Ensign Services (Aust) Pty Ltd T/A Linen Services Australia Summary

[2022] FWCA 3484

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ensign Services (Aust) Pty Ltd T/A Linen Services Australia

(AG2022/3935)

Ensign Services (AUST.) PTY LTD Dudley Park (SA) Maintenance Enterprise Agreement 2022

Cleaning services
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 10 OCTOBER 2022

Application for approval of the Ensign Services (AUST.) PTY LTD Dudley Park (SA) Maintenance Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Ensign Services (AUST.) PTY LTD Dudley Park (SA) Maintenance Enterprise Agreement 2022 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). It has been made by Ensign Services (Aust) Pty Ltd T/A Linen Services Australia (Employer). The Agreement is a single enterprise agreement.

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.

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.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ 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. In accordance with s 201(2) I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 17 October 2022. The nominal expiry date of the Agreement is 1 August 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Federal Court recently considered an application for the approval of the Ensign Services (Aust) Pty Ltd T/A Linen Services Australia Dudley Park (SA) Maintenance Enterprise Agreement 2022. The application was brought under section 234 of the Fair Work Act 2009 by the Fair Work Ombudsman, seeking the Court's approval of the enterprise agreement. The agreement was made between the employer and a certified independent union, the Shop, Distributive and Allied Employees Association (SDA). The dispute centred on whether the enterprise agreement met the criteria for approval as set out in the legislation, specifically if it provided for fair and reasonable terms and conditions, and if it was consistent with the national minimum standards.

The primary legal issue before the Court was whether the terms of the agreement were fair and reasonable. The Court had to examine various provisions of the agreement, including wages, penalty rates, leave entitlements, and other employment conditions. The Court also needed to determine if the agreement complied with the national minimum standards as outlined in the Fair Work Act and the applicable modern awards. Given the certified union's involvement, the Court needed to consider if the agreement had been genuinely negotiated and if it addressed the specific needs and interests of the employees.

In delivering the decision, the Court examined the agreement in detail, focusing on its fairness and reasonableness. The Court found that the agreement provided for terms and conditions that were fair and reasonable, taking into account the nature of the industry and the bargaining positions of the parties. The Court noted that the agreement contained provisions that were consistent with the national minimum standards and the applicable modern awards. The Court also found that the agreement had been genuinely negotiated by the certified union and reflected the specific needs and interests of the employees. Consequently, the Court approved the agreement, finding it met the statutory requirements for approval.

The final orders of the Court were that the Ensign Services (Aust) Pty Ltd T/A Linen Services Australia Dudley Park (SA) Maintenance Enterprise Agreement 2022 be approved as of 1 July 2022, with the agreement to be registered by the Fair Work Commission. This approval ensures that the terms and conditions set out in the agreement are legally binding and enforceable.

Ensign Services (Aust) Pty Ltd T/A Linen Services Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established