MB Australia Pty Ltd

Case [2016] FWCA 1710


[2016] FWCA 1710

DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement
MB Australia Pty Ltd T/A Max Brenner Australia
(AG2016/2370)
MB AUSTRALIA ENTERPRISE AGREEMENT 2016
Restaurants
DEPUTY PRESIDENT SAMS SYDNEY, 18 MARCH 2016

Application for approval of the MB Australia Enterprise Agreement 2016.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed

by MB Australia Pty Ltd T/A Max Brenner Australia (the ‘applicant’) which seeks the

approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement

to be known as the MB Australia Enterprise Agreement 2016 (the ‘Agreement’). The

Agreement is to cover 270 employees who are engaged at the applicant’s restaurants in all

States and Territories across Australia, except for Victoria, New South Wales and the

Australian Capital Territory. The Agreement also does not cover head office employees. For

the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered

by this Agreement has been fairly chosen.

[2]        The employees were last notified of their representational rights on 27 November

2015, and voting for the Agreement’s approval took place on 12 February 2016. The time

limits under s 181(2) of the Act are thereby satisfied. In an electronic ballot, 163 of the 213

employees who cast a valid vote, agreed to approve the Agreement. The application for

approval of the Agreement was lodged on 22 February 2016, thereby satisfying s 185(3) of

the Act.

[3]        In the Employer’s Declaration in support of the application (Form F17) Ms N Erez-

Rein, National HR Manager, identified the Restaurant Industry Award 2010 [MA000119] as

[2016] FWCA 1710

the relevant reference instrument for the purposes of the Better Off Overall Test (the

‘BOOT’). Ms Erez-Rein said that the Agreement does provide for some terms and conditions

that are less beneficial than those under the Award in that the Agreement does not provide for

penalty rates for late work or work performed on weekends and provides for reduced penalty

rates for public holidays. However, these have been ‘loaded’ into higher base rates of pay.

The Agreement also provides for enhanced meal break entitlements, a free meal valued up to

$20 for each meal break and a birthday bonus for employees with at least 12 months’

continuous service of 7.5 hours pay. I am satisfied that the Agreement passes the BOOT. The

Agreement provides for the mandatory flexibility and consultation terms at clauses 6 and 15

respectively, and a disputes resolution procedure at clause 7 provides for mediation and

consent arbitration by the Commission.

[4]        At a hearing of the application on 17 March 2016, Mr C Ni, Solicitor, appeared with

Ms N Erez-Rein and Ms Y Kaminski for the applicant. Mr Ni outlined the main features of the

Agreement and submitted that all of the legislative requirements for approval of the

Agreement have been satisfied and the Agreement should be approved by the Commission He

explained that while the Agreement does not provide for increases to base rates of pay over

the nominal term of the Agreement, the higher base rates of pay took this into account. He

also provided calculations based on indicative rosters setting out that the employees were

better off under the Agreement. The Australian Workers’ Union did not appear, but had filed

a Declaration in relation to the application (Form 18) giving notice that it wishes to be

covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the

Union is to be covered by the Agreement.

[2016] FWCA 1710

[5]        Having heard the applicant’s submissions and upon reviewing the terms of the

preapproval process documentation and the Agreement itself, I am satisfied that all of the

requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this

application, have been met. Accordingly, I approve a single enterprise agreement known as

the MB Australia Enterprise Agreement 2016. Pursuant to s 54 of the Act, the Agreement

shall operate from 25 March 2016 and have a nominal expiry date of 24 March 2020.

DEPUTY PRESIDENT

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Details
AGLC
MB Australia Pty Ltd [2016] FWCA 1710
Case
[2016] FWCA 1710
Decision Date

CaseChat Overview and Summary

The Fair Work Commission received an application from MB Australia Pty Ltd T/A Max Brenner Australia to approve a single enterprise agreement for its restaurant employees, excluding those in Victoria, New South Wales, and the Australian Capital Territory. The MB Australia Enterprise Agreement 2016 was to cover 270 employees across Australia. The application was filed under section 185 of the Fair Work Act 2009. The employees had been notified of their representational rights, and a vote on the Agreement's approval was held on 12 February 2016. The application was lodged on 22 February 2016, satisfying the time limits under the Act. The electronic ballot resulted in 163 out of 213 employees who cast a valid vote approving the Agreement.

The legal issues before the Commission included whether the agreement met the legislative requirements for approval and if it passed the Better Off Overall Test (BOOT). The applicant identified the Restaurant Industry Award 2010 as the relevant reference instrument for the BOOT. The applicant argued that the Agreement provided for higher base rates of pay, which compensated for the reduced penalty rates and the absence of penalties for late work or weekend work. The applicant also noted that the Agreement provided for enhanced meal break entitlements, a free meal valued up to $20 for each meal break, and a birthday bonus for employees with at least 12 months’ continuous service of 7.5 hours pay. The applicant submitted that all legislative requirements for approval had been satisfied, and the Agreement should be approved.

The Deputy President was satisfied that the applicant had met all the requirements of the Act, particularly sections 180, 186, 187, and 188. The Deputy President approved the MB Australia Enterprise Agreement 2016, which shall operate from 25 March 2016 and have a nominal expiry date of 24 March 2020.

Orders

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Background

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Evidence

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Decision

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Ratio Decidendi

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