Corangamite Financial Services Limited

[2014] FWCA 8824

[2014] FWCA 8824

FAIR WORK COMMISSION

DECISION

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

Corangamite Financial Services Limited
(AG2014/8259)

CORANGAMITE FINANCIAL SERVICES LIMITED ENTERPRISE AGREEMENT 2014

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

Application for approval of the Corangamite Financial Services Limited Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Corangamite Financial Services Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Corangamite Financial Services Limited Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with 8 nominated Employee Bargaining Representatives and is to cover 8 employees, other than those working at a managerial level, who are employed at the applicant’s community banking franchises in Winchelsea and Anglesea, Victoria. 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 19 March 2014, and voting for the Agreement’s approval took place on 6 November 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, all 7 of the employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 20 November 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr V Lamb, Company Director, 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’). Mr Lambsaid that the Agreement does provide for one term that is less beneficial than the reference instrument, in that the Agreement provides for slightly reduced entitlements to higher duties pay. However, the Agreement provides for a number of terms and conditions that are in excess of, or more beneficial than those under the reference instrument, including higher rates of pay, more generous severance entitlements and enhanced penalty rates for full time and part time employees who perform work on Saturdays. 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 25 provides for mediation and arbitration by independent third parties.

[4] At a hearing of the application on 5 December 2014, Ms A Bennallack appeared for the applicant. Ms Bennallack 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 said that the Agreement was similar to a number of enterprise agreements recently approved by the Commission. She explained that although the Agreement does not provide for guaranteed wage increases during the nominal term of the Agreement, historically Bendigo and Adelaide Bank Limited has communicated with its franchised banks when it undertakes an annual review of wages. Any increases are generally passed on to employees of the franchise banks. This is in addition to performance related increases which may be paid entirely at the discretion of the Company. The increase is subject to the conditions outlined in Clause 8.4 of the Agreement and will be applied if the Bank is in a financial position to do so.

[5] 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 Corangamite Financial Services Limited Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 12 December 2014 and have a nominal expiry date of 11 December 2018.

DEPUTY PRESIDENT

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