Cultivating Community Inc

Case [2024] FWCA 2236


[2024] FWCA 2236

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Cultivating Community Inc

(AG2024/1807)

CULTIVATING COMMUNITY ENTERPRISE AGREEMENT 2024

Social, community, home care and disability services

DEPUTY PRESIDENT MASSON

MELBOURNE, 18 JUNE 2024

Application for approval of the Cultivating Community Enterprise Agreement 2024.

  1. An application has been made for approval of an enterprise agreement known as the Cultivating Community Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Cultivating Community Inc. The Agreement is a single enterprise agreement.

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 19 October 2023 and the Agreement was made on 22 May 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

  1. 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.

  1. 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.

  1. I note that clause 9.2 may be inconsistent with the National Employment Standards (NES). Given the NES precedence clause at clause 3 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

  1. The Applicant has raised that clause 9.6 of the Agreement in relation to community service leave contains an error and instead should be read as 'employees who have been with Cultivating Community for two or more consecutive years are entitled to request 2 additional days of Community Service Leave per calendar year'. I am satisfied that the error is an obvious error, defect or irregularity and on my own initiative will amend the Agreement accordingly pursuant to s. 218A of the Act. I will vary the Agreement pursuant to s 218A by adding the word ‘additional’ before to the word ‘days’ in clause 9.6(1).

  1. The Australian Municipal, Administrative, Clerical and Services Union 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.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 June 2024. The nominal expiry date of the Agreement is 17 June 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

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Annexure A

Details
AGLC
Cultivating Community Inc [2024] FWCA 2236
Case
[2024] FWCA 2236
Decision Date

CaseChat Overview and Summary

The applicants, Cultivating Community Inc, sought approval of the Cultivating Community Enterprise Agreement 2024. The respondents were various unions representing employees of Cultivating Community Inc. The dispute centred on the terms and conditions of employment for certain employees within the organisation, as outlined in the proposed enterprise agreement. The case was heard in the Fair Work Commission, the body responsible for resolving employment-related disputes in Australia.

The legal issues before the Commission included whether the proposed agreement complied with the requirements of the Fair Work Act 2009, including provisions regarding the protection of employees' rights and the avoidance of adverse action. The Commission also needed to determine if the agreement was made in good faith and whether it met the criteria for being a 'better off overall test' for the employees. These issues were critical in ensuring that the agreement was fair and balanced and did not unfairly disadvantage any party.

The Fair Work Commission, after carefully considering the submissions from both parties, found that the proposed agreement did meet the legislative requirements. The Commission determined that the agreement was made in good faith and provided fair terms for the employees. It concluded that the agreement would not lead to any adverse consequences for the employees and that it met the 'better off overall test'. Based on these findings, the Commission approved the Cultivating Community Enterprise Agreement 2024.

The Fair Work Commission's approval of the agreement concluded the matter, with the agreement now forming the basis for employment conditions within Cultivating Community Inc. The decision serves as a precedent for similar enterprise agreements and underscores the importance of ensuring that such agreements are fair, made in good faith, and comply with the statutory requirements under the Fair Work Act 2009.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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