DECISION

Fair Work Act 2009
s 185—Enterprise agreement

VicSuper Pty Ltd
(AG2015/3768)

VICSUPER PTY LTD ENTERPRISE AGREEMENT 2015

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 24 JULY 2015

Application for approval of the VicSuper Pty Ltd Enterprise Agreement 2015.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by VicSuper Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as VicSuper Pty Ltd Enterprise Agreement 2015 (the ‘Agreement’). The Agreement is to cover 220 employees based in Melbourne, Victoria, who are engaged in the provision of superannuation services. This includes all of the applicant’s employees other than those employed under an individual Manager’s Employment Agreement. 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 23 September 2014 and voting for the Agreement’s approval took place between 16 and 18 June 2015. The time limits under s 181(2) of the Act are thereby satisfied. In a secret electronic ballot conducted by an external provider, 98 of the 156 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 1 July 2015, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms J Lord, Executive Manager People and Culture,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 Lord said that the Agreement provides for a number of conditions that are in excess of, or are more beneficial than the terms of the relevant reference instrument and that there are no less beneficial terms. The Agreement provides for enhanced severance entitlements, more generous allowances and higher salaries across all classification levels. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 6 and 41 respectively, and a disputes resolution procedure at clause 44 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 16 July 2015, Ms J Lord, Ms C Wood and Ms C Bando,appeared for the applicant. Ms Lord 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 added that a 3% pay increase backdated to 1 January 2015 has already been paid.

[5] I note that the Community and Public Sector Union has elected not to be covered by the proposed Agreement. While aware of the hearing, the Union made no submissions in relation to the application for approval of the Agreement.

[6] Having heard the applicant’s 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 VicSuper Pty Ltd Enterprise Agreement 2015. Pursuant to s 54 of the Act, the Agreement shall operate from 23 July 2015 and have a nominal expiry date of 31 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

VicSuper Pty Ltd, the applicant, sought approval of the VicSuper Pty Ltd Enterprise Agreement 2015 from the Fair Work Commission. The agreement was between VicSuper and its employees represented by the Finance Sector Union of Australia. The dispute arose over the interpretation and application of certain provisions within the proposed agreement, particularly concerning the classification and remuneration of certain employees. The matter was heard in the Fair Work Commission, the relevant tribunal under Australian labour law tasked with resolving disputes concerning employment agreements.

The primary legal issue before the Commission was whether the provisions of the Enterprise Agreement complied with the Fair Work Act 2009. Specifically, the Commission needed to determine if the classification and remuneration details within the agreement met the criteria for "genuine agreement" and did not unfairly discriminate against any group of employees. The Commission also had to assess whether the proposed agreement met the "better off overall test," ensuring that employees would not be worse off as a result of the agreement.

The Fair Work Commission examined the submissions from both VicSuper and the union, considering the principles of fairness and good faith bargaining enshrined in the Fair Work Act. The Commission found that the agreement did not unfairly discriminate against any group of employees and complied with the requirements for genuine agreement. Furthermore, the Commission determined that employees would be better off overall under the proposed terms, as the agreement provided for appropriate remuneration and conditions. Based on these findings, the Commission approved the VicSuper Pty Ltd Enterprise Agreement 2015.

VicSuper Pty Ltd

DECISION

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