DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Independent Education Union of Australia
(AG2018/566)

STUART STREET KINDERGARTEN EARLY CHILDHOOD EDUCATION COLLECTIVE ENTERPRISE AGREEMENT 2017

Educational services
COMMISSIONER JOHNS	SYDNEY, 4 JUNE 2018

Application for approval of the Stuart Street Kindergarten Early Childhood Education Collective Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Stuart Street Kindergarten Early Childhood Education Collective Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Independent Education Union of Australia. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Independent Education Union of Australia being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 June 2018. The nominal expiry date of the Agreement is 31 December 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Independent Education Union of Australia brought an application before the Fair Work Commission for approval of the Stuart Street Kindergarten Early Childhood Education Collective Enterprise Agreement 2017. The Stuart Street Kindergarten, a childcare centre, was the subject of the dispute, with the Union arguing for the agreement to be approved under the Fair Work Act 2009. The Commission was required to determine whether the agreement met the "better off overall test" and whether it complied with the procedural requirements stipulated by the Act.

The primary legal issue before the Commission was whether the proposed agreement satisfied the "better off overall test," which necessitates that employees be no worse off financially and preferably better off overall. The Commission also needed to assess whether the agreement adhered to the procedural requirements for approval, including whether the agreement had been fairly negotiated and if the necessary majority of employees had voted in favour of it. Furthermore, the Commission considered whether the agreement complied with the terms of the National Employment Standards and any relevant awards.

In its decision, the Fair Work Commission found that the Stuart Street Kindergarten Early Childhood Education Collective Enterprise Agreement 2017 met the better off overall test. The Commission noted that the agreement provided for increased wages and improved working conditions for employees, ensuring they were not worse off and, in some cases, better off overall. The Commission also determined that the agreement had been fairly negotiated and that the necessary majority of employees had voted in favour of it. Consequently, the Commission approved the agreement, finding that it complied with the procedural requirements and the terms of the Fair Work Act 2009.

The Fair Work Commission approved the Stuart Street Kindergarten Early Childhood Education Collective Enterprise Agreement 2017, finding it met the better off overall test and complied with the procedural requirements of the Fair Work Act 2009. The decision underscored the importance of ensuring employees are not worse off financially and preferably better off overall when approving such agreements.

Independent Education Union of Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established