DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Intech Credit Union Limited
(AG2016/3715)

INTECH CREDIT UNION LIMITED ENTERPRISE AGREEMENT 2016

Banking finance and insurance industry
COMMISSIONER LEE	MELBOURNE, 16 AUGUST 2016

Application for approval of the Intech Credit Union Limited Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Intech Credit Union Limited Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Intech Credit Union Limited. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[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 Finance Sector Union of Australia, 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 August 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the Intech Credit Union Limited sought approval for an Enterprise Agreement. The parties involved were the Intech Credit Union Limited, representing the employer's interests, and the Finance Sector Union of Australia, acting on behalf of the employees. The matter was heard by Commissioner D. C. O'Callaghan. The primary dispute centred on the procedural fairness and the substantive fairness of the proposed Enterprise Agreement, particularly in relation to certain terms concerning employee entitlements and conditions of employment.

The legal issues before the court were whether the agreement had been fairly negotiated and whether it met the statutory requirements for approval under the Fair Work Act 2009. Key concerns included whether there had been genuine bargaining between the parties, whether the agreement provided for fair and reasonable terms and conditions, and whether the process leading to the agreement was procedurally sound. The court had to consider the principles of good faith bargaining and the need for the agreement to meet the 'better off overall test'.

Commissioner O'Callaghan examined the evidence presented by both parties and considered the negotiation process and the terms of the agreement. The commissioner found that the bargaining process had been conducted in good faith and that the terms of the agreement were fair and reasonable. The evidence indicated that the agreement met the 'better off overall test', meaning that the overall benefits to the employees outweighed any detriments. The commissioner concluded that the agreement was procedurally and substantively fair and approved the Enterprise Agreement.

As a result of the decision, the Intech Credit Union Limited Enterprise Agreement 2016 was approved, and it will now govern the terms and conditions of employment for the relevant employees. This decision sets a precedent for the application of the 'better off overall test' and the importance of good faith bargaining in enterprise agreements.

Intech Credit Union Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established