Insurance Australia Group Services Pty Limited (IAGS)

[2024] FWCA 3667

[2024] FWCA 3667

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Insurance Australia Group Services Pty Limited (IAGS)

(AG2024/3208)

IAG ENTERPRISE AGREEMENT 2024

Banking finance and insurance industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 24 OCTOBER 2024

Application for approval of the IAG Enterprise Agreement 2024

[1]       An application has been made for approval of an enterprise agreement known as the IAG Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Insurance Australia Group Services Pty Limited (IAGS). The Agreement is a single enterprise agreement.

[2]       The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3]       Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4]       The Applicant seeks to amend several errors, defects or irregularities in the Agreement:

·  In clause 13.1(c), the word ‘and’ at the end of the subclause be amended to read ‘or’;

·  In clause 13.3(b), the words ‘12 Hours per shift; and’ be deleted and replaced with ‘12 Hours per shift; or’;

·  In clause 22.2, the applicable shift loading for 12 Hour Shift Employees performing a Public Holiday Shift be amended from ‘50%’ to ‘150%’

·  In clause 2.3 of Annexure C: Transitional Arrangements, amend the applicable shift loading for 12 Hour Shift Employees performing a Public Holiday Shift during the Transitional Period from ‘50%’ to ‘150%’.

·  After clause, 43.3 the following clauses be included:

'43.4 How does mid service leave interact with the NES

During the operation of this Agreement, it is possible that the Federal Government will make amendments to the long service leave National Employment Standard (LSL NES). If there is a variation to the LSL NES, IAG may review and vary the mid- service leave benefit under this clause to assess the interaction with the benefits provided for Employees under the LSL NES.

43.5 What happens if my employment with IAG ends?

If your employment with IAG ends, you will not receive payment for any untaken mid service leave.'

[5]       The Applicant submits that these errors fall within the meaning of ‘obvious error’ under s. 218A of the Act as these errors were introduced into the Final Version of the Agreement when the Applicant engaged a design contractor to apply design elements to the agreed Final Text for the proposed Agreement prior to distribution of the proposed Agreement prior to the ballot. The Final Version of the Agreement contained errors and omissions from the Final Text that had been agreed to by bargaining representatives. The Applicant has sought that the Commission exercise its discretion pursuant to s. 218A of the Act to amend an obvious error, defect or irregularity. I am satisfied that each of the above is an obvious error, defect or irregularity and I will amend the Agreement accordingly pursuant to s. 218A of the Act.

[6]       I note that Clause 44.6 is inconsistent with the National Employment Standards as it appears to provide a more stringent notice requirement than is permitted by s.107(2)(a) of the Act. Given the National Employment Standards precedence clause at clause 4 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[7]       The Finance Sector Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[8]       The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 October 2024. The nominal expiry date of the Agreement is 30 October 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

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Annexure A