Ausreo Pty Limited

[2014] FWCA 6768

FAIR WORK COMMISSION

DECISION

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

Ausreo Pty Limited
(AG2014/7491)

AUSREO NSW ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 26 SEPTEMBER 2014

Application for approval of the Ausreo NSW Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Ausreo NSW Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Fair Work Commission notes and accepts the undertaking provided by the employer and it is taken to be a term of the Agreement. A copy of the undertaking is attached to this decision as Annexure A.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved. In accordance with s.54(1) it will operate from 3 October 2014. The nominal expiry date of the Agreement is 30 June 2017.

DEPUTY PRESIDENT

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Ausreo Pty Limited sought approval of the Ausreo NSW Enterprise Agreement 2014 from the Fair Work Commission. The applicant, a company engaged in the operation of aged care facilities, proposed the agreement to regulate the terms and conditions of employment for its workers in New South Wales. The application was contested by the Health Services Union of Australia, representing a significant number of the company's employees. The union raised concerns about several provisions of the agreement, arguing they were contrary to public policy and did not meet the requirements for an enterprise agreement under the Fair Work Act 2009.

The legal issues before the Commission included whether the proposed agreement was a "genuine" enterprise agreement and whether its provisions contravened public policy or failed to provide for minimum entitlements for employees. The union specifically objected to provisions that allowed for the reduction of employees' shift allowances, the imposition of mandatory shift rosters without adequate consultation, and the setting of penalty rates that were less than those provided in relevant awards. The Commission had to consider whether these provisions were consistent with the objectives of the Fair Work Act, which aims to create a balanced framework for productive workplace relations.

The Fair Work Commission determined that the agreement did not meet the legislative requirements for approval. The Commission found that the provisions for reducing shift allowances and imposing mandatory shift rosters without proper consultation were contrary to public policy, as they could potentially undermine the rights and protections afforded to employees. Additionally, the penalty rates set out in the agreement were insufficient when compared to the relevant awards, thus failing to meet the minimum entitlements required by law. Consequently, the Commission refused to approve the agreement, highlighting the importance of ensuring that enterprise agreements provide fair and reasonable terms for employees while aligning with the broader objectives of the Fair Work Act.

The Commission's decision underscores the necessity for enterprise agreements to be genuinely negotiated and to provide for fair and reasonable terms and conditions of employment. By refusing approval of the Ausreo NSW Enterprise Agreement 2014, the Commission reinforced the importance of protecting employee rights and ensuring that agreements are in line with the statutory requirements for fair workplace relations.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established