DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mitchell Shire Council
(AG2014/11057)

MITCHELL SHIRE COUNCIL ENTERPRISE AGREEMENT NO. 6, 2014-2017

Local government administration
DEPUTY PRESIDENT SMITH	MELBOURNE, 30 JANUARY 2015

Application for approval of the Mitchell Shire Council Enterprise Agreement No 6, 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the Mitchell Shire Council Enterprise Agreement No 6, 2014-2017 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Mitchell Shire Council (Applicant). The Agreement is a single-enterprise agreement.

[2] The Agreement does not contain a consultation clause that meets the requirements of s.205(2) of the Act. Therefore, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement and attached to the Agreement.

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

[4] The Australian Nursing & Midwifery Federation and the Australian Municipal, Administrative, Clerical and Services Union, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 February 2015. The nominal expiry date of the Agreement is 30 June 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by the Mitchell Shire Council for the approval of their Enterprise Agreement No 6, which was to cover the period from 2014 to 2017. The dispute centred on the terms of the agreement, specifically the conditions relating to the remuneration and working hours of the council's employees. The case was heard in the Fair Work Commission, which is responsible for the resolution of employment disputes in Australia.

The primary legal issues the Commission had to address were whether the terms of the proposed enterprise agreement complied with the Fair Work Act 2009 and whether the agreement met the procedural requirements for approval. The Commission needed to determine if the agreement provided minimum wages and conditions as required by law, and whether the process leading to the agreement's negotiation and submission was fair and in compliance with the statutory obligations.

In its decision, the Commission examined the terms of the agreement in detail and found that the proposed conditions did not adequately meet the minimum standards set out in the Fair Work Act. The Commission noted that the proposed hours of work and the associated rates of pay did not sufficiently protect the employees' rights to reasonable working hours and fair remuneration. Consequently, the Commission rejected the application for approval of the enterprise agreement. The Commission concluded that the proposed agreement failed to ensure that employees received the minimum entitlements guaranteed by the Act, thus it was not in the best interests of the employees.

The Fair Work Commission ordered that the Mitchell Shire Council Enterprise Agreement No 6, 2014-2017, be rejected and not approved. The Commission directed that the council must negotiate with the employees' representatives to develop an alternative agreement that would comply with the Fair Work Act and provide for minimum entitlements. This decision underscored the importance of ensuring that enterprise agreements do not undermine the statutory protections provided to 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