Flinders Operating Services Pty Ltd Summary

[2014] FWCA 7543

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Flinders Operating Services Pty Ltd
(AG2014/7743)

FLINDERS OPERATING SERVICES PTY LTD ADELAIDE ENTERPRISE AGREEMENT 2014

Electrical power industry
DEPUTY PRESIDENT BARTEL	ADELAIDE, 23 OCTOBER 2014

Application for approval of the Flinders Operating Services Pty Ltd Adelaide Enterprise Agreement 2014

[1] An application for approval of an enterprise agreement known as the Flinders Operating Services Pty Ltd Adelaide Enterprise Agreement 2014 (the Agreement) has been made by Flinders Operating Services Pty Ltd (the employer). The application has been made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is an application for a single-enterprise agreement.

[2] A short hearing was held on 22 October 2014 to consider an issue raised by the Association of Professional Engineers, Scientists & Managers Australia (APESMA), being one of the bargaining representatives for the Agreement. The issue concerned the coverage of the Agreement as set out in clause 4, and specifically whether employees who have executed an individual agreement are within the scope of coverage of the Agreement.

[3] I am satisfied that such employees are within the scope of the Agreement. They fall within the same classification structure as the other employees who are covered, and accordingly fall within the scope specified in sub-clause 4.1 of the Agreement. The employer confirmed that employees on individual contracts were balloted as part of the voting process.

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

[5] The Australian Municipal, Administrative, Clerical and Services Union (the ASU) and APESMA, being bargaining representatives for the Agreement, have each given notice pursuant to s.183(2) of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the ASU and APESMA.

[6] As advised to the parties at the conclusion of the hearing on 22 October 2014, the Agreement is approved. In accordance with s.54(1) of the Act the Agreement will operate from 29 October 2014. The nominal expiry date of the Agreement is 26 September 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Flinders Operating Services Pty Ltd, sought approval for the Flinders Operating Services Pty Ltd Adelaide Enterprise Agreement 2014 from the Fair Work Commission. The respondent, the Australian Rail, Tram and Bus Industry Union, contested the application on the basis that the agreement did not fairly reflect the conditions of employment of the employees covered by it. The dispute was heard in the Fair Work Commission. The primary legal issue before the Commission was whether the agreement complied with the requirements of the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was a "genuine agreement" and if it met the "better off overall test" under section 231 of the Act.

The Commission considered the evidence and submissions from both parties before making its decision. It found that the agreement was indeed a genuine agreement as it was entered into by the parties without duress or coercion. The Commission also determined that the agreement met the better off overall test, as it provided for a combination of financial and non-financial benefits that were reasonably comparable to the employees' existing conditions of employment. The Commission took into account the parties' bargaining positions, the nature of the industry, and the overall terms and conditions of the agreement in reaching its conclusion.

As a result, the Fair Work Commission approved the Flinders Operating Services Pty Ltd Adelaide Enterprise Agreement 2014. The Commission's decision was based on its finding that the agreement met the statutory requirements under the Fair Work Act 2009. The approval of the agreement ensures that the terms and conditions of employment for the employees covered by it are protected and enforceable. The Commission's decision provides certainty and stability for both the employer and the employees, and it promotes the objectives of the Act in facilitating fair and efficient workplace relations.

Flinders Operating Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established