VicSuper Pty Ltd

[2013] FWCA 9890

[2013] FWCA 9890

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s 210 - Application for approval of a variation of an enterprise agreement

VicSuper Pty Ltd
(AG2013/11884)

VICSUPER PTY LTD ENTERPRISE AGREEMENT 2012

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 19 DECEMBER 2013

Application for variation of the VicSuper Pty Ltd Enterprise Agreement 2012.

[1] An application has been made by VicSuper Pty Ltd, pursuant to s 210 of the Fair Work Act 2009 (the ‘Act’) for the approval of a variation to a single enterprise agreement known as the VicSuper Pty Ltd Enterprise Agreement 2012 [AE892357]. The Agreement currently covers 171 employees who are engaged in the management of superannuation and related financial services.

[2] The application seeks to vary the Agreement by deleting clause 23, which deals with superannuation, and inserting in lieu thereof, the following:

‘23. Superannuation

23.1 Each employee is required to join VicSuper Fund.

23.2 Vic Super will comply with all provisions of VicSuper Fund.

23.3 VicSuper will pay the compulsory superannuation guarantee contribution into the VicSuper Fund account of each employee during the life of this Agreement.

23.4 A designated employee who was a member of the State Superannuation Fund as at 30 June 1999 will receive the additional superannuation employer contribution being 1.8% in addition to the compulsory superannuation guarantee contribution payable by VicSuper from 1 July 1999.

23.5 All employees are encouraged to increase their superannuation contributions above the superannuation guarantee through a salary sacrifice arrangement subject to contribution caps. All employees may also make extra after tax superannuation contributions subject to contribution caps.’

[3] In the Employer’s Declaration in support of the application (Form F23A), Ms J Lord, Executive Manager, People and Culture, said that the employees were notified of the proposed variation by email and by means of the Employee social networking system (known as ‘Yammer’) on 14 November 2013. Instructions as to the electronic voting process were emailed to employees on 22 November 2013. All employees were contacted by way of email as to the potential effect of the proposed variation. The applicant also conducted workshops and one-on-one appointments for those who wanted to clarify details of the change. Voting for the variation’s approval took place between 25 November and 6 December 2013. In an electronic vote, 75 of the 121 employees who voted, agreed to approve the variation. The application for approval of the variation was lodged on 10 December 2013, thus satisfying s 210(3) of the Act.

[4] The Community and Public Sector Union (the ‘Union’) filed a Declaration of Employee Organisation (Form F23B) indicating that the Employer’s Declaration had been read and was agreed to by the Union.

[5] At a hearing of the application on 17 December 2013, Ms J Lord appeared with Ms C Bando for the applicant and Mr W Townsend for the Union. Ms Lord submitted that all of the legislative requirements for approval of the variation have been satisfied and that the application should be approved by the Commission. She explained that the effect of the variation sought by the applicant was to reduce the superannuation contribution of the employer from 15% to the compulsory superannuation contribution guaranteed under Commonwealth legislation. However, the variation does not involve a reduction in entitlements as employees are given the option to either take the contribution as part of their pay or make contributions to their superannuation through a salary sacrifice arrangement. Mr Townsend supported the submissions of Ms Lord and reaffirmed that the Union supported the application.

[6] Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the proposed variation of the Agreement, I am satisfied that all of the requirements of the Act, in particular ss 207-211 of the Act have been met. Accordingly, I approve the proposed variation to the VicSuper Pty Ltd Enterprise Agreement 2012 in accordance with para [2] above. Pursuant to s 216 of the Act and in accordance with the consent of the parties, the variation will operate from 1 January 2014.

DEPUTY PRESIDENT

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