Maldon & District Financial Services Limited

[2013] FWCA 7054

[2013] FWCA 7054

FAIR WORK COMMISSION

DECISION

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

Maldon & District Financial Services Limited
(AG2013/2650)

MALDON & DISTRICT FINANCIAL SERVICES LIMITED COMMUNITY BANK ENTERPRISE AGREEMENT 2013

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 27 SEPTEMBER 2013

Application for approval of the Maldon & District Financial Services Limited Community Bank Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Maldon & District Financial Services Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Maldon & District Financial Services Limited Community Bank Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with an Employee Bargaining Representative, Ms N Mulcahy. The Agreement is to cover 9 employees who are employed in clerical roles at the applicant’s community banking franchise, commonly known as Bendigo Bank, in Maldon, Victoria. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 16 November 2012, and voting for the Agreement’s approval took place between 12 and 16 August 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, all 9 of the employees agreed to approve the Agreement. The application for approval of the Agreement was lodged on 30 August 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr R Snep, Chairman, 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 Snepsaid that the Agreement does provide for a term that is less beneficial than under the Modern Award; being payment at the ordinary base rate where an employee works for five consecutive days in a higher duties position, rather than four. However, the Agreement provides for a number of terms and conditions that are more beneficial than, or in excess of those under the Modern Award, including higer rates of pay, proportionately higher junior rates of pay, a meal allowance where an employee works for more than ten hours and finishes after 6:30pm and more generous severance pay entitlements. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 24 and 23 respectively, and a disputes resolution procedure at clause 25 provides for mediation and arbitration by independent third parties.

[4] At a hearing of the application on 13 September 2013, Ms A Bennallack of Bendigo and Adelaide Bank Limited,appeared with Ms K Smith for the applicant and Ms N Mulcahy appeared in her capacity as Employee Bargaining Representative. Ms Bennallack 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. She also said that although the Agreement does not provide for guaranteed wage increases during the life of the Agreement historically Bendigo and Adelaide Bank communicates with its franchised Community Banks when it increases salaries for its own employees. While Bendigo and Adelaide Bank could not force the board of the applicant to pass these increases on, she noted that the applicant had passed on such wage increases in 2009, 2010 and 2012 and had paid employee bonuses since 2008. Ms Mulcahy supported the submissions of Ms Bennallack and said that the employees were happy with 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 Maldon & District Financial Services Limited Community Bank Enterprise Agreement 2013.Pursuant to s 54 of the Act, the Agreement shall operate from 20 September 2013 and have a nominal expiry date of 19 September 2017.

DEPUTY PRESIDENT

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