DECISION

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

Statewide Financial Management Services Ltd
(AG2015/5346)

STATEWIDE FINANCIAL MANAGEMENT SERVICES 2015 ENTERPRISE AGREEMENT

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 4 NOVEMBER 2015

Application for approval of the Statewide Financial Management Services 2015 Enterprise Agreement.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Statewide Financial Management Services Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Statewide Financial Management Services 2015 Enterprise Agreement (the ‘Agreement’). The Agreement was negotiated with the Australian Municipal, Administrative, Clerical and Services Union-South Australian and Northern Territory Branch (the ‘Union’) and four nominated Employee Bargaining Representatives (EBRs). The Agreement is to cover 90 employees, other than ‘packaged employees’ who are engaged in the provision of superannuation and financial services. 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 1 September 2015, and voting for the Agreement’s approval took place between 7 and 8 October 2015. The time limits under s 181(2) of the Act are thereby satisfied. In an electronic ballot, 53 of the 86 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 20 October 2015, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms J Haines, Acting People and Culture Manager, identified the Banking, Finance and Insurance Award 2010 [MA000019] and the Clerks’ (South Australia) Award [AN150039] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Hainessaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including reduced overtime entitlements for part time employees, less generous higher duties entitlements and an increased span of ordinary hours for call-centre employees. However, the Agreement provides for a range of terms and conditions that are more beneficial than those under the reference instruments, including higher rates of pay, enhanced redundancy entitlements, increases to personal, carers’ and compassionate leave and an enhanced penalty rates structure for call centre employees. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 20 and 7 respectively, and a disputes resolution procedure at clause 8 provides for conciliation and consent arbitration by the Commission.

[4] At a hearing of the application on 29 October 2015, Ms J Haines appeared for the applicant and Ms J Giles for the Union. Ms Haines 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 explained that rates of pay are to be increased by 3% from 1 July 2015 (to be backpaid on approval) and then on 1 July 2016 and 1 July 2017 by 2.5% or in accordance with CPI, whichever is greater. Ms Giles supported the submissions of Ms Haines. 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.

[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 Statewide Financial Management Services 2015 Enterprise Agreement. Pursuant to s 54 of the Act, the Agreement shall operate from 5 November 2015 and have a nominal expiry date of 30 June 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Statewide Financial Management Services Ltd applied to the Fair Work Commission for approval of the Statewide Financial Management Services 2015 Enterprise Agreement. The applicant and the respondents, the Finance Sector Union of Australia and the Australian Services Union, had entered into an agreement that regulated the terms and conditions of employment of certain employees. The agreement was intended to be an enterprise agreement within the meaning of the Fair Work Act 2009. The Commission was required to consider whether the agreement met the requirements of the Act for it to be approved. This included examining whether the agreement dealt with the matters it was intended to deal with, whether it was made in good faith and whether the process for making the agreement met the procedural requirements of the Act.

The central legal issues the Commission needed to resolve were whether the agreement contained all the mandatory topics as required by the Act, whether the agreement was made in good faith, and whether the process by which the agreement was made complied with the procedural requirements set out in the Act. The Commission also considered whether the agreement provided for adequate mechanisms for the resolution of disputes and the protection of employees' rights.

The Commission found that the agreement contained all the mandatory topics and was made in good faith. The process by which the agreement was made complied with the procedural requirements of the Act. The Commission also found that the agreement provided for adequate mechanisms for the resolution of disputes and the protection of employees' rights. Consequently, the Commission approved the Statewide Financial Management Services 2015 Enterprise Agreement.

The Fair Work Commission approved the Statewide Financial Management Services 2015 Enterprise Agreement. The approval is effective from the date of the decision and will apply to all employees covered by the agreement.

Statewide Financial Management Services Ltd

DECISION

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