Commonwealth Bank of Australia

[2013] FWCA 7765

[2013] FWCA 7765

FAIR WORK COMMISSION

DECISION

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

Commonwealth Bank of Australia
(AG2013/9505)

COMMONWEALTH BANK ENTERPRISE AGREEMENT 2013

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 4 OCTOBER 2013

Application for approval of the Commonwealth Bank Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by the Commonwealth Bank of Australia Limited (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 Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union (the ‘Union’). The Agreement is to cover 23,108 employees up to and including MC and Service staff in various sections of the applicant’s business. 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 31 May 2013, and voting for the Agreement’s approval took place on 5 September 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 2,645 of the 2,860 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 19 September 2013, thereby satisfying s 185(3) of the Act. I note that while the voter participation was relatively low, the parties assured me that this was not uncommon in ballots for the Bank’s enterprise agreements.

[3] In the Employer’s Declaration in support of the application (Form F17), Mr Glenn Fredericks, HR Legal Counsel, identified the Commonwealth Bank of Australia Employees Award 1999 (AP772290) (the ‘former Award’) as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Fredericksprovided a comprehensive analysis of both the more beneficial and less beneficial terms of the Agreement when compared with the former Award. It is not necessary to set out the helpful analysis except to observe that the wage rates in the Agreement are 17% to 49% higher than the equivalent rates under the former Award. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility terms at clauses 7.2, 12.8 and 14.2, mandatory consultation terms at clause 25, and a disputes resolution procedure at clause 26 which provides for conciliation and recommendation (subject to exceptions) by the Commission.

[4] At a hearing of the application on 1 October 2013, Mr Tony Maroun, appeared for the applicant and Mr D Faddoul with Mr D Peddie 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 Maroun 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. Mr Maroun said that the salary increases, based on performance ratings for the 12 months to 30 June 2013, have already been passed on to the employees, with the vast majority of employees receiving a wage increase.

[5] Having heard the applicant’s 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 Enterprise Agreement 2013 Pursuant to s 54 of the Act, the Agreement shall operate from 8 October 2013 and have a nominal expiry date of 30 June 2014.

DEPUTY PRESIDENT

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