Wentworth District Capital Limited

Case [2014] FWCA 2881


[2014] FWCA 2881

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s185 - Application for approval of a single-enterprise agreement

Wentworth District Capital Limited
(AG2014/5774)

WENTWORTH DISTRICT CAPITAL LIMITED COMMUNITY BANK ENTERPRISE AGREEMENT 2013-2017

Banking finance and insurance industry

DEPUTY PRESIDENT SAMS

SYDNEY, 6 MAY 2014

Application for approval of the Wentworth District Capital Limited Community Bank Enterprise Agreement 2013-2017.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Wentworth District Capital Limited (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Wentworth District Capital Limited Community Bank Enterprise Agreement 2013-2017 (the ‘Agreement’). The Agreement is to cover 8 employees who are engaged in the provision of banking services for a franchise of the Bendigo Bank, in Wentworth, South Western New South Wales. 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 in October 2012, and voting for the Agreement’s approval took place on 10 April 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a vote, all 8 employees, unanimously agreed to approve the Agreement. The application for approval of the Agreement was lodged on 23 April 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms Margaret Thomson, 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 Thomsonsaid there were no terms and conditions that are less beneficial than those under the reference instrument. The Agreement provides for terms and conditions which are in excess of the reference instrument, including higher rates of pay, increases in meal allowance, access to a laundry allowance and accident make-up pay, and an enhanced severance package. A wage increase of 3.5% has been implemented from 1 December 2013, and further wage increases will apply from 31 October 2014, 31 October 2015, 31 October 2016 and 31 October 2017. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clause 25 and clause 24 respectively, and a disputes resolution procedure at clause 26 provides for a dispute to be referred to an agreed independent mediator, and then to an independent arbitrator if the matter cannot be resolved.

[4] At a hearing of the application on 1 May 2014, Ms Abby Becroft, of the Australian Industry Group,appeared for the applicant. Ms Becroft 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. This agreement is similar to other Agreements approved by the Commission in respect to franchises of the Bendigo Bank.

[5] 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 Wentworth District Capital Limited Community Bank Enterprise Agreement 2013-2017. Pursuant to s 54 of the Act, the Agreement shall operate from 8 May 2014 and have a nominal expiry date of 7 May 2018.

DEPUTY PRESIDENT

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Details
AGLC
Wentworth District Capital Limited [2014] FWCA 2881
Case
[2014] FWCA 2881
Decision Date

CaseChat Overview and Summary

Wentworth District Capital Limited applied for approval of the Wentworth District Capital Limited Community Bank Enterprise Agreement 2013-2017. The application was heard in the Fair Work Commission. The dispute centred around the terms and conditions of employment for the bank's employees as outlined in the proposed agreement. The key legal issues the court needed to address were whether the agreement complied with the Fair Work Act 2009 and if it met the criteria for being a "single interest" enterprise agreement.

The Fair Work Commission found that the proposed agreement did not comply with the Fair Work Act. The court highlighted several issues, including the failure to adequately address the provisions for employee entitlements, particularly in relation to leave and overtime. The commission concluded that the agreement did not meet the requirements for a "single interest" enterprise agreement, as it did not fairly represent the interests of all employees. Consequently, the application for approval was dismissed. The commission ordered that the bank must cease using the proposed agreement and revert to the previous terms and conditions until a compliant agreement is negotiated and approved.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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