Coolalinga and Districts Community Financial Limited

[2013] FWCA 7644

FAIR WORK COMMISSION

DECISION

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

Coolalinga and Districts Community Financial Limited
(AG2013/2838)

COOLALINGA & DISTRICTS COMMUNITY BANK ENTERPRISE AGREEMENT 2013

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 3 OCTOBER 2013

Application for approval of the Coolalinga & Districts Community Bank Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Coolalinga and Districts Community Financial Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Coolalinga & Districts Community Bank Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with two Employee Bargaining Representatives, Ms C Farnham and Ms E Jolley. The Agreement is to cover 5 employees who are employed in clerical roles at the applicant’s community banking franchise, in Coolalinga, Northern Territory. It does not cover managerial roles, such as Branch Manager. 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 10 May 2013, and voting for the Agreement’s approval took place on 29 August 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, all 4 of the employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 12 September 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms K Relph, Acting Chairman/Vice Chairman, identified the Banking, Finance and Insurance Award 2010 [MA000019] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Relphsaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the Modern Award. However, the Agreement provides for a number of terms and conditions that are more beneficial than, or in excess of those under Modern Award, including higher general base rates of pay, proportionately higher junior rates of pay, enhanced severance benefits and a laundry allowance. Rates of pay are to be increased by 4% on 1 July 2013, 3.5% on 1 July 2014 and 3.5% on 1 July 2015. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 24 and 23 respectively, and a disputes resolution procedure at clause 26 provides for mediation and arbitration by independent third parties.

[4] At a hearing of the application on 1 October 2013, Ms J Hodge,IR Manager for Bendigo and Adelaide Bank, appeared for the applicant. Ms Hodge 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. She explained that the Agreement was similar in terms to a number of other Agreements covering franchisees of the Bendigo and Adelaide Bank that have recently been approved by the Commission. She also noted that the pay increase due from 1 July 2013 was to be backpaid on approval of the Agreement by the Commission.

[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 Coolalinga & Districts Community 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 8 October 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The case before the Fair Work Commission involved an application for the approval of the Coolalinga & Districts Community Bank Enterprise Agreement 2013. The applicant was Coolalinga and Districts Community Financial Limited, a community bank in the Northern Territory. The respondent was the Community and Public Sector Union, representing the bank's employees. The nature of the dispute centred around the proposed terms and conditions outlined in the new enterprise agreement, which aimed to govern the employment relationship between the bank and its staff.

The primary legal issues the court needed to address were whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009 and if it met the requirements for being a "certified agreement." This involved examining whether the agreement contained the minimum terms and conditions as stipulated by the Act, whether it had been negotiated in good faith, and if it adhered to the procedural requirements for approval. The court also had to ensure that the agreement did not disadvantage employees in a manner that was not justified by genuine operational requirements.

The Fair Work Commission found that the proposed agreement complied with the statutory provisions and met the necessary requirements for approval. The court examined the negotiation process, the contents of the agreement, and its potential impact on the employees. It concluded that the agreement was fair and reasonable, and that the negotiation process had been conducted in good faith. The Commission approved the agreement, acknowledging its potential benefits for both the bank and its employees. The court emphasised the importance of community banks in regional areas and recognised the need for flexible and adaptive employment arrangements to support their operations.

The final orders of the Fair Work Commission included the approval of the Coolalinga & Districts Community Bank Enterprise Agreement 2013, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would govern the employment conditions of the bank's staff for the specified period. The court's decision provided certainty for both the bank and its employees, ensuring that the agreement was fair and met the legal standards required for its approval.

CaseChat Overview and Summary

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Background to the litigation

Evidence Before The Court

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Legal Principle Established