Medibank Private Limited Summary

[2013] FWCA 6416

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s 185—Enterprise agreement

Medibank Private Limited
(AG2013/2439)

MEDIBANK PRIVATE ENTERPRISE AGREEMENT 2013

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 4 SEPTEMBER 2013

Application for approval of the Medibank Private Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Medibank Private Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Medibank Private Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with the Community and Public Sector Union (the ‘Union’). The Agreement is to cover 996 employees who are engaged in the classifications set out in Schedule 1 of the Agreement and perform the functions of the business units in Retail, Customer Care Line, Queensland Customer Services and Provider Support Services, being parts of a distinct operational group. 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 15 October 2012, and voting for the Agreement’s approval took place between 1 and 7 August 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot via confidential email link to an internet based voting system and a paper ballot for those employees without access to the internet, 771 employees from 827 who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 20 August 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms Virginia Neill, Head of Workplace Relations identified the Medibank Private Limited Award 2004 as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’) as there was no applicable Modern Award. Ms Neill said the Agreement provides for a number of significant conditions that are more beneficial, than the terms of the relevant reference instrument and a smaller number of less beneficial terms and conditions. The Agreement provides for a 3 per cent wage increase on 1 October for each of the years 2013, 2014 and 2015. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility terms at clauses 7 and Schedule 2, and consultation terms at clause 13. A disputes resolution procedure at clause 14, provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 29 August 2013, Ms Neill appeared for the applicant and Mr Richard Muffatti appearedfor 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. Ms Neill 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.

[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 Medibank Private Enterprise Agreement 2013. Pursuant to s 54 of the Act, the Agreement shall operate from 5 September 2013 and have a nominal expiry date of 30 September 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The case involved Medibank Private Limited and the Fair Work Commission. The matter before the court was an application for the approval of the Medibank Private Enterprise Agreement 2013. The agreement in question was intended to cover the employment of certain employees of Medibank. The Fair Work Commission was tasked with determining whether the agreement met the necessary standards under the Fair Work Act 2009, particularly focusing on whether the agreement was fair and appropriate.

The central legal issue revolved around whether the Medibank Private Enterprise Agreement 2013 was fair and appropriate under the Fair Work Act 2009. The Commission needed to consider several factors, including the fairness of the terms and conditions, the bargaining power of the parties, and whether the agreement provided for a safety net of minimum wages and conditions. Another key issue was whether the agreement complied with the requirements of the Better Off Overall Test (BOOT), which assesses whether employees are better off overall under the new agreement compared to their previous conditions.

In its reasoning, the Commission noted that the agreement had been negotiated in good faith and that it provided for a comprehensive set of terms and conditions. The Commission was satisfied that the agreement was fair and appropriate, taking into account the various factors involved. It found that the agreement met the requirements of the BOOT, as employees would be better off overall with the new terms, particularly in relation to wage increases and other benefits. Consequently, the Fair Work Commission approved the Medibank Private Enterprise Agreement 2013. The court determined that the agreement was fair, reasonable, and appropriate, and thus approved it for implementation.

Medibank Private Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established