Compass Group Healthcare Hospitality Services Pty Ltd t/as Medirest Australia Summary

[2014] FWCA 2250

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement

Compass Group Healthcare Hospitality Services Pty Ltd t/as Medirest Australia
(AG2014/660)

COMPASS GROUP (MEDIREST QUEENSLAND) ENTERPRISE AGREEMENT 2014

Hospitality industry
DEPUTY PRESIDENT SAMS	SYDNEY, 7 APRIL 2014

Application for approval of the Compass Group (Medirest Queensland) Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Compass Group Healthcare Hospitality Services Pty Ltd t/as Medirest Australia (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Compass Group (Medirest Queensland) Enterprise Agreement 2014 (the ‘Agreement’). The Agreement is to cover 148 employees who provide hospitality and related services at a number of sites in Queensland, including at aged care facilities and hospital sites where the applicant is contracted to perform such services. It does not cover management employees. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 17 February 2014, and voting for the Agreement’s approval took place between 13-14 March 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, 122 of the 137 employees who voted, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 24 March 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms C Holmes, National Workplace Relations Manager, identified the following instruments as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’):

● Hospitality Industry (General) Award 2010 [MA000009];
● Cafe Restaurant and Catering Award - State (Excluding South-East Queensland) 2003 [AN140052];
● Contract Catering and Industrial Services Award - South-Eastern Division 2004 [AN140082];
● Award for Accommodation and Care Services Employees for Aged Persons - State (excluding South-East Queensland) 2004 [AN140018]; and
● Clerical Employees Award - State 2002 [AN140067].

[4] Ms Holmes said that the Agreement provides for a number of conditions that are in excess of, or are more beneficial than the terms of the relevant reference instruments and that there are no less beneficial terms. The Agreement provides for higher rates of pay and time off in lieu of overtime. It was also said that another benefit included the ability to cash out annual leave entitlements in certain circumstances. Rates of pay are to be adjusted in accordance with the Commission’s Minimum Wage Review decisions. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 7 and 8 respectively, and a disputes resolution procedure at clause 9 provides for conciliation and arbitration by the Commission.

[5] At a hearing of the application on 2 April 2014, Ms C Holmes appeared for the applicant. Ms Holmes outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. She explained that the rates in the Agreement were, on average, 1.75% higher than the rates in the Hospitality Industry (General) Award and 2.5% higher than the current Queensland transitional rates.

[6] Having heard the applicant’s submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Compass Group (Medirest Queensland) Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 9 April 2014 and have a nominal expiry date of 8 April 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The applicant, Compass Group Healthcare Hospitality Services Pty Ltd trading as Medirest Australia, sought approval of the Compass Group (Medirest Queensland) Enterprise Agreement 2014 from the Fair Work Commission. The dispute involved the terms and conditions of employment for employees working in the healthcare hospitality sector within Queensland. The applicant argued that the agreement provided fair and reasonable terms for both employees and the employer, while no other party contested the approval.

The primary legal issues the Fair Work Commission had to decide were whether the agreement met the statutory requirements under the Fair Work Act 2009 for an enterprise agreement and whether the agreement provided for fair and reasonable terms and conditions of employment. Specifically, the Commission examined whether the agreement was made in good faith and whether it included provisions that adequately protected the rights and interests of the employees.

In delivering its decision, the Fair Work Commission found that the agreement was made in good faith and that it contained terms and conditions that were fair and reasonable. The Commission noted that the agreement provided for appropriate protections for employees, including provisions for minimum wage rates, penalty rates, and other employment conditions. The Commission also considered the views of the employees and the employer, as well as any relevant industry benchmarks. As a result, the Fair Work Commission approved the Compass Group (Medirest Queensland) Enterprise Agreement 2014.

The Fair Work Commission's approval of the agreement means that it will now be legally binding on the parties and will govern the employment terms and conditions of the employees covered by the agreement. The approval ensures that the agreement provides fair and reasonable terms and conditions of employment, and that it meets the statutory requirements under the Fair Work Act 2009.

Compass Group Healthcare Hospitality Services Pty Ltd t/as Medirest Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established