Australian Central Credit Union Ltd t/as People's Choice Credit Union

[2013] FWCA 7524

[2013] FWCA 7524

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement

Australian Central Credit Union Ltd t/as People's Choice Credit Union
(AG2013/9234)

PEOPLE'S CHOICE ENTERPRISE AGREEMENT 2013

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 27 SEPTEMBER 2013

Application for approval of the People's Choice Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Australian Central Credit Union Ltd t/as People’s Choice Credit Union (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the People’s Choice Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with the Australian Municipal, Administrative, Clerical and Services Union (the ‘Union’) and 13 Employee Bargaining Representatives. The Agreement is to cover 647 employees who are classed as ‘Non-Package’ employees, being employees who are paid a maximum full-time equivalent wage of $59,727 per annum, exclusive of superannuation and who would otherwise be covered by the Banking, Finance and Insurance Award 2010 (the ‘Modern Award’). They are distinguished from ‘Package’ employees whose terms and conditions are specified in common law contracts, paid a minimum salary package of $67,172 and who would not otherwise be governed by the Modern Award. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 15 August 2012, and voting for the Agreement’s approval took place between 19 August and 26 August 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 267 of the 506 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 6 September 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms D Mattiske-Wood, General Manager, Organisational Development identified the Banking, Finance and Insurance Award 2010 [MA000019], the Credit Union Employees (SA) Award [AN150043], the Western Australia Credit Unions Award 2001 [AP811132], the Credit Union Award 1998 [AP772291] and the Clerks’ (Credit and Finance Establishments) Award [AN160072] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Mattiske-Wood said that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including the removal of a First Aid Allowance, a lack of provision for annual leave loading, lower penalty rates for work performed on public holidays and less generous overtime entitlements. However, the Agreement provides for a number of terms and conditions that are more beneficial than those under the reference instruments, including higher rates of pay, higher duties allowance payable after 30 hours in any four week period, the accrual of up to 6 rostered days off, a non-accruable three month paid Sick Leave Safety Net for employees with more than five years service and 26 weeks paid parental leave for employees with more than five years service. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 13 and 8 respectively, and a disputes resolution procedure provides for conciliation and consent arbitration by the Commission.

[4] At a hearing of the application on 26 September 2013, Mr N Linke, Solicitor,appeared with Ms D Mattiske-Wood and Ms K Marks for the applicant and Ms F Donaghy for the Union. The Union had filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that it wishes to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Union is to be covered by the Agreement. Mr Linke outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. He explained that the Agreement introduced, for the first time, an arrangement under which rates of pay are to be increased by up to 3.5% with reference to individual performance and formal evaluation in the financial year 2013-2014. As there had been concern amongst some of the employees as to this change, it was likely this was the reason the vote for approval was close. However, he noted that 90% of the applicant’s employees had been previously assessed as having met or exceeded expectations, meaning that they would be entitled to an increase of at least 2.5% under the new arrangements. In addition, the Agreement provides for an automatic 2% pay increase for all employees from 1 July 2013. Ms Donaghy, while expressing her members’ concerns with the new pay for performance system,supported the submissions of Mr Linke.

[5] Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the People’s Choice Enterprise Agreement 2013.Pursuant to s 54 of the Act, the Agreement shall operate from 3 October 2013 and have a nominal expiry date of 30 June 2015.

DEPUTY PRESIDENT

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