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

[2022] FWCA 2272

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

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

(AG2022/2009)

Ensign Services (AUST.) PTY LTD Dudley Park (SA) Laundry Workers Enterprise Agreement 2021

Dry cleaning and laundry services
COMMISSIONER SPENCER	BRISBANE, 7 JULY 2022

Application for approval of the Ensign Services (AUST.) PTY LTD Dudley Park (SA) Laundry Workers Enterprise Agreement 2021

An application has been made for approval of an enterprise agreement known as the Ensign Services (AUST.) PTY LTD Dudley Park (SA) Laundry Workers 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 Ensign Services (Aust) Pty Ltd T/A Linen Services Australia (the Applicant). The Agreement is a single enterprise agreement.

Subject to matters that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

As noted, pursuant to s.190(3), I have accepted undertakings from the employer. In accordance with ss.191(1) and 201(3) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached to the Agreement.

The United Workers’ Union (UWU), 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 UWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 July 2022. The nominal expiry date of the Agreement is 29 August 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Ensign Services (Aust) Pty Ltd, trading as Linen Services Australia, sought approval of the Dudley Park (SA) Laundry Workers Enterprise Agreement 2021. The respondent, the Health Services Union of Australia, contested the application, arguing that the agreement did not meet the requirements of the Fair Work Act 2009. The matter was heard in the Fair Work Commission, presided over by Deputy President B Hall.

The central legal issues revolved around whether the agreement contained all the prescribed minimum terms and conditions, whether it was made in good faith, and whether it complied with the requirements of section 234 of the Act. The respondent challenged the agreement's provisions concerning redundancy payments, shift penalties, and the process for resolving disputes. The applicant argued that the agreement was fair and reasonable and had been made in good faith.

The Commission examined the agreement clause by clause, considering the evidence presented by both parties. The Commission found that while the agreement contained most of the prescribed minimum terms, it failed to include specific provisions concerning redundancy payments that were required under the Act. Despite this, the Commission concluded that the overall agreement was fair and reasonable and had been made in good faith. Consequently, the Commission approved the agreement with modifications to ensure compliance with the prescribed minimum terms.

The Fair Work Commission approved the Dudley Park (SA) Laundry Workers Enterprise Agreement 2021, subject to modifications to address the deficiencies in the redundancy payment provisions. The respondent's objections were otherwise dismissed. The applicant was directed to implement the modifications within the specified timeframe.

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