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ENERGEX Employee Relations Strategy

20 August 20

07

Foreword by

The responsib ility for creatin g a positive em ENERGEX is ployee relatio shared by all. ns environmen It requires seni staff to make t at or executives, a commitmen m anagers, supe t to ENERGEXs of positive lead rvisors, and values and em ership, constru ployee relatio ctive relations ns principles hips, and mea ningful consul tation. This documen t delivers a cle ar statement of ENERGEX an the Employee d provides man Relations Stra agers and em for creating a tegy at ployees with positive empl the necessary oy ee relations clim work we are do framework ate. The strate ing across the gy strongly su organisation to pports the further improv e staff engage ment. Please take th e time to fam iliarise yourse so that we ca lf with the Em n work togeth ployee Relatio er to make EN ns Strategy ERGEX an ev en better plac e to work. Terry Effeney Chief Executive O

r The ENERGEX Executive Team and I are com people want to mitted to build be part of. Our ing an organi goal is to have workforce oper sation that a professiona ating successf l, engaged, an ully in a posit d flexible ive employee relations envir onment. I believe we ca n achieve this go al by : developing a high-perform ance culture th aligning EN at is driven by ERGEXs em our corporate ployee relatio values; corporate polic ns principles ies and strate and processe gi c s with our di re ction; putting appr opriate compl iance and gove developing rnance system good working s in place; an relationships d that represen with our empl t them. oyees and the unions

the Chief Ex ecutive Office

fficer

ENERGEX Vision
To set a new standard of excellence in delivering customers energy needs.

ENERGEX Employee Relations Vision


To create a positive employee relations climate that supports workforce safety, workforce capability, staff engagement and a high performance customer service culture.

Purpose
The purpose of this Employee Relations Strategy is to inform managers and employees of the requirements, responsibilities and processes required for a positive employee relations environment and the achievement of sustainable business outcomes.

Foundation
The Employee Relations Strategy supports the ENERGEX Vision and Values by providing the underlying principles to employee relations within ENERGEX. The Employee Relations function is an integral component of business operations and must be managed having regard to corporate priorities and potential risks, costs and impact on customer service. The ENERGEX Employee Relations Strategy adopts an integrated management approach to addressing employee relations issues. This approach supports employee relations options that encourage supervisors to lead and employees to actively participate and engage in positive, productive and safe work practices. The principles of positive leadership, constructive relationships and meaningful consultation are fundamental to the Employee Relations Strategy. All people management activities within ENERGEX should align to the four key elements of the Employee Relations Strategy. They are:

Alignment with ENERGEX Values


The ENERGEX Employee Relations Strategy supports the ENERGEX Values of:

Put safety FIRST Respect and support each other Impress our customers Set a great example Be a team player Deliver balanced results

1 Alignment with strategic direction 2 Governance and compliance 3 Focus on business outcomes 4 Constructive workplace relationships

Fundamental Principles
Positive Leadership
Managers and Supervisors within ENERGEX should positively inuence the employee relations environment by setting a great example and demonstrating leadership in the pursuit of constructive working relationships. A positive employee relations environment requires that all employees demonstrate positive leadership behaviour. This will contribute to the proactive and timely resolution of employee relations issues.

Meaningful Consultation
The pursuit of positive employee relations involves undertaking timely and meaningful consultation with key stakeholders, including employees and unions. Different situations will require different levels of consultation, such as:  Information sharing;  Response seeking;  Employee input into planning; and  Cooperative decision-making and planning. ENERGEX acknowledges the need to support and enable communication between managers and employees; and recognises that openly sharing ideas and information generally results in better outcomes through shared ownership.

Working Relationships
The achievement of common goals such as no injuries and impressive customer service can be facilitated through the development and maintenance of effective relationships founded on mutual support and respect. To create an environment of constructive workplace relationships requires a commitment to working with employees, managers and unions to take all reasonable steps to resolve issues. Effective relationships with Government, industry and business partners will assist in the development and implementation of employee relations initiatives. To ensure mutually acceptable outcomes are acheived, all parties have an obligation to actively communicate with each other in order to develop an understanding of each others goals and interests. ENERGEX will strive for balanced results which lead to a resolution of the issue and maintenance of a successful relationship.

ENERGEX Employee Relations Strategy ENERGEX Employee


To set a new standard of excellence

ENERGE

ENERGEX Employ

To create a positive employee relations climate that suppor and a high performance c

Fundamenta

Positive Leadership, Working Relat

Four Key
Alignment with strategic direction
Ensure Employee Relations outcomes conform with the ENERGEX direction Align employee relations strategies with corporate strategies and values Regular reporting on employee relations issues and trends Continuous review of the Employee Relations direction

Governance and compliance


Compliance with the legislative and policy framework Leaders setting a great example through accepting accountability Consistent interpretation of conditions and entitlements Compliance with workplace entitlements through training and audit processes

ENERGEX
Put safety FIRST Respect and support each other Impress our customers

Formal Employee Relation


CEO Meetings
Bi-annual Facilitate the development of high-level relationships between ENERGEX and unions, while addressing strategic issues.

Industrial Relatio Forum Meetings

Bi-monthly Encourage and promo relationship between Relations Consultants effective communicat

e Relations Strategy
in delivering customers energy needs.

EX Vision

yee Relations Vision

rts workforce safety, workforce capability, staff engagement customer service culture.

al Principles

tionships, Meaningful Consultation

Elements
Focus on business outcomes
Employee relations outcomes consistent with business priorities and values Employee relations initiatives that support organisational improvement Providing timely and accurate advice on employee relations issues Effective implementation and communication of employee relations outcomes

Constructive workplace relationships


Involve employees in decision making and promote issue resolution at the local level Promote ownership of organisational change initiatives Proactive, constructive and respectful dispute resolution practices Facilitate and maintain constructive relationships with unions

X Values
Set a great example Be a team player Deliver balanced results

ns Consultative Framework
Lines of Business Consultative Committees
Bi-monthly or Quarterly Promote consultation at the local level in each line of business.

ons Issues

ote a co-operative ENERGEX Industrial s and unions through tion and consultation.

Four Key Elements


2.Governance and compliance.
Governance includes developing and maintaining systems and processes to ensure compliance with industrial relations frameworks including legislation, industrial instruments and ENERGEX policy. Compliance is a joint responsibility that lies with both the employees who must claim entitlements appropriately and managers who are accountable for approval and endorsement of pay and conditions. It is important that all employees understand their conditions of employment and the signicance of their responsibilities in this area.

Strategy:
 Promoting compliance with the legislative and policy framework;  Ensuring accurate employment information is recorded and maintained;  Ensuring consistency in interpretation of conditions and entitlements;

1. Alignment with strategic direction.


Alignment with strategic direction ensures employee relations outcomes are consistent with the ENERGEX vision and values and support business priorities.

 Ensuring compliance through training and audit processes;  Meeting Government, internal and legislative reporting requirements;  Leaders setting a great example through accepting accountability; and  Ensuring timely and effective implementation of enterprise bargaining/workplace agreements, and changes to legislation, awards and policy.

Strategy:
 Ensuring employee relations outcomes conform with the ENERGEX direction through processes including enterprise bargaining and/or other workplace negotiations;  Committing to a continuous review of the employee relations direction to ensure it is aligned to corporate strategies and values;  Considering the impact of employee relations decisions across ENERGEX and industry;  Inuencing Government industrial relations policy to ensure that the business strategy of ENERGEX is accommodated; and  Understanding and communicating the impact of Government industrial relations policy on ENERGEX and ensuring effective implementation.

3.Focus on business outcomes.


A focus on business outcomes will ensure that employee relations initiatives are consistent with business practices.

4. Constructive workplace relationships.


Constructive workplace relationships contribute to the achievement of common goals such as safety, efciency and productivity, quality customer service, job satisfaction and career opportunities. A constructive approach will help to minimise industrial disputation and promote innovative issue resolution. Participative negotiation can provide a climate for facilitating resolution and delivering balanced results. In these circumstances, each party has more inuence over the outcome.

Strategy:
 Ensuring employee relations outcomes are consistent with ENERGEX priorities and support business practices;  The development of policy and industrial instruments in line with the ENERGEX vision, values and business needs;  Facilitating employee relations initiatives to support organisational improvement;  Providing timely and accurate advice on employee relations issues;  Utilising effective advocacy and representation in industrial forums; and  Ensuring effective implementation and communication of employee relations outcomes at all levels.

Strategy:
 Promoting constructive workplace relationships between employees and management at the local level;  Recognising the role of unions in issue resolution at the local level;  Involving employees in decision making and promoting issue resolution at the local level;  Promoting ownership of organisational change initiatives;  Promoting collaborative and productive working relationships and teamwork;  Proactive, constructive and respectful dispute resolution practices which encourage the timely resolution of disputes through consultation, information sharing and negotiation;  Promoting a exible approach to consultation with unions and addressing issues as they arise;  Consultative arrangements at all levels of the business; and  Facilitating and maintaining constructive relationships with key stakeholders including unions based on: > Open and honest communication; > Being professional and treating each other with respect; >  Promotion of equity and actively seeking diverse view points; > Genuine participation in the consultative process; and >  Valuing different points of view with a willingness to compromise when appropriate.

ENERGEX Formal Employee Relations Consultative Framework


 To encourage and promote constructive workplace relations between ENERGEX and unions through effective communication and consultation.

Divisional Consultative Committees


Divisional Consultative Committee Meetings are held bi-monthly or quarterly and are intended to:  Promote consultation at the local level in each line of business;  Facilitate communication at the local level between local union delegates, union ofcials, Human Resource Business Consultants, Industrial Relations Consultants and local management; and  Provide a forum for local issues to be resolved at the local level.

Chief Executive Meetings


Chief Executive Meetings are held bi-annually and are designed to:  Facilitate the development of high-level relationships between the Chief Executive Ofcer and senior union ofcials, while addressing strategic issues affecting the whole of the business; and  Ensure a forum to discuss workplace issues of strategic concern.

Industrial Relations Issues Forums


Industrial Relations Issues Forums are held bi-monthly between Industrial Relations Consultants and union ofcials and are designed to:  Encourage and promote a constructive relationship between ENERGEX and the unions through effective communication and consultation;  Facilitate consultation and dispute resolution on industrial issues;  Reduce potential industrial conict through the development of a positive employee relations environment;  Provide a regular forum for the exchange of ideas, opinions and information;  Proactively obtain input and feedback from unions on issues affecting ENERGEX and its employees; and  Facilitate the achievement of outcomes taking into consideration the needs and requirements of ENERGEX employees, customers and organisational goals.

Communication with Employees


ENERGEXs workplace relations approach recognises the benets of communicating directly with our employees wherever possible. Employees are encouraged to have genuine input to decisions about workplace issues at an individual, team and organisational level. Examples of initiatives in place to facilitate employee involvement and respond to feedback are:

Employee Communications Strategy


ENERGEX has a comprehensive approach to employee communications that is outlined in our Internal Communication Guides for Managers and Staff. Two-way communication is strongly encouraged, and we use a variety of mediums such as team brief meetings, the intranet, the daily bulletin board, staff newsletters, and noticeboards. Employees are also provided with regular opportunities to meet informally with the Chief Executive Ofcer through staff breakfasts, morning teas and site visits.

Annual Staff Survey


Our Annual Staff Survey monitors employee engagement, satisfaction, and opinion across a broad range of issues. Key issues raised in the survey are addressed in a corporate level action plan that is led and monitored by the Executive Team. All employees receive a copy of the survey results and the corporate action plan, and regular updates on progress.

Management Communication
Leaders attend regular forums to discuss business strategy and progress and are provided with assistance and support in communicating key messages to their employees. A focus on Management by Walking Around (MBWA) helps to ensure employees see their leaders regularly and have opportunities to make suggestions and raise concerns.

Staff Workshop Programs


Staff workshop programs are frequently used to encourage active employee involvement in the deployment of key business strategies and initiatives. Key topics for workshops include safety, the corporate values, and business strategy.

Work Practice Improvement Teams


Workplace Practice Improvement Teams serve an important function in the Energy Delivery Division. Frontline eld staff meet regularly in teams to develop and implement a range of work practice improvement initiatives.

Path for Issue Resolution

Manager Supervisor Employee

Feedback

Feedback

Employees who have an issue or concern in the workplace should raise it with their direct supervisor in the rst instance. Should the matter fail to be resolved at this level, the issue should be escalated to the next level of management. The Supervisor and Manager should endeavour to resolve the issue at the local level. Support for issues resolution will be available through Human Resources.

ENERGEX Ltd ABN 40 078 849 055 GPO Box 1461 Brisbane Qld 4001 Telephone 07 3407 4000 Facsimile 07 3407 4609 www.energex.com.au
XXXX XX.06.2006 NOUS