Community First Credit Union Ltd

[2014] FWCA 1030

[2014] FWCA 1030

FAIR WORK COMMISSION

DECISION

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

Community First Credit Union Ltd
(AG2014/3504)

COMMUNITY FIRST CREDIT UNION ENTERPRISE AGREEMENT(2013 - 2016)

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 13 FEBRUARY 2014

Application for approval of the Community First Credit Union Enterprise Agreement(2013-2016).

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Community First Credit Union Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Community First Credit Union Enterprise Agreement(2013 - 2016) (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union of Australia (the ‘Union’) and three non-Union Employee Bargaining Representatives. The Agreement is to cover 96 employees who are engaged at the applicant’s credit unions across Western Sydney and the Central Coast in New South Wales.

[2] The employees were last notified of their representational rights on 2 May 2013, and voting for the Agreement’s approval took place between 14 and 16 January 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 61 of the 75 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 28 January 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms T Jackson, Talent Manager, identified the Banking, Finance and Insurance Award 2010 [MA000019] and the Credit Union Award 1998 [AT837084] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Jacksonsaid that the Agreement does contain some terms and conditions that are less beneficial than those under the reference instruments, including less generous motor vehicle and standby allowances, the removal of the ability to take leave in advance in certain circumstances and an increase in span of hours. However, the Agreement also provides for a number of terms and conditions that are in excess of, or more beneficial than those under the reference instruments, including higher rates of pay, enhanced redundancy entitlements and improved personal leave, compassionate leave and community service leave provisions. Rates of pay are to be increased by 2.75% from the date of the Agreement’s approval and 2.75% on the first and second anniversaries of the Agreement’s approval. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 1.6 and clauses 3.1-3.3 respectively, and a disputes resolution procedure at clause 3.4 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 10 February 2014, Mr N Chadwick, Solicitor appeared with Ms T Jackson for the applicant and Mr D Peddie appeared with Ms M Fernandez for the Union. Ms L Cannon appeared in her capacity as an Employee Bargaining Representative. The Union had filed a Declaration in relation to the application (Form 18) 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. However, the Declaration stated that the Union did not support the approval of the Agreement, raising particular concern as to the effect of clause 1.4.2 on minimum rates of pay. Mr Chadwick 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.

[5] Mr Chadwick explained that historically, clauses 1.4.2-1.4.5 were designed to cater for employees who were paid above the minimum rates set out in Schedule 1 of the Agreement (currently two employees only). He reiterated that no employees would be paid below the minimum rates set out in the Agreement. In response to my concerns as to the clarity of expression of these provisions, he offered to provide an undertaking that clarified the intent of the clause. Pursuant to s 191(1) of the Act, the undertaking is taken to be a term of the Agreement. A copy of this undertaking is attached to the Agreement and marked as ‘Annexure A’. Mr Peddie was satisfied with these assurances and submitted that if the Commission was satisfied the BOOT had been met, the Union would withdraw its objections. Ms Cannon said that she was happy with the Agreement.

[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, 188, 190 and 193, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Community First Credit Union Enterprise Agreement(2013 - 2016).Pursuant to s 54 of the Act, the Agreement shall operate from 17 February 2014 and have a nominal expiry date of 17 February 2017.

DEPUTY PRESIDENT

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