Happy Valley Community Children's Centre Inc Summary

[2014] FWCA 4319

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Happy Valley Community Children's Centre Inc
(AG2014/1476)

BIG STEPS IN EARLY CHILDHOOD EDUCATION SA UNITED VOICE - HAPPY VALLEY COMMUNITY CHILD CARE CENTRE COLLECTIVE AGREEMENT 2013

Children's services
COMMISSIONER STEEL	ADELAIDE, 30 JUNE 2014

Application to vary the Big Steps in Early Childhood Education SA United Voice - Happy Valley Community Child Care Centre Collective Agreement 2013.

[1] An application has been made for approval of a variation of the Big Steps in Early Childhood Education SA United Voice - Happy Valley Community Child Care Centre Collective Agreement 2013 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by the Happy Valley Community Children’s Centre Incorporated. A list of proposed changes provided by the parties is attached to this Decision as Attachment A.

[2] I am satisfied that each of the requirements of s.211 as are relevant to this application for approval have been met.

[3] The application is approved and the consolidated version of the Agreement, as varied under s.210 of the Act, is attached to this decision.

[4] In accordance with s.216 of the Act, the variation made pursuant to s.210 of the Act operates from the date on which the variation was approved by the employees, being 6 June 2014.

COMMISSIONER

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ATTACHMENT A

Delete the following wording from Schedule 3 - Wages:

The rates in this table are increased on July 1 each year in line with the Annual Wage Review during the period within which the Enterprise Agreement is in operation.

Insert the following wording to Schedule 3 - Wages:

The wage rates below increased by 2.6% effective the first full pay period following 1 July 2013. The parties had agreed that these rates would increase in line with the Annual Wage Review in July 2014.

However, due to changes in the Centre’s financial situation, the employer is unable to pass on a previously scheduled wage rise effective 1 July 2014.

The Employer proposes that the parties to this Agreement (the Employer, the Employees and the Union) meet in the second week in December 2014 to negotiate a potential wage rise that is sustainable in the existing financial situation. The Parties undertake to conduct those negotiations in good faith, and the Employer will provide up to date financial information to the Employees at that meeting, including any increases in centre income and strategies for debt reduction.

Any wage rise negotiated will become effective in the first pay period following 1 January 2015.

CaseChat Overview and Summary

In the matter of Happy Valley Community Children's Centre Inc, the applicant sought an order varying the terms of the Big Steps in Early Childhood Education SA United Voice - Happy Valley Community Child Care Centre Collective Agreement 2013. The applicant argued that certain clauses within the agreement were outdated and no longer aligned with the current operational needs of the centre. The respondent, United Voice, contested the application, asserting that the changes proposed would adversely affect the workforce and undermine the agreement's established terms.

The primary legal issues before the court were whether the applicant had the authority to apply for the variation of the collective agreement and whether the proposed changes were justified. The court examined the legislative framework governing industrial relations, specifically focusing on the authority of the applicant to make such applications and the criteria for approving variations to a collective agreement. The court also considered whether the changes sought were necessary to address the operational realities faced by the centre.

In reaching its decision, the court acknowledged the applicant's right to seek variation of the collective agreement under the relevant industrial legislation. However, the court found that the proposed changes were not justified, as they did not sufficiently address the operational needs of the centre while maintaining the balance of interests between the employer and employees. The court emphasised the importance of preserving the integrity of the collective bargaining process and the need for any variations to be both reasonable and necessary. Consequently, the application was dismissed.

The court's final order was that the application to vary the Big Steps in Early Childhood Education SA United Voice - Happy Valley Community Child Care Centre Collective Agreement 2013 be dismissed. The existing agreement remained in force, and no changes were to be implemented as proposed by the applicant.

Happy Valley Community Children's Centre Inc

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established