Zurich Financial Services Ltd

[2014] FWCA 2343

[2014] FWCA 2343

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement

Zurich Financial Services Ltd
(AG2014/5112)

ZURICH AUSTRALIA ENTERPRISE AGREEMENT 2014

Banking finance and insurance industry
DEPUTY PRESIDENT SAMS	SYDNEY, 10 APRIL 2014

Application for approval of the Zurich Australia Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Zurich Financial Services Australia Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Zurich Australia Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with the Finance Sector Union of Australia (the ‘Union’) and three non-Union Employee Bargaining Representatives. The Agreement is to cover 1301 employees of the applicant who are located Australia wide and who provide of finance and insurance services. 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 9 October 2013, and voting for the Agreement’s approval took place between 10 and 12 March 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a vote conducted online and by phone by an independent third party, 632 of the 762 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 26 March 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms M Auer, Senior HR Business Partner and Country Head of HR identified the Banking, Finance and Insurance Industry Award 2010 [MA000019] and the Insurance Industry Award 1998 [AP784988] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Auersaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, including less generous overtime entitlements, the removal of a number of allowances, and an increased spread of ordinary hours. However, the Agreement provides for a number of terms and conditions that are in excess of, or more beneficial than those under the reference instruments, including higher rates of pay, enhanced superannuation entitlements, a higher level of personal/carer’s leave and enhanced redundancy entitlements. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 20.3 and 21 respectively, and a disputes resolution procedure at clause 25 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 7 April 2014, Ms C Lang, Solicitorappeared with Ms M Auer and Ms R Devlin for the applicant and Ms A Clancy for the Union. The Union had filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that it wishes to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Union is to be covered by the Agreement. Ms Lang 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 explained that rates of pay for employees below the Total Employment Cost (TEC) Threshold would be increased by 2% on 1 April 2014, 1 April 2015, 1 April 2016 and 1 April 2017. The applicant had paid the increase due to the employees on 1 April 2014 as a gesture of good faith. Ms Clancy supported the submissions of Ms Lang and confirmed that the Agreement met the BOOT.

[5] Having heard the parties’ 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 Zurich Australia Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 14 April 2014 and have a nominal expiry date of 13 April 2018.

DEPUTY PRESIDENT

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