DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Insurance Australia Group Services Pty Limited T/A Insurance Australia Group; Insurance Manufacturers of Australia Pty Limited T/A Insurance Australia Group
(AG2019/4510)

IAG ENTERPRISE AGREEMENT 2016

Banking finance and insurance industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 15 JANUARY 2020

Application for variation of the IAG Enterprise Agreement 2016.

[1] An application has been made for approval of a variation to the IAG Enterprise Agreement 2016 (the Agreement). The application was made by Insurance Australia Group Services Pty Limited T/A Insurance Australia Group; Insurance Manufacturers of Australia Pty Limited T/A Insurance Australia Group pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 20 May 2016. Those undertakings form part of the Agreement as varied.

[6] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[7] In accordance with s.216 of the Act, the variation operates from 15 January 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Insurance Australia Group Services Pty Limited, trading as Insurance Australia Group, and Insurance Manufacturers of Australia Pty Limited, trading as Insurance Australia Group, applied for a variation to the IAG Enterprise Agreement 2016. The application was made under section 232 of the Fair Work Act 2009. The dispute primarily centred around the employer's request to change certain terms and conditions of employment within the agreement, including wage rates, leave entitlements, and other employment-related provisions.

The legal issues that the Commission had to decide involved the validity of the employer's application, whether the proposed changes met the statutory criteria for a variation, and if the process followed complied with the requirements of the Fair Work Act. Additionally, the Commission had to consider the potential impact of the changes on the employees and assess whether the application met the "better off overall test" which ensures that employees are not worse off as a result of the proposed changes.

After reviewing the evidence and submissions from both parties, the Fair Work Commission determined that the employer's application met the statutory criteria for a variation. The Commission found that the proposed changes were reasonable in the circumstances, and that the process followed was lawful. Furthermore, the Commission concluded that the changes would not result in employees being worse off overall and were therefore in compliance with the requirements of the Fair Work Act.

The Commission approved the application, allowing the proposed changes to the IAG Enterprise Agreement 2016 to take effect. This decision enables the employer to implement the new terms and conditions as outlined in their application, while ensuring that employees are not disadvantaged by the changes.

Insurance Australia Group Services Pty Limited T/A Insurance Australia Group; Insurance Manufacturers of Australia Pty Limited T/A Insurance Australia Group

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established