Summary of the Key Changes in the proposed Coles Store Team Enterprise Agreement

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1 Summary of the Key Changes in the proposed Coles Store Team Enterprise Agreement The Agreement will operate from 7 days after its approval by the Fair Work Commission (FWC) and will nominally expire on 3 May a 9.28% increase to wages over the term of the agreement (including the interim increase negotiated by the SDA payable from 7 204). This is equal to a $7.80 per week increase for full time, adult Store Team Members (Service Assistants). - Allowances are to be increased in proportion with the wages increase. - Increase to junior rates. 8 year olds will increase to 75% (from 67.5%) and 9 year olds will increase to 90% (from 80%) from Customer Service Agents (CSAs) now have their own classification and a new rate of pay. The CSA rate of pay will increase by $52.30 on the date of a positive vote. The new rate of pay will be 05% of the store team member rate. - Classification changes: o Point of Sale Coordinators: team members in this role will be moved to the Store Team Member classification but will keep their higher rate of pay and receive full wage increases over the life of the Agreement. o Second In Charge (2IC): team members in the role of the Second In-Charge (trades or non-trades classifications) will continue to have their role saved until the end of the Agreement and receive full pay increases. o Permanent In-Charge (PIC): as per the 20 Retail EBA, this role will be removed from the proposed Agreement. Existing PICs will be saved and reclassified as Store Team Members. The difference between a PIC s current rate of pay and that of a Store Team Member will be preserved and reduced each time there is a wage increase, by half the amount of the wage rise. o Night fill: a team member appointed to regularly be in charge of night fill team members will be paid the Department Manager/Team Leader (Non- Trades)/Duty Manager s rate of pay. However, if a team member is in charge of night fill team members only on an ad hoc basis, they will only receive the In-Charge allowance. o BiLo Administration Assistants: the BiLo Administration Assistant classification will be removed from the proposed Agreement with all team members in this role moved to the Office-in-Charge role and receive the higher rate of pay.

2 - Meat Units throughout Australia will be covered in the proposed Agreement (after the nominal expiry date of their current State based Meat Agreement). Currently, meat units in Queensland and the Northern Territory are covered by the existing Retail Agreement. Key provisions will be saved for existing meat team members. - General updating to the Agreement to bring it into line with the Fair Work Act and the National Employment Standards. - Redrafting of Agreement to make it easier to read and use.

3 Proposed new COLES STORE TEAM MEMBER AGREEMENT Following extensive negotiations, the SDA and Coles have finalised a proposed new Enterprise Agreement for your consideration. This document contains a summary of the major changes to your current Agreement. A full copy of the proposed Coles Store Team Member Agreement ( the proposed Agreement ) is available in your store for your consideration. After a consideration period, you will be asked to vote on the proposed Agreement by secret ballot conducted in your store. If endorsed by team members, the Company has agreed to implement the first pay increase from the first full pay period to commence after the date of a positive vote. This increase will also apply to allowances. All other terms and conditions of the proposed Agreement will apply 7 days after the Agreement is approved by the Fair Work Commission. The proposed Agreement has a nominal expiry date of 3 May 207. Any questions about the proposed Agreement should be directed to your SDA Delegate, SDA Organiser, or call the SDA on 3 SDA (3 732). Detailed below are the major features of the proposed Agreement including any significant changes to wages and/or conditions.

4 . One Enterprise Agreement The title of the proposed Agreement will be changed to the Coles Store Team Enterprise Agreement and will apply across all departments. This means that the new Agreement will cover all weekly wage (non salaried) employees including Customer Services Agents (CSAs) working in Coles Online departments and meat department team members. All existing provisions of the Coles Supermarkets Australia Pty Limited and Bi- Lo Pty Limited Retail Agreement 20 continue except for the changes outlined below. The Agreement has been redrafted to make it easier to read. Changes include simplification of the language used, clearer numbering and formatting, removal of repetition and the re-locating of little-used provisions to the back of the Agreement. The new agreement will have a nominal expiry date of 3 May 207. This is 3 years from the date the current agreement was due to be replaced. 2. Wages The proposed Agreement provides for a 9.28% wage increase (or $7.80 per week) for a full-time adult Store Team Member (Service Assistant) over the life of the Agreement as set out below. The current rate for a full-time adult Store Team Member is $ This includes the interim pay increase negotiated by the SDA, which increased the Store Team Member rate from $ to $784.60, effective The wage increases also apply to part-time, casual, juniors and apprentice team members on a pro-rata basis.

5 FULL-TIME ADULT STORE TEAM MEMBERS Percentage Increase Monetary Increase Weekly Wage Hourly Rate Pre Agreement $ $ % $0.80 $ $20.65 Date of positive vote 205 December December 206.6% Calculated on the pre-agreement rate.5% Calculated on the rate from the date of the positive vote.5% Calculated on the rate from the date of the positive vote.5% Calculated on the rate from Dec 205.5% Calculated on the rate from Dec 205 Final Wage $ Cumulative Increase $7.80 (The weekly wage rates are rounded to the nearest 0 cents) $2.40 $ $20.97 $2.00 $ $2.29 $2.00 $82.00 $2.6 $2.30 $ $2.93 $2.30 $ $22.25

6 Proportionate increases will be paid to junior, permanent Store Team Members as per the table below: Pre Agreement PERMANENT STORE TEAM MEMBER HOURLY RATES Date of positive vote 205 December December 206 Under 6 years $9.6 $9.29 $9.44 $9.58 $9.72 $9.87 $0.0 6 years $0.8 $0.32 $0.49 $0.64 $0.80 $0.96 $.3 7 years $.20 $.36 $.54 $.7 $.88 $2.06 $ years $3.75 $3.94 $4.6 $4.37 $4.58 $6.45 $ years $6.29 $6.52 $6.78 $7.03 $7.28 $9.74 $ years and older $20.36 $20.65 $20.97 $2.29 $2.6 $2.93 $22.25 Proportionate increases will be paid to junior, casual Store Team Members as per the table below: Pre Agreement CASUAL STORE TEAM MEMBER HOURLY RATES Date of positive vote 205 December December 206 Under 6 years $.00 $.5 $.33 $.50 $.67 $.84 $ years $2.22 $2.39 $2.58 $2.77 $2.96 $3.6 $ years $3.44 $3.63 $3.84 $4.05 $4.26 $4.47 $ years $6.49 $6.72 $6.99 $7.24 $7.50 $9.74 $ years $9.55 $9.82 $20.3 $20.44 $20.74 $23.68 $ years and older $24.44 $24.78 $25.7 $25.55 $25.93 $26.3 $26.70

7 The wages of other classifications will increase by the same percentage as the store team member wage increase. Customer Service Agent (CSA) Skilled Non- Tradesperson (Bakery) Retail Leader Level Second In Charge (Non Trades) Meat Store Team Member Administration Assistant Department Manager /Team Leader (Non - Trades)/Duty Manager OTHER TEAM MEMBER CLASSIFICATION WEEKLY RATES Pre Agreement Date of positive vote 205 December December 206 $ $ $ $ $862.0 $ $ $82.50 $ $ $ $862.0 $ $ $ $83.70 $ $ $ $ $ $ $83.70 $ $ $ $ $ $838.0 N/A $85.50 $ $877.0 $ $ $ $85.70 $865.0 $ $89.20 $ $97.90 $85.20 $863.0 $ $ $903.0 $96.60 $ Baker $ $ $ $894.0 $ $ $ Office In-Charge $ $ $89.0 $ $97.90 $93.60 $ Skilled Non- Tradesperson (Meat) Second In Charge (Trades) Department Manager/ Team Leader (Trades) $ N/A $ $90.00 $94.40 $928.0 $94.80 $ $ $ $ $ $ $ $ $90.60 $ $ $ $ $98.20 Butcher $ N/A $ $ $ $, $,023.70

8 3. Junior Rates The proposed Agreement will provide a significant improvement to junior rates for 8 and 9 year old team members. The increase to these junior rates will apply from 206. Current Rate New Rate (from 206) Percentage Increase 8 Year Olds 67.5% 75% 7.5% 9 Year Olds 80% 90% 0% All other junior rates are unchanged. In negotiations for a following Agreement, the SDA will seek adult rates for 9 year old team members. 4. Allowances (a) General Allowances Allowances will increase in proportion to the wage rises as follows: Current Date of positive vote Meal Allowance $3.0 $3.50 $3.90 $4.30 Travel per km for vehicles up to 2000cc per km for vehicles over 2000cc $0.69 $0.7 $0.73 $0.75 $0.77 $0.79 $0.82 $0.84 First Aid (per day) $2.05 $2.0 $2.5 $2.20 Dairy / Freezer Allowance (per week) Full-time $0.35 $0.65 $0.95 $.30 Part-time / Casual (per hour) $0.27 $0.28 $0.29 $0.30

9 (b) In-Charge Rates In-charge rates will increase in proportion to wage rises as follows: In-Charge Rates (per week): Less than 3 team members Current Date of positive vote $26.0 $26.90 $27.70 $ team members $34.85 $35.90 $37.00 $38.0 More than 0 team members $43.70 $45.00 $46.35 $ Rostering The proposed Agreement requires that the Company must consult a team member for input and discussion before any proposed change to their roster. The Company is also required to have regard for the team member s caring responsibilities when establishing or changing a roster. There are no other changes to the rostering provisions. 6. Qualifying Period The proposed new agreement will stipulate a 6 month qualifying period for new team members in line with the Fair Work Act Classifications Changes to the classification structure of the proposed Agreement are as follows: a) Point of Sale Coordinator (POSC) The proposed Agreement provides that all existing POSCs will continue to receive the full POSC rate of pay, including all wage increases over the life of the proposed Agreement. However, POSCs will be reclassified as Store Team Members. Upon the commencement of the proposed Agreement, no new team members will be appointed to the Point of Sale Coordinator position. POSC duties can be performed under the Store Team Member classification and employees performing these duties will receive the Store Team Member rate of pay.

10 b) Second In-Charge (Trades and Non Trades) The Second In-Charge (Trades and Non Trades) saved classifications will remain unchanged over the life of the proposed Agreement. Existing team members engaged in these classifications will receive full wage increases. No new team members will be appointed to Second In-Charge and the classification will cease to apply at the end of the proposed Agreement. Team members engaged in these classifications will then be re-classified as Store Team Members. Store Team Members who are required to act in charge of a department in the absence of the Department Manager/Team Leader, will be paid the applicable In-Charge allowance. Where a team member is re-classified as a Store Team Member at the end of the proposed Agreement, the difference in the current rate of pay will be preserved. The preserved amount will be absorbed (or reduced) each time there is a wage increase (in a successor agreement) by half of the amount of the wage rise until the preserved amount is fully absorbed. A team member converted from a saved Second In-Charge classification to the Store Team Member classification will receive the In-Charge allowance in line with the proposed Agreement, when they are required to act in charge of other employees. c) Acting Department Manager/Team Leader Under the proposed Agreement, if a team member is required by the Company to temporarily perform the full range of duties of a Department Manager/Team Leader and manage a department or departments for at least 2 weeks, they shall be paid the appropriate Department Manager/Team Leader rate instead of the In-Charge allowance. d) Customer Service Agents (CSAs) A Customer Service Agent (CSA) is a team member engaged to perform customer deliveries and related duties (including picking), in addition to the duties of a Store Team Member. Under the current Agreement, CSAs are being paid at the Store Team Member rate. The proposed Agreement provides that CSAs shall have their own classification and receive 05% of the appropriate Store Team Member rate of pay. The rate of pay has been positioned between the rate for a Store Team Member (personal shopper) and the Online Department Manager. This is a $52.30

11 increase to the weekly rate, and will be paid in the first full pay period from the date of a positive vote on the proposed Agreement. e) Skilled Non-Tradesperson in Bakery and Meat Under the proposed Agreement, the definition of Skilled Non-Tradesperson in bakery and meat has been amended to reflect that a team member appointed to this classification has completed Company nominated training. The definition also refers to the following indicative duties for this classification: engaging and interacting with customers, providing advice to customers on products, meal solutions, and nutritional information, and conducting tastings and product selling. A Skilled Non-Tradesperson who has completed the Company nominated training can work unsupervised in their department. However, they shall not be asked to perform duties for which they have not been trained. f) Permanents In-Charge The Permanent In-Charge (PIC) role will be removed from the proposed Agreement. Existing PIC s will be saved and re-classified as a Store Team Member. The difference between a PIC s current rate of pay and that of a Store Team Member will be preserved and reduced each time there is a wage increase, by half the amount of the wage rise. The In-Charge allowance will be paid to Store Team Members who are asked to act in charge of other team members, including saved PIC s who have been reclassified as Store Team Members. g) Nightfill A team member who is regularly in charge of night fill team members will be paid the Department Manager/Team Leader (Non-Trades)/Duty Manager s rate of pay. However, if a team member is only in charge of night fill team members on an ad hoc basis, then they will only receive the In-Charge allowance. h) BiLo Administration Assistant The proposed Agreement will remove any distinction between the BiLo and Coles rate of pay for the roles of Office in Charge and Administration Assistant. The BiLo Administration Assistant classification will be removed from the proposed Agreement. Team members in this role will be moved to the Office-in-

12 Charge role and receive the higher rate of pay of $89.0 per week (for a full time adult team member), payable from the date of positive vote. The references to Coles and Bi-Lo in the Administration Assistant and Office incharge roles have been removed. There will be only one Administration Assistant rate which applies in Coles or BiLo stores. i) Apprentices The proposed Agreement provides that apprentices will be recognised as adults from 20 years old (not 2), and that adult apprentices will be paid no less than the Store Team Member rate of pay for the first two years of their apprenticeship. j) Bakers The duties of bakers have been clarified to include engaging with customers and selling products. No other changes have been made to the Baker classification. 8. Meat Department Team Members The current Agreement only covers meat departments in supermarkets in Queensland and the Northern Territory. Other States and Territories, including New South Wales and the Australian Capital Territory, have a separate State based Meat Agreement. The proposed Agreement will now cover all meat departments in all States and Territories. The meat Agreement that applies in NSW and the ACT will likely have expired by the time that the proposed Agreement goes to the vote. If the proposed Agreement is approved by the Fair Work Commission, it will cover all meat team members in NSW and the ACT. a) General Savings Savings of key provisions will apply to all existing meat team members covered by the NSW/ACT Meat Agreement at the time the proposed Agreement is approved by the Fair Work Commission. These savings cover a range of key provisions, including existing: Penalty rates Span of hours Cold Work allowances (where applicable) Picnic Days (where currently applicable) Existing RDO arrangements (where currently applicable) Junior percentages Casual loading Superannuation arrangements

13 Sick and Carers leave accruals and penalties paid on leave (where currently applicable) Existing Saturday conditions for eligible existing meat team members and applicable penalties (fixed term rosters) Sick Leave payouts (for eligible team members); and Retail Ready Meat redundancy milestone payments and redundancy pay. b) Meat Packers/Cabinet Attendants (renamed to Meat Store Team Member) Existing Meat Packers / Cabinet Attendants will be renamed Meat Store Team Members and can be rostered to work in any department. Meat Store Team Members will remain on their existing rate of pay and receive full pay increases under the proposed Agreement. In addition to the above savings, existing permanent part time Meat Store Team Members will have their minimum engagements (both per day and per week) saved. There is no end date on these savings. Under the proposed Agreement, no new team member will be engaged as a Meat Store Team Member or Meat Packer/Cabinet Attendant. Instead, the Company will be able to engage a Store Team Member to perform meat packing duties. The Company has committed that team members on saved conditions will not be replaced by team members who do not have the same conditions. c) Butchers and Skilled Non Tradespersons (meat) Existing Butchers and Skilled Non Tradesperson (meat) will receive full pay increases under the proposed Agreement. Butchers duties have been clarified to include engaging with customers and selling. Butchers can only work outside the meat department by agreement. This agreement can be withdrawn by providing the Company with two weeks notice. 9. Domestic and Family Violence Leave Clause The proposed Agreement contains a Domestic and Family Violence Leave clause. The SDA and Coles recognise that team members who are experiencing domestic or family violence may need additional support. This provision entitles team members who are experiencing domestic or family violence to access sick or carer s leave, annual leave or leave of absence. The company may request reasonable supporting documentation in these circumstances.

14 0. Compassionate Leave The Compassionate Leave clause has been re-formatted to make it easier to read and now includes a table that outlines the entitlements. The proposed Agreement no longer includes the words including the day of the funeral where there is an entitlement to 5 or 3 paid shifts of compassionate leave. The proposed Agreement does not link these entitlements to attendance at the funeral. Under the proposed Agreement, full time and part time team members shall receive a maximum of 5 paid shifts (formerly 3 paid shifts) compassionate leave upon the death of a step-parent.. Natural Disaster Leave Under the proposed Agreement, where a permanent team member is unable to attend work as rostered due to a natural disaster, the team member may request to access Natural Disaster Leave. Requests shall not unreasonably be refused provided there are no reasonable alternative arrangements which would allow a team member to attend work. Reasonable alternative arrangements could include working at another store or the use of alternative transport. Additionally, where the current Agreement refers to children under the proposed Agreement this has been broadened to member of the household. 2. Leave of Absence The Leave of Absence clause has been re-formatted for ease of use. The entitlement has not changed. However during negotiations the SDA made the following claim: A team member who sustains an injury or illness will not be required to use their annual leave and long service leave entitlements prior to accessing a period of leave of absence. While not reflected in the proposed Agreement, the Company has agreed that team members should not be required to exhaust their annual leave and long service leave entitlements prior to taking unpaid leave due to illness or injury. In such a case the Company has indicated that an ill or injured team member would be on unpaid sick leave and not unpaid leave of absence.

15 3. Parental Leave ability to work on a casual basis The proposed Agreement provides that a team member may request to be engaged on a casual basis during a period of parental leave. Where this is agreed, team members and the Company must be mindful that by law, a team member may not be engaged on a casual basis during a period when they are in receipt of the government parental leave payment. 4. Freezer Jackets The SDA sought a commitment from the Company concerning the provision of clean and hygienic freezer jackets. Although not recorded in the proposed Agreement, the Company has committed to ensure that jackets are to be regularly laundered and adequate numbers of jackets be provided in all stores. Disputes in relation to this matter should be dealt with in accordance with the dispute resolution procedure. 5. Work on Registers The SDA raised the issue of rotating between left and right handed registers as a health and safety issue with the Company. While not recorded in the proposed Agreement, the Company has provided the SDA with a Safe Work Practice (SWP) document titled Scanning and Packing. This SWP includes the following: When scanning is your only task, rotate between left and right handed registers. The Company has indicated that rotations should occur between 2 and 4 hours depending on the individual team member. 6. Other Matters (a) (b) All clauses in the proposed Agreement have been reviewed to ensure their compliance with the National Employment Standards (NES). Under the proposed Agreement, the Company will provide waterproof boots to team members working in dairy upon request.

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