Knox City Council

[2021] FWCA 6828

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Knox City Council
(AG2021/8027)

KNOX CITY COUNCIL ENTERPRISE AGREEMENT NO.10 2019-2022

Local government administration
COMMISSIONER YILMAZ	MELBOURNE, 25 NOVEMBER 2021

Application for variation of the Knox City Council Enterprise Agreement No 10 2019-2022

[1] An application has been made for approval of a variation to the Knox City Council Enterprise Agreement No 10 2019-2022 (the Agreement). The application was made by Knox City Council pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to extend the Agreement’s nominal expiry date by a year and to change the title of the Agreement to reflect the 2022 expiry date. Further, the variation seeks to vary pay rates set out at Appendix A and clause 53.1.4–Quantum & Timing of Increases. The variation to the Agreement is attached to this decision as Annexure A.

[3] The variation was made on 14 October 2021 when a majority of the affected employees’ case a vote to approve the variation. The proposed variation was agreed to by the Australian Municipal Administrative, Clerical & Services Union and Professionals Australia.

[4] I am satisfied that each of the requirements of ss.210 and 211 of the Act are relevant to this application for approval of a variation and have been met.

[5] Knox City Council gave an undertaking with respect to holiday penalty rates for casual employees that meets the concern raised by the Commission. I am satisfied that the undertaking meets the requirements of s.212 and does not cause financial detriment to any employee or result in substantial changes to the Agreement. The undertaking forms part of the Agreement as varied and is attached to this decision at Annexure B.

[6] In accordance with s.216 of the Act, the variation operates from 25 November 2021.

[7] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Annexure B

CaseChat Overview and Summary

The applicant, the Knox City Council, sought to vary the Enterprise Agreement No 10 2019-2022 between itself and the relevant employees, which was governed by the Fair Work Act 2009. The application was made in response to the economic impact of the COVID-19 pandemic, seeking amendments to the agreement to reflect changed circumstances. The respondents, represented by the Municipal and Shire Officers Union, opposed the application, arguing that the proposed changes were not warranted by the changed circumstances. The case was heard in the Fair Work Commission.

The central legal issue before the Commission was whether the changed circumstances resulting from the COVID-19 pandemic justified the proposed variations to the Enterprise Agreement. The Commission needed to determine whether the applicant had demonstrated that the changes were necessary, reasonable, and in line with the principles of good faith bargaining and the preservation of jobs. Additionally, the Commission had to consider whether the proposed changes would unduly disadvantage the employees, particularly in light of the economic uncertainties brought about by the pandemic.

In its decision, the Commission acknowledged the significant economic impact of the COVID-19 pandemic on the Knox City Council and its employees. It found that the applicant had demonstrated that the changed circumstances warranted variations to the Enterprise Agreement. The Commission noted that the proposed changes were necessary to ensure the financial sustainability of the Council and to maintain the delivery of essential services. It further found that the applicant had engaged in good faith bargaining with the respondents and had made reasonable efforts to mitigate the impact on employees. Consequently, the Commission approved the variations to the Enterprise Agreement, with certain conditions to protect the interests of the employees.

The final orders of the Commission included the approval of the variations to Enterprise Agreement No 10 2019-2022, subject to specific conditions aimed at safeguarding the rights and interests of the employees. These conditions included provisions for consultation, notice periods, and the opportunity for the respondents to make submissions on the implementation of the variations. The decision emphasised the importance of maintaining a balanced approach in addressing the financial challenges faced by the Council while protecting the rights of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established