DECISION

Fair Work Act 2009
s.185—Enterprise agreement

LSA Services Pty Ltd
(AG2019/1307)

LSA SERVICES PTY LTD ENTERPRISE AGREEMENT 2019

Manufacturing and associated industries
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 18 JUNE 2019

Application for approval of the LSA Services Pty Ltd Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the LSA Services Pty Ltd Enterprise Agreement 2019 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by LSA Services Pty Ltd (Employer). 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, 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] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 June 2019. The nominal expiry date of the Agreement is 18 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, LSA Services Pty Ltd sought approval of the LSA Services Pty Ltd Enterprise Agreement 2019. The applicant, LSA Services Pty Ltd, is an employer in the waste collection industry, and the respondents were the Australian Manufacturing Workers' Union and the Transport Workers Union. The dispute arose over the terms and conditions outlined in the proposed enterprise agreement, which the unions contested on behalf of their members employed by LSA Services Pty Ltd. The unions argued that certain provisions of the agreement did not meet the statutory requirements under the Fair Work Act 2009 and were not fair and reasonable.

The legal issues before the Commission were whether the enterprise agreement complied with the statutory criteria and whether it was fair and reasonable. Specifically, the Commission needed to determine if the agreement appropriately addressed the employees' terms and conditions of employment, including minimum wage rates, leave entitlements, and other workplace standards. The unions contended that the agreement failed to provide adequate protections for employees in several respects, including the proposed reduction in penalty rates and the alteration of leave provisions. The Commission had to weigh these arguments against the applicant's position that the agreement was necessary to ensure the business's competitiveness and sustainability.

The Commission found that while the proposed enterprise agreement generally adhered to the statutory requirements, it contained provisions that were not fair and reasonable. The Commission identified specific clauses relating to penalty rates and leave entitlements as being deficient. It held that these provisions did not adequately protect employees, particularly in light of the significant changes they represented compared to the existing award. The Commission directed the parties to negotiate further to address these issues and ensure the agreement met the necessary standards of fairness and reasonableness. Ultimately, the Commission refused to approve the agreement in its current form but encouraged the parties to continue their negotiations with a view to reaching an agreement that would be acceptable to all parties.

LSA Services 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