DECISION

Fair Work Act 2009
s.185—Enterprise agreement

McKenzie Staff Pty Ltd
(AG2016/6467)

MCKENZIE AGED CARE GROUP ENTERPRISE AGREEMENT 2016

Aged care industry
COMMISSIONER LEE	MELBOURNE, 12 DECEMBER 2016

Application for approval of the McKenzie Aged Care Group Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the McKenzie Aged Care Group Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by McKenzie Staff Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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] 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] The Australian Workers’ Union, Health Services Union of Australia, Australian Nursing and Midwifery Federation, Queensland Nurses’ Union of Employees and New South Wales Nurses and Midwives’ Association being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 December 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of McKenzie Staff Pty Ltd, the applicant, and the Fair Work Commission, the respondent, the Federal Court of Australia considered an application for the approval of the McKenzie Aged Care Group Enterprise Agreement 2016. The application was brought by McKenzie Staff Pty Ltd, seeking to have the enterprise agreement, which it had negotiated with the Australian Nursing and Midwifery Federation, formally approved by the Fair Work Commission. The legal issues before the court centred on whether the agreement met the criteria for approval under the Fair Work Act 2009, including whether the agreement had been genuinely bargained and whether it contained the mandated minimum terms and conditions of employment.

The court examined the process through which the agreement was negotiated and concluded that the agreement had indeed been genuinely bargained. It found that the negotiation process was robust and that the agreement reflected a genuine attempt to reach a compromise between the parties. The court also considered whether the agreement contained the minimum terms and conditions as required by the Act. It found that the agreement did meet these requirements and that it provided for a fair and reasonable set of conditions for the employees. The court was satisfied that the agreement was in the best interests of the employees and did not disadvantage them.

As a result of this reasoning, the court approved the McKenzie Aged Care Group Enterprise Agreement 2016. The court found that the agreement complied with all necessary legal requirements and should be formally recognised by the Fair Work Commission. This approval allows the agreement to take effect and govern the employment conditions of the workers covered by it. The court's decision ensures that the agreement, which had been negotiated in good faith and met all statutory criteria, would be legally binding and enforceable.

McKenzie Staff 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