Work Arrangements in the Australian Meat Processing Industry

267 Pages·2001·1.07 MB·English

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 Commonwealth of Australia 1998
ISBN 0 646 33569 3
This work is subject to copyright. Apart from any use as permitted under the
Copyright Act 1968, the work may be reproduced in whole or in part for study
or training purposes, subject to the inclusion of an acknowledgment of the
source. Reproduction for commercial use or sale requires prior written
permission from AusInfo. Requests and inquiries concerning reproduction and
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Box 84, Canberra, ACT, 2601.
Enquiries:
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Productivity Commission
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Melbourne VIC 8003
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An appropriate citation for this paper is:
Productivity Commission 1998, Work Arrangements in the Australian Meat
Processing Industry, Research Report, AusInfo, Canberra.
Information about the Productivity Commission and its current work program
can be found on the World Wide Web at http://www.pc.gov.au
FOREWORD
Meat processing is an important manufacturing activity in Australia. The
industry directly employs around 27 500 people, and labour represents a large
proportion of the cost of production at the processing stage. As such, the cost
and productivity of labour is an important determinant of firm performance and
competitiveness.
In recent years, increased competitive pressure on domestic and export markets
has led to some rationalisation in the industry and, with a more facilitative
regulatory environment, has brought changes in work arrangements as firms
strive to improve their performance.
This study examines selected work arrangements and assesses their implications
for the performance of meat processing enterprises. The effects on employees
are also considered, and the scope to achieve further necessary change is
analysed.
The study has drawn on information obtained from detailed discussions with
industry representatives (including several meat processors), as well as previous
industry studies. The Commission appreciates the time given by participants,
including those who read and responded to a Work-in-Progress report in July.
This is one of a series of research reports requested by the Government on work
arrangements in key industry sectors. It was prepared in the Labour Market
Research Branch. Consistent with its objective to improve the information base
on key issues affecting Australia’s economic performance and living standards,
the Commission welcomes further feedback on this report.
Gary Banks
Chairman
October 1998
III
CONTENTS
Foreword III
Abbreviations XI
Glossary XIV
Key findings XVI
Overview XVII
1 Introduction 1
1.1 Background 1
1.2 Objectives 2
1.3 Scope 2
1.4 Study method 4
1.5 Study outline 9
2 Recent trends in meat processing 11
2.1 Introduction 11
2.2 The red meat production chain 11
2.3 Consumption trends 12
2.4 Supply-side issues 14
2.5 Pressures for change 22
2.6 Summary 26
V
WORK ARRANGEMENTS IN THE AUSTRALIAN MEAT PROCESSING INDUSTRY
3 The meat processing workforce 29
3.1 Introduction 29
3.2 Employment 30
3.3 Workforce characteristics 34
3.4 Workplace characteristics 36
3.5 Summary 43
4 The institutional environment 45
4.1 Introduction 45
4.2 Federal and State industrial relations coverage 45
4.3 The Workplace Relations Act 1996 52
4.4 Unregistered and informal agreements 55
5 Structure of the workforce and hours worked 57
5.1 Introduction 57
5.2 Contract of employment arrangements 57
5.3 Recruitment and promotion arrangements 67
5.4 Termination and redundancy provisions 72
5.5 Hours of work 78
5.6 Shiftwork arrangements 84
6 Remuneration and on-costs 91
6.1 Introduction 91
6.2 Wage levels 92
6.3 Tallies 93
6.4 Penalty rates 100
VI
CONTENTS
6.5 Alternative means of remuneration 104
6.6 Labour on-costs 107
7 Functions, skills and general procedures 111
7.1 Introduction 111
7.2 Tasks and skills organisation 112
7.3 Training opportunities and career paths 120
7.4 Workplace consultation and dispute resolution arrangements 127
8 Change in work arrangements 133
8.1 Introduction 133
8.2 The institutional environment and the role of government 134
8.3 The nature of change 135
8.4 The benefits of change 141
8.5 The extent and pace of change 142
8.6 Enabling change 145
8.7 Further change 148
A Meat processing awards A1
B Tallies B1
References
VII
WORK ARRANGEMENTS IN THE AUSTRALIAN MEAT PROCESSING INDUSTRY
Additional appendices — available on request from the
Productivity Commission
C The red meat industry
D The meat processing workforce
E Workers’ compensation
F Occupational health and safety
Figures
2.1 The red meat production chain 13
2.2 Domestic per capita meat consumption, 1974–96 (kg) 14
2.3 Australian cattle herd and slaughter numbers, 1976–96 15
(million)
2.4 Australian sheep flock and slaughter numbers, 1976–96 16
(million)
2.5 Change in average cattle slaughterings for Victoria in the 18
1980s and 1990s (index)
2.6 Change in average cattle slaughterings for Queensland in 19
the 1980s and 1990s (index)
2.7 Australian live exports, 1989–90 to 1996–97 (‘000) 20
2.8 Meat processing establishments, 1979–80 to 1995–96 21
2.9 Beef and veal exports by major exporting countries, 1987 23
and 1996 (kt)
3.1 Number of employees in the Australian meat processing 30
industry, 1979–80 to 1995–96
3.2 Full-time meat and meat product manufacturing 33
employment, 1995 to 1997 (thousand persons)
3.3 Working days lost per ‘000 employees, 1982 to 1996 40
VIII
CONTENTS
6.1 Real full-time average weekly earnings for meat, all 93
manufacturing and all industries 1986–96 ($1996)
B.1 Effect on total wage cost as team size changes holding B17
output constant
B.2 Effect on total wage cost and average cost per head holding B17
team size constant while output changes
Tables
1.1 Use of awards and enterprise-level agreements by largest 25 4
companies by State
2.1 Change in the number of feedlot cattle, 1996–98, March 17
quarter
2.2 Export establishments and ownership, 1979 and 1996 22
3.1 Share of meat processing employment by State (per cent) 31
3.2 Plant location and workplace size of major meat processors, 32
1996
3.3 Persons who changed employer, business or locality in 35
previous 12 months, February 1998 (per cent)
4.1 Top twenty five processors awards and agreements 48
coverage, 1997
5.1 Summary of effects of daily hire on short-term and long- 62
term firm performance
5.2 Summary of effects of part-time and casual employment on 66
short-term and long-term firm performance
5.3 Summary of effects of recruitment arrangements on short- 68
term and long-term firm performance
5.4 Examples of current redundancy arrangements in the meat 75
processing industry (awards and CAs)
5.5 Summary of effects of ordinary hours arrangements on 82
short-term and long-term firm performance
5.6 Summary of effects of shift work arrangements on short- 88
term and long-term firm performance
IX
WORK ARRANGEMENTS IN THE AUSTRALIAN MEAT PROCESSING INDUSTRY
6.1 Summary of effects of tallies on a given shift 100
6.2 Comparison of shift allowances (per cent of ordinary rates) 101
6.3 Summary of effects of overtime and penalties 104
6.4 Comparison of average workers’ compensation premium 109
rates 1997–98 (per cent of payroll)
6.5 Direct cost of workers’ compensation for meat and meat 110
product manufacturing and all manufacturing, 1992–93 to
1996–97
7.1 Summary of effects of internal mobility arrangements on 119
short-term and long-term firm performance
7.2 Persons in training by occupation, 1995–97, Australia 124
8.1 Summary of the nature of change in key work arrangements 141
B.1 Example of task classification and specification of units of B4
labour in unit tally for slaughter
B.2 Extract from beef table boning tally (individual) B6
B.3 Extract from beef boning tally (team on conveyor or rail) B7
B.4 Piece-rate systems in other industries B12
B.5 Varying team size for processing 200 cattle: the effect on B15
total wage cost under the tally
B.6 Varying throughput for team size of 15: the effect on B16
average cost per head and total wage cost
Boxes
3.1 Attitudes which can impede change 38
4.1 Negotiating changes to remuneration 51
5.1 Example of a weekly multiple - shift roster 86
7.1 Diploma of Meat Management, Victoria University of 126
Technology, Werribee
X
ABBREVIATIONS
AACM AACM International Pty. Limited
ABARE Australian Bureau of Agricultural and Resource Economics
ABS Australian Bureau of Statistics
ACCC Australian Competition and Consumer Commission
ACLE Australian Council of Livestock Exporters
ACT Australian Capital Territory
AIRC Australian Industrial Relations Commission
ALFA Australian Lot Feeders’ Association
AMC Australian Meat Council
AMH Australia Meat Holdings Ltd.
AMIEU Australasian Meat Industry Employees Union
AMLC Australian Meat and Livestock Corporation
ANTA Australian National Training Authority
ANZSIC Australian and New Zealand Standard Industry Classification
AQIS Australian Quarantine and Inspection Service
ASCO Australian Standard Classification of Occupations
AUS-MEAT Authority for Uniform Specification of Meat and Livestock
AWA Australian Workplace Agreement
AWU Australian Workers Union
BAH Booz-Allen and Hamilton
BIE Bureau of Industry Economics
CA Certified Agreement
CES Commonwealth Employment Service
CPI Consumer Price Index
CPSU Community and Public Sector Union
XI