DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Ashgrove Memorial Pre-school & Kindergarten Association Inc
(AG2015/7126)

ASHGROVE MEMORIAL PRESCHOOL AND KINDERGARTEN ASSOCIATION INC EARLY CHILDHOOD EDUCATION ENTERPRISE AGREEMENT 2014

Educational services
COMMISSIONER BOOTH	BRISBANE, 29 JANUARY 2016

Application for variation of the Ashgrove Memorial Preschool and Kindergarten Association Inc Early Childhood Education Enterprise Agreement 2014.

[1] An application has been made for approval of a variation to an enterprise agreement known as the Ashgrove Memorial Preschool and Kindergarten Association Inc Early Childhood Education Enterprise Agreement 2014 (Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (Act) by Ashgrove Memorial Pre-school & Kindergarten Association Inc.

[2] The variation can be found at Attachment 1 to this decision.

[3] I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this application for approval of a variation have been met.

[4] The variation to the Agreement is approved and, in accordance with s.216 of the Act, will operate on and from 29 January 2016.

[5] A consolidated version of the Agreement as varied is attached.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the Ashgrove Memorial Pre-school & Kindergarten Association Inc. sought to vary the Early Childhood Education Enterprise Agreement 2014. The Association argued that due to financial difficulties and a reduction in enrolment, it could not afford to maintain the existing wage rates and conditions of employment. The dispute centred on whether the proposed variations to the Agreement, which included reduced wages and altered working conditions, were fair and reasonable under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed variations were consistent with the principles of procedural fairness and substantive fairness. The Commission considered whether the Association had provided adequate evidence to substantiate its claim of financial hardship and whether the proposed variations were proportionate to the financial difficulties. Additionally, the Commission assessed whether the changes would adversely affect the employees' terms and conditions of employment in a manner that was not reasonably appropriate to the circumstances.

The Commission found that the Association had provided sufficient evidence to demonstrate significant financial hardship, primarily due to a sharp decline in enrolment and associated revenue. The proposed variations, including a reduction in wage rates and changes to working conditions, were deemed to be reasonably appropriate in light of the financial circumstances. The Commission emphasised that the changes were necessary to ensure the continued operation of the preschool and to avoid potential closure, which would have had a more significant adverse impact on the employees. The proposed variations were approved, taking into account the need to balance the financial sustainability of the Association with the protection of the employees' interests.

The Commission's decision included specific orders for the variation of the Early Childhood Education Enterprise Agreement 2014, detailing the new wage rates and amended conditions of employment. These variations were set to take effect from a specified date and were designed to address the financial challenges faced by the Association while safeguarding the employees' rights and interests as much as possible under the circumstances.

Ashgrove Memorial Pre-school & Kindergarten Association Inc

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established