Electricity, Water and Utilities

Electricity, Water and Utilities

Long Service Leave Accrual Dispute - We Won!

Paul Lister - Tuesday, October 17, 2017

The ETU has secured a big win for Endeavour Energy members relating to Long Service Leave accruals and how they are paid after ETU Member Nick McWhirter (Snr) stood up with the support of the union against Endeavour Energy.

The dispute centered around Long Service Leave entitlements and accruals where employee's change their working hours - ie moving from a 36hr/wk to 40hr/wk in Nick's case.

This dispute commenced in May last year and was subject to a number of meetings with the Company, Fair Work Commission Conciliation conferences, Fair Work Commission Arbitration Hearing (where the decision went against Nick & the ETU) and a Fair Work Commission Appeal before a Full Bench of 3 Commissioners…where Nick and the ETU team were successful. This is a big win and a precedent setting decision as a result of ETU action.

The dispute centered around the members Long Service Leave entitlement being identified and recorded in “Hours” which didn’t equate to his entitlement of “Weeks” he had accrued in accordance with the EBA for his “Years of Service”.  This meant the member was being short changed his Long Service Leave entitlement worth approximately $9,500.00.

The Company has recorded the LSL entitlement the member had accrued while working a 36hr/wk arrangement, recorded in “Hours” not “Weeks”, and never adjusted the accrual for this period to accord with the remainder of his current “Years of Service” under a 40hr/wk arrangement.

In practical terms this meant that the member would be paid for taking his Long Service based on his current 40hr/wk wage (which is appropriate), however, because the LSL entitlement was being recorded in “Hours” not “Weeks”, and was never adjusted for his current 40hr/wk working arrangements, meant his recorded LSL would run out before his LSL entitlement accrual in “Weeks” was used (or paid out if he had left the Company) thus short changing his entitlement.

In short, in the Appeal we were able to demonstrate an error of the Commission’s Arbitration Decision regarding the interpretation of the Long Service Leave provisions in the EBA.

The Fair Work Commission Full Bench ordered (or words to the effect)

  1. The Appeal be upheld.
  2. The previous Arbitration decision be quashed, and
  3. The payment for the 36hr/wk period is to be paid at the current applicable weekly rate of pay (this being a 40 hour week).

Check your LSL Accrued Entitlement

To all members who have changed their ordinary hours of work/week you might want to check your LSL entitlement.  This can be done by dividing the LSL “Hours” recorded on your pay slip by your ordinary hours of work each week. This will identify your recorded LSL entitlement in “Weeks”. Then establish your actual LSL entitlement in “Weeks” from Clause 15 of the EBA and see if they are the same (if you have taken any Long Service Leave remember to deduct that amount).

If there is a difference, then you may wish to discuss this with your local Delegate, contact the ETU, or myself, to assist in resolving the anomaly.

In Unity
Brad Currey
Organiser