Fairclough Food Pty Ltd t/as Quattro Corporate

Case [2014] FWCA 7793


[2014] FWCA 7793
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s 185 - Application for approval of a single-enterprise agreement

Fairclough Food Pty Ltd t/as Quattro Corporate
(AG2014/7895)

FAIRCLOUGH FOOD PTY LTD TRADING AS QUATTRO CORPORATE ENTERPRISE AGREEMENT 2014

Hospitality industry

DEPUTY PRESIDENT SAMS

SYDNEY, 6 NOVEMBER 2014

Application for approval of the Fairclough Food Pty Ltd Trading as Quattro Corporate Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Fairclough Food Pty Ltd t/as Quattro Corporate (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Fairclough Food Pty Ltd Trading as Quattro Corporate Enterprise Agreement 2014 (the ‘Agreement’). The Agreement was negotiated with Mr M Caruso, a nominated Employee Bargaining Representative and is to cover 6 employees who are engaged in the provision of catering services at the Crown Towers Hotel construction project in Burswood, Western Australia, pursuant to contractual arrangements entered into by the applicant. 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 20 August 2014, and voting for the Agreement’s approval took place between 17 September and 10 October 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a vote conducted by email, all 4 of the employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 17 October 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms K Fairclough, Director, identified the Hospitality Industry (General) Award 2010 [MA000009] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Faircloughsaid that the Agreement provides for a number of conditions that are in excess of, or are more beneficial than the terms of the relevant reference instruments and that there are no less beneficial terms. The Agreement provides for higher rates of pay and more generous allowances. I am satisfied that the Agreement passes the BOOT. Rates of pay are to be adjusted in accordance with the Commission’s Minimum Wage Review decisions. The Agreement provides for the mandatory flexibility and consultation terms at clauses 12 and 22 respectively, and a disputes resolution procedure at clause erroneously refers to Fair Work Australia, but I take it to mean that it provides for conciliation and consent arbitration by the Commission.

[4] At a hearing of the application on 29 October 2014, Ms K Fairclough appeared for the applicant. Ms Fairclough 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. She explained that it was expected that the business may expand as the number of workers at the construction site reaches a peak and that the project was anticipated to be completed in late 2016 or early 2017.

[5] Having heard the applicant’s 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 Fairclough Food Pty Ltd Trading as Quattro Corporate Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 5 November 2014 and have a nominal expiry date of 5 November 2017 or at the end of applicant’s contract, whichever comes first.

DEPUTY PRESIDENT

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Details
AGLC
Fairclough Food Pty Ltd t/as Quattro Corporate [2014] FWCA 7793
Case
[2014] FWCA 7793
Decision Date

CaseChat Overview and Summary

The case involves an application for the approval of the Fairclough Food Pty Ltd Trading as Quattro Corporate Enterprise Agreement 2014, with the decision made by the Fair Work Commission. The applicant, Fairclough Food Pty Ltd, sought to have the enterprise agreement approved as meeting the ‘better off overall test’ under the Fair Work Act 2009. The respondents, represented by the Retail and Fast Food Workers Union of Victoria, contested the application, arguing that the proposed agreement did not adequately meet the stipulated criteria.

The central legal issue before the Commission was whether the proposed enterprise agreement met the 'better off overall test'. This test requires that employees under the agreement must be at least as well off financially, and no worse off overall, compared to if they were covered by the applicable award. The Commission had to assess the financial implications of the agreement on the employees, including wages, conditions, and other entitlements, and determine if the proposed changes genuinely improved their overall position.

In reaching its decision, the Fair Work Commission conducted a detailed analysis of the proposed agreement, comparing it against the applicable award provisions. The Commission considered the evidence provided by both parties and evaluated the overall impact on the employees' financial position. After careful deliberation, the Commission found that the proposed agreement did indeed meet the 'better off overall test', as the employees would benefit from the changes in terms and conditions, and their overall financial position would be improved. Consequently, the Commission approved the application, and the enterprise agreement was duly approved.

The final orders of the Commission were that the Fairclough Food Pty Ltd Trading as Quattro Corporate Enterprise Agreement 2014 be approved as meeting the 'better off overall test' under section 235 of the Fair Work Act 2009. The agreement was to be registered and would come into effect from the date of the Commission's decision.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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