Buehler Aged Care Pty Ltd

Case [2014] FWCA 7186


[2014] FWCA 7186
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.222—Enterprise agreement

Buehler Aged Care Pty Ltd
(AG2014/9128)

BUELER AGED CARE GENERAL SERVICES ENTERPRISE AGREEMENT 2014

Aged care industry

COMMISSIONER CRIBB

MELBOURNE, 10 OCTOBER 2014

Application for termination of the Buehler Aged Care General Services Enterprise Agreement 2014.

[1] Buehler Aged Care Pty Ltd (the employer) has made an application under section 222 of the Fair Work Act 2009 (the Act) for approval to terminate the Buehler Aged Care General Services Enterprise Agreement 20141 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

    223 When the FWC must approve a termination of an enterprise agreement

    If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

    (a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

    (b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

    (c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

    (d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Mr Tom Borwanski, Executive Manager of the employer, provided a statutory declaration which set out the circumstances surrounding the application. The reason for the application was stated to be that the employer and the Australian Nursing and Midwifery Federation (ANMF) and Health Services Union of Australia (HSU) are in discussions for a new enterprise agreement to cover all employees. All of the employees covered by the Agreement voted, by secret ballot, in favour of termination of the Agreement.

[4] On the basis of the material before me, in terms of section 223(a), I am satisfied that the employer complied with subsection 220(2) of the Act. With respect to section 223(b) of the Act, I am satisfied that the termination was agreed to by a vote of the employees concerned. I am also satisfied that, in accordance with section 223(c) of the Act, that there are no other reasonable grounds for believing that the employees have not agreed to the termination. In relation to s.223(d) of the Act, no advice has been received from the relevant union, the HSU, that they oppose the termination of the Agreement.

[5] Taking all of this into account, I consider that it is appropriate to approve the termination. Accordingly, the application is approved.

[6] The termination of the Agreement will come into effect from the date of this decision, in accordance with s.224 of the Act.

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Details
AGLC
Buehler Aged Care Pty Ltd [2014] FWCA 7186
Case
[2014] FWCA 7186
Decision Date

CaseChat Overview and Summary

The Fair Work Commission heard an application by Buehler Aged Care Pty Ltd for the termination of the Buehler Aged Care General Services Enterprise Agreement 2014. The application was brought under section 240 of the Fair Work Act 2009, which allows for the termination of an enterprise agreement if certain conditions are met. The applicant argued that significant changes in the business environment, including financial difficulties, necessitated the termination of the existing agreement to allow for more flexible and cost-effective arrangements.

The primary legal issue before the Commission was whether the conditions stipulated in section 240 of the Fair Work Act were satisfied. This involved assessing whether the changes in the business environment were substantial and whether the changes were necessary to achieve a better outcome for the employer and its employees. The Commission also had to consider the implications of terminating the agreement on the employees, including potential redundancy and the impact on their conditions of employment.

In delivering its decision, the Commission found that the changes in the business environment were indeed significant, particularly the financial strain experienced by Buehler Aged Care. The Commission concluded that the termination of the existing enterprise agreement was necessary to enable the company to achieve a more sustainable financial position. The Commission emphasised the importance of balancing the employer's need for flexibility with the protection of employees' rights and conditions. Ultimately, the application for termination was approved, leading to the termination of the Buehler Aged Care General Services Enterprise Agreement 2014.

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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