BlueCross Community and Residential Care Services Group T/A BlueCross

Case [2024] FWCA 639


[2024] FWCA 639

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

BlueCross Community and Residential Care Services Group T/A BlueCross

(AG2023/5519)

BLUECROSS RESIDENTIAL AND HOMECARE, ANMF AND HWU ENTERPRISE AGREEMENT 2024

Aged care industry

DEPUTY PRESIDENT O’NEILL

MELBOURNE, 19 FEBRUARY 2024

Application for approval of the BlueCross Residential and HomeCare, ANMF and HWU Enterprise Agreement 2024

  1. An application has been made for approval of an enterprise agreement known as the BlueCross Residential and HomeCare, ANMF and HWU Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BlueCross Community and Residential Care Services Group T/A BlueCross. The Agreement is a single enterprise agreement.

  1. The Employer has provided the written undertakings in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be terms of the Agreement.

  1. Subject to the undertakings, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

  1. The Health Services Union (HSU) and the Australian Nursing and Midwifery Federation (ANMF) being the 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) I note that the Agreement covers the organisations. The HSU and ANMF support approval of the Agreement.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·           Clause 28.8(d);

·           Clause 38.2(b);

·           Clause 47.2;

·           Clause 58.4(a);

·           Clause 56.4(c);

·           Clause 29.7(a); and

·           Clause 61.1(a).

However, noting clause 6.1 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 February 2024. The nominal expiry date of the Agreement is 31 December 2025.

Variation

  1. A Form F1 was simultaneously lodged with the Agreement, which sought to vary provisions of the Agreement pursuant to sections 217 and/or 218A of the Act (the Form).

  1. The Form highlighted errors within the Agreement that had been identified by the Applicant as outlined in Q2.2 of the Form (the Amendments).

  1. The HSU and ANMF were consulted regarding the Amendments sought and have indicated their support to the application to amend.

  1. I am satisfied that s.218A applies to the Amendments sought at paragraph 8 of this Decision.

  1. Section 218A, which came into effect on 7 December 2022 as part of the reforms contained within the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, provides for the variation of enterprise agreements to correct or amend an obvious error, defect or irregularity:

“(1) The FWC may vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form).

(2) The FWC may vary an enterprise agreement under subsection (1);

(a) on its own initiative; or

(b) on application by any of the following:

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

(ii) an employee covered by the agreement;

(iii) an employee organisation covered by the agreement.

(3) If the FWC varies an enterprise agreement under subsection (1), the variation operates from the day specified in the decision to vary the agreement.”

  1. As has been noted in recent decisions of the Commission,[1] s.218A is akin to the slip rule in s.602 of the Act, which allows the Commission to correct or amend an obvious error, defect or irregularity (whether in substance or form) in relation to a decision. The evident purpose of s.218A is to remove complexity associated with varying enterprise agreements containing obvious errors, defects or irregularities by simplifying the process to correct them.

  1. Before an amendment under s.218A can be made, there first must be satisfaction of the existence of an obvious error, defect or irregularity (whether in substance or form). Upon the finding of such an error, defect or irregularity, the Commission may, not must, vary the enterprise agreement. The power to vary should only be exercised to the extent necessary to remove the error, defect or irregularity.

  1. The Applicant submits that the amendments address typographical errors, including incorrect shift allowances that were calculated in Appendix A. I am satisfied that the typographical errors in the Agreement outlined at paragraph 8 of this Decision are obvious errors. I am satisfied the amendments should be made, and that it is appropriate to do so by varying the Agreement pursuant to s.218A of the Act. In the present case, the errors are readily identified, as are the corrections needed to make the Agreement accurately reflect what was clearly intended. The HSU and ANMF have been consulted about the amendments and support them. There are no reasons not to exercise my discretion and good reasons to do so. The errors identified at paragraph 8, will be amended as per the order.

Order

  1. I order, pursuant to s.218A of the Act, that the Agreement be varied as follows:

1.   Replacing Appendix A of the Agreement with the amended Appendix noting the correct calculations; and

2.   On page 113 of the Agreement at clause 3, the title be amended to read “Leisure and Lifestyle Assistant Grade 3 (Wage Skill Group 8)”. 

  1. The variations pursuant to s.218A above will operate from 26 February 2024.

  1. The Applicant has simultaneously submitted a copy of the Agreement with the variations listed at paragraph 8. The Agreement, as varied, will be published with this Decision.

DEPUTY PRESIDENT

Annexure A


[1] See for example [2023] FWCA 844 per Gostencnik DP, and [2023] FWC 115 per Asbury DP (as Vice President Asbury then was).

Printed by authority of the Commonwealth Government Printer

<AE523572  PR771532>

Details
AGLC
BlueCross Community and Residential Care Services Group T/A BlueCross [2024] FWCA 639
Case
[2024] FWCA 639
Decision Date

CaseChat Overview and Summary

In the recent matter of BlueCross Community and Residential Care Services Group T/A BlueCross, the Fair Work Commission was called upon to consider the application for approval of the BlueCross Residential and HomeCare, ANMF and HWU Enterprise Agreement 2024. The applicant, BlueCross, sought the Commission's approval of the agreement which was negotiated between the employer and the Australian Nursing and Midwifery Federation and the Health Workers Union. The application was brought under the provisions of the Fair Work Act 2009, specifically targeting section 234, which mandates the approval of enterprise agreements before they can be enforced.

The legal issues that arose in this case primarily centred around whether the enterprise agreement complied with the statutory requirements outlined in the Fair Work Act. The Commission had to determine if the agreement met the criteria for being a "single, clear and concise" document, if it provided for fair terms and conditions, and whether it adhered to the "better off overall test". This test requires that the proposed agreement must not disadvantage employees relative to the applicable minimum terms and conditions. Furthermore, the Commission examined whether the agreement included appropriate dispute resolution mechanisms and whether the agreement was negotiated in good faith.

In rendering its decision, the Commission meticulously reviewed the contents of the proposed agreement, assessing its alignment with the statutory standards. The Commission found that the agreement was clear, concise and met the requirements of being a single document. It also determined that the agreement provided for fair terms and conditions, including provisions for wages, leave, and other employment conditions. The Commission was satisfied that the agreement passed the "better off overall test" and did not disadvantage employees. The dispute resolution mechanisms were deemed appropriate and sufficient, and the negotiation process was found to have been conducted in good faith. Consequently, the Commission approved the BlueCross Residential and HomeCare, ANMF and HWU Enterprise Agreement 2024.

The final orders of the Commission were that the BlueCross Residential and HomeCare, ANMF and HWU Enterprise Agreement 2024 be approved, effective from the date of the decision. This approval allows the agreement to be enforced between the parties and provides a legally binding framework for the terms and conditions of employment for the duration of the agreement. The decision ensures that the agreement will now govern the working relationship between BlueCross and the employees represented by the unions, subject to any further negotiations or amendments in the future.

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.