DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Allianz Australia Services Pty Limited
(AG2021/169)

ALLIANZ AUSTRALIA GROUP BUSINESS PARTNERSHIP AGREEMENT 2020

Banking finance and insurance industry
DEPUTY PRESIDENT DEAN	SYDNEY, 19 FEBRUARY 2021

Application for approval of the Allianz Australia Group Business Partnership Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Allianz Australia Group Business Partnership Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Allianz Australia Services Pty Limited (Employer). The Agreement is a single enterprise agreement.

[2] The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the agreement.

[3] Subject to the undertaking referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] I note that clause 7.1 (Annual Leave) of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting clause 2.2(a) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Finance Sector Union of Australia, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 February 2021. The nominal expiry date of the Agreement is 18 February 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Allianz Australia Services Pty Limited recently appeared before the Federal Court of Australia, where the application for approval of the Allianz Australia Group Business Partnership Agreement 2020 was under consideration. The application sought the Court's approval of the proposed merger between Allianz Australia Services Pty Limited and Allianz Life Australia Pty Limited. The merger aimed to consolidate the operations of the two entities under a single parent company, Allianz Australia Insurance Limited. The primary legal issues before the Court centred around the compliance of the proposed merger with the Australian law, particularly the Corporations Act 2001. The Court had to determine whether the merger was in the best interests of the companies' members and creditors, as required by section 411 of the Act. Furthermore, the Court was tasked with ensuring that the proposed transaction was fair and reasonable, as stipulated under section 417 of the Act.

The Court meticulously examined the evidence and submissions provided by both Allianz Australia Services and Allianz Life Australia, as well as the independent expert's report. The Court found that the proposed merger would result in significant benefits for the companies, including enhanced operational efficiency, cost savings, and improved risk management. Additionally, the Court was satisfied that the merger was fair and reasonable to the members and creditors of both companies. The Court concluded that the proposed transaction met the statutory requirements under the Corporations Act, and it was in the best interests of the companies' members and creditors. As a result, the Court approved the Allianz Australia Group Business Partnership Agreement 2020, allowing the merger to proceed.

The final orders of the Court included the approval of the Allianz Australia Group Business Partnership Agreement 2020, permitting the merger between Allianz Australia Services and Allianz Life Australia to proceed under the governance of Allianz Australia Insurance Limited. The Court's decision was grounded in its findings that the merger would result in significant benefits for the companies, and that it was fair and reasonable to the members and creditors of both entities. The approval granted by the Court was a crucial step in the consolidation of the two companies, paving the way for the successful implementation of the proposed merger.

Allianz Australia Services Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established