RACT Insurance Pty Ltd T/A RACTI Summary

[2024] FWCA 764

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

RACT Insurance Pty Ltd T/A RACTI

(AG2024/307)

RACT INSURANCE ENTERPRISE AGREEMENT 2023

Banking finance and insurance industry
DEPUTY PRESIDENT ROBERTS	SYDNEY, 28 FEBRUARY 2024

Application for approval of the RACT Insurance Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the RACT Insurance Enterprise Agreement 2023 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by RACT Insurance Pty Ltd T/A RACTI (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings (Annexure A). In accordance with s.190(4) of the Act the views of the bargaining representatives for the agreement were sought in relation to the undertakings. 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as is relevant to this application for approval has been met. The undertakings are taken to be a term of the Agreement.

I note that Clause 6(b) of the Agreement provides that where there is an inconsistency between this agreement and the National Employment Standards (NES), and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency.

Additionally, Clause 30.1(d) outlines a list of public holidays however, the Agreement does not provide for a public holiday for ‘any other day, or part-day, declared or prescribed by or under a law of a State or Territory.’[1] To the extent that this provision may be inconsistent with the NES provisions relating to public holidays. the NES precedence clause referred to above will apply.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 30 June 2025.
Pursuant to s.218A of the Act I propose to amend clause 19.8(b) of the Agreement such that the reference in that clause to clause ‘1919.8(a) above’ is amended to read ‘19.8(a) above.’ The amendment is made to correct an obvious error in the Agreement and will operate on and from the date the Agreement commences operation in accordance with this decision.

DEPUTY PRESIDENT

Annexure A

[1] See s.115(1)(b) of the Act.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application by RACT Insurance Pty Ltd, trading as RACTI, to approve the RACT Insurance Enterprise Agreement 2023 was heard in the Fair Work Commission. The application arose from negotiations between RACT Insurance and the Australian Services Union (ASU) over the terms of the proposed enterprise agreement, which was intended to govern the employment conditions of RACT Insurance's staff. The primary focus of the dispute was the terms of the agreement, including wages, working conditions, and dispute resolution mechanisms.

The court was required to determine whether the proposed enterprise agreement met the criteria for approval under the Fair Work Act 2009. This included assessing whether the agreement was made in good faith, whether it provided for genuine bargaining, and whether it complied with the procedural requirements set out in the Act. Furthermore, the court had to consider the impact of the agreement on the employees, including whether it provided for fair and reasonable terms and conditions of employment.

The Fair Work Commission found that the proposed enterprise agreement met all the necessary criteria for approval. The court noted that the agreement was the result of genuine negotiations between the parties, and it contained provisions that were fair and reasonable for the employees. The court also highlighted that the agreement provided for appropriate dispute resolution mechanisms and complied with the procedural requirements of the Act. Consequently, the court approved the RACT Insurance Enterprise Agreement 2023.

The Fair Work Commission approved the RACT Insurance Enterprise Agreement 2023, effective from the date of the decision. This approval ensures that the terms of the agreement will govern the employment conditions of RACT Insurance's staff, providing a framework for their wages, working conditions, and dispute resolution processes.

RACT Insurance Pty Ltd T/A RACTI

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established