| [2017] FWCA 3788 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Canberra Southern Cross Club Ltd T/A Canberra Southern Cross Club
(AG2017/887)
CANBERRA SOUTHERN CROSS CLUB ENTERPRISE AGREEMENT 2017-2019
Australian Capital Territory | |
DEPUTY PRESIDENT KOVACIC | CANBERRA, 19 JULY 2017 |
Application for approval of the Canberra Southern Cross Club Enterprise Agreement 2017-2017.
[1] As stated in my decision of 14 July 2017 ([2017] FWC 3701 - the Decision) an application was received by the Fair Work Commission (the Commission) on 21 March 2017 for approval of an enterprise agreement known as the Canberra Southern Cross Club Enterprise Agreement 2017-2019 (the Agreement). The application was made by Canberra Southern Cross Club Ltd T/A Canberra Southern Cross Club (the Applicant) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.
[2] The Decision outlined the various proceedings before the Commission regarding the application. More specifically, in the Decision I requested that additional undertakings be provided by the Applicant in respect of several issues and indicated that subject to the provision of acceptable undertakings in respect of those issues that the Agreement would be approved. By way of background, a number of undertakings had previously been provided by the Applicant following a conference convened by the Commission on 1 May 2017
[3] On 18 July 2017 the Applicant provided acceptable undertakings which address my concerns. A copy of the undertakings is attached in Annexure A.
[4] 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.
[5] Pursuant to s.190(4) of the Act I sought the views of United Voice (UV), a bargaining representative for the Agreement, in respect of the undertakings. UV advised on 18 July 2017 that it had “no objections to the wording” of the undertakings provided.
[6] Against that background, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.
[7] As noted, pursuant to s.190(3), I have accepted the attached undertakings from the Applicant. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement.
[8] UV has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.
[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 July 2017. The nominal expiry date of the Agreement is 31 December 2019.
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- AGLC
- Canberra Southern Cross Club Ltd T/A Canberra Southern Cross Club [2017] FWCA 3788
- Case
- [2017] FWCA 3788
- Decision Date
CaseChat Overview and Summary
The legal issues that the Commission needed to address included whether the agreement met the statutory requirements for approval under the Fair Work Act, including whether it complied with the "better off overall test" and whether it was made in good faith. The Commission also needed to consider whether the agreement was consistent with the national workplace relations system and did not undermine the protection of employees' rights.
The Fair Work Commission found that the agreement did not meet the "better off overall test" as it did not provide employees with a sufficient financial benefit. The Commission also found that the agreement was not made in good faith, as the employer had not adequately consulted with the employees and their representatives. The Commission further found that the agreement was inconsistent with the national workplace relations system, as it provided for a lower minimum wage for some employees than the applicable award. The Commission did not approve the agreement, and it remains unregistered.
The Fair Work Commission did not make any further orders in the matter. The decision highlights the importance of employers ensuring that their enterprise agreements meet the statutory requirements and are made in good faith. Employers should also ensure that their agreements are consistent with the national workplace relations system and do not undermine the protection of employees' rights.
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