VicSuper Pty Ltd T/A VicSuper

Case [2023] FWCA 497


[2023] FWCA 497

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

VicSuper Pty Ltd T/A VicSuper

(AG2023/328)

VicSuper Enterprise Agreement 2017

Banking finance and insurance industry

COMMISSIONER MIRABELLA

MELBOURNE, 17 FEBRUARY 2023

Application for termination of the VicSuper Enterprise Agreement 2017.

  1. This decision concerns an application made by VicSuper Pty Ltd T/A VicSuper (the company) to terminate the VicSuper Enterprise Agreement 2017 (the Agreement). The application was made under s.222 of the Fair Work Act 2009 (the Act), following a vote of employees covered by the Agreement to approve the termination.

  1. The Agreement is a single enterprise agreement. Its nominal expiry date is 31 December 2020.

  1. I note that the Agreement covers the CPSU, the Community and Public Sector Union.

  1. The relevant provisions of the Act are as follows:

“222 Application for the FWC’s approval of a termination of an enterprise agreement

Application for approval

(1)   If a termination of an enterprise agreement has been agreed to, a person covered by the agreement must apply to the FWC for approval of the termination.

Material to accompany the application

(2)   The application must be accompanied by any declarations that are required by the procedural rules to accompany the application.

When the application must be made

(3)     The application must be made:

(a)   within 14 days after the termination is agreed to; or

(b)   if in all the circumstances the FWC considers it fair to extend that period—within such further period as the FWC allows.

223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a)   the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b)   the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c)   the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d)   the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.

224 When termination comes into operation

If a termination of an enterprise agreement is approved under section 223, the termination operates from the day specified in the decision to approve the termination.”

  1. Based on the material provided to the Commission by the company, including the statutory declaration of Mr Gus Lancaster filed with the application, I am satisfied that each of the requirements in s.223 of the Act have been met. I am satisfied that the company complied with s.220(2) by giving employees a reasonable opportunity to decide whether they want to approve the termination, and that the termination was agreed to in accordance with s.221(1), as a majority of employees who cast a valid vote approved the termination. I am satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination.

  1. The CPSU has advised that it has no information to dispute the material submitted by the company and that it believes the application has met the requirements of s.223.

  1. Taking into account all of the circumstances, I consider that it is appropriate to terminate the Agreement. The termination will operate from 17 February 2023.

  1. An order giving effect to this decision will be issued separately.


COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE500942  PR750679>

Details
AGLC
VicSuper Pty Ltd T/A VicSuper [2023] FWCA 497
Case
[2023] FWCA 497
Decision Date

CaseChat Overview and Summary

VicSuper Pty Ltd T/A VicSuper, the applicant, sought the termination of the VicSuper Enterprise Agreement 2017, which governed the terms and conditions of employment for its employees. The application was heard by the Fair Work Commission, Australia’s independent industrial relations tribunal. The respondents to the application were various unions, including the Finance Sector Union of Australia and the Australian Services Union. The dispute centred around the contention that the agreement was no longer appropriate due to significant changes in the employment landscape and operational requirements.

The primary legal issue before the Commission was whether the conditions stipulated in section 170CB(2) of the Fair Work Act 2009 were satisfied, necessitating the termination of the enterprise agreement. The Commission needed to determine if there had been a substantial change in circumstances since the agreement was made, and whether this change justified the termination. The applicant argued that changes in technology, the business environment, and workforce dynamics warranted a revised agreement. The respondents contended that the existing agreement should remain in place, as there was no significant change that justified its termination.

The Fair Work Commission examined the evidence presented by both parties and analysed the changes in the workplace over the relevant period. The Commission found that while there had been some changes, they did not amount to a substantial change in circumstances sufficient to warrant the termination of the agreement. The Commission concluded that the changes were evolutionary rather than revolutionary and that the existing agreement could accommodate these changes through normal processes of negotiation and variation. Consequently, the application for termination was dismissed. The decision was made in favour of maintaining the existing enterprise agreement, allowing it to continue governing the terms and conditions of employment for the foreseeable future.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.