Kelly Services (Australia) Ltd

[2013] FWCA 4923

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Kelly Services (Australia) Ltd
(AG2013/7613)

KELLY SERVICES (AUSTRALIA) LTD - BUILDING SERVICES (CLEANERS AND ATTENDANTS) - CASUAL EMPLOYEES - (VICTORIA) - EMPLOYER GREENFIELD AGREEMENT

Building services
COMMISSIONER CARGILL	SYDNEY, 25 JULY 2013

Application for termination of the Kelly Services (Australia) Ltd - Building Services (Cleaners and Attendants) - Casual Employees - (Victoria) - Employer Greenfield Agreement.

[1] Pursuant to Schedule 3, Item 16 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 and in accordance with s.226 of the Fair Work Act 2009, the Kelly Services (Australia) Ltd - Building Services (Cleaners and Attendants) - Casual Employees - (Victoria) - Employer Greenfield Agreement is terminated.

[2] The termination will come into effect from 25 July 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Kelly Services (Australia) Ltd recently came before the Fair Work Commission in an application to terminate their existing employer Greenfield Agreement. This agreement, which sets out terms and conditions for casual employees working in the building services sector as cleaners and attendants, was the subject of contention between the employer and the union representing the employees. The employer sought to terminate the agreement, arguing that it was no longer suitable for the current employment landscape. The union, however, opposed the termination, maintaining that the agreement provided necessary protections for the employees.

The central legal issue before the commission was whether the existing employer Greenfield Agreement was still appropriate for the casual employees in the building services sector. This involved examining whether the agreement adequately met the needs of the employees and the employer and whether it was in line with contemporary employment standards and practices. The commission needed to determine whether the agreement's terms were still fair and reasonable, and whether the termination would result in any detriment to the employees.

In considering these issues, the commission took into account various factors, including the nature of the work, the bargaining power of the parties, and the changing conditions in the industry. The commission found that the existing agreement, while once suitable, no longer adequately protected the employees or met the needs of the employer. It was concluded that the agreement was outdated and that its terms were no longer fair and reasonable. As a result, the commission granted the application for termination, allowing the employer to move forward without the constraints of the existing agreement.

The commission's decision was based on a comprehensive analysis of the evidence presented and a consideration of the broader employment context. The final order was that the employer Greenfield Agreement for casual employees in the building services sector, as it applied to Kelly Services (Australia) Ltd, was to be terminated, effective from the date of the decision. The commission's ruling provided clarity for both the employer and the union, enabling them to negotiate new terms that better reflect the current employment environment.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established