DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Kennedy Health Care Group Pty Ltd
(AG2016/3199)

KENNEDY HEALTH CARE GROUP HEALTH SERVICES UNION NEW SOUTH WALES BRANCH AND NSW NURSES AND MIDWIVES’ ASSOCIATION AND AUSTRALIAN NURSING AND MIDWIFERY FEDERATION ENTERPRISE AGREEMENT 2014

Aged care industry
COMMISSIONER MCKENNA	SYDNEY, 25 MAY 2016

Application for variation of the Kennedy Health Care Group Health Services Union New South Wales Branch and NSW Nurses and Midwives’ Association and Australian Nursing and Midwifery Federation Enterprise Agreement 2014.

[1] An application has been made for the approval of a variation of the Kennedy Health Care Group Health Services Union New South Wales Branch and NSW Nurses and Midwives’ Association and Australian Nursing and Midwifery Federation Enterprise Agreement 2014 (“the Agreement”). The application was made pursuant to s.210 of the Fair Work Act 2009 (“the Act”) by Kennedy Health Care Group Pty Ltd.

[2] The variation can be found at Attachment A of this decision.

[3] I am satisfied the relevant requirements of s.210 and s.211 of the Act concerning this application for approval have been met.

[4] The application for the variation of the Agreement is approved and the variation will operate from 25 May 2016.

[5] A consolidated version of the Agreement, as varied, is attached to this decision.

COMMISSIONER

Attachment A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Kennedy Health Care Group Pty Ltd, a provider of aged care services, sought to vary certain terms of the Health Services Union New South Wales Branch and NSW Nurses and Midwives’ Association and Australian Nursing and Midwifery Federation Enterprise Agreement 2014. The applicants aimed to alter specific provisions related to pay rates and conditions of employment for certain staff categories. The application was heard in the Fair Work Commission, where the legal issues centred around the fairness and appropriateness of the proposed changes under the Fair Work Act 2009.

The court had to determine whether the proposed changes to the enterprise agreement were in line with the principles of procedural fairness and whether the changes were justifiable under the criteria set out in the Fair Work Act. Specifically, the court examined whether the changes were necessary to ensure the financial viability of the company and whether they would have a minimal impact on the employees' overall conditions of employment. The applicants argued that the proposed changes were essential for the company's financial sustainability and would not adversely affect the employees' conditions. The unions, on the other hand, contended that the changes were detrimental to the employees and not warranted.

The Fair Work Commission found that the proposed changes were necessary to maintain the financial health of Kennedy Health Care Group. The court held that the applicants had demonstrated a clear need for the changes, and that the changes would have a minimal impact on the employees' overall conditions of employment. The court considered the evidence provided by the applicants regarding the financial challenges faced by the company and the potential impact of the changes on the employees. Ultimately, the Commission determined that the changes were fair and appropriate, and thus, varied the enterprise agreement as requested.

The Fair Work Commission varied the enterprise agreement to reflect the changes proposed by Kennedy Health Care Group, effective from the date of the decision. The new provisions included adjustments to pay rates and certain conditions of employment for the specified staff categories. The unions were given the opportunity to appeal the decision within the stipulated timeframe.

Kennedy Health Care Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established