Paynesville & District Financial Services Limited

[2014] FWCA 5175

[2014] FWCA 5175

FAIR WORK COMMISSION

DECISION

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

Paynesville & District Financial Services Limited
(AG2014/1821)

PAYNESVILLE & DISTRICT FINANCIAL SERVICES LIMITED ENTERPRISE AGREEMENT 2014

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 1 AUGUST 2014

Application for approval of the Paynesville & District Financial Services Limited Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Paynesville & 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 Paynesville & District Financial Services Limited Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with one non-Union Employee Bargaining Representative and is to cover 5 employees, other than managerial employees, who are engaged in clerical roles at the applicant’s community banking franchise in Paynesville, 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 19 May 2014, and voting for the Agreement’s approval took place on 4 July 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, all 5 of the employees agreed to approve the Agreement. The application for approval of the Agreement was lodged on 17 July 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms M Beazer, Author and member of the applicant’s Board, identified the Banking, Finance and Insurance Award 2010 [MA000019] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Beazersaid that the Agreement does contain one term that is less beneficial than that under the Award, in that employees will be eligible for a higher duties allowance after performing duties at a higher position for five, rather than four days. However, the Agreement provides for a number of terms and conditions that are more beneficial than, or in excess of the Award, including higher base rates of pay, higher junior rates of pay, enhanced bereavement leave and more generous severance entitlements. 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 an independent party. I am satisfied that the Agreement passes the BOOT.

[4] At a hearing of the application on 29 July 2014, Mr D Villani appeared for the applicant. Mr Villani 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 the Agreement was similar to a number of other enterprise agreements recently approved by the Commission which covered Bendigo and Adelaide Bank community banking franchises, except that rates of pay are to be increased by 2.5% each year throughout the nominal life of the Agreement, on the anniversary of the commencement of the Agreement rather than performance-based increases. He had calculated that Level 3 employees would be better off by at least $11.37 per fortnight and Level 4 employees would be better off by at least $18.30 per fortnight.

[5] Having heard the applicant’s 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 Paynesville & District Financial Services Limited Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 5 August 2014 and have a nominal expiry date of 4 August 2018.

DEPUTY PRESIDENT

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