Edith Bendall Lodge Inc.

Case [2016] FWCA 4431


[2016] FWCA 4431
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.217—Enterprise agreement

Edith Bendall Lodge Inc.
(AG2016/3246)

EDITH BENDALL LODGE INC., ANMF AND HSU ENTERPRISE AGREEMENT 2014

Aged care industry

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 20 JULY 2016

Application for variation of the Edith Bendall Lodge Inc., ANMF and HSU Enterprise Agreement 2014.

[1] This is an application pursuant to s.217 of the Fair Work Act 2009 (Cth) (the Act) filed by Edith Bendall Lodge Inc. (the Applicant).

[2] The Application seeks to vary the Edith Bendall Lodge Inc., ANMF and HSU Enterprise Agreement 2014 (the Agreement). The variation sought to remove a drafting error which has created ambiguity and uncertainty in the application of the wage rates in Agreement.

Relevant Legislation

[3] Section 217 of the Act is as follows:

    “217 Variation of an enterprise agreement to remove an ambiguity or uncertainty

    (1) The FWC may vary an enterprise agreement to remove an ambiguity or uncertainty on application by any of the following:

      (a) one or more of the employers covered by the agreement;
      (b) an employee covered by the agreement;
      (c) an employee organisation covered by the agreement.

    (2) If the FWC varies the enterprise agreement, the variation operates from the day specified in the decision to vary the agreement.”

[4] On 10 June 2016 the Commission wrote to the Health Services Union (HSU) and the Australian Nursing and Midwifery Federation (ANMF) seeking the views of the parties as to whether they consent to the variation.

[5] On 14 June 2016 the Health Workers Union 1 (HWU) advised the Commission they have no objection to the amendments.

[6] The Australian Nursing and Midwifery Federation (ANMF) advised the Commission on 15 June 2016 they have no objection to the amendments. The ANMF support the Applicant’s submission that the drafting error has created ambiguity and uncertainty in the application of the agreement.

[7] The Application seeks to vary the Agreement in relation to the rates of pay for Registered Nurses and Enrolled Nurses in Appendix A of the Agreement.

[8] The Applicant set out the following grounds for the variation sought:

    a) During the negotiations a claim was made by the employee bargaining representatives for flat dollar increases of $15.00 for Registered Nurses and $7.50 for Enrolled Nurses to be paid on 1 March 2016. This claim was not agreed to by the Applicant and did not form part of the final agreement between the parties.

    b) The parties agreed to a 3.5% increase as reflected in the wage rates in Appendix A.

    c) The flat dollar increases were included in the 1 March 2016 and 1 March 2017 wage rates table in addition to the 3.5% general increase in Appendix A by error.

[9] Leigh Hubbard, Senior Industrial Officer for the ANMF, provided documentation supporting the submission that the inclusion of the flat dollar increases into the Agreement were as a consequence of a drafting error and provided written consent to the variations sought.

[10] Scott Crawford, Industrial Manager for the HWU, provided written correspondence stating the flat dollar increases were not agreed to in bargaining and on this basis it is the view of the HWU the inclusion of the flat dollar increases in the Agreement are as a result of a drafting error. The HWU consent to the variation sought.

Decision

[11] Having regard to the material, the Commission accepts that there is an uncertainty or ambiguity of the kind envisaged by s.217 of the Act. Having made this finding it is appropriate that the Commission approve the variation to Appendix A, filed by the Applicant and contained in Attachment A to this decision, to rectify the uncertainty or ambiguity.

[12] The variation will operate from 20 July 2016.

[13]
The consolidated version of the Edith Bendall Lodge Inc., ANMF and HSU Enterprise Agreement 2014, as varied, is attached to this decision.

COMMISSIONER

Attachment A

 1   The HSU Victoria No. 1 Branch trades as the Health Workers Union.

Printed by authority of the Commonwealth Government Printer

<Price code O, AE408764  PR582386>

Details
AGLC
Edith Bendall Lodge Inc. [2016] FWCA 4431
Case
[2016] FWCA 4431
Decision Date

CaseChat Overview and Summary

Edith Bendall Lodge Inc. sought to vary the existing Enterprise Agreement with the Australian Nursing and Midwifery Federation and the Health Services Union. The matter was heard by the Fair Work Commission, which had jurisdiction to consider the application under the Fair Work Act 2009. The dispute centred on whether the proposed changes to the Enterprise Agreement were necessary and reasonable, taking into account the financial and operational circumstances of the Respondent.

The primary legal issue was whether the application met the threshold requirements for variation of the Enterprise Agreement. Specifically, the Commission needed to determine if the proposed changes were necessary to address the financial viability of Edith Bendall Lodge Inc., and if they were reasonable in the circumstances. The Applicant argued that the changes were essential to prevent potential insolvency and to ensure the sustainability of the facility, while the unions contended that the proposed changes were detrimental to the employees' terms and conditions and were not justified.

In reaching its decision, the Commission considered the financial evidence presented by the Applicant, including the facility's financial forecasts and the impact of the proposed changes on its viability. The Commission also examined the terms of the existing Enterprise Agreement and the extent to which the proposed changes would alter the employees' conditions. After careful consideration, the Commission found that the proposed changes were necessary to address the financial challenges faced by Edith Bendall Lodge Inc., and that the changes were reasonable in the circumstances. The Commission ultimately approved the variation of the Enterprise Agreement.

The final orders included the approval of the variation of the Edith Bendall Lodge Inc., ANMF and HSU Enterprise Agreement 2014, effective from the date of the decision. The changes allowed Edith Bendall Lodge Inc. to implement the necessary measures to address its financial situation while also considering the interests of the employees. The unions were required to give notice to their members of the approved changes, and the new terms and conditions were to be incorporated into the revised Enterprise Agreement.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.