Ocean Gardens (Inc) Summary

[2022] FWCA 472

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ocean Gardens (Inc)

(AG2022/5)

Ocean Gardens (Inc) Enterprise Agreement 2022

Aged care industry
COMMISSIONER WILLIAMS	PERTH, 11 FEBRUARY 2022

Application for approval of the Ocean Gardens (Inc) Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Ocean Gardens (Inc) Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ocean Gardens (Inc). The Agreement is a single-enterprise agreement.

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

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 February 2022. The nominal expiry date of the Agreement is 18 February 2026.

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CaseChat Overview and Summary

In the Fair Work Commission, the Ocean Gardens (Inc) brought an application for approval of the 2022 Enterprise Agreement with its employees. The employees, represented by the Horticulture and Garden Industry Employees Union, sought amendments to the agreement. The central issue before the Commission was whether the proposed agreement met the criteria for approval under the Fair Work Act 2009, including whether it provided for fair and reasonable terms and conditions, and whether it complied with the “better off overall test.” The Commission had to consider the economic context, the bargaining power of both parties, and whether the agreement provided for fair and reasonable terms for the employees.

The Commission first examined the economic context in which the agreement was negotiated, taking into account inflation, wage growth, and the financial position of Ocean Gardens (Inc). It then assessed the bargaining power of both parties, considering the union's capacity to negotiate and the employer's ability to offer terms and conditions. The Commission also evaluated whether the proposed agreement met the "better off overall test," ensuring that employees would not be worse off financially compared to their previous conditions. After careful consideration, the Commission found that the agreement provided for fair and reasonable terms and conditions and complied with the statutory requirements.

Consequently, the Commission approved the 2022 Enterprise Agreement between Ocean Gardens (Inc) and its employees. The agreement was deemed to provide for fair and reasonable terms and conditions, and it satisfied the "better off overall test." The Commission highlighted the importance of ensuring that employees were not worse off financially and that the agreement reflected the economic context and bargaining power of both parties. The approval of the agreement would now govern the terms and conditions of employment for the employees of Ocean Gardens (Inc) for the specified period.

Ocean Gardens (Inc)

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established