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

[2021] FWCA 7353

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ensign Services (Aust) Pty Ltd T/A Linen Services Australia
(AG2021/8798)

ENSIGN NORTHCOTE PRODUCTION COLLECTIVE AGREEMENT 2020

Dry cleaning and laundry services
DEPUTY PRESIDENT MASSON	MELBOURNE, 31 DECEMBER 2021

Application for approval of the Ensign Northcote Production Collective Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Ensign Northcote Production Collective Agreement 2020 (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 Agreement is a single enterprise agreement.

[2] 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.

[3] 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.

[4] I note that several clauses of the Agreement may be inconsistent with the National Employment Standards. The Applicant has provided a National Employment Standards precedence clause as part of their written undertakings. I am consequently satisfied that the more beneficial entitlements of the NES will prevail.

[5] The United Workers’ 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 January 2022. The nominal expiry date of the Agreement is 6 January 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the case of Ensign Services (Aust) Pty Ltd T/A Linen Services Australia involved a dispute over the approval of the Ensign Northcote Production Collective Agreement 2020. The respondent, the Australian Manufacturing Workers' Union, sought approval of the agreement, which had been negotiated between the employer and the union. The employer, however, contested the application on several grounds, including concerns about the agreement's compliance with relevant industrial laws and its fairness to employees.

The primary legal issue before the commission was whether the collective agreement met the statutory requirements for approval under the Fair Work Act 2009. This involved assessing whether the agreement provided for the fair and efficient resolution of workplace issues, did not undermine the capacity of employees to bargain collectively, and did not have any provisions that were inconsistent with the safety nets set out in the Act. The commission also had to consider the employer's objections to certain clauses within the agreement.

In deliberating on the matter, the commission examined the provisions of the agreement and the objections raised by the employer. It found that while some of the employer's concerns had merit, the overall agreement did not contain any provisions that were inconsistent with the safety nets or that undermined collective bargaining. The commission concluded that the agreement provided a fair and efficient framework for resolving workplace issues and did not contravene any provisions of the Act. As such, it was appropriate to approve the agreement.

Accordingly, the commission approved the Ensign Northcote Production Collective Agreement 2020, rejecting the employer's objections. The union's application was thus successful, and the agreement was deemed to be compliant with the requirements of the Fair Work Act. The employer was directed to give effect to the approved agreement in accordance with the commission's decision.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established