Mornington Peninsula Shire Council Summary

[2017] FWCA 6461

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Mornington Peninsula Shire Council

(AG2017/4472)

Mornington Peninsula Shire Council General Staff Enterprise Agreement 2017

Local government administration
Commissioner Lee	MELBOURNE, 5 DECEMBER 2017

Application for approval of the Mornington Peninsula Shire Council General Staff Enterprise Agreement 2017.

An application has been made for approval of an enterprise agreement known as the Mornington Peninsula Shire Council General Staff Enterprise Agreement 2017 (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 Agreement is a single enterprise agreement.

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.

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.

The Australian Municipal, Administrative, Clerical and Services Union and The Association of Professional Engineers, Scientists and Managers, Australia 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 these organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 December 2017. The nominal expiry date of the Agreement is 31 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Mornington Peninsula Shire Council sought approval of its General Staff Enterprise Agreement 2017, which was to govern the terms and conditions of employment for its general staff. The application was heard by the Fair Work Commission, Australia's industrial relations tribunal. The dispute centred on whether the agreement met the statutory requirements for approval under the Fair Work Act 2009, particularly concerning procedural fairness and the scope of the agreement's provisions.

The primary legal issues revolved around whether the Council had properly consulted with its employees, as required by the Fair Work Act, and whether the terms of the agreement were fair and reasonable. The Council argued that it had followed proper consultation processes, while the union representing the employees contended that the processes were inadequate and that certain provisions in the agreement were unfair. The Court was tasked with determining whether the consultation processes complied with the law and whether the agreement's provisions were fair and reasonable.

The Fair Work Commission found that the Council had not adequately consulted with its employees as required by the Act. Despite the Council's assertion that it had followed proper processes, the Commission concluded that the consultation was insufficient to meet the statutory requirements. Additionally, the Commission found that some provisions in the agreement were unfair, particularly those relating to penalty rates. Consequently, the Commission did not approve the agreement.

The Commission's decision highlighted the importance of rigorous consultation processes in the context of enterprise agreements. It underscored that failure to meet statutory consultation requirements could result in the rejection of an otherwise substantively fair agreement. The Commission did not grant approval to the Mornington Peninsula Shire Council General Staff Enterprise Agreement 2017, leaving the Council to revisit the agreement with a renewed focus on compliance with consultation obligations.

Mornington Peninsula Shire Council

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established