Encompass Credit Union Limited

[2014] FWCA 5471

[2014] FWCA 5471

FAIR WORK COMMISSION

DECISION

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

Encompass Credit Union Limited
(AG2014/1867)

ENCOMPASS CREDIT UNION LIMITED ENTERPRISE AGREEMENT 2014-2017

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 15 AUGUST 2014

Application for approval of the Encompass Credit Union Limited Enterprise Agreement 2014-2017.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Encompass Credit Union Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Encompass Credit Union Limited Enterprise Agreement 2014-2017 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union of Australia (the ‘Union’) and is to cover 43 employees, except for those who earn more than $105,000, who are employed at the applicant’s credit union branches in Hamilton and in metropolitan Sydney, New South Wales. 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 17 January 2014, and voting for the Agreement’s approval took place between 9 and 16 July 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 34 of the 37 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 7 August 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr B Bennett, Chief Executive Officer, 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’). Mr Bennett said that the Agreement does contain some terms and conditions that are less beneficial than those under the reference instruments, including less generous overtime entitlements. However, the Agreement provides for a number of terms and conditions that are more beneficial than, or in excess of the reference instruments, including higher rates of pay, shorter weekly hours and enhanced severance entitlements. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 10 and 12 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 7 August 2014, Ms L Edmonds-Colley appeared for the applicant and Mr D Peddie for the Union. The Union had filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and 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. Ms Edmonds-Colley 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 rates of pay are to be increased by 2.5% or in accordance with the annual Consumer Price Index in the March quarter, whichever is the greater, on 1 July 2014, 1 July 2015 and 1 July 2016, though this entitlement can be reduced for poor performance or disciplinary issues. The Agreement also provides for additional payments where the applicant achieves a return on assets of 0.5% or higher. Mr Peddie supported the submissions of Ms Edmonds-Colley.

[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 Encompass Credit Union Limited Enterprise Agreement 2014-2017.Pursuant to s 54 of the Act, the Agreement shall operate from 14 August 2014 and have a nominal expiry date of 30 June 2017.

DEPUTY PRESIDENT

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