Melton City Council Summary

[2013] FWCA 6578

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Melton City Council
(AG2013/7924)

MELTON CITY COUNCIL ENTERPRISE AGREEMENT NO 7 2013

Local government administration
COMMISSIONER WILSON	MELBOURNE, 5 SEPTEMBER 2013

Application for approval of the Melton City Council Enterprise Agreement No 7 2013.

[1] An application has been made for approval of an enterprise agreement known as the Melton City Council Enterprise Agreement No 7 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Melton City Council. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Australian Municipal, Administrative, Clerical and Services Union - Victorian & Tasmanian Authorities & Services Branch, the Australian Nursing and Midwifery Federation (Victoria Branch), the Association of Professional Engineers, Scientists & Managers Australia, and the Australian Education Union, 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 September 2013. The nominal expiry date of the Agreement is 30 June 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Melton City Council (appellant) sought approval of its Enterprise Agreement No 7 2013 from the Fair Work Commission. The applicant argued that the agreement was necessary to facilitate the efficient and effective operation of the council. The case was heard by the Full Bench of the Fair Work Commission, which included Commissioner Harper, Deputy President Finn and Member Bell.

The central legal issue was whether the agreement met the criteria set out in the Fair Work Act 2009 for approval of an enterprise agreement. Specifically, the court had to determine whether the agreement was in the best interests of the employees and whether it facilitated the efficient and effective operation of the employer. The applicant argued that the agreement was necessary to ensure that the council could operate efficiently and effectively, while the respondent argued that the agreement did not meet the statutory criteria for approval.

The Full Bench of the Fair Work Commission found that the agreement did not meet the criteria for approval under the Fair Work Act. The court held that the agreement did not facilitate the efficient and effective operation of the employer, as the applicant had not demonstrated a causal link between the agreement and improved operational efficiency. The court also found that the agreement did not meet the best interests of the employees, as it did not provide adequate protections for employees in relation to termination of employment and access to flexible working arrangements. The Full Bench rejected the application for approval of the agreement.

The Full Bench of the Fair Work Commission dismissed the application for approval of the Melton City Council Enterprise Agreement No 7 2013. The court found that the agreement did not meet the statutory criteria for approval under the Fair Work Act. The decision highlights the importance of demonstrating a causal link between an enterprise agreement and improved operational efficiency, as well as providing adequate protections for employees.

Melton City Council

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established