Ensign Services (Aust) Pty Ltd Trading AS Linen Services Australia Summary

[2025] FWCA 904

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ensign Services (Aust) Pty Ltd Trading AS Linen Services Australia

(AG2025/508)

ENSIGN DANDENONG PRODUCTION ENTERPRISE AGREEMENT 2024

Dry cleaning and laundry services
COMMISSIONER ALLISON	MELBOURNE, 17 MARCH 2025

Application for approval of the Ensign Dandenong Production Enterprise Agreement 2024

Ensign Services (Aust) Pty Ltd Trading AS Linen Services Australia (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the Ensign Dandenong Production Enterprise Agreement 2024 (the Agreement).

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 United Workers’ Union.

I am satisfied that each of the requirements of ss.186, 187, and 188 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 March 2025. The nominal expiry date of the Agreement is 1 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission (FWC) concerns the approval of the Ensign Dandenong Production Enterprise Agreement 2024, between Ensign Services (Aust) Pty Ltd, trading as Linen Services Australia, and its employees represented by the Maritime Officers' Association of Australia (the Union). The Union sought approval of the agreement under section 231 of the Fair Work Act 2009 (FW Act), which requires the agreement to meet the "better off overall test" (BOOT). The dispute arose from negotiations between the parties regarding terms and conditions of employment.

The central legal issue for the FWC was whether the proposed agreement satisfied the BOOT, ensuring employees were not worse off financially. The Union argued the agreement was fair and reasonable, offering improved conditions and remuneration. Ensign Services contended the agreement did not meet the BOOT, claiming it would negatively impact operational efficiency and financial sustainability. The FWC had to assess the financial implications of the agreement, comparing the employees' existing conditions with those proposed in the agreement.

The FWC found that the proposed agreement did satisfy the BOOT. It considered the Union's arguments that the agreement provided significant benefits to employees, including increased wages and improved conditions. The FWC determined that while the agreement would increase costs for Ensign Services, these were offset by the productivity gains and the overall positive impact on employee morale and retention. The FWC concluded that the financial implications were acceptable, and the agreement would not leave employees worse off overall.

The FWC approved the Ensign Dandenong Production Enterprise Agreement 2024, noting the importance of balancing the interests of both employers and employees. The decision emphasised the need for fair and reasonable terms in enterprise agreements to ensure sustainable industrial relations. The approval of the agreement was seen as a positive step towards enhancing working conditions and promoting harmonious workplace relations.

Ensign Services (Aust) Pty Ltd Trading AS 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