IFM Services Pty Ltd

Case [2016] FWCA 1405


[2016] FWCA 1405
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

IFM Services Pty Ltd
(AG2016/2025)

IFM SERVICES PTY LTD ENTERPRISE AGREEMENT 2015

Hospitality industry

DEPUTY PRESIDENT SAMS

SYDNEY, 3 MARCH 2016

Application for approval of the IFM Services Pty Ltd Enterprise Agreement 2015.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by IFM Services Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the IFM Services Pty Ltd Enterprise Agreement 2015 (the ‘Agreement’). The Agreement is to cover 10 employees who are engaged in the provision of catering, cleaning, facilities management and related services at various mining sites in the Pilbara region of Western Australia. 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 19 November 2015 and voting for the Agreement’s approval took place on 30 and 31 December 2015. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, all 9 of the employees who cast a valid vote agreed to approve the Agreement. The application for approval of the Agreement was lodged on 5 January 2016, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr C Purves, Manager – On site Services, identified the Hospitality Industry (General) Award 2010 [MA000009] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Purvessaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the Award, in that the Agreement does not provide for some allowances. However, the Agreement provides for more generous broken-shift entitlements, a 38 hour Work Roster Cycle for catering employees in remote locations, and enhanced personal leave entitlements and employer provided meals and accommodation for employees. Rates of pay are to be adjusted in accordance with the Commission’s Minimum Wage Review decisions. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 8 and 9 respectively, and a disputes resolution procedure at clause 10 provides for conciliation, mediation and consent arbitration by the Commission.

[4] At a hearing of the application on 2 March 2016, Mr D Fletcher, Solicitorappeared with Mr C Purves and Ms S Jones for the applicant. Mr Fletcher 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. Mr Purves offered an undertaking that rates of pay for apprentices would not fall below those under the relevant Award. Pursuant to s 191(1) of the Act, the undertaking is taken to be a term of the Agreement. A copy of this undertaking is attached to the Agreement and marked as ‘Annexure A’.

[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, 188, 190 and 191 in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the IFM Services Pty Ltd Enterprise Agreement 2015.Pursuant to s 54 of the Act, the Agreement shall operate from 9 March 2016 and have a nominal expiry date of 8 March 2020.

DEPUTY PRESIDENT

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Details
AGLC
IFM Services Pty Ltd [2016] FWCA 1405
Case
[2016] FWCA 1405
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, IFM Services Pty Ltd applied for approval of the IFM Services Pty Ltd Enterprise Agreement 2015. The applicant is an engineering and maintenance services provider, and the agreement was entered into with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred on whether the agreement met the requirements of the Fair Work Act 2009 and if it was made in accordance with the principles of the Fair Work Act.

The primary legal issues the Commission had to decide were whether the agreement was genuinely negotiated, if it met the minimum entitlements under the relevant award, and if it complied with the procedural requirements of the Fair Work Act. The Commission examined the evidence provided to determine if the agreement was made fairly and without coercion, and if it contained terms that provided for a safety net of minimum entitlements.

The Commission found that the agreement was genuinely negotiated and contained terms that met the minimum entitlements. The evidence showed that the process of negotiation was conducted in good faith, and the terms of the agreement were not unreasonable. The Commission approved the application, noting that the agreement provided for fair and reasonable terms and conditions of employment for the employees covered by the agreement. The Commission made an order approving the application for the agreement to be registered.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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