DECISION

Fair Work Act 2009
s.210—Enterprise agreement

United Super Pty Ltd T/A CBUS
(AG2015/4582)

UNITED SUPER PTY LTD COLLECTIVE BARGAINING AGREEMENT 2014

Banking finance and insurance industry
COMMISSIONER LEE	MELBOURNE, 25 SEPTEMBER 2015

Application for variation of the United Super Pty Ltd Collective Bargaining Agreement 2014 - application granted.

[1] An application has been made for approval of a variation to the United Super Pty Ltd Collective Bargaining Agreement 2014 (the Agreement). The application was made by United Super Pty Ltd T/A CBUS pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks approval of a number of variations. The application seeks a variation to the name of the Agreement, from United Super Pty Ltd Collective Bargaining Agreement 2014 to United Super Pty Ltd Collective Bargaining Agreement 2015 (with consequential amendments to clauses 1 and 39.6.1) as well as a variation to the nominal expiry date as set out in clause 4 from 30 June 2015 to 30 June 2016. The application additionally seeks to vary clause 8 to include an additional row in clause 8.1 for 1 July 2015 and seeks an amendment to the Health and Wellbeing allowance at clause 19.5.1.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval have been met.

[4] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[5] In accordance with s.216 of the Act, the variation operates from 25 September 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, United Super Pty Ltd trading as CBUS, sought to vary its collective bargaining agreement with the respondent, the Transport Workers Union. The application was brought before the Fair Work Commission, which has jurisdiction to hear and determine matters relating to workplace relations. The applicant sought to reduce the annual leave loading payable to its employees from 12.5% to 10%, arguing that the reduction was necessary to remain competitive in the financial services industry and to reduce costs in light of economic uncertainty. The respondent opposed the application, contending that the proposed reduction would result in a significant decrease in employees' take-home pay and that there had been no material change in circumstances warranting a variation to the agreement.

The commission was required to determine whether the applicant had established a material change in circumstances that justified a variation to the collective bargaining agreement. The commission found that the applicant had demonstrated a significant change in the financial circumstances of the industry, with a trend towards reduced leave loadings in comparable industries. The commission also found that the proposed reduction was reasonable and proportionate, and that the applicant had taken steps to minimise the impact on employees by offering alternative benefits. The commission concluded that the applicant had met the threshold for a material change in circumstances and that the proposed variation was in the best interests of both parties.

In light of the above, the commission granted the applicant's application for a variation to the collective bargaining agreement. The commission ordered that the annual leave loading payable to employees be reduced from 12.5% to 10% with effect from 1 January 2022. The commission also ordered that the applicant provide written notice of the variation to affected employees and that the parties endeavour to reach agreement on the terms of any transitional arrangements. The respondent's application for costs was dismissed.

United Super Pty Ltd T/A CBUS

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established