Defence Health Limited

[2015] FWCA 4568

[2015] FWCA 4568

FAIR WORK COMMISSION

DECISION

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

Defence Health Limited
(AG2015/3549)

DEFENCE HEALTH LTD ENTERPRISE AGREEMENT 2015

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 8 JULY 2015

Application for approval of the Defence Health Ltd Enterprise Agreement 2015.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Defence Health 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 Defence Health Ltd Enterprise Agreement 2015 (the ‘Agreement’). The Agreement was negotiated with eight nominated Employee Bargaining Representatives (EBRs) and is to cover 87 clerical, junior and mid-level insurance employees who are engaged in the provision of private health insurance, based in Melbourne, 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 14 January 2015, and voting for the Agreement’s approval took place between 1 and 4 June 2015. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, 69 of the 75 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 16 June 2015, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms K Woolridge, Head of Human Resources, identified the Clerks Private Sector Award 2010 [MA000002], the Banking, Finance and Insurance Award 2010 [MA000019] and the Clerical and Administrative Employees (Victoria) Award 1999 [AP773032] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Woolridgesaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including the removal of annual leave loading and a number of allowances and the lack of provision for a job search entitlement. However, the Agreement provides for a range of terms and conditions that are more beneficial than those under the reference instruments including higher rates of pay, ordinary hours of an average of 37.5 hours per week for full time employees, more generous paid parental leave and enhanced redundancy entitlements. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 46 and 38 respectively, and a disputes resolution procedure at clause 43 provides for conciliation by the Commission.

[4] At a hearing of the application on 2 July 2015, Ms K Woolridge appeared for the applicant and Ms S Jacka and Mr J Jayasinha appeared in their respective capacities as EBRs. Ms Woolridge 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 rates of pay are significantly higher than those under the reference instruments and that they were subject to a guarantee that they would not fall below the rates of pay under the Award. Ms Jacka and Mr Jayasinha supported the submissions of Ms Wooldridge and confirmed that they supported the approval of the Agreement.

[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 Defence Health Ltd Enterprise Agreement 2015.Pursuant to s 54 of the Act, the Agreement shall operate from 9 July 2015 and have a nominal expiry date of 8 July 2019.

DEPUTY PRESIDENT

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