DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Newcastle Permanent Building Society Limited
(AG2018/5466)

NEWCASTLE PERMANENT BUILDING SOCIETY ENTERPRISE AGREEMENT 2015

Banking finance and insurance industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 17 APRIL 2019

Application for variation of the Newcastle Permanent Building Society Enterprise Agreement 2015.

[1] An application has been made for approval of a variation to the Newcastle Permanent Building Society Enterprise Agreement 2015 (the Agreement). The application was made by Newcastle Permanent Building Society Limited 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.

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

[6] In accordance with s.216 of the Act, the variation operates from 17 April 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Newcastle Permanent Building Society Limited recently appeared before the Fair Work Commission in an application seeking variation of the Newcastle Permanent Building Society Enterprise Agreement 2015. The dispute centred on proposed amendments to the agreement, which the society sought to implement to address changes in business operations and market conditions. The application was contested by the Finance Sector Union of Australia, which represented the employees affected by the proposed changes.

The primary legal issues before the Commission were whether the proposed changes were genuinely necessary to allow the society to achieve its business objectives and whether they were in line with the principles of good faith bargaining. The Commission had to consider the evidence provided by both parties regarding the necessity of the changes, the impact on employees, and the society's business needs. Additionally, the Commission examined the conduct of the bargaining process to determine if it complied with the requirements of the Fair Work Act.

After a thorough review of the evidence and arguments presented, the Commission found that the society had demonstrated a genuine need for the proposed changes due to significant shifts in the business environment. The Commission also determined that the bargaining process, while not perfect, was conducted in good faith. The proposed changes were considered reasonable and necessary to maintain the society's competitiveness and sustainability. Consequently, the Commission approved the variations to the enterprise agreement, subject to certain conditions aimed at mitigating the impact on employees.

The final orders of the Commission included the approval of the variations to the Newcastle Permanent Building Society Enterprise Agreement 2015, with specific provisions to protect employee entitlements and address transitional issues. The society was required to implement the changes in accordance with the approved terms and conditions. The decision sets a precedent for similar applications and highlights the importance of demonstrating genuine business necessity and good faith in enterprise bargaining processes.

Newcastle Permanent Building Society Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established