and wages are expected to increase by 5.75 per cent.
The CPI for Perth for the year to March 2008 was 4.3 per cent, while the state
Wages Price Index is running at 5.9 per cent.
In its submission to
the case, AMMA supported a modest flat increase with a similar increase to
adult award wages and a proportionate increase to juniors, trainees and
apprentices. But any increase should not exceed the movement in the CPI for Perth nor the state wages price index forecast for 2007-08, it said.
‘AMMA submits that
the outlook for the WA economy in 2008-09 remains bright, indicating that the
WA economy can withstand a modest increase in the minimum wage without fuelling
inflationary pressures or impacting on employment growth and factors such as
the strengthening dollar, difficulties with equipment supplies and skills
shortages tend to moderate the position of the WA resources sector as the key
driver of the WA economy’, its submission said. AMMA noted almost all of its
membership would not be affected by the minimum wage decision.
To view the Western Australian
state wage case decision, click here.
To view AMMA’s
submission to the Western Australian state wage case, click here.
New South Wales
Commission hands down 4% rise for the low-paid
While the New South Wales economy continues to lag behind the faster growing resource-driven states
like Western Australia and Queensland, the gap has narrowed in recent months
and it can still sustain a ‘moderate’ increase in wages for the low-paid
without impacting economic growth, the New South Wales Industrial Relations Commission
has said.
In its state wage
case decision handed down on June 27, the full bench awarded a 4 per cent
increase to minimum award rates, increasing the state’s minimum wage by $21.25
a week to $552.65.
The bench also
awarded a minimum wage for adult employees within the state jurisdiction whose
employment was not currently governed by an industrial instrument.
Based on the
economic evidence, the Australian economy was expected to grow by 3.5 per cent
in 2008-09 – a more moderate growth than the 4.25 per cent forecast for 2007-08,
the bench said. ‘The resource sector is expected to continue its strong growth
based on global demand.’
Yet the degree of
uncertainty about the future direction of the New South Wales economy, fuelled
by the US housing downturn, credit concerns, a high Australian dollar affecting
particularly the state’s manufacturing sector, rising world oil prices and
reducing disposable income ‘must have the effect of lowering the ceiling on
what increases might be sensible and affordable’, the bench said.
Even so, the state’s
economy had the capacity to sustain a moderate increase of 4 per cent, it said.
In last year’s state wage case, the New South Wales bench awarded a flat $20 a
week increase to minimum award rates, this year saying the issue of awarding a
flat increase versus a percentage was still a ‘live’ one.
Unions NSW had
sought a 4.5 per cent rise in award rates of pay this year, while New South Wales
Industrial Relations Minister John Della Bosca had sought a $20 a week
increase.
The Australian
Federation of Employers and Industries and the Australian Retailers Association
had sought a $10 rise, while Australian Business Industrial and the Australian
Industry Group had said the rise in award rates should not exceed $13 a week.
To view the
decision, click here.
Parties agree on $19 a week rise in Tasmania
Employer and union
parties to the Tasmanian state wage case have agreed via a memorandum of
understanding that all public sector awards in the state will increase by an
amount of $19 a week.
The decision, which
is yet to be formally published by a Full Bench of the Tasmanian Industrial Commission,
will take effect from the first full pay period in August this year.
Parties to state
wage cases in South Australia and Queensland have filed their submissions and
are awaiting decisions.
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Federal
minimum wage decision due in July
The Australian Fair Pay
Commission (AFPC) will hand down its third minimum wage decision in July, with
employer groups and the Federal Government urging economic restraint and the
ACTU saying higher minimum wages will have negligible inflationary impact.
Federal Government suggests no
quantum
The Federal
Government made a post-budget supplementary submission
to the review on May 21, saying inflationary pressures ‘continue to be of
concern’.
Its original submission
to the review on March 14 did not recommend a quantum for a minimum wage
increase. ‘The government’s submission is that the commission should grant an
increase in minimum wages so that those who are reliant on minimum wages share
in the strong growth in prosperity in Australia’, it said. ‘However, in
arriving at its decision, the commission should balance the potential impact of
minimum wage increases on inflation, employment and the financial needs of
low-paid workers.’
ACCI argues for similar
amount to last year plus tax cuts
In its initial
submission to the review,
ACCI proposed an increase of a ‘genuinely moderate nature’. Real incomes for the
lower-paid should be increased in real terms by a combination of the July 2008
tax cuts and a minimum wage increase of comparable size to the 2007 increase,
it said. ‘This is vastly preferable for the economy to having wages attempt to
chase prices.’
ACCI also
made a post-budget submission to the review
stressing the importance of taking into account countervailing economic factors.
ACTU seeks $26 a week rise
The ACTU’s submission
to the review called for a $26 a week rise, bringing the federal minimum wage
to $548.12 a week or $14.42 an hour. ‘We argue in these submissions that the
increase to minimum wages sought by the ACTU will have a negligible impact on
inflationary pressures whilst improving the lives of minimum wage workers and
their families’, it said. The ACTU also filed a post-budget submission
along similar lines.
The AFPC’s July
minimum wage decision will have an implementation date of October.
Last year’s decision
was handed down on July 5. It awarded a $10.26 a week increase to the federal
minimum wage, bringing it to $522.12 a week.
In 2006, the AFPC
awarded a $27.36 a week rise. This covered a longer period of time than its
subsequent decision but was still proportionally higher.
The AFPC will again
be responsible for setting minimum wages in 2009 but after that the
responsibility will fall to Fair Work Australia.
For more
information, go to: www.fairpay.gov.au.
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Dismissal
application caps increase from July 1
New
remuneration and compensation limits take effect for termination of employment
applications under the Workplace Relations Act 1996 on July 1, 2008.
Remuneration limit: in accordance with
sub regulation 12.3(a), Division 4, Part 12, Chapter 2 of the Workplace
Relations Regulations, an employee not employed under award conditions whose
remuneration exceeds $106,400 (indexed from $101,300) per year is excluded from
making application.
Compensation limit in accordance with
paragraph 654(12)(b) of the Act, the limit of compensation that may be awarded
by the Commission in lieu of reinstatement to an employee not employed under
award conditions is $53,200 (indexed from $50,700).
Lodgment fee: the fee for lodging
termination of employment
applications will increase to $57.30.
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Government
approves federal OHS code
The Occupational Health
and Safety Code of Practice 2008 came into effect on June 12, replacing 27
previous codes of practice.
The new federal code
advises duty holders how to fulfil their obligations under the Occupational Health
and Safety Act 1991 and the Occupational Health and Safety (Safety Standards)
Regulations 1994.
It has 25 parts, 16
of which replace previous codes that have been reviewed and redrafted; five
being new codes covering new hazards resulting from the expanded Commonwealth
OHS jurisdiction; and four being reserved for codes that will shortly be
implemented.
The approved code of
practice must be followed unless there is another means of achieving the same
or better standards of health and safety. The code is also admissible as
evidence in legal proceedings as proof of a breach of the Act or regulations.
Duty holders are
encouraged to read the code and implement the parts that apply to their
workplaces.
To download the
code, click here.
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State
ministers formally agree on OHS harmonisation
Commonwealth, state
and territory ministers at the May 23 Workplace Relations Ministers’ Council
formally agreed on the goal of harmonising occupational health and safety legislation.
A statement
following the meeting said it marked ‘an historic commitment by ministers to
OHS reform, with ministers agreeing in-principle to the Intergovernmental
Agreement for Regulatory and Operational Reform in OHS (IGA)’.
The statement also
noted COAG had decided to bring forward by 12 months the timetable for
implementing the harmonisation of occupational health and safety legislation.
The three-member
panel reviewing occupational health and safety laws in each state to recommend
an optimal structure for a national model OHS Act (for details see last
month’s AMMA Bulletin) will shortly publish an issues paper following
initial extensive consultations.
A formal public
consultation process will then invite written submissions, with the panel’s
final report going to the Workplace Relations Ministers’ Council by the end of
January 2009.
AMMA will be
involved in the consultation process and will create a Health, Safety and
Environment Board Reference Group (HSE BRG) to assist in the development of
its policy. AMMA invites senior company health, safety and environment representatives
to nominate for the HSE BRG. Nominations can be made to Christopher
Platt, AMMA’s Director, Workplace Policy. The HSE BRG will hold its
inaugural meeting on July 2.
To view the terms of
reference, news and information about the national occupational health and
safety review, click here.
To view the
Workplace Relations Ministers’ Council statement, click here.
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New
health and safety levy for Queensland mining operations
Mining operations in
Queensland will have to pay a new health and safety levy from October 1, which
is expected to boost safety in Queensland mines, state Minister for Mines and
Energy Geoff Wilson has announced.
While the Queensland
Resources Council said the new levy could impact on the independence of the
Mines Inspectorate, the Minister said he was confident the industry would see
the logic in it.
The inspectorate has
recently put on 10 new inspectors, with the new levy expected to enable it to
recruit seven more specialist mines inspectors, two more investigators, five
scientific research staff, an occupational hygienist, a statistician and a
health surveillance manager.
‘We’re asking for
$26 million from an industry that was worth $26 billion to Queensland in 2006-07’,
the Minister said. ‘Taxpayers shouldn’t have to foot the bill for these vital
health and safety services.’
The state government
will collect the money from mines and quarries, explosives and industry
employers and associated contractors.
As a guide, for 2008-2009,
the levy for operations with 11 or more employees will be $603 per employee.
For operations with 10 or fewer employees, the levy will be $75 per employee.
The exact amount of the safety levy will be determined once updated industry
employment data for June 30, 2008 is returned at the end of July, the Minister
said.
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Guest worker schemes won’t come cheap, Evans tells employers
The costs of
implementing a comprehensive labour migration scheme will largely be borne by
employers, Minister for Immigration and Citizenship Chris Evans told ABC’s Lateline
on June 11.
‘Employers are
saying they want the labour and I just want to be clear to them that it’s not a
cheap labour scheme. They will be employed on Australian wages and conditions.
And there will be the extra costs associated with bringing them in,” the
Minister said.
Skills were most
needed in the mining areas of Queensland and Western Australia and any
migration program would have to ensure it catered to those needs, the Minister
said. ‘What we’re looking to do is drive a program that’s responsive to the
needs of employers and the economy, will get the skills we need into the
regions we need, and that’ll help us unlock the economic potential of the
economy.’
While the Federal
Government was looking at a skilled migration program along the lines of the
New Zealand program, on which Cabinet would soon make a decision, ‘it’s not a
panacea for all the ills in the Australian labour market and it’s certainly not
about exploiting those workers’, the Minister said.
The Minister is also
considering a South Pacific labour migration scheme following pressure from
Pacific Island states to help their economies by allowing workers to come to
Australia to work then take their wages back home.
Lots of
infrastructure would have to go into any such scheme, including lots of support
and ‘a lot of cost’, he said. Urging employers to be ‘realistic’, the Minister
said if a program was implemented it would be in the form of a targeted trial
from which lessons would be learned.
To view the full
transcript of the program, click here.
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Victorian
fairness watchdog might no longer be necessary
The need for the
Victorian Office of the Workplace Rights Advocate (WRA) will be re-assessed in
light of the expectation of fairer workplaces under federal Labor, Victorian Industrial
Relations Minister Rob Hulls announced on May 30.
‘The WRA will be
subject to an assessment to be conducted by IR Victoria’, the Minister said in
a statement. ‘In conducting its assessment, IR Victoria will consider a number
of things, including how the change in Federal Government has and will continue
to impact on the WRA’s role.’
With the change in
Federal Government, the WRA no longer conducts fairness assessments of
Victorian public sector agreements, which are now the responsibility of the
federal Workplace Authority.
‘We set up the WRA
because we were deeply concerned about the fairness of the former Howard
Government’s Work Choices disaster’, the Minister said. ‘It has performed an
extremely valuable function in seeking to protect Victorian working families
from the excesses of Work Choices in an entirely professional and independent
capacity.’
To view Minister Hulls’
full media release, click here.
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New
guide for migrant workers in Western Australia
The Western Australian
Department of Education and Training has released a new guide to help new
migrants to Western Australia who are planning to enter the workforce.
The Employability
skills and workplace culture in Australia guide suggests
migrants observe the workplace culture in which they are placed to get cues on
the level of formality required.
‘The way Australians
communicate in the workplace might seem a bit blunt, or even rude, but often it
is not intended to be’, the guide says. ‘Depending on where you are from, it
might take a while to get used to this.’
The guide warns
Australians tend to use a lot of ‘slang’ and shorten, substitute and combine
words. ‘The use of slang and colloquialisms will vary between different
workplaces’,’ it says. ‘For instance, in a professional environment the speech
might be more formal and correct, whereas in manual work the use of slang might
be more widespread.’
As an example, the
words ‘should have’ might be condensed and pronounced ‘shouda’. Similarly, ‘do
you want to’ might be pronounced ‘dooya wanna’.
Jokes, humour and
story-telling are common in Australian workplaces and sometimes workers play
practical jokes on each other, the guide says. ‘Being able to laugh at yourself
is seen as a positive quality in many Australian workplaces.’
To download the full
guide, click here.
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Part-time work now 29% of all work but lowest in mining
Part-time work in Australia has grown from 10 per cent of total employment in 1966 to 29 per cent in 2007,
according to a recent staff working paper from the Productivity Commission.
The paper,
Part-time employment: the Australian experience, found both supply-side
and demand-side factors had driven the growth.
Supply-side factors
included employees wanting to work part-time while studying or raising
families. Demand-side factors included employers using part-time work to
increase operational flexibility.
Interestingly, the
paper found many part-time workers wanted to work longer hours. ‘At the same
time, there is evidence that two full-time workers want to move to part-time
work for every part-time worker who wants to move to full-time work’, it said.
It was not clear what the effect would be on employment if everyone worked the
hours they wanted, it said. ‘The presence of full-time workers who have
indicated a desire to work part-time suggests that the labour market is not
currently providing the flexibility desired by all workers.’
Half of Australia’s part-time workforce was made up of ‘prime’ working aged people aged 25 to 54,
including a large proportion of prime-aged women. Nearly 28 per cent of
part-time workers were aged 15 to 24.
On an industry
basis, part-time work was most common in retail, accommodation, cafes and
restaurants, and health and community services. It was least common in
industries like mining, electricity, gas and water, manufacturing and
communications.
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Researchers to access data on AWAs
The Rudd Government
will ensure an ‘evidence based’ approach to its workplace relations system,
including transparency of workplace statistics it claims were suppressed by the
Howard Government.
Deputy Prime
Minister and Workplace Relations Minister Julia Gillard told the Workplace
Research Centre’s annual conference in Sydney on June 20 that Australia collects less information about the transformation of its workplaces than about the AFL’s
interchange system.
‘This needs to be
improved. We need more and better quality workplace data, not less’, she said.
Ms Gillard harked
back to evidence then-Employment Advocate Peter McIlwain gave to Senate
Estimates in May 2006. ‘That evidence showed the extent to which key
entitlements were being stripped from Australian workers under AWAs’, Ms Gillard
said. Following adverse media attention, McIlwain’s office stopped collecting
the data and at the next Senate Estimates hearings there was no data to reveal,
she said.
‘Requests for the
data were denied. This was unacceptable then and it is unacceptable now. We
don’t need a government that can’t handle the truth and which attacks those
providing feedback to it.’
DEEWR now had in
place an extensive program for the coming year to improve its Workplace
Agreements Database, Ms Gillard said. ‘The project will broaden the range of
information that we code from collective agreements which will enhance the
range of data available for analysis.’ It will also make data available so that
researchers, including those at the Workplace Research Centre, can analyse
AWAs.
Researchers will be
able to compare the content of AWAs with relevant awards, with DEEWR to make
available on request 1,000 AWAs that were lodged and assessed against the
fairness test.
To view the Deputy
Prime Minister’s full speech, click here.
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Unemployment rate up, participation rate down in May
The seasonally
adjusted unemployment rate rose to 4.3 per cent in May from 4.2 per cent in
April, according to the latest Labour Force statistics.
At the same time,
the participation rate decreased to 65.2 per cent in May from 65.4 per cent in
April.
Seasonally adjusted
employment also decreased by 19,700 jobs to 10,691,200; full-time employment
decreased by 10,400 jobs to 7,645,200; and part-time employment decreased by
9,300 jobs to 3,046,000.
The seasonally
adjusted unemployment rate for men remained steady at 4 per cent but for women
increased by 0.1 percentage points to 4.6 per cent.
Deputy Prime
Minister and Workplace Relations Minister Julia Gillard said the fall in
employment was a ‘sober reminder of the consequence of eight interest rate
rises in a little over three years and slower global economic growth’.
The decline in
seasonally adjusted employment reflected in part ‘ongoing skill shortage
issues, particularly in the resource-rich states’, which Labor’s Skilling Australia programs would help to address, Deputy Prime Minister Gillard said.
To view the May
figures, click here.
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Leading employment indicator declines for fifth month running
The DEEWR Monthly
Leading Indicator of Employment has been in decline for five straight months.
According to the
latest figures, the indicator for June this year was -0.010; in May it was
0.155; in April it was 0.282; in March it was 0.387; in February it was 0.477;
and in January it was 0.533.
DEEWR says it is
still too early to confirm a slowing in the pace of employment growth below its
long-term trend of 2.5 per cent a year. To show any real slowing the indicator
would have to decline for six consecutive months. However, the downward
trajectory of the indicator had become more pronounced in recent months, DEEWR
said.
The indicator is
designed to give advanced warning of turning points in cyclical employment. A
turning point in the indicator is confirmed when there are six consecutive
monthly movements in the same direction. A fall in the indicator does not
necessarily mean the level of employment will fall, but rather the growth rate
of employment might fall below its trend rate of 2.5 per cent a year.
To view the June
indicator, click here.
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AIRC
reinstates worker who failed to undergo drug test
The AIRC has
reinstated a Linfox Australia worker who was dismissed for failing to undergo a
drug and alcohol test, finding a lack of evidence the worker knew about the
company’s drug testing policy.
Deputy President Reg
Hamilton in his May 30 decision noted Linfox had worked with the Transport Workers’
Union for some time on road safety issues, and under its new chief executive
had implemented a safety strategy known as Vision Zero.
‘In the last two
years there had been a dramatic improvement in all statistics in regard to
safety, motor vehicle accidents, lost time injuries and frequency rates’, he
said.
While dismissed
worker Peter Kidd worked in a ‘safety sensitive’ role, his dismissal was
disproportionate to the offence, the Deputy President found. On the day in
question he had presented twice to take the test but was told to come back
later. He failed to present a third time, with the company accusing him of
defying a direct order to return to the base.
The Deputy President
said it was ‘not difficult’ to prove an employee had been trained in an
employer’s policy. An employee’s signature on the training attendance sheet
will often suffice, as will the direct evidence of a manager the employee was
handed a copy of the policy and was trained in it. ‘That sort of evidence was
absent in this case’, he said.
‘Linfox is a large
and well-resourced business, of which high standards are to be expected’, the
Deputy President said.
Linfox provided only
‘indirect’ evidence the worker had been trained in the policy, with his
supervisor conceding it was ‘possible’ he had never seen the policy.
‘A drug and alcohol
policy is a key means to make the workplace and roads a safe environment for
Linfox employees and the wider community, as Linfox submitted’, the Deputy
President said.
An employee who
refuses to take a test should know he is not ‘immune’ from having his
employment terminated. But in this case a ‘more limited remedy of a warning’
should have applied given the man had worked for the company since 1996 and had
received just one previous warning which was later removed from his record.
While Linfox argued
Kidd had been dishonest and untruthful, the commission found reinstatement was
not impractical.
Implications for
members
This decision serves
as a reminder for employers to document all training with regard to company
policies, including drug and alcohol policies, especially if they are going to
rely on policy breaches to terminate employment.
It also reaffirms if
employers show satisfactory evidence that an employee was properly trained in a
policy, breaches will be taken seriously by the commission.
To view the
decision, click here.
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AIRC
rejects miner’s unfair dismissal claim filed 128 days late
The Australian Industrial
Relations Commission has rejected an unfair dismissal application brought by a
miner/operator against Walter Mining Pty Ltd because there was no reasonable
explanation for it being filed 128 days late.
Brynn Greenhill
tried to blame his late application on a pre-arranged month-long overseas trip,
telling the court he believed the CFMEU was handling the matter in his absence.
The CFMEU later said it was not prepared to assist him.
The man was
dismissed in August 2007 for turning up to work with an unacceptable blood
alcohol level, having been employed since November 2006.
The man claimed he
was treated differently to other workers who returned similar blood alcohol
readings the same day, with two other workers being suspended and another
receiving no punishment.
Walter Mining said
it was entitled to treat him differently because in his short time with the
company he had wilfully damaged property, taken unexplained absences and shown
a poor attitude. He had also defied a specific order to monitor his alcohol
consumption.
‘In this case it
does not appear, based on the submissions, that the delay can be properly
apportioned to the union or legal representatives’, Commissioner Paula Spencer
said. ‘The applicant also took overseas travel in circumstances where if he was
contesting the termination he had an obligation to attend to the matter.’
The applicant’s own
conduct was primarily responsible for the delay and the company should not be
prejudiced by having to defend a late claim, she said.
To view the
decision, click here.
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Large
companies should get advice before introducing new industrial arrangements
The Federal
Magistrates Court has fined Darrell Lea Chocolate Shops Pty Ltd $120,000 for 12
breaches of the Workplace Relations Act, saying as a large company it should
have known better and obtained professional advice.
Darrell Lea is a
family-owned company that has existed since 1927. It is also the largest
privately-owned confectionery manufacturer and retailer in Australia, operating more than 80 retail stores. Its turnover is many tens of millions and it
employs anywhere from 350 to 500 casuals at any given time as well as a
substantial number of permanent employees.
Despite this, it
operated on a ‘minimalist management structure’, Federal Magistrate Philip
Burchardt said. ‘Although Darrell Lea is a big company, it is surprisingly
unsophisticated when it comes to HR matters’.
Casual staff were
presented in 2006 with AWAs that removed weekend and public holiday rates
(although a higher rate was paid for working public holidays). Some staff were
given the impression they had to sign the documents quickly and AWAs would be
the only IR arrangements available.
Other breaches in
handing out the AWAs were that no information statement was provided and some
casuals were given the impression if they didn’t sign they would not be
rostered on for weekend or holiday shifts.
By April 2007
Darrell Lea had revoked the AWAs and given employees the opportunity to go back
onto a NAPSA. The Workplace Ombudsman proceeded with the prosecution anyway.
‘This is a large
business which ought to have been able to get competent advice about the
introduction of AWAs from Australian Business Ltd but failed to do so’, Federal
Magistrate Burchardt said. It also failed to monitor the introduction of AWAs
and as a result store managers applied pressure to workers to sign.
‘Whilst Darrell Lea
deserves every credit for its cooperation and its rectification of the
underpayments, and for its conduct going to its contrition generally, including
a clear expression of regret which I accept by its CEO, the fact is that this
was a big company that should have done better’, he said.
Implications for
members
This decision
reaffirms the importance of large companies seeking legal and industrial advice
before implementing new industrial arrangements. It also shows the Workplace
Ombudsman will proceed with prosecutions even where underpayments have been
rectified and industrial arrangements have been revoked.
To view the
decision, click here.
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On-the-books
decisions can be appealed, says AIRC
A Full Bench of the
Australian Industrial Relations Commission has confirmed its ‘on the books’
decisions on whether to grant extensions of time for unfair dismissal
applications can be appealed.
In its June 5
decision, the Full Bench granted leave for an applicant to appeal against an
unsuccessful unfair dismissal claim against Austal Ships.
The applicant was
dismissed in September 2007 but did not lodge his application until five months
later. The original judge, without going to a hearing, decided not to grant an
extension of time.
The Full Bench said
the question then arose whether such decisions were ‘immune’ from appeal.
While there was no
appealable error in this case, there was nothing barring appeals of extension
of time rulings that had not gone to a hearing, it found.
To view the
decision, click here.
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Overseas
medical certificates are proof of illness
The Australian Industrial
Relations Commission (AIRC) has found a woman was unfairly dismissed from her
job while she was incapacitated in India and unable to fly back to Australia at the direction of her employer.
Senior Deputy
President Lea Drake said DHL Exel Supply Chain (Aust) Pty Ltd should have
accepted the woman’s medical certificate from an Indian doctor as proof she
could not fly because it stated she needed bed rest for two weeks.
However, the woman
had booked her flight to India prior to leave being approved by her employer.
Her mother was very ill and might have been dying, so she had to travel to India to be with her, she said. Her employer later rejected her leave application for four
weeks, saying it could only do without her for one week.
The woman fell ill
while she was in India and was hospitalised. However, the AIRC noted she had
made no attempt to book earlier flights back home in any case.
Senior Deputy
President Drake said while the company used operational requirements for
denying her annual leave request, the woman had been on workers’ compensation
prior to taking the leave and the company had systems in place to do without
her.
The woman also had
eight weeks’ annual leave accrued and was entitled to take the four weeks she
applied for.
However,
reinstatement was not practical, she said. Instead she was awarded 13 weeks’
pay, with the commission noting she had done nothing to mitigate her loss other
than to ‘think’ about looking for another job.
Implications for
members
This decision shows
the AIRC will expect employers to treat their employees with compassion when
considering leave requests. It also shows there is nothing barring overseas
medical certificates as proof of illness.
To view the
decision, click here.
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Tooheys bound to pay redundancies of $640K more than award
The New South Wales
Supreme Court has found beer manufacturer and distributor Tooheys Pty Ltd is
legally bound to pay six workers redundancy amounts totalling $640,000 more
than their award redundancy entitlements because the incorrect figures were
stated in letters of offer and accepted in writing.
Nine brewery
technicians at Tooheys’ Auburn factor in Sydney had previously successfully
argued the company was bound to pay them the amounts stated in letters of offer
dated January 31, 2008. Tooheys had later tried to rescind the offers when it
realised it had miscalculated but the workers and unions claimed the contracts
were binding.
In
a Court of Appeal decision on May 26, Justice White found six of the nine had
accepted the offer in writing before it was rescinded; therefore the incorrect
amounts were binding.
The amounts for
respective workers were $64,000, $150,000, $56,000, $163,000, $147,000, and
$60,000 above what they were entitled to under the award. The company had meant
to calculate the amounts based on the award.
Instead of
calculating entitlements on the basis of three weeks for the first 15 years of
service then four weeks for each subsequent year, the calculations assumed all
technicians had 32 years of service.
Three of the nine
workers had not accepted the offers prior to them being rescinded, but they
were still entitled to some relief, the judge found.
One of the three
attempted to argue he had accepted an offer with a ‘handshake’ which should be
binding. The judge said the handshake was not binding in the circumstances,
especially given the verbal estimate the man was given at the meeting added an
extra $140,000 onto the already inflated figure. The worker said he was unaware
the offer was a mistake but was ‘surprised’ by it.
A key factor in
determining the offers to the other workers were binding was the letters stated
the calculations were ‘accurate’ at the time of drafting but could change if
employees’ industrial agreements changed, which they did not.
Implications for
members
This decision serves
as a reminder to employers when offering redundancy to word their letters of
offer carefully. If any figures quoted in writing are estimates only then that
should be made explicit. Otherwise, stated figures will be taken to be binding
contractual offers if they are accepted in writing.
To view the
decision, click here.
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The Rail
Infrastructure Corporation (RIC) has been fined $275,000 under the New South Wales
Occupational Health and Safety Act (OHS Act) for failing to ensure the safety
of two workers employed by another company.
One of the two
workers was fatally electrocuted when a crane came into contact with overhead
power lines. While the two workers were employees of Whyco Crane Services Pty
Ltd, the risk to health and safety arose from RIC’s undertaking, the Industrial
Court of NSW found.
Justice Anna Backman
on May 2 found RIC was the principal contractor at the Wilson Parade site and
was therefore ‘in control’ of it. The work being undertaken there comprised the
construction of concrete piers and abutments.
The evidence showed
RIC was aware of the risk of the crane coming into contact with overhead power
lines, and had noted the risk as early as 2003. This elevated the offence to
the category of ‘extremely serious’, Justice Backman said.
‘In mitigation of
the objective seriousness of the offence, RIC had in place a number of policies
and procedures designed to ensure the safety of persons, prior to the
commission of the offence’, she noted.
‘Insofar as the
system contemplated its employees exercising their own judgement and deferring
to the views of the crane operator (as to what might constitute a safe approach
distance to the power lines), the system was deficient.’
Since the incident,
procedures had been put in place for isolating power lines, she noted.
Implications for
members
This decision
reaffirms a principal contractor cannot defer to the opinion of even
experienced employees when it comes to health and safety obligations. Head
contractors will be presumed to have control over their sites.
To view the
decision, click here.
Back to Top
Host
employers ‘generally’ have more control over safety: SA Court
The Industrial
Relations Court of South Australia has reduced a fine against a labour hire
company for a workplace accident, saying the host employer was more culpable
because it had control over the workplace and the labour hire company’s penalty
should be less severe.
Worker John
McCutcheon had been operating an unguarded pipe-bending machine at the host
employer’s premises when he sustained serious finger injuries on both hands.
Labour hire firm
Adelaide Industrial Labour Services Pty Ltd (AILS) and host employer Dagenham
Pty Ltd (trading as Link Plus) had $9,000 fines each imposed by the Industrial
Magistrates Court for breaching the state OHS Act.
AILS later asked the
Industrial Court of South Australia to reduce its $9,000 fine, arguing its
conduct in the incident was not comparable to that of the host. It argued it
was Dagenham that placed the worker in danger, but admitted its site visits and
other checks were insufficient.
Senior Judge
Jennings said: ‘There will be circumstances where the capacity of the labour
hire company to influence matters concerning the safety, health and welfare of
its employees will be similar to the capacity of the host employer’. There will
also be cases where the labour hire company’s influence will be greater, the
judge said.
‘However, generally
the relationship between the labour hire company, its employees and the host
employer will be such that the labour hire company has less capacity to
influence matters concerning the safety, health and welfare of its employees
than the host employer’, the judge said.
In reducing the
labour hire company’s penalty, the judge noted a signed contract between the
two companies stated the worker would not be operating machinery.
‘The fact that
Dagenham departed from and breached its agreement with AILS illustrates further
the lack of effective control it had’, the judge said. ‘I find that AILS was
not in control of the day-to-day work being carried out.’
The original penalty
was reduced to $6,000.
To view the
decision, click
here.
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AMMA Education and Training
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About
AMMA Education and Training
AMMA Education and Training is
a division of Australian Mines and Metals Association Inc. and is focused on
providing member-driven education and training initiatives specific to the resources
and allied sectors.
Our mission is to become the
choice education and training provider for our members to deliver quality and
trusted education and training services.
One of AMMA Education and
Training’s key goals is to provide as many people as possible in the resources
and allied sector the opportunity for further education. We are dedicated
to providing as many learning options and methods to facilitate this goal.
AMMA Education and Training
offers a wide range of services to assist organisations achieve their
education, training and development goals.
Our education, training and
development services are constantly updated to ensure AMMA Education and
Training meets the latest global trends and therefore continually delivers
products that surpass user requirements.
Our courses for July are:
Course costs
Course cost is $420.00 for
members (GST Incl), which includes workbooks, handouts, refreshments and
lunch. Course numbers are limited so to avoid disappointment, please
register early.
To register or for more
information please contact AMMA Training and Education on 1800 891 662 or email
training@amma.org.au or
download our Back to Top
Upcoming
AMMA member forums
AMMA
conducts member forums on a quarterly basis at convenient locations for
members.
Member
forums are designed to keep AMMA members abreast of important issues that
impact on the resources and allied services sector. External speakers will
present on a range of relevant topics. AMMA member forums also act as an
excellent networking opportunity facilitating the exchange of information
The first
round of forums for 2008 took place during May. AMMA will be conducting further member
forums throughout Australia during the year.
AMMA also
conducts online forums, making it easy for members in remote locations
to attend.
For more
information about these forums, contact AMMA Membership Services via email at membership@amma.org.au .
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About
employment opportunities with AMMA
Information about current employment
opportunities with AMMA is available in the careers with AMMA area of the AMMA
website.
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Preferred Supplier Program
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About
AMMA’s Preferred Supplier Program
The AMMA Preferred Supplier Program is
designed to assist our members in finding quality service providers for the
varying needs within the resources sector.
As a service to members AMMA is embarking on
a project to identify suitable product and service suppliers for members.
As
part of the preferred supplier program AMMA has engaged the services of a third
party to analyse and evaluate all applicants to the program. This analysis
includes a thorough assessment of the Applicant organisation’s business
history, financial stability and professional reputation. Only by proving
itself a professional and reliable organisation can an organisation be referred
to as an AMMA Preferred Supplier.
To ensure the ongoing quality and validity
of the program the preferred supplier relationship will be reviewed and renewed
on a yearly basis. This will also ensure quality of services to AMMA members is
maintained.
If you believe your organisation would
qualify for the AMMA Preferred Supplier Program and would like some more
information please click here, or contact Corlia Roos on (07) 3210 0313.
AMMA welcomes
International Underwriting Services Pty Ltd as an AMMA preferred supplier.
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AMMA Supported Events
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About
AMMA’s Supported Events
AMMA is proud to support selected upcoming
events that we believe will be of relevance and interest to our members. Many
of these events offer a discount rate for AMMA members. Further information is
available on our
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The
AMMA Bulletin is published monthly and is available free to AMMA members.
Copyright. Reproduction prohibited.