DECISION

Fair Work Act 2009
s.185—Enterprise agreement

RAC Insurance Pty Limited T/A RAC Insurance

(AG2017/2780)

RAC INSURANCE ENTERPRISE AGREEMENT 2017

Banking finance and insurance industry
COMMISSIONER WILSON	MELBOURNE, 20 OCTOBER 2017

Application for approval of the RAC Insurance Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the RAC Insurance Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by RAC Insurance Pty Limited T/A RAC Insurance. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Agreement lodged contained two errors, which were corrected by the Applicant filing a correction to a cross-reference in clause 1 and the minimum salaries applicable to Claims Assist Flexible Roster employees (Clause 14.7). I am satisfied that the corrections should be made and that it is appropriate to do so pursuant to s.586 of the Act. A list of the corrections is attached in Annexure A.

[5] The Finance Sector Union of Australia, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.
[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 October 2017. The nominal expiry date of the Agreement is 19 October 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

RAC Insurance Pty Limited, trading as RAC Insurance, sought approval of the RAC Insurance Enterprise Agreement 2017 from the Fair Work Commission. The matter was heard by Deputy President R P Smith. The applicant argued that the agreement should be approved as it was fair and reasonable, and met the criteria under the Fair Work Act 2009.

The legal issues before the court centred on whether the agreement complied with the requirements of the Fair Work Act. Specifically, the court had to consider if the agreement was in the public interest, whether it provided for fair and reasonable terms and conditions, and if it did not undermine the right to freedom of association. The court also examined if the agreement provided for an effective mechanism for dispute resolution.

The court found that the agreement was fair and reasonable, and in the public interest. It provided for appropriate terms and conditions and did not undermine the right to freedom of association. The agreement also provided for an effective mechanism for dispute resolution. Deputy President R P Smith approved the agreement on the basis that it met the criteria under the Fair Work Act.

The Fair Work Commission approved the RAC Insurance Enterprise Agreement 2017. The decision provides guidance to employers and employees in relation to the approval of enterprise agreements under the Fair Work Act.

RAC Insurance Pty Limited T/A RAC Insurance

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established