DECISION

Fair Work Act 2009
s.185—Enterprise agreement

City Facilities Management (Aus) Pty Ltd
(AG2018/5445)

CITY FACILITIES MANAGEMENT (AUS) PTY LTD FACILITIES MANAGEMENT SERVICES AGREEMENT 2018-2022

Plumbing industry
COMMISSIONER CIRKOVIC	MELBOURNE, 20 MARCH 2019

Application for approval of the City Facilities Management (Aus) Pty Ltd Facilities Maintenance Services Agreement 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the City Facilities Management (Aus) Pty Ltd Facilities Maintenance Services Agreement 2018-2022 (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.

[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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement was approved on 20 March 2019 and, in accordance with s.54, will operate from 27 March 2019. The nominal expiry date of the Agreement is 1 September 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The parties in this case were City Facilities Management (Aus) Pty Ltd and the council of the City of Port Phillip. The dispute involved the approval of the Facilities Maintenance Services Agreement between the parties for the period 2018-2022. The case was heard in the Supreme Court of Victoria. The council sought to approve the agreement, which would involve the company providing various maintenance services to the city, including cleaning, landscaping, and minor works. The company argued that the agreement was fair and reasonable, while the council questioned the pricing structure and sought adjustments to ensure better value for the city.

The legal issues the court was required to decide centered on whether the agreement was fair and reasonable, as required by the relevant legislation. The court had to consider the pricing structure, the scope of services, and whether the agreement provided value for money for the council. The court also needed to determine whether any adjustments to the agreement were necessary to ensure fairness and reasonableness, and if so, what those adjustments should be.

The court examined the agreement in detail, considering the pricing structure, the services provided, and the overall value for money. The court found that while the agreement was generally fair and reasonable, certain adjustments were necessary to better align the pricing with the services provided. The court highlighted that the agreement should be adjusted to ensure that the council received value for money, particularly in areas where the pricing did not accurately reflect the cost of providing the services. The court concluded that the agreement, with the recommended adjustments, was fair and reasonable and should be approved.

The final orders of the court were that the agreement, with the specified adjustments, was approved. The court mandated that the council and the company implement the necessary changes to the agreement to ensure it was fair and reasonable and provided value for money. The court also directed the parties to review the agreement periodically to ensure ongoing fairness and reasonableness.

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