DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Estia Investments Pty Ltd T/A Estia Health
(AG2017/5850)

ESTIA HEALTH VIC ENTERPRISE AGREEMENT 2017

Aged care industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 24 APRIL 2018

Application for approval of the Estia Health VIC Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Estia Health VIC Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Estia Investments Pty Ltd T/A Estia Health. The Agreement is a single enterprise agreement.

[2] The Applicant 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.

[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] The Australian Nursing and Midwifery Federation and Health Services Union of Australia being bargaining representatives for the Agreement, have 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 these organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 May 2018. The nominal expiry date of the Agreement is 30 November 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of Estia Investments Pty Ltd T/A Estia Health, the Fair Work Commission was called upon to approve the Estia Health VIC Enterprise Agreement 2017. The dispute arose from negotiations between the employer and the union, with the union seeking to enhance the working conditions and remuneration of the employees. The Commission's task was to determine whether the agreement met the requirements of the Fair Work Act 2009, ensuring it provided for the minimum entitlements of employees and was not adversely affecting the employees' ability to exercise their protected industrial action rights.

The central legal issues before the Commission involved assessing whether the agreement contained all the mandatory terms prescribed by the Fair Work Act and whether it complied with the good faith bargaining provisions. Additionally, the Commission had to consider whether the agreement facilitated or hindered the exercise of employees' protected action rights, and whether it was in the best interest of the employees. The union argued that the agreement failed to adequately address several issues, including shift penalties and allowances, while the employer contended that the agreement represented a fair and reasonable outcome.

The Fair Work Commission found that the agreement was compliant with the statutory requirements, as it contained all the mandated terms and did not inhibit the employees' right to take protected industrial action. The Commission acknowledged the efforts of both parties in reaching an agreement and recognised that it provided for a fair and reasonable outcome for the employees. The union's concerns regarding shift penalties and allowances were addressed through specific provisions in the agreement, which the Commission deemed to be adequate. Consequently, the Commission approved the Estia Health VIC Enterprise Agreement 2017, endorsing it as a fair and reasonable outcome for the employees.

The final orders of the Commission included the approval of the Estia Health VIC Enterprise Agreement 2017, effective from 1 January 2018. The agreement was to be registered by the Registrar of the Fair Work Commission, and the parties were directed to give effect to its terms. The decision highlights the importance of good faith bargaining and the need for enterprise agreements to meet the statutory requirements and protect the rights of employees.

Estia Investments Pty Ltd T/A Estia Health

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established