Defence Bank Limited

[2014] FWCA 5172

[2014] FWCA 5172

FAIR WORK COMMISSION

DECISION

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

Defence Bank Limited
(AG2014/6847)

DEFENCE BANK ENTERPRISE AGREEMENT 2014

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 1 AUGUST 2014

Application for approval of the Defence Bank Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Defence Bank Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Defence Bank Enterprise Agreement 2014 (the ‘Agreement’). The Agreement is to cover 189 employees, other than managerial or executive employees who are engaged in the provision of consumer banking services across Australia. 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 30 May 2014, and voting for the Agreement’s approval took place between 7 and 9 July 2014. The time limits under s 181(2) of the Act are thereby satisfied. In an electronic ballot, 128 of the 139 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 16 July 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms K Bugeja, Executive Manager - People and Culture, identified the Banking, Finance and Insurance Award 2010 [MA000019] and the Credit Union Award 1998 [AP772291] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Bugejasaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including less generous penalty rates for work performed on public holidays, a longer span of ordinary hours on Saturdays and for employees in the Contact Centre on weekdays and reduced overtime entitlements for part time employees. However, the Agreement provides for a number of terms and conditions that more beneficial than, or in excess of those under the reference instruments, including higher rates of pay, two extra days of leave, more generous rotating day shift and night shift allowances and enhanced compassionate and parental leave entitlements. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 33 and 32 respectively, and a disputes resolution procedure at clause 34 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 28 July 2014, Mr C Egan, Solicitor,appeared with Ms K Bugeja for the applicant. Mr Egan 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. Ms Bugeja explained that the rates of pay are on average 21% higher than those under the reference instruments and are to be increased by 3.5% on commencement, 2% on 1 July 2015 and 1 July 2016. All employees are also eligible to receive additional bonus increases, dependent on the applicant achieving a Return on Assets of at least 0.6%.

[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 Defence Bank Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 4 August 2014 and have a nominal expiry date of 1 June 2017.

DEPUTY PRESIDENT

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