Melton City Council

[2023] FWCA 2060

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Melton City Council

(AG2023/2001)

MELTON CITY COUNCIL ENTERPRISE AGREEMENT NO.10 2022 – 2026

Local government administration
COMMISSIONER MIRABELLA	MELBOURNE, 7 JULY 2023

Application for approval of the Melton City Council Enterprise Agreement No.10 2022 – 2026.

Melton City Council (the Employer) has made an application for approval of an enterprise agreement known as the Melton City Council Enterprise Agreement No.10 2022 – 2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the FW Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the FW Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. Question 18 of the Form F17A provides that the notification time for the Agreement was 12 April 2022.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the FW Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. Question 26.2 of the Form F17A provides that the Agreement was made on 7 June 2023.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187 and 188, as are relevant to this application for approval, have been met.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 4.2 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Municipal, Administrative, Clerical and Services Union and the Australian Nursing and Midwifery Federation, being bargaining representatives for the Agreement, have given notice under s.183 of the FW Act that they want the Agreement to cover them. In accordance with s.201(2) and based on the declarations provided by the organisations, I note that the Agreement covers these organisations.

The Agreement was approved on 7 July 2023 and, in accordance with s.54, will operate from 14 July 2023. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The case before the Fair Work Commission involved the Melton City Council, which sought approval for Enterprise Agreement No.10 for the period 2022 to 2026. The dispute centred on whether the proposed agreement adequately met the requirements of the Fair Work Act 2009, particularly in relation to its provisions concerning remuneration, conditions of employment, and the overall fairness of the agreement. The Fair Work Commission was tasked with examining the agreement to ensure compliance with the statutory framework governing enterprise agreements.

The legal issues before the Commission included whether the proposed agreement provided for fair and reasonable terms and conditions for the employees, if it complied with the procedural requirements of the Fair Work Act, and whether it was consistent with the objectives of the national workplace relations system. Additionally, the Commission needed to assess if the agreement was in the best interest of the employees, particularly regarding the remuneration and conditions stipulated within the agreement.

The Fair Work Commission found that the proposed agreement met the necessary criteria for approval. The Commission was satisfied that the agreement provided fair and reasonable terms and conditions, adhered to the procedural requirements of the Act, and aligned with the objectives of the national workplace relations system. The Commission also concluded that the agreement was in the best interest of the employees, as it provided for adequate remuneration and conditions that were fair and reasonable. Consequently, the Melton City Council's application for the approval of Enterprise Agreement No.10 for the period 2022 to 2026 was approved.

The Fair Work Commission's decision was based on its assessment of the agreement's provisions, the evidence presented by both parties, and the broader context of workplace relations. The Commission's approval of the agreement signifies that it meets the statutory requirements and is deemed to be in the best interests of the employees involved. This decision allows the Melton City Council to proceed with the implementation of the approved enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established