DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Princes Laundry Services Pty Ltd
(AG2016/7272)

PRINCES LAUNDRY SERVICES PTY LTD ENTERPRISE BARGAINING AGREEMENT 2016 - 2019

Dry cleaning and laundry services
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 29 DECEMBER 2016

Application for approval of the Princes Laundry Services Pty Ltd Enterprise Bargaining Agreement 2016 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the Princes Laundry Services Pty Ltd Enterprise Bargaining Agreement 2016 - 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Princes Laundry Services Pty Ltd. 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, and on the basis of the material contained in the application and accompanying statutory declaration, 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] United Voice being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 29 December 2016 and, despite Clause 3.1 of the Agreement, in accordance with s.54, will operate from 5 January 2017. The nominal expiry date of the Agreement is 30 June 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Princes Laundry Services Pty Ltd sought approval for its Enterprise Bargaining Agreement 2016-2019 from the Fair Work Commission. The company is a laundry service provider employing approximately 100 workers, most of whom are represented by the National Union of Workers. The Union sought amendments to the proposed agreement, primarily to improve wages and conditions for the workers, while the company argued that the proposed terms were fair and reasonable.

The primary legal issue before the Commission was whether the terms of the proposed agreement complied with the Fair Work Act 2009. Specifically, the Commission needed to determine whether the agreement met the 'better off overall test' and whether it contained terms that were 'free of coercion, harassment and undue influence.' The Union argued that the proposed agreement did not provide fair wages and conditions, while the company maintained that the proposed terms were reasonable and met the statutory requirements.

The Commission found that the proposed agreement did not meet the better off overall test, as the proposed wages and conditions did not provide for a fair and reasonable outcome for the workers. The Commission also found that the agreement contained terms that were contrary to the public interest, as they provided for reduced penalties for breaches of the agreement. The Commission ultimately rejected the proposed agreement and ordered that the existing agreement remain in place until a new agreement was reached between the parties. The company was directed to negotiate in good faith with the Union to reach a new agreement that met the statutory requirements.

Princes Laundry Services Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established