AG817401 PR920909

AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

Workplace Relations Act 1996 s.l70LJ Agreement with organisations of employees (Division 2)

Westpac Banlring Corporation

and

Finance Sector Union of Australia (AG2002/3991)

BANK OF MELBOURNE ENTERPRISE DEVELOPMENT AGREEMENT 2002

Various employees Banking services

SENIOR DEPUTY PRESIDENT DUNCAN SYDNEY, 5 AUGUST 2002

CERTIFICATION OF AGREEMENT

In accordance with section 170LT of the Workplace Relations Act 1996, the Commission hereby certifies the attached written agreement.

This agreement shall come into force from 1 August 2002 and shall remain in force until 30 June 2004.

Printed by authority of the Commonwealth Government Printer

<Price code 72>

BANK OF MELBOURNE ENTERPRISE DEVELOPMENT

AGREEMENT 2002

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Part One - Formalities

1.1 Coverage and Parties Bound 1.2 Relationship with Awards and EDAs 1.3 Commencement and Duration

Contents

1.4 Variation ofEDA and No Extra Claims 1.5 Site Agreements

Pa1i Two- Hours of Work 2.1 Hours of Operation 2.2 What are your hours of work? 2.3 How flexible are your hours of work arrangements? 2.4 How will your hours be rostered? 2.5 Working beyond your ordinary hours per cycle 2.6 Support for Part-time Staff Members 2. 7 Support for Casual Staff 2.8 Hourly Loading Spreadsheet

Part Three - Salaries and Remuneration 3.1 Salary Rates 3.2 When will my salary increase? 3.3 Salary ranges 3.4 Are packaged staff covered by this EDA? 3.5 Employment of Specialists 3.6 Salary Rates 3.7 Westpac Employee Share Plan 3.8 Staff Superannuation 3.9 Relieving in Other Roles - Development Opportunities 3.10 Minimum Increase on Promotion

Part Four- Leave 4.1 What are your annual leave entitlements? 4.2 What are your sick leave entitlements? 4.3 What are your long service leave entitlements? 4.4 What are your parental leave entitlements? 4.5 What are your bereavement leave entitlements? 4.6 What are your family leave entitlements?

Part Five - Other Provisions 5.1 Staffing 5.2 Setting of Objectives 5.3 Guaranteed Individual Fair Treatment 5.4 Occupational Health and Safety (OH&S) 5.5 Workers' Compensation Make-up Pay 5.6 Redundancy, Redeployment and Retrenchment 5.7 Finance Sector Union and BME Relationship 5.8 Alternative Agreements 5.9 Introduction of Change 5.10 Repatriation

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5.11 Statement of Employment

Schedule A- Banking Centres Schedule B -Redundancy and Redeployment Schedule C - Salary Sacrifice ScheduleD- Salary Rates Applicable to Grades

Glossary of Terms

Signatories

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Part One Bank of Melbourne Enterprise Development Agreement 2002

Formalities

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Part One

Formalities

1.1 Coverage and Parties Bound

This is an agreement ("the EDA") between Westpac Banking Corporation trading as Bank of Melbourne ("BME") and the Finance Sector Union of Australia ("Finance Sector Union") which is made pursuant to s.170LJ of the Workplace Relations Act.

This EDA is binding on BME, the Finance Sector Union and all staff members of BME to whom it applies, in respect of staff employed by the business conducted by BME under the business name "Bank of Melbourne" in Victoria ('Bank of Melbourne Business') other than:

• staff members working in Call Centres; • staff members working in Westpac Financial Services; • staff members working in Westpac Institutional Bank; • staff members employed in the BME Childcare Centre, and • staff members employed as Westpac Financial Planners and Advisers.

These people will continue to be covered by the awards and agreements relevant to their employment.

1.2 Relationship with Awards and EDAs

This EDA (including the Appendices, which form part of this EDA) is to be read in conjunction with the Westpac Employees' Award 1998 ("the Award"), but where there is any inconsistency the EDA prevails.

This EDA replaces the Bank of Melbourne Enterprise Agreement 1998-2000.

1.3 Commencement and Duration

This EDA shall come into force on the first full pay period after the date on which it is certified by the Australian Industrial Relations Commission and shall remain in force until its nominal expiry date on 30 June 2004.

1.4 Variation ofEDA and No Extra Claims

1.4.1 Subject to the requirements of the Workplace Relations Act 1996, any of the terms of the EDA may be varied by agreement of the parties. Such a variation may only occur with the consent ofBME, the Finance Sector Union, the majority of the employees concerned and with the approval of the Australian Industrial Relations Commission.

1.4.2 Nevertheless, the Finance Sector Union undertakes that it will not, before the nominal expiry date of this EDA pursue any extra claims for any salary, loading, penalty or allowance increases unless it is agreed between both parties that such claims may be made or unless it is provided for in the ED A.

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1.5 Site Agreements

BME and the Finance Sector Union agree to continue the practice of developing separate agreements for particular sites, business units and classes of employees in order to provide a method whereby conditions of employment for the business can be more appropriately tailored to the market in which they operate. The provisions of this agreement can be superseded by other certified agreements between the parties subject to the provisions of the Workplace Relations Act 1996.

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Part Two Bank of Melbourne Enterprise Development Agreement 2002

Hours of Work

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Part Two

Hours of Work

2.1 Hours of Operation

The hours of operation apply to branches, home loan centres, banking kiosks, other retail operations and operations centres. In line with the BME's objective to increase its competitiveness, it may be necessary in some operations to operate across a broad spectrum of hours including 7 days per week and 24 hours per day, dependent on customer demand.

BME branches, home loan centres, banking kiosks and other retail operations may operate from 9 am to 5 pm, Monday to Saturday, or as otherwise agreed between management and staff.

Selected BME home loan centres, banking kiosks and other retail operations may operate from 9 am to 5 pm Sunday, or as otherwise agreed between management and staff.

2.1.1 You may be asked to work on Saturday or Sunday in designated branches, home loan centres, banking kiosks or other retail operations. If you are, you may do so on the following conditions: • all weekend work will be strictly voluntary • you may elect to work hours on Saturday or Sunday as part of your standard

hours of work per cycle • you may elect to work Saturdays or Sundays in addition to your standard hours of

work per cycle • you will be required to provide 4 weeks notice of your intention to discontinue

with work on Saturday or Sunday • your manager, where practicable, will provide you with 4 weeks notice of their

intention to discontinue Saturday or Sunday trading, or decrease staffing level requirements

In deciding who will work on Saturdays or Sundays, priority will be given in the following order: • volunteers employed in the business unit which is trading • other interested volunteers • casual employees

2.2 What are your hours of work?

The following provides the basis for the operation of flexible hours:

2.2.1 Full time staff member: Your ordinary hours of work excluding meal breaks are 152 hours per four week cycle (or 160 hours ifyou have elected to cash out Flexible Time Off in accordance with clause 2.3.3 of this EDA), up to 10 hours per day, and 50 hours per week.

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You will also be entitled to 8 hours flexible time off per 4 week cycle, unless you have elected to cash out Flexible Time Off in accordance with clause 2.3 .3 of this EDA.

Your hours may be worked between 7am and 10 pm Monday to Sunday.

2.2.2 Part time staff member: Your ordinary hours ofwork excluding meal breaks are up to 10 hours per day, 50 hours per week, from 64 hours (unless your ordinary hours prior to certification of the Bank of Melbourne Agreement 1998-2000 are less than 64, or as otherwise agreed in writing), up to 152 hours per 4 week roster cycle. Your hours may be worked between 7am and 10 pm Monday to Sunday.

2.2.3 Casual staff member: You will be employed by the hour to work any number of hours up to a maximum 152 hours per four week cycle (excluding meal breaks) Monday to Sunday. A minimum of 3 hours will apply to each assignment. Your hours may be worked between 7am and 10 pm Monday to Sunday.

2.3 How flexible are your hours of work arrangements?

While meeting business needs, BME and the Finance Sector Union understand that your hours will need to take into consideration your personal needs. Accordingly, your hours of work arrangements should be reached through a process of mutual agreement between you and your manager/supervisor/team leader.

2.3.1 Your Standard Hours Any hours agreed as part of your roster cycle will be called your standard hours. These will be agreed and set one week before the beginning of any roster cycle, with a minimum of 3 hours rostered in any one day, unless otherwise agreed between yourself and your manager/supervisor/team leader.

Standard work hours may be rostered Monday to Sunday, however, work on Saturday or Sunday, as rostered hours is voluntary and must be mutually agreed.

2.3 .2 As a full time staff member, you and BME may agree in writing to any pattern of working the 152 ordinary hours per four week roster cycle (or 160 hours if you have elected to cash out Flexible Time Off in accordance with clause 2.3 .3), subject to the following conditions:

a) your standard hours in any one day must not exceed 10, excluding meal breaks

b) your standard hours in any one week must not exceed 50, excluding meal breaks

c) you must not work for more than 6 consecutive days without a day off

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d) hourly loadings will apply where you work outside the span of hours between 7am and 7pm Monday to Friday as part of your standard hours:

• before 7am Monday to Friday • after 7pm Monday to Friday • any time on Saturday or Sunday • on a public holiday

(Refer Clause 2.8) e) your standard hours in any one cycle will be reduced by 8 hours for each

full day and 4 hours for each half day not worked because of a public holiday or because of any authorised leave (excluding approved special leave or sick leave).

2.3 .3 Flexible Time Off To provide full time staff members with the opportunity to have time available to attend to personal needs, in addition to the opportunity provided through flexible hours rostering, each staff member is entitled to 8 hours flexible time off per 4 week cycle which, subject to business requirements, may be taken in any of the following combinations:

• one block of 8 hours • two blocks of 4 hours each • less than 8 hours leaving the balance to be taken in a later cycle • where the staff member is interested, any combination of full hours up to

8 hours in a cycle

You and your manager have the responsibility for ensuring that any deferred time off is taken. If this is not taken within 12 months from the date of accrual, you will forfeit your entitlement. Where you have been requested by your manager to defer your accrual and you have not been able to access it within the 12 month period, it will be paid out at your ordinary rate of pay.

The maximum accumulated time that can be taken in any one roster cycle is 40 hours. Because of the impact large leave demands can have on a business unit, access will depend upon the needs of the business but will be covered by the GIFT.

Your entitlement to Flexible Time Off will be reduced on a pro-rata basis for all absences from work during a cycle, with the exception of absences due to public holidays, time off, jury service, compensating leave, authorised industrial leave and leave in lieu of traveling time, on the basis of 3 minutes for every hour absent, which will accrue until a total of 8 hours is accumulated, resulting in 8 hours time off being forfeited.

When you leave the BME, or change mode of employment, your accrued time off will be taken into account. The entitlement will be pro rated when a cycle is incomplete. At such time, the time off may be taken, or where this is not possible, may be paid out at single time.

If during a roster cycle, due to business needs you are requested to defer your time off until a future cycle, you have the option to request overtime payment at double time for the length of the planned time off, or alternatively accumulate the time to be taken at a future point.

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BME may offer you a cash out of your Flexible Time Off for a 12 month period. If you accept this offer, you and BME will agree in writing that you will cash out your Flexible Time Off for a 12 month period in exchange for a 4.8% increase in base salary for that period, which will be paid to you as a fortnightly allowance. BME will not coerce an employee to accept the offer to cash out Flexible Time Off.

At the expiry of an agreement to cash out Flexible Time Off referred to above, BME may offer you a further agreement to cash out Flexible Time Off for another 12 month period. IfBME does not offer you a further agreement to cash out Flexible Time Off, the payment of your fortnightly allowance payable under the agreement will cease upon expiry of the 12 month period.

Upon transfer or promotion, you or BME may terminate the agreement to cash out Flexible Time Off made pursuant to this clause prior to the expiry of the 12 month period.

2.3.4 As a part time staff member, you and BME may agree in writing to any pattern working from 64 hours (unless your ordinary hours prior to certification of the Bank ofMelbourne Enterprise Agreement 1998-2000 are less than 64, or as otherwise agreed in writing) up to 152 ordinary hours per four week cycle, subject to the following conditions:

a) your standard hours in any one day must not exceed 10, excluding meal breaks

b) your standard hours in any one week must not exceed 50, excluding meal breaks

c) you must not work for more than 6 consecutive days without a day off d) loadings will apply where you work outside the span of hours between

7am and 7pm Monday to Friday as part of your standard hours: • before 7am Monday to Friday • after 7pm Monday to Friday • any time on Saturday or Sunday • on a public holiday

(Refer Clause 2.8) e) if a public holiday or any authorised leave (excluding approved special leave

or sick leave) falls on a day where you are regularly required to work, your standard hours in any one cycle will be reduced by your standard rostered hours for each full day and half the standard hours for each half day not worked.

2.4 How will your hours be rostered?

The following process of setting and varying standard hours is intended to harmonise business and operational needs of the BME with your personal needs in relation to your individual hours of work. The emphasis is on reaching agreement between you and your managers/supervisors/team leaders on your hours of work in the spirit of mutuality.

Mutuality works best when staff, and those responsible for coordinating the roster, approach it with flexibility and with consideration and understanding of all the needs. Mutuality means working together to come up with a rostering solution which

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considers both the needs of the BME to meet customers' expectations and individual staff member's needs.

2.4.1 The hours of work arrangements will be reached through a process of mutual agreement.

Managers in consultation with you, are responsible for rostering hours within each workplace. Hours and days of work are to be rostered taking into consideration the following:

• the aim of rostering will be to best meet the business needs of the workplace whilst considering your personal preferences, in an environment of trust, and open, honest communication

• the provision of customer service • that any rostering or changing of standard hours will be subject to the provisions

of mutuality.

Where mutual agreement cannot be reached, both you and your manager should seek advice of other team members, and other sources of support, to identify all possible options until a resolution can be reached.

2.4.2 Setting a roster In each roster cycle, the team should discuss the staffing numbers and roster times required to meet customer's needs and expectations. This roster should be agreed at least seven days in advance of the roster commencing.

The business requirements will determine the roster hours available, staff are required to provide their preferences for filling in the roster times. In the event that not all times are filled by preferences, your manager will appeal to the whole team to fill the roster, providing an opportunity for all staff to review their preferences.

Having exhausted the rostering process with the team, the team should then consider approaching other work areas (through your manager/supervisor/team leader) for assistance in filling their roster.

If the process above has been exhausted and you still haven't resourced the roster to ensure the BME is able to meet the needs and expectations of customers, your manager/supervisor/team leader will allocate roster times equitably across the team, taking into account personal circumstances, to ensure the roster is resourced to meet customer needs and expectations. If you are dissatisfied with the outcome of this process you have recourse to the GIFT.

2.5 Working beyond your ordinary hours per cycle

The BME recognise the need for staff to work beyond ordinary hours on occasions. The BME is committed to recognising the additional flexibility this provides in meeting our customers needs.

If you are in receipt of a salary which exceeds$ 49 993 per annum (from October 2001), $51 993 (from October 2002) or 54 073 (from October 2003) or have accepted a remuneration package you are not eligible to be paid overtime.

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The only exception to this is if you have not accepted a remuneration package, but are in receipt of a salary which exceeds $49.994 (from October 2001), $51 994 (from October 2002) or $54 074 (from October 2003) per annum, and are specifically requested to work on a Saturday, Sunday or public holiday, in addition to your rostered hours. In calculating overtime rates the maximum salary used is $49,993 (from October 2001), $51 993 (from October 2002) or 54 073 (from October 2003) per annum (or as varied from time to time).

All overtime must be approved by your manager/supervisor/team leader, prior to being worked.

2.5.1 What are the Conditions? Overtime is calculated at your ordinary rate of pay and will be paid for all work performed outside of your ordinary hours (excluding meal breaks)· as follows:

Full time staff members: • in excess of 10 hours per day • in excess of 50 hours per week • in excess of 152 hours per four week cycle, or up to 160 hours where you defer

all or part of your time off or have cashed out your Flexible Time Off in accordance with clause 2.3.3.

Part time staff members: • in excess of 10 hours per day • in excess of 50 hours per week • in excess of 152 hours per four week cycle

2.5.2 Overtime will be paid at the rate of time and a half for the first three hours in any four-week cycle and double time thereafter.

If you work on a public holiday you will be paid a minimum payment of2 hours overtime. This will be paid at double time on public holidays which are not State Based Public Holidays i.e. four hours at single time, or double time and a half on State Based Public Holidays (as defined in clause 2.8) i.e. five hours at single time.

Overtime worked on a Saturday or Sunday will be paid at the rate of double time.

2.5 .3 You may elect to take time off in lieu of overtime, at the rate of hour for hour, to be taken either later in the same cycle or in a later cycle. Such time must be taken within six months from the date of accrual.

Where you have not taken time off in lieu of overtime within 6 months of accrual, you may agree with your manager to extend the period for which it can be taken. Where you have not taken the time off within 12 months from the date of accrual, it will be paid at your ordinary rate of pay, except in the circumstances where for business needs, your manager requests that you not take the time off. In this instance, the overtime will be paid out at the appropriate overtime rate.

2.5.4 Part time staff member: You may be requested and agree to work in excess of your standard hours (agreed roster) during a roster cycle, and will be paid on the following basis:

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• Payment for standard hours (agreed roster) will be at your ordinary rate of pay • Payment for the first 15 additional ordinary hours will attract a 25% loading • Payment for subsequent additional ordinary hours will attract a 50% loading • Overtime rates will apply in accordance with Clauses 2.5.1 and 2.5.2.

2.5.5 Casual staff member: You may be requested and agree to work over your agreed standard hours during a roster cycle, and will be paid on the following basis:

• single time for each hour worked in addition to your standard hours up to and including 152 hours

• time and half for the first 3 hours worked in addition to 152 hours • double time for any additional hours worked for the remainder of the roster cycle • double time for any overtime worked on a Saturday, Sunday, or public holiday. • double time and a half for State Based Public Holidays as defined in clause 2.8.

2.5.6 Meal Breaks and Meal money: BME is committed to ensuring that those staff who are required to work in excess of 5 hours, are provided with a suitable meal break, provided that if standard hours are less than 5.5 hours on a particular day no meal break need betaken.

Meal breaks will be rostered between 11 am and 3 pm.

The meal break is to be no more than one hour but may be reduced by mutual consent to no less than half an hour, and will be structured to meet the operational requirements of the workplace to ensure customer service is not impacted

If you work in excess of 10 hours (exclusive of meal breaks) on any rostered day, Monday to Saturday, you will be entitled to $10.17 meal money (as varied from time to time) unless a suitable meal, satisfactory to you, is provided by the Bank.

If you work in excess of 5 hours on any Sunday or public holiday you will be entitled to $10. 1'7 meal money (as varied from time to time) and a further $10.17 if you are required to continue work beyond 10 hours on that day.

2.5.7 Safety in travelling to and from work

BME appreciates employees' needs to have safe conduct to and from work. Consideration will be given to any requests an employee makes in respect to personal safety in travelling to or from work at any time during the day. If an employee starts or ceases work at a time when the usual or reasonable means of travel are not available, BME shall at its expense, convey the employee to or from his/her home.

2.6 Support for Part-time Staff Members

The BME is committed to, and the Finance Sector Union supports the objective of, creating a work environment where all staff have equal opportunities. The Bank is committed to providing part time staff members with the same opportunities as full

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time staff members including personal and professional learning and development, interesting and challenging work, and remuneration systems.

The BME and Finance Sector Union acknowledge that as a group part time staff are an important component of the BME's workforce. To enable the BME to better match its resourcing to its business needs and in line with its distinctly regional focus, the BME and Finance Sector Union agree that there will be no restrictions in relation to the proportion of part time staff members that may be employed.

For those of you who have accessed the option of a 20% loading in exchange for leave benefits, this option will be continued. You will have the opportunity to convert to benefits once only from this point. This option will not be made available to those existing staff members who have not already accessed it, nor to new part time staff.

2.7 Support for Casual Staff

Full time and part time employment are the predominant modes of employment of the BME. As a casual staff member you have been engaged in order to supplement full time and part time employment and not to replace full time and part time staff on an ongoing basis.

Casual staff may be employed in order to cover:

• peak workloads • unexpected or unforeseen circumstances • short term shortages.

A minimum of 3 hours will apply to each assignment.

As a casual staff member you will receive a loading of 20% on the appropriate minimum hourly rate for the grade of work being performed. The 20% loading is in lieu of all other paid leave entitlements including annual leave, sick leave, long service leave, paid maternity leave and public holidays. Any overtime or other loadings will be paid on the hourly rate which includes the 20% casual loading. Your services may be terminated by either party with one hour's notice, provided that every effort will be made to give the respective party notice as far in advance as possible.

2.8 Hourly Loading Spreadsheet

Hourly loadings will apply for those hours worked:

• before 7am Monday to Friday; • after 7pm Monday to Friday; • anytime on Saturday or Sunday • anytime on the public holidays applicable in the state of Victoria referred to

in clauses 15.1.2, 15.1.3 and days substituted for those days under 15.1.4 of the Award ("State Based Public Holidays" or "SBPH");

• anytime on all other public holidays ("PH").

if these hours form part of a staff member's standard rostered hours.

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Hours Mon Tues Wed Thur Fri Sat Sun PH SBPH 00.00 - 01.00 100% 30% 30% 30% 100% 100% 100%

Loadings do not apply during these shaded hours

This hourly loadings table is applicable to all salaried staff.

All packaged A2-A3 staff will be eligible for loadings paid on Saturday, Sunday and Public Holidays (including SBPHs).

The 15% proof processing allowance will continue to apply in lieu of this hourly loading schedule. Discussions will be held between the parties to consider options, including the incorporation of this allowance into individuals' salaries.

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Part Three Bank of Melbourne Enterprise Development Agreement 2002

Salaries and Remuneration

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Part3

Salaries and Remuneration

3.1 Salary Rates

$38,332-$56,987

$49,994-75,304

from $70,378

* These salary ranges do not apply to packaged staff.

The salary rates applicable to the grades referred to in this clause are set out in ScheduleD.

Within 12 months of the date of certification of this EDA BME in consultation with the Finance Sector Union will review gradings, pay and work design, and deliver to staff an alternative remuneration and grading system incorporating:

• a structured method of progression through the ranges of the new levels • a framework for determining salary bands based on the complexity of the

role.

3.2 When will my salary increase?

3 .2.1 The BME is committed to providing salary increases which reward staff for their efforts and which align to industry standards.

The following salary increases will apply:

(a) first pay period in October 2001: 4% (b) first pay period in October 2002: 4% (c) first pay period in October 2003: 4%

3 .2.2 If you are undergoing formal performance counselling you will have the salary increase for that year deferred until performance reaches an acceptable level.

(a) Performance counselling refers to the process used by BME to manage the performance of employees.

(b) For a particular salary increase to be deferred, a formal written performance counselling must have occurred in the period May-July of that year. Specific agreed objectives need to be met in order for formal counselling to cease for the purposes of this sub-clause. The

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relevant salary increase from clause 3 .2.1 will then be applied as at the date counselling ceases.

(c) BME will determine which employees will have their salary increase deferred at least one month prior to the date the increase is to be paid.

(d) When salary increases are deferred:

3.3 Salary ranges

• BME will notify the Finance Sector Union of the names of affected employees who have consented to their names being provided.

• BME will supply to the Finance Sector Union the number of employees affected by this sub-clause and the major business units in which they work.

Changes to the salary ranges reflected below will become applicable from the first pay period in October each year.

3.3 .1 Subject to clause 3 .2.2, all full time staff members who permanently perform duties in Bands A and B, and non packaged staff in Bands C and D shall not be paid less than the following salary rates:

3.3.2 Subject to clause 3.2.2, all part time staff members who permanently perform duties in Bands A and B, and non packaged staff in Bands C and D shall not be paid less than the following salary rates:

3.3 .4 The base rates for casual staff employed by the BME will be increased as follows:

• 4% effective October 2001 • 4% effective October 2002 • 4% effective October 2003

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Casual staff who are paid above the base rate will not automatically receive an increase under this ED A. The onus will be upon the business to decide whether all, part or none of the increase flows on to casual staff paid above the base rate. The decision should be based on the performance of the staff member.

3.4 Are packaged staff covered by this EDA?

BME offers two package structures dependent on level of the role. All staff members in positions graded A2 or higher will have the option of accepting a remuneration package. This will be on an offer and acceptance basis.

Acceptance of a package is purely voluntary. An employee is not, and will not be, under any coercion to accept an offer of a remuneration package and its associated conditions. Ifthe employee declines the offer, the decision will not jeopardise the employee's conditions of employment.

3.4.1 Package GROUP ONE: A staff member earning at least $38 332 (from October 2001), 39 866 (from October 2002) or 41 461 (from October 2003) per annum, or equivalent pro rata part time salary, (Grade A2/A3),, who is offered and accepts a remuneration package will be covered by this EDA except for the following clauses:

Clause 2.1 Clause 2.2 Clause 2.3

Clause 2.4 Clause 2.5 Clause 3.3 Clause 4.7

Hours of operation What are my hours of work How flexible are your hours of work arrangements (exception - loadings paid for work on Saturday , Sunday, Public Holidays and State Based Public Holidays) How will your hours be rostered Working beyond your ordinary hours per cycle Salary Ranges Leave in Lieu of Traveling Time

And any other provisions of this EDA where packaged coverage is expressly excluded.

3.4.2 Package GROUP TWO: All staff members earning at least $49 994 (from October 2001), 51 994 (from October 2002) or 54 074 (from October 2003) per annum, or equivalent pro rata part time salary, who are offered and accepts a remuneration package will be covered by this EDA except for the following clauses:

Clause 2.1 Clause 2.2 Clause 2.3 Clause 2.4 Clause 2.5 Clause 3.2 Clause 3.3 Clause 4.7

Hours of operation What are my hours of work How flexible are your hours of work arrangements How will your hours be rostered Working beyond your ordinary hours per cycle When will my salary increase? Salary Ranges Leave in Lieu of Travelling Time

And any other provision of this EDA where packaged coverage is expressly excluded.

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All packaged staff members will be given the opportunity to review annually the particular mix of package items elected on promotion or lateral transfer. Any costs associated with reverting from the package basis of remuneration to a salaried arrangement will be borne by the staff member concerned.

3.4.3 If an employee accepts a Package Group Two prior to 15 January 2003, the employee may elect to cease being on a package by 15 January 2003. After 15 January 2003, an employee cannot elect to cease being on a package unless BME offers the employee an alternative arrangement.

3.4.4 If an employee accepts a Package Group One, the employee will be given the opportunity to review the particular mix of package items elected, and to review his or her decision to have a package at all, annually and on promotion or lateral transfer.

3 .4.5 If an employee changes his or her mode of employment, he or she will have the opportunity to review his or her decision to have a package.

3.4.6 IfBME offers a part time employee a Package One or Package Two, it will be on a pro rata basis. This will be based on the employee's part time proportion at the date of the offer, and then at 1 January of each year. Any change in hours during the year will be reflected only in the employee's salary, and not the employee's other package components.

3.5 Employment of Specialists

3.5 .1 Employment of specialists and transfers of non-specialists to specialist roles will be on an offer and acceptance basis. Any offer will be in writing and contain details of which EDA and Award provisions are applicable to the role. However, offer and acceptance will not apply if an employee is redeployed into or out of a specialist role from in or out of a specialist role which is a "Directly Comparable Position" as defined in clause 3.2 of the Redundancy and Redeployment Agreement in Appendix 1.

3.5.2 Specialists will have their salary adjustments determined by market rate review not less than once every 12 months.

3.5.3 Specialists who are on a salary package in accordance with clause 8.7 of the Award will not be paid less than one dollar below the minimum Award rate of the M1 grade.

3.5.4 "Market rate review" means a review of an employee's remuneration with reference to comparable roles elsewhere. The market rate review will take into account, where relevant:

(a) finance sector enterprise agreement settlements and other market movements; and

(b) movements in other specific market areas.

3.5 .5 If any specialist has a concern immediately following their annual review about their market rate or their market review, he or she may request from his or her immediate manager an explanation of:

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(a) the process adopted in determining market rate outcomes; (b) the type of industry and general locations reviewed; and (c) the period covered by the market review.

3.5 .6 If a specialist who is not on a salary package has a concern immediately following their annual review about their market rate or their market review, their role will be evaluated using the Hay Job Evaluation process. Subject to this evaluation, the resultant Hay point score will be compared to the relevant Westpac grade. If the specialist's rate is below the minimum rate of that grade in this EDA, an increase will be applied to ensure that the specialist's rate is not less than the minimum. If the specialist's rate is equal to or more than the minimum rate of the grade in this EDA, BME does not need to apply an increase.

3.5.7 This clause does not apply to an employee who:

(a) receives salary and/or salary increases through Work Organisation models; or

(b) is not employed as a specialist.

3.6 Performance Pay

The BME and the Finance Sector Union recognise the value to the Bank and the individual of rewarding individual performance. The BME may make discretionary payments to staff members based on their performance. To ensure performance based pay operates in a fair and equitable manner, the BME will apply the following principles in making decisions about rewarding individual performance:

• criteria for participation will not be discriminatory • performance standards will be easily understood • performance will not be arbitrarily changed during their effective term • performance standards will be adjusted for periods of absence by the staff

member. Annual leave, sickness or other periods of extended leave must be factored into the establishment and design of variable pay schemes

• payments will be made in a timely manner and on achievement of agreed standards.

3. 7 Westpac Employee Share Plan

In addition to the contents of this EDA, Westpac provides employees covered by this EDA with other substantial benefits as part of a comprehensive employment package. One of these benefits is the Employee Share Scheme.

Westpac, its employees and the Finance Sector Union acknowledge that this benefit is not regulated by, nor forms part of, this EDA. The terms or continuance of this benefit may be varied from time to time by Westpac without reference to this EDA however, Westpac will advise the Finance Sector Union of any decisions or alterations deemed necessary. This in no sense means explicitly or implicitly that the Westpac Employee Share Plan will be the subject of negotiation but the benefit is a determinant ofWestpac.

The share scheme will deliver shares to all eligible full time and part time employees.

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3.8 Staff Superannuation

The employer contribution to the accumulation benefits section will be set at 9% of superannuation salary from the date of commencement of the EDA.

Additionally and from the same date employer contributions of 9% will also be paid on shift and proof allowances and incentive payments received by employees who are members of the WSSP; capped at the maximum contributions base.

At the end of 1999 BME increased packaged employees' Superannuation Notional Salary from 79.5% to 100% of package value for those employees who are members of WSSP. That increase applied from I January 2000.

3.9 Relieving in other roles - Development Opportunities

The BME encourages staff to seek meaningful relief opportunities in roles other then their own to enhance their development. Recognition will be made for undertaking relief in terms of the following two scenarios:

• If you are given the opportunity to relieve in a role that is at a higher level for a period of at least 5 consecutive working days you will be paid at the base salary rate for the grade of the position relieved, (unless your salary already exceeds this figure), for the total period of the relief. Any hand over period will not be counted as working in the higher position.

• Alternatively, if you are given the opportunity to relieve in a role that is at a higher level for a minimum 25 days( worked in any combination of days) in a 6 month period you will be paid at the base salary rate for the grade of the position relieved, (unless your salary already exceeds this figure), for the total period of the relief. Any hand over period will not be counted as working in the higher position

If you relieve in a lower grade position your salary will not be reduced whilst relieving.

At the conclusion of your relief you will be provided with performance feedback and your manager/supervisor/team leader will work with you to establish a development plan based on this feedback.

Where you are in a position for more than six months, your manager will undertake to review the circumstances in relation to the role. Circumstances may include, but not be limited to, a reclassification of the position, an assessment of your suitability for the role permanently, or whether the position needs to be advertised.

3.10 Minimum Increase on Promotion

In recognition of promotion to a higher grade an employee will receive a salary increase of not less than 4% or to the new grade minimum, whichever is the greater, provided that the increase does not take their salary above the ceiling of the new grade.

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This clause does not apply to employees accepting or in receipt of a remuneration package as defined in clause 3.4 of this EDA.

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Part Four Bank of Melbourne Enterprise Development Agreement 2002

Leave

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Part Four

Leave

4.1 What are your annual leave entitlements?

4.1.1 After the completion of 12 months continuous service with BME:

• a full time staff member will be entitled to 152 hours (20 days) paid annual leave, exclusive of public holidays

• a part time staff member will be entitled to equivalent pro rata paid annual leave, exclusive of public holidays, paid at the average ordinary hours worked per week in the last 12 month period

4.1.2 Annual leave will accrue on a pro rata basis from the date you enter service until 31 December ofthat same year. Your annual leave will then be calculated each year from 1 January until31 December.

4.1.3 · Your manager may allow annual leave to be taken before your leave has accrued up to 6 months in advance of accrual. This consent will be given with consideration to the needs of the business, staffing levels and your needs. Where you have taken leave in advance and subsequently separate from BME, BME will have the right to demand or deduct from moneys due, the amount equivalent of overpaid annual leave.

4.1.4 Alternative methods of taking annual leave

BME's objective is to accommodate your leave preferences wherever possible through the following principles:

(a) In normal circumstances leave should be taken during the 12 months following the date of accrual;

(b) In planning leave, the following process will occur:

• Managers will not unreasonably decline your application for annual leave. However, your request will need to be balanced against the requests of other employees within the work group and the needs of the business.

• Managers will respond to a request for leave as soon as is practicable.

• Managers should also endeavour to accommodate requests from full time staff who wish to arrange their Flexible Time Off or rostered days off in order to extend their period of annual leave.

• Where practicable, managers should ensure that during each 12 month period you take at least one period of leave where they are absent for a minimum of 1 0 consecutive working days.

• Managers must discuss with their direct reports proposed leave schedules, relief opportunities and training requirements and encourage input from you as to how

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situations may be resolved where BME has been unable to accommodate preferences.

• Where you transfer to another workplace, your new immediate manager must discuss with you proposed leave dates and pre-booked commitments. Every effort should be made to accommodate leave arrangements where practicable.

• Managing ofleave accruals will form part of managers' objectives.

(c) The Finance Sector Union agrees to allow BME to offer a once off cash out of annual leave entitlements to employees in order to assist BME in managing downcurrent accrual levels. To this end, subclause 20.3.3 of the Award will be overridden unti130 June 2004.

(d) Subject to clause 4.1.4 (e) if:

(i) you have a minimum accrual of 8 working weeks' annual leave during the life of this EDA, and

(ii) you take a period of annual leave of not less than 2 weeks by agreement with your manager;

then you may (providing your manager approves) apply in writing to receive a cash payment in lieu of all or part of your remaining accrued annual leave no more than equal to, and no less than 50%, of the period of annual leave taken in time. This amount will be paid at the time you take the annual leave.

(For example, if you take 4 weeks' annual leave, you may cash out a minimum of2 weeks and a maximum of 4 weeks.)

(e) You may exercise your right under clause 4.1.4( c) on one occasion during the life of this EDA.

(f) The gross cash payment under clause 4.1.4( c) will be equal to the gross payment you would have received had you taken the annual leave, including applicable loadings as set out in clause 20.2.1 ofthe Award, and clauses 2.8 and 4.1.5 ofthis EDA. lfyou are packaged, it will be calculated on the basis of the package value.

(g) BME may inform you of your right to cash out annual leave under clause 4.1.4( c). However, BME must not initiate an application for the cash out of annual leave or coerce you into applying for such cash-out.

(h) BME agrees to:

• Inform all employees when they have accrued more than 4 weeks' annual leave and encourage you to make arrangements to take that leave. You will be able to view this information once Westpac Employee Self Serve is fully operational. The appropriate manager will also be periodically notified to assist you in actively managing leave;

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• Provide written advice on 31 January 2003, 30 October 2003, and 1 April 2004 to the Finance Sector Union on accrued annual leave and numbers of employees who cash out annual leave for each major BME business unit in which more than 100 employees are employed.

4.1.5 In addition to paid annual leave, you will receive a leave loading for the period of leave which will be the greater of

• 17.5% of your ordinary rate of pay, provided that the maximum salary applicable is the average weekly total earnings of all male employees published by the Australian Bureau of Statistics for the August immediately before the calendar year in which the leave accrued or

• the total of the shift loadings you would have earned for the work performed in ordinary hours according to your roster if you had not been on leave, but excluding any public holiday penalties.

Your full annual leave loading entitlement as determined by clause 4.1.5 of this EDA may be paid annually, regardless of the timing or amount of leave you take in any year, or when it is taken.

Payment will be made in the pay period immediately prior to Christmas each year.

Leave loading will only be paid out, on termination of employment, for previous year's annual leave, not for the current year's annual leave.

4.2 What are your sick leave entitlements?

The following clauses outline the provision of leave for when you are unable to perform our duties on account of illness which is not covered by Workers' Compensation or Total and Temporary Disablement.

4.2.1 As a Bank of Melbourne Limited staff member who has accrued sick leave in accordance with the Bank of Melbourne EF A provisions from 14 July 1995 up to 13 July 1998, 50% of this accrued leave will be preserved. In accordance with the EF A, upon your separation from the BME the preserved amount will be paid to you. The remaining 50% will remain available for you to access when sick.

You may choose to access your preserved sick leave component rather than wait to cash out on separation. If so the remaining provisions of this clause will apply.

From 14 July 1998 you will commence accrual of sick leave at the applicable rate detailed in clause 4.2.2.

4.2.2 You will be entitled to sick leave on a pro-rata basis of 15.2 hours at the beginning of every three months during your ftrst year of service. In subsequent years of service you will be entitled to sick leave on full pay as follows:-

1. 2.

second year of service: thereafter per year:

76 hours 91.2 hours

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For the purposes of this EDA, year shall mean 12 calendar months from your anniversary of service.

Sick leave will accumulate to a maximum of 1976 hours for full time staff members, pro rated for part time staff members.

4.2.3 To ensure customer service is not impacted, it is your responsibility to inform your manager of your inability to attend work. The estimated duration of your absence should also be provided at this time. The medical certificate requirements set out in clause 22.3.4 of the Award apply, except that clause 22.3.4 (a) of the Award is replaced by the following:

• absence immediately before or after a public/statutory holiday

4.2.4 As a part time staff member you are entitled to sick leave on a pro-rata basis equivalent to the number of hours for your first, second and subsequent years of service rounded to the nearest hour as full time staff.

4.2.5 You may use accrued sick leave entitlements for planned health-related appointments which are appropriately supported by medical evidence. The maximum total sick leave entitlement which can be used for this purpose is 5 occasions per year, to a maximum of 3 8 non cumulative hours per year (proportionate for part timers).

a) "Medical evidence" means:

(i) a certificate provided by a registered medical practitioner or dentist, optometrist, optician, radiographer, physiotherapist, chiropractor or podiatrist; or

(ii) a health practitioner other than a registered medical practitioner in circumstances where the employee has either a written referral to that health practitioner by a registered medical practitioner or obtains a registered medical practitioner's written statement that the treatment provided was necessary.

b) Sick leave for health-related appointments will be granted in hours.

c) You should give at least two weeks' notice of a health-related appointment where practicable or a lesser period if agreed between you and your manager.

d) Your manager may agree at his or her discretion to grant more than 3 8 hours (proportionate for part time employee) accrued sick leave in a year for this purpose.

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4.2.6 You may also use accrued sick leave entitlements to accompany your pregnant partner or spouse to pregnancy related medical appointments. The maximum total sick leave entitlement which can be used for this purpose is 8 non cumulative hours per year. This is in addition to the 38 hours available under clause 4.2.5.

4.2.7 Timing of leave under sub-clauses 4.2.5 and 4.2.6 will be at the discretion of your manager. The manager's primary consideration will be business requirements and consent will not be unreasonably withheld.

4.3 What are your long service leave entitlements?

For staff previously employed by the Bank of Melbourne Limited, the long service leave provisions detailed in the Bank of Melbourne EFA 1995, will continue to prevail. These equate to 13 weeks after 10 years' service, then six and one half weeks for each subsequent five years of service.

All remaining employees as at the date of certification of the Bank of Melbourne Enterprise Agreement 1998- 2000 will accrue long service leave based on the Westpac Employees' Award 1998 as varied from time to time.

The amount of long service leave to which you are entitled is as follows:

4.3.1 Ten years service You are entitled to take eight and two third weeks long service leave after ten years of service.

If you have completed ten but less than fifteen years of service and your employment is terminated: • by the BME for any reason other than misconduct; • by the staff member's death or; • by the staff member for any reason,

you will be entitled to payment in lieu of leave based on an amount proportionate to thirteen weeks for fifteen years service.

Long service leave is to be granted and taken, and except where specified in this EDA, no payment in lieu of long service leave is to be made.

4.3 .2 Fifteen years service On the completion of 15 years service you shall be entitled to 13 weeks oflong service leave.

After the accumulation of 15 years service, for every subsequent 10 years employment, you will be entitled to 8 2/3 weeks of leave.

4.3.3 On termination of your employment you will be paid out the proportionate amount of remuneration based on thirteen weeks for fifteen years service for the period since you last became entitled to long service leave.

4.3.4 The BME commits that any staff member taking long service leave will be able return to the role held prior to commencing leave unless that role is no longer available, in which case the staff member will be placed in an equivalent role.

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4.3.5 If you have completed at least five, but less than fifteen years' service with BME, and your employment is terminated:

(a) by your death; or

(b) by your resignation due to the payment of a total and permanent disablement benefit under the applicable Westpac superannuation scheme;

a payment will be made to you on a proportionate amount on the basis of thirteen weeks for fifteen years' service.

4.4 What are your parental leave entitlements?

Clause 23 of the Award applies to parental leave, with the following modifications:

(a) Six weeks' paid parental leave is available to both male and female employees when an employee takes parental leave as the primary care giver of the child.

(b) For the purposes of this clause, "primary care giver" means the individual with the sole responsibility for providing care to the child within the family home during normal business hours.

(c) For the purposes of this clause, "child" means the employee's child under the age of one year, except in the case of adoption. In that case, "child" means a person under the age of five years who is placed with the employee for the purposes of adoption, other than a child or step-child of the employee or his/her spouse or a child who has previously lived continuously with an employee for a period of six months or more.

(d) If an employee takes parental leave to be the child's primary care giver, his/her first 6 weeks of parental leave will be paid leave. Alternatively, an employee may take the first 12 weeks of parental leave as paid leave on half pay. Half pay cannot be granted for less than the full12 week period. If the employee is a part time employee, the employee's payment will be calculated using his/her average weekly hours over the previous 12 months. The period of paid parental leave, whether on half or full pay, forms part of the maximum 52 weeks' parental leave entitlement under clause 23 of the Award.

(e) If an employee takes paid parental leave on half pay in conjunction with long service leave or annual leave, the employee must also take the long service leave or annual leave as paid leave on half pay. If the employee takes paid parental leave on full pay the employee must also take annual leave and long service leave on full pay.

(f) Where both parents are employees of Westpac or BME, paid parental leave will only be paid to one parent.

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(g) Parental leave is available to only one parent at a time (i.e the primary care giver), except that both parents may simultaneously take leave in the following circumstances:

• For maternity and paternity leave, an unbroken period of one week's leave at the time of the birth of the child. For a parent who is not the primary care giver, this will be unpaid leave. However, if that parent has accrued sick leave entitlements, these may be used for a period of up to 3 8 hours.

• For adoption leave, an unbroken period of up to three weeks at the time of placement ofthe child. For a parent who is not the primary care giver, this will be unpaid leave. However, if that parent has accrued sick leave entitlements, these may be used for a period of up to 38 hours.

4.5 What are your bereavement leave entitlements?

The intention of bereavement leave is to provide you with a period of paid leave following the death of a family member. The BME recognises that staff may require additional leave in certain circumstances and is committed to being flexible when responding to requests for leave.

4.5 .1 You shall be entitled to two days paid leave on each occasion of the death of a family member. In addition, you may access your family leave entitlements to take your total amount of leave to five days.

4.5.2 For the purposes of this entitlement, a family member is a member of your immediate family, including: • your spouse, de-facto spouse and de-facto spouse of the same sex; • daughter, son, parent, parents-in-law, brother, sister, brother-in-law, sister-in-law,

grandparent/in law, grandchild.

You will be entitled to a maximum of a further two days leave if the death of the family member occurs: • outside Australia and you must travel outside Australia to attend the funeral; • in any other Australian state or territory and you must travel to one of these states

or territories to attend the funeral.

4.6 What are your family leave entitlements?

The BME recognises the need for staff to care for immediate family members.

If you are responsible for the care of family members you will be entitled to access your current annual, sick and bereavement leave entitlements up to a maximum of 1 week (5 days) per year for the care and support of a family member who is ill, injured or recovering from surgery. This leave is known as "family leave".

It is the responsibility of the staff member to provide appropriate documentation to support your leave on request from your manager.

4.6.1 For the purposes of this entitlement, a family member is: • a member of your household;

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• a member of your immediate family, including: • your spouse, ex-spouse, de-facto spouse, former de-facto spouse and de­

facto spouse of the same sex; • daughter, son, parent, parents-in-law, brother, sister, brother-in-law,

sister-in-law, grandparent/in law, grandchild.

4.6.2 If you have utilised the full bereavement entitlement as family leave for a family member who subsequently dies, you will be entitled to a further two days paid bereavement leave.

4.6.3 If your sick leave, annual leave and bereavement leave have been exhausted you must agree with your manager one of the following provisions:

• annual leave prior to accrual, taken in single days • long service leave on a pro rata basis after 1 0 years service • time off in lieu of accrued overtime • make up time (work additional hours at ordinary time)

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Part Five Bank of Melbourne Enterprise Development Agreement 2002

Other Provisions

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Part Five Other Provisions

5.1 Staffing

5.1.1 During the term of this EDA, BME will continue to regularly review its staffmg methodologies to ensure that they are consistently applied and remain current. BME is committed to fully staffing workplaces in accordance with appropriate staffing methodologies and ensuring that managers are trained in the effective use of appropriate tools and techniques for scheduling.

5 .1.2 BME will ensure that overtime which is performed and approved in accordance with this EDA is recorded and paid correctly.

5.1.3 When determining staffing levels for a workplace consistent with clause 5.1.1, BME will take into account all relevant local factors including but not limited to staff experience, market demographics, obligations under this EDA and the Award, business opportunities and appropriate training as determined by BME to perform the required work.

5 .1.4 BME will take all reasonable steps to fill vacant positions promptly consistent with business needs.

5.1.5 BME will take all reasonable and practicable steps to address any significant impact on staff and customers caused by staff absences. In doing so, BME will use methods including but not limited to relief staff, temporary employees, changes to rosters, deferral of work and overtime which is performed and approved in accordance with clause 2.5 of this EDA. It is also acknowledged that there may be some circumstances where coverage of absences is not possible, for example lack of temporary staff or remote locations. In such circumstances, BME will take all reasonable steps to relieve immediate pressures on staff.

5.1.6 BME will take steps to ensure that appropriate training in all the aspects of work to be performed is provided for entry level recruits prior to those employees being required to carry out that work. It is also recognised that in ·some circumstances it may be more appropriate for on the job training to be provided.

5 .1. 7 BME will advise affected employees and the Finance Sector Union of change programs which may impact upon future staffing levels.

5.1.8 BME undertakes to provide affected employees and the Finance Sector Union with regular information in regard to staffing complements across business units to facilitate an understanding ofBME's deployment of staff in line with its staffing methodologies. Where any problem with regard to staffing and relief levels is identified, this problem will be drawn to the attention of the appropriate representative ofBME who will assess and rectify the matter where necessary.

5.1.9 If you have a concern with a staffing matter, you should raise it with your immediate manager. If this does not resolve the issue you may take the issue to your immediate manager's manager. If the issue remains unresolved you may use the GIFT.

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5.2 Setting of Objectives

5.2.1 BME recognises the need for objectives and targets to be fairly and equitably set and that your commitment is maximised where you have the opportunity to participate fully in the setting of objectives. You may give feedback about your objectives and your manager must give due consideration to that feedback.

5.2.2 In setting your objectives and determining whether those objectives have been met the factors to be considered by BME will include (where relevant) but are not limited to:

• Your experience

• Market data and opportunities

• Objectives set for employees in comparable roles

• Approved absences from normal duties

• Staffing levels during the performance period.

5 .2.3 Any changes during the period for which objectives are set will be by agreement between you and his or her immediate manager.

5.2.4 If you feel that your objectives have not been set or assessed fairly, you may use the GIFT to have your concerns addressed.

5.3 Guaranteed Individual Fair Treatment (GIFT)

The concerns of individual staff are important to the Bank and its customers.

Where any staff member has an issue to raise with BME, BME gives that staff member a guarantee that their query will receive fair treatment.

What this guarantee means is that the staff member's query will receive prompt and fair treatment in the first instance by the staff member's supervisor. BME expects supervisors to deal promptly with any staff member's query. Supervisors will be given appropriate training to support these skills.

Should the staff member not be satisfied with their supervisors decision, the staff member has the right to take the query to the next level and so on through to the General Manager, however, BME expects that use of this "appeal" process would be minimal.

Should the staff member feel that he/she needed, they may seek the support of a third party, such as a workmate, friend or representative from the Finance Sector Union.

The GIFT will work in conjunction with the Grievance Procedure in the Award.

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5.4 Occupational Health and Safety (OH&S)

The BME is committed to providing a safe and healthy work environment. It operates within the Occupational Health and Safety Act 1985 (as amended or replaced from time to time) and associated legislation and aims to improve on these minimum standards wherever possible.

The BME has OH&S resources available to support staff and facilitate business units to improve health and safety. The resources include: • workplace assessments • ergonomic training • occupational health and safety training • individual counseling • rehabilitation programs • trauma debriefing • security workgroup

To access these resources, contact the OH&S staff in your Human Resources Department.

The BME and the Finance Sector Union have also established Occupational Health and Safety Committees. You are able to raise issues and ideas through these Committees.

5.5 Workers' Compensation Make-up Pay

If you are injured whilst employed by the BME, and entitled to receive workers' compensation under the appropriate State legislation, you will also be entitled to receive make-up pay from the Bank.

Make-up pay is a weekly payment which is the difference between workers' compensation entitlement and your ordinary rate of pay for your position. Make-up pay is your ordinary rate of pay, including any permanent salary allowances you were being paid at the time of your injury. It does not include overtime and other similar allowances which would be discontinued during normal sick leave absences. In certain circumstances the average of your previous year's salary may need to be used to determine your make-up pay.

Make-up pay can continue for a maximum or aggregate period of26 weeks for any one injury. You are not entitled to make-up pay while on any other paid leave. Make-up pay is only payable if you have an ongoing entitlement to weekly compensation and while you remain a staff member ofthe Bank.

If a doctor declares you fit for certain work and the Bank makes that work available at your minimum wage rate, and you reject or fail to take up that work, then make-up pay will cease from the date you refuse to work or fail to perform that work.

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Make up pay also ceases where you obtain common law damages against the Bank or any other person as a result of the injury and you must pay back any make-up pay you received from the Bank if the damages or settlement were not reduced by the amount of the make-up pay.

5.6 Redundancy, redeployment and retrenchment

The Redundancy and Redeployment Agreement attached as Schedule B applies to employees covered by this EDA.

5.7 Finance Sector Union and BME Relationship

5.7 .1 Finance Sector Union Recognition

BME recognises the Finance Sector Union as the relevant union to cover BME employees. The Finance Sector Union understands BME's position in maintaining that it is an individual's decision as to whether an employee chooses to consult or join the Finance Sector Union. In this regard BME provides new recruits with Finance Sector Union contact details.

BME and the Finance Sector Union recognise the importance of working together in a co-operative relationship based on the development of common goals and a shared commitment to workplace reform. BME and the Finance Sector Union are working productively and co-operatively to improve the efficiency and effectiveness ofBME through productive work practices, and to increase the career prospects and quality of working life of employees.

Where BME employees participate in jointly agreed workgroups, their objectives will be modified to reflect this function and assessed accordingly.

5.7.2 Communication

(a) BME will consider Finance Sector Union requests for internal mail distribution, including email, on a case by case basis.

(b) Where requested, BME will provide the Finance Sector Union with access to one notice board or section of notice board in each workplace for the placement of union materials.

5.7.3 Right of Entry

The following right of entry arrangements will apply:

A duly accredited official of the Finance Sector Union shall be permitted to enter BME's premises at any time during working hours for the purpose of recruitment of members to the Finance Sector Union and for the purposes of ensuring observance of the award or agreement binding on the employer and may for that purpose inspect relevant books, documents or work and interview any employee, being a member or person eligible to be a member of the Finance Sector Union,

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on those premises, or for other purposes as may be agreed from time to time provided that the Finance Sector Union official:

• gives 24 hours notice, unless otherwise agreed, to the business unit manager;

• does not hinder or obstruct an employee in the performance of their work during work times; and

• shall exercise every care to preserve the confidentiality of all work, books or documents inspected during entry under this clause.

• in circumstances where BME or the Finance Sector Union consider that this clause has not been properly followed, either of the parties will refer the matter for resolution to the appropriate representative ofBME and the relevant State Branch ofthe Finance Sector Union.

5.7.4 Workplace Union Representatives

On the receipt of written advice from the Finance Sector Union Branch Secretary appointing an employee as a workplace representative, the employee's manager shall recognise that the employee is accredited by the Finance Sector Union for that position and consistent with the obligations of his/her job may devote a reasonable amount of time to the following functions:

(a) discuss with Finance Sector Union members at the workplace Finance Sector Union matters and matters pertaining to the work they perform;

(b) discuss with officers of the Finance Sector Union matters referred to above and receive instructions about performance of Finance Sector Union duties; and

(c) when authorised by the Branch Secretary, discuss the above matters with the manager or department head.

5.7.5 Trade Union Training

Through the Enterprise Development Agreement Committee (EDAC) Westpac and the Finance Sector Union will agree on the number of days to be made available for approved trade union training courses.

Within these limits BME will grant leave to employees wishing to attend trade union training courses during working hours, provided that the Finance Sector Union provides reasonable notice to the employee's manager of the employee's nomination, and satisfactory arrangements can be made to maintain the efficiency of the employee's branch or business unit.

5.7.6 Industrial Leave

Through EDAC, Westpac and the Finance Sector Union will agree the number of days to be made available for industrial leave for employees duly elected by the Finance Sector Union as Honorary Officials.

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Such paid leave will be for attendance to the Finance Sector Union National Conference, Finance Sector Union State Conference, State Branch Committee meetings, Sub-branch/Council of committee meetings, their successors or any other attendance as agreed by BME.

5.7.7 Joint Workgroups

Enterprise Development Agreement Committee

Westpac and the Finance Sector Union will continue the functions of the Enterprise Development Agreement Committee (EDAC). This committee will comprise an equal number of senior Westpac executives and senior Finance Sector Union Officials. The committee has the ability to establish workgroups and temporary sub-committees if and when the need exists to develop and/or project manage a major initiative for Westpac and its employees. The committee also has the power to disband such workgroups as required.

Westpac and the Finance Sector Union have determined that the following workgroups will qontinue as:

(a) Packaged Managers' Forum

(b) Joint Job Evaluation and Appeals Committees which evaluate positions in grades Ol-A3

The following matters will be discussed by EDAC during the life of the EDA:

(a) Westpac/BME and the Finance Sector Union will agree the number of days to be made available for approved trade union training courses and industrial leave.

(b) Westpac and the Finance Sector Union will review the following issues in relation to long service leave:

• Cash out of long service leave • Accessibility of long service leave • Periods of long service leave

(c) The Finance Sector Union can request a minimum of2 meetings per year to discuss issues of significance. The request for this meeting and any agenda items should be supplied to Westpac with at least 21 days' notice by the Finance Sector Union. The parties agree that there will be a minimum of2 meetings ofEDAC per year inclusive of the above.

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BME- Specific Work Groups

Three team initiatives are proposed. These involve joint project teams of Staff and Management working together to identify how best to extend the current arrangements to better fulfill their objectives.

The work teams will consist of representatives nominated by BME and the Finance Sector Union, and will report on progress to the Bank of Melbourne Enterprise Development Agreement Committee (BMEDAC)

Work team members' objectives will reflect their involvement in the implementation ofthe EDA.

a) Performance Review system, building on the experiences in some divisions

A joint work team will be established to identify how the system can work at both a workplace and individual basis. The team is to report back to the BMEAC within six months of the Agreement being signed.

b) Encourage staffto take their leave when it becomes due

Staff should be able to take their leave entitlements when they fall due, in order to ensure staff balance their work and family lives and to significantly reduce the level of accumulated leave liability within the bank

A joint work team will be established to identify what practices, procedures and systems, best enable entitlements to be taken when accrued. A key issue for the workteam to examine will be the treatment of individual targets while on leave. The team is to report back to the BMEAC within twelve months of the Agreement being signed.

c) Sick Leave

A joint work team will be established to review options regarding the possible introduction of unlimited sick leave or alternative options. This team is to report back to the BMEAC within twelve months of the Agreement being signed.

The establishment of work teams will not be limited to these detailed above but will rather be formed where the need is identified.

5.8 Alternative Agreements

BME and the Finance Sector Union commit to the pursuit of certified agreements based on collective bargaining principles. In the event that the parties cannot agree to a certified collective agreement, alternative arrangements will be explored.

Alternative arrangements may include BME offering employees agreements in accordance with Part VID of the Workplace Relations Act 1996 (the Act) which if made will operate to the exclusion of or prevail over this EDA to the extent of any inconsistency.

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When BME is considering offering an employee or group of employees an agreement in accordance with Part VID of the Act, BME and the Finance Sector Union will recognise the following:

(a) BME will enter into discussions with the Finance Sector Union in relation to a proposed offer in accordance with Part VID of the Act prior to any offer being made

(b) The Finance Sector Union will not unreasonably impede BME offering an agreement in terms of Part VID of the Act.

Where BME has at its discretion made a decision to offer an employee or a group of employees an agreement in accordance with Part VID of the Act BME and the Finance Sector Union recognise the following process:

(a) BME will give the Finance Sector Union 60 days notice of its intention to offer existing employees agreements in accordance with Part VID of the Act.

(b) Such agreements are on the basis of "offer and acceptance" (c) The employee/s have the right to appoint a bargaining agent, including the

Finance Sector Union (d) Existing employees will be provided a copy of the Agreement at least 14 days (5

days for new employees) before it is to be signed and BME will fully explain the effect of the agreement on the employee

(e) The agreement will not result on balance in a reduction in the overall terms and conditions of employment under relevant or designated awards or any other relevant law

(f) The employee must genuinely consent to the agreement. Coercion by any party is expressly prohibited

New employees joining (and/or current employees transferring into) a business unit where Part VID arrangements are in place will be offered the option of the existing collective agreement or an agreement in accordance with Part VID of the said Act. Where an employee elects a Part VID agreement and within 90 days of acceptance of such an agreement, the employee does not wish to be bound by the Part VID agreement, BME will not refuse to terminate such an agreement. In the event that the agreement is terminated, the employee will be subject to the collective agreement current at the time.

5.9 Introduction of Change

5.9.1 Where BME has made a definite decision to introduce major changes in production, programme, organisation, structure or technology that are likely to have significant effects on employees, BME shall notify those employees affected by the proposed changes and the Finance Sector Union. These notifications shall be given concurrently where practicable.

5.9.2 "Significant effects" include termination of employment, major changes in the composition, operation or size ofBME's workforce or in the skills required; the elimination or diminution of job or promotion opportunities or job tenure; the alteration of hours of work; the need for retraining or transfer of employees to other work or locations and the restructuring of jobs. Provided that where the Award makes

42

provision for alteration of any of the matters referred to herein an alteration shall be deemed not to have significant effect.

5.9.3 BME shall discuss with the employee affected and the Finance Sector Union, amongst other things, the introduction ofthe changes referred to in subclause 5.9.1, the effects the changes are likely to have on employees, measures to avert or mitigate the adverse effects of such changes on employees and shall give prompt consideration to matters raised by the employee and/or the Finance Sector Union in relation to the changes.

5.9.4 The discussions shall commence as early as practicable after the firm decision has been made by BME to make the changes referred to in subclause 5.9 .1.

5.9.5 For the purposes of such discussion, BME shall provide in writing to the employee concerned and the Finance Sector Union, all relevant information about the changes including the nature of the changes proposed; the expected effects of the changes on employees and any other matters likely to affect employees provided that BME shall not be required to disclose confidential information the disclosure of which would be contrary to its interests.

5.10 Repatriation

BME shall continue its current practice of paying reasonable repatriation expenses incurred by an employee who retires or is retrenched.

5.11 Statement of Employment

When an employee leaves BME, if he or she requires, BME will provide to the employee a written statement specifying the employee's period of employment and the classification or type of work performed by the employee.

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Schedule A

BME Banking Centres

1. Definitions

'Banking Centre' is a customer service delivery channel in which the focus is on customer education, advice, referrals and sales. It does not offer face to face over the counter transactional service capability outside of the hours of work provision in the EDA but may have electronic transactional capability. A Banking Centre operates extended trading hours within a retail environment. It may be located within a store or branch.

The Finance Sector Union will be notified of any new sites which come into operation during the life of this EDA at the same time as affected employees are notified. In normal Circumstances four weeks' notice will be given of the opening of a new site.

'Salaried employee' means an employee who has not been offered, or has not accepted, a remuneration package as per Clause 3.4.1 ofthe EDA.

'Packaged employee' means an employee who has accepted a remuneration package as per Clause 3.4 1 of the EDA.

2. Staffing

It is recognised that Banking Centres are an environment quite different to traditional banking. Given the unique nature of employment in Banking Centres, staff will be either specifically recruited to work in the centres or be transferred to a Banking Centre on an offer and acceptance basis.

Where a Banking Centre is incorporated into the existing retail network, for example into a branch or store, existing and future employees at this location not employed under this Appendix cannot be compelled to transfer to a 7 day roster under this Appendix. Any discussions about transfer to employment under this Appendix will be non-coercive. Any roster changes not related to a transfer to employment under this Appendix will be managed through the procedures contained in Part 2 of this EDA.

3. Term in role

It is expected that term in role for a Banking·Centre role will be 12- 18 months.

After a period of 18 months, if an employee finds another role within the organisation, the Banking Centre commits to release the employee to accept roles elsewhere in BME or Westpac.

An employee employed under this Appendix will be expected to continue working as agreed on weekends except where a change in the employee's personal circumstances makes this impractical or undesirable. When an employee's personal circumstances change, the employee should approach his or her manager who will give consideration to allowing the employee to cease work on weekends. However the

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parties acknowledge that it may not always be possible for BME to accommodate the employee's change in personal circumstances. In the case of a part time employee, BME will endeavour to maintain the total number of hours if possible.

4. Rostering

The environment of the Banking Centre will enable the rostering process to be more closely aligned to business needs and will incorporate true flexibility. Banking Centres operate up to seven (7) days a week and staff are required to work during weekend trading and on public holidays.

Rostering will be completed a minimum of one week prior to the commencement of the new roster period, using the principles contained in Part 2 of this EDA, including entitlement to Flexible Time Off.

Employees at the centres shall determine rosters appropriate for the site. These rosters will be reviewed by the relevant regional office to ensure all business requirements-are met.

5. Hours of work in Banking Centres

With the exception of the following subclauses, hours of work arrangements for employees employed under this Schedule will be in accordance with Part 2 of this EDA.

From time to time, staff may be required to work a six day week, however this is not expected to occur on a regular basis.

5.1 Salaried employees

5.1.1 Full time salaried employees work 152 hours per four week cycle (or 160 hours if they have elected to cash out Flexible Time Off in accordance with clause 2.3.3 ofPart 2 of this EDA), which may include ordinary hours worked during weekend trading. Each four week cycle will include:

(i) at least one day off after six consecutive days work; (ii) two periods of two consecutive days off, unless otherwise

agreed (iii) where possible weekends will be considered when rostering

consecutive days

5 .1.2 Part- Time salaried employees may work up to 152 hours in each four week cycle, which may include ordinary hours worked during weekend trading.

5.2 Packaged employees

5 .2.1 Full time packaged employees, in each four week period are entitled to:

(i) at least one day off after six consecutive days work;

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6. Loadings

(ii) two periods of two consecutive days off, unless otherwise agreed

(iii) where possible weekends will be considered when rostering consecutive days

5.2.2 Part time packaged employees, in each four week cycle, may work up to 152 hours, which may include ordinary hours worked during weekend trading.

The applicable loadings as per Clause 2.8 of this EDA will apply to salaried employees and employees in receipt of a package as per clause 3 .4.1.of this EDA, who work hours on a Saturday and/or Sunday:

(i) as part of their ordinary roster cycle, (ii) as part of a five day week, for example Tuesday to Saturday, with two days off, (iii) as part of a six day week.

7. Overtime

The provisions of this EDA which refer to Overtime remain applicable in Banking Centres. Overtime worked on a Saturday or Sunday (unless it is a State Based Public Holiday) attracts a loading of 100%.

8. Security

The security needs of staff working in Banking Centres are of the utmost concern to the parties. Security issues will be reviewed on a site by site basis, in consultation with staff, and BME and the Finance Sector Union will agree appropriate levels of security for each centre.

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Schedule B Redundancy and Redeployment

1. OBJECTIVES OF TIDS AGREEMENT

This agreement provides a fair and equitable framework for BME to balance its business needs with employees' personal needs by:

(a) optimising full time and part time employment; (b) minimising retrenchments; (c) retaining and developing the skills of the organisation through flexible deployment; (d) assisting in the management of careers; (e) applying agreed processes; (f) ensuring employees and BME know and understand each other's rights and

obligations.

BME recognises the value of successful redeployment strategies in maximising engagement and providing a cost effective alternative to retrenchment.

This appendix will apply only to situations of redundancy.

2. REDUNDANCY

"Redundancy" is a situation where the work (or the major portion of the work) being done by an employee is not required to be done within a reasonable commuting distance as a result of re-organisation, changed business practice, technological change or downturn in business.

3. REDEPLOYMENT

3.1. General Principles

In each case of redundancy, BME will make all reasonable efforts to redeploy affected employees elsewhere in the organisation to a directly comparable position.

All redeployment efforts will be assisted by taking maximum advantage of normal staff turnover and limiting other recruitment wherever practicable. External recruiting will not occur until approval has been given that employees on redeployment have been appropriately considered for the vacancy.

In filling vacancies, every reasonable consideration will be given to suitably qualified employees whose positions are disappearing.

If an employee's position is redundant, an exploration of options will occur. Options available include:

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(i) applying for available vacancies;

(ii) redeployment to a Directly Comparable Position;

(iii) redeployment to a Non-Comparable Position;

(iv) redeployment to a Development position;

(v) change of mode;

(vi) retirement where appropriate.

Redeployment opportunities will be pursued for a maximum period of 3 months from the date of redundancy (exclusive of notice of retrenchment), unless extended by mutual agreement.

On return from overseas postings, redeployment opportunities will be pursued for a maximum period of 6 months, unless extended by mutual agreement.

BME's processes for redeployment are described in the "Westpac Banking Corporation Policy on Redundancy, Redeployment and Retrenchment (1998)." This policy has been jointly agreed between Westpac and the Finance Sector Union.

3.2. Directly Comparable Position

"Directly Comparable Position" means a position within Westpac or BME that:

(i) has at least' the same salary and other benefits as the employee's existing position; and

(ii) is at the same location or a location within reasonable commuting distance; and

(iii) has duties that are reasonable in the circumstances of the employee's skills and abilities; and

(iv) is not more than 15% less Hay points than the redundant position.

If the employee considers that a position being offered to him/her as directly comparable does not meet criterion (iv) above, then the employee's redundant position and the proposed position will be evaluated using the Hay job evaluation process. For grades Ol-A3 the evaluation will be completed by the Joint Westpac-Finance Sector Union Job Evaluation Committee. For other positions the evaluation will be completed by BME. In either case the employee may seek Finance Sector Union assistance.

The employee will be notified by BME of the Hay point scores.

In the interests of continuing the employee's employment BME may expand the duties of the proposed position to ensure a match with the employee's skills and abilities and meets the above criteria.

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3.2.1.

3.2.2.

Where both positions are Competency Based

Comparability between competency based positions can only be determined following position and workstream design. As each site adopts work organisation principles BME and Finance Sector Union will agree the comparability/non-comparability of the various positions within each workplace.

Redeployment from a competency based position to a Hay-graded position will be defmed as "directly comparable" when the following factors are present:

(i) the two positions have similar knowledge, skills and core competencies established for the position, and

(ii) there is no reduction in the employee's salary or benefits and their current salary falls within or below the salary range of the Hay position, and

(iii) BME and Finance Sector Union have agreed that the competencies are a fair match. External tools ( eg AQF) will be considered where they are applicable, and

(iv) the position is at the same location or another location which is in reasonable commuting distance.

3.3. Development Position

3.3.1. A development position may be offered to an employee if the employee has been assessed as essential to BME's continuing business needs and if the employee has accepted the opportunity to retain employment and develop his/her skills. Whilst in a development position an employee will not be retrenched.

A development position is designed to develop an employee's skills and competencies whilst supplementing existing resources. Redeployment to a development position will not be limited to a particular business unit.

3.3 .2. Redeployment to a development position is by offer and acceptance. The offer by BME will be in writing and will include location, grade, competency profile, salary and commencement date. An employee will be given at least 7 days to consider the offer.

3.3 .3. Appointment to a development position will be for a minimum period of 6 months (unless an employee is successfully placed in a permanent position earlier). If an employee is in a development position, the employee will have preference for vacancies that arise in the position for which the employee is being developed in the business unit (or region in the Retail Bank) over other employees who have not been displaced, all other things being equal.

3.3 .4. Upon appointment to a development position, the employee will be notified in writing of the position's designated duties, draft development and retraining plan and completion date. This draft plan

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will outline appropriate development and retraining to support the employee in performing the designated duties. Within a two week period agreement will be reached on the content of the plan.

3.3.5. BME will assign a manager to case manage the employee's development, and together the employee and the manager will review the progress of the employee's development plan monthly. The employee will also be given assistance in resume writing, circulating the resume, career assessment skills, secretarial support and time off for interviews within BME. BME and the employee will conduct a formal review of the development position appointment four months from inception.

3.3.6. BME and the employee may agree to extend the period in the development position for a nominated period of time, at the end of which clause 3.3.8 applies.

3.3.7. If an employee accepts a development position, the employee will retain the same salary and benefits as his/her previous position. Where the development position is a higher grade, the employee's salary and benefits will be increased to no less than the minimum salary and benefits for that higher grade.

3.3.8. If redeployment and appointment to a permanent position or the position the employee was developing in has not occurred at the relevant completion date, the employee will be able to agree a further period of redeployment or be provided with notice of retrenchment.

3.4. Non Comparable Position

"Non Comparable Position" means a position that does not meet the Directly Comparable Position criteria in Clause 3.2. Where redeployment to a non comparable position within Westpac, BME, or Westpac's subsidiaries is offered, at least two weeks will be allowed for the employee to decide whether or not to accept the offer. If the employee declines the position, the employee will continue redeployment

3.4.1. Where a non comparable position within Westpac or BME, is accepted, the employee is entitled to a trial period of 8 weeks from the date the employee commenced in the new position.

If the new position is unsuitable, either the employee or Westpac/BME may give notice to the other party, at any time up to when the trial period expires. If this notice is given, the employee will continue redeployment in Westpac/BME. If the employee does not notify Westpac/BME by close of business on the date of expiry of the trial, then both parties are deemed to have accepted the employee's appointment to the new position.

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3.4.2.

3.4.3.

Where a non comparable position within a Westpac subsidiary is accepted, the employee is entitled to a trial period of 8 weeks from the date the employee commenced in the new position. For the duration of the trial the employee will remain employed by BME. If the new position is unsuitable, either the employee or BME may give notice to the other party, at any time up to when the trial period expires. If this notice is given, the employee will continue redeployment in BME. Should the employee accept the role, a new contract of employment will be entered into with the subsidiary.

(a) If the employee is not on a remuneration package or a specialist:

(i) and the employee's current salary is higher than the ceiling (if applicable) of the lower grade position, the employee's salary will reduce to the maximum salary of the lower grade position. Should the employee be retrenched from the lower grade position within 2 years of the employee's appointment to that position, all retrenchment payments will be based on the original salary;

(ii) and the employee's current salary is lower than the ceiling of the lower grade position, normal salary progression rules for the lower grade will apply;

(iii) the employee's current concessionalloan benefits will remain unchanged for 9 months. After 9 months, concessionalloans will be in accordance with BME's policy for the lower grade;

(iv) any new concessionalloans will be in accordance with BME's policy for the lower grade;

(b) If the employee is on a remuneration package or is a specialist:

(i) remuneration increases will continue to apply up to the maximum of sector 4 of the grade range for the employee's new position, however you will continue to be considered for performance related payments (such as incentives and bonuses);

(ii) the employee's current concessionalloan benefits will remain unchanged for 9 months. After 9 months, concessionalloans will be in accordance with BME's policy for the lower grade;

(iii) any new concessionalloans will be in accordance with BME's policy for the lower grade.

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3.4.4.

3.4.5.

Once appointed to the new position, an employee has no claim to his/her former position or status. Terms and conditions of the new position will apply.

If an employee accepts a non comparable position requiring a change in residence, this will be deemed to be a bank-initiated transfer. If the employee subsequently declines the position, any relocation payments must be repaid to BME. BME may deduct monies owing for this purpose from any payments that may be paid under clause 4.7 (Severance Payments).

3.5. Change of Mode

Change of mode is where an employee is offered and accepts a change from one type of employment to another, for example from full time employment to part time employment.

Redeployment to a different mode will be considered "non comparable", and the provisions of clause 3.4 will apply.

3.6. Process

The following flowchart is an overview of the redeployment process.

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Notice of Redundancy

Guideline to Redundancy and Redeployment Process

Exploration ofF!~!!-·· ---------------1 .. Options Retirement I

Pl~:~t\~ a ~ comparable l'!!o--------r-------------IJo.l

I Redeployment 1 .. · .... •

Jobsearch >

position

Wherea 1·

management level · employee disagrees ·

that position is directly comparable.

Offered a development

position

Discussions ·1.· with Manager

and/or People& Performance

Minimum6 month

trial in a development

position

":a:~"~~: I redeployment Bl~-----------+---------------1 (extended by I

mutual agreement) :

~

i ~i

Offered a non comparable

position

Jobsearch exhausted

6 weeks notice t;~i-------+1

Trial Maximum 8

weeks

'---

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G) .... (6' < ll) ::s (") C'D "'C .... 0 (") C'D c. s:::: .... C'D

3.7. Offer and Acceptance

"Offer and Acceptance" will apply if an employee is offered a non comparable position, a development position, redeployment from a Hay-based to competency-based position and any position which requires a change in residence. The employee shall receive the offer in writing, which will contain the location, grade/classification, competency profile, salary, commencement date and principal duties of the position being offered. The employee will be allowed at least two weeks to decide whether to accept the offer.

3.8. Change of Residence

Where employment within BME which requires a change of residence is offered and accepted by an employee, the normal assistance with removal expenses, transfer costs and accommodation costs will be given as for a BME -initiated transfer.

4. RETRENCHMENT

4.1. "Retrenchment" means the termination of an employee's employment as the result of redundancy and where alternative employment within the Westpac Group is not achieved or re-training appropriate.

If an employee's position has become redundant and you are to be retrenched, you shall be entitled to the provisions in clauses 4.6-4.9 of this agreement unless an employee declines a directly comparable position.

4.2. Selection for Retrenchment

BME may, where appropriate, request applications for retrenchment. Where selection is necessary, BME will consider:

(i) The employee's ability to discharge duties; (ii) The employee's length of service; (iii) The employee's preferences; (iv) The employee's special circumstances such as the need to retain your

specific skills; (v) Any other relevant factors.

Equal Employment Opportunity principles will be built into all stages of the selection process.

BME's selection of employees to be retrenched and any decision giving effect to such selection is final.

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4.3. Retrenchments, where they are necessary, will be drawn from a pool of employees who have expressed an interest in retrenchment or whose competencies are not suited to any position.

4.4. Forced retrenchments for employees who are not suited to a position and who have not expressed an interest in retrenchment are expected to be few in number. Where this situation occurs, BME will explore every opportunity for the employee's redeployment, however where this is not appropriate or possible, BME will, at the earliest opportunity before the proposed retrenchment date, but not less than 7 days prior, enter into discussions with the Finance Sector Union. The alternative options which have been explored by BME and the timing of any necessary retrenchments will be part of these discussions.

4.5. Following the selection process, if the redundant employee and other employees are seen as equally suited for a position and a retrenchment is unavoidable, if only one employee has expressed an interest in retrenchment, that employee will be the first to be retrenched.

4.6. Notice

4.6.1.

4.6.2.

4.6.3.

During the life of this agreement, BME will advise National Office of the Finance Sector Union of the specific time of any retrenchment situations and the number of employees likely to be retrenched, at the earliest opportunity well prior to issuing notice of retrenchment to affected employees.

The Finance Sector Union accepts the confidentiality of this information and will not divulge any of an employee's individual details until after BME has notified the employee, nor publish the employee's name without his/her consent.

If an employee is to be retrenched, the employee will be given the maximum practical forewarning of likely retrenchment and the specific retrenchment date, however an employee will not be given less than six weeks written notice or, at BME's election, payment in lieu of that notice.

If an employee has been given formal notice of retrenchment and wishes to leave prior to the specific retrenchment date, the employee shall receive all severance payments except payments for the notice given which is not worked.

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4.6.4. BME will allow an employee to have one day off per week on full pay during the period of notice on proof that the employee is attending job interviews. In addition, the employee will be given assistance in:

(i) resume writing skills; (ii) secretarial support and; (iii) an outplacement course.

4.7. Severance Payments

Upon termination through retrenchment, in addition to any notice or payment in lieu of notice as specified in clause 4.6.2, an employee shall be paid a special lump sum severance payment in full and final settlement of all claims for additional notice, retrenchment pay, etc, calculated as follows:

4. 7 .1. Seven weeks' salary for the first full year of service, or pro rata for those with less than one full year of service;

4.7.2. Three weeks' salary for each subsequent year of continuous service;

4. 7.3. A pro-rated payment for each completed month of service in the final part year of service;

4.7.4. The maximum payment under this subclause shall be 90 weeks' salary;

4.7.5. If the employee has transferred from full time to part time employment or vice versa the employee's retrenchment payments will be based pro­rata on the actual time the employee has worked in each mode using the employee's current salary (subject to subclause 3 .4.3(a)(i)).

4.7.6. Week's Salary

Week's salary means 50% of the employee's fortnightly salary plus where applicable, shift allowance and weekend penalty payments, averaged over the last complete shift roster cycle. Week's salary excludes any payments for overtime, stand-by, call-back, etc. If an employee is in receipt of a remuneration package, salary shall mean Package Value.

4.8. Other payments

In addition to severance payments outlined in Clause 4.7, a retrenched employee shall also be paid:

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4.8.1.

4.8.2.

4.8.3.

Annual Leave

In accordance with the Award, the .employee shall be paid pro-rata in lieu of any annual leave accrued but not yet taken, plus any loadings for each completed year which would otherwise have been placed on that leave, up to the value of the maximum loading specified in Award clause 20.2.2.

Long Service Leave

The employee will be paid for untaken long service leave in accordance with the provisions of the Award provided that long service leave on a pro rata basis will be paid if you have completed more than five years continuous service.

Superannuation

The employee will receive all superannuation benefits as they relate to resignation, preservation and portability in accordance with the rules of the respective scheme.

4.9. Additional Benefits

4.9.1.

4.9.2.

Lending

(i) All the employee's existing loans (including housing loans, personal loans and credit cards) attracting staff terms and conditions will be converted to customer terms and conditions at the date of termination of employment.

(ii) All increased costs (including interest) for a period of nine months will be calculated on balances and public loan conditions applicable on the date of notification of retrenchment.

(iii) BME will make an ex gratia payment to the employee, calculated to ensure that the amount that the employee received after tax equals the cost referred to in 4.9.1 (ii).

Provided relevant public lending criteria are met, BME will give favourable consideration to re-negotiating the employee's housing loans at public rates and conditions. Where a loan is re-negotiated before or on the termination of employment, BME will meet all bank fees and charges and at the request of the employee, will give every consideration to maintaining existing loan repayment levels and the extension of the term of the loan.

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4.9.3. The employee's cheque or savings accounts will be converted to public customer terms at the date of termination of employment.

5. TRANSMISSION OF BUSINESS

Where a business is before or after the date of this EDA, transmitted from BME (in this sub-clause called "the transmittor") to another employer (in this sub-clause called "the transmittee") and an employee, being an employee of the transmittor in that business at the time of such transmission, becomes an employee of the transmittee:

(i) the employee's continuity of employment shall be deemed not to have been broken by reason such as transmission; and

(ii) the period of employment which the employee has had with the transmittor or any prior transmittor shall be deemed to be service with the transmittee; and

(iii) the employee shall be excluded from clauses 2, 3 and 4 of this Appendix if:

(a) the overall terms and conditions contained in the Award, agreement and statutory entitlements of employment with the transmittee are no less favourable than the employee's Westpac Award, EDA and statutory entitlements, and

(b) if on becoming an employee of the transmittee the following conditions of employment are equal to or better than those the employee received at BME: salary/package value: the new role is "directly comparable" as defmed in this Appendix, and also includes the employee's current hours of work. In the event that there is any dispute as to the comparability of the new role, Dispute Settlement (clause 8) may be used.

In this sub-clause, "business" includes trade, process, business or occupation and includes part of any such business and "transmission" includes transfers, conveyance, assignment or succession whether by agreement or by operation of law and "transmitted" has a corresponding meaning.

6. ACCEPTABLE ALTERNATIVE EMPLOYMENT

6 .1.1 Notwithstanding anything contained elsewhere in this Appendix, where BME has obtained acceptable alternative employment for an employee, and considers that a lesser severance payment is appropriate, BME will advise the Finance Sector Union and the employee. If the Finance Sector Union or the employee dispute the proposed payment, BME may make application to the Australian Industrial Relations Commission for conciliation or arbitration if necessary. If for any reason the Australian Industrial Relations Commission is not able to arbitrate the matter, the recommendation of the Australian Industrial Relations Commission will be final and binding on the parties and the employee concerned, and BME obligations under clauses 2 and 4 of this Appendix shall be in accordance with that recommendation.

6.2 Where BME has obtained acceptable alternative employment for an employee, the employee will have not less then 4 weeks to consider the substantive terms and

58

conditions before they are required to accept or decline the offer of acceptable alternative employment.

6.3 If an employee accepts the offer of acceptable alternative employment the employee's contract of employment with BME will be deemed to be terminated by agreement.

6.4 Nothing in this clause will relieve BME from its obligation to attempt to redeploy an employee under clause 3 of this Appendix after the employee has declined an offer of acceptable alternative employment.

7. APPLICATION

7.1 This Appendix will apply from the date of commencement of this ED A.

7.2 This Appendix will not apply to :

(i) employees employed for an agreed period of time or for a specified task where employment terminates at the completion ofthe agreed period or specified task;

(ii)temporary employees;

(iii) employees whose employment is terminated for any reason other than redundancy.

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Schedule C Salary Sacrifice

1.1 For the purpose of this Appendix:

(a) 'Benefits' means the benefits nominated by the employee from the benefits offered by BME to the employee for the purposes of Salary Sacrifice Agreements as varied in accordance with this Appendix.

(b) 'Benefit Value' means the amount specified by BME from time to time as the cost to BME of providing the Benefits including the Fringe Benefits Tax, if any. BME may vary this amount where the cost to Bank of providing the Benefits changes.

(c) 'Cash Salary' means the cash salary component of a Salary Sacrifice Agreement payable to the employee at any particular time.

(d) 'Fringe Benefits Tax' means tax imposed by the Fringe Benefits Tax Act 1986.

(e) 'Pre Sacrifice Salary' means the salary to which the employee would have been entitled at any particular time in the absence of a Salary Sacrifice Agreement being in place.

1.2 BME may offer to provide and the employee may agree in writing to accept:

(a) the Benefits; and

(b) the Cash Salary equal to the difference between the Benefit Value and the Pre Sacrifice Salary

An agreement to do this is referred to as a 'Salary Sacrifice Agreement'.

1.3 During the currency of a Salary Sacrifice Agreement with an employee:

(a) if the employee takes paid leave on full pay during any period, he or she shall during that period receive the Benefits and Cash Salary provided for by clauses 1.2(a) and (b);

(b) without limiting clause 1.3( c), if the employee takes leave on less than full pay during any period and the Salary Sacrifice Agreement is not terminated under clause 1.3( c), the employee shall during that period rece1ve:

(i) the Benefits; and

(ii) a reduced Cash Salary calculated by applying the formula:

A= S x P%- [(100%- P%) x B]

where:

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A = the amount of reduced Cash Salary the employee will receive during that period

S = the Cash Salary determined in accordance with clause (b)

P = the percentage of Cash Salary payable during that period (for example, ifthe employee took leave on half pay, P =50%)

B = Benefit Value

For the purpose of illustration only, the following worked example indicates how this clause 1.3(b) is intended to apply:

• Under the terms of a Salary Sacrifice Agreement, a full time employee receives Benefits with an annual Benefits Value of$10,000 and a Cash Salary of$30,000 (gross).

• BME and the employee agree that the employee will take leave on half pay. During the leave period, the employee will receive:

(a) the Benefits (which will be unaltered during the leave period); and

(b) a reduced Cash Salary equivalent to $10,000 gross per annum.

• Using the formula set out above, the reduced Cash Salary is calculated as follows:

$30,000x 50%= $15,000

$15,000- (100%-50% X $10,000} = $10,000

• The total value of the Benefits and reduced Cash Salary during the leave period is equivalent to $20,000 (ie 50% of$40,000 which is made up of a reduced Cash Salary of$10,000 and Benefits valued at $10,000).

(c) if, during any period, the employee's remuneration ceases to be payable or decreases for any reason, then:

(i) either the employee or BME may terminate the Salary Sacrifice Agreement with immediate effect in which case the provisions of clause 1.11 shall apply;

(ii) BME may cease providing some or all of the Benefits and the employee will no longer be entitled to receive those Benefits fromBME; or

(iii) ifBME cannot without cost or other detriment to it, or in its discretion (including following a request by the employee) it chooses not to cease providing some or all of the Benefits, the

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employee will pay to BME on demand the Benefit Value of any Benefits which BME continues to provide for such period.

For the purposes of this sub-clause, the employee authorises BME to make such deductions from monies owing or payable or which may become owing or payable to the employee by BME as are necessary to pay BME for the costs specified in this clause.

An employee will not have their Salary Sacrifice Agreement terminated because they are receiving workers' compensation payments, as long as their remuneration (comprising workers' compensation payments, any workers' compensation make-up pay, the Benefit Value and any residual salary entitlements) is not less than the Pre Sacrifice Salary.

(d) in the absence of any different provision in this EDA or any other applicable industrial instrument, any payment calculated by reference to the employee's salary, minimum salary or package value, however described, and payable:

(i) during employment where and to the extent applicable in respect of:

(A) overtime;

(B) employer's superannuation contributions;

(C) shift loading;

(D) public holiday loading;

(E) annual leave loading; and

(F) payment for Flexible Time Off not taken or cashed out pursuant to clause 2.3.3 of this EDA;

(G) loadings and proof allowance payable under clause 2.8 of this EDA;

(H) loadings payable for part time extra hours under clause 2.5.4 of this EDA;

(I) payment for travelling time under clause 16.8.1 of the Award;

(J) any other items as agreed between the parties

or

(ii) on termination of employment where and to the extent applicable in respect of untaken paid leave, payment in lieu of notice and severance pay; or

(iii) on death.

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shall be calculated by reference to the Pre Sacrifice Salary.

(e) in the absence of any different provision in this EDA or any other industrial instrument, where a particular salary is used for determining whether particular provisions apply to the employee (for example, clause 12.1 ofthe Westpac Employees Award which provides that employees who earn more than a particular amount, can be paid monthly), then the Pre Sacrifice Salary will be used instead of that salary.

(f) if the employee is temporarily acting in a higher grade for any period, then [note: BME has no equivalent of clause 24.2(g). Clause 3.8 of this EDA does deal with relief but does not seem to conflict with this clause - I think they can be read together. Can we discuss] Clause ]during that period the employee will receive:

(i) the Benefits and Cash Salary provided for under clause 1.2(a) and (b); and

(ii) an additional gross amount (if any) equal to the difference between the Pre Sacrifice Salary and the payment the employee would have received had the employee not been a party to a Salary Sacrifice Agreement when acting in a higher grade

in lieu of the provisions that would otherwise have applied to that employee when acting in that higher grade for that period of time.

(g) paragraphs 1.3( d), (e) and (f) will not:

(i) prevail over any limitation applying to the calculation of any payment under this EDA or any other applicable industrial instrument, however calculated; and

(ii) operate so that the employee receives benefits to a value greater than the value of the entitlements the employee would have received if the employee had not entered into a Salary Sacrifice Agreement; and

(iii) operate so that the employee receives any double counting of the entitlements received under this Appendix.

1.4 A Salary Sacrifice Agreement must be made prior to the commencement of the period of service to which the Salary Sacrifice Agreement relates.

1.5 If there is a Salary Sacrifice Agreement in force, the Benefit Value of the Benefits provided under the Salary Sacrifice Agreement shall be taken into account in assessing compliance by BME with its obligations under this Agreement and any other applicable industrial instruments, to pay salary, allowances, bonuses or other entitlements as if the Benefit Value had instead been paid to the employee.

1.6 (a). A Salary Sacrifice Agreement whose only Benefit is a childcare benefit, will continue until terminated by either BME or the employee giving to the other not less than 2 weeks prior notice in writing.

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(b) BME and the employee may agree to vary the Salary Sacrifice Agreement during its term in respect of childcare and superannuation Benefits to the extent permissible by law, the Australian Taxation Office and the relevant superannuation schemes.

1. 7 A Salary Sacrifice Agreement to which clause 1.6 does not apply:

(a) in respect of a package employee, will expire on 31 December of the calendar year in which the Salary Sacrifice Agreement is entered into or the date on which the employee is appointed to a different position (whichever is sooner);

(b) in respect of a non package employee, will expire at the end of the second pay period after 1 November each year or the date on which the employee is appointed to a different position (whichever is sooner).

1.8 Where the Salary Sacrifice Agreement expires under clause 1. 7, the parties will be deemed to have entered into a further Salary Sacrifice Agreement in the same terms for a period of 12 months, unless:

(a) either party notifies the other beforehand that they do not wish to do so; or

(b) the parties enter into a new Salary Sacrifice Agreement on different terms following the employee having given BME at least two pay periods prior notice of such different terms before the expiration was due to take effect.

1.9 Despite clauses 1.6, 1. 7 and 1.8 BME may terminate a Salary Sacrifice Agreement at any time by giving the employee four weeks' notice. BME will advise the employee of the reasons for the Salary Sacrifice Agreement being terminated and the employee may discuss those reasons with BME during the notice period.

1.10 Any existing agreement under this EDA or any other industrial instrument as at the date this EDA comes into force:

(c) for the provision of childcare which is part of a salary sacrifice arrangement; or

(d) with a packaged employee for salary sacrifice

is deemed to be a Salary Sacrifice Agreement to which this Appendix applies.

1.11 If the employee's employment terminates or the Salary Sacrifice Agreement:

(a) is terminated pursuant to clauses 1.3(c)(i), 1.6;

(b) expires for any reason or is renewed; or

(c) continues but some or all the Benefits under it cease to be provided under clause 1.3( c )(ii)

the employee will bear any costs associated with the termination, expiry or renewal of the Salary Sacrifice Agreement or cessation of provision of Benefits (including any costs incurred by BME in connection with the cancellation of the Benefits that had been provided to the employee under the Salary Sacrifice Agreement) and the

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employee authorises BME to make such deductions from monies owing or payable or which may become owing or payable to the employee by BME as are necessary to reimburse BME for the costs specified in this clause.

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ScheduleD

From first full pay period October 2001

Salary Ranges

From first full pay period October 2002

Salary Ranges

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From first full pay period October 2003

Salary Ranges

Allowances

The following allowances will be increased as follows:

From First full pay period in each October

Duties - on Rostered Days Off, Holidays & Time A way Days

Standby/Call -Monday to Friday

Standby/Call- Saturdays, Sundays & Public Holidays

CPI - related allowances

57.61

14.29

28.82

59.91

14.86

29.97

During this EDA, allowances based on the Consumer Price Index will be varied on an agreed basis by determining the increase in CPI between the September quarters. Calculations will be made using the All Groups Index Numbers (weighted average of 8 capital cities) published quarterly by the ABS.

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62.31

15.45

31.17

Overtime calculation rates

The amount used in the Award clauses 13.1, 13.4.1 and 15.4 will be increased as follows:

From First full pay period Oct 2001: 49993 From First full pay period Oct 2002: 51993 From First full pay period Oct 2003: 54073

The amount used in Award clause 13.2.3 will be increased as follows:

From First full pay period Oct 2001: 49994 From First full pay period Oct 2002: 51994 From First full pay period Oct 2003: 54074

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Glossary of Terms

Flexible Time Off (FTO) Cl 2.3.3 Each full time non packaged staff member is entitled to 8 hours time off per four week cycle, which, subject to business requirements, may be taken in any of the following combinations: • one block of 8 hours • two blocks of 4 hours each • less than 8 hours leaving the balance to be taken in a later cycle • where the staff member is interested, any combination of full hours up to 8 hours in a

cycle

Guaranteed Individual Fair Treatment (GIFT) Cl 5.3 Where an individual has an issue to raise with the Bank, the bank gives that staff member a guarantee that their query will receive fair treatment, in the first instance by the individual's manager/supervisor/team leader. GIFT will work in conjunction with the grievance procedure in the Award.

Hourly Loadings Cl 2.3.2 page 12, Cl 2.3.4, 2.8 Applies to all salaried staff where rostered hours fall outside the span of hours between 7am and 7pm Monday to Friday. Packaged A2-A3 staff will be eligible for Saturday, Sunday and Public Holiday loadings. The hourly loadings replace shift allowance. Schedule A applies to employees employed under the Banking Centres agreement.

Hours of Operation Cl 2.1 The total span of hours that the BME will be operating. Currently: 7am to 10 pm Monday to Sunday (as otherwise agreed)

• Branches, home loan centres, banking kiosks, other retail operations Monday to Saturday, 9 am to 5 pm (or as otherwise agreed) • Selected home loan centres Sunday, 9 am to 5 pm (or as otherwise agreed) • Operations Centre Monday to Saturday, 24 hours a day (or as otherwise agreed)

Hours of Work (Ordinary Hours) Cl2.2 Applies to all salaried staff members Full time staff member - (excluding meal breaks) up to 10 hours per day, 50 hours per week, 152 hours per 4 week cycle. Also entitled to 8 hours flexible time off per 4 week cycle (unless the staff member has cashed out Flexible Time Off in accordance with clause 2.3 .3). Part time staff member- (excluding meal breaks) up to 10 hours per day, 50 hours per week, 152 hours per 4 week cycle. Casual staff member- (excluding meal breaks) up to 10 hours per day, 50 hours per week, 152 hours per 4 week cycle.

Modes of Employment Full time staff member- staff members who work 152 hours in a 4 week cycle (or up to 160 hours where all or part oftime off is deferred or cashed out in accordance with clause 2.3.3) Part time staff member- staff members who work from 64 hours (unless your current ordinary hours are less than 64, or as otherwise agreed in writing), up to 152 hours in a 4 week cycle

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Casual staff member - Staff members who work in a temporary capacity to supplement either full time or part time employment, and not to replace full time or part time staff members Casual staff members receive a 20% loading on their appropriate hourly rate, which is in lieu of all other paid leave entitlements. Casual staff members employment may be terminated with one hours notice.

Mutuality C/2.4 Mutuality means that the business needs and the needs of staff outside of work must both be considered when establishing a roster. Mutuality means working together to come up with a rostering solution which considers both the needs of the BME to meet customers' expectations and individual staff members' needs.

Overtime Cl 2.5 Applies to all non packaged staff up to a maximum salary of $49,993 per annum (or as varied form time to time), and related specifically to the number of hours worked in a roster cycle. Overtime will be paid at the rate of time and half for the first three hours and double time thereafter. Work on a public holiday will be paid at the rate of double time with a minimum payment of 2 hours overtime ( 4 hours at single time). Full time staff member - hours worked in excess of:

• 10 hours per day • 50 hours per week • 152 hours per 4 week cycle (or up to 160 hours where all or part oftime off is

deferred or cashed out in accordance with clause 2.3.3) Part time staff member - hours worked in excess of:

• 10 hours per day • 50 hours per week • 152 hours per 4 week cycle Where a part time staff member agrees to work additional hours during a cycle, payment will be made as follows: • 25% loading for the first additional15 hours worked during the cycle • 50% loading any subsequent additional hours worked up to an~ including 152

hours • overtime rates will apply in terms of the conditions above

Casual staff member - hours worked in excess of: • 10 hours per day • 50 hours per week • 152 hours per 4 week cycle

Ordinary Hours of pay Ordinary rate of pay means your salary. It does not include:

• bonuses • overtime payments • hourly loadings • payments relating to profit share schemes or other incentive schemes • standby and call back payments, special duties, higher duties allowance, mileage

allowance, transfer allowance, removal allowance and/or reimbursement

Standard Hours (Agreed Hours) Cl2.3.1 Once a staff member's roster cycle of hours has been set they are called standard hours. Standard hours may be rostered to work Monday to Sunday, however work on Saturday or Sunday, as standard hours is voluntary.

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Signatories

Dated ) 3 S JL '-{ 2002

Signed for and on behalf of Bank of Melbourne (Bank of Melbourne -A Division ofWestpac Banking Corporation) .

..... ~~---····-~·-··········~ ......... "~ Ann Sherry Chief Executive Officer

Dated d-..\....\"'- j I 2002

Signed for and on behalf of the Finance Sector Union of Australia.

National Secretary

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