Menzies International [Aust] Pty Ltd T/A Menzies International

[2019] FWCA 2353

[2019] FWCA 2353

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Menzies International [Aust] Pty Ltd T/A Menzies International
(AG2019/144)

NSW GOVERNMENT CLEANING CONTRACTORS MULTI ENTERPRISE AGREEMENT 2016

Cleaning services
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 8 APRIL 2019

Termination of the NSW Government Cleaning Contractors Multi Enterprise Agreement 2016.

[1] On 23 January 2019, Menzies International [Aust] Pty Ltd T/A Menzies International (Menzies) applied to the Fair Work Commission (the Commission) under s.225 of the Fair Work Act 2009 (Cth) (the FW Act) for termination of the NSW Government Cleaning Contractors Multi Enterprise Agreement 2016 (the Agreement).

[2] Menzies is an employer covered by the Agreement. The Agreement also covers three other employers:

•  ISS Property Services Pty Ltd (ISS);

•  Colin Joss & Co Pty Ltd (Joss Group); and

•  Broadspectrum Ltd (Broadspectrum).

[3] The Agreement also covers United Voice and the Broken Hill Town Employees’ Union.

[4] ISS, Joss Group and Broadspectrum all advised my chambers shortly after being notified of the application that they opposed it. Accordingly, on 1 February 2019, I issued directions for the filing of submissions and evidence.

[5] In the lead-up to the hearing of this matter, I received brief written submissions from 12 individual employees covered by the Agreement. Two of those employees supported Menzies’ application and 10 opposed it.

[6] I held a hearing of this matter earlier today, 8 April 2019. All the employers covered by the Agreement and United Voice attended the hearing. I gave my decision on transcript at the conclusion of the hearing, advising that I would terminate the Agreement, and that the termination would take effect six months from today. The following is an edited version of my decision.

[7] I have had regard to all the submissions and the evidence filed by the parties, including the written submissions of employees covered by the Agreement.

[8] I am satisfied that it would not be contrary to the public interest and would be appropriate to terminate the Agreement, having regard to all the factors referred to in s.226 of the FW Act.

[9] In particular, it is clear that the Agreement is now somewhat out of date and provides worse terms and conditions of employment for at least some employees, when compared to the applicable modern award. I do note, however, that the employers covered by the Agreement have as a matter of practice largely kept the actual rates paid to the employees in line with those specified by the modern award.

[10] However, I recognise that there are certain features of the Agreement that are specifically designed to meet the needs of the employers and employees involved in cleaning NSW government premises, and that the employers and unions that are covered by the Agreement are in the process of renegotiating it, while retaining those features that are designed to meet the sector’s particular circumstances.

[11] I am persuaded that it would be desirable to give the parties an opportunity to finalise the terms of a new agreement (or agreements), and have it (or them) approved by the employees and the Commission.

[12] It would be undesirable and unnecessarily disruptive from both an employee and an employer perspective to put everyone onto the modern award and then, only a comparatively short time afterwards, to have to implement a new agreement. For example, some employees would lose benefits and entitlements applicable under the Agreement that they would not receive under the modern award, and the employers would have to make significant changes to payroll and to working arrangements.

[13] Accordingly, I have decided to order the termination of the Agreement with a prospective date of effect with the expectation that employees would be able to transfer from the existing agreement straight on to a new agreement.

[14] The date of effect of the order for termination will be six months from today, that is, 8 October 2019.

SENIOR DEPUTY PRESIDENT

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