HOSTPLUS Pty Ltd

[2013] FWCA 5165

[2013] FWCA 5165

FAIR WORK COMMISSION

DECISION

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

HOSTPLUS Pty Ltd
(AG2013/7531)

HOSTPLUS PTY LTD ENTERPRISE AGREEMENT 2013-2016

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 31 JULY 2013

Application for approval of the HOSTPLUS Pty Ltd Enterprise Agreement 2013-2016.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by HOSTPLUS 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 HOSTPLUS Pty Ltd Enterprise Agreement 2013-2016 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union of Australia (the ‘Union’). The Agreement is to cover 188 employees who are engaged in the management of superannuation and related financial services.

[2] The employees were last notified of their representational rights on 22 November 2012, and voting for the Agreement’s approval took place on 21 June 2013. The time limits under s 181(2) of the Act are thereby satisfied. In an electronic voting process, 87 of the 95 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 11 July 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr B Smethurst, Executive Manager, Human Resources identified the Banking, Finance and Insurance Award 2010 [MA000019] and the Insurance Industry Award 1998 [AP784988] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Smethurstsaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including the exclusion of most staff from an entitlement to higher duties pay, an increased span of hours for Service Centre Team Staff and the removal of annual leave loading, which is incorporated into loaded pay rates. However, the Agreement provides a number of terms and conditions that are more beneficial than, or in excess of those under the reference instruments, including higher rates of pay, 14 weeks paid parental leave, paid study and examination leave for studies related to the employee’s work, 8 weeks’ notice in the event of retrenchment and higher severance payments. Rates of pay are to be increased by 4% on 1 July 2013, 1 July 2014 and 1 July 2015. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 23 and 21 respectively, and a disputes resolution procedure at clause 17 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 23 July 2013, Mr B Smethurst,appeared for the applicant and Mr R Lowrey 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. Mr Smethurst 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 the employment classifications start with positions at Grade 5 and that this was a historical practice of the applicant. He could not say why the voting turnout for approval of the Agreement had been so low, but emphasised that a high proportion of those who voted, voted for the Agreement and that all employees had access to computers in order to cast their vote.

[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 HOSTPLUS Pty Ltd Enterprise Agreement 2013-2016.Pursuant to s 54 of the Act, the Agreement shall operate from 30 July 2013 and have a nominal expiry date of 30 July 2016.

DEPUTY PRESIDENT

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