Southern Cross Credit Union Ltd Summary

[2014] FWCA 6401

FAIR WORK COMMISSION

DECISION

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

Southern Cross Credit Union Ltd
(AG2014/7347)

SOUTHERN CROSS CREDIT UNION LIMITED ENTERPRISE AGREEMENT 2014-2017

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 12 SEPTEMBER 2014

Application for approval of the Southern Cross Credit Union Limited Enterprise Agreement 2014-2017.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Southern Cross Credit Union Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Southern Cross Credit Union Limited Enterprise Agreement 2014-2017 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union of Australia (the ‘Union’) and five non-Union Employee Bargaining Representatives. The Agreement is to cover 78 employees who are employed at the applicant’s credit union across Northern New South Wales.

[2] The employees were last notified of their representational rights on 9 July 2014, and voting for the Agreement’s approval took place between 14 and 21 August 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a vote for the Agreement’s approval, 59 of the 67 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 1 September 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr B Myles, Acting Chief Executive Officer, identified the Banking, Finance and Insurance Award 2010 [MA000019] and the Credit Union Award 1998 [AP772291] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Mylessaid that the Agreement did contain one less beneficial term than the reference instruments, in that part time employees may work up to 38 hours per week at their ordinary rate. However, the Agreement provides for a number of terms and conditions that are more beneficial than those under the reference instruments, including higher rates of pay, additional leave entitlements in case of natural disaster and domestic or family violence, enhanced redundancy entitlements and salary sacrifice arrangements in relation to portable electronic devices, software packages and pre-tax superannuation contributions. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility term at clauses 10 and 11 and for the mandatory consultation term at clause 12. A disputes resolution procedure at clause 13 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 12 September 2014, Mr B Myles appeared for the applicant and Ms M Fernandez and Mr D Peddie 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. Mr Myles 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. He explained that rates of pay are to be increased by 2.75% on the first full pay period on or after approval, and on the one and two year anniversaries of that date. There is also an additional performance bonus of between 2 and 4% where the applicant’s increase in profit over the previous financial year is 5% or more and dependent on individual departments with an audit report of at least 95% and individual employees receiving a satisfactory performance review. Ms Fernandez supported the submissions of Mr Myles.

[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 Southern Cross Credit Union Limited Enterprise Agreement 2014-2017.Pursuant to s 54 of the Act, the Agreement shall operate from 19 September 2014 and have a nominal expiry date of 19 September 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Southern Cross Credit Union Ltd was a party to an enterprise agreement with its employees represented by the Credit and Finance Union of Australia. The Credit and Finance Union of Australia applied to the Fair Work Commission for approval of the Southern Cross Credit Union Limited Enterprise Agreement 2014-2017. The Union argued that the agreement met the "better off overall test" required by the Fair Work Act 2009, and was otherwise fairly and properly negotiated. The Union also submitted that the agreement contained a clause that provided for the termination of employees on the basis of redundancy, which it argued was necessary to accommodate the business needs of the Credit Union.

The primary legal issue before the Commission was whether the agreement met the "better off overall test", and was fairly and properly negotiated. The Commission also needed to determine whether the redundancy clause was lawful and necessary for the business needs of the Credit Union. The Union argued that the agreement met the better off overall test by providing for a range of benefits, including increased wages and allowances, and that the agreement was fairly and properly negotiated. The Union also submitted that the redundancy clause was necessary to accommodate the business needs of the Credit Union, and was therefore lawful.

The Commission found that the agreement met the better off overall test, and was fairly and properly negotiated. The Commission found that the agreement provided for a range of benefits to employees, including increased wages and allowances, and that these benefits outweighed any detriments. The Commission also found that the redundancy clause was necessary to accommodate the business needs of the Credit Union, and was therefore lawful. The Commission approved the agreement, subject to minor amendments to ensure compliance with the Fair Work Act 2009.

The Commission ordered that the Southern Cross Credit Union Limited Enterprise Agreement 2014-2017 be approved, subject to the minor amendments made by the Commission. The Commission also ordered that the agreement be registered with the Fair Work Commission, and that the Union and the Credit Union take all necessary steps to give effect to the agreement.

Southern Cross Credit Union Ltd

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