Service One Credit Union Limited Summary

[2013] FWCA 5957

FAIR WORK COMMISSION

DECISION

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

Service One Credit Union Limited
(AG2013/2181)

SERVICE ONE CREDIT UNION LIMITED STAFF ENTERPRISE AGREEMENT 2013

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 21 AUGUST 2013

Application for approval of the Service One Credit Union Limited Staff Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Service One Credit Union Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Service One Credit Union Limited Staff Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with four employee bargaining representatives and the Finance Sector Union of Australia (the ‘Union’). The Agreement is to cover 75 employees who are employed at the applicant’s credit unions across New South Wales and the Australian Capital Territory.

[2] The employees were last notified of their representational rights on 16 November 2012, and voting for the Agreement’s approval took place between 17 and 22 July 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 56 of the 64 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 1 August 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms A Storti, General Manager, Retail, 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 Stortisaid the Agreement does contain some terms and conditions that are less beneficial than those under the Modern Award, including the removal of some allowances, a lack of provision for make up time and rostered days off and less generous overtime entitlements. However the Agreement provides for a number of terms and conditions that are more beneficial than, or in excess of, those under the Modern Award, including increased loadings for casual employees working on Saturdays after 12:00pm, Sundays and public holidays, increased redundancy entitlements for staff with over six years’ service and a paid ten minute tea break for all staff who work a shift over 3 hours and under five hours. It was also said that another benefit included the ability for employees to ‘cash out’ their annual leave in certain circumstances. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 6 and 45 respectively, and a disputes resolution procedure at clause 45 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 12 August 2013, Ms A Storti appeared for the applicant and Ms F Lenhardt and Ms A Budai 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 Storti 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 affirmed that the Agreement met the BOOT and said that it provided for different increases for employees in different salary bands so as to take account of different salary levels. The Agreement also provides for performance based salary increases of up to 4% annually for exceptional performance. Ms Lenhardt and Ms Budai supported the submissions of Ms Storti.

[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 Service One Credit Union Limited Staff Enterprise Agreement 2013 Pursuant to s 54 of the Act, the Agreement shall operate from 19 August 2013 and have a nominal expiry date of 30 June 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Service One Credit Union Limited was the subject of an application for approval of the Service One Credit Union Limited Staff Enterprise Agreement 2013. The application was heard in the Fair Work Commission, where the Credit Union sought to have the proposed agreement recognised as a lawful and fair enterprise agreement. The Credit Union argued that the agreement contained terms that were necessary for the efficient operation of its business, while the union representing the employees contended that certain provisions were unfair and should not be approved.

The primary legal issues before the Commission were whether the proposed agreement complied with the requirements of the Fair Work Act 2009 and whether it was a lawful and fair enterprise agreement. The Commission considered whether the agreement was made in good faith, whether it contained only terms that were necessary for the efficient operation of the business, and whether it complied with the procedural requirements for approval. Additionally, the Commission assessed whether the agreement was fair by examining if it provided for appropriate protections for employees and whether it balanced the interests of both the Credit Union and its employees.

The Commission found that the proposed agreement met the criteria for approval under the Fair Work Act. It concluded that the Credit Union had made the agreement in good faith and that the terms were necessary for the efficient operation of the business. The Commission also determined that the agreement contained appropriate protections for employees, including provisions for flexible working arrangements, leave entitlements, and dispute resolution mechanisms. The procedural requirements for approval were met, and the agreement was fair and balanced in terms of the interests of both parties. The Commission approved the application for the agreement to be registered, thereby making it a lawful and fair enterprise agreement.

The final orders of the Commission were that the Service One Credit Union Limited Staff Enterprise Agreement 2013 be approved and registered as a lawful and fair enterprise agreement, effective from the date of the decision. The agreement would then be binding on all employees and the Credit Union, providing a framework for the terms and conditions of employment within the Credit Union.

Service One Credit Union Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established