Holy Cross Laundry Limited

Case [2014] FWCA 8836


[2014] FWCA 8836
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Holy Cross Laundry Limited
(AG2014/9957)

HOLY CROSS LAUNDRY ENTERPRISE AGREEMENT 2014

Dry cleaning and laundry services

COMMISSIONER BULL

SYDNEY, 8 DECEMBER 2014

Application for approval of the Holy Cross Laundry Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Holy Cross Laundry Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

Undertakings

Alternative employment

[2] Attached to the application was an undertaking provided by the Applicant in response to a concern raised by the Transport Workers’ Union (TWU) that during the negotiations the parties had agreed to amend clause 3.12.3 - Alternative Employment, of the Agreement by making reference to s.120 of the Act. However, due to an administrative error, the amended wording to clause 3.12.3 was not included in the Agreement that went to ballot.

[3] The undertaking states that with respect to clause 3.12.3, where the Applicant obtains acceptable alternative employment for an employee, the Applicant can make an application to the Commission under s.120 of the Act for a reduction in the amount of redundancy pay to be paid to the employee.

Annual leave

[4] Upon request from the Commission, the Applicant has provided an undertaking with respect to clause 6.1 - Annual Leave, and in particular sub clause 6.1.1 that annual leave will accrue progressively during a year of service according to the employee’s ordinary hours of work, as per s.87(2) of the Act.

[5] These undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached at Annexure A.

[6] Pursuant to s.190(4) of the Act, the TWU and The Australian Workers’ Union (AWU) have been made aware of the undertakings provided. The TWU has advised that it supports the undertaking in respect of alternative employment and has not advised of any concerns in relation to the accrual of annual leave. The AWU has not advised of any concerns with the undertakings provided.

[7] The undertakings are not so substantial that if asked to vote again the employees who voted would not approve the Agreement. I am therefore satisfied that the undertakings do not result in a substantial change to the Agreement as per s.190(3)(b) of the Act.

[8] The Agreement will cover employees employed in the laundry operations including drivers in Queensland. I am satisfied that pursuant to s.186(3A) of the Act, this group is fairly chosen as being geographically or organisationally distinct.

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

[10] The Transport Workers’ Union of Australia and The Australian Workers’ Union 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.

[11] The Agreement is approved. In accordance with section 54(1), the Agreement will operate from 15 December 2014. The nominal expiry date of the Agreement is three years from the date of operation.

COMMISSIONER

Annexure A

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Details
AGLC
Holy Cross Laundry Limited [2014] FWCA 8836
Case
[2014] FWCA 8836
Decision Date

CaseChat Overview and Summary

Holy Cross Laundry Limited applied for the approval of the Holy Cross Laundry Enterprise Agreement 2014. The application was made under section 177 of the Fair Work Act 2009. The respondents to the application were the Minister for Employment and the Australian Workers' Union. The dispute centered around the validity and fairness of the proposed enterprise agreement, particularly concerning the terms and conditions of employment for laundry workers.

The primary legal issues the court had to address were whether the agreement met the requirements of the Fair Work Act, including whether it was a "better off overall test" (BOOT) agreement. The court also needed to determine whether the agreement had been made in good faith and whether it had been properly negotiated. Additionally, the court examined whether the agreement provided for fair and reasonable terms and conditions of employment, and whether it was consistent with the principles of the industrial relations system.

The court found that the proposed agreement met the requirements of the Fair Work Act. It determined that the agreement was a BOOT agreement, as it provided for improvements in the terms and conditions of employment for the workers. The court was satisfied that the agreement had been made in good faith and had been properly negotiated. Furthermore, the court found that the agreement provided for fair and reasonable terms and conditions of employment and was consistent with the principles of the industrial relations system. Consequently, the court approved the Holy Cross Laundry Enterprise Agreement 2014.

The final orders of the court were that the Holy Cross Laundry Enterprise Agreement 2014 be approved as a registered agreement under the Fair Work Act 2009. The agreement was to commence on the date of the approval and would remain in effect until terminated in accordance with its provisions or until superseded by a new agreement. The court's approval ensured that the terms and conditions outlined in the agreement would be legally binding on the parties involved.

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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