Calvary Private Health Care Canberra Limited T/A Calvary John James Hospital

[2025] FWCA 636

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.218A - application to vary an agreement to correct or amend errors, defects or irregularities

Calvary Private Health Care Canberra Limited T/A Calvary John James Hospital

(AG2025/271)

CALVARY HEALTH CARE – JOHN JAMES PRIVATE HOSPITAL – NURSES AND MIDWIVES ENTERPRISE AGREEMENT 2024 – 2026.

Health and welfare services
COMMISSIONER MCKINNON	SYDNEY, 18 FEBRUARY 2025

Application for variation of the Calvary Health Care – John James Private Hospital – Nurses and Midwives Enterprise Agreement 2024 – 2026.

Calvary Private Health Care Canberra Limited T/A Calvary John James Hospital (“Calvary”) has applied to vary the table in clause A.1.2 of Schedule A to the Calvary Health Care – John James Private Hospital – Nurses and Midwives Enterprise Agreement 2024 – 2026[1] (the Agreement) to correct calculation errors. The proposed variations are set out in Annexure A to this Decision. The Australian Nursing and Midwifery Federation does not object to the application.

On the materials, I find clause A.1.2 of Schedule A to the Agreement to be affected by obvious errors in relation to the amounts specified for:

a.In Charge Allowance – RN in Charge of Ward
b.In Charge Allowance – Operating Theatre Manager
c.On-Call & Disturbance Allowances, and
d.Qualification Allowances.

The Agreement will be varied to correct the errors under section 218A of the Fair Work Act 2009. The variation will give effect to the agreement reached between the parties and is necessary to provide certainty about the amount of each allowance in clause A.1.2 of the Agreement.

The variation will operate retrospectively from the date the Agreement commenced operation, being 17 December 2024. A consolidated version of the Agreement as varied is attached to this Decision.

COMMISSIONER

Annexure A

[1] AE526960; [2024] FWCA 4195.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Calvary Private Health Care Canberra Limited, trading as Calvary John James Hospital, brought an application before the Fair Work Commission for a variation to the Calvary Health Care – John James Private Hospital – Nurses and Midwives Enterprise Agreement 2024 – 2026. The hospital sought to implement changes to the agreement to address financial sustainability and operational efficiency concerns, arguing that the current terms placed undue financial strain on the institution.

The legal issues central to the application involved whether the proposed changes were necessary to ensure the financial viability of the hospital and whether the changes were in line with the Fair Work Act 2009. Specifically, the hospital argued that the variations were required to address a significant budget shortfall and to align with industry standards for remuneration and conditions. The union representing the nurses and midwives contested these claims, asserting that the changes would undermine the existing agreement terms, negatively impacting the employees' working conditions and entitlements.

The Commission considered the evidence presented by both parties, including financial data, industry benchmarks, and submissions on the impact of the proposed changes. The Commission found that the hospital had demonstrated a genuine need for the variations to address critical financial challenges. It was also satisfied that the changes proposed were reasonable and necessary to maintain the hospital's financial stability while ensuring that the employees' entitlements were not unfairly diminished. Consequently, the Commission approved the application, allowing the hospital to implement the proposed variations.

The Fair Work Commission ordered the variation of the Calvary Health Care – John James Private Hospital – Nurses and Midwives Enterprise Agreement 2024 – 2026 to reflect the changes sought by Calvary Private Health Care Canberra Limited. The decision was made effective immediately, with the new terms to apply from the date of the Commission's decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established