Modern awards no good for banking, rules Fair Work Commission

The Finance Sector Union failed last week to persuade the Fair Work Commission to modernise industrial awards specific to ANZ, National Australia Bank and the Reserve Bank.

The enterprise award for ANZ "had relevance for a short period in the early 1990s prior to the establishment of enterprise agreements," a three-person commission tribunal ruled.

The ANZ award "has since failed to remain relevant and constitute a fair and relevant safety net. It contains some benefits to employees greater than those in the industry award but also some less beneficial entitlements.

"The industry award was made with the benefit of a consideration of all terms and conditions in awards in the industry."

The commission conceded that "there is much to be said for a single instrument applying to all employers."

Ruling on the same day in connection with a modern award for NAB, the trio of commissioners summed up their views on awards in banking.

"We have heard applications for modern enterprise awards relating to ANZ, Commonwealth Bank, Westpac and NAB. Some of the applications have been strongly opposed, others viewed with ambivalence and some supported.

"In our view, the pattern of award coverage in the entire industry is an important overall consideration. While consent of parties to instruments is relevant we do not consider that it should be determinative."

The law "does not permit new enterprise awards to be made when there has been no history of enterprise award coverage," they said.

"We have decided not to make modern enterprise awards for each of the other banks.

"That will retain the concept of a single private sector industry award applying to the whole industry and simplify the award system to that extent."