SalesForce Australia Pty Ltd

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[2016] FWCA 2386

DECISION

Fair Work Act 2009
s.185—Enterprise agreement
SalesForce Australia Pty Ltd T/A Salmat Contact
(AG2016/2594)
SALMAT CONTACT ENTERPRISE AGREEMENT (VIC)
Contract call centre industry
COMMISSIONER GREGORY MELBOURNE, 18 APRIL 2016

Application for approval of the Salmat Contact Enterprise Agreement (VIC).

[1]        An application has been made for approval of an enterprise agreement known as the

Salmat Contact Enterprise Agreement (VIC) (the Agreement). The application was made

pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SalesForce

Australia Pty Ltd T/A Salmat Contact. The Agreement is a single enterprise agreement.

[2]        The application and the Employer’s Statutory Declaration indicates that the proposed

Agreement is intended to cover 1011 employees, most of whom are engaged as permanent

employees in the contract call centre industry.

[3]        The application provides a detailed comparison between the entitlements under the

Agreement with those in the Contract Call Centre Industry Award 2010. I note that many

entitlements under the Agreement are equal to those in the modern award. Most notably:

 All wage rates

 Shift loadings

 Overtime

[4]        The applicant declared that there are several more beneficial entitlements in the

agreement, such as an increased entitlement to redundancy pay after 9 years of service and an

entitlement to 2 paid 15 minute breaks in a 7.5 hour shift. The applicant argued that these

increased entitlements compensate employees for the loss of annual leave loading in the

Agreement. In doing so, the applicant has provided financial analysis which attempts to

demonstrate that the additional paid tea breaks properly compensates for the loss of annual

leave loading.

[5]        Given the pay rates are equal to those in the modern award I sought further

information from the applicant with regards to how the effect of reducing annual leave

loading was explained to employees. I also sought further information as to why only 447

employees out of 1011 cast a valid vote.
[2016] FWCA 2386

[6]        The applicant provided the following information:

In relation to the paid tea breaks during employee briefings employees were advised

that they would retain their right to paid tea breaks under the new agreement when

compared with the old agreement. During bargaining meetings in response to a

reference to paid leave loading being applicable under the benchmark Award Salmat

discussed with bargaining representatives that under the current agreement paid tea

breaks are provided instead of paid leave loading and this position was noted and

accepted.

We understand your query in relation to the low voting numbers in Victoria however

feedback from TrueVote our independent service provider is that this is actually a

good turnout from their experience. In order to maximise voting participation Salmat

allowed employees 5 days to vote and 4 emails were distributed in the voting period

advising and reminding employees of their right to vote (two by TrueVote on 9th

March and 11th March) and two by Salmat. The long voting period together with the

electronic voting option was designed to…

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Details
Case
[2016] FWCA 2386
Decision Date

CaseChat Overview and Summary

SalesForce Australia Pty Ltd, trading as Salmat Contact, applied for the approval of the Salmat Contact Enterprise Agreement (VIC) under section 185 of the Fair Work Act 2009. The proposed agreement was intended to cover 1,011 employees in the contract call centre industry, most of whom were permanent employees. The application detailed a comparison between the proposed agreement and the Contract Call Centre Industry Award 2010, highlighting that many entitlements under the agreement were equal to those in the modern award. However, the proposed agreement included additional benefits such as increased redundancy pay and paid tea breaks, which were intended to compensate for the reduced annual leave loading. The applicant provided financial analysis to demonstrate that these additional benefits adequately compensated for the loss of annual leave loading.

The court had to decide whether the proposed agreement passed the "better off overall test" as required by section 186(2) of the Fair Work Act. The test required a global assessment of whether the employees would be better off overall under the proposed agreement compared to the modern award. The court noted that while the proposed agreement had some equal or reduced entitlements compared to the modern award, the additional benefits provided to employees were adequate to satisfy the better off overall test.

In considering the application, the court found that the proposed agreement included sufficient beneficial entitlements to ensure that employees would be better off overall. The court was satisfied that each of the requirements of sections 186, 187, and 188 of the Fair Work Act had been met. The agreement was approved and would operate from 25 April 2016, with a nominal expiry date of 25 April 2019.

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