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Light on the Hill: Industrial Relations Reform in Australia
Working and Work Practices in the Brewing and Electricity
Supply Industries
Wayne Gilbert
Although my address is primarily directed at the most
recent experiences of the Queensland electricity dispute,
let me first say something about restrictive work practices
in the brewing industry, with which I was associated
until 1983.
What are some of the restrictive work practices in
brewing that come to mind several years on? Certainly
the most difficult I remember is what is called 'one-in-all-in'
which was an agreement, like most work practices, which
emerged some time ago and was condoned (or at least
not actively misted) by management and whose abolition
was strenuously resisted by the workforce.
'One-in-all-in' means that if overtime is required
for any section of the workforce, then the whole body
of workers must be offered overtime. A case that immediately
comes to mind occurred at the Kent Brewery in Sydney
when we were seeking to resurface the floor and it
was necessary to disconnect the bottle-packing lines
to move them a few feet, so that a new floor surface
could be put down, and then to move the lines back
again. The work involved bringing into the brewery
over a weekend several electricians and probably half-a-dozen
fitters. But because of 'one-in-all-in', 250 people
were brought in with absolutely nothing to do and paid
at overtime rates for all-day Saturday and all-day
Sunday.
Then there was the matter of contracting. Generally
speaking, there was a ban on contractors coming onto
the brewery site unless they possessed skills or equipment
which it was not possible for brewery day labour to
possess. Furthermore, by agreement, contractors would
not be allowed on the site unless one week's advance
notice had been given to the shop stewards. During
the late 1970s and early 1980s, this meant that it
was virtually impossible, except for very specialist
functions, to have contractors on the site; the day
labour force consequently built up to include paviours,
painters, builders, welders, tilers and virtually all
manner of trades that could conceivably have occasion
to be used, regardless of whether they needed to be
employed consistently or continuously.
Another bête noire of mine was fork-lift drivers.
In a brewery fork-lift drivers have had enormous power
because of their ability to halt production and distribution
immediately. This power was used to telling effect
at Tooths when I was there, until I managed to get
rid of such drivers. But for the purpose of this discussion,
I'll restrict my observations to one or two points.
The fork-lift drivers at the Resch's Waverley Brewery
in South Dowling Street had years ago demanded, and
been given, the right of an exclusive fork-lift assigned
to each driver. This was said to be on grounds of safety
and of machinery care, as individual forks were alleged
to have their idiosyncrasies and a fork-lift driver
to be most productive if he was acquainted with the
quirks of his machine. It was also said by management
as part justification for this crazy practice that
if only one fork-lift driver drove a machine, then
he was more likely to look after it. The upshot of
this was that there was always a pool of machines on
standby as a result of absenteeism; that there were
far more machines available than required for the job
and these all needed servicing, which built up the
labour force as servicing was done in-house; that over
the years the particular variety of fork-lift employed
became the most super deluxe model of the most expensive
and exotic brand available in this country; and, as
a crowning glory, that because the men were said to
have such a pride in their one-man per machine fork-lifts,
they needed to wash them as a safety measure each week
and that the best time to do the job was on a Saturday
morning, so that each Saturday morning every fork-lift
driver came in at time-and-a-half for a four-hour minimum
engagement period to wash their fork-lifts. In fact,
of course, the washing took about 8-10 minutes and
then the men adjourned to the bar.
Which brings me to one of the most insidious features
of the breweries although, once again, I should qualify
my remarks by saying that it is 3-4 years since I have
been associated with the brewing industry and conditions
today may well be different. But certainly the drinking
on the job was extraordinary at Tooths in 1978, when
I first came to Sydney to take responsibility for their
brewing operations.
First of all there was a wet canteen at each brewery
which was staffed by shift barmen; the bar was open
24 hours a day whenever the brewery was working, which
tended to be five days a week during most of the year
and seven days a week over the summer peak. Although
the rules provided for two beers at change of shift,
this was almost impossible to administer, particularly
when the barmen were typically the shop stewards, and
it became interpreted as two 10 ounce pots whenever
the employees felt like it; and with a workforce on
site of about 1,000 at each of South Dowling Street
and Broadway, it was virtually impossible for management
to police a system limiting persons to two beers (especially
during the night or shift operations). But that wasn't
the end of the matter. On the kegging plant, which
accounted for about half the operations, custom and
practice determined, in the days when wooden kegs were
used, that a certain proportion of such kegs---one
in 1,500, or something of that order were leakers,
and so from 1978 to 1981 the requisite proportion of
stainless steel kegs were removed from the production
line, opened and put aside for on the job consumption
by those who worked the kegging line or those who were
within reasonable proximity. Clearly the only method
of rationing was the individual's ability, capacity
and willingness to consume.
But this is not all. Because breweries extend over
a fairly large site (two or three hectares in each
case), over the years it came to be regarded as inefficient
for the men to have to knock off from their place of
work and walk to the nearest bar or leaker; it would
therefore be in everyone's better interest if there
were a number of so-called honey pots around where
people who felt that they were unreasonably distant
from the bar or leaker could have a session and these
of course proliferated. I set about to change this
situation because the bars, by whatever name, were
the power base of the shop stewards and understandably,
the accident record and the productivity record were
appalling. While I was aware that in effect unlimited
on-the-job drinking was regarded as a hard-won right,
I nevertheless advised the workforce and their unions
that it was proposed to replace the practice of drinking
at the brewery with a free issue of one carton of cans
per week for off-premises consumption. After implementation
of the scheme, all drinking on the site, other than
for medicinal purposes (and that under the control
of the occupational health and safety nurses) would
be banned and instances of drinking or drunkenness
on the job would result in disciplinary action. To
their credit the workers at the Kent Brewery accepted
the proposition. The bar was closed down and dismantled,
and the free issue of beer initiated. From that time
there was a marked improvement in all facets of working
life at the Kent Brewery.
However, at the Reschs Brewery in South Dowling Street
the men decided that their hard-won rights were fundamental.
Some weeks went by and after a strike, for reasons
unconnected with this matter, the men returned to find
that I had disconnected the bar equipment. They immediately
walked out and ultimately I was summonsed to appear
before the NSW Industrial Commission. I was castigated
before that Commission for not having conducted meaningful
discussions with the employees and for removing rights
and privileges which 'pre-dated the very existence
of this Commission'. So the bar was reconnected and
work returned. Some weeks later there was another unconnected
dispute and at this time I actually removed the bar
equipment. (In the meantime, I should add, any attempt
at discussion with the union officials or the shop
stewards proved absolutely fruitless.) Dragged back
before the Commission again, I was accused of being
almost in contempt of the Commission and ordered to
reinstate the equipment; and, as I recollect, the Company
was ordered to pay the men for the time on strike as
a result of the removal of the drinking privileges.
I said to the Bench at that time that there were reporters
outside and I would be surprised if community standards
would condone the Bench instructing an employer to
provide alcohol on the job in a potentially hazardous
work environment Some months later there was a major
dispute at the South Dowling Street Brewery lasting
8 weeks; it was not, if memory serves me right, directly
connected with the wet canteen issues. When the workers
eventually returned, they found that the whole bar
area had been bulldozed. And that, together with the
fact that they had been 8 weeks on the grass, was the
end of that issue.
Turning now to the more serious question of overmanning.
I have already alluded to fork-lift drivers; but even
more preposterous was that when I came to the brewery
in 1978, there was still one or more patmen---a patman
is the person who used to clean up after the horses
when beer was delivered by horse and dray. There had
been no horses at Kent or Resches for 20 years and
yet there were still several patmen engaged.
And although they were my friends in those days, electricians
had a special role too. It was decreed that only electricians
could start electric motors and only electricians could
turn on lights at the beginning of the day. The electricians
were required each morning to start up the plant---
which meant that the plant either had to have additional
electricians on hand or the plant had to be started
up in sequence (and, of course, if a duty electrician
was called out or failed to turn up, then the plant
didn't start).
Even at the very end, in 1983, I can recall the Transport
Workers' Union resolutely refusing to allow the introduction
of semi-trailer vehicles for beer delivery, either
from the brewery to its bulk storage-point in the western
suburbs of Sydney or from that storage-point to its
customers---because it would result in fewer drivers
being employed. On similar grounds, no covered pantechnicons
were permitted notwithstanding a major re-equipping
program and the fact that this is the standard method
of transport for beer throughout the world. It was
held by the TWU to be taking a hard-won right away
from its members---i.e. the right to spend the best
part of 40 minutes after loading to tarp up and tie
down.
I can't speak about the management attempts to get
rid of these practices in earlier days, but certainly
in my time we pursued all conventional means of negotiation
involving the State Industrial Commission as well as
direct action as illustrated by the anecdote about
the bars. While a firm stand on my part eventually
led to the removal of most undesirable practices, the
tragic truth is that directly as a result of disputes
related to their removal, the company lost about 5
per cent of market share. Being forced to modernise
to the highest degree and to shed 1,500 jobs, it was
financially weakened to such a degree that it had to
sell to an interstate competitor. That competitor has
never looked back because it bought a brewery at the
right price without any adverse work practices.
I turn now to my more recent experience which the
South East Queensland Electricity Board. The brewery
days were more fun in many respects because the practices
were so bizarre and so indefensible that even now it
seems preposterous that it took 5 years of concerted
effort, non-stop debate and very frequent strikes to
get rid of them.
The SEQEB experience is different, the practices being
less obvious but far more significant. First, custom
and practice had dictated that there were effectively
no jobs at all done by independent contract. The only
exceptions were occasional civil building works for
sub stations and structures of that sort. All other
jobs, without exception, were done by day labour and
the industry was 100 per cent unionised. Unions had
a complete monopoly on the provision of work to the
electricity industry.
To protect that monopoly there was a whole variety
of demarcation limits---demarcation limits within
a trade, demarcation limits between trades, demarcation
limits on geographic areas and demarcation limits on
functions.
First, take demarcations within a single trade. As
a tradesman, say a fitter, attained more skills in
his trade, it was held by the union that it would be
infra dig for him to apply his initial skills in his
employment. In other words, if a man had obtained experience
in a particular class of work, then he would refuse
to do any other class of work even though it was normally
done by people of his trade calling. This resulted
in the absurd situation, when a street light failed,
of a tradesman replacing the light fitting but if there
was a fault in the switch, refusing to repair that
fault; instead another tradesman would be called whose
speciality was switch repair.
And then there was the demarcation between trades
where a fitter/mechanic would refuse to do the work
of a linesman, or a truck driver who, being a member
of TWU, would not be accepted as an offsider to a tradesman
who was an electrician. As most of the truck drivers
in our employ were members of TWU, this meant that
they were de facto chauffeurs for the tradesmen; and
a crew that could have comprised 2 tradesmen and 2
assistants (anyone who had a driving licence and could
drive) had to become 2 tradesmen, 2 assistants and
a driver.
A combination of the above two demarcations meant
that typical truck gang sizes were 5; now they are
2.
The next level of demarcation was between boundaries:
if people in suburban depot A were working on a line
and it crossed into suburban district B, they would
declare that not to be part of their job and a separate
crew from district B would be called out. This was
particularly pernicious in night-time repair work when,
in border regions, crews would be called out on overtime
and minimum engagement periods to attend to a fault,
only to find that it was on the border and in the next
region. They would then return to their base and arrange
for another crew from the adjoining depot to be called
out with another minimum engagement.
A variant of this scheme was when a crew on weekend
or overtime work received a further call to another
job which they would ignore (the Nelson touch), return
to depot, clock off, and then proceed to accept the
call and of course receive a further 4-hour minimum
engagement. This widespread gem of an arrangement delayed
customer service and added to cost.
F'inally with demarcations of function, there is the
classic case in SEQEB of having an emergency repair
unit based in Brisbane covering the whole of the metropolitan
area whose job it was, when a truck hit a pole or lights
were out for any reason, to get supply back as quickly
as possible. They held that their function was to do
just that and not to effect repairs of any sort even
though, in most cases, it is practical to get the lights
on by effecting the permanent repair. These people
made it a rule that they would get the lights on by
doing temporary repairs, thus ensuring that the next
day a crew would be called out from another depot to
effect the permanent repairs.
Speaking about demarcation barriers, one of the most
remarkable examples I came across related to the fitting
and erection of a replacement pole. Without boring
you with the exact details, it took 20 men and 8 vehicles
to complete the job, sometimes spanning 2 days. I must
point out at this juncture that we had, and still have,
the most up-to-date equipment in Australia, if not
the world, to carry out this type of job. The reason
that it took 20 men and 8 vehicles was because of the
ETU's and their shop stewards' insistence that strict
demarcation lines be drawn and adhered to. Since the
SEQEB dispute, we have encouraged, within the very
strict bounds of safety, multi-skilling, and I am pleased
to report that the same job is now completed with 2
vehicles and 4 men at a maximum.
Next in the scheme of restrictive practices is what
I would call output limits and there were two instances
of these that I became aware of within SEQEB. The first
is that we have a large number of domestic kilowatt
hour meters; and whilst these have a very long life,
they need to be repaired and serviced and the people
we employed to repair them decided that a limited output
per day was appropriate to protect the old and the
slower from exploitation. We said, well if you can't
do better than that, we won't repair the meters because
it is hardly worth doing so under new technology, new
meters costing only $50 each. The output increased
by no less than 300 per cent overnight! I well recall
another instance where a graduating apprentice who
was put on the job of installing hot-water switching
devices had been told by his colleagues that he wasn't
to do more than 3 a day. This naive young man came
to see me and said that he really found the time too
boring and that 7 or 8 a day was what he would like
to do but he would be sent to Coventry if he did this
number; he forthwith resigned. This work is now done
by private contract and 10 to 12 a day per contractor
is normal.
The closed-shop system enables organised labour to
grossly abuse its position. The refusal by the majority
to work with an individual who elects not to be in
a union or who elects to do more work than the others
think reasonable is not uncommon. The best case I can
recall was in the lead up to our dispute when notwithstanding
an overtime ban, one of our supervisors went out and
effected repairs when a storm resulted in 1,000 people
in a suburban area of Brisbane being without power
on a Saturday. On the Monday (and this precipitated
the total strike) the people at that depot said that
the only basis they would come to work was if this
man were disciplined, was reduced to rank from supervisor
to standard employee and signed an undertaking never
to do such a terrible thing again. To our credit and
to the credit of the Government, we stood firm. The
man has now had a promotion and he is just the sort
of person we want to have---rather than being disciplined,
people like him should be given every encouragement.
I would like to relate another anecdote about trucks,
and as you will see it has its humorous side. As you
will be aware, there are many workers in this country
who are required to work outside, without any permanent
readily available convenience. Indeed, many sections
of our workforce, such as meter readers, are required
to walk around and from time to time they have to answer
the call of nature---and of course being reasonable
people they have little difficulty in attending to
that bodily function. But not so the ETU men in the
trucks---particularly line trucks. It was a widespread
custom to duck work and to delay jobs if one of the
group of 6 employees said that he needed to go quickly
to the toilet, something which could easily be effected
like the hundreds of thousands of outside workers today.
But no---the uncomfortable worker had to be driven
in the truck to the nearest sub station which had a
toilet. Now because the truck was gone, the whole crew
had to stop and accompany this poor chap to the nearest
sub station where it could wait for the man and probably
telephone the union from the sub station to discuss
union matters. That in itself was bad enough, but when
you multiply that by 6 on the truck and the fact that
it is possible for a worker to need to visit the toilet
more than once a day, the situation for us was ludicrous,
costly, and not obviously in the best interests of
our customers. The men and the ETU thought that this
was a magnificent tool to use with complete impunity
to thwart any attempt to work harder.
Nowadays, of course, there is a far more sensible
approach taken, one which the average person right
across the country would deem reasonable. As you may
imagine, the last thing I could be accused of being
is a supporter of the Industrial Relations Club. In
this context there is another example which I will
relate that was caused by the Club and an organisation
not properly structured or accountable. It has to do
with an allowance called 'working in the rain'. Now,
as a result of long and continuing disputes years ago,
the Industrial Commission and Court forced on us a
payment for working in the rain which resulted in up
to 6 times the rate of pay for men so employed. This
practice, of course, was extremely expensive (well
over $0.5 million a year) and it was also subject to
widespread abuse. Employees fiddled the system to such
an extent that they would claim the allowance for working
through dew-laden grass or for getting their clothes
wet through perspiration. Prior to the 1985 dispute,
attempts were made to rationalise the allowance to
a more acceptable level. However, every time an approach
was made to do this, there would be strike action or
other forms of industrial activity by the unions (particularly
the ETU) as this was a very well cherished rort supported
by the industrial system.
Nowadays things of course are a lot different. We
have decentralised industrial relations and local managers
are accountable (with the assistance of employee relations
officers) for the practices that creep into their depots
or branches. No longer can they say that they are directed
centrally; no longer can they fall behind the veil
of non-accountability.
Since the dispute, we have rationalised the payment
of rain allowance and it is interesting to note how
that took place. The employees themselves knew it was
a rort and local managers merely said to them---'for
goodness sake let's be sensible; let's get back to
what is normal and proper'---and they did just that.
We even offered to take the matter for interpretation
before the Tribunal. They did not want that because
the Tribunal has jurisdiction over us now and acts
in a far different way from the traditional Industrial
Relations Club Tribunal. I believe that every employee
knows when and where rorts exist and I am proud of
our people because they have accepted the commonsense,
fair and equitable approach to the payment of allowances
such as this. The 'working in the rain' matter is perhaps
the last of the inherited bad practices borrowed from
the past and I am glad to be rid of it. In our case,
I think the fundamental cause for all of these restrictive
practices was the abuse of monopoly power by the principal
union, the ETU. I believe that the union, if it ever
thought about these matters, felt that it was doing
the right thing by its members in creating job security
and job opportunities because it certainly resulted
in a huge level of overmanning. Although the principal
issue in the lead-up to our major dispute was the absolute
refusal by the unions to allow the use of private contractors
and to introduce contracting, the second item on the
unions' agenda was that if they did come to some agreement
about contracting, then they considered SEQEB was grossly
undermanned and wanted a commitment in advance to upgrading
the manning to what they thought was appropriate; this
was to be initiated by a job-by-job examination throughout
SEQEB.
I could go on for quite some time describing the irrational
actions of the ETU. Sometimes I have got to pinch myself
to remember what used to happen in the bad old days
because it struck me as so ludicrous that a union would
seek to control the SEQEB operations through industrial
activity. During the deregistration case (and
perhaps more importantly during the section 41(1Xd)
application by the industry against the making of a
Federal Award) many of my staff climbed into the witness
box and told the Full Bench of the Commission of the
sorts of practices and rorts that used to go on in
SEQEB . The most insidious of all, to my mind, was
ETU's closed-shop attitude. I have mentioned its abhorrence
of independent contractors; but it bears remembering
in reference to that that every type of contact was
banned---even tree-trimming where the union insisted
that the chain saw had to be wielded by a fully qualified
linesman or electrical fitter. Demarcation barriers
were set and strictly adhered to and the only reason
for this was to increase the membership of ETU---sometimes
even at the expense of their brother unions.
Regardless of what we did, there were instant bans
imposed on the sorts of things we thought reasonable
and proper. For example, we spent many hundreds of
thousands of dollars investigating the proper use of
chemicals for protecting our poles against all types
of rot and termite infestation. We set up working parties
with the unions to explain fully the nature of the
chemicals to be used and we developed safety programs
and techniques in the use of these chemicals---but
to no avail. Bans were immediately imposed regardless
of logic. The fact was that a major asset was daily
exposed to risk because the poles were not being treated.
Ludicrously, every day that poles were not so treated,
the possibility of infestation with rot or termites
became greater and there was a real possibility that
employees' lives---and the public's---would be placed
at risk if a pole fell over whilst workmen were aloft.
I have never believed that safety has any relevance
to industrial relations or vice versa. This view was
not supported by the ETU. We tried on many occasions
to get the union to support us in enforcing the wearing
of proper safety clothing. They persistently refused
to take any part in that program. When employees were
chastised for not wearing safety clothing in potential
risk situations, a ban or a strike would ensue. It
was apparent to me that the State Industrial Commission
was powerless in settling these types of disputes because
whatever recommendation came forward or whatever was
stated by SEQEB (and experienced witnesses), the unions
would merrily continue to stick to their own philosophy
of doing exactly what they wanted. It is a recognisable
fact that electricity is a dangerous commodity and
one that has to be handled with expert care and attention.
With the unions assuming control of safety and working
practices, our safety record was not an enviable one.
Now we have the best safety record of any electricity
authority in Australia. The new breed of unionism in
our Board (notably QPWA) fully supports our safety
programs and is helpful and constructive in its attitude
towards safety.
My last comment on industrial brigandry by the ETU
can be briefly summarised as follows. Whenever a problem
surfaced or a claim was made, ETU, through its shop
steward network, would immediately impose a ban or
call a strike prior to the matter being discussed with
SEQEB. Continuous hearings before the State Industrial
Commission took place in matters that should have properly
been resolved by discussion. While I've been told that
there was never an occasion where SEQEB was found to
be totally correct and the dispute eventually settled
on our terms, I don't believe this to be fair and I
don't thank the State Industrial Commission for what
they did.
At the time our major dispute climaxed, we employed
4,313 permanents; we now employ 3,000---down 1,313
or 30 per cent. In fact, today, the total reduction
in full-time equivalent is over 1,400 people because
the overmanning in the outdoor workforce, which was
of the order of 850 people, was also matched to a lesser
degree by an overmanning in the indoor workforce, and
of course as the number of employees reduces so does
the required number of support staff.
The removal of this overmanning has saved SEQEB $16m
a year; also the elimination of the work practices
to which I have referred has saved us another $9m a
year; as well, use of competitive private contract
has saved another $3.6m. Thus management changes that
were resisted by the unionised workforce have resulted
in annual savings of just on $30m and have resulted
in our having the lowest rate of price increase (3.5
per cent per annum) of any electricity authority in
Australia. Our price increases are now half that of
other authorities; and largely because of both the
lower price rise and the continuation of the savings,
our Government has given an undertaking that price
rises for the next three years will not exceed half
the Brisbane CPI. We also have a commercial and industrial
growth rate double that of other authorities.
As a consequence of our dispute, we now have a workforce
that is approximately 50 per cent unionised through
traditional unions, some further 20 per cent belong
to a company or enterprise union, and the remaining
30 per cent are non-union members.
Our industrial performance, however measured, is superior
to any other electricity authority in this country
in terms or efficiency, notwithstanding the fact that
from 1977 when we were formed to 1984 there were 35
threats of actual rationing or load-shedding of power
---an average of 5 a year. Since our major dispute in
February 1985, there has not been one minute lost to
an industrial dispute anywhere in the industry. As
a result of removing the work practices---and it was
indeed painful surgery---the morale of our employees
has skyrocketed and career paths have opened up. Our
employees generally have a real commitment to serving
the customer whereas previously they were interested
in getting all they could for themselves. Our image
with the public has improved enormously. Our growth
rate has improved and we have found an ability to reduce
real prices when other authorities throughout the country
are struggling to avoid real price increases.
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