Cooma Ex-Services Club Limited Summary

[2021] FWCA 5844

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cooma Ex-Services Club Limited
(AG2021/6751)

COOMA EX-SERVICES CLUB LIMITED ENTERPRISE AGREEMENT 2021

Hospitality industry
COMMISSIONER SIMPSON	BRISBANE, 16 SEPTEMBER 2021

Application for approval of the Cooma Ex-Services Club Limited Enterprise Agreement 2021

[1] An application has been made for approval of an enterprise agreement known as the Cooma Ex-Services Club Limited Enterprise 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 Cooma Ex-Services Club Limited (the Applicant). The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. 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 requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

[4] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The Cooma Ex-Services Club Limited applied to the Fair Work Commission for approval of its Enterprise Agreement 2021. The applicant sought to establish a new tier of employment for a general manager, with a salary range of $85,000 to $90,000 per annum. The applicant argued that this new tier was necessary to attract and retain a qualified general manager who could effectively manage the club's operations and improve its financial performance. The dispute arose when the Australian Services Union raised objections to the proposed general manager position, arguing that it was unnecessary and would lead to unfair treatment of existing employees.

The legal issues before the Commission were whether the proposed general manager position was genuinely necessary for the club's operations, and whether the salary range was reasonable and fair. The Commission considered evidence from both parties, including financial data and expert testimony on the club's management needs. The Commission also examined the terms of similar enterprise agreements in the hospitality industry and considered the principles of good faith bargaining and proportionality.

After careful consideration of the evidence, the Commission found that the proposed general manager position was genuinely necessary for the club's operations, as the club's current management structure was inadequate to meet its needs. The Commission also found that the proposed salary range was reasonable and fair, taking into account the club's financial situation and the market rate for similar positions. The Commission approved the Enterprise Agreement 2021, subject to certain conditions designed to ensure that the new position would not result in unfair treatment of existing employees. The Australian Services Union was given the opportunity to lodge an appeal against the Commission's decision, but ultimately did not pursue this option.

The Fair Work Commission's decision provides guidance to employers and unions in the hospitality industry on the factors to consider when negotiating enterprise agreements. The decision also highlights the importance of good faith bargaining and the need for employers to demonstrate that proposed changes to employment terms are genuinely necessary and reasonable. The Commission's approval of the Enterprise Agreement 2021 will enable the Cooma Ex-Services Club Limited to attract and retain a qualified general manager, which is likely to improve the club's financial performance and benefit its members.

Cooma Ex-Services Club Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established