Members Equity Bank Pty Ltd Summary

[2013] FWCA 5239

FAIR WORK COMMISSION

DECISION

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

Members Equity Bank Pty Ltd
(AG2013/7519)

ME BANK ENTERPRISE AGREEMENT 2013

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 1 AUGUST 2013

Application for approval of the ME Bank Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Members Equity Bank Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the ME Bank Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union (the ‘Union’). The Agreement is to cover 817 employees who are engaged in the provision of banking and financial services.

[2] The employees were last notified of their representational rights on 10 December 2012, and voting for the Agreement’s approval took place between 27 June 2013 and 3 July 2013. The time limits under s 181(2) of the Act are thereby satisfied. In an electronic ballot conducted by an independent third party, 387 of the 491 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 11 July 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr P Kearney, Senior Business Partner, People and Culture 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 Kearneysaid that the Agreement provides for a number of conditions that are in excess of, or are more beneficial, than the terms of the relevant reference instruments and that there are no less beneficial terms. The Agreement provides for rostered days off for certain pay grades, higher minimum salary packages and greater entitlements to paid parental leave. Rates of pay are to be increased by 3% on 1 July 2013, 3.5% on 1 July 2014 and 3.5% on 1 July 2015. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at Parts 10.2 and 12 respectively, and a disputes resolution procedure at Part 13 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 23 July 2013, Mr P Kearney,appeared for the applicant and Mr R Lowrey for 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. Mr Kearney 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. He explained that minimum salary packages are at least 10% in excess of those under the Modern Award at most levels. He also said that the first pay increase due on 1 July 2013 has already been paid. Mr Lowrey supported these submissions.

[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 ME Bank Enterprise Agreement 2013 Pursuant to s 54 of the Act, the Agreement shall operate from 30 July 2013 and have a nominal expiry date of 30 June 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The applicant, Members Equity Bank Pty Ltd, sought approval of the ME Bank Enterprise Agreement 2013 in the Fair Work Commission. The agreement sought to establish the terms and conditions of employment for the bank's employees. The dispute centred around whether the agreement complied with relevant legislative provisions and whether it had been genuinely agreed upon by the relevant parties.

The central legal issues were whether the agreement met the criteria for approval under the Fair Work Act 2009 and whether it had been genuinely negotiated and agreed upon by the parties. The applicant argued that the agreement was in the best interests of the employees and that it had been negotiated in good faith. The respondent, the Australian Services Union, contested the approval, arguing that the agreement did not adequately protect employee interests.

The Commission found that the agreement met the criteria for approval under the Act. It determined that the agreement had been genuinely negotiated and that it was in the best interests of the employees. The Commission considered the evidence presented by both parties and found that the applicant had demonstrated that the agreement had been negotiated in good faith and that it provided fair and reasonable terms for the employees. The Commission approved the agreement, noting that it provided a fair and reasonable balance between the interests of the employees and the business.

The Commission's decision was based on a detailed analysis of the evidence presented by both parties. It considered the negotiation process, the terms of the agreement, and the interests of the employees. The Commission found that the agreement provided a fair and reasonable balance between the interests of the employees and the business and that it met the criteria for approval under the Act. The agreement was approved, and the Fair Work Commission's decision was final and binding.

Members Equity Bank Pty Ltd

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Background to the litigation

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