Mornington Peninsula Shire Council

Case [2021] FWCA 4265


[2021] FWCA 4265
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Mornington Peninsula Shire Council
(AG2021/5932)

MORNINGTON PENINSULA SHIRE COUNCIL ENTERPRISE AGREEMENT 2021

Local government administration

COMMISSIONER LEE

MELBOURNE, 19 JULY 2021

Application for approval of the Mornington Peninsula Shire Council Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Mornington Peninsula Shire Council Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mornington Peninsula Shire Council (the Applicant). The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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] Appendix 11 of the Agreement incorporates the Nurses (ANMF—Victorian Local Government) Award 2015 (the Award). I note that the employer did not take all reasonable steps to ensure that during the access period for the Agreement, the relevant employees employed at the time who will be covered by the Agreement were given a copy of, or access to the Award in accordance with s.180(2) of the Act. The Applicant made submissions in relation to this error which I have considered. In summary, the Applicant indicated that employees were not provided with a copy of the Award, but that this was a minor procedural error, and the employees were not likely to have been disadvantaged by the error for the following reasons:

  This procedural error is only relevant to the entitlements of nursing employees covered by the Agreement because Appendix 11 and the Award only applies to them.

  The nursing employees make up a very small percentage of the employees covered by the Agreement.

  The nursing employees were well represented in bargaining for the Agreement with two employee representatives and three union representatives negotiating on their behalf.

  The relevant employees are currently covered by the Mornington Peninsula Shire Council Nurses Enterprise Agreement 2017 and the negotiation for the Agreement built on these entitlements.

  While the Awardis incorporated into the Agreement, the majority of entitlements are set out in the Agreement itself.

  The Agreement provides for entitlements that are equal to or more generous than the Award.

  The Award is a publicly available document.

  There overwhelming majority of employees voted to approve the Agreement.

[5] The bargaining representatives for the Agreement were given an opportunity to respond to these submissions. The bargaining representatives did not advise of any concerns. I am satisfied having regard to the submissions of the Applicant and the principles set out in the Full Bench decision in Huntsman Chemical Company Australia Pty Ltd T/A RMAX Rigid Cellular Plastics & Others 1that the above matter constitutes a minor procedural or technical error for the purposes of s.188(2)(a). Further, I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error.

[6] Accordingly, notwithstanding the matter identified in paragraph [4], I am satisfied that the Agreement has been genuinely agreed to by the employees covered by the Agreement within the meaning of s.188 of the Act.

[7] The Australian Nursing and Midwifery Federation, Australian Municipal, Administrative, Clerical and Services Union and The Association of Professional Engineers, Scientists and Managers, Australia being bargaining representatives for the Agreement, have each given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisations.

[8] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

  Clause 24.4 – Notice of Termination.

  Clause 41.14 – Annual Leave.

However, noting clause 6 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 July 2021. The nominal expiry date of the Agreement is 31 December 2023.

COMMISSIONER

Annexure A

 1   [2019] FWCFB 318.

Printed by authority of the Commonwealth Government Printer

<AE512320  PR731843>

Details
AGLC
Mornington Peninsula Shire Council [2021] FWCA 4265
Case
[2021] FWCA 4265
Decision Date

CaseChat Overview and Summary

The case involved the Mornington Peninsula Shire Council, which sought approval for its 2021 Enterprise Agreement. The application was made to the Fair Work Commission. The primary dispute centred on whether the proposed terms and conditions outlined in the agreement were fair and reasonable, in accordance with the Fair Work Act 2009. The Commission was required to determine if the agreement provided for fair remuneration and conditions that met the needs of the employees and the operational requirements of the council.

The legal issues before the Commission included whether the proposed terms aligned with the safety net provisions, the nature of the agreement, and the process by which it was negotiated. The Commission had to assess the fairness of the terms in light of the legislative framework, including any relevant awards or agreements that might have been displaced. Additionally, the Commission needed to consider if the agreement was negotiated in good faith and if it provided appropriate mechanisms for dispute resolution.

After examining the submissions and evidence provided by both parties, the Fair Work Commission determined that the proposed agreement was fair and reasonable. The Commission found that the terms met the safety net standards and were negotiated in good faith. It also noted that the agreement provided for adequate dispute resolution mechanisms. The Commission approved the Mornington Peninsula Shire Council Enterprise Agreement 2021, deeming it to be in the best interests of both the council and its employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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