Commonwealth Bank of Australia

[2014] FWCA 7094

[2014] FWCA 7094

FAIR WORK COMMISSION

DECISION

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

Commonwealth Bank of Australia
(AG2014/9032)

COMMONWEALTH BANK GROUP ENTERPRISE AGREEMENT 2014

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 9 OCTOBER 2014

Application for approval of the Commonwealth Bank Group Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Commonwealth Bank of Australia (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Commonwealth Bank Group Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union of Australia (the ‘Union’) and is to cover 32,011 non-executive employees who are employed by the applicant, Colonial Services Pty Limited, Commonwealth Insurance Limited and Commonwealth Securities Limited throughout Australia. 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 17 December 2013, and voting for the Agreement’s approval took place between 29 August and 3 September 2014. The time limits under s 181(2) of the Act are thereby satisfied. In an electronic ballot conducted by Elections Australia, 2,927 of the 3,276 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 17 September 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr G Fredericks, HR Legal Counsel, identified the following instruments as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’):

• Banking, Finance and Insurance Award 2010 [MA000019];



• Commonwealth Bank of Australia Employees Award 1999 [AP772290];



• Colonial Group Enterprise Award 2003, The [AP826416];



• Insurance Industry Award 1998 [AP784988]; and



• Commsec Award 2006 [AP846857].

[4] Mr Frederickssaid that the Agreement does provide for some terms and conditions that are less beneficial than the reference instruments, including increased ordinary hours and the removal of some allowances. However the Agreement provides for a number of terms and conditions that are in excess of, or more beneficial than those under the reference instruments, including substantially higher rates of pay and enhanced severance entitlements for some employees. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 7 and 22 respectively, and a disputes resolution procedure at clause 22.3 provides for conciliation by the Commission.

[5] At a hearing of the application on 2 October 2014, Mr G Fredericks and Ms J Smith appeared for the applicant and Ms A Clancy and Mr G Derrick 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 Fredericks 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 rates of pay for Commonwealth Bank employees would be increased with reference to performance on 1 July 2014 and/or 1 January 2015 in accordance with cl 5.4 of Sch A of the Agreement. This clause reflected an arrangement in the Commonwealth Bank’s enterprise Agreements over many years. Mr Derrick and Ms Clancy supported the application and agreed the Agreement met the BOOT.

[6] 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 Commonwealth Bank Group Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 9 October 2014 and have a nominal expiry date of 30 June 2015.

DEPUTY PRESIDENT

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