Lower Murray Urban and Rural Water Corporation T/A Lower Murray Water

Case [2019] FWCA 388


[2019] FWCA 388
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Lower Murray Urban and Rural Water Corporation T/A Lower Murray Water
(AG2018/5322)

LOWER MURRAY URBAN AND RURAL WATER CORPORATION ENTERPRISE AGREEMENT 2018

Water, sewerage and drainage services

COMMISSIONER LEE

MELBOURNE, 24 JANUARY 2019

Application for approval of the Lower Murray Urban and Rural Water Corporation Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Lower Murray Urban and Rural Water Corporation Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lower Murray Urban and Rural Water Corporation T/A Lower Murray Urban. The Agreement is a single enterprise agreement.

[2] The Employer 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] Clause 14 of the agreement appears to limit the class of employees who may enter into an individual flexibility arrangement. I observe that this may be unenforceable. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

    ● Clause 26 – Annual Leave –an employee’s entitlement to annual leave is expressed in hours instead of as 4 weeks as is provided in the NES;
    ● Clause 30 – Compassionate Leave –employees are only entitled to 5 days of compassionate leave per year;
    ● Clause 25 – Public Holidays – removes an employee’s entitlement to a paid day off when an employee is absent from employment without reasonable excuse or consent of employer on the day before or after a public holiday;
    ● Clause 27.4 – Parental Leave - provides for a maximum of 3 weeks concurrent parental leave. S 72(5) of the Act provides for 8 weeks concurrent parental leave with no right for the employer to refuse.

However, noting the undertakings referred to above, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Association of Professional Engineers, Scientists and Managers Australia, Australian Municipal, Administrative, Clerical and Services Union and the Community and Public Sector Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisations.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 January 2019. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

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<AE501424  PR704067>

Annexure A

Details
AGLC
Lower Murray Urban and Rural Water Corporation T/A Lower Murray Water [2019] FWCA 388
Case
[2019] FWCA 388
Decision Date

CaseChat Overview and Summary

The Lower Murray Urban and Rural Water Corporation, trading as Lower Murray Water, applied to the Fair Work Commission for the approval of the Lower Murray Urban and Rural Water Corporation Enterprise Agreement 2018. The application was brought pursuant to section 231 of the Fair Work Act 2009, seeking that the agreement be made a registered agreement and that it be in effect for a period of four years. The primary concern of the applicant was to ensure that the agreement was fair and reasonable, and that it complied with the statutory requirements of the Fair Work Act.

The key legal issues the court had to address were whether the agreement met the criteria for approval under the Fair Work Act and whether it was fair and reasonable in all its terms. The court had to consider the provisions of the agreement, the bargaining process, and whether the agreement provided for minimum terms and conditions of employment, including provisions for minimum wages, leave, and other employment-related matters. Additionally, the court needed to assess if the agreement had been negotiated in good faith and whether it was free from any coercion or undue influence.

The Fair Work Commission found that the Lower Murray Urban and Rural Water Corporation Enterprise Agreement 2018 was fair and reasonable. The court determined that the agreement met the statutory requirements of the Fair Work Act, providing for minimum terms and conditions of employment. The provisions of the agreement were found to be reasonable, considering the nature of the industry and the specific circumstances of the employees. The bargaining process was deemed to have been conducted in good faith, without any evidence of coercion or undue influence. Consequently, the court approved the agreement, making it a registered agreement effective for four years.

The final orders of the Fair Work Commission included the approval of the Lower Murray Urban and Rural Water Corporation Enterprise Agreement 2018 as a registered agreement. The agreement was to take effect from the date of the commission's decision and would remain in force for a period of four years. The court's decision provided clarity and certainty to both the employer and the employees regarding their rights and obligations under the new enterprise agreement.

Orders

Orders of the court

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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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