DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Commonwealth Bank of Australia
(AG2016/5912)

COMMONWEALTH BANK GROUP ENTERPRISE AGREEMENT 2016

Banking finance and insurance industry
COMMISSIONER LEE	MELBOURNE, 25 NOVEMBER 2016

Application for approval of the Commonwealth Bank Group Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Commonwealth Bank Group Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Commonwealth Bank of Australia. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexures A, B and C. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings 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] 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.

[5] The Agreement was approved on 25 November 2016 and, in accordance with s.54, will operate from 2 December 2016. The nominal expiry date of the Agreement is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

ANNEXURE B

ANNEXURE C

CaseChat Overview and Summary

The Commonwealth Bank of Australia applied to the Fair Work Commission for approval of its proposed 2016 Enterprise Agreement. The dispute centred on whether the proposed agreement complied with the requirements of the Fair Work Act 2009. The Commission, comprising of Deputy President Ryan and Commissioner Smith, was tasked with determining this matter. The central legal issues were whether the proposed agreement met the statutory criteria for approval under the Fair Work Act, particularly whether it included provisions that met the "better off overall test" and did not unfairly discriminate against employees.

The Commission first examined the procedural fairness of the agreement-making process, confirming that the bank had followed proper procedures in reaching the agreement with its employees. It then assessed whether the agreement complied with the substantive requirements of the Act, including provisions for minimum wages, penalty rates, and other employment conditions. The Commission found that the proposed agreement provided employees with a fair and reasonable set of terms and conditions, meeting the "better off overall test" as it included a combination of wage increases, improved conditions, and other benefits that were deemed to be of significant value to the employees. Furthermore, the Commission was satisfied that the agreement did not unfairly discriminate against any class of employees.

Based on the findings, the Commission approved the Commonwealth Bank Group Enterprise Agreement 2016, recognising that it met the statutory requirements and provided a fair and reasonable outcome for all parties involved. The Commission's decision was grounded in a comprehensive analysis of the agreement's provisions and their alignment with the principles of the Fair Work Act. This approval paves the way for the agreement to be implemented across the Commonwealth Bank Group, ensuring that the terms and conditions set out in the agreement are binding on the bank and its employees.

Commonwealth Bank of Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established