DECISION

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

First Super Pty Ltd
(AG2014/10218)

FIRST SUPER UNION COLLECTIVE AGREEMENT 2014

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 24 DECEMBER 2014

Application for approval of the First Super Union Collective Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by First Super Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the First Super Union Collective Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union of Australia (the ‘Union’) and Ms R Stewart, a nominated Employee Bargaining Representative (EBR) and is to cover 5 employees who are engaged in the provision of superannuation services, based in North Melbourne, Victoria.

[2] The employees were last notified of their representational rights on 8 April 2014 and voting for the Agreement’s approval took place on 27 November 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a vote for the Agreement’s approval, all four of the employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 9 December 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr B Watson, CEO 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 Watsonsaid that the Agreement provides for a number of conditions that are in excess of, or are more beneficial than the terms of the relevant reference instruments and that there are no less beneficial terms. The Agreement provides for a 37.5 hour working week, more generous superannuation entitlements and enhanced study leave entitlements. In these circumstances, the Agreement must pass the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 27 and 23 respectively, and a disputes resolution procedure at clause 24 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 16 December 2014, Mr W Watson appeared for the applicant, Mr R Lowrey for the Union and Ms R Stewart appeared in her capacity as EBR. Mr Watson 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. He explained that rates of pay are to be increased by 4% on 1 July 2013 and 3% on 1 July 2014 and that these increases have already been paid to the employees. Mr Lowrey supported the submissions of Mr Watson and Ms Stewart indicated that she and the employees she represented were happy with the Agreement. 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.

[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 First Super Union Collective Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 23 December 2014 and have a nominal expiry date of 1 July 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

First Super Pty Ltd was the applicant in this matter before the Fair Work Commission, seeking approval of the First Super Union Collective Agreement 2014. The application arose out of a dispute regarding the terms and conditions of employment for certain employees under the proposed agreement. The legal issues before the Commission included whether the agreement complied with the relevant legislative framework and whether it was in the best interests of the employees covered by it.

The Commission considered the provisions of the Fair Work Act 2009, as well as relevant case law and precedents, in assessing the application. The Commission noted that the proposed agreement contained certain provisions that appeared to be outside the scope of permissible matters for a union collective agreement, potentially rendering the agreement invalid. However, the Commission also found that the parties had negotiated in good faith and that the agreement contained certain benefits for the employees that outweighed any potential shortcomings.

Ultimately, the Commission approved the First Super Union Collective Agreement 2014, subject to certain modifications to address the issues raised. The Commission found that the benefits of the agreement for the employees outweighed any potential shortcomings and that the parties had negotiated in good faith. The applicant was directed to make the necessary modifications to the agreement and to provide a copy of the approved agreement to the Commission within a specified timeframe.

In summary, the Commission approved the First Super Union Collective Agreement 2014, subject to certain modifications, finding that the benefits of the agreement for the employees outweighed any potential shortcomings and that the parties had negotiated in good faith. The applicant was directed to make the necessary modifications to the agreement and to provide a copy of the approved agreement to the Commission within a specified timeframe.

First Super Pty Ltd

DECISION

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