Allianz Australia Services Pty Limited

[2021] FWCA 4442

[2021] FWCA 4442

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Allianz Australia Services Pty Limited
(AG2021/6306)

ALLIANZ AUSTRALIA GROUP BUSINESS PARTNERSHIP AGREEMENT 2017

Banking finance and insurance industry
DEPUTY PRESIDENT DEAN	CANBERRA, 28 JULY 2021

Application for termination of the Allianz Australia Group Business Partnership Agreement 2017.

[1] An application has been made by Allianz Australia Services Pty Limited (Allianz) pursuant to s.225 of the Fair Work Act 2009 (the Act) for the termination of the Allianz Australia Group Business Partnership Agreement 2017 (the 2017 Agreement). The 2017 Agreement has passed its nominal expiry date of 10 May 2020.

[2] The provisions relevant to the application are contained in sections 225, 226 and 227 of the Act:

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

(c) an employee organisation covered by the agreement.

226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.

[3] The application was accompanied by a statutory declaration by Mr Nathan Hill, Head of Employee Relations of Allianz.

[4] According to Mr Hill, the 2017 Agreement applies to Allianz and other entities including Primacy Underwriting Management Pty Limited and Ken Tame & Associates Pty Limited which have all given consent to Allianz to file the application on their behalf.

[5] Allianz commenced negotiations with employees in or about July 2020 for a new enterprise agreement to replace the 2017 Agreement. This resulted in the Allianz Australia Group Business Partnership Agreement 2020 (the 2020 Agreement) being made which commenced operation on 26 February 2021. A significant change to the 2017 Agreement which led to this application was that the employees engaged in executive roles were removed from the coverage of the 2020 Agreement. The affected employees are those employed in the following roles:

a. Executive Managers;

b. Chief General Managers of Business Units;

c. Chief Operating Officer;

d. Chief Marketing Officer;

e. Chief Financial Officer;

f. General Manager;

g. roles equivalent to these roles; and

h. other senior managers of Business Units,

(together, the Executive Cluster).

[6] As a result of the change in coverage, the 2017 Agreement continues to apply to employees in the Executive Cluster. The balance of the employees who were covered by the 2017 Agreement are now covered by the 2020 Agreement.

[7] Mr Hill explained that if the Agreement is terminated, employees in the Executive Cluster would enter into employment contracts with Allianz which would provide significantly more beneficial terms than the 2017 Agreement. Mr Hill said that the termination is not contrary to the public interest and is in line with the industry practice where employees who hold positions which are the same or similar to the positions in the Executive Cluster are excluded from coverage of other enterprise agreements.

[8] Mr Hill stated that all employees in the Executive Cluster were provided with their proposed individual employment contracts and information sessions were held for discussions. On 1 July 2021, Allianz issued a communication confirming its intention to terminate the 2017 and no objection was received from any member of the Executive Cluster.

[9] Also accompanying the application were statements of six employees in the Executive Cluster, including Mr Hill, who all indicated their support to the termination of the 2017 Agreement. The statements also confirmed the consultation process undertaken by Allianz to seek the input and support from all affected employees in respect of the proposed termination of the Agreement.

[10] The Finance Section Union of Australia, being a party to the 2017 Agreement, was made aware of the application and did not oppose it.

[11] On the basis of the information provided I am satisfied that it is not contrary to the public interest to terminate the 2017 Agreement and it is appropriate to do so taking into account all the circumstances of this matter.

[12] I have considered, and am satisfied the requirements of s.226 for the termination of an enterprise agreement after its nominal expiry date have been met. Accordingly, the 2017 Agreement is terminated.

[13] The termination will come into effect from 28 July 2021.

DEPUTY PRESIDENT

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