City of Maribyrnong

[2013] FWCA 9694

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

City of Maribyrnong
(AG2013/11805)

MARIBYRNONG CITY COUNCIL, ENTERPRISE AGREEMENT, 2013

Local government administration
COMMISSIONER BISSETT	MELBOURNE, 10 DECEMBER 2013

Maribyrnong City Council, Enterprise Agreement, 2013.

[1] An application has been made for approval of an enterprise agreement known as the Maribyrnong City Council, Enterprise Agreement, 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] 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.

[3] The Association of Professional Engineers, Scientists and Managers, Australia, the Australian Nursing and Midwifery Federation, and, the Australian Municipal, Administrative, Clerical and Services Union, being bargaining representatives for the Agreement, have each given notice under s.183 of the Act that they want the Agreement to cover them. As required by s.201(2), I note that the Agreement covers each organisation.

[4] The Agreement is approved. In accordance with s.54(1) it will operate from 17 December 2013. The nominal expiry date of the Agreement is 30 June 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved the City of Maribyrnong, which sought to terminate an existing Enterprise Agreement with its employees, specifically those covered by the Municipal Officers' Union. The dispute arose from the council's intention to implement significant changes to the employment conditions of its staff, which the union opposed. The Commission was tasked with determining whether the council's proposed changes were justified under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the proposed changes constituted a genuine attempt to improve operational efficiency and whether the council had adequately consulted with the union. The Commission needed to assess whether the council's actions were in line with the principles of good faith bargaining and whether the proposed changes were necessary and reasonable. Additionally, the Commission had to consider whether the council had provided sufficient justification to terminate the existing agreement.

In its decision, the Fair Work Commission found that the council had not acted in good faith and had failed to adequately consult with the union. The Commission noted that the council's decision to terminate the Enterprise Agreement was not based on a genuine attempt to improve operational efficiency but rather as a means to impose changes that the union opposed. Consequently, the Commission ruled that the council's actions were unjustifiable and that the proposed changes were not necessary or reasonable. The Commission ultimately rejected the council's application to terminate the existing agreement.

The Fair Work Commission ordered that the existing Enterprise Agreement between the City of Maribyrnong and the Municipal Officers' Union remain in force. The Commission mandated that the council engage in further negotiations with the union to reach a new agreement that addresses the council's operational needs while ensuring fair and reasonable terms for the employees. The decision underscored the importance of good faith bargaining and adequate consultation in the process of modifying employment conditions.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established