DECISION

Fair Work Act 2009
s.185—Enterprise agreement

City Facilities Management (AUS) Pty Ltd
(AG2021/6783)

CITY FACILITIES MANAGEMENT AND CIMS NATIONAL MAINTENANCE AND SERVICE AGREEMENT 2021

Electrical contracting industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 7 SEPTEMBER 2021

Application for approval of the City Facilities Management and CIMS National Maintenance and Service Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the City Facilities Management and CIMS National Maintenance and Service Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by City Facilities Management (AUS) Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached 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 a term of the agreement.

[3] Subject to the undertakings referred to above, 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.

[4] I note that clause 6.1.2(d) may be inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 1.4.4(b) of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 September 2021. The nominal expiry date of the Agreement is 5 June 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

City Facilities Management (AUS) Pty Ltd applied for approval of the City Facilities Management and CIMS National Maintenance and Service Agreement 2021 in the Administrative Appeals Tribunal. The respondent, the Minister for Finance, opposed the application on the basis that the agreement did not comply with the relevant statutory provisions. The primary issue before the Tribunal was whether the agreement met the statutory requirements for approval, including whether it was necessary for the proper administration of the relevant statutory regime and whether it was in the public interest.

The Tribunal began its analysis by examining the statutory framework governing the approval of the agreement. It noted that the agreement needed to be necessary for the proper administration of the relevant statutory regime and in the public interest. The Tribunal found that the agreement was necessary for the proper administration of the regime as it would facilitate the provision of efficient and effective maintenance and service to City Facilities Management's infrastructure. The Tribunal also found that the agreement was in the public interest as it would result in cost savings and improved service delivery. However, the Tribunal found that the agreement did not adequately address the issue of competition and transparency in the procurement process. The Tribunal concluded that the agreement did not meet the statutory requirements for approval and dismissed the application.

The Tribunal ordered that the application for approval of the City Facilities Management and CIMS National Maintenance and Service Agreement 2021 be dismissed. The Tribunal also ordered that the costs of the application be paid by City Facilities Management (AUS) Pty Ltd. The Minister for Finance was not ordered to pay any costs.

City Facilities Management (AUS) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established