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AG2011/ 521 , Transcript of Proceedings [2011] FWATrans 333 (4 April 2011)

TRANSCRIPT OF PROCEEDINGS

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Fair Work Act 2009 44517-1

DEPUTY PRESIDENT SAMS

AG2011/ 521 

s.185 - Application for approval of a single-enterprise agreement

Southern Cross Credit Union Limited
and
Finance Sector Union of Australia
(AG2011/ 521 )





Sydney

9.35AM, THURSDAY, 31 MARCH 2011

PN1

THE DEPUTY PRESIDENT: Could I have the appearances?

PN2

MR G. BOYD: Yes Gary Boyd for Southern Cross Credit Union.

PN3

THE DEPUTY PRESIDENT: Thank you.

PN4

MR BOYD: And MR W. SMITH for Southern Cross Credit Union.

PN5

THE DEPUTY PRESIDENT: Yes.

PN6

MS A. BUDAI: Angela Budai for the Finance Sector Union.

PN7

THE DEPUTY PRESIDENT: Yes.

PN8

MR D. PEDDIE: And Don Peddie, also for Finance Sector Union.

PN9

THE DEPUTY PRESIDENT: Thank you. Mr Boyd, this is an application filed by the employer, so you can lead off. Why should Fair Work Australia approve this agreement?

PN10

MR BOYD: Because it's a fair agreement. It's based on a longstanding agreement that we've had in place for a number of years now, in excess of 10. The employees are better off than the award, and we've had strong support for it.

PN11

THE DEPUTY PRESIDENT: Yes. I did note that there is reference to earlier an agreement being withdrawn.

PN12

MR BOYD: Yes.

PN13

THE DEPUTY PRESIDENT: Why was that?

PN14

MR BOYD: Because the agreement didn't include minimum rates of pay. So it was difficult for Fair Work Act to apply the BOOT test. We had a hearing on that, and we withdrew the agreement and went back to the vote and made some changes in consultation with the union.

PN15

THE DEPUTY PRESIDENT: I see. Otherwise I think everything looks in order, although there was one question I did want to ask you. The increases in rates of pay over the next two years, and the first one being applied from the first full pay period after the approval of the agreement, it hasn't been paid yet, has it?

PN16

MR BOYD: In fact it has been.

PN17

THE DEPUTY PRESIDENT: That's usually the case. Why is it that it's 5.5 for those up to the total remuneration package of 43,600, and then 3.5 those - - -

PN18

MR BOYD: Others.

PN19

THE DEPUTY PRESIDENT: The others.

PN20

MR BOYD: That was a conscious decision to try and lift the rates of pay for the lesser paid employees I guess to better meet market for those employees. That was consistent - the staff consultative committee agreed with that, along with directors and management.

PN21

THE DEPUTY PRESIDENT: I don't see anything wrong with it at all. I was just wondering why that was so.

PN22

MR BOYD: Yes.

PN23

THE DEPUTY PRESIDENT: In fact you're commended for doing so. There was a vote then taken on 17 March.

PN24

MR BOYD: Yes.

PN25

THE DEPUTY PRESIDENT: That was over a seven-day period, was it?

PN26

MR BOYD: That was the completion of the vote.

PN27

THE DEPUTY PRESIDENT: That was by secret ballot.

PN28

MR BOYD: Yes.

PN29

THE DEPUTY PRESIDENT: What do you say? Who's leading from the union?

PN30

MR PEDDIE: If it please you, Deputy President, I'm Don Peddie.

PN31

THE DEPUTY PRESIDENT: Yes, Don.

PN32

MR PEDDIE: We consider that overall the agreement does meet the BOOT, and we have on concerns in that regard. Yes, we did have some further discussion with Southern Cross about the content of the agreement post the hearing on 3 February where there was some shortcomings identified of it in the content of the agreement, primarily no minimum pay rates. But since that time, we are satisfied that the agreement certainly does have required content for the BOOT and for approval. We have also lodged a form 22 where FSU seeks to be covered by the agreement.

PN33

THE DEPUTY PRESIDENT: Yes. I didn't notice a form 18. Is that deliberate or not?

PN34

MR PEDDIE: We didn't finish a form 18, Deputy President, because we did come to the negotiations rather late in the piece.

PN35

THE DEPUTY PRESIDENT: Yes.

PN36

MR PEDDIE: There was a staff consultative committee who had done the lion's share of discussion directly with the employer about this. So we felt in those circumstances that a form 18 probably was not entirely appropriate.

PN37

THE DEPUTY PRESIDENT: All right. Thank you. Having heard the submissions of the parties and upon reviewing the terms of the approval process documentation and the terms of the agreement itself, I am satisfied that all of the requirements of the act, in particular sections 180, 186, 187, 188 insofar as is relevant to this application have been met. I accept the statements of both the employer and the union that the agreement does meet the better off overall test, and in looking at the increases that are available under the terms of the agreement and the other benefits which are improvements to the relevant award, I am satisfied that that is the case.

PN38

I note that the union has filed a form 22, a notice to be covered by the agreement, and pursuant to section 201(2) of the act, I note the Finance Sector Union of Australia is to be covered by this agreement. Pursuant to section 54 of the act, I shall approve a single enterprise agreement to be known as the Southern Cross Credit Union Ltd Enterprise Agreement 2011-2013 with an effective operative date seven days hence, being 3 April 2011, and with a nominal expiry date of 3 April 2014. Thank you. I shall issue a short decision in due course, but you can take it the agreement has been approved by Fair Work Act.

PN39

MR BOYD: Thank you.

PN40

THE DEPUTY PRESIDENT: Thank you.

PN41

MR PEDDIE: Thank you.

<ADJOURNED INDEFINITELY [9.42AM]