BREAD VENDORS
(TIP TOP BAKERIES SYDNEY) AWARD
INDUSTRIAL RELATIONS
COMMISSION OF NEW SOUTH WALES
Application by the Australian Liquor,
Hospitality and Miscellaneous Workers Union, New South Wales Branch, industrial
organisation of employees.
(No. IRC 3379 of 2001)
Before Mr Deputy President Grayson
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30 May 2001
|
AWARD
Arrangement
Clause No.
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Subject Matter
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1.
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Arrangement
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2.
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Definitions
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3.
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Relationship of the Vendor and the Company
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4.
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Vendor Performance
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5.
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Company’s Rights and Liability
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6.
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Appearance of the Vendor and Staff
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7.
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Delivery Vehicle
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8.
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Replacement Vehicle on Breakdown
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9.
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Vendor Insurances and Indemnities
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10.
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Vendor Account
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11.
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Vendor Discount
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12.
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Reimbursement of Expenses
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13.
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Minimum Discount
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14.
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Leave
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15.
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Non-personal Service
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16.
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Value of Run
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17.
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Engagement of a Vendor
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18.
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Termination of Engagement
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19.
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Consequences of Termination
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20.
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Assignment
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21.
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Run Volume Reduction
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22.
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Settlement of Disputes and Grievances
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23.
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Application
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24.
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Duration
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25.
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Area, Incidence and Duration
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26.
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Review
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27.
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Notices
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Schedule 1
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Stationary and Uniforms
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Schedule 2
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Specification of Vendor
Vehicle
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Schedule 3
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Calculation of initial
Fee for a New Vendor and Termination Fee
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Schedule 4
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Calculation of value of
Customer Removed from the Run
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Schedule 5
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Calculation of value of
a New or Additional Customer added to the Run
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Schedule 6
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Letter of Engagement of
Vendor
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Schedule 7
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Vendor Discount and
Reimbursement of Expenses
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2. Definitions
In this award
"Award rate" means the amount payable to a Baking
Industry Employee Level 3 under the Miscellaneous Workers and Tip Top Bakeries
(NSW) Enterprise Award.
"Company" means George Weston Foods Limited
(A.C.N. 008 429 632), trading as Tip Top Bakeries.
"Food service" means KFC, Hungry Jacks, Burger
King, Red Rooster, State and Federal Government contracts, Sizzler and any
major fast food chain for which Tip Top Bakeries gains a contract to supply
product subsequent to the commencement of this award.
"Net sales units" means gross sales of units of
bread made by the vendor to the customers of the company, less returns allowed
by the company.
"Other fixed expenses" means the expenses
specified in paragraph (c) of subclause 12.1 of clause 12, Reimbursement of
Expenses.
"Prime service" means:
daily liaison with
each customer in relation to the customer’s needs;
the principal or major delivery to the customers on each
day, which may be divided into a first and second load;
the collection of returns as required from each customer;
and
such reasonable service as may be required on merchandising,
point of sale, and other customer support.
"Run" means those customers of the company the
vendor is reasonably directed by the company to supply and deliver to.
"Union" means the Australian Liquor, Hospitality
and Miscellaneous Workers Union, New South Wales Branch.
"Unit of bread" means:
a) any bread
product which is packaged for sale as a single unit;
b) any unwrapped loaf of bread capable of
being sold as a single unit as defined in the Bread (Weights) Regulation 1977,
and
c) a half dozen wrapped or unwrapped bread rolls, or any roll product deemed as
unwrapped except for KFC cob rolls, for which one dozen shall constitute a
unit.
"Vehicle running cost" means the cost specified in
paragraph (b) of subclause 12.1 of clause 12, Reimbursement of Expenses.
"Vehicle standing charge" means he charge
specified in paragraph (a) of subclause 12.1 of clause 12, Reimbursement of
Expenses; and
"Vendor" means a person who is engaged by the
company as a bread vendor on the terms of this award, or the previous award.
3. Relationship of the
Vendor and the Company
3.1 It is acknowledged and declared that the
employment of the vendor shall be in accordance with Section 5, subsection 3
and Schedule 1 of the Industrial Relations Act 1996.
3.2 Nothing contained in this award shall be
deemed to constitute the vendor an agent of the company for any purpose or a
partner or co-venturer of the company.
3.3 Except as provided in this award, the
vendor must not otherwise use the company’s name or describe or otherwise hold
himself/herself out or permit himself/herself to be held out as an employee or
agent of the company.
4. Vendor Performance
4.1 This award arises from the desire of the
company, the union and the vendors to put in place an arrangement which
preserves a vendor system with vendors purchasing product from the company,
selling to customers and providing a high level of customer focused service.
4.2 (a) The vendor must perform the prime service
on the run on up to six days each week, such days to be agreed between the
company and the vendor, which may include public holidays.
(b) Where the company and vendor are unable
to agree on the days, the matter shall be handled in accordance with clause 22,
Settlement of Disputes and Grievances.
(c) The vendor may request to service the run
on the seventh day or provide supplementary service on the run and the company
will grant such a request whenever it is practical to do so.
4.3 (a) The vendor will ascertain the
customers’ orders and needs, place orders with the company and adjust orders as
necessary in accordance with the company’s standard procedures.
(b) The company will sell and supply to the
vendor the products manufactured or supplied by the company which are needed
for the performance of the run.
(c) Title to the products will pass to the
vendor on receipt at the loading dock, delivery depot or agreed delivery point.
4.4 (a) The vendor must keep proper records of
the names and addresses of all customers serviced by him/her in the usual time
and order in which such customers are serviced.
(b) The vendor must, on request, provide
the company with such copies of these records as the company may require from
time to time.
(c) The records and all copies of the records
will at all times remain the property of the company.
4.5 (a) The vendor must not engage in activities
which compete with the business of the sale of the company’s products to
customers and will not engage in any activities, acts, matters or things which
may jeopardise or prejudice the income or anticipated income of the company.
4.6 The vendor may trade in products other
than the products supplied by the company for delivery to customers that do not
compete with any other GWF products. Written approval of the company must be
obtained before a vendor can carry goods other than those of the company.
4.7 The vendor must merchandise the products
in accordance with the reasonable requirements and standards of the company and
the customers. This includes the supply
of point of sale material which may require periodic renewal.
4.8 The vendor must at all times comply and
conform to the conditions and requirements of all relevant statutes,
regulations, proclamations, ordinances and by-laws which relate directly or
indirectly to the delivery of the company’s products.
4.9 The vendor
shall use the stationery specified in Schedule 1, which shall be supplied by
the company.
4.10 (a) Unless the company directs otherwise,
all unsold products must be returned to the company.
(b) The vendor must account to the company
for returns of all unsold products by completing the returns documentation and
ensuring returns are checked and recorded by the company.
The vendor shall manage and
control returns of unsold products and bread baskets in accordance with
reasonable standards from time to time specified by the company.
4.11 The vendor may be required to attend such
meetings, training, trade presentations, seminars and similar presentations as
may from time to time be reasonably required by he company, provided that
reasonable notice of required attendance is given to the vendor by the company.
4.12 The vendor must comply with all lawful and
reasonable directions of the company or any person duly authorised by the
company.
5. Company’s Rights and
Liability
5.1 The company may from time to time
introduce new products, discontinue existing products or introduce seasonal
products.
5.2 The company
will not be liable to the vendor for:
(a) any delay in delivery of the company’s
products to the vendor occasioned by shortage of stock, delays in transit,
accident, strikes or by any other cause beyond the control of the company; or
(b) for any defect in the nature or quality of the company’s
products supplied to the vendor.
6. Appearance of the
Vendor and Staff
6.1 The company will provide the vendor with
a uniform kit described in Schedule 1 which the company will charge to the
vendor in accordance with Schedule.
6.2 The vendor
must at all times while performing his/her duties and obligations under this
award:
(a) wear the uniform provided by the company;
(b) dress, present and conduct himself/herself in a neat,
respectable and businesslike manner;
(c) wear suitable footwear; and
(d) ensure that all employees of the vendor comply with this
clause.
7. Delivery Vehicle
7.1 The vendor must provide, maintain and
operate at his/her own expense a vehicle that meets the specifications set out
in Schedule 2 for the performance of the run.
7.2 The vehicle must at all times comply
with all applicable statutes, regulations, ordinances, proclamations and
by-laws.
7.3 The company may, at its own expense,
have from time to time displayed or painted on any vehicle used or operated by
the vendor for the performance of the run such wording or advertising matter as
it may think fit and the vendor must not interfere with, deface or alter the
same without the prior written consent of the company. The vendor must not
display or allow to be displayed any other advertising or signs without the
prior written approval of the company.
7.4 The vendor must keep the vehicle clean
and in a fit and proper condition according to the reasonable requirements of
the company.
8. Replacement Vehicle on
Breakdown
8.1 The company may supply a replacement
vehicle, when the vendor’s vehicle is temporarily broken down, to enable the
vendor to have necessary repairs made, provided that:
(a) the vendor shall not be paid any
vehicle standing charge or vehicle running cost for the period during which the
company supplies a vehicle;
(b) the company shall pay all running costs of the vehicle
supplied; and
(c) the period during which the company
supplies a vehicle shall not exceed two weeks in any one year, unless
specifically agreed in writing in advance by the company, and then only to a
total of four weeks.
8.2 The vehicle
supplied by the company must be:
(a) driven and operated in a safe manner without damage to the
vehicle;
(b) maintained and operated in accordance with proper operating
procedures;
(c) kept clean and hygienic and washed and cleaned prior to its
return to the company; and
(d) kept roadworthy in accordance with RTA regulations.
8.3 The company will maintain appropriate
insurance in respect of the vehicle supplied by it but the vendor will be
liable for damage sustained as a result of any act, default or negligence of
the vendor, which is not covered by insurance.
9. Vendor Insurances and
Indemnities
9.1 The vendor must maintain a comprehensive
policy of insurance with an insurance company that is an approved insurance
company with the Insurance Industry Council against any claim for damage to or
caused by the vehicle used by him/her to perform the run.
9.2 The vendor shall at times indemnify and
keep indemnified the company from and against any liabilities, losses, damages,
costs and expenses of whatsoever description incurred by the company as a
result of any actions, suits or claims
made or brought against the company in respect of or arising out of:
(a) the debts of the vendor; or
(b) any act, default or negligence of he vendor in connection with this award.
9.3 The vendor must properly insure and keep
insured any worker employed by the vendor and in respect of whom the vendor
must provide insurance cover under the provisions of the relevant workers’
compensation legislation.
9.4 The vendor must insure himself/herself
and any persons acting on his/her behalf against liability from public risks
for an amount nominated by the company from time to time, but in any event not
less than $3,000,000.
9.5 The vendor must provide the company with
proof of currency of the insurance policies referred to in this clause on the
date of entering this award and must provide the company with evidence of the
renewal of the policies from time to time.
10. Vendor Account
10.1 The vendor shall purchase from the company
the units of bread required to service the run and the company shall charge the
vendor for the net sales units supplied at normal wholesale prices less the
discount specified in subclause 11.1 of clause 11, Vendor Discount.
10.2 The company
will give the vendor credit for:
(a) net sales units supplied to customers who are billed direct
by the company; and
(b) vehicle standing charge, vehicle running costs and other
fixed expenses.
10.3 The company shall provide to the vendor
each week a fully itemised account which itemises daily the total net sales
units during each week. The account will identify by product the total net
sales units made to customers who are billed direct by the company and credits
allowed in subclause 10.2 of this clause.
10.4 The vendor
shall pay each account within seven days of the account being provided to the
vendor.
11. Vendor Discount
11.1 A vendor shall be allowed a discount at
the rate set out in Item 1 of Schedule 7 for each net sales unit purchased from
the company.
11.2 The vendor shall be allowed the discount
only for net sales units which are sold and delivered by the vendor.
11.3 If in any week the vendor fails to comply
with the company’s normal credit terms, the vendor’s discount in respect of
that week shall be reduced by 2.5 per cent.
12. Reimbursement of
Expenses
12.1 A vendor
shall be allowed credit on each weekly account for:
(a) vehicle standing charge, depending on
the age of the vendor’s vehicle as set out in Item 2 of Schedule 7;
(b) vehicle running costs at the rate per kilometre set out in Item 3 of
Schedule 7 of the weekly distance travelled to perform the run, provided that a
maximum of 15 kilometres each way each day shall be paid for travel between the
vendor’s ordinary residence and the bakery or depot; and
other fixed expenses at the rate
set out in Item 4 of Schedule 7 for bad debts, uniforms, accounting fees,
stationery, public risk insurance and requirement to service customers on the
following public holidays: Australia Day, Easter Saturday, Easter Monday,
Queen’s Birthday, Labour Day and Union Picnic Day.
12.2 Reimbursement
of vehicle expenses shall be adjusted as set out in Item 5 of Schedule 7.
13. Minimum Discount
Where the amount calculated by subtracting the amount
payable by the vendor for the products purchased from the wholesale list price
value of products purchased by the vendor is less than an amount equal to that
which would have been paid to a level 3 employee for the hours worked in
accordance with the Miscellaneous Workers and Tip Top Bakeries (NSW) Enterprise
Award, the company shall pay an additional discount such that the amount
calculated is not less than the appropriate award-based rate.
14. Leave
14.1 The vendor
shall be entitled to:
(a) five calendar weeks annual leave after
each completed year of engagement, which shall be taken within six months of
its accrual;
(b) long service leave in accordance with the Long Service Leave Act 1955;
(c) nine days sick leave each year of
engagement, which shall be cumulative from year to year if not taken (each
working day of sick leave taken shall reduce the balance of sick leave by one
day); and
(d) one day of leave to be taken as agreed
with the company for each gazetted public
holiday, except those specified in
paragraph (c) of subclause 12.1 of clause 12, Reimbursement of Expenses.
14.2 The company shall provide an employee to
perform the run while the vendor is on annual leave, long service leave or sick
leave.
14.3 During
periods of annual leave, long service leave and sick leave the vendor shall
receive:
(a) the same discounts for the net sales
units achieved on the run in the vendor’s absence that he/she would have
received had he/she performed the run; and
(b) the other fixed expenses that are payable in respect of the
run.
(c) The company will be responsible for the
collection of all monies and will be responsible for any shortages or debts
incurred during the period the vendor is on leave.
14.4 (a) One week prior to the date the vendor has been approved to
go on annual or long service leave, the vendor shall provide the company an
accurate list of customers serviced on the run on a daily basis, including the
usual time and order of service and any special instructions.
(b) If the vendor fails to provide the list
in accordance with paragraph (a) of this subclause, the company may provide an
employee to accompany the vendor for such period as is necessary to bring the
necessary records up to date and charge the vendor the cost to the company of
employing the employee for the period the employee accompanies the vendor.
14.5 (a) If the vendor is proceeding on annual or long service
leave for more than one week, the vendor may, by notice in writing given at
least one week prior to the commencement of leave, request prepayment of the
leave.
(b) If a request is received that complies
with paragraph (a) of this subclause, the company shall prepay the leave at the
award rate.
(c) The company shall reconcile the
prepayment with settlement of the account due on resumption of the vendor from
leave.
14.6 While the
vendor is on leave the company is not obligated to provide a vehicle to service
the run.
14.7 If, while the
vendor is on leave, the vendor’s vehicle is used by the company to service the
run:
(a) The company must pay to the vendor the
vehicle standing charge and vehicle running cost for the vehicle.
(b) The company must check the vendor’s
vehicle or roadworthiness and safety prior to use by the company.
(c) The vendor shall be responsible for the
insurance of the vehicle and must advise the insurer of his/her vehicle that an
employee of the company will be driving the vehicle.
(d) In the event of an accident occurring
and if the employee of the company performing the run is under 25 years of age,
the company will meet any additional excess under the vehicle insurance policy
in relation to a driver under age 25.
(e) The company shall be liable only for
mechanical damage caused by the negligence of the company or the company’s
employee.
(f) The vendor shall be liable for
accidental damage, wear and tear, normal repairs and costs of fuel, consumable
and routine maintenance.
(g) The company shall carry out, at the
vendor’s expense, normal routine maintenance (fuel, air, water and oil) and
routine servicing.
(h) The company must ensure that the vendor’s
vehicle is used only to perform the deliveries on a "yard-to-yard"
basis unless otherwise agreed with the vendor.
14.8 If, while the vendor is on leave, the
company’s vehicle is used by the company to service the run, the company shall:
(a) pay to the vendor the vehicle standing charge;
(b) not pay to the vendor any vehicle running costs; and
(c) shall charge the vendor the vehicle standing charge of a
four-year-old vehicle.
15. Non-personal Service
15.1 The vendor must notify the company
immediately if the vendor is unable to personally carry out his/her duties and
obligations under this award for any reason whatsoever.
15.2 Where the vendor is unable to personally
carry out his/her duties and obligations under this award as a result of a
substantiated illness or injury or other absence authorised by the company, and
providing that available paid leave has been exhausted, the vendor may, at
his/her own expense, engage a competent person approved by the company
("approved person") to carry out the duties and obligations of the
vendor under this award for a period not exceeding 13 weeks, except in
exceptional circumstances.
15.3 The approved
person will be required to comply with the provisions of this award.
15.4 If the vendor engages an approved person,
the provisions of clauses 10, Vendor Account; 11, Vendor Discount; 12,
Reimbursement of Expenses, and 13, Minimum Discount, shall continue to apply as
if the vendor was performing the run.
15.5 If the vendor is unable to engage an
approved person, the company will appoint a person to carry out the duties and
obligations of the vendor under this award.
15.6 During the period that the company
arranges for a person to carry out the vendor’s duties and obligations under
this award, the vendor:
(a) will not receive any payments for other
fixed expenses or of any discounts for the net sales units achieved on the run
in the vendor’s absence; and
(b) will only receive payment for vehicle
standing charge and vehicle running cost if the vendor’s vehicle is used to
perform the run.
16. Value of Run
16.1 The company carries on the business of
manufacturing, marketing, selling and distributing bread and related products
("the business"), and the goodwill of the business is, and will at
all times remain, the property of the company.
16.2 The company recognises that the run has a
value based upon the right of the vendor to perform and provide service to a
list of customers which constitute that run for the purpose of calculating the
value of the run.
16.3 On engagement and termination of the
vendor the company shall provide to the vendor a written list of the customers constituting the run for the
purpose of calculating the value of the run.
Each addition or deletion of a customer which is included in the run for
purposes of calculating the value of the run shall be advised to the vendor in
writing.
16.4 Initial fee for new vendor on or prior to
the engagement of the vendor by the company, the vendor must pay the company an
initial fee for the right to perform the run calculated in accordance with
Schedule 3.
16.5 Removal of a customer from the run the
company may at any time remove a customer from the run, provided that:
(a) the company gives he vendor at least one month’s notice of its
intention to remove that customer, except where the customer demands the vendor
no longer services that customer (in which case the company may remove the
customer immediately); and
(b) where the customer is listed as
constituting part of the run for the purpose of calculating the value of the
run, the company pays the vendor at the time of removal of that customer an
amount calculated in accordance with Schedule 4; and
(c) the company, for the following period of 26 weeks, either:
(i) provides to the vendor other customers
that have weekly net sales units of not less than the customer removed; or
(ii) continues to pay to the vendor an amount
per week equal to the discounts applicable to all the net sales units that
the vendor sold to the customer on
average over the previous 13 weeks.
16.6 Addition of a
customer to a run:
(a) The company may request the vendor to provide service to new
or additional customers.
(b) Where a new or additional customer is
added to the run and is to be listed as a customer for the purpose of
calculating the value of the run, the vendor shall pay to the company an amount
calculated in accordance with Schedule 5.
17. Engagement of a Vendor
On or prior to the date of engagement of the vendor, the
company must provide to the vendor a letter in the form set out in Schedule 6.
18. Termination of
Engagement
18.1 The company may terminate the engagement
of the vendor by giving three months’ notice in writing to the vendor.
18.2 Without prejudice to any other remedy the
company may have against the vendor, the company may terminate the engagement
of the vendor immediately, by written notice to the vendor, if the vendor:
(a) breaches or fails to perform any of the provisions of this
award;
(b) becomes bankrupt or assigns his/her estate for the benefit of
his/her creditors or any of them;
(c) becomes of unsound mind or a person whose
person or estate is liable to be dealt with in any way under the law relating
to mental health;
(d) is convicted of any indictable offence; or
(e) is guilty of any conduct which in the
opinion of the company might tend to
injure the reputation or the business of the company or any of its related
bodies corporate (as defined in Section 50 of the Corporations Law or any
provision of any legislation replacing the Corporations Law).
18.3 The vendor may terminate his/her
engagement by giving three months’ notice in writing to he company, or such lesser period as may be agreed.
19. Consequences of
Termination
19.1 On
termination of engagement of the vendor for any reason whatsoever:
(a) The vendor must deliver up to the company
all customer lists, stationery, documentation, records, uniforms and all other
property of the company in his/her possession or under his/her control.
(b) The Company will, at its own expense,
remove such wording or advertising matter as it may have caused to be displayed
or painted on the vendor’s vehicle in accordance with subclause 7.3 of clause
7, Delivery Vehicle, and the vendor will be responsible for the removal of any
other advertising matter or signs on the vehicle.
(c) The company will pay to the vendor a
termination fee for maintenance and enhancement of the run calculated in
accordance with Schedule 3, less any monies owing by the vendor to the company,
including any amount to be deducted in accordance with the transitional
arrangements entered into between the vendor and the company.
(d) The vendor will be solely and entirely
responsible for he collection of any amount outstanding or products supplied by
the vendor, except to customers who are billed direct by the company.
19.2 For a period of six months after the date
of termination the vendor must not, either alone or in partnership or as an
agent or employee of any person, firm or corporation, in any way, directly or
indirectly, solicit or endeavour to obtain the custom of or serve or cause to
be served with bread or other bakery products any of the customers who were
served with products by him/her in performance of the run under this award
during the six months prior to the termination of the engagement.
19.3 On termination of the engagement of the
vendor, the vendor shall be paid any annual or long service entitlement,
calculated at the award rate.
20. Assignment
This award may not be assigned by either party, except that
the company may assign its rights and obligations under this award at any time
to a related body corporate (as defined in Section 50 of the Corporations Law
or of the provisions of any legislation replacing the Corporations Law).
21. Run Volume Reduction
21.1 When the unit volume of a Vendor’s run
suffers a continued significant decline due to market place issues outside the
Vendors and Company’s control, the Company will initiate the following
procedure:
(a) Transfer units from an existing company
or Vendor (if that Vendor agrees) run approximate to the declined amount.
(b) If clause 21(a) is not possible, transfer
the Vendor run to another area of approximate unit volume.
(c) If clauses 21(a) and (b) are not
possible, buy back the run from the Vendor as is specified in clauses 18, 19
and schedule 3 of this award.
(d) After the Vendor run is bought back,
the Vendor may apply for employment as a company driver in line with the GWF
recruitment and selection process.
21.2 This can only be done twice in any
12-month period for each Vendor, and each instance will be treated separately.
21.3 The underlying objective of this clause is
to maximise customer service, distribution efficiency, Vendor viability and
best cost operations.
22. Settlement of Disputes
and Grievances
22.1 If a vendor or vendors have a grievance
with the company, the grievance must be dealt with in accordance with the
following procedure:
(a) A grievance must initially be dealt
with as close to its source as possible, with gradual steps for further
discussions and resolution at higher levels of authority.
(b) The vendor(s) must notify in writing the
Area Manager as to the substance of the grievance, request a meeting for
discussions and state the remedies being sought.
(c) If the grievance is not resolved
through discussion with the Area Manager, the matter must be referred to the
responsible District or Sales Manager and discussed with the Site Vendor
Consultative Committee.
(d) At the conclusion of the discussions, the
company must provide a response to the grievance including, if the matter has
not been resolved, any reasons for not implementing any proposed remedy.
(e) If not resolved at the operations level,
the issue must be referred to the company’s senior management and dealt with
by:
(i) discussion between the company, vendor and union;
(ii) referred to an agreed mediation mechanism; or
(iii) referred to the Industrial Relations Commission of New South
Wales.
(f) Reasonable time limits must be allowed for discussions at
each level of authority.
(g) Whilst this procedure is being followed, normal work must
continue.
22.2 The company may be represented by an
industrial organisation of employers and the vendor may be represented by the
union for the purpose of each stage of this procedure.
23. Application
This award shall apply to vendors engaged by the company
within New South Wales operating from the Chatswood, Fairfield and Illawarra
Bakeries.
24. Duration
This award shall take affect from the first account week to
commence on or after 15 May 2001 and shall remain in force for a period of
three years.
25. Area, Incidence and
Duration
The award rescinds and replaces the Bread Vendors (Tip Top
Bakeries Sydney) Award published 26 November 1999 (312 I.G. 324). Rates to be
paid to vendors for units of product under this award shall take effect, in
respect of each vendor, from the time the company rationalises each vendor’s
route round.
26. Review
Not later than six months prior to the expiry of this award
the company, vendors and the union shall commence a process to review this
award.
This process shall include:
(a) an exchange of issues, items and matters for review;
(b) opportunity for direct involvement, communication and
discussion with and by each vendor; and
(c) the establishment of a timetable for
conclusion of the review process and reaching a new agreement prior to the
expiry date of this award.
27. Notices
27.1 Any notice, approval, consent or other
communication to be given or made under this award shall be in writing and
shall be delivered personally or given by prepaid registered post or facsimile
to a party at the last known address of that party.
27.2 Proof of posting by prepaid registered
post or of the dispatch of a facsimile shall be proof of receipt and, in the
case of a letter, on the third day after posting and, in the case of a
facsimile, on the day immediately following the date of dispatch.
Schedule 1 -- Stationery and Uniform
1. Stationery
(a) Printed delivery dockets
(b) Printed credit dockets
(c) Preliminary load sheets
(d) Returns slips
2. Uniform
(a) A vendor uniform kit will be supplied by
the company on engagement and charged to the vendor at 50 per cent of invoice
cost to the company.
(b) Replacement uniforms will be supplied
on a demonstrated needs basis and
charged to the vendor at 50 per cent of
invoice cost to the company.
(c) The vendor uniform kit will consist of:
Shirts (short sleeves) 5
Trousers 3
Shorts 3
Jackets 1
Socks 5
Schedule 2 -- Specification of Vendor Vehicle
1. If the vendor was engaged as a vendor
under the previous award immediately prior to the commencement of this award,
the vehicle used by the vendor for that purpose will be acceptable to the
company, provided that, in the opinion of the company, the vehicle is adequate
for the performance of the run.
2. New and Replacement Vehicles unless
specifically authorised in writing by the company, all new and replacement
vehicles shall satisfy the following specifications:
(a) cab chassis white painted to accommodate:
(b) pantech body with internal dimensions:
Width 2.l metres
Length 4.3 metres
Minimum Height 2 metres
(c) Maximum Unladen Vehicle
Height (including pantech) 3.3 metres
Schedule 3 -- Calculation of Initial Fee for New Vendor and Termination
Fee
1. In this Schedule "units" means
the average weekly net sales units, excluding house brand units, of bread to
the customers listed as constituting the run for the purpose of calculating the
value of the run.
2. The initial
fee and the termination fee will be calculated using the following formula:
Value = U x
P x 6.5 Where:
U
= Units; and
P
= List wholesale price of a
loaf of Sunblest effective at the date of calculation; provided that P shall be not less than $1.99.
NOTE: Where a
52-week history is not available for a customer on the run, 75 per cent of the
average weekly net sales units based on the available history of net sales
units will be used for formula calculation. An adjustment will be made when the
actual 52-week history figure is available.
NOTE: The
termination fee to be paid to an existing vendor shall not be less than the
value of the route round (equity) at the time immediately after the vendor
moved to the new route round as a result of the 997/98 Sydney Distribution
Rationalisation Project (Project 1).
This protection will not be afforded to equity lost as a result of the loss of
customers where such loss is caused by negligence or any other cause for which
the vendor can be reasonably held liable.
Schedule 4 -- Calculation of Value of Customer Removed from the Run
1. In this Schedule "customer"
means a customer removed from the run which was listed as constituting part of
the run for the purpose of calculating the value of the run at the date of
performing the calculation; and "units" means average weekly net
sales units, excluding housebrand units of bread.
2. The value of the customer shall be
calculated using the following formula:
Value =
U x P x 6.5 Where:
U
= Units for that customer; and
P
= List wholesale price of loaf of Sunblest effective at the date of calculation; provided that P shall be not less than $1.99.
Schedule 5 -- Calculation of Value of a New or Additional Customer
Added to the Run
1. In this
Schedule:
"Company Held Account"
means a customer which is:
(a) a member of a central buying group, and
the account is paid by the customer direct to the company and the company
carried the debt; or
(b) such other customers as may be agreed
between the vendor and the company, where the company carried the debt.
"Customer" means the
customer to be added to the list of customers constituting the run for the
purpose of calculating the value of the run at the date of performing the
calculation; and
"Units" means the
average weekly net sales units for the previous 52 weeks for the customer,
excluding housebrand units of bread.
"Vendor-held Account"
means any customer, which is not a company-held account.
2. The value
of a new customer which is a company-held account shall be the lesser of:
(a) any increase in the value of the run
calculated in accordance with Schedule 3 for the 52 weeks subsequent to the
customer being added to the run over the 52 weeks prior to the customer being
added to the run; and
(b) the value for the
customer calculated using the following
formula:
Value = U x
P x 6.5 Where:
U
= Units for the customer; and
P
= List wholesale price of loaf of Sunblest effective at the
date of calculation; provided that P shall
be not less than $1.99.
Provided that the value of the
customer will be deemed to be zero if the units on the run for 52 weeks after
adding the customer are less than the units used to calculate the initial fee
after adjustment for any new or additional customers or removal of any
customers.
3. Where a new customer which is a
vendor-held account is added to a run the vendor will not be required to pay
for that customer, and the company will not pay the vendor on termination for
the base level units originally obtained.
Growth in that customer will increase the vendor run value.
At the end of the first 52 weeks
of trading, a calculation will be made of the units which would have been
used for calculation of value as per paragraph 2 above (i.e., the lesser of customer units or net increase in units on run). On termination, the units, including the
customer, included in the run for purposes of run value will be calculated, and
reduced by the lesser of
(i) the units of
the customer over the 52
weeks prior to termination; and
(ii) the units originally
calculated for the 52 weeks after the customer commenced.
4. The value of a customer, either
vendor-held account or company-held account, added to a run after being removed
from another run, shall be:
Value = U x
P x 6.5 Where:
U
= Units for the customer; and
P
= List wholesale price of loaf
of Sunblest effective at the date of calculation; provided that P shall be not
less than $1.99.
Schedule 6 -- Letter of Engagement of Vendor
Dear (Insert name of the vendor) . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Engagement as a Bread Vendor
I am pleased to offer you engagement as a bread vendor with
Tip Top Bakeries ( ) under the
terms and conditions of the attached award.
Attached to this letter are the following annexure, which
form part of your contract of engagement:
Annexure 1: A list
of the customers constituting the run for purposes of calculating the value of
the run, showing net sales units for the previous 52 weeks.
Annexure 2: Calculation
of the initial fee in accordance with the award.
Annexure 3: List of
customers to be serviced on the run.
You will be required to perform deliveries to such customers
as specified by the company on the following days of the week (whether or not
these days are public holidays), unless specifically directed otherwise by the
company, viz.: ( )
inclusive.
Please sign below to accept this offer and forward the
amount of $.........to the company in payment of the initial fee for the run.
Yours faithfully, . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
On copy:
I accept the offer to become a bread vendor with the company
on the terms set out in this letter and the award.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 7 - Vendor Discount and Reimbursement of Expenses
Item
|
Clause
|
Brief Description
|
Amount
|
No.
|
No.
|
|
|
1
|
11.1
|
Unit Discount
|
16.56 cents on all net sales units for -
|
|
|
|
Bread - all proprietary and non proprietary bread.
|
|
|
|
Rolls - all one half dozen wrapped or unwrapped rolls,
|
|
|
|
excepting
those defined in Food Service.
|
|
|
|
Hot Plate - all Hot Plate products.
|
|
|
|
12.94 cents per one half dozen rolls on all net sales
units
|
|
|
|
for Food Service, with the exception of KFC cob rolls, for
which 12.94 cents will apply for one dozen rolls
|
|
|
|
Note: Vendor discount shall increase by 3% effective
|
|
|
|
15/05/2002 and 15/05/2003
|
2
|
12.1(a)
|
Vehicle Standing
|
|
|
|
Charge -
|
|
|
|
Year of Manufacture
|
Per Week
|
|
|
(as per compliance
|
$
|
|
|
Plate)
|
|
|
|
2001
|
412.00
|
|
|
2000
|
337.00
|
|
|
1999
|
281.00
|
|
|
1998
|
235.00
|
|
|
1997
|
200.00
|
|
|
1996 or earlier
|
172.00
|
3
|
12.1(b)
|
Vehicle Running Costs
|
3108 cents per kilometer of the weekly distance travelled
to perform the run (based on a fuel price of 96.9 cents per litre)
|
4
|
12.1 (c)
|
Other fixed expenses
|
$40.00 per week.
Note: Other fixed expenses shall increase by 3% effective
15/05/2003
|
5
|
12.2
|
Adjustments to Vehicle Expenses
|
(i) Vehicle
Standing Charge -
|
|
|
|
(a) The amount
of standing charge for each year of manufacture
is to be recalculated annually, effective
from 1 February each year, to be carried out
by the NRMA and based on a Isuzu NPR 300 with
pantech body depreciated over 6 years
|
|
|
|
(b) The
vehicle age for each vehicle is to be determined
by the month and year of manufacture shown
on the compliance plate. The standing charge
for each vehicle will be adjusted from the start
of each quarter commencing after the anniversary
of manufacture
|
|
|
|
(c) Vehicle
running cost is to be recalculated annually,
effective 1 February each year, on NRMA
calculation.
|
J. P. GRAYSON D.P.
____________________
Printed by the authority of the Industrial Registrar.