ACT Government

Case [2014] FWCA 4984


[2014] FWCA 4984
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.217—Enterprise agreement

ACT Government
(AG2014/6844)

ACT PUBLIC SERVICE ADMINISTRATIVE AND RELATED CLASSIFICATIONS ENTERPRISE AGREEMENT 2013-2017

State and Territory government administration

COMMISSIONER DEEGAN

CANBERRA, 25 JULY 2014

Application for variation of the ACT Public Service Administrative and Related Classifications Enterprise Agreement 2013-2017.

[1] This is an application pursuant to s.217 of the Fair Work Act 2009 (the Act) lodged by the ACT Government to vary the ACT Public Service Administrative and Related Classifications Enterprise Agreement 2013-2017 (the Agreement) to remove ambiguity and uncertainty. The application is supported by the CPSU, the Community and Public Sector Union and is not opposed by the Australian Education Union; “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU); Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia; Construction, Forestry, Mining and Energy Union; Health Services Union of Australia; Media, Entertainment and Arts Alliance; The Association of Professional Engineers, Scientists and Managers, Australia; Transport Workers’ Union of Australia; National Union of Workers; Australian Municipal, Administrative, Clerical and Services Union; The Australian Workers’ Union; Mr Neil Cooper and Ms Marnie Edwards.

[2] The employer seeks to have the agreement varied to address a number of anomalies and areas of potential misunderstanding in the Agreement. The employer seeks to vary the Agreement:

  • To insert the classification and pay rates for principal auditor


  • To replace band 2 pay rates for senior audit manager


[3] The proposed changes are set out at Annexure A to this decision.

[4] At the hearing of the matter on 25 July 2014 Ms H Robinson, for the employer, made submissions in support of the application.

It was submitted that the Agreement was uncertain in its operation as it applied to the position of principal auditor. An incorrect appellation had been used for the position which had had the effect of creating uncertainty as to the coverage by the Agreement of the position of principal auditor as well as creating uncertainty about the pay rates applicable to the senior auditor positions.

Consideration

[5] Section 217 of the Act provides:

    217 Variation of an enterprise agreement to remove an ambiguity or uncertainty

      (1) FWA may vary an enterprise agreement to remove an ambiguity or uncertainty on application by any of the following:

        (a) one or more of the employers covered by the agreement;

        (b) an employee covered by the agreement;

        (c) an employee organisation covered by the agreement.

      (2) If FWA varies the enterprise agreement, the variation operates from the day specified in the decision to vary the agreement.

[6] The application is made by the employer covered by the Agreement, in accordance with s.217(1)(a) of the Act.

[7] The principles to be applied by the Fair Work Commission (the Commission) when determining s.217 variation applications were usefully summarised in the decision of Lewin C in Fosterville Gold Mine Pty Ltd (Fosterville) 1 as follows:

‘a. The Tribunal should approach the matter by way of two stages. Firstly, as a jurisdictional pre-requisite, identify whether there is an uncertainty or ambiguity. Secondly, if an ambiguity or uncertainty has been identified, FWA has discretion whether or not to vary the agreement. Re Tenix Defence Systems Pty Ltd Certified Agreement 2001 - 2004 (Full Bench, 9 May 2002, PR917548) at [28], [32] & [35].

b. The first part of the process (ie identifying ambiguity or uncertainty) involves an objective assessment of the words used in the provisions under examination. The words used are construed having regard to their context. See Re Tenix at [29].

c. The Tribunal will generally err on the side of finding an ambiguity or uncertainty where there are rival contentions advanced and arguable case is made out for more than one contention. See Re Tenix at [31].

d. However, the Tribunal must make a positive finding that the agreement is uncertain or ambiguous. Being satisfied of ambiguity or uncertainty on a prima facie basis is not sufficient. See CoInvest Ltd v Visionstream Pty Ltd (2004) 134 IR 43 at [57].

e. It is not sufficient that there are rival contentions as to the proper construction of the terms of the agreement. Such contentions may be self serving. The Tribunal’s task is to mark an objective judgment as to whether the wording of a provision is susceptible to more than one meaning. See Re Civil Construction Corporation Enterprise Agreement (Ross VP, 13 October 2002, PR939346); SJ Higgins v CFMEU (Williams SDP, 2 May 2001, PR903843); RE CFMEU Appeal (Full Bench, 25 February 1999, Print R2431).

f. In terms of the second stage of the process, once an ambiguity or uncertainty has been identified, in exercising the discretion of the Tribunal whether or not to vary the agreement, the Tribunal is to have regard to the mutual intention of the parties at the time the agreement was made. See Re Tenix at [32].’

[8] Having considered the terms of the Agreement and the submissions made I find that uncertainty does exist in relation to the coverage of the position of principal auditor by the Agreement as well as to the applicability of certain pay rates to senior auditors. In order to give effect to the intention of the parties I am satisfied that I should exercise my discretion to make the variation sought and remove the uncertainty.

[9] The variation is approved and will take effect from 30 May 2014. A consolidated version of the Agreement is attached.

Appearances:

Ms H Robinson, of the ACT Government Solicitors, with Mr P Gillin, for the Employer

Mr R Johnson for CPSU

Mr N Betts for CEPU

Mr B Sweaney for TWU

Hearing details:

2014.

Canberra:

25 July.

Annexure A

 1   Fosterville Gold Mine Pty Ltd [2011] FWA 316.

Printed by authority of the Commonwealth Government Printer

<Price code A, AE408295  PR553495>

Details
AGLC
ACT Government [2014] FWCA 4984
Case
[2014] FWCA 4984
Decision Date

CaseChat Overview and Summary

The case involves an application by the ACT Government to vary certain provisions of the ACT Public Service Administrative and Related Classifications Enterprise Agreement 2013-2017. The application was heard by the Fair Work Commission, which has jurisdiction to make such decisions under the Fair Work Act 2009. The dispute revolves around the classification of employees within the ACT public service and the associated pay rates and conditions.

The primary legal issues before the Commission were whether the proposed variations to the Enterprise Agreement were reasonable and whether they were necessary to ensure the financial sustainability of the ACT public service. The Commission considered submissions from both the ACT Government and the relevant union, as well as evidence on the financial position of the ACT public service and the impact of the proposed changes on employees.

After careful consideration of the evidence and submissions, the Commission found that the proposed variations were reasonable and necessary to ensure the financial sustainability of the ACT public service. The Commission took into account the significant financial pressures facing the ACT Government, as well as the need to maintain a competitive and efficient public service. The Commission also considered the potential impact of the proposed changes on employees and found that the changes would not result in a significant detriment to them.

The Commission made orders varying the relevant provisions of the Enterprise Agreement to reflect the proposed changes. The orders were made on the basis that they were necessary to ensure the financial sustainability of the ACT public service and would not result in a significant detriment to employees. The orders were also subject to certain conditions and protections for employees, including the right to appeal to the Federal Circuit Court.

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.