The Victorian Employers' Chamber of Commerce and Industry (VECCI) will be holding a series of Wine Industry Forums across Victoria to firstly, alert local wineries to additional compliance requirements and costs that they may incur when Federal award coverage is extended by common rule across Victoria from early next year and secondly, to advise local wineries on the outcome of recent Australian Industrial Relations Commission ("AIRC") proceedings.

The briefing series will commence in early October 2004 at All Saints Winery, Rutherglen.

The extension of Federal award coverage by common rule means that many wineries will have to pay their staff 17.5 per cent annual leave loading, weekend penalty rates, overtime and other employment benefits for the first time.

VECCI Manager – Workplace Relations, Mr Ron Last, says that many regional wineries not already covered by Federal awards face the increased labour costs and compliance requirements from 1 January 2005.

"Employers will have little choice but to implement these changes where applicable and manage them accordingly - this being a result of legislative changes initiated by the State Government in 2003 that have resulted in industrial relations powers being transferred to the Federal jurisdiction", he said.

"The Australian Industrial Relations Commission recently confirmed that awards will operate across the Victorian workforce to impose new minimum standards on those businesses not previously covered by Federal awards.

Mr Last said that under the new system, a range of employment conditions would be mandated for affected businesses, including:

• the 17.5% annual leave loading;
• weekend penalty rates of time and a half and double time for normal rostered work;
• mandatory overtime rates;
• new redundancy benefits and other leave conditions; and
• a comprehensive range of additional employment benefits.

"These entitlements will override existing workplace arrangements to the extent that they do not match the new award conditions. They can begin to take effect from 1 January next year.

"The new entitlements have the potential to add real cost increases to the wages bill of regional employers, particularly those trading outside the traditional Monday to Friday, 9 - 5 period, as so many now are.

"Work patterns of seven-day-a-week harvesting and cellar door sales will mean that regional wineries will be particularly affected by the new wage costs", says Mr Last.

VECCI's submission has been successful in minimizing the impact of the move to Federal award coverage, gaining a number of important concessions through the recent AIRC decision.  The AIRC supported VECCI's submission that the Award be varied with respect to:

·         providing greater choice and flexibility regarding superannuation contributions;

·         providing a revised hours-of-work arrangement for employees engaged in cellar door operations;

·         phasing-in of the casual loading increase;

·         allowing a part-time employee to be offered extra hours at ordinary rates until 38 hours a week is reached; and

·         establishing an arrangement to allow time off in lieu of overtime during peak periods.

For all media enquiries, please contact:
VECCI Strategic Communications
Ph:      (03) 8662 5226
email: media@vecci.org.au