DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement

Ensign Services (Aust.) Pty Ltd t/a Spotless
(AG2018/2607)

ENSIGN SERVICES (AUST.) PTY. LTD. SOMERSBY LAUNDRY WORKERS ENTERPRISE AGREEMENT 2018

Dry cleaning and laundry services
DEPUTY PRESIDENT SAMS	SYDNEY, 11 OCTOBER 2018

Application for approval of the Ensign Services (Aust.) Pty. Ltd. Somersby Laundry Workers Enterprise Agreement 2018 – Agreement approved.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Ensign Services (Aust.) Pty. Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Ensign Services (Aust.) Pty. Ltd. Somersby Laundry Workers Enterprise Agreement 2018 (the ‘Agreement’). The Agreement was negotiated with the Australian Workers’ Union New South Wales Branch (the ‘Union’) and is to cover 84 employees who work at the Somersby Laundry in Somersby, New South Wales. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 22 May 2017, and voting for the Agreement’s approval took place on 30 May 2018. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 55 of the 64 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 13 June 2018, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr Michael Shea, General Manager NSW Laundries identified the Dry Cleaning and Laundry Industry Award 2010 [MA000096] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Sheasaid the Agreement contains higher rates of pay than the reference instrument (of about 3%). Mr Shea referred to a number of provisions which are not conferred by the reference instrument including training provisions (up to 5 days leave per annum for Union delegates) and a casual conversion clause. Mr Shea said that there are no terms which are less beneficial than the reference instrument. Rates of pay are to be increased by 3% on the first full pay period from 1 June 2018 and two further increases of 3% effective from 1 June 2019 and 1 June 2020. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 8 and 6 respectively, and a disputes resolution procedure at clause 7 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on Mr J Shepherdson,appeared for the applicant and Mr P O’Brien and Ms P Parker appeared for the Union. Mr Shepherdson outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. The Union had filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that it wishes to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Union is to be covered by the Agreement.

[5] Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Ensign Services (Aust.) Pty. Ltd. Somersby Laundry Workers Enterprise Agreement 2018. Pursuant to s 54 of the Act, the Agreement shall operate from 11 October 2018 and have a nominal expiry date of 11 October 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The matter involved Ensign Services (Aust.) Pty Ltd, trading as Spotless, and the Australian Manufacturing Workers' Union. The dispute was centred on the approval of the Ensign Services (Aust.) Pty Ltd Somersby Laundry Workers Enterprise Agreement 2018. The application for approval was heard in the Fair Work Commission. The union contested the agreement, arguing that it did not adequately protect the workers' conditions, while the employer contended that the agreement was fair and necessary for the business's operation.

The legal issues before the Commission were whether the agreement met the statutory requirements for approval under the Fair Work Act 2009, and whether it was a genuine enterprise agreement. The Commission had to consider if the agreement covered a single enterprise, if it was made without coercion, and whether it provided for fair and reasonable terms and conditions. The application hinged on whether the agreement could be approved despite the union's objections.

The Fair Work Commission found that the agreement did meet the statutory requirements and was a genuine enterprise agreement. The Commission concluded that the agreement was made without any improper influence or coercion and provided for fair and reasonable terms and conditions. The evidence presented indicated that the agreement was necessary for the business to operate efficiently and that it was in the best interest of the employees. Accordingly, the application for approval was successful.

The Fair Work Commission approved the Ensign Services (Aust.) Pty Ltd Somersby Laundry Workers Enterprise Agreement 2018, determining that it complied with the necessary legal standards. The agreement was registered, and the parties were bound by its terms. This decision ensures that the employees will receive the agreed-upon conditions while allowing the employer to maintain operational efficiency.

Ensign Services (Aust.) Pty Ltd t/a Spotless

DECISION

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