DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mitchell Shire Council
(AG2017/4198)

MITCHELL SHIRE COUNCIL ENTERPRISE AGREEMENT NO.7 2017-2020

Local government administration
DEPUTY PRESIDENT MASSON	MELBOURNE, 22 DECEMBER 2017

Application for approval of the Mitchell Shire Council Enterprise Agreement No.7 2017-2020.

[1] An application has been made for approval of an enterprise agreement known as the Mitchell Shire Council Enterprise Agreement No.7 2017-2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mitchell Shire Council. 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] The Australian Municipal, Administrative, Clerical and Services Union and Australian Nursing and Midwifery Federation 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 December 2017. The nominal expiry date of the Agreement is 30 June 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Mitchell Shire Council applied to the Fair Work Commission for approval of its Enterprise Agreement No.7 2017-2020. The dispute arose from the Council's assertion that the agreement was necessary to facilitate the efficient and economic delivery of services to the community. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement provided for pay and conditions that were no worse off financially than those provided for in the applicable award or in existing enterprise agreements, and whether the agreement included terms that were necessary for the efficient and economic delivery of services. The Commission also had to consider whether the agreement met the "better off overall test," ensuring that employees were not disadvantaged by the agreement.

The Commission found that the proposed agreement did not comply with the no worse off financially test, as some employees would be worse off financially under the agreement. Despite this, the Commission approved the agreement, finding that the benefits to the community in terms of service delivery outweighed the financial disadvantages to some employees. The Commission also noted the parties' commitment to ongoing consultation and negotiation, which it deemed crucial for the efficient and economic delivery of services.

The Commission approved the agreement with conditions, including a requirement for ongoing consultation and negotiation between the parties. The approval was contingent upon the Council demonstrating that it could meet the financial implications of the agreement without compromising service delivery. The Commission's decision was based on the importance of the efficient and economic delivery of services to the community, balanced against the financial impacts on employees.

Mitchell Shire Council

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established