RAC Motoring Pty Ltd

[2014] FWCA 4765

[2014] FWCA 4765

FAIR WORK COMMISSION

DECISION

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

RAC Motoring Pty Ltd
(AG2014/1656)

RAC CONTACT CENTRE SERVICE & LOGISTICS ENTERPRISE AGREEMENT 2014

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 18 JULY 2014

Application for approval of the RAC Contact Centre Service & Logistics Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by RAC Motoring 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 RAC Contact Centre Service & Logistics Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with the Australian Municipal, Administrative, Clerical and Services Union (the ‘Union’) and one non-Union Employee Bargaining Representatives. The Agreement is to cover 103 employees who are engaged in call centre and logistics work, but does not cover other employees of the applicant performing mechanical and maintenance work. 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 9 December 2013, and voting for the Agreement’s approval took place between 9 and 20 June 2014. The time limits under s 181(2) of the Act are thereby satisfied. In an electronic ballot, 66 of the 74 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 2 July 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms S Hayter, HR Business Partner - Mentoring, identified the Clerks - Private Sector Award 2010 [MA000002] and the Clerks’ (R.A.C. Control Room Officers) Award of 1988 [AN160076] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Haytersaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including reduced penalty rates for part-time employees who work in excess of their regular ordinary hours, the removal of a number of non-applicable allowances and a longer maximum shift length for shiftwork employees. However, the Agreement provides for a number of terms and conditions that are in excess of, or more beneficial than those under the reference instruments, including higher rates of pay, more generous penalty rates for nightshift work, enhanced penalty rates for work performed by shiftworkers on Sundays and public holidays and more generous severance entitlements in circumstances of redundancy. Rates of pay are to be increased by 3.25% or in accordance with CPI, whichever is the greater on 1 July 2014, by 3% or in accordance with CPI, whichever is the greater on 1 July 2015 and by 3% or in accordance with CPI, whichever is the greater, on 1 July 2016. The Agreement sets out the relevant CPI as the Perth All Groups Consumer Price Index for Perth - March quarter percentage change from the previous year. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 25 and 22 respectively, and a disputes resolution procedure at clause 24 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 16 July 2014, Ms B Pole, Solicitor,appeared with Ms S Hayter for the applicant and Ms S Amanyah and Ms A Nyariel 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. Ms Pole 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. She submitted that the increases to the base rates of pay were 11-24% higher than those under the reference instruments and that when calculations were performed having taken into account other entitlements, the employees were between 24 and 38% better off. Ms Amanyah and Ms Nyariel supported the submissions of the applicant.

[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 RAC Contact Service & Logistics Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 23 July 2014 and have a nominal expiry date of 23 July 2017.

DEPUTY PRESIDENT

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