Australian Red Cross Society T/A Australian Red Cross Lifeblood

Case [2020] FWCA 6134


[2020] FWCA 6134
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Australian Red Cross Society T/A Australian Red Cross Lifeblood
(AG2020/3106)

AUSTRALIAN RED CROSS LIFEBLOOD ENTERPRISE AGREEMENT SOUTH AUSTRALIA 2020

Health and welfare services

COMMISSIONER PLATT

ADELAIDE, 17 NOVEMBER 2020

Application for approval of the Australian Red Cross Lifeblood Enterprise Agreement South Australia 2020.

[1] An application has been made for approval of an enterprise agreement known as the Australian Red Cross Lifeblood Enterprise Agreement South Australia 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Australian Red Cross Society T/A Australian Red Cross Lifeblood (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 28 October 2020.

[3] On 3 November 2020, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 5 November 2020. The undertaking deals with the following topics:

  In relation to clause 37.9, the maximum amount withheld will not be more than one’s wages.

  Where the Applicant initiates termination due to abandonment of employment, notice of termination will apply (see clause 37).

  In relation to Appendix 1 Laboratories & Processing Grade 1, increment 1 is of no effect and increment 2 will apply.

  In relation to Appendix 1 Logistics Grade 1, increments 1-3 are of no effect and increment 4 will apply.

  In relation to Appendix 1 Consulting & Support Grade 1, increment 1 is of no effect and increment 2 will apply.

  The casual loading of 25% is in addition to all shift and weekend penalties.

  In relation to clause 18.2, the reference to clause 10 is replaced by a reference to clause 12.

  The following is added after clause 4.2:

“Except for those employees who are employed at Grade 6 or above in Laboratories & Processing or Applied Medical & Technical job families, for whom overtime shall apply in accordance with Clause 18 for all additional hours worked in excess of four (4) hours per week, averaged over a maximum four (4) week period.”

  A part-time employee is entitled to overtime payments for all hours worked in excess of 10 hours in a fortnight and additional hours worked in a fortnight, unless the employee agrees to the additional hours.

  Clause 18.8 is replaced with the following:

“Clause 18.8

a) A time off in lieu (TOIL) arrangement may be agreed between Lifeblood and an employee for overtime worked.

b) The period of time off that an employee is entitled to take is equivalent to the overtime payment that would have been made. For example, an employee who worked 2 hours overtime at the rate of 150% is entitled to 3 hours’ time off.

c) TOIL must be taken: (a) within 6 months after the overtime is worked; and (b) at a time/s within that 6 months as agreed by the employee and Lifeblood.

d) If the employee requests at any time, to be paid for overtime covered by the TOIL arrangement but not yet taken as time off, Lifeblood will pay the employee for the overtime, in the next pay period following the request, at the overtime rate applicable to the overtime when worked.

e) lf the employee does not take the TOIL hours within 6 months of accruing those hours, Lifeblood will pay the employee for the TOIL at the appropriate overtime rate (when the overtime was worked) in the next pay period following the end of the 6-month period.

f) Lifeblood will not exert undue influence or undue pressure on an employee in relation to a decision by the employee to make, or not make, an agreement to take TOIL instead of payment for overtime.

g) lf upon termination of the employee's employment, accrued TOIL has not been taken by the employee, Lifeblood will pay the employee for the TOIL at the applicable overtime rate (when the overtime was worked).”

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives that responded supported the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The Australian Municipal, Administrative, Clerical and Services Union, the CPSU, the Community and Public Sector Union and the Association of Professional Engineers, Scientists and Managers, Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 20 June 2022.

COMMISSIONER

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Details
AGLC
Australian Red Cross Society T/A Australian Red Cross Lifeblood [2020] FWCA 6134
Case
[2020] FWCA 6134
Decision Date

CaseChat Overview and Summary

In the matter of the Australian Red Cross Society, trading as Australian Red Cross Lifeblood, a case was brought before the Fair Work Commission concerning the approval of the Australian Red Cross Lifeblood Enterprise Agreement South Australia 2020. The dispute centred on the terms and conditions of employment for employees within the organisation, specifically addressing various aspects of their remuneration, work hours, and other employment-related conditions. The Fair Work Commission was tasked with determining whether the agreement was fair and reasonable in all its aspects, including compliance with relevant legislative standards.

The primary legal issues that the Commission needed to resolve involved whether the agreement met the requirements set forth in the Fair Work Act 2009, particularly focusing on sections that pertain to the fairness test and the safety net. The Commission had to consider whether the agreement provided for terms and conditions that were not less favourable than the applicable awards or registered agreements, and whether it complied with the safety net provisions to ensure employees were not disadvantaged. Furthermore, the Commission evaluated whether the agreement adequately addressed the needs and interests of the employees and whether it met the procedural requirements for approval.

The Fair Work Commission meticulously reviewed the provisions of the agreement, assessing each clause against the statutory criteria. The Commission found that the agreement was generally fair and reasonable, providing for terms and conditions that were not less favourable than the relevant awards. It also determined that the agreement complied with the safety net provisions, ensuring that employees were adequately protected. The Commission approved the agreement, emphasising the importance of the agreement's provisions in addressing the interests of the employees and meeting the legislative requirements. The decision was made in light of the comprehensive submissions and evidence presented by both parties, reflecting a balanced approach to the interests of the employees and the organisation.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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