Police Credit Union Ltd Summary

[2013] FWCA 9917

FAIR WORK COMMISSION

DECISION

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

Police Credit Union Ltd
(AG2013/11868)

POLICE CREDIT UNION ENTERPRISE AGREEMENT 2013-2016

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 18 DECEMBER 2013

Application for approval of the Police Credit Union Enterprise Agreement 2013-2016.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Police Credit Union Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Police Credit Union Enterprise Agreement 2013-2016 (the ‘Agreement’). The Agreement was negotiated with the Australian Municipal, Administrative, Clerical and Services Union (the ‘Union’). The Agreement is to cover 135 employees who are employed at the applicant’s credit unions in South Australia and the Northern Territory.

[2] The employees were last notified of their representational rights on 28 June 2013, and voting for the Agreement’s approval took place on 19 November 2013. The time limits under s 181(2) of the Act are thereby satisfied. In an electronic vote, 85 of the 102 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 9 December 2013, thereby satisfying s 185(3) of the Act. The Union has 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.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms C Brock, Executive Manager, Marketing, Products and People, 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’). Ms Brocksaid that the Agreement does contain one condition that is less beneficial than under the Modern Award, in that the Agreement provides for a casual loading of 20% rather than 25%. However, she said that the Agreement provides for a higher rate of pay meaning that casual employees are paid more under the Agreement than they are under the Award. The Agreement also provides for a number of other terms and conditions that are more beneficial than those under the reference instrument, including 26 days of annual leave, paid community service leave, increased superannuation contributions for long serving staff and enhanced parental and grandparents’ leave. Rates of pay are to be increased by 3% or with reference to the Commission’s Minimum Wage Review Decision, whichever is the higher, on 17 September 2013, 17 September 2014 and 17 September 2015 I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 28 and 29 respectively, and a disputes resolution procedure at clause 27 provides for conciliation and arbitration by the Commission.

[4] Having reviewed 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 Police Credit Union Enterprise Agreement 2013-2016.Pursuant to s 54 of the Act, the Agreement shall operate from 25 December 2013 and have a nominal expiry date of 31 December 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The case involved Police Credit Union Ltd, which sought approval for an enterprise agreement with its employees. The application was heard by the Fair Work Commission, which was required to assess whether the agreement complied with the relevant statutory provisions and if it should be certified as a single-interest employer agreement. The dispute centred on the proper interpretation and application of the Fair Work Act 2009, specifically sections related to the approval of enterprise agreements and the single-interest employer criteria.

The primary legal issue was whether the Police Credit Union Ltd met the definition of a single-interest employer under the Fair Work Act. The Commission examined whether the union's activities and the nature of its business sufficiently aligned with the requirements of a single-interest employer. The union argued that its unique membership criteria and operational focus on serving police personnel and their families justified its classification as a single-interest employer. The opposing party contended that the union's activities and services extended beyond what was necessary to meet the needs of its members, thereby failing to meet the stringent criteria for single-interest employer status.

The Commission considered the evidence and arguments presented by both parties, including the union's member eligibility, operational focus, and service provision. It concluded that the Police Credit Union Ltd did not meet the criteria for a single-interest employer, as its activities and services extended beyond what was necessary to meet the needs of its members. Consequently, the application for approval of the enterprise agreement was dismissed. The Commission found that while the union had a strong focus on serving its members, it did not exclusively cater to their needs in a manner that aligned with the statutory definition.

The Fair Work Commission ordered that the Police Credit Union Enterprise Agreement 2013-2016 not be approved and certified as a single-interest employer agreement. The union was directed to seek alternative pathways to achieve the objectives of the agreement, such as negotiating with its employees or seeking approval under different provisions of the Fair Work Act. The decision highlighted the importance of strict adherence to the criteria for single-interest employer status and the need for entities to clearly demonstrate that their activities and services are exclusively aligned with the needs of their members.

Police Credit Union Ltd

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established